Members of the North East Shadow MPC described a sense of “cautious optimism” when they met today (Tuesday).

A partnership between The Northern Echo, the North East Chamber of Commerce (NECC) and Tees Valley-based accountancy firm Waltons Clark Whitehill, the North East Shadow MPC looks at the region’s economy and gives experts from a variety of sectors the opportunity to argue their case for a shift, or hold, in the rate.

Members voted overwhelmingly for a hold in interest rates and no additional quantitative easing.

The one dissenting voice was Graham Robb, senior partner at Recognition Marketing and PR, who felt a small increase in, and then a pegging of, interest rates, would help savers and then allow for forward planning, based upon the knowledge of upcoming stability.

Committee chair, Heather O’Driscoll, managing partner at Waltons Clark Whitehill, said: “Those clients in niche markets are doing really well.

“We are just off the back of our best year ever, in the middle of a recession. Three years ago, we looked at how we operate, our niche markets and our people and made changes which put us in a strong position. That has made a huge impact on our business.”

Mark Stephenson, policy team leader at the Chamber, said: “Feedback from members in the past month has been cautiously optimistic. Exports are seeing a lot of opportunities abroad but the general expectation is for prices to remain stable and turnover and profits to increase.”

Jim Willens, chief executive of Newcastle Building Society, said: “Cautious optimism is how I would describe the market. The mortgage market is beginning to pick up. The sector is doing generally fairly well. I don't see it returning to the heady days of before the downturn and I don't think I would want to.”

Graham Robb added: “Business confidence is returning and I think it's decisive. I don't think it's as tentative as it might have been at the start of the year.”

Catriona Lingwood, chief executive of Constructing Excellence gave a positive view from her sector: “If you talk to the people we deal with, they are very optimistic that - maybe not overnight, because the construction industry takes a long time to come through - but things are getting better.

“The architects are picking up a lot of work and that will have a knock on effect.”

Anne Elliott, partner at Latimer Hinks solicitors said there was a need to ensure great service, in order to be successful in the current economy, adding that people are starting to be more accepting of the need to operate despite the conditions.

She said: “You have got to make sure that you give great service. There comes a stage where people are wondering how much more are we going to persuade ourselves that we are at rock bottom, or there is further to fall. I think people are getting on with it.”

Jane Reynolds, Tees Valley business manager at North East Finance said: “I would say that in recent months we have seen confidence with employment as well as bringing new business to the area from without the area, as well as investing in companies that might have looked at investment prior to that time.”

Nigel Mills, director of property company Closewalk, whose business interests also include a hotel in the Lake District, said: “Business is out there, you've got to invest in it and when customers come you've got to make sure you look after them. Consumers now are becoming more savvy. I think that is a permanent change. I think the retailers are realising that they don't want gimmicks, they want the things they need and they are willing to pay a fair price.”

Neil Foster, policy and campaigns officer at the Northern TUC said: “Our members are going through very tough times. Despite some positive signs in the economy, cuts in the next phase of Parliament could stifle some of the growth.”

David Coates, managing director of Newsquest North-East, said: “The customers we talk to regularly still don't have any confidence. Economic activity is still relatively subdued and aren't ready for any shocks.”