This week MP Neil Carmichael discusses the budget

THE last budget of this Parliament confirms the long-term economic plan is on course and delivering a stronger, more secure economy.

Employment is up, economic growth is up, inflation is down, the deficit is down and, now, there is proof of rising living standards.

The economic chaos left by the last Labour government has been turned around.

President Obama, Organisation for Economic Co-operation (OECD), Institute for Fiscal Studies (IFS) and many other respected commentators have recognised progress and the need to carry on with the plan.

The economic forecast is very encouraging.

National debt share is falling, borrowing has been revised down (deficit will be down to five per cent of GDP this year and we will have a surplus by 2019-20), growth has been revised upwards to 2.5 per cent this year and living standards are now higher by an average of £900 a per family as compared to 2010.

Employment is at a record high with 80 per cent of all new jobs full-time and in high skilled occupations.

Locally, the budget also brings good news.

Investment in education continues to grow as witnessed by the brilliant news of a new University Technical College at Berkeley Green, flood defence is being boosted by bringing forward the project on the River Cam, and the campaign I launched to secure support for the training for drivers heavy goods vehicles has been recognised.

Cutting taxes so people can keep more of their earnings has always been a key element of the coalition government’s strategy and, once, again, the income tax threshold has been raised again.

This means that the typical working taxpayer in Stroud is now £900 better off.

Savers, too, will be pleased.

The long-term economic plan, in part, is about creating conditions where savings replace debt.

The first £1,000 of interest from savings is now tax-free.

Pensioners now have more freedom to sell their annuity income for a lump sum and the new ISA savings scheme will help first time buyers through a £3,000 top up for a deposit.

All of this amounts to more money for families in the Valleys and Vale.