Even though the economic recovery is in its infancy, I can already sense confidence is coming back to the high street - a tribute to the innovation, dynamism and competitiveness of Britain’s retail sector.

Even though the economic recovery is in its infancy, I can already sense confidence is coming back to the high street - a tribute to the innovation, dynamism and competitiveness of Britain’s retail sector.

Securing recovery and delivering strong economic growth is Labour’s top priority.

It’s not always been easy for you but thanks to your hard work retail sales in February recorded the biggest monthly increase since May 2008 and sales were 3.5% higher than a year ago, according to the Office for National Statistics.

Food inflation has fallen to its lowest for over three years and overall shop price inflation is the lowest since November.

Those figures are encouraging but I’m under no illusions just how tough trading conditions have been. That’s why we have done everything possible to get viable businesses through the downturn. And why I believe we must continue to support the economy this year until private sector demand is strong enough to take the strain.

Our temporary VAT cut put money into the economy at a vital time to increase consumer spending while our Time to Pay scheme has allowed over 200,000 businesses to delay £5bn in business taxes until they are able pay on a timetable that suits them. The fact that over our term in office we cut corporation tax to 28% also helps.

As the recovery takes shape we are putting further measures in place to make things easier. The Enterprise Finance Guarantee, which has guaranteed loans to thousands of businesses up and down the country, will be extended for another year meaning an additional £500m of bank lending.

Small business failure is less than half the rate of the 1990s recession. But we recognise businesses, especially in retail, need a helping hand. This is why schemes like Time to Pay and the Enterprise Finance Guarantee will continue under Labour - not wound up just when you need them.

To give extra help this year business rates will be cut from October, a change that will cut tax for almost 100,000 shops.

I know getting credit from the banks is a real issue so the taxpayer-backed banks will be required to lend £94bn over the next 12 months, with at least £50bn going to small firms. Those agreements are legally binding and there will be consequences for the pay of the bankers if they fail to meet them.

And a new small business credit adjudicator will have powers to make sure that small businesses can’t be unfairly turned down for bank loans.

I think withdrawing support this year would threaten the return of consumer confidence that is so vital to the retail sector. That is why I am so opposed to Conservative proposals to take £6bn of spending power out of the economy this year - giving a real risk of plunging us back into recession.

Of course all this has to be paid for - especially if we want to protect our schools, hospitals and police from cuts - which is why we feel we have to raise National Insurance payments for those earning over £20,000 in April 2011. Some retail figures have questioned this decision and fear it could cost jobs, but as we have found before if you do this when the economy is growing, that will not be the case.

I think people who work in retail understand that you cannot base tax cuts on mere hopes of efficiency savings this year that are not specified or detailed at all. No firm would do such a thing. My fear is that in truth the Conservatives would fill the gap with a VAT hike, which would be disastrous for jobs and the high street.

With the recovery still fragile we cannot afford to take risks with the economy. We must do everything we can to secure the recovery and deliver strong growth.

I believe the best future for Britain’s retailers is with a Labour government that has a credible programme to secure the recovery and create the right conditions for our world-famous companies and thousands of smaller retail outlets to thrive.