Andrew Stunell on the Economy...

Andrew Stunell discusses the Lib Dem Economic Recovery Plan with Party Leader Nick Clegg and Shadow Chancellor Vince Cable

Our Economy is a mess. Gordon Brown was hailed in the past as the "Iron Chancellor" who could do no wrong managing our finances. The truth, as it turns out, was that he was fiddling whilst Rome burned - building up huge amounts of debt, and tolerating a reckless culture in the city that has seen our economy go bust in the blink of an eye.

Stockport isn't in the same league as London as a world financial centre, but the impact of the banking melt-down hits us just as hard. Jobs are being lost, and homes repossessed in our town every week. Local businesses are starved of working capital, and the housing market has folded.

In Stockport, unemployment is now at a higher level than before Labour came to power in 1997, and has been increasing every month. More jobs and more homes are being lost, and the public have lost all confidence in the government's promises.

We have already seen the banks get the biggest bail-out in history, yet the question on most ordinary people's lips is "When am I going to get my bail-out?"

The Tories have little to say: they opposed bank regulation before, and now want what help is available to keep the economy going cut off, with an extra tax cut for millionaires.

The Lib Dems are different though. We are recognised as having the best economics team in Parliament, and of course this catastrophic recession could have been avoided had people listened to Vince Cable in the first place. The Lib Dem Shadow Chancellor saw this disaster coming a mile off, and the Lib Dems are the only party that have the plans to get us out of this mess.

Below is Vince Cable's plan to get us out of this economic mess, as well as links to what I have been doing to raise this issue:

Help Now

Massive investment programme to create jobs and help the environment

Gordon Brown is wasting £12.5 billion on a VAT cut that is having no significant impact. We would scrap the VAT cut and use the remaining money to fund a huge 'green jobs' programme that will create (or preserve) tens of thousands of jobs building new affordable zero-carbon homes, insulating existing homes, schools and hospitals, and improving and expanding the rail network.

Cut taxes for struggling families so they have more money in their pockets

Across Britain people are struggling with rising bills, rising prices and wages that aren't keeping up. We would deliver substantial tax cuts for households on low and middle incomes to help people make ends meet. Specifically we would raise the income tax personal allowance to £10,000, cutting income tax bills by £700 a year for anyone earning over £10,000, and taking four million people out of income tax altogether. We would fund this by closing tax loopholes and tax avoidance schemes used by the wealthy and big business.

Keep people in their homes, so they don't need to fear unfair repossessions

We must ensure that banks only ever repossess people's homes as a last resort. Liberal Democrats will give courts the powers to make sure banks don't repossess unless they've already offered free independent financial advice, and pursued all alternatives like renegotiating the terms of the mortgage and offering a shared equity agreement.

Take over banks and run them in the public interest to help keep businesses afloat

The bank bail out isn't working. Despite billions being pumped into the banking sector and the Government taking large stakes in some of Britain's biggest banks, viable businesses are continuing to go under as banks pull lending from them. Banks which have failed and been rescued should be temporarily nationalised and run in the public interest. This is the only way to bring certainty, including full guarantees for all depositors, to the system while the complex process of straightening out the banks' balance sheets is completed.

We would also take action to cut energy bills, and to help people who lose their jobs or get into debt problems.

Liberal Democrats in local government are already taking action in their areas to help people and businesses cope in the recession.

Read more about this here.

Better Future

Massive investment programme in public transport and energy efficient homes will help the environment

Unlike Gordon Brown's temporary VAT cut our alternative 'green jobs' programme would create a real lasting legacy for Britain, making our economy more sustainable tomorrow as well as creating jobs today.

Reform banking and the City so this can never happen again

During the 1980s and 1990s, Britain's high street banks got sucked into a great game of reckless lending and trading in complex and poorly-understood financial instruments. They went too far. We need to return to old-style high street banks so people's savings are protected from the big risks of investment banking. We also need to reform financial regulation to curb the destabilising bonus culture, and to require financial institutions to behave more responsibly. Over time we need to reduce the dominance of 'the City' and promote more diverse, less profit-driven financial institutions such as mutuals and credit unions

New priorities for Government - cut waste and invest in education and families

Investing in our children's future is essential as we try to make a sustainable recovery from recession. Young people will be hit hardest by the recession. We need to equip today's and tomorrow's young people with the skills and education to prosper in future, not leave them unable to escape from the circumstances of their birth or from debts acquired as students. We have identified billions of pounds of unnecessary and wasteful government spending which we would reallocate to education and helping families.

We would also take action to deliver future economic stability and to reinvigorate global trade.

With events developing as rapidly as they are you might also want to check out the latest articles and statements from Nick Clegg, Vince Cable and other Liberal Democrats on the economic news section of the party website.

Economic News - Lib Dem National Party Website.

Below are links to what I have been saying and doing on the Economy

Dole Queues Continue to Grow in Stockport.

Greater Manchester Youngsters Becomming "Lost Generation" as 1 in 3 are Unemployed.

A Third of Stockport Children Living in Poverty.

Number of Stockport Job Seekers to Each Vacancy Doubles in a Month.

Unemployment in Stockport Over 10% Higher Than When Labour Came to Power.

Nothing Much In Budget for Stockport Residents.

Unemployment Now Higher Than When Labour Came to Power as an Extra 1,000 People Lose Their Jobs.

Unemployment and Reposessions on the Rise as More North West Companies Go Bust.

Local MPs Meet with Defence Minister Over Future of BAE Woodford.

Bank Bonuses Must Be Frozen.

Thousands Face 2009 on the Dole [Stockport Express].

New Dole Claims in North West Highest in the Country.

Stunell Takes Banks to Task Over Small Business Help.