“The measure of a man is not what you do in times of comfort, but what you do in controversy and challenge” – Martin Luther King.

WISE words, and particularly appropriate at present, equally applicable to employees, employers, business organisations such as the North East Chamber of Commerce (NECC), and the Government.

It was interesting therefore to see how our Government reacted to the current economic situation in the recent budget. Whether you believe we should be “investing our way out”

(Gordon Brown) or “cutting public expenditure” (David Cameron), the size of the projected budget deficit (£175bn, Alistair Darling’s figure) must give us all cause for concern.

In the short to medium term, the Government must obviously borrow the money. One worrying problem for business, given the magnitude of the sums involved, is that the Government may have to issue gilts at a premium. If this happens, then borrowing for business will also be more expensive as there will be competition for investors’ funds.

Furthermore, the business community was hoping, possibly against all odds, that the Chancellor would use this budget to reduce red tape. Instead, hoped for measures such as the scrapping of empty property rates and the deferment of the reinstatement of the 17.5 per cent VAT rate (on the January 1, 2010, just in time for retailers’ January sales!) remained just that – hoped for.

Since 1998, according the Government’s own statistics, there have been 104 new pieces of legislation which have impacted on business to the tune of £76.8bn – £53.3bn of this total relates to EEC legislation. While appreciating that some of this legislation may be necessary, what business needs in this economic climate is less, not more, red tape.

On the positive side, it was pleasing to read of the £1bn package to support renewable and environmental technologies. This is something that the North-East is particularly strong. Also the doubling for this tax year of the first-year allowances for capital investment is welcome, although confidence is key to the take up of this.

Therefore I will finish on a positive note by saying that while touring the region, whether as part of my job, on behalf of NECC or as non-executive director of Business & Enterprise North-East (which includes Business Link) I have come across a small but significant number of businesses that seem to be unaffected by the current economic climate. While obviously the sectors they are in play a part in their success, I must pay tribute to the employers and employees who have successfully adapted in this challenging time.

■ Chris Beaumont is NECC Tees Valley committee chairman and partner at Clive Owen & Co LLP.