Dominic Grieve MP: Taking measures to deal with the deficit

Dec 8 2011 by Jack Abell, Buckinghamshire Advertiser

FINANCIAL turbulence, globally as well as within the European eurozone economies, continues to dominate the economic climate. Thus the Autumn Financial Statement, delivered by the Chancellor of the Exchequer to the House of Commons, has gained this year a stronger significance than it might have done in easier fiscal circumstances.

As a country, we are taking measures to deal with the deficit and to create the circumstances for sound economic growth. If we show that we are prepared to live within our means as a country, this has important implications. It means that other countries and other financial institutions have confidence in the UK and can invest here.

The UK’s lower interest rates benefit families paying mortgages, but they can also help our small and medium sized enterprises to borrow money to expand those businesses and take on more workers. The Chancellor announced a programme of credit easing to help these smaller businesses. A £1billion Business Finance Partnership is targeted at the middle-sized companies, drawing investment from pension funds and insurance companies.

Encouraging these enterprises will, I hope, mean that some of them are able to recruit young workers to fill job vacancies as their companies grow. The Chancellor acknowledged the rise in youth unemployment. Two hundred thousand young people will be helped with work experience and apprenticeships in the private sector.

Business also needs appropriate infrastructure and 500 projects, including broadband networks, utilities and transport, will be constructed over the next 10 years.

In practical terms, finally, the Chancellor acknowledged that individuals, like the many commuters in the Beaconsfield constituency, have faced increased travel costs in getting themselves to work. Rail fares were set to go up by a margin of the Retail Price Index plus 3 per cent. This has been reduced to the RPI plus 1 per cent, on rail and on the London Tube and bus network. The duty on petrol and diesel was also due to go up by 3 pence in January 2012. This rise has been cancelled and the proposed rise of 5 pence for August 2012 has been reduced to 3 pence.