The global credit crunch is hitting mortgages too. Like the rest of the country and the rest of the world, Yorkshire families and the Yorkshire economy will face some tougher times in the coming months.

But the Yorkshire economy starts in a far stronger position than it did in previous decades. Thanks in part to the major investment we have put into Yorkshire over the past decade, we are starting with high employment and strong business growth, in contrast to the devastation of the pits and manufacturing industry, and 15 per cent interest rates in the past.

That means we are better able to withstand the difficult global storm. And, unlike in previous decades, this Government will work to help families and businesses in our region through the tougher times, so we can come out the other side and grow for the future too.

No region or country can escape from the international economic problems we face. Unwise decisions by lenders – including in the US sub-prime market – have led to a worldwide credit crunch now. Banks across the world are still not lending to each other normally, so they have cut back on lending to the rest of us too. First time buyers, home owners remortgaging and businesses seeking new credit are all facing a tougher time as a result. And that means the housing market is under
pressure too.

With world oil prices more than doubling in a year, and the production of oil and food not enough to meet rising demand, prices are going up for all of us as a result.

Not surprisingly, we are seeing slower growth across the world, and that means families and businesses here in Yorkshire will see real pressures in the coming months too.

No government in the world can stop the global economic slowdown, or pretend to solve the price of oil overnight. But we can work with other
countries to face up to the international causes of the problems. That is why Gordon Brown is discussing with the Saudis and others how to increase oil production in the short term, but also why we are working with European and other countries to cut the world's dependency on oil in the medium term as well.

It's also why we are working with the IMF to restore financial stability and get global credit markets moving too. None ofthis is easy, but global challenges need global solutions and now is not the time to turn our backs on our European and international partners, as some suggest.

Here at home, Yorkshire families and businesses need support through the tougher times as well, which is why Alistair Darling is increasing
the winter fuel allowance to pensioners this year, when rising gas and electric bills start to bite. But it's also why we are backing a major push on insulation and energy efficiency to help cut people's bills.

Most families with kids should be getting extra cash
this year already as tax credits have gone up, but basic rate taxpayers can expect an extra £120 from this autumn due to the changes in tax allowances too.

And we have to keep up the long term investment in the Yorkshire economy, too – improving skills, improving housing, backing jobs and infrastructure. As we know from the past, it's not just about how you get through the short-term problems, it's also about how you plan and grow for the future.

The last time Yorkshire was hit by national and international economic difficulties, our region was left for years without support to help us recover. This time we will keep up the investment, keep up the support for families and households who need it most, and keep our economy well placed to come out the other side.

And the Yorkshire economy is better placed than it was in previous decades when problems hit. In the 1980s and 1990s, my constituency of Pontefract and Castleford lost thousands of jobs in the pits. Even worse, the then government stood by, and we saw nothing to replace those jobs for many years.

Yet, last week, I went to see new development on one of those pit sites in Glasshoughton, where we now have more jobs above ground than we had below ground when the pit closed – thanks not least to 10 years of regeneration investment in coalfield areas.

The Yorkshire economy is stronger in other ways. We've seen major investment in skills, our schools are getting better results, and interest rates are at five per cent, compared to the 15 per cent of previous years. With major investment in the region, there are 180,000 more jobs now than there were 10 years ago.

Yorkshire and the Humber is in the top 20 per cent of the world's national economies, with around 300,000 businesses producing goods and services worth £80bn per annum. So yes, we will face tougher times now, but by starting from a stronger position, we are better placed to come through the global storm.

Here in Yorkshire we can't escape the trials and the turbulence of the global economy. But we can pull together to get through the tougher times and keep building on Yorkshire's strength for the future.


Yvette Cooper is the Chief Secretary to the Treasury. She is also the MP for Pontefract and Castleford.