My daughter Claudia opened the first window of her advent calendar
this morning and was disappointed to find that behind it was just a
picture, and not a chocolate. Some of you may have felt as she did,
when listening to the Chancellor of the Exchequer’s ‘Autumn Statement’
to the House of Commons on Tuesday. This statement traditionally gives
a forecast for the economy and for the Government’s tax plans, and was
given against the background of the crisis in the eurozone and
uncertainty at home. Sadly we do not have the money as a country to
spend our way out of difficult economic times, and when you look
across Europe at those who have tried and failed the downsides are all
too clear. If Britain had carried on borrowing at the rate we were
18months ago we would be bust. If our borrowing costs as a country
were similar to those of Italy or Spain, the typical family mortgage
payments could be an extra £5,000 a year. That’s one reason why it’s
worth sticking with plan A.
People have asked how much longer this will go on. The honest answer
is that the next six months are likely to remain difficult, but I
believe that in Kent we will do well next summer because of the
Olympics and the return to stronger levels of growth later in the
year. We are also fortunate locally that some of our bigger employers
like Saga, Eurotunnel and EDF have performed strongly, other companies
like Church and Dwight are committed to invest in the area, and that
the regeneration of the creative quarter and old town in Folkestone is
being supported by private investment from the Roger De Haan
charitable trust. The Regional Growth Fund has made £40million
available to support new businesses and the expansion of existing
firms in East Kent, with the top priority creating new jobs.
There was some good news from George Osborne, particulary the decision
not to introduce a three pence increase in fuel duty in January and to
provide extra assistance to reduce the planned increases in rail
fairs. These were measures that I and my fellow East Kent MPs had
called for, and I know that many of you wanted as well.
The Chancellor also announced the extension of support for working
families by investing a further £600 million in pre school childcare.
This will mean that about 250,000 two year olds across the country
will benefit from 15 hours a week of free childcare, something which
is only currently available to three and four year olds. This funding
will be administered by the local councils and will be targeted to
help those in the greatest need. This should be welcome news for
working families for whom the cost of childcare is one of their
biggest household expenses.
But, with December here the countdown to Christmas has started and
across the district the lights are up and seasonal festivities
underway. Last Sunday I joined the villagers on the green in Elham to
watch the Christmas tree lights being turned on, and earlier in the
day we enjoyed the Christmas market at the Five Bells pub in
Brabourne.