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Published: 02/02/2011 00:00 - Updated: 30/11/2011 14:09

Difficult decisions had to be made for country's sake

NICK Clegg's recent visit to the strath was a good opportunity for him to hear the concerns of local people.

The packed 'town hall' meeting in Boat of Garten - something he does regularly across the country - gave a good flavour of the issues, local and national.

I am very grateful to all those who turned out to listen, as well as to those who took the chance to ask questions.

I had a similar experience myself on Friday, meeting local business-people in Inverness.

As a government we have had to take some enormously difficult decisions to clear up the mess that was left by the Labour Party and put the country back on track - and it is important to explain those decisions as well as hear messages of both concern and support.

There is no doubt that 2011 is going to be a very difficult year for the economy. The spending cuts that are an essential part of stabilising the economy will start to have an effect, and the economic recovery is likely to be choppy as the effects of the worst recession for decades and the measures needed to escape it pass through the system.

While many firms took a hit in December as a result of the severe winter weather, the comments at both meetings confirmed that lack of lending from banks is still a major problem for local firms.

This is a major part of the discussions that the government is having with the banks at the moment.

While it is very important to control bank bonuses, the benefit for many businesses of a greater availability of finance from banks mean improvements are vital to economic growth and employment.

There was also, understandably, real concern about the current high price of fuel.

That affects the whole country, but particularly here in the Highlands where prices tend to be higher and distances travelled are longer.

The Government is delivering on the commitment I made at the election to a reduced rate of fuel duty in the most remote areas.

We are working to deliver a discount scheme for the islands, where the costs are greatest, as quickly as possible. But this change requires European agreement, which will take some time.

We are also examining other measures that could offer wider relief, including the idea of a 'fair fuel stabiliser'. But, of course, any change also has a cost, which would have to be paid for; we have to stick to our plan to cut the deficit - to change course would have a hugely damaging effect.

Our first priority is to reduce the tax burden on work, especially for those on low and middle incomes.

In April, the income tax allowance will rise by £1,000 - putting around £200 back into the pockets of most basic rate taxpayers and meaning that 880,000 of the lowest paid people will no longer have to pay income tax.

That money will be some help to meet rising costs - and it is a first step towards ensuring that no-one pays any income tax on the first £10,000 they earn. That was the first priority in my election manifesto, which we are now delivering in government.

We also need the Scottish Government to do much more to help the economy in the Highlands.

Their plans to centralise a range of public services suggests that the SNP's hostility to the Highlands is as strong as it was when they shrunk Highlands and Islands Enterprise.

A Scottish equivalent of the regional growth fund to support areas most dependent on the public sector and some investment in Highland transport, particularly the A9 - not just words - would be a good place to start.

All levels of government need to identify and remove barriers that they put in the way of economic growth. Our 'growth review' will systematically identify and tackle these problems, to further support the private sector to lead the economic recovery.

Local government, the Cairngorms National Park Authority, and the Scottish Government should be doing likewise.

 

 

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