The inflation figures published this week show that last month prices rose by just 0.3%, helped by the falling costs of fuel and food. We can certainly all see the falling prices at the pumps with petrol now below 107p a litre; a saving of 30p a litre from a few months ago. The price of home heating oil is also falling fast with better deals available now than for many years. This new era of low inflation and low interest rates seems a far cry from the Britain that most of us grew up in.
Low inflation is also helping us to return to the welcome trend of incomes rising faster than prices. One of the great achievements since the recession has been the fast and steady fall in unemployment. Since the recession, in the Folkestone and Hythe constituency, there are more than 1,000 fewer people every month out of work than before. Over 85% of new jobs are full time, and nationally there are more people in work than ever before. We have also seen a near doubling locally of the number of young people taking up apprenticeships. Now with wages rising faster than prices more and more people will be better off as a whole, and better off in work.
Pensioners particularily benefit from low inflation as well. The government has put in place a triple lock to protect the state pension. This means that every year it will always rise in line with prices, wages or by 2.5%; whichever is the greater amount. This means that based on the current level of inflation, the basic state pension would increase by more than 2% above prices in the shops.
I was pleased to learn this week that Bristows Helicopters, the leading provider of search and rescue services in the UK, is in advanced talks with Lydd Airport, to base its operations in the south east there. This is work that was previously undertaken at Manston Airport. The fact that these discussions are taking place is a further positive sign that the improvement of the facilities available at Lydd, will bring new jobs and investment to the area.
Last Friday I met with Terry Noakes and John Gale at Folkestone Trawlers to discuss the important issue of discards and the proposed permit scheme for commercial fishing in Hythe Bay. Last year, working with the local fishing industry, I was able to persuade the government not to go ahead with its original proposal for a marine conservation zone in Hythe Bay. There was no scientific justification for the creation of such a zone and the proposals would have had a detrimental impact on the livelihoods of the fishermen. The government agreed that any conservation measures put in place in the bay would have to be compatible with a commercially sustainable local fishing industry. The idea of a permit scheme for Hythe Bay was proposed by the fishermen and they are working on the final proposals with the local Inshore Fisheries and Conservation Authority. This could be a landmark new scheme for the whole country, showing that conservation of stocks can be best managed by working with the local fishing industry. I hope that there is a swift and successful conclusion to the discussions on these proposals.
