Mr Mayor, fellow Councillors, Ladies & Gentlemen.

I welcome this opportunity to respond briefly to the budget statement by the Leader which in the
past has not always been permitted. Let me review some of the areas that Cllr Kingsbury focussed on
in May 2011 as I'm sure he will wish to measure progress in these promises as is his norm at the
budget speech.

Nick Clegg champions Youth Contract

Thousands of companies received a letter this week from the Deputy Prime Minister Nick Clegg calling on them to play their part in getting young people earning or learning.

Nick is urging businesses to sign up to the government's flagship £1bn Youth Contract so that they are ready to offer the jobs to young people in April. He announced details of how employers can access cash to help cover the cost of taking on fresh talent through a 'wage subsidy'. The subsidy will be paid to companies for taking on young unemployed people and is designed to cover costs like National Insurance contributions.

The wage subsidy will pay £2,275 to employers for every 18 - 24 year old unemployed person they employ from the Work Programme and is open to all businesses, voluntary organisations and charities.

Payments for the majority of business will be made after the young person has been employed for 26 weeks. For smaller enterprises these payments will be staggered, with the first payment after eight weeks and the rest after 26. This recognises that smaller businesses need a boost to their cashflow to make the jobs viable.

The wage incentive will also be available for part time positions, with a rate of £1,137.50 if someone is employed between 16 and 29 hours.

Senior Liberal Democrat MEP and Vice President of the Parliament's Budget Committee, George Lyon, who is pushing for the EU budget to be radically restructured and independently evaluated to find further savings, commented after the vote:

"At a time when people across the country struggle to make ends meet, it is important that MEPs show some leadership in keeping the Parliament's costs under control.

"Freezing allowances and travel expenses is a good start. But I believe that we can make many more savings. In order to ensure that taxpayers are getting maximum value for their money, we need to have an independent evaluation of the EU budget to get rid of any inefficiencies and waste.

"I am very pleased that once again MEPs have also voted to push for a single seat of the European Parliament. It is an outrage that Member States still insist that the House travels between Brussels and Strasbourg each month. MEPs are quite right in calling for an urgent evaluation of this situation."

Commenting ahead of a vote on the 2013 EU budget guidelines in the European Parliament in Strasbourg tomorrow, Mr Lyon said:

"At this time of national austerity and budget consolidation, the EU budget needs to be shaken up and restructured to get rid of inefficiencies and waste.

"MEPs need to lead the way in identifying and making important savings. All MEP allowances should be frozen until 2014 and we must cap the travel budget at its present level. We must make our money travel further!

"It is also time we had an independent and thorough evaluation of the European Parliament's budget to make sure that it delivers value for money. For the time being, I want to see a freeze in administrative spending of all EU institutions."

The Staffordshire farmer and economic policy expert takes over from Liz Lynne who stood down from Parliament earlier in February after more than 12 years due to the extensive travelling required in the job. Phillip Bennion was elected to second place on the Lib Dem list of candidates at the last European elections in 2009.

Commenting on his new role, Phillip Bennion said:

Confident Ed stands firm

Strongly backed by Nick Clegg, newly appointed Secretary of State for Energy and Climate Change, Ed Davey was quick to make his mark in his new role when he confirmed his personal commitment to green growth, green jobs and the wider use of wind power technology. "I think that onshore and offshore wind power has a real place in a balanced mix of energy generation so I'm a huge supporter of renewables" he said.

100 Tory back-benchers have tabled a motion calling for a dramatic cut in subsidies for onshore wind farms but Ed is very clear where he stands. "Already we've seen through the subsidies that this government has invested in onshore wind that the price has come down to make onshore more competitive, so we've got money in all sorts of renewables because of the success of these investments.

"There may have been a change at the helm, but there'll be no change in direction or ambition. My priorities are very simple: green jobs, green growth and getting the best deal for energy bill payers."Ed and Nick Clegg were visiting the Building Research Establishment's Innovation Park near Watford, a testing site for green homes, where they met graduates considering moving into green construction jobs. Nick Clegg told them "The race is on to lead the world in clean, green energy. The savviest states understand that going for growth means going green. Low-carbon markets are the next frontier in the battle for global pre-eminence.

"We have every reason to be confident. The combination of enviable wind, wave and tidal power, a world-beating research base and a proud history of engineering give the UK a clear competitive edge. So we're already in pole position. But the reality is: we need to sharpen our elbows if we want to stay ahead." Ed Davey also announced that 155 community energy projects across the country have won a share of £5.1 million of funding from the Local Energy Assessment Fund. The winning bids include projects to demonstrate wall insulation to the public, schemes to check the energy efficiency of homes and events to promote energy efficiency in local communities.

While Ed was getting to grips with his new job, Norfolk North's Liberal Democrat MP Norman Lamb was taking up his new appointment as Minister for Employment Relations, Consumer and Postal Affairs in the Department of Business Innovation and Skills. Welcoming him Secretary of State Vince Cable said "Norman's professional background as an employment lawyer and experience as the Liberal Democrat's Trade and Industry Spokesman make him an ideal replacement. He pioneered our policy to privatise Royal Mail and establish employee share ownership in the business so it is fitting that he will be responsible for implementing that policy."

Norman, who was previously chief political adviser to Nick Clegg, expressed himself particularly delighted to be implementing the Post Office reforms he had pioneered in opposition. These would give employees a stake in the company.

Two other new appointments were announced in the mini-reshuffle. Cardiff Central MP Jenny Willott becomes an Assistant Government Whip and Dunbartonshire East's MP Jo Swinson becomes PPS to Nick Clegg.

Commenting on the ongoing crisis where Italy, Romania, Bulgaria, Greece, Turkey and Germany have experienced reductions of up to 30% in Russian gas supplies from Gazprom over the last few days, Sir Graham said:

"The freezing conditions across Europe highlight yet again the dangers of being so overly-reliant on Russia for a quarter of our gas. Gazprom has - understandably - diverted its supplies to keep Russian homes warm, leaving many European countries short and prices on the rise."

"And we just don't know what Gazprom will do next."

"But the wind is blowing harder than ever in the Scottish Hebrides and it is 15 C and sunny in southern Spain and Greece. If, instead of building gas pipelines, we were building electricity transmission infrastructure and switching from fossil fuels to wind and solar power, this week's energy outlook would be a different story. European renewables are the answer to our energy security."

"Indeed, the sun is also shining bright as ever in the Sahara. Importing electricity from North Africa would in fact be more secure than Russian gas, due to the larger number of potential trading partners and the fact that electricity cannot be switched off like gas. Electricity is the ultimate 'just in time' product: that which is not transmitted today is lost forever."

"The sheer hypocrisy of Labour to point the finger on bankers' bonuses is staggering. Labour presided over the biggest boom in bonuses this country has seen, from £3.1bn in 2001 to £11.5 billion in 2007. At the same time, they sat back and knighted the financial speculators who led this country to the brink of economic collapse.

"The Coalition Government inherited this economic mess from Labour and has taken decisive action to put the country back on track. We've capped cash bonuses at state owned banks to £2,000 and overall, the bonus pool is smaller than last year and considerably less than under Labour.

"In Government, Liberal Democrats are doing the right thing - implementing the Vickers' proposals to make banking safer in the future, continuing our fight to get the banks to lend more and introducing the banking levy which raises £2.5bn a year. All Labour can do is complain from the side lines.

"While Labour spent thirteen years being intensely relaxed about people getting filthy rich, Liberal Democrats have made clear that our priority is lifting the lowest paid people out of paying income tax all together."

"Promoting cycling and green transport is the right thing to do and I am delighted Liberal Democrats in the Coalition Government are taking action.

"This comes at a crucial time. Just five days ago The Times launched a cycle campaign in response to the shocking increase in fatalities among cyclists on our roads.

"It is absolutely essential people should be able to walk to work or cycle to school in a safe environment. The extra £8m for Sustrans will go a long way to achieving this.

"And the £7m for improved rail-cycle links will ensure that we continue to build a transport network which puts passengers first."

Clegg calls time on unfair tax system

At the Institute for Government last Friday, the Deputy Prime Minister gave a major speech on tax and supporting working families.

"The tax system," said Nick Clegg, "should be designed to reward effort, enterprise and innovation... and bear down on those things which are bad for our society.
"Attitudes to tax are a good proxy for our deepest political instincts and the three major political traditions in the UK - conservatism, socialism and liberalism - have very distinct approaches."

"The liberal approach, put most simply, is based on a profound commitment to the value of paid work. Citizens are empowered when they can keep the fruits of their own labour. And fiscal liberalism supports taxes on unearned wealth... precisely to lighten taxes on the incomes of hardworking people.

"So the Coalition is calling time on our unfair and out-of-whack tax system.
We've put up Capital Gains Tax; we've reduced tax breaks on pension funds for the very rich; we've clamped down on avoidance - the steps taken already will raise an extra £7bn every year by the end of this parliament. And our priority in government - from the front cover of the Lib Dem manifesto to the pages of the Coalition Agreement - is freeing the lowest-paid from income tax altogether... and cutting income tax for millions of ordinary workers.

"Whether you call them the 'squeezed middle', 'hard-working families', or, as I have, 'alarm clock Britain'… it's the people who whose incomes are too high to qualify for welfare benefits but too low to provide any real financial security who need this extra help. Over the last few decades wage rises have outpaced the increase in the allowance... so that more people have been sucked into the income tax net.

"At the last election my party promised to raise the personal allowance for ordinary taxpayers to £10,000 and I am extremely proud that the Coalition has committed to doing so over the course of this Parliament. I want to make clear that I want the Coalition to go further and faster in delivering the full £10,000 allowance.
Because the pressure on family finances is reaching boiling point … these families cannot be made to wait.

"Delivering the £10,000 personal allowance more quickly will need to be fully funded. But to those who say: we cannot afford to do this. I say: we cannot afford not to do this.

"It is often said that to govern is to choose... and, in particular, to choose whose side you are on. That is especially true when there is no money around. My choice - the Liberal Democrat's choice - is clear: I want to help hard-pressed and hardworking families. If that means asking more from those at the top - so be it.

"We are committed to eliminating the deficit... and eliminate it we will. But I am determined that we do so in a way that is fair...that rebalances our economy...that gives the right people the right rewards.
"People look to the Liberal Democrats to keep this Coalition anchored in the centre ground. They want economic competence, but they want compassion too.
It is our job to make sure this government delivers both."