Member Article

North East businesses driving the economy forward

The official channel of the Office for National Statistics in the UK has reported that GDP has grown by 0.7 per cent in the third quarter of 2014, and by 3.0 per cent compared to the same quarter a year ago, with the North East in particular highlighted as a region of substantial economic growth.

The North East has witnessed employment rise by 23,000 people, 123,000 people taken out of income tax and over 1 million people have had an income tax cut.

143,330 apprenticeships began in the region, over 1000 startup loans were approved with an overall value of £4,485,051 and the number of businesses in the region increased to 12,860.

Crucially, there has been a reported £310 million direct investment from the Regional Growth Fund helping businesses succeed in the area.

Chief executive at the North East Chamber of Commerce, James Ramsbotham, said: “It is North East business that is driving forward the economy and it is North East business that is creating the job opportunities that have resulted in more people in employment in our region than ever before.

“We continue to set the pace in exports and have seen growth in some areas of the region outstripping even the South East.

“Over the last 18 months to a year, NECC’s Quarterly Economic Surveys have recorded record breaking levels of optimism, record breaking levels of sales and orders among manufacturers and huge leaps in plant and workforce investment.

“Today’s GDP performance proves that our firms continue to lead the way to recovery and they must be empowered by the Government to do even more.

“There is a good story to tell in the North East and we must become better at expressing it outside of our region.

“We’re not the basket case that some would have you believe, we are an unrealised asset that, while punching well above its weight, could deliver so much more for UK PLC.”

Managing director, Dyer Engineering Ltd, Annfield Plain, County Durham, Graeme Parkins, said: “We’ve recently implemented a £2.5m investment programme in new machinery, facilities and people.

“Our growth plans have already created 25 new jobs, including four apprentices, and we have plans to increase the workforce from 125 to 160 over the next couple of years, which includes a commitment to maintain a 10% ratio of apprentices.

Chair of Institute of Directors North East, Graham Robb, said:“The Government has overseen an economy that is delivering growth and jobs throughout the UK.

“Business has risen to the challenge posed by the necessary deficit reduction strategy and has invested and grown.

“Growth might be harder in the months ahead and every enterprise will need to re-double its efforts in order to maintain the flow of economic good news.”