We will only get an economy that works for everybody if we guarantee fiscal responsibility, restructure our banking system and provide a boost to jobs and incomes

Retail is dependent upon the degree of optimism that consumers feel about the economy and their personal financial situation. All parties agree that tackling the deficit is crucial to secure the recovery and rebuild consumer confidence.

Retail is dependent upon the degree of optimism that consumers feel about the economy and their personal financial situation. All parties agree that tackling the deficit is crucial to secure the recovery and rebuild consumer confidence.

But at this election, only the Liberal Democrats are being honest about the choices we face. We will only get an economy that works for everybody if we guarantee fiscal responsibility, restructure our banking system and provide a boost to jobs and incomes.

The state of the public finances means we need a credible plan to tackle the deficit, based on economics not political dogma.

It is clear that with taxes already high, the focus must be on reducing public spending, not higher taxes.

The Liberal Democrats have gone further than any other party in identifying £15bn of annual savings, such as capping public sector pay rises, scrapping the Child Trust Fund and scrapping the last tranche of Eurofighter.

Businesses need the banks to lend on fair terms, but at the moment this just isn’t happening. The state-owned banks must meet the legally binding lending agreements that they have already agreed to.

In the longer term, the Liberal Democrats will separate low-risk utility banking from higher-risk activities, so that the taxpayer can never again be held to ransom by the banks. This fundamental reform will ensure banks focus on lending to businesses, supporting economic growth.

One of our key priorities is to boost jobs and incomes. Our plans for a £3.1bn economic stimulus package will create thousands of sustainable jobs and our fully costed commitment to raising the personal allowance threshold to £10,000 will put £700 back in the pocket of millions of working people.

High streets are an essential part of our communities’ DNA, but they have been decimated by the recession with smaller independent shops badly impacted.

This is not just an economic tragedy but also a social one, as high streets lose their individual distinctiveness. We want to reverse this decline and ensure that high streets remain at the heart of our communities - to this end we’d make Small Business Rate Relief automatic, consult with business to rebalance the rate burden on small independent shops, reduce the burden of red tape through better management of new regulations and ensure the long-term future of the Post Office by developing new services like a PostBank.

The retail sector is one of the most exposed to the Government’s increase in National Insurance. This is a tax on jobs, which we’d seek to reverse. However, it would be irresponsible to promise this without identifying matching spending cuts or alternative sources of revenue. In office, this would be a priority.

By taking control of the public finances, rebuilding the economy on a more sustainable basis and taking action to revitalise our high streets, a Liberal Democrat government will ensure that the retail sector can thrive and prosper.

John Thurso is the Liberal Democrats Business Spokesman