BRITAIN IN STRONG POSITION FOR 2006 SAYS TONY BLAIR
(1 January 2006)

"The UK begins 2006 in a strong position thanks to eight and a half years of a Labour Government" said British Prime Minister, Tony Blair. "Despite a more challenging context our economy is enjoying its longest period of growth while employment is high, interest rates and inflation are low. Hospital waiting lists and times are falling, crime is down and our children have had the best-ever exam results. Britain today benefits from record police numbers and fear of anti-social behaviour is falling.

We have successfully combined productivity higher than Germany and Japan, with a minimum wage of over £5 and lifting 700,000 children out of poverty since 1997. We are trebling the UK aid budget; for every pound of UK aid spent in 1997, we will be spending by 2008 three pounds. The UK-chaired G8 Summit this year saw commitments to double aid by 2010 - an extra US $50 billion globally, including $25 billion for Africa - and to provide debt cancellation for up to 38 HIPC countries worth US $55 billion.

Labour members, supporters and everyone in our country who has worked hard to achieve this can feel proud of the progress we've made this year. Our achievements are being acknowledged across the globe, a fact recognised by the international community when we won the 2012 Olympics for London,

As I said last week, it is new Labour which has set the political agenda that other parties are now claiming they want to follow. But the fundamental divide between us and the Conservative party on key decisions remains clear; David Cameron has stated clearly he wants to return to selection in our schools. He believes we should return to investing less in public services. This is not the right future for our country.

I believe 2006 is a year in which critical decisions have to be got right if we are to sustain prosperity and fast-improving public services for the long-term.

On schools, local health services, pensions, welfare, the Respect agenda and energy, we face big choices which will decide how prepared we are for the challenges of the future.

In public services like education and health, the challenge will be to ensure continuing investment is matched by greater responsiveness to the needs of the people who use and pay for them. Investment will continue but it must be matched by further change to meet the ever-higher expectations of the public.

In the Respect agenda, the success of the Action Plan we are publishing in January will be vital if we are to make a lasting difference in reducing anti-social behaviour and effectively tackling the problem families who do so much to damage communities.

Meanwhile, in welfare, pensions and energy, we have to get right decisions which will affect the prosperity and security of the people of Britain for the next 50 years. None will be easy, all will have to balance what is best for the future of the country with what is affordable now. But in each case, the decisions taken will affect the future for generations to come.

These reforms at home will be matched by the necessary agenda internationally as we continue to fight terrorism and bring hope and democracy to Afghanistan and Iraq. 2005 was a vital year for progress both on global poverty, especially in Africa and on climate change. But in 2006 the challenge will be to push further progress in lifting aid, in bringing the WTO to a successful conclusion and turning the agreement reached at Montreal into practical reality. We will not let our resolve slip to tackle the dangers which we face both at home and abroad.

Britain in 2006 will continue to be one of the most successful countries in the world with a strong economy and good public services. We live in a beautiful, prosperous country where most of us work hard and live decent, honest lives. In an age of rapid change new challenges and threats will emerge constantly but we should always be grateful for what a great country Britain is.

We are one of the largest economies in the world. We have rising living standards and this is the only Government of any major developed nation investing more public money in health and education every year as a proportion of national income. We have strong alliances with the world's only superpower, America, and the world's largest economic market, Europe. The challenges we face are similar to those of every major developed nation in the world. But our capacity to meet them is well proven and 2006 will demonstrate this yet again. "

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