BUSINESSES are pessimistic about the forthcoming year in Darlington, despite more optimism in the wider North-East region.

But recent trends have continued, with turnover figures maintaining steady growth and numbers of employees also showing a positive increase in the run-up to Christmas.

The latest business index is evaluated by Angus Allan, corporate finance partner at Clive Owen and Co LLP, Chartered Accountants and Business Advisors.

He said: "More news from the Office for National Statistics states that the number of unemployed people in Darlington is 1,662.

"Another indication of a slower job market is regional newspaper group Johnston Press's recent announcement of a seven per cent fall in demand for job advertising.

"Similarly, national press company Trinity Mirror Group also announced a 7.9 per cent fall in advertising revenues."

Mr Allan said many Darlington firms would also have taken note of the recent pre-Budget report.

"Two main points of note are in the corporation tax and pensions areas," he said.

"The nought per cent band for corporation tax profits for up to £10,000 has gone and all companies are now taxed at 19 per cent. This could be a contributing factor affecting local business confidence.

"The second is based on previous speculation that you could put residential property and other prohibited assets into pension funds, although the Government has now closed the opportunity."

Other contributory factors in decreasing business confidence are said to be the red tape surrounding small firms, concern over development plans near the A1, A19 and A66 due to road congestion issues, and pressure on high street retailers from their online rivals.

Mr Allan added: "However, the Federation of Small Businesses has said that HM Revenue and Customs is recognising the need to lessen red tape surrounding administration of the tax system and reducing form filling is top of their hit list."

The index assesses local business activity based on figures filed by a selection of firms in and around the Darlington area over the course of the last month.

The business index figures compare and assess current business performance with previous months.