BUSINESSMEN stared into the future and scared their optimism away at this month’s meeting of The Northern Echo’s Shadow Monetary Policy Committee.

With TV cameras from the BBC national breakfast programme, members gathered in a quietly positive frame of mind.

Chairman Andrew Sugden, of the North-East Chamber of Commerce (NECC), said: “It would be wrong to say things are getting better, but things are getting worse slower.

“Our trend surveys show a modest up-tick in confidence.”

Other members of the committee, which evaluates the regional economy ahead of the Bank of England’s monthly interest rate decision, reported small increases in domestic tourism, as people holiday at home, and in housing as the strong euro forces expatriates to return home.

Neil Jukes, of building company Rok, reported that builders were finding domestic work as householders improved their homes rather than move.

He said: “There is work, but it is on a different scale to what it was in the past.”

David Bowles, of Northern Defence Industries, started the moodswing.

He said: “Things are less bad. They are neither worse nor better. Businesses are reshaping themselves to recover, but that reshaping will inevitably mean people losing jobs.

“Unemployment will be a major factor of the next six to 12 months. There is a lot of shake-out still to come, for the right and wrong reasons.”

The committee, which is put together by the NECC and Arlington Financial, of Hartlepool, was addressed by Colin Thompson, who has managed the Durham branch of the Citizens Advice Bureau for 20 years.

He said: “I am the only person around this table who can say our business is absolutely booming – and that is bad news.”

So far this year, his bureau has helped twice as many people in debt difficulties as it did in the same period last year.

Waiting times for an appointment have risen from two days to nearly a fortnight.

He said: “People are no longer asking about their terms and conditions or about their holiday entitlements because of the fear of redundancy.

“The number of inquiries about personal bankruptcy has risen significantly – people are throwing in the keys and saying they cannot cope any more.”

It was a sobering intervention, and Anne Elliott, of Latimer Hinks solicitors, followed it up with: “I hate to say it, but there’s a Budget coming up. Taxes will have to rise and that will knock confidence again.”

Only John Elliott, of Bishop Auckland company Ebac, was completely upbeat.

He said: “Most people are better off than a year ago.

Fuel and mortgages have come down, people see the roof has not fallen in.

“The downturn was very quick. I think the upturn will be as well.”

He was the only committee member to say he wanted interest rates to rise. The other nine all voted for no change.

Jon Sturrock, of Arlington, concluded: “We need stability – that’s the key. Movements every month will not engender stability.”