Region is optimistic about the future

Dec 1 2009 By The Journal

THE North of England is one of the most economically confident regions in the country, according to a new survey.

The region is the second most bullish area after the East and is way above the national average, according to the latest ICAEW UK Business Confidence Monitor.

And the region is considerably more confident than in the last monitor a year ago with businesses forecasting their highest growth for profits since the end of last year and the strongest rise in sales since the recession began.

ICAEW northern regional director, Keith Proudfoot, said: "There are a number of factors influencing the continuing sense of better things ahead in our region.

"For example, Northern Rock has secured its return as a major high street lender after the EU approved a plan to separate the bank’s profitable and loss-making assets. Newcastle-based Northern Rock now hopes to be able to double its lending next year.

"Employment prospects have been boosted by Tesco’s announcement that it intends to create 1,000 jobs at a new banking call centre at Longbenton on North Tyneside, while Sunderland is emerging as the favourite location in the race to locate the new Nissan Leaf electric car battery plant. This decision should secure the local supply chain for the next decade.

"There are further small scale opportunities as Northern England plans expansion into the low-carbon market.

"One North East – the regional development agency – has a strong focus on building the North East’s reputation as a location for green business.

"The UK’s New and Renewable Energy Centre (NaREC) is located here and there have been recent successes in electric vehicle production and testing. The Prime Minister recently announced that the region would become the UK’s first low-carbon economic area."

Nationally, the BCM shows that companies are starting to look to the future. Despite these, the recovery is still fragile.