Whether it's the price of a loaf of bread, or the cost of filling up the car, rising prices are having a real impact.

I'm not going to pretend that things are easy - I'll always tell it like it is. The global credit crunch is hitting mortgages. Like the rest of the country and the rest of the world, Hastings and Rye families and the local economy will face some challenges in the coming months.

But we are in a far stronger position than we have been before. We now have high employment and growth. Compared to the devastation of the jobs and industry and the 15% interest rates we had in the early 1990s. That means we are better able to withstand the storm. And unlike in previous decades this government will work to help families and businesses in our area through the tougher times, so we can come out the other side.

Families and businesses need support. The Chancellor Alistair Darling is increasing the winter fuel allowance to pensioners this year, when rising gas and electric bills will start to bite. And he's backing a major push to help cut people's bills with insulation and energy efficiency. We have also postponed the planned 2p rise in fuel duty this October.

Personally I have been calling for an expansion of Social support offered by the energy companies. I believe they should give a quarterly £50 discount to all those at risk of fuel poverty – by that I mean those on low incomes, in receipt of tax credits and pensioners.

We can't escape from the international economic problems we face. Bad decisions by lenders - like in the US sub prime market - have led to a worldwide credit crunch now. Banks across the world are still not lending to each other, so they have cut back on lending to the rest of us too. First time buyers, home owners remortgaging and businesses seeking new credit are all facing a tougher time as a result. And that means the housing market is under pressure.

With world oil prices more than doubling in a year, and the production of oil and food not enough to meet rising demand, prices are going up for all of us as a result.

So the end result is slower growth across the world and here in Hastings and Rye.

No government in the world can stop the global economic slow down, or pretend to solve the price of oil overnight. But what we can do is take the lead and face up to the international causes of the problems. Gordon Brown is discussing with the Saudis and others how to increase oil production and working with Europe and other countries to cut the world's dependency on oil in the medium term as well.

And it's why we are working with the International Monetary Fund to get financial stability and global credit markets moving. It's not easy, but global challenges mean now is not the time to turn our backs on our European and international partners, as some suggest.

Most families with kids should be getting extra cash this year already as tax credits have gone up and basic rate taxpayers can expect an extra £120 rebate this autumn due to the changes in tax allowances too.

Here in Hastings and Rye we can't escape the trials and the turbulence of the global economy. But we can pull together to get through the tougher times and keep building on our strengths for the future.