THE year just past will be seen as the turning point towards economic recovery from the disasters of 2007-10. All indicators are encouraging. Overall economic growth is around three per cent, unemployment in the Valleys and Vale has fallen sharply, and because we have a large local manufacturing base, average wages and salaries are creeping up. Rebuilding and rebalancing the economy is an ongoing task but events like the Festival of Manufacturing and Engineering serve to remind us of the inventiveness and intelligence of our local businesses.

State pensions have been outpacing inflation because all annual increases have been calculated on the basis of the highest measure of inflation. Looking after our elderly people must be a priority and this has been reflected in the much needed reforms of our welfare system. All this has been reinforced through increasing thresholds before anyone has to pay income tax. Today, this means any income tax payer – including pensioners – are on average, £800 better off.

Youth employment is at its lowest for more than a decade. Moreover, schools and colleges have benefitted from significant investment – capital improvements and additional revenue funding. All of us depend on public services and the commitment of the staff in them. In particular, our hospitals are much loved, not least because of the commitment by nurses and doctors. Already, we have benefited from additional expenditure on diagnostics, outpatient care and maturity services but the further commitment of £2 billion to the NHS present more opportunities for invest in healthcare.

Our emergency services are to be saluted for their achievements this year. Crime is down by around 10 per cent, our firefighters are putting the latest equipment to good use, the ambulance service has invested in some first class vehicles and the Environment Agency is taking steps to protect us from flooding.

Turning to international matters, our thoughts should be with our armed forces wherever they are.

Stroud MP Neil Carmichael