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a year in the life of . . .

It’s been a funny old year.

Funny peculiar rather than funny ha ha that is.

We started the year wondering just how business would get on, with a firm realisation that the challenge for many would be to just simply survive.

While that challenge has proved insurmountable for some, many businesses throughout the North-east have done more than just survived, they’ve refocused their activities and their approach and are more than just surviving, they are thriving and growing.

The pages of this Bulletin and the others which have preceded it in 2009 are testimony to the many North-east success stories and an indication that we’ve managed to avoid the worst of the recession.

Feedback from you, the members, is that there is cautious optimism about the coming months and that confidence is borne out nationally according to the findings of the 3rd Quarter British Chambers of Commerce Economic Survey (QRS) which indicate that Britain is on the brink of leaving recession.

More than 5500 companies across the UK responded to the survey which shows there has been good progress in both the manufacturing and service sectors, with most key indicators improving in the last quarter.

Figures for Scotland indicate that manufacturing here is continuing a positive trend and there is optimism about order books in the future. But they also show that trends in cash flow remain an issue and that profitability may be not be as healthy as hoped for. Downward trends in some parts of the country also remain an issue.

And while trading conditions for the service sector remain challenging, businesses do believe that the worst is over and that recovery is on the way.

The message coming now from the British Chambers network including this Chamber and our colleagues at the Scottish Chambers is that government must now demonstrate that it will actively and determinedly support the wealth-creating firms which can lead the country out of recession.

David Frost, Director General of the BCC, warns that without this, recovery will be held back.

“Despite the toughest spending climate in decades, the government must protect infrastructure investment and avoid placing tax burdens on business. A moratorium on new employment laws is needed and, crucially, the planning increase in National Insurance contributions in 2011 must be scrapped,” he said.

“The private sector cannot be seen as the quick cash remedy for the poor state of the nation’s finances. The deficit will have to be brought down by making tough choices on spending cuts in the public sector, including a freeze on pay and recruitment across the board.”

The issues he raises have already been laid out in the Chambers’ Manifesto – Delivering for Britain: A Business Blueprint for Opportunity, Jobs and Growth – which was published prior to this year’s crucial party conference season.

BCC attended all the main conferences, met with Cabinet ministers, shadow ministers, opinion-formers and business organisations and distributed 1,000 copies of manifesto to attendees.

Published nationally, it nevertheless mirrors the views of our own local members who have identified the obstacles put in place by red tape as factors which can seriously hamper business growth.

It also reiterates our view that further investment in infrastructure is essential for our future economic growth. Most notably in this area, initiatives including the AWPR, the runway extension and improvements to our rail system.

The importance of these and other issues which are most relevant to the North-east business community will be further emphasised in our own City and Shire manifesto which will be produced early in the New Year.

As always, if you have any points or issues you’d like to have considered for inclusion in the document, please contact me at kate.yuill@agcc.co.uk

Copies of the QES and the BCC Business Manifesto are available on our website – www.agcc.co.uk