Chamber hails income rise in 'challenging' economy

A business membership organisation has cheered an income rise amid “challenging” economic times.

The North East Chamber of Commerce saw revenue rise four per cent to £3.1 million in the year to December 31.

It said every revenue-generating department enjoyed year-on-year growth.  

However, rising costs – including increased employer national insurance contributions – saw the Durham and Newcastle-based organisation record an overall net operating loss of £315,000.

Officials say the deficit “was within expectations… and covered by cash reserves”.

They also revealed the organisation is set to end 2026 £22,000 ahead of budget and £250,000 ahead of 2025, having delivered a £160,000 revenue improvement on the previous year.

John McCabe, chief executive, said: “The impressive increases we were seeing in our income streams were simply being outpaced by rising costs.

“By the midway point in the year, we took the decision to enter a consultation with staff, which saw four senior management roles being made redundant.

“Redundancy packages added to the costs incurred in 2025, but the decision to reduce our headcount in a limited way has contributed significantly to a much-improved cost base in 2026.”

Speaking at the organisation’s annual general meeting in Newcastle Cathedral, John said it had recorded a “raft of notable achievements” over the past year, which included the delivery of phase two of a Local Skills Improvement Plan alongside Tees Valley Combined Authority.

It was also appointed by the North East Mayoral Strategic Authority to deliver the joint employer pilot as part of the ‘Get Britain Working Trailblazer’, to assess pathways to work for those economically inactive due to ill health. 

He added more than 8000 people attended at least one of the Chamber’s 250 events in 2025, with the organisation additionally supporting more than 600 North East businesses to import or export products and services, and processing in excess of 10,000 international trade documents.

He said: “We took difficult decisions to control our costs, but remained focused on the delivery of our long-term objectives of membership growth and diversified income.

“I’m delighted to report that on the evidence so far, the strategy is working and growth is returning.”

The annual general meeting also saw Natasha McDonough, founder and managing director of Sunderland-based MMC Research, elected as the North East Chamber of Commerce president.

She succeeded Palintest’s Deborah Walton, with Northumbrian Water Group’s Louise Hunter appointed vice president. 

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