THE CHRISTMAS holidays are a time when most of us make plans for the coming year, or at least set out hopes and priorities.

Bourne is such a friendly, neighbourly, civilised place that I think of my role there more in defensive terms (keeping our excellent schools, public services, fending off unwanted development) than in terms of solving pressing problems.

In the wider world, I see little prospect for much progress towards the peace in the Middle East or in Afghanistan. We must remain committed to military operations in Afghanistan for as long as it takes to prevent the Taliban taking over the country again. If they did, Afghanistan would once again become a logistic and training base for international terrorist operations.

Who can doubt that the terrorists who attacked London and Glasgow in June would have killed a lot of people if they had had the benefit of a three month course in bomb making and detonation at a terrorist camp in Afghanistan?

We should all spare more than a thought this Christmas for our brave troops spending the season once again in the harsh mountains and deserts of Afghanistan.

The great challenge for us here in 2008 will be the economy. The crisis in the international inter-bank market cannot but reduce credit creation and therefore demand. Falling house prices will do the same.

However I believe that central banks will reduce interest rates to compensate, and I am reasonably confident we shall avoid a recession.

I hope that you and your family have a very happy Christmas, and a full and fulfilling new year.