Browse content similar to 27/11/2015. Check below for episodes and series from the same categories and more!
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Jeremy Corbyn says he's not keen on war but today he's locked in battle | :00:36. | :00:42. | |
The Labour leader says he won't back David Cameron's plan to bomb | :00:43. | :00:48. | |
At least half the Shadow Cabinet and many Labour MPs are now in open | :00:49. | :00:54. | |
Two have even suggested, on the record, | :00:55. | :00:58. | |
We'll have the latest in this developing row. | :00:59. | :01:04. | |
Whatever Labour formally decides, there is likely a majority of MPs | :01:05. | :01:07. | |
in favour of extending RAF airstrikes from Iraq to Syria. | :01:08. | :01:13. | |
I'm against the air strikes generally simply | :01:14. | :01:17. | |
because I think it will encourage more terrorism in this country. | :01:18. | :01:20. | |
It only takes a few of them to get in and | :01:21. | :01:23. | |
Turns out there was an extra 27 billion quid | :01:24. | :01:34. | |
down the back of a Treasury sofa, allowing George Osborne to U-turn | :01:35. | :01:37. | |
We speak to the independent number cruncher who found the money. | :01:38. | :01:49. | |
A slightly curtailed programme today due to the Davis Cup tennis. | :01:50. | :01:59. | |
But with us today is the columnist and broadcaster Jenni Russell. | :02:00. | :02:03. | |
Jeremy Corbyn is fighting to contain a Shadow Cabinet rebellion today | :02:04. | :02:06. | |
after he said he told MPs he could not support RAF airstrikes | :02:07. | :02:11. | |
Yesterday, the Shadow Cabinet tried to come up | :02:12. | :02:16. | |
with an agreed response to David Cameron's plan to deal with IS. | :02:17. | :02:21. | |
They failed but agreed to meet again on Monday | :02:22. | :02:23. | |
But divisions within Labour's top team spilled out in to the open | :02:24. | :02:28. | |
when Mr Corbyn wrote to all his MPs saying he would not back the | :02:29. | :02:31. | |
The Labour leader had omitted to tell the Shadow Cabinet he | :02:32. | :02:37. | |
Several Labour frontbenchers are muttering about resigning | :02:38. | :02:41. | |
if the leader orders his Shadow Cabinet to fall in line. | :02:42. | :02:44. | |
This morning two Labour MPs even suggested Mr Corbyn should resign | :02:45. | :02:47. | |
A free vote would seem the only way out of the mess. | :02:48. | :02:55. | |
But Shadow Development Secretary Diane Abbott, says MPs need to get | :02:56. | :02:58. | |
It's not for me to say whether there will be a free vote. | :02:59. | :03:04. | |
Jeremy has made his position clear, as is appropriate as leader | :03:05. | :03:07. | |
of the party and I think, in the end, party members will want | :03:08. | :03:10. | |
MPs to unite behind the leader, because what Jeremy is saying | :03:11. | :03:14. | |
about Syrian bombing is what party members are saying. | :03:15. | :03:18. | |
Joining me now is the Labour MP Jim Fitzpatrick. | :03:19. | :03:20. | |
He was a minister under Gordon Brown. | :03:21. | :03:23. | |
And James Schneider is spokesman for Momentum, the campaign group closely | :03:24. | :03:26. | |
They are urging their members to lobby Labour MPs to oppose British | :03:27. | :03:30. | |
Welcome to you both. You listen to the Prime Minister yesterday. What | :03:31. | :03:49. | |
broad conclusion did you come to? Do you broadly support him? I think I'm | :03:50. | :03:52. | |
inclined to support the government depending on the motion. I want to | :03:53. | :03:57. | |
see what the Shadow Cabinet recommend and the parliamentary | :03:58. | :04:00. | |
Labour Party discussion overnight will say, but the Prime Minister | :04:01. | :04:04. | |
clearly indicated he had listened to the previous defeat, had learned a | :04:05. | :04:07. | |
lesson post-Iraq and set out a 7-point plan which tended to respond | :04:08. | :04:13. | |
to the concerns that people have been racing about extending the | :04:14. | :04:17. | |
action from that in Iraq across the border into Syria. What do you say | :04:18. | :04:23. | |
to that, James? I don't think the case has been made, I don't think | :04:24. | :04:28. | |
the case has been made, there were four conditions which needed to be | :04:29. | :04:32. | |
met which was passed in the most recent Labour Party conference and I | :04:33. | :04:34. | |
think the membership is overwhelmingly opposed to bombing | :04:35. | :04:39. | |
and I think Jeremy Corbyn are showing very strong leadership on | :04:40. | :04:41. | |
this by saying quite clearly what he thinks. Is there anything the Prime | :04:42. | :04:46. | |
Minister could have said? To convince you? I can't see how things | :04:47. | :04:53. | |
David Cameron would've said, given what he said in the past about | :04:54. | :04:58. | |
Syria, I think, ways in which we could be acting more robustly in | :04:59. | :05:03. | |
Syria, but that would require certain preconditions which are very | :05:04. | :05:06. | |
much not been met, so we did a conference plan deal with the | :05:07. | :05:12. | |
refugees, the only military action needs to be subordinated to regional | :05:13. | :05:15. | |
diplomatic efforts to come up with some kind of... But these already | :05:16. | :05:20. | |
underway. Military action is not underway. It has not been | :05:21. | :05:26. | |
subordinated to that process. No, but diplomatic action is already | :05:27. | :05:30. | |
underway and everything we know, although they have not fallen apart, | :05:31. | :05:33. | |
it would take a long time for this diplomatic action to bear fruit. | :05:34. | :05:38. | |
Meanwhile, we know the intelligence services who met the Shadow Cabinet | :05:39. | :05:42. | |
on Wednesday night, ISR planning terrorist attacks in the West | :05:43. | :05:44. | |
including in terrorist attacks in the West | :05:45. | :05:46. | |
will we do in the interim as a terrorist attacks in the West | :05:47. | :05:51. | |
for diplomatic progress? But the case for additional bombing in | :05:52. | :05:55. | |
Syria, that will prevent Isis attacks and | :05:56. | :05:58. | |
Syria, that will prevent Isis what should we do in the interim | :05:59. | :05:59. | |
given that we what should we do in the interim | :06:00. | :06:05. | |
security services to avoid attacks here. With Paris, they were planned | :06:06. | :06:08. | |
and organised. here. With Paris, they were planned | :06:09. | :06:15. | |
want to abolish that? No, he does not. He signed a petition in April. | :06:16. | :06:23. | |
No he didn't. He may have signed. I don't read the details. He may have | :06:24. | :06:25. | |
signed a manifesto which don't read the details. He may have | :06:26. | :06:29. | |
one line out of very many lines. don't read the details. He may have | :06:30. | :06:33. | |
Politicians, you sign manifestos but you don't agree with every single | :06:34. | :06:37. | |
line on it. He held this document up in front of a camera. I can't | :06:38. | :06:43. | |
respond to John McDonald. I'm sorry. You voted against air strikes in | :06:44. | :06:50. | |
2013. I did because the proposition was to bomb President Assad and I | :06:51. | :06:55. | |
felt the experience of Iraq, we took out Saddam Hussein, there was no | :06:56. | :07:00. | |
felt the experience of Iraq, we took post-conflict plan, we crated a | :07:01. | :07:02. | |
vacuum and extremists moved into that vacuum. I think it is certainly | :07:03. | :07:07. | |
vacuum and extremists moved into part of the strategy which it wasn't | :07:08. | :07:13. | |
in 2013 and had we taken out President Assad, IS would've filled | :07:14. | :07:15. | |
it in. Now the world has moved on, we have peace talks in Vienna, the | :07:16. | :07:20. | |
recent atrocities in Paris and Tunisia, Iran and Russia and Saudi | :07:21. | :07:25. | |
Arabia and around the table in Vienna for the first time. There's a | :07:26. | :07:31. | |
different set of circumstances. ISR still growing, subjugating the | :07:32. | :07:33. | |
Muslim community in the territory they held, throwing gay people off | :07:34. | :07:40. | |
the roofs of tall buildings, beheading people, and we have 5 | :07:41. | :07:44. | |
million Syrian refugees as a result. We have to do something to contain | :07:45. | :07:50. | |
IS and address this issue. Let me look at the Labour Party 's response | :07:51. | :07:54. | |
to this. There was a long Shadow Cabinet discussion yesterday. It | :07:55. | :07:59. | |
didn't come to an agreement. The agreement would be that they would | :08:00. | :08:02. | |
meet again on Monday and mull things over. Why did Jeremy Corbyn without | :08:03. | :08:10. | |
telling the Shadow Cabinet right to MPs pre-empting discussions by | :08:11. | :08:13. | |
saying he's against it. He's entirely entitled to lead his | :08:14. | :08:17. | |
position as leader of the party in the same way as other members of the | :08:18. | :08:20. | |
Shadow Cabinet. But why didn't you tell a Shadow Cabinet? Until they | :08:21. | :08:27. | |
discovered Jeremy Corbyn in this letter, they could not express their | :08:28. | :08:32. | |
own opinions. Why did he not tell a Shadow Cabinet that that is what he | :08:33. | :08:35. | |
was doing at the Shadow Cabinet meeting? No shadow minister knew | :08:36. | :08:39. | |
that was what was going to do. As Hilary Benn said this morning, | :08:40. | :08:43. | |
Jeremy is elected as leader on overwhelming majority. He is | :08:44. | :08:47. | |
entitled to make his opinion very clear. But why did you not tell a | :08:48. | :08:54. | |
Shadow Cabinet? I don't know what goes on in Shadow Cabinet. You seem | :08:55. | :09:00. | |
quite well-informed. I don't know what goes on in Shadow Cabinet at | :09:01. | :09:08. | |
all. But he is entirely right to show leadership and shows the | :09:09. | :09:11. | |
position is going to take. I'm not arguing with you about that. Do you | :09:12. | :09:18. | |
expect to be heavily lobbied by momentum this weekend to vote | :09:19. | :09:21. | |
against the government? Yes. How would you respond? As I have been | :09:22. | :09:28. | |
doing so, by individually e-mailing my constituents and expressing an | :09:29. | :09:33. | |
opinion to them, to be honest, but I'm inclined to support the | :09:34. | :09:36. | |
government, the game plan yesterday was a Shadow Cabinet was most to me | :09:37. | :09:42. | |
to consult over the weekend their constituencies and reflect on the | :09:43. | :09:44. | |
prime ministers statement and the evidence and come back on Monday to | :09:45. | :09:51. | |
make a decision and a recommendation. Jeremy clearly, I | :09:52. | :09:54. | |
think when they arrive in the chamber, body language indicated he | :09:55. | :10:00. | |
is opposed and was not going to support it. He tested the Shadow | :10:01. | :10:03. | |
Cabinet and the majority are opposed to him so therefore he's going above | :10:04. | :10:08. | |
their heads to use his momentum to put pressure on MPs and Shadow | :10:09. | :10:11. | |
Cabinet members so when he recalls the saddle Cabinet on Monday, maybe | :10:12. | :10:15. | |
some of them will have changed their mind. If they don't, the only place | :10:16. | :10:19. | |
you can go is a free vote. If momentum members discover the | :10:20. | :10:24. | |
majority in the parliament to Labour Party constituents are against | :10:25. | :10:27. | |
bombing, they are faced with a member like this, who is going to | :10:28. | :10:32. | |
vote with the government and abstain on the issue at least, what should | :10:33. | :10:37. | |
happen to these MPs? Exactly as Jim said, they should respond to each | :10:38. | :10:44. | |
position, and there's a normal debatable for the snow threat | :10:45. | :10:50. | |
implied by Google writing to an MP to express an interest. You don't | :10:51. | :10:54. | |
think it MPs defy Mr Corbyn on this issue, they should face calls for | :10:55. | :10:59. | |
deselection? No I do not think so. They should vote on their | :11:00. | :11:05. | |
conscience? Yes, there should be no deselection. There will be no | :11:06. | :11:10. | |
deselection of MPs on this issue. You are smiling. There's always a | :11:11. | :11:14. | |
minority in any constituency party disagree with their candidate and | :11:15. | :11:17. | |
who will want to deselect him. I think there's a real chance now they | :11:18. | :11:22. | |
will be an orchestrated attempt to deselect MPs and with a boundary | :11:23. | :11:25. | |
changes the government are proposing for the next Parliament, there will | :11:26. | :11:30. | |
be a lot of contests created as a result of geographical changes so a | :11:31. | :11:33. | |
number of MPs I think will face a challenge. I don't see any way out | :11:34. | :11:39. | |
of this for Labour. Except a free vote. Do you? I think every thing | :11:40. | :11:44. | |
else is impossible, there's no possibility members of the Shadow | :11:45. | :11:47. | |
Cabinet to our prepared to support air strikes are going to change | :11:48. | :11:52. | |
their minds over the weekend. The problem for Jeremy Corbyn is the | :11:53. | :11:55. | |
British public thinks there is no circumstance whatsoever he would | :11:56. | :11:58. | |
ever back any kind of military action. We know he would ever back | :11:59. | :12:01. | |
any kind of military action. We know his opposed military action over 30 | :12:02. | :12:04. | |
years and has already said he's against it in this situation, which | :12:05. | :12:08. | |
may well be the right thing to believe, but the problem is he does | :12:09. | :12:11. | |
not look like the leader who would ever agree in any circumstance. He's | :12:12. | :12:16. | |
not going to change his mind and a Shadow Cabinet about change theirs. | :12:17. | :12:24. | |
He's never supported the action against the IRA, the Falklands, | :12:25. | :12:29. | |
Kosovo, he was against that. It's a default position. I don't understand | :12:30. | :12:35. | |
why it's a great show of strong, courageous leadership to stick to | :12:36. | :12:38. | |
your guns and go, yes, we're going to have a war, it's somehow a | :12:39. | :12:42. | |
failure bishop not stepping up to it. If you just say clearly, watch | :12:43. | :12:47. | |
opposition is... That wasn't Jenny 's point. There's no point having a | :12:48. | :12:51. | |
debate with Mr Corbyn because he's always opposed any kind of military | :12:52. | :12:56. | |
action which involves the West. At Labour Party conference, it was | :12:57. | :13:00. | |
voted through by the delegates at conference, the conditions that | :13:01. | :13:02. | |
would need to be met and those conditions have not been met. All | :13:03. | :13:07. | |
right. Are you in favour of a free vote? Momentum does not have a | :13:08. | :13:13. | |
position on it and it's not for me to say full setup to Jeremy and the | :13:14. | :13:16. | |
Shadow Cabinet. I don't want to second-guess it. Does the cabinet | :13:17. | :13:23. | |
take place before the Shadow MP? Yes. He would have to say of the PLP | :13:24. | :13:27. | |
what he agreed position as or they would be an agreement? Jeremy will | :13:28. | :13:33. | |
be reporting to them at 6pm on Monday and telling as the | :13:34. | :13:35. | |
recommendation which will then be discussed among the PLP but, yes, | :13:36. | :13:41. | |
Shadow Cabinet will come to one imagines a conclusion before the | :13:42. | :13:46. | |
PLP. You had better order in the popcorn. Gentlemen, thank you very | :13:47. | :13:47. | |
much. So, the Prime Minister laid out | :13:48. | :13:48. | |
his comprehensive plan yesterday to take the fight to so-called | :13:49. | :13:51. | |
Islamic State in Syria. The Prime Minister might have | :13:52. | :13:53. | |
convinced MPs We've been watching in the House | :13:54. | :13:56. | |
of Commons whose decision it is, mood-changing possible | :13:57. | :14:04. | |
mind-changing, on whether we should But what do people | :14:05. | :14:07. | |
outside think about it? I'm against | :14:08. | :14:13. | |
the air strikes generally simply because I think it will encourage | :14:14. | :14:15. | |
more terrorism in this country. Isil is an enormous problem but I | :14:16. | :14:18. | |
don't believe this is I think we should, to be honest, | :14:19. | :14:21. | |
yeah. I really do because of everything | :14:22. | :14:25. | |
that's going on at the moment. It only takes a few | :14:26. | :14:28. | |
of them to get in and So I agree with it, yeah, I really | :14:29. | :14:30. | |
do. I'd want to know for | :14:31. | :14:36. | |
a start precisely what the objective was of these strikes, who they were | :14:37. | :14:39. | |
aimed at, and what the endgame was. They've got to be stopped but then | :14:40. | :14:42. | |
there's the civilian casualties as well to take into consideration, | :14:43. | :14:45. | |
so it's a very difficult call. I wouldn't like to be voting | :14:46. | :14:49. | |
on that myself. We're watching other people do it, | :14:50. | :14:51. | |
and obviously our allies are doing it, so maybe we | :14:52. | :14:53. | |
should get involved as well. At the same time, | :14:54. | :14:57. | |
they're really bad people. And I think, in order | :14:58. | :15:05. | |
for the bad people to succeed, it's You should be involved | :15:06. | :15:10. | |
because they are troubling The whole world has been troubled | :15:11. | :15:25. | |
by them. I think it's | :15:26. | :15:32. | |
a very unclear situation. I think there's a lot of countries | :15:33. | :15:39. | |
that are already involved and it's very difficult to understand | :15:40. | :15:42. | |
the impact that we would have in Peter Kellner is the President | :15:43. | :15:44. | |
of the polling organisation YouGov. Welcome back to the programme, | :15:45. | :16:01. | |
Peter. Let's begin with the changing mood of public opinion in the round. | :16:02. | :16:09. | |
What is now the majority British view in extending our bombing to | :16:10. | :16:14. | |
Syria? It is exactly the opposite to what it was two years ago before the | :16:15. | :16:17. | |
Government's defeat. Then we found at YouGov, 2-to-1, the public were | :16:18. | :16:23. | |
opposed to air strikes against President Assad, now it is two to | :16:24. | :16:27. | |
one in favour of air strikes against Isil in Syria. And I assume that is | :16:28. | :16:33. | |
Tunisia, Paris, Jihadi John, the rise of Islamic State beheadings and | :16:34. | :16:39. | |
so on? That is right. I think what happened two years ago, it blew up | :16:40. | :16:43. | |
suddenly, if you remember the stories of chemical weapons, it | :16:44. | :16:47. | |
happened in the summer, MPs were on a break and Parliament was recalled | :16:48. | :16:50. | |
and there wasn't the time, either at Westminster or the general public, | :16:51. | :16:53. | |
for the Government to prepare the ground and this time it is well | :16:54. | :16:58. | |
prepared. And do we have data on the attitude of the Labour membership, | :16:59. | :17:04. | |
such as it is in a largely expanded form in the course of Mr Corbyn's | :17:05. | :17:08. | |
leadership election and subsequently? Yes, because we polled | :17:09. | :17:13. | |
in September, when we called Corbyn's victory more or less spot | :17:14. | :17:18. | |
on, and ask them what we think and the Labour Party membership now is | :17:19. | :17:22. | |
strongly against, 2-to-1 against bombing, but Labour voters are two | :17:23. | :17:31. | |
to one in favour of bombing, so you have got out there, in the Labour | :17:32. | :17:36. | |
Party out in the world, this contrast | :17:37. | :17:37. | |
Party out in the world, this has, and remember, it doesn't have | :17:38. | :17:40. | |
enough to form a Government, it will need to win over more people but the | :17:41. | :17:43. | |
Labour membership, they back the need to win over more people but the | :17:44. | :17:49. | |
party leader. So if you are like Jim Fitzpatrick, the MP who we have just | :17:50. | :17:53. | |
had on who is minded to vote with the Government | :17:54. | :17:54. | |
had on who is minded to vote with would argue there is a disconnect by | :17:55. | :18:00. | |
those people who are now Labour activists and the wider | :18:01. | :18:02. | |
those people who are now Labour community, in the sense of people | :18:03. | :18:05. | |
who vote Labour and the country at community, in the sense of people | :18:06. | :18:10. | |
large. There is a clear disconnect and it is not only on this issue, it | :18:11. | :18:13. | |
large. There is a clear disconnect is a whole range of other issues. | :18:14. | :18:14. | |
You find public like, for example, the | :18:15. | :18:19. | |
Government's public like, for example, the | :18:20. | :18:19. | |
like it, on the public like, for example, the | :18:20. | :18:28. | |
nationalisation. The people who voted the Jeremy Corbyn, | :18:29. | :18:33. | |
nationalisation. The people who Party electorate but if there was a | :18:34. | :18:38. | |
new leadership election today, the membership would vote | :18:39. | :18:42. | |
new leadership election today, the but people outside in the country | :18:43. | :18:43. | |
think very differently. But but people outside in the country | :18:44. | :18:47. | |
understand that Labour activists who are very much against the bombing in | :18:48. | :18:52. | |
Syria, they don't want, the data tells us, they don't want Mr Corbyn | :18:53. | :18:57. | |
to try do, to whip the Labour Party into line. They would be | :18:58. | :19:01. | |
to try do, to whip the Labour Party a free vote. He | :19:02. | :19:03. | |
to try do, to whip the Labour Party Dianne Abbott earlier, saying Labour | :19:04. | :19:04. | |
Party members Dianne Abbott earlier, saying Labour | :19:05. | :19:08. | |
Corbyn's position, that is right, but if you are going to | :19:09. | :19:11. | |
Corbyn's position, that is right, line of what Labour Party members | :19:12. | :19:13. | |
want, by an even bigger line of what Labour Party members | :19:14. | :19:17. | |
they oppose bombing, they want a free vote for all MPs to do what | :19:18. | :19:24. | |
they want, 70%. These figures really go to the heart of Labour's dilemma, | :19:25. | :19:29. | |
because we get told all the time by those who elected Mr Corbyn and that | :19:30. | :19:31. | |
he won by 60%, let him get those who elected Mr Corbyn and that | :19:32. | :19:36. | |
it, and there is huge Democratic those who elected Mr Corbyn and that | :19:37. | :19:39. | |
logic in that. The problem is the people who elected Mr Corbyn would | :19:40. | :19:43. | |
seem not to be that representative not only of the country | :19:44. | :19:45. | |
seem not to be that representative but of the 9 million people who | :19:46. | :19:49. | |
voted Labour at the last election. That is right, that is why Labour is | :19:50. | :19:54. | |
in so much difficulty, and polling 27%. The Tories have a 15 point | :19:55. | :19:56. | |
lead. 27%. The Tories have a 15 point | :19:57. | :20:00. | |
legitimately got a feeling they are responsible to the people who | :20:01. | :20:03. | |
elected them in May, they have a personal mandate from their voters | :20:04. | :20:08. | |
and four Corbyn to say my mandate from this very small number of | :20:09. | :20:14. | |
people, 300 - 400,000 people there in the Labour Party trumps your | :20:15. | :20:16. | |
responsibility to the 9 million people who voted Labour just doesn't | :20:17. | :20:23. | |
wash. If it responds entirely to fit a lectureship -- it electorate | :20:24. | :20:31. | |
should, it will be a small party, it needs to respond to the people who | :20:32. | :20:35. | |
voted for it. The Conservatives may well find themselves in the same | :20:36. | :20:37. | |
position over Europe, where the party membership is in a very | :20:38. | :20:39. | |
different place to Conservative voters. It is across the western | :20:40. | :20:45. | |
world, with, on the whole, declining party memberships. Labour's is up on | :20:46. | :20:49. | |
the last few months but way down from what it was 30 or 40 years ago. | :20:50. | :20:54. | |
Increasingly, you get the obsessives, look at the tea party | :20:55. | :20:57. | |
Republicans in the States. It is a problem with parties across the | :20:58. | :21:02. | |
Western world, a disconnection with the activists and the wider | :21:03. | :21:06. | |
electorate in all countries. The answer would be that if everybody | :21:07. | :21:10. | |
who was concerned about the future of the Labour Party now joined it in | :21:11. | :21:14. | |
order to swamp the is, but people would rather stay home and watch TV | :21:15. | :21:21. | |
-- the Corbyn followers. And what is wrong about? It is a wider | :21:22. | :21:24. | |
phenomenon and all the more interesting than that. | :21:25. | :21:25. | |
In his Autumn Statement and Spending Review delivered on Wednesday, | :21:26. | :21:28. | |
not just to pull a rabbit out of the hat, but a rabbit worth ?27 billion. | :21:29. | :21:40. | |
He announced that the Office for Budget Responsibility's forecasts | :21:41. | :21:42. | |
for the public finances showed a significant improvement | :21:43. | :21:44. | |
compared to their previous assessment in July. | :21:45. | :21:46. | |
The surprise extra money comes from a combination | :21:47. | :21:48. | |
and lower interest payments on the nation's debt. | :21:49. | :21:58. | |
Because interest rates are going to stay low for the foreseeable future. | :21:59. | :22:02. | |
VAT is now expected to magic up an extra ?11.5 billion by 2020-21 | :22:03. | :22:06. | |
after the OBR decided its previous forecasts were too pessimistic. | :22:07. | :22:10. | |
The Government also expects to get more money | :22:11. | :22:16. | |
from National Insurance Contributions and Corporation Tax. | :22:17. | :22:20. | |
So the Chancellor is set to borrow ?8 billion less | :22:21. | :22:24. | |
over the next five years than he planned to in July, | :22:25. | :22:31. | |
over the next five years than he planned to in July. | :22:32. | :22:33. | |
Despite waving his magic wand to increase capital spending, | :22:34. | :22:36. | |
reverse cuts to tax credits and protect the overall police budget, | :22:37. | :22:39. | |
Add to defence, almost everything that moved, he is able to spend | :22:40. | :22:44. | |
more. And I'm joined now by the man who | :22:45. | :22:45. | |
found all that extra cash Chairman of the Office for | :22:46. | :22:48. | |
Budget Responsiblity, Robert Chote. When did you discover that there was | :22:49. | :23:00. | |
more than we thought? Well, gradually over the period running up | :23:01. | :23:06. | |
to the forecast. The largest single contributor to this ?27 billion, | :23:07. | :23:09. | |
which we should remember is just a quarter of 1% of GDP, it doesn't go | :23:10. | :23:13. | |
as far as we used to -- it used to when we were young, is lower debt | :23:14. | :23:19. | |
interest. Because the bank said lower interest rates for the | :23:20. | :23:22. | |
foreseeable future, it doesn't cost much to service our debt? That is | :23:23. | :23:26. | |
part of it and simply, the rates on the financial market at which the | :23:27. | :23:29. | |
Government can borrow are lower than they were in July, so all you need | :23:30. | :23:34. | |
Reuters screen and an abacus to know that but it was apparent everybody | :23:35. | :23:38. | |
as we went along. The Bank of England thing would have been harder | :23:39. | :23:41. | |
for people to calculate in advance. But you have adjusted your model as | :23:42. | :23:45. | |
well, the model you use for forecasting tax revenues | :23:46. | :23:47. | |
underestimated what tax revenues would be? In a couple of areas. On | :23:48. | :23:53. | |
the VAT one, these are both situations in which the models were | :23:54. | :24:01. | |
being used before the OBR existed. The one for VAT in particular, as | :24:02. | :24:05. | |
the public spending cuts have mounted, that has started to show us | :24:06. | :24:10. | |
over estimating the amount that is deducted from VAT because of the | :24:11. | :24:14. | |
flows within Government, so that becomes apparent, so we flagged that | :24:15. | :24:18. | |
in October and said it was likely to improve the position by about ?3 | :24:19. | :24:24. | |
billion at the end of the forecast. But did you adjust your projections | :24:25. | :24:28. | |
for tax revenues without knowing what was happening to tax revenues | :24:29. | :24:34. | |
in this financial year in particular? Because of weak tax | :24:35. | :24:38. | |
revenues, the deficit in October was the worst since 2009. Yes, we don't | :24:39. | :24:46. | |
get prerelease access to the actual release that comes out on the day, | :24:47. | :24:49. | |
but all of the raw material that goes into that from the HMRC, we | :24:50. | :24:56. | |
have most of that, so if we had that release, the forecast wouldn't have | :24:57. | :24:59. | |
looked... It wouldn't have changed, even though the most recent evidence | :25:00. | :25:05. | |
we have, it suggests that even as the economy grows by other two and a | :25:06. | :25:08. | |
half percent this year, the tax revenues have actually been weaker | :25:09. | :25:13. | |
than forecast, you have still adjusted the forecast to have | :25:14. | :25:18. | |
stronger tax revenues on the year is out. You are judging it is weaker on | :25:19. | :25:24. | |
the performance of the year-to-date extrapolating that. There are a | :25:25. | :25:28. | |
number of reasons why we would expect the deficit to four passed at | :25:29. | :25:31. | |
the end of the year than the beginning. For example, there have | :25:32. | :25:34. | |
been measures that will boost self-assessment for tax revenue that | :25:35. | :25:40. | |
will come in in January. There is a change in Stamp Duty which changes | :25:41. | :25:43. | |
the year on year profile which will look better because the Stamp Duty | :25:44. | :25:47. | |
policy came in in December, in the fourth quarter of the year. There | :25:48. | :25:51. | |
are numbers that the Office for National Statistics have said it is | :25:52. | :25:55. | |
going to put into the back data that we have put into the forecast, but | :25:56. | :25:59. | |
they will take time to put it into the back data. There are also the | :26:00. | :26:03. | |
Government announced spending cuts within this year in June which had | :26:04. | :26:09. | |
not yet shown up in the numbers, so for a whole set of those reasons, we | :26:10. | :26:11. | |
think the year-on-year comparison will look better in the fourth | :26:12. | :26:14. | |
quarter of the year than it does in the first three. That said, there is | :26:15. | :26:18. | |
always considerable uncertainty. The average error for forecasting the | :26:19. | :26:22. | |
budget in this part of the year is half a percent of GDP, twice the | :26:23. | :26:27. | |
size of the rabbits you referred to. When did you inform the Chancellor | :26:28. | :26:31. | |
that he had this unexpected windfall? Some of it would have been | :26:32. | :26:34. | |
obvious to anybody looking at the path of interest rates. But when did | :26:35. | :26:40. | |
he realise there would be ?27 billion more in the OBR projections | :26:41. | :26:45. | |
compared with July? As we say in the document, we hand the final | :26:46. | :26:49. | |
pre-measures forecast, ie what would happen if he sat on his hands and | :26:50. | :26:53. | |
did nothing, on November nine. So he had some advanced notice that the | :26:54. | :26:59. | |
fiscal position gave him a bit more wiggle room than he had beforehand? | :27:00. | :27:05. | |
That is right and then the moving parts stopped moving and he had a | :27:06. | :27:09. | |
clearer picture by mid-November. Although this is not a matter to | :27:10. | :27:14. | |
you, are you surprised that he spent most of this 27 billion? I mean, if | :27:15. | :27:21. | |
you were repairing the roof while the Sun was shining, wouldn't you | :27:22. | :27:25. | |
put some of this away for a rainy day? As you say, that is in my | :27:26. | :27:29. | |
judgment to make. He has a target to balance the budget in 2019-20 and on | :27:30. | :27:35. | |
the policies he has announced that the moment, we think he has a margin | :27:36. | :27:39. | |
of about ?10 billion. If you look at the average size and distribution of | :27:40. | :27:43. | |
forecasting errors over the last 25 years or so, that suggest about 55% | :27:44. | :27:48. | |
chance of forecasting errors over the last 25 years or so, that | :27:49. | :27:52. | |
suggest about 55% chance he has to decide how big a cushion he once | :27:53. | :27:56. | |
when setting out spending plans for a number of years. Assuming no | :27:57. | :28:02. | |
external shocks to the economy, which none of us can predict. Lucky, | :28:03. | :28:04. | |
Lucky Chancellor. He is also taking an immense gamble. Robert is a | :28:05. | :28:09. | |
brilliant economist but the one thing that trumps the OBR's | :28:10. | :28:12. | |
projection so far is they have all been optimistic and all been wrong, | :28:13. | :28:16. | |
so for the Chancellor to base all of his spending decisions today on the | :28:17. | :28:22. | |
assumption that in four years' time inflation, growth, jobs and economy | :28:23. | :28:26. | |
and taxation receipts will all be the same as the OBR expect now is | :28:27. | :28:30. | |
fantasy politics. But he will adjusted as he goes on. He will, but | :28:31. | :28:35. | |
he was able to jump out of this hole on the basis of hope. Forecast in | :28:36. | :28:38. | |
the economy is more complicated than forecasting what is -- less | :28:39. | :28:43. | |
complicated than forecasting what is going to happen in Syria, but it is | :28:44. | :28:51. | |
still difficult. Thank you. We will be back on Sunday with a Sunday | :28:52. | :28:54. | |
Politics as the countdown to that Syrian vote gathers pace, 11 o'clock | :28:55. | :28:58. | |
Sunday morning, the by. -- goodbye. | :28:59. | :29:01. |