NORTH-EAST firms are fighting hard against the recession but need positive Government action in this month’s Budget to speed recovery.

Figures from the 4,000 member North East Chamber of Commerce (NECC), show more companies were starting to achieve growth in the first quarter of 2009 despite the global economic downturn.

But its North East Business Barometer shows they need Chancellor Alistair Darling to take targeted action to improve conditions in the Budget.

NECC wants measures to support employment and investment, develop infrastructure and simplify administration for businesses in its fiscal policy report.

James Ramsbotham, NECC chief executive, said: “While the pace of the recession has slowed somewhat, businesses are still facing significant challenges.

“The Government needs to do more to create the optimum conditions for businesses to recover and must implement targeted measures to ensure this happens.

“We must not allow successful and viable businesses to go under because they face unnecessary pressures through tax and regulation.”

NECC has called on Government to create targeted fiscal incentives for investment, including strengthening R&D tax credits and reinstating empty property rate relief.