Yorkshire straight talking key to our business success says top accountant

Steve Denison, of PricewaterhouseCoopers, said it is these attributes which will enable the region to prepare for the upturn and take on new opportunities in 2010 and beyond.

He said that despite a degree of uncertainty about the economic outlook, with unemployment set to rise, surveys and research at PWC showed some cause for optimism.

PWC research shows the majority of private businesses in the region predict their business situation will improve or stay the same in the next 12 months.

Mr Denison, who is based in Leeds, said: "Businesses need to stay ahead and not lose focus on the fundamentals as we come out of the recession.

"There are some key disciplines businesses should focus on to ensure they can weather the remainder of the storm. They should continue to assess their customer's needs; remain focused on their cost base; communicate with all their financial stakeholders; look after their people; and, most importantly, manage their cash.

"Not only is looking after staff important, a pipeline of talent is critical."

PWC expects public spending growth to remain positive during 2010, but warned it will need to be cut back sharply in the medium term.

Business investment growth is expected to remain weak, although this should gradually reverse during 2010.

Mr Denison said: "We recommend that businesses stress test their plans and valuations against an alternative 'prolonged recession' scenario in which negative growth continues in 2010.

"But an upside 'strong recovery' scenario, where growth rebounds to above trend levels by the end of 2010, can also not be ruled out."

He added: "We have, for example, evidence in our own office increasing levels of deal activity in the market along with other departments seeing positive growth.

"With that and talks of the housing market improving, it is clear that there is room to be optimistic about the future of the North.

"We feel that businesses that have survived the hard times of the last year, will be stronger and better equipped to take on new opportunities through 2010 and beyond."