International economy remains turbulent

The sad truth is that Britain’s own economic recovery is being curtailed by international factors which are chocking growth and draining confidence. Against this backdrop, the Chancellor Of The Exchequer delivered his autumn statement to the House of Commons earlier this week.

Put simply, there is no point in shying away from the blunt reality. Our independent Office of Budget Responsibility (set up by the Coalition to prevent the figure-fiddling of past Chancellors over years gone by) has revised growth figures downwards. We shouldn’t try to excuse this assessment which is, of course, extremely disappointing.

Nevertheless, international factors made this revised growth figure almost inevitable and the job of the Government is now to respond once again to unprecedented economic challenges.

Among the raft of reforms contained within the Chancellor’s statement, there is real support for households and small businesses – the crucial backbone of our economy. In recognition of the pressures facing families and SMEs, the Chancellor has provided money for free nursery places to help parents get back to work; announced a £30 billion investment programme in Britain’s infrastructure; outlined a freeze in fuel duty for motorists; made £50 million available for small businesses; and limited rail fare rises for hard-pressed commuters.

On a local note, I am particularly pleased to welcome the funding for two new Park & Ride sites in York and the electrification of the Transpennine rail line between Manchester and Leeds, although I have now asked the Chancellor to consider extending this electrification to York.

As these measures illustrate, the Government is not simply sitting back. Rather, it is responding to ever-changing difficult conditions.

At the same time, it would be wrong of us to lose sight of our deficit reduction focus.

While increasing our debts to pay for more investment may sound attractive in the short-term, it would ultimately sap international confidence in our ability to pay our way, undermining our credit rating and thus pushing up interest rates. In turn, this would increase mortgage payments for millions of Britons.

As we discuss the economy, it is encouraging to note that our great city is remaining resilient.

With a thriving tourism sector and a modern science and technology hub, we can be confident (though by no means complacent) that York can again look upwards in 2012 and beyond.

The path towards full economic recovery will always be rocky and uncertain, but I can assure all local residents that the Government, as highlighted in the autumn statement this week, continues to work in both our region’s and our nation’s long-term interest.

Lastly, as we now head into the festive weeks, I would like to use this opportunity to wish all York residents a very peaceful, happy and enjoyable Christmas.