The early start was well worth it to discuss some important issues facing the local economy, and to hear about the plans the BID has to improve things in the city centre.

The BID is making a big impression, with local business-people now taking the lead in initiatives to improve the city centre. The devolution of power makes a real difference as those with a stake in the city centre are able to lead it, as well as making a financial contribution. While perhaps in the past the local authority saw this as a threat, there seems to be a strong working relationship now which is helping to improve the city centre.

Many of the issues raised over breakfast were national as well as local. There is no doubt that 2011 is going to be a very difficult year for the economy. The spending cuts that are an essential part of stabilising the economy will start to have an effect, and the economic recovery is likely to be choppy as the effects of the worst recession for decades and the measures needed to escape it pass through the system.

While many firms took a hit in December as a result of the severe winter weather, the comments confirmed that lack of lending from banks is still a major problem. This is a major part of the discussions that the government is having with the banks at the moment. While it is very important to control bank bonuses, the benefit for many businesses of a greater availability of finance from banks mean improvements are vital to economic growth and employment.

There was also, understandably, real concern about the current high price of fuel. That effects the whole country, but particularly here in the Highlands where prices tend to be higher and distances travelled are longer. The government is delivering on the commitment I made at the election to a reduced rate of fuel duty in the most remote areas.

We are working to deliver a discount scheme for the islands, where the costs are greatest, as quickly as possible. But this change requires European agreement, which will take some time. We are also examining other measures that could offer wider relief, including the idea of a "fair fuel stabiliser". But of course any change also has a cost, which would have to be paid for; we have to stick to our plan to cut the deficit - to change course would have a hugely damaging effect.

Our first priority is to reduce the tax burden on work, especially for those on low and middle incomes. In April, the income tax allowance will rise by £1000 - putting around £200 back into the pockets of most basic rate taxpayers and meaning that 880,000 of the lowest paid people will no longer have to pay income tax.

That money will be some help to meet rising costs - and it is a first step towards ensuring that no-one pays any income tax on the first £10,000 they earn.

That was the first priority in my election manifesto, which we are now delivering in government.

We also need the Scottish government to do much more to help the economy in the Highlands. Their plans to centralise a range of public services suggests that the SNP's hostility to the Highlands is as strong as it was when they shrunk Highlands and Islands Enterprise. A Scottish equivalent of the regional growth fund to support areas most dependent on the public sector and some investment in Highland transport - not just words - would be a good place to start.