Why the G20 matters to the North West

I know how tough it is right now for families and businesses in the North West who are feeling the pinch as the global economic crisis hits home.

What’s changed since the recessions of the 70s, 80s and 90s is that countries around the world are now much more interdependent. The success of firms and homeowners here in the North West depends to a large extent on the success of markets in far flung places around the world.

This means recovery from this global financial crisis cannot be achieved by one country on its own. We must take action at a local, national and international level.

That’s why Gordon Brown brought together leaders from around the world at the G20 London Summit. This crucially important meeting was a vital opportunity to take the collective action necessary to stabilise the world economy and put us on the road to recovery – and directly benefit jobs and businesses in our region.

The decisions at the summit will ultimately have an impact on every family in Britain and the priorities of the Summit – jobs, growth, stability – are this region’s priorities. The international community is determined to pull together to get through this global financial crisis, taking action to sustain employment, protect the poorest and reform the international financial system to prevent future crises.

At a national level, we are taking action by introducing a package of measures to provide real help now for families and businesses. We are also taking action to get the banks lending again and kick start the economy by giving a £145 tax cut for all basic rate taxpayers and cutting VAT, worth on average £275 to every household.

And the Joint Economic Commission for the North West, which I chair, is focussed on protecting jobs in our region and supporting people and businesses. I am particularly concerned to help young people by protecting and increasing apprenticeships.

And we are already seeing this action having an impact in the North West. I recently met a 37-year-old Manchester man who has achieved his ambition of setting up his own driving school after being made redundant. He received a £3,000 grant from Jobcentre Plus to become a driving instructor. There is a wide range of support available to help people return to work through Jobcentre Plus including a personal adviser service, access to support on jobsearch, CV preparation and other job hunting skills.

These measures are crucial but it is only with coordinated international action that we will achieve our goals. The G20 Summit was essential to make sure our domestic efforts are reinforced by international action. We are already seeing international agreement on a wide range of issues. For example the new consensus by world leaders to reject protectionism and maintain open trade cannot be underestimated – it is worth £49bn to the North West’s economy alone and supports 18,175 local businesses.

It’s true that the action we have taken and will continue to take – in the UK and after the G20 summit – comes at a price. But we have to remember that the cost of doing nothing, and allowing the world to slide into a prolonged recession, would run the greatest risk of all. The world leaders at London knew that sitting back and failing to act would be the greatest failure of their leadership to date.

For more information:
Contact Anne Arnold, Regional Information Officer
Tel: 0161 952 4505