After America postponed its jump off the fiscal cliff in the early hours of New Year’s Day, world stock markets have soared, with our FTSE index passing the 6000 mark for the first time in 18 months. This combined with retailers John Lewis and Next both reporting strong Christmas trading figures, set the tone for early New Year economic cheer. However, America’s debt remains an incomprehensible $16.3 trillion (£10 trillion) and its politicians are failing to reduce it, seemingly only tinkering around the edges. Failure to act will not only hurt the US, but with the whole world dangerously reliant on a buoyant US economy, it would hurt us all.
The United States, like us, have hit a crossroads. Like the last Labour Government, they are spending far more than they are generating in taxes, saddling the nation with spiralling debt. They need to take decisive action for all our sakes. In the UK we have cut our deficit by 25% by taking difficult decisions. This has protected our triple A credit rating, kept interest rates at a record low, seen unemployment fall, new businesses created and manufacturing taking advantage of new emerging markets beyond the US and Europe. The road to recovery will be long, but at least we remain on the right course. Let’s hope over the next two months American politicians can put aside their individual narrow interests to secure their long-term economic future.
At home, I have long championed Young Entrepreneurs and I am delighted the government is expanding its start-up loans scheme. This offers young entrepreneurs loans of about £2,500 to help them start businesses through the Start-up Loans Company. The Company is chaired by James Caan, who is best known from the television programme Dragons' Den. The scheme had originally been aimed at 18-to-24-year-olds, but is now being expanded to those aged up to 30. Young entrepreneurs are also offered advice to help them with their new businesses, which is crucial for those taking their first steps. I hope this scheme will prove popular with Swindon’s next generation of wealth creators.
On another matter, it was disappointing to see the left-wing Guardian newspaper willing to publish the provocative advert from the Argentinean Government demanding sovereignty of the Falkland Islands. The Foreign Office says there could be no negotiations on sovereignty unless and until the islanders so wish. They remain free to choose their own futures, both politically and economically, and have a right to self-determination as enshrined in the UN Charter. A referendum on the Falklands’ future is to be held in March at which the status quo is expected to prevail, and the government is crystal clear that it supports the Islanders’ wishes.
