BUSINESSES in Darlington and South-West Durham have had a positive few weeks, with upturns across the board.

Business confidence has increased - coinciding with an announcement that a £170m regeneration scheme in Darlington has moved a step forward.

Plans for the Central Park development off Haughton Road have now been submitted to Darlington Borough Council by Tees Valley Regeneration. The development will create 2,000 jobs.

Angus Allan, corporate finance partner for Clive Owen & Co LLP, chartered accountants and business advisers, said: "This is expected to be a huge boost to Darlington's economy, improving prospects for further private sector investment and reinforcing the town's position as the gateway to the Tees Valley."

He said there had been good news from regional law firm Blackett Hart and Pratt, which has been in Darlington since the 1830s. The firm announced a 14 per cent rise in turnover.

Mr Allan said: "Teesside-based furniture retailer Barker and Stonehouse, which has an outlet in Darlington, has also announced expansion plans and recently reported a turnover of more than £50m.

"Four Seasons Healthcare, the largest operator of care homes in the UK has also embarked on expansion plans by moving some of its staff into the recently refurbished Beehive Ballroom at Lingfield Point. The move has created vacancies in its finance department located in Lingfield House."

However, Mr Allan warned that despite the encouraging outlook presented by Darlington businesses, the North East Chamber of Commerce's (NECC) quarterly economic survey shows that companies in the region as a whole are more apprehensive about future trading trends.

Only 24 per cent of manufacturers were confident of increasing turnover over in the next 12 months compared to 45 per cent the previous quarter.

Mr Allan said the chief executive of the NECC and the Northern Regional Director of the Engineering Employers Federation (EEF) did not feel that the manufacturing sector was entering a period of recession.

Darlington businesses reported a very slight increase in employee levels in June, however, regionally and nationally unemployment figures rose.

The business 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.