Small firms are the key to growth and I am in regular touch with many but that doesn't stop some Conservatives accusing me of not understanding private enterprise. I could say that those born with a silver spoon in their mouth may not comprehend how many other people live.
But I am always keen to deepen my knowledge and have undertaken an Industry Fellowship. This involves placements with several firms for 18 days over two years and will improve my insight into industry.
I hope that this will mean I can sharpen my critique of current policy and advocate alternatives that can rescue us from the mess we are in.
We're not short of bad news in Gateshead and the North East as the public sector is hammered and there is a knock-on effect on small and medium sized private businesses.
The Journal recently reported that the scale of business distress - serious financial problems - in the North East recently soared faster than anywhere else
This is because there is, sadly, less economic resilience in our region where for historic reasons the state accounts for more economic activity than private firms.
As severe cuts and sharp squeezes in consumer spending bite there is less scope for discretionary items such as hospitality and shopping.
Sadly, such news has been compounded by recent job losses. Over 100 jobs are going at Allied Bakeries in Team Valley and 50 more at Waverley Vintners in Felling. This will add good people to the 142,000 North East people already out of work. We now have over nine people chasing every vacancy in a crowded jobs market. There will be other job losses.
Government cannot do everything but it can encourage enterprise and boost consumer spending, especially in tough times.
The action I seek means 100,000 jobs for young people and bringing forward investment projects like new school buildings. The Government should temporarily reverse the VAT rise which would release £450 for families with children. It should cut VAT on home improvements to 5% for a year and so encourage people to refurbish their homes which would secure work for traders of all sorts. There should also be a tax break for every small firm which hires extra workers. Small firms would undoubtedly welcome such actions.
Newcastle Chronicle and Journal
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