OPINIONS will no doubt differ about the economic package unveiled on Monday by the Chancellor Alistair Darling.

Unsurprisingly, I think it’s the right thing to do. Kick-starting the British economy seems to me to be essential if we are to get demand for goods and services back to the levels they were at before this credit crunch started to bite.

And, as ever, much of Europe and the rest of the world’s salvation lies in the hands of the United States.

As we’ve seen, when the US gets a cold the rest of us don’t just sneeze but go down with a raging infection – in this case called the sub-prime crisis.

So if President-elect Obama really can get the US economy motoring the rest of us will benefit.

But key to recovery, on either side of the Atlantic, is confidence; and key to that is to get credit flowing to businesses, especially small and medium sized ones – the mainstay of wealth creation across East Lancashire.

Whatever the other disagreements, I think there will be a hearty welcome for the measures to help businesses. What’s more, East Lancashire businesses can claim some pride in their creation.

Immediately after the “Business Summit” held in Blackburn Town Hall last month I wrote to Peter Mandelson, the Business Secretary, with a detailed list of concerns of local businesses. I then discussed them with the Prime Minister, the Chancellor, and Lord Mandelson.

The fundamental worry of all businesses has been about the availability of credit – the lifeblood of any economy.

There is understandable impatience with the major banks that despite the £37billion of taxpayers’ money which has been used to improve the capital base of the banks, banks at a local level, especially those dealing with small and medium sized enterprises, were continuing with very tight lending practices which in some cases were tipping companies unnecessarily into bankruptcy.

So on Monday the Chancellor announced a range of measures effectively to require the banks to show the same sensitivity for their customers which the taxpayer has shown them – and above all to return to lending levels of 2007.

Alongside these measures, there’s a new Small Business Finance Scheme to support up to a £1billion of bank lending to small exporters, a £50million fund to convert small businesses’ debt into equity, and a £25million regional loan transition fund, and many other measures.

Better arrangements are being made for late payment of business taxation of all kinds, and the planned increase in small companies’ corporation tax is deferred. Crucially small companies will be able to offset up to a further £50,000 losses against profits in profits in the preceding three years.

At the Business Summit there was much concern over the Business Rates for empty properties. There will now be a temporary increase in the threshold so that it will not apply to any properties with a rateable value of less than £15,000 in 2009/10. Energy companies are going to be scrutinised much more carefully to ensure that they pass on reductions in wholesale prices to customers.

I’m organising a second Summit for early in the new year.

Meanwhile, businesses who find that these measures are still not working through on the ground, or who want the council’s help or mine, should please get in touch.