Minister for the East Midlands, Phil Hope says "why the G20 matters to the East Midlands"

What’s changed since the recessions of the 70s, 80s and 90s is that countries around the world are now much more interdependent. The success of East Midlands firms and homeowners depends to a large extent on the success of markets in far flung places around the world.

This means recovery from this global financial crisis cannot be achieved by one country on its own. We must take action at a local, national and international level.

That’s why Gordon Brown will bring together leaders from around the world at this week’s G20 London Summit. This prestigious meeting provides a vital opportunity to take the collective action necessary to stabilise the world economy and put us on the road to recovery - which will directly benefit jobs and businesses in our region.

The decisions at this summit will ultimately impact on every family in Britain and the priorities of this Summit – jobs, growth, stability – are this region’s priorities. The international community is determined to pull together to get through this global financial crisis together, taking action to sustain employment, protect the poorest and reform the international financial system to prevent future crises.

At a national level, we are taking action by introducing a package of measures to provide real help now for families and businesses. We are also taking action to get the banks lending again and kick start the economy by giving a £145 tax cut for all basic rate taxpayers and cutting VAT, worth on average £275 to every household. And we are already seeing this action having an impact in our community.

Also, following my very recent meeting with the banks in the East Midlands I am now aware of how well equipped they are to deal with the downturn. Their well trained staff know how to find the right schemes to help businesses and homeowners. Government schemes like the Enterprise Finance Guarantee can provide real help to viable businesses in keeping them going through these difficult times.

These measures are crucial but it is only with coordinated international action that we will achieve our goals. The G20 Summit is essential to make sure our domestic efforts are reinforced by international action. We are already seeing international agreement on a wide range of issues. For example the new consensus by world leaders to reject protectionism and maintain open trade cannot be underestimated.

Open international trade of goods is worth some £32.2 billion to the East Midlands economy. It supports 14,487 local businesses. The London Summit’s commitment to open trade means a huge amount to the East Midlands.

As you watch the news this week of G20 leaders in London, I want you to remember one thing: that while the action we all take comes with a price, the cost of doing nothing, and allowing the world to slide into a prolonged recession, would run the greatest risk of all. The world leaders coming to London this week know that sitting back and failing to act would be the greatest failure of leadership.