Economy: winds of change blow

Contrast this tiny sum with the eye-watering figures, running into tens of billions, that formed the basis of the comprehensive spending

review. The age of austerity is clearly here to stay – even more so when the small-print of today's transport settlement is examined.

Nevertheless, this should not detract from David Cameron's recognition – albeit belated – that areas like East Yorkshire, in desperate need of industrial renewal, could play a pivotal role in developing a key component of the world's 21st-century energy supplies.

Yorkshire has already placed itself at the forefront of the low-carbon economy, despite the coalition tearing up the previous Government's commitment to Sheffield Forgemasters, and it is important that pressure is maintained on Ministers.

With financial analysts contending that the North will be hardest hit

by the spending cuts because the economies of so many towns are so closely allied to the public sector, it will take far more than the

creation of a 60m fund to help the region during a time of economic transition.

The Prime Minister has to realise that the cull of public workers, coupled with moves to raise the retirement age and encourage long-term benefit claimants to find meaningful employment, will be self-defeating – and blow apart the Treasury's calculations – if a new generation of jobs is not created.

Of course, the Government's approach has to be very different to the measures advocated by New Labour; the reason Britain is in such a mess is because the state was expected to be the solution to every policy.

As such, the onus is on the coalition to do far more to help, rather than hinder, private enterprise, including a far greater use of incentives in those areas blighted by a shortage of jobs.