26 October 2010
George comments on last week’s Comprehensive Spending Review (CSR) which sets the Government’s framework for rebalancing our nation’s economy. Whilst a lot of the coverage has been on the scale of the cuts involved, I believe that this review has provided a series of measures that are positive for Norfolk and help make reality the vision of a more vibrant local economy as set out in my campaign The Norfolk Way.
We will all feel the effects of the CSR. The decisions taken by the Coalition Government are tough but I believe they are fair and essential to getting our country back on track.
Rebalancing our economy away from our overreliance on the City, housing inflation and the public sector will mean a new emphasis on unlocking sustainable private sector growth. Norfolk can lead the way.
This one off bulletin sets out the announcements in the CSR that I feel are of particular significance to this opportunity for Norfolk.
Deficit. The CSR helps avoid the higher interest rates, business failures, and rising unemployment which would have followed our unsustainable deficit. It currently costs £120 million every day to pay the interest on the nation’s debts.
Growth. The CSR creates a space for the private sector and new industries to flourish. Many politicians are focussing on where the economic growth will come from, and the Prime Minister shaped his CBI speech around that question this morning. I’ve written an article with Cambridge MP Dr Julian Huppert about how the east can lead this new growth http://ind.pn/9GvYl4
Tax and Business. Alongside wider reforms on removing the barriers to job creation, the cutting of corporation tax and improving incentives for individuals through welfare, the CSR also introduces a permanent levy on banks, ensuring everyone pays their fair share in our recovery.
Whitehall waste. The CSR delivers £6 billion of central government administrative savings through asset sales, abolishing quangos, and removing non-essential bureaucracy.
Regional Growth. Long term investment in transport, science, and green energy will all help move Britain from its decade long over-dependence on the city. Alongside the establishment of the Local Enterprise Partnerships (LEPs), a £1.4 billion Regional Growth Fund will support projects that offer significant potential for sustainable economic growth.
Infrastructure. The momentous decision to dual the A11, recognising our local economic potential, will be welcomed across Norfolk. http://bit.ly/bmXYxV.
Research. The science budget has been protected at £4.6 billion over the next four years, allowing our excellent research centres around Norwich to flourish. http://bit.ly/cIHTNA
Skills. There will be a 50% increase in spending on adult apprenticeships which will help to boost the economy. Spending on schools will go up by 0.1% in real terms for next four years.
Energy. £1 billion has been allocated to the Green Investment Bank. £1 billion has been allocated to fund one of the world’s first commercial scale carbon capture and storage demonstration projects and £200 million will be invested in the development of off-shore wind technology and manufacturing at port sites. Norfolk’s science industry and ports could play a leading role in these new schemes.
Localism. Norfolk’s local authorities will have more control over the money they receive. The ring fencing of nearly all grants to local government will be removed, local area agreement targets scrapped, greater flexibility to manage council tax together with direct control over Council Tax benefit and, as I previously called for, (http://bit.ly/csu3bh) Tax Increment Financing will enable local authorities to borrow against locally raised business rates.
Housing. Plans to build up to 150,000 new affordable homes over the next four years (with a New Homes Bonus scheme), reforms to the planning system so we put local people in charge of planning in their area and encouraging more homes to be built where Norfolk needs them.
Equitable Life. The long-suffering victims of Equitable Life, of whom Norfolk has a disproportionate number, will finally receive a fair settlement of £1.5 billion next year, as the Chancellor has rejected the findings of the Chadwick review and accepted the findings of the Parliamentary Ombudsmen in full including special provision for those who had With Profits Annuities.
Post Offices. The Government has committed to protect community post offices and invest in the Post Office Network, which has been so hard hit of late.
Pensioners. For the high pensioner population in Norfolk, the Government has already re-linked the basic state pension to earnings, and guaranteed a rise each year of at least 2.5%. The CSR addressed the long-standing problem of the disparity between life expectancy and pension age by gradually raising the state pension age to 66 by the year 2020.
There will also be an additional £2 billion for social care, benefits for pensioners, free eye tests and prescriptions, bus passes TV licenses and winter fuel will remain. Given our ageing population in Norfolk, these are particularly important announcements.
These are challenging times and no doubt we face a difficult period ahead dealing with the crisis in the UK public finances and the deficit. But I believe there is some real cause for hope that the potential of the Norfolk economy and new growth can be unlocked.
George
We will all feel the effects of the CSR. The decisions taken by the Coalition Government are tough but I believe they are fair and essential to getting our country back on track.
Rebalancing our economy away from our overreliance on the City, housing inflation and the public sector will mean a new emphasis on unlocking sustainable private sector growth. Norfolk can lead the way.
This one off bulletin sets out the announcements in the CSR that I feel are of particular significance to this opportunity for Norfolk.
Deficit. The CSR helps avoid the higher interest rates, business failures, and rising unemployment which would have followed our unsustainable deficit. It currently costs £120 million every day to pay the interest on the nation’s debts.
Growth. The CSR creates a space for the private sector and new industries to flourish. Many politicians are focussing on where the economic growth will come from, and the Prime Minister shaped his CBI speech around that question this morning. I’ve written an article with Cambridge MP Dr Julian Huppert about how the east can lead this new growth http://ind.pn/9GvYl4
Tax and Business. Alongside wider reforms on removing the barriers to job creation, the cutting of corporation tax and improving incentives for individuals through welfare, the CSR also introduces a permanent levy on banks, ensuring everyone pays their fair share in our recovery.
Whitehall waste. The CSR delivers £6 billion of central government administrative savings through asset sales, abolishing quangos, and removing non-essential bureaucracy.
Regional Growth. Long term investment in transport, science, and green energy will all help move Britain from its decade long over-dependence on the city. Alongside the establishment of the Local Enterprise Partnerships (LEPs), a £1.4 billion Regional Growth Fund will support projects that offer significant potential for sustainable economic growth.
Infrastructure. The momentous decision to dual the A11, recognising our local economic potential, will be welcomed across Norfolk. http://bit.ly/bmXYxV.
Research. The science budget has been protected at £4.6 billion over the next four years, allowing our excellent research centres around Norwich to flourish. http://bit.ly/cIHTNA
Skills. There will be a 50% increase in spending on adult apprenticeships which will help to boost the economy. Spending on schools will go up by 0.1% in real terms for next four years.
Energy. £1 billion has been allocated to the Green Investment Bank. £1 billion has been allocated to fund one of the world’s first commercial scale carbon capture and storage demonstration projects and £200 million will be invested in the development of off-shore wind technology and manufacturing at port sites. Norfolk’s science industry and ports could play a leading role in these new schemes.
Localism. Norfolk’s local authorities will have more control over the money they receive. The ring fencing of nearly all grants to local government will be removed, local area agreement targets scrapped, greater flexibility to manage council tax together with direct control over Council Tax benefit and, as I previously called for, (http://bit.ly/csu3bh) Tax Increment Financing will enable local authorities to borrow against locally raised business rates.
Housing. Plans to build up to 150,000 new affordable homes over the next four years (with a New Homes Bonus scheme), reforms to the planning system so we put local people in charge of planning in their area and encouraging more homes to be built where Norfolk needs them.
Equitable Life. The long-suffering victims of Equitable Life, of whom Norfolk has a disproportionate number, will finally receive a fair settlement of £1.5 billion next year, as the Chancellor has rejected the findings of the Chadwick review and accepted the findings of the Parliamentary Ombudsmen in full including special provision for those who had With Profits Annuities.
Post Offices. The Government has committed to protect community post offices and invest in the Post Office Network, which has been so hard hit of late.
Pensioners. For the high pensioner population in Norfolk, the Government has already re-linked the basic state pension to earnings, and guaranteed a rise each year of at least 2.5%. The CSR addressed the long-standing problem of the disparity between life expectancy and pension age by gradually raising the state pension age to 66 by the year 2020.
There will also be an additional £2 billion for social care, benefits for pensioners, free eye tests and prescriptions, bus passes TV licenses and winter fuel will remain. Given our ageing population in Norfolk, these are particularly important announcements.
These are challenging times and no doubt we face a difficult period ahead dealing with the crisis in the UK public finances and the deficit. But I believe there is some real cause for hope that the potential of the Norfolk economy and new growth can be unlocked.
George
