THE positive upturn in all three indices experienced by Darlington business owners in June has continued into July.

With predominantly good news being announced by businesses across the borough in recent weeks, it is no surprise the turnover, employee levels and business confidence have all risen slightly.

The development of Lingfield Point continues with work beginning on a £5m office development by Teesside building firm Rok, that could bring as many as 1,000 jobs to the region.

The development will see the creation of a 100,000 sq ft office space on a single floor, possibly the largest in the region.

Engineering services group Amec, which employs 400 people in Darlington, announced last week it is bidding to be project manager on the £1.7bn Olympic games contract.

It is thought to be a strong candidate to oversee the project and winning the contract would have a positive impact on the whole group, including its industrial and support services divisions in the town.

Further success in the construction industry has been experienced by architects Browne Smith Baker, which has been appointed by One NorthEast, Easington District Council and English Partnership to plan about 420 homes on the site of a former pit at Seaham Colliery. And the Aycliffe-based MMP Group has won a contract to build a new housing development at Broomlands, in Cambridge Road, Middlesbrough.

However, not all business news from July has been good.

Peter Hogan, tax partner at Clive Owen & Co LLP chartered accountants and business advisors, said: "The most disturbing news affecting Darlington workers is the announcement of 210 jobs being axed by Norwich Union, the new owner of the RAC motoring group, at its call centre on Beaumont Street.

"Whilst the centre is not set to close until next April, Norwich Union is being criticised by the union Amicus about the way it informed its workers of their redundancy. If the insurer, which is owned by Aviva, has failed to comply with the legislation which specifies a period of 90 days' consultation with staff, then Amicus believes the workers should be given an extra 90-days' pay, which could cost the company in excess of £1m."

Also, recent unemployment figures released by the Office of National Statistics showed the total number of people out of work in the region had risen by 15,000.

Mr Hogan said: "This does not concur with the Darlington business index figure nor with figures produced by the North East Chamber of Commerce's quarterly survey.

"Like the Darlington business index, the Chamber's survey showed business confidence was good and that many members were considering taking on extra staff.

"When questioned about the discrepancy in the figures, the Amicus trade union did not think there had been enough job losses to push the figure up by 15,000 in the region over the last three months."

He added: "Interestingly, a spokesman for regional development agency One NorthEast thought the 15,000 increase was not just coming from the employed pool of people but from new claimants who could have moved from the incapacity benefits register."

* 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