22/03/2016 House of Commons


22/03/2016

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on HPV, and we're looking at it in detail to see how we take it

:00:00.:00:00.

forward. We must now move on. Point of order, Mr Pat McFadden.

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I wonder if I could ask you if there have in any discussions on the

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terrible unfolding event in Brussels. We do not know the facts,

:00:26.:00:29.

but a number of innocent people have been killed. We do not yet know if

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there are any British victims, but there will be many families and just

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to find news of relatives, and I'm sure all sides of the House would

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welcome the opportunity to question the Prime Minister and the Home

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Secretary about the ongoing efforts of the police and security services

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here to protect the public in the UK from similar attacks. I thank him

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for his point of order and the terms on which he put it to me. As members

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present will know, condolences have expressed by members on both sides

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of the House to the fit them is of this terrible outrage, and to their

:01:17.:01:21.

loved ones, who will be living with the consequences. The short answer

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to him is that I have had no such discussions with any minister to

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date. I think it is a matter of public record that the Prime

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Minister has been chairing an important meeting of Cobra this

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morning, and I think also it will be accepted in all parts of the House,

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not least by the right honourable gentleman, that the Minister will

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come to the House to address these matters at such point as he feels he

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has the requisite level of information to impart to colleagues

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and is best placed to be informative and helpful. I think we should await

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the development of events. At the serious concern registered by him

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will be keenly felt across the House, and I thank again. Point of

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order, Bicester bill esters and folds up -- I understand that

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ministers will have the priority of working with our colleagues in

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Brussels and putting security in this country first. I have been

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contacted by a number of my constituents in Brussels, who

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travelled there today and are trying to get home. They have been told by

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Ryanair that it will cost them ?6,000 to be brought back to this

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country. I wondered if I can ask ministers if perhaps they might

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intervene and suggest to Ryanair and other carriers that all efforts are

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made to help people come back to this country in a reasonable way. I

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thank him for his attempted point of order. It is not a matter for the

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chair, but again he has raised a matter of real and immediate

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concern. That the real and immediate concern will have been heard on the

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Treasury bench, and knowing the ingenuity of the honourable

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gentleman, I feels sure that if he does not receive the assurance from

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an appropriate quarter, he will not rest on continuing to highlight his

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concern. On Friday the government were taken to the Supreme Court for

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failing to meet air quality standards resulting in 40,000 deaths

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a year at the cost of ?20 billion a year.

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The honourable gentleman has put his concerns on the record and they will

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have been heard. Doubtless he will return to this if he does not

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receive satisfaction. May I seek your advice and guidance on a matter

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of principle of this House. Select committees have the power through

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this House to obtain evidence to allow them to undertake their work.

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The Business, Innovation and Skills committee chair is taking evidence

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from the owner of sports direct, Mr Mike Ashley, on the treatment of his

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staff. Workers at his warehouse say they are not being paid the minimum

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wage. I have received correspondence from workers at sports direct to

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have told me that employees have the clock out but continued to work so

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that wages are not overbudget, staff being kept over one hour passed

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their finishing time, and workers finishing at 5am and being required

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back at work two hours later. We wish to question him on the review

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of working conditions that he would investigate personally. Last week

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the committee formally ordered him to attend after the refused our

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invitation. Yesterday he announced to the press that he has no

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intention of attending. I do not think that scrutinising reports like

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this are a joke. Has the committee acted in accordance with the

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procedures of this House? Could you also advise me what steps can now be

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taken to ensure that he complies with the very reasonable request of

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the Business Select Committee? I am grateful to the honourable

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gentleman. The chair of the Business, Innovation and Skills

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committee. The House delegates to nearly all its select committees the

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power to send her persons, papers and records. Each committee is free

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to decide whom to invite to give oral evidence, and if the invitation

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is refused, the committee may decide to make an order. In response to the

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honourable gentleman's question, it appears that the proper procedures

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have so far been followed. As long as the committee is acting within

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its terms of reference, the House expects its witnesses to obey the

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committee's order to attend. If, after due consideration, his

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committee wishes to take further action, the next step, which is to

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report to the House, setting out the facts. The honourable gentleman may

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then wish to apply to me to consider the issue as a matter of privilege,

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and to ask me to give it priority in the House. Under procedures agreed

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to buy the House in 1978, and set out on page 273, this application

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should be made to me in writing, rather than a point of order. I

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would then be happy to advise him on the options open to him. Point of

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order, Mr Dennis Skinner. This could be a long drawn-out process based

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upon what Mike Ashley has been doing and saying over the years. He

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operates 0-hours contracts with many it thousands of people. There are

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very few full-time people. He believes that he can do as he likes

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as a billionaire, but I put it on the record for you, Mr Speaker,

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you'd better that very firmly with the person concerned. There used to

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be a woman in the House call won called Mary Frampton, and we need

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one to deal with him. We have such a person! And I can say only that I

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shall always profit by the councils of the honourable gentleman. I do

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not know that there is more to add, but I will give him the benefit of

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the doubtful stop I have tried to treat this matter the early and

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factually, but I will take a point of order if he persists. I wish to

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ask simply this, in view of the obvious contempt of this person --

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content this person has shown, would it not be appropriate for him to

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appear at the bar of the House? There have been occasions in the

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past when this has occurred under House of Commons has shown it will

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not tolerate such content. Haps this could be considered.

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Very grateful to the honourable gentleman for his point of order,

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irregular eyes are historical precedents but it is only right for

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me to say that it is not for me to make any such decision. If we were

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to get to that point and I'm not suggesting that we shall do so, I'm

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not seeking to anticipate events, that would be a matter for the house

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to decide but I hope that I have dealt fairly, squarely and

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intelligibly the important matter that the chair of the select

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committee and others have raised. Perhaps we can now move to the ten

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minute rule motion. Thank you Mrs Bika, I beg to move

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that lead be given to bring in a bill to make provision about the

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skills and knowledge required of a person driving a taxi or private

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hire vehicle related responsibilities of taxi or private

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hire vehicle operators and service providers to require operators of

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taxi or private hire vehicle companies and service providers to

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hold specified types and levels of insurance to make provision about

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the tax liability of taxi or private hire vehicle companies and service

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providers and for connected purposes. I am grateful for the

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opportunity to present this bill and am delighted by the trends --

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strength of support from right Honourable members across the house,

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reflected in the attendance today. This is a bill that seeks to put

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fair competition and passenger safety at the heart of the taxi and

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private hire vehicle industry in London and across the country. The

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advent of new technology in the taxi and private hire industry is

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revolutionising the way that people are able to navigate our great C T

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stop indeed, it is revolutionising transport in cities across the

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United Kingdom and across the world. -- our great city. At the best,

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disruptive technology drives innovation and increases competition

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with enormous benefits for businesses and consumers alike. As

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we had seen on the streets of London, it also brings significant

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challenges. This bill seeks to address some of the challenges that

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have been neglected for far too long. The debate about the future of

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London's taxi industry has been unfairly characterised as a debate

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between those who support competition and innovation on one

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hand and those who want to cling to the past on the other. Mr Speaker,

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this is lazy and analysis. It is true that London's iconic black taxi

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trade is at risk and I would school is far too said that the threat to

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the blackcap trade is existential but the cabbies I represent aren't

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afraid of change and innovation, they are not afraid of you

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technology and the not of competition either. -- of new

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technology. They are finding it hard to compete in a changing marketplace

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with both hands tied behind their back. It is great to see even the

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chance like taking an interest in their plight. The Chancellor might

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need a taxi, Mr Speaker. I represent many black cab drivers, Ilford North

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was once known as Green badge Valley and still not unusual to see taxis

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parked on the banks of Woodford. I represent hundreds of minicab

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drivers and drivers who work for new market entrants like Uber. I use

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black taxis, particularly in central London and I also use minicabs and

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Uber locally. I welcome the choice and welcomed the benefit of

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competition but I also recognise that the explosion in the number of

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private hire vehicles in London presents regulatory challenges and

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risks for passengers. An investigation for LBC exposed the

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ease with which individuals can access a private hire licence

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without adequate insurers. We know that the number of vehicles are

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already on the road without appropriate insurers. Last year the

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Guardian was able to demonstrate how easy it was for an Uber to pick up a

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customer having provided fake insurance paperwork via its

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operating system. Some private hire vehicles are illegally applying for

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hire and heading, increasing the risk passengers getting into cars by

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unlicensed and unknown drivers with considerable risk to their safety.

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Mr Speaker, this is in legal practice and one for the regulator

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to act a lot harder on. Guide dogs UK found in a survey of assistance

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dog owners that 43.5% of respondents had been refused access to private

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hire vehicles and it is all too common or LGBT passengers to

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experience discrimination. Although I enjoy price competition as much as

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anyone else, is it really fair to expect cabbies to compete on fears

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while TEFL continue to put regulated fares or black taxis up while Uber

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can drive their prices down as profit shifting allows them to avoid

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paying their fair share of tax here in the UK. If we fail to act,

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London's iconic black taxis will be driven off our streets. This is bad

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for competition, bad for passengers and bad for London. This will

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proposes action in three areas to improve passenger safety and make

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competition fairer so our black taxi industry can continue continue to

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survive and thrive alongside other operators. Firstly, on the issue of

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training, live at hire vehicle drivers only undertake a rudimentary

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topographical test and in many cases do not undergo full training. This

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sees many relying on sat nerve which means the risk of collision is

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increased due to sharp braking or not focusing on the road ahead. This

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bill proposes that in order to or obtain a license, all drivers must

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complete an enhanced DVLA assessment requiring additional skills such as

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how to drop off and pick passengers up and wheelchair exercise is to

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learn how to support the disabled. PHP drivers should undertake an

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assessment on the principle of applying for hire and toting

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regulations so there can be no excuses for breaching regulations.

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The age of the driver should be properly and assessed and their

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obligations in the equalities act so that protected groups such as LB GT

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people and disabled people can travel with confidence. The second

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point of this bill seeks to address the issue of insurance, the current

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system requires higher and reward insurers for all drivers and the

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responsibility of insurance rests with drivers. There is a higher cost

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for this insurers which means many private hire vehicle drivers can be

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tempted to opt for a cheaper form of insurance when accepted by

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unlicensed operator. In order to resolve this issue, I propose moving

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to a system of operators ensuring that places the responsibility on

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operators as a pre-requisite for obtaining a licence, this would

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deliver three key benefits for passengers and industry are

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guaranteeing that cars managed by the operator have confidence that

:17:44.:17:48.

they are safe, reducing the cost of insurance through bulk purchasing

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and delivering better value for money and making the regulator 's

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case easier because checking a few thousand operators is easier than

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checking over 100,000 individual policies. Some companies such as

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Addison Lee already do this voluntarily which is why customers

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and businesses can book with the confidence that are sometimes

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lacking around five at hire operators. Only, my bill makes

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provision for tax liabilities for taxi and private hire vehicle

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companies, it cannot be right that some companies in this industry are

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making huge profits but not paying their fair share of taxes. Lower

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fares are great but some operators are frankly trying to drive their

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competition off the road through new applications by offering lower fares

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made possible by offshore tax arrangements, effectively robbing

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Peter to pay Paul. I would like to pay particular tribute to my right

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now friend member for Don Valley who brought her own ten minute rule

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motion forward for transparency for multinationals and her proposals

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would be a refreshing step in the right direction. This bill would

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introduce a requirement for the Chancellor or financial Secretary to

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the Treasury to make an annual steam into this has on the progress of the

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OECD -based erosion and profit shifting project and the action the

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government is taking to make sure the proper scrutiny in this area

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hopefully this Chancellor might be better at making progress in this

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area rather than his own targets. It would indicate the government needs

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to do much more to tackle tax avoidance and these changes would go

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some way to levelling the playing field. TEFL need to go further than

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the proposed. These challenges also exist in towns and cities across our

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country. Mr Speaker, Gwyneth Paltrow once said, it's our far more

:19:35.:19:41.

intelligent and civilised than Americans was that I love the fact

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you can hail a taxi and just pick up your pram and put it in the back of

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a cab without having to collapse it. Perhaps more profoundly, Professor

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John O'Keefe, a Nobel prize-winning unit neuroscientist said some of the

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best navigators in the world are London taxi cab drivers, they have

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delivered 25 Thousand St and how to get from one to the other. Mr

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Speaker, I'm sure the whole house will agree that Brits are more

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intelligent and taxi cab drivers are the best navigators in the world and

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they are also small business men and women providing a world-famous

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service and struggling to make sure that they or their families and make

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their families a good living. We owe them a chance to compete fairly and

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we owe it to our great capital city to ensure this iconic black taxi

:20:29.:20:33.

industry and that great iconic black taxi itself is not confined to

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London's history books. For these reasons and so many more, Mr

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Speaker, I commend this bill to the house.

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The question is the honourable member has leave to bring in the

:20:47.:20:49.

bill. I think the ayes habit. When Brown,

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Neal Coyle, John Pryor, five effort, Mr David Lambie, Kate also more,

:21:05.:21:12.

Joan Ryan, Gareth Thomas, Charles Walker and myself will bring in the

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bill. Taxi and private hire vehicle

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operators regulation Bill. Second reading what day? Friday 22nd April.

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We will proceed to read the orders of the day.

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The question is as on the order paper. Before I call the Chancellor

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of the Exchequer, I should inform the house that I have selected both

:22:12.:22:20.

amendments be and a, so both can be debated together with the budget

:22:21.:22:24.

motions today. With the leave of the house I will call the Shadow

:22:25.:22:28.

Chancellor to move amendment be after the Chancellor has opened the

:22:29.:22:32.

debate. At the end of the day's debate, the question will first be

:22:33.:22:38.

put on amendment be as long as time permits before 7pm, ice shall then

:22:39.:22:43.

call the honourable member for Dewsbury to move amendment A

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formally on the question on that amendment will be put, the house

:22:51.:22:54.

will then proceed to decide on the budget resolutions to open the

:22:55.:22:58.

debate, call the Chancellor of the Exchequer.

:22:59.:23:07.

Mr Speaker, let me start by offering all of our condolences to the

:23:08.:23:19.

victims and their families of the attacks in Belgium. The full details

:23:20.:23:23.

of this morning in an horrific attacks are still emerging but we

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know that at least 13 people died in the attack at Brussels airport and

:23:27.:23:31.

there are reports of multiple deaths at the metro station. As details of

:23:32.:23:35.

these events continue to unfold, my thoughts and prayers and indeed

:23:36.:23:38.

those of honourable and right on more members on all sides of the

:23:39.:23:42.

house with those who have lost loved ones or have been injured. This

:23:43.:23:46.

morning the prime Mr Cheddar meeting of Cobra, attended by the Home

:23:47.:23:51.

Secretary, myself and others. -- cheered a meeting. On a

:23:52.:23:54.

precautionary basis, the policing presence is being increased in key

:23:55.:23:58.

locations including transport hubs to protect the public and provide

:23:59.:24:01.

reassuring. In London, the Met police have the Clwyd additional

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officers and on the transport network and border force efforts

:24:07.:24:11.

have been intensified. The is still too soon to comment on the details

:24:12.:24:14.

of the attacks but the government would reiterate that the UK threat

:24:15.:24:19.

level remains at severe, meaning that an attack is highly likely. We

:24:20.:24:23.

urge the British people to remain vigilant and the Home Secretary will

:24:24.:24:27.

keep the house updated. Let's be clear, terrorist seek to threaten

:24:28.:24:31.

our values and our way of life and they will never succeed.

:24:32.:24:34.

Mr Speaker it is a reminder of what a precious thing our democracy is

:24:35.:24:41.

and this budget debate as part of that democratic process. This is the

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first time in 20 years that a Chancellor has spoken on the last

:24:47.:24:49.

day of the budget debate and I think it is fair to say we have had a

:24:50.:24:56.

lively debate about this budget. Let's be clear, the key principles

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behind this budget that if we are going to deliver a and compassionate

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society to the next generation, we have to live within our means, we

:25:06.:25:09.

have two back business to create jobs and we had to make sure work

:25:10.:25:14.

pays by putting more money into the pockets of working people. That is

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what we committed to in our manifesto, that is what the British

:25:19.:25:22.

people elected us to deliver on that is what this budget does and that is

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what we are going to vote on tonight.

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I will give way in a moment. Let me address the resignation of my right

:25:31.:25:40.

honourable friend the Member for Chingford and Woodford Green. I am

:25:41.:25:43.

sorry that he chose to leave the government, and let me recognise his

:25:44.:25:49.

achievements in helping to make work pay, protecting the vulnerable and

:25:50.:25:54.

breaking the decades-old cycle of welfare dependency. Together we had

:25:55.:26:00.

to confront a huge deficit, and uncontrolled welfare spending. Of

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course, there is always the bus discussion between the Treasury and

:26:05.:26:08.

spending department, when money needs to be saved. Where we do not

:26:09.:26:18.

get decisions right, I have always been prepared to listen and learn.

:26:19.:26:22.

But I am very proud that my right honourable friend and I worked

:26:23.:26:27.

together longer than any two people doing our jobs before us in any

:26:28.:26:31.

government, and we have been part of a team that has reduced the number

:26:32.:26:36.

of people on out of work benefits to levels not seen for 40 years. Seeing

:26:37.:26:44.

child poverty fall, pensioner poverty fall, and got a record

:26:45.:26:59.

number of people... I am grateful to the Chancellor for giving way. It is

:27:00.:27:03.

less than a week since he stood up in the budget and made the decision

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affecting disability payments, something which upset many hundreds

:27:08.:27:09.

of thousands of people across the country. He has made a welcome

:27:10.:27:16.

U-turn, but he should not -- should he not acknowledge it was a mistake

:27:17.:27:21.

he should apologise for? I am going to speak about their disability

:27:22.:27:25.

benefits, and I made it very clear, where we made a mistake, where we

:27:26.:27:30.

have got things wrong, we listen and learn. That is precisely what we

:27:31.:27:35.

have done. But where is the apology from the Labour Party for the things

:27:36.:27:43.

they got wrong? Why don't they take a leaf out of the book? Why do they

:27:44.:27:48.

not apologise for the countless decisions adding to the deficit but

:27:49.:27:54.

a drop in the country? The progress we have made on social justice did

:27:55.:28:01.

not happen by accident. It happened because in this government, we set

:28:02.:28:08.

out to turn round our economy, to control spending and bag business,

:28:09.:28:14.

and to reform welfare. That reform... I will give way in a

:28:15.:28:24.

moment. The D4 has meant difficult decisions to strengthen the

:28:25.:28:27.

incentives, to find work and the sanctions for not doing so. To make

:28:28.:28:33.

sure that extra that people work is rewarded, rather than seeing them

:28:34.:28:39.

trapped in dependency. The welfare system should be feared to those who

:28:40.:28:44.

need it handles who pay for it. It has not been easy. The in any

:28:45.:29:00.

democracy you have to fight to make lasting improvements in society,

:29:01.:29:04.

which is what we have done. I thank the Chancellor for giving way. I

:29:05.:29:09.

want to associate myself with his remarks about the situation in

:29:10.:29:12.

Brussels. Would he agree that the one thing more dangerous for the

:29:13.:29:15.

economy than him remaining Chancellor is that we might leave

:29:16.:29:21.

the European Union? Him being called out by his former colleague as

:29:22.:29:24.

acting not in the economic interests of the country, and acting in a

:29:25.:29:33.

short-term political way brings a risk on him and not for the future

:29:34.:29:38.

of our role in Europe. Will he resign? Could I remind members that

:29:39.:29:45.

interventions should be brief! We want to hear from both frontbenchers

:29:46.:29:50.

and we want to hear from dozens of backbenchers. Interventions, brief.

:29:51.:30:02.

It is like one of those things where I would prefer to be in the Council

:30:03.:30:06.

and not. Reforms we are making to the economy... I will give way. Is

:30:07.:30:16.

he aware that had the Chancellor stuck with Labour's plans for fuel

:30:17.:30:24.

duty, petrol would now cost 18p more than it actually does, and has he

:30:25.:30:29.

assessed the impact on the lowest earning people? He is absolutely

:30:30.:30:38.

right. If we had stuck with the fuel duty escalator that we inherited

:30:39.:30:41.

from the last government, it would cost much more to fill a car, much

:30:42.:30:52.

more for small businesses. Wheater -- we took action, because we are on

:30:53.:30:55.

the side of working people. I will give way. To put this debate in

:30:56.:31:04.

context, would he like to share with the House, in financial and

:31:05.:31:10.

non-financial terms, how much help this government since May 2010 has

:31:11.:31:16.

given to assist the second the disabled? I am coming on to talk

:31:17.:31:26.

about disability benefits, but he is right, to draw attention to the

:31:27.:31:29.

support we give, close to ?15 billion in support to disabled

:31:30.:31:36.

people, and that has gone up, when you just look at disability payments

:31:37.:31:43.

and DLA, from ?15 billion to ?16 billion today, and up to 18 billion

:31:44.:31:49.

in the future. As the new welfare secretary made clear, we will

:31:50.:31:56.

continue to give support to disabled people. Let me give way. He boasted

:31:57.:32:03.

that this was the first time a Chancellor had opened the final day

:32:04.:32:07.

of the budget debate. He will know that is because it is the first time

:32:08.:32:10.

that a Chancellor has had to drop the biggest revenue raiser in his

:32:11.:32:15.

budget within two days of announcing it. The Work and Pensions Secretary,

:32:16.:32:22.

who has just resigned, who he paid tribute to, described his budget is

:32:23.:32:27.

deeply unfair, drifting in the wrong direction that will divide the

:32:28.:32:30.

country, not unite it, and he said those words after the Chancellor

:32:31.:32:35.

announced he was ditching the PIP cuts. Is the former work and pension

:32:36.:32:47.

secretary deleted? I have done some research, and when she was the Chief

:32:48.:32:53.

Secretary to the Treasury, I wish we had seen a few more revenue raisers

:32:54.:32:58.

in budget, such as savings in welfare and public expenditure.

:32:59.:33:03.

During the period she was chief Secretary, the deficit went from ?76

:33:04.:33:10.

billion a year to 154 billion pounds. The measures my right

:33:11.:33:17.

honourable friend and I have been taking at the clean-up MS they left

:33:18.:33:31.

in government. -- to clean up the mess. These difficult changes are

:33:32.:33:36.

worthwhile. I will give way in a moment. Let me make progress. Okie,

:33:37.:33:44.

I will give way, I have said where we made a mistake we have listened

:33:45.:33:48.

and learned, when it is she going to apologise and say she made mistakes

:33:49.:33:51.

and her colleagues made mistakes during that period in government,

:33:52.:33:56.

which is what we have been cleaning up? The Chancellor did not address

:33:57.:34:08.

the issue about the unfairness of his budget. Will he address the

:34:09.:34:13.

issue of the revenue behind his budget? He has abandoned ?4.4

:34:14.:34:23.

billion in revenue raisers from his budget. Wave is the money going to

:34:24.:34:28.

come from or will he change the scorecard with which he set out? Al

:34:29.:34:32.

tell you what is unfair, to saddle the next generation with debts there

:34:33.:34:37.

is no way of paying off. That is what she did. I will come on

:34:38.:34:49.

specifically to disability benefits. But let me tell you about fairness.

:34:50.:34:54.

We have taken action which means half a million fewer children

:34:55.:34:59.

growing up in workless households, 1 million fewer people on out

:35:00.:35:03.

benefits. Over 2 million more people in work than when we came to office.

:35:04.:35:12.

That is the social office on the side of the House that I am proud

:35:13.:35:22.

of. The work we take takes further steps to improve this. Is action to

:35:23.:35:25.

reduce sugar intake and give children better health care. There

:35:26.:35:31.

is support for savings of lower-income families, more help and

:35:32.:35:33.

housing for homeless people. Personal allowance increases that

:35:34.:35:40.

left a million of the low paid out of tax credit altogether. There is

:35:41.:35:45.

an increased minimum wage ahead of the introduction of the first-ever

:35:46.:35:49.

national living wage into weeks, all in the budget we debate today, all

:35:50.:35:55.

the actions that are compassionate one Nation Conservative Vermont are

:35:56.:36:00.

determined to deliver social justice and economic security. The new

:36:01.:36:09.

Secretary of State for work and pension is yesterday in his first

:36:10.:36:13.

statement said that the government would not be making any further cuts

:36:14.:36:17.

to welfare during this parliament, but later he said there were no

:36:18.:36:21.

plans to make further cuts to welfare during this Parliament.

:36:22.:36:26.

Could the Chancellor confirmed for the sake of disabled people and

:36:27.:36:30.

others, that there will be no further cuts to the welfare budget

:36:31.:36:36.

in this Parliament? My right honourable friend said yesterday

:36:37.:36:43.

exactly what the plans where that there were no plans to make welfare

:36:44.:36:48.

savings beyond the savings legislated for two weeks ago, which

:36:49.:36:53.

we will focus on implementing. I will come on to address the specific

:36:54.:36:58.

issue of welfare savings and disability, but she could have got

:36:59.:37:01.

to her feet and thanked the government for delivering her flood

:37:02.:37:07.

defence schemes that she asked for her city and that were in the budget

:37:08.:37:14.

statement one week ago. Let me turn to the disability benefits. We are

:37:15.:37:17.

all proud that this government is giving more support to the most

:37:18.:37:23.

disabled people. While the reforms proposed two weeks ago drew on the

:37:24.:37:28.

work of an independent review, they did not command support. We have

:37:29.:37:36.

listened and they will not go ahead. The government is spending more than

:37:37.:37:40.

disabled people than the last Labour government ever did, and let me

:37:41.:37:57.

directly address what that means. First, over 3 million disabled

:37:58.:38:01.

people are now in work, 300,000 more than just -- a couple of years ago.

:38:02.:38:10.

The budget has risen, will continue to rise, and is much greater than

:38:11.:38:15.

the one we inherited. We will take time, listen and consult widely to

:38:16.:38:21.

build disability support which works better with health and social

:38:22.:38:25.

services. As my honourable friend said yesterday, we will continue to

:38:26.:38:30.

support disabled people and work with them to continue the work we

:38:31.:38:42.

do. Second, on the welfare gap, I will give way. Beer can only be a

:38:43.:38:45.

compassionate conservative government if we have a strong,

:38:46.:38:57.

stable economy... He is absolutely right, I am coming onto precisely

:38:58.:39:03.

that point. Let me deal with the measures we take to control spending

:39:04.:39:07.

and then I will take interventions. On the welfare cap, this is the

:39:08.:39:11.

instrument we have introduced to set out in a transparent way to

:39:12.:39:15.

Parliament what we aim to spend on welfare of the stop it is judged by

:39:16.:39:19.

the OBR every autumn, and that is when we have to comply with the cap

:39:20.:39:25.

or explain to Cabinet and the country why we have not done so. It

:39:26.:39:29.

is incredible to hear the party opposite protesting about the

:39:30.:39:33.

welfare gap. It has never existed under the devious government. Did is

:39:34.:39:42.

no control on the largest single area of transparency, no independent

:39:43.:39:45.

forecasts, and as a result welfare cost soared on the country was

:39:46.:39:51.

brought to the brink of bankruptcy. On Friday, a couple came to visit me

:39:52.:39:58.

at my surgery. He is in a wheelchair, unable to feed himself,

:39:59.:40:05.

dress himself, they let on 590 5p a month plus ?63 a week carers

:40:06.:40:10.

allowance. They still have a mortgage to pay and have a teacup --

:40:11.:40:15.

80 years of contributions between them. Will the Minister please

:40:16.:40:20.

apologise to these people for the distress?

:40:21.:40:24.

I have already said we're not going ahead with those changes. And I have

:40:25.:40:33.

addressed these issues. The truth is, that family and many others are

:40:34.:40:39.

getting increased support and this government and we would not be able

:40:40.:40:43.

to provide any of that unless we had a strong economy and controlled

:40:44.:40:47.

public spending because the people who suffer most... I apologise for

:40:48.:40:58.

interrupting. Order. Members are shouting from sedentary position is

:40:59.:41:04.

very nicely. If people put questions to the Chancellor, they must leave

:41:05.:41:10.

him to respond and the same will go to the government backbenchers

:41:11.:41:12.

challenging members from the opposition. Let us try to restore

:41:13.:41:16.

some order to this debate. The Chancellor...

:41:17.:41:28.

I think the Chancellor forgiving way, will he confirm that this

:41:29.:41:34.

government is spending ?2 billion more on support for the disabled but

:41:35.:41:38.

according to the ISS, inequality is at its lowest rate for 25 years and

:41:39.:41:43.

thanks to this government there are 2 million people more in work. Is

:41:44.:41:47.

that what we're doing for the vulnerable? My right honourable

:41:48.:41:53.

friend is right, more people in work, reduced inequality and

:41:54.:41:58.

poverty, or disabled people in work and we got a freeze on beer duty as

:41:59.:42:07.

well! Let me make some progress. By not proceeding with the PIP changes

:42:08.:42:12.

it means that spending on disabled people would be just over ?1 billion

:42:13.:42:16.

higher than by the end of the decade than set out in the budget. This

:42:17.:42:19.

will be an important factor but only one of many that will affect the

:42:20.:42:24.

overall forecast for welfare that the OBR will make in the autumn. The

:42:25.:42:31.

overall forecast, and at that point we shall assess the level of the cap

:42:32.:42:37.

and what my right honourable friend suggest today, with my full support,

:42:38.:42:40.

we will not have further plans to make further welfare savings to

:42:41.:42:45.

replace the ?1 billion more spent on PIP. We made substantial savings in

:42:46.:42:51.

the welfare reform and work act that has just passed through Parliament

:42:52.:42:57.

so we have legislated for ?12 billion a year of working age well

:42:58.:43:01.

first savings, that will be committed to in the manifesto and we

:43:02.:43:06.

shall focus on and lamenting that. Let me just say... About ten to

:43:07.:43:13.

pensioners because it has been raised. In the same breath, some

:43:14.:43:16.

people say that we are not saving enough from pensioners while at the

:43:17.:43:20.

same time complaining about everything from long-term increases

:43:21.:43:24.

in the state pension age to keep pace with rising life expectancy to

:43:25.:43:28.

restrictions on the left-hand allowances for the largest pension

:43:29.:43:33.

pots. The truth is, we have made substantial savings from pensioner

:43:34.:43:38.

welfare, half of ?1 trillion of savings and are vital to the vital

:43:39.:43:42.

that in ability of public finances and we have made these in a way that

:43:43.:43:47.

enables us to go on giving people who have worked hard for all of

:43:48.:43:52.

their lives a decent, generous, basic state pension that we

:43:53.:43:55.

committed to in our manifesto and I am not going to take that away from

:43:56.:44:05.

people. Would he accept that very people spend a higher proportion, if

:44:06.:44:09.

not all, of their income and richer people save it so in his budget,

:44:10.:44:12.

which is transferred money from April the rich, he is like a Sheriff

:44:13.:44:22.

of Nottingham budget. Does it accept that will undermine growth and

:44:23.:44:29.

deficit reduction, morally and economically, that is wrong? Under

:44:30.:44:35.

this government the richest 1% are paying a higher proportion of income

:44:36.:44:42.

tax than any single -- than in any single year of the last Labour

:44:43.:44:44.

government that he would support as a Member of Parliament for Croydon

:44:45.:44:48.

until he was replaced by a veteran Member of Parliament for Croydon! --

:44:49.:44:57.

better. I will say this and takes a more interventions later. Let me

:44:58.:45:03.

turn to the numbers. I do find it ironic to get all of these

:45:04.:45:06.

expressions of concern from members opposite about making things add up

:45:07.:45:10.

when they decided over the biggest single fiscal fiasco in the history

:45:11.:45:15.

of the country and they had a black hole any current plans so large it

:45:16.:45:19.

would break the Large Hadron Collider. That is the truth about

:45:20.:45:25.

them, the central fiscal judgment of the government is clear, borrowing

:45:26.:45:36.

has been cut... From ?155 billion when it came to office ?255 billion

:45:37.:45:43.

next year, it falls every year, higher spending on disability will

:45:44.:45:46.

be reflected in the Autumn Statement forecast and we do not propose to

:45:47.:45:49.

make any further changes ahead of that. These are the changes you can

:45:50.:45:55.

afford to absorb when you are getting public spending under

:45:56.:45:58.

control so we can make these changes and still achieve a sensible surplus

:45:59.:46:08.

of 0.5% of GDP by 19 -- 2019. In short, we go on delivering the

:46:09.:46:11.

economic security that this country elected us to provide. I am grateful

:46:12.:46:16.

to my right honourable friend. Talking of Labour fiascoes, what

:46:17.:46:21.

about the 10p tax fiasco from Gordon Brown? Taking the lowest paid

:46:22.:46:31.

workers out of tax altogether! My right honourable friend is right,

:46:32.:46:36.

what a contrast, we turned 10p into zero. As we raise the personal

:46:37.:46:42.

allowance. And of course, these improvements, I will give way to my

:46:43.:46:49.

right honourable friend. If it has been so simple to absorb this

:46:50.:46:55.

change, why on earth did he put it in the first place and frighten the

:46:56.:47:01.

life of disabled people? People are terrified about what has been

:47:02.:47:05.

proposed and you have just said we can absorb this easily. While earth

:47:06.:47:13.

do it in the first place? -- why on earth. If you take the decisions to

:47:14.:47:17.

control expenditure, you destroy the finances and the people who suffer

:47:18.:47:20.

are precisely the most honourable in society. Yes, we have taken

:47:21.:47:26.

difficult decisions and where we have not got the right, we have

:47:27.:47:30.

listened and learned but if we had not taken all of these decisions the

:47:31.:47:33.

country would be in an even bigger mess than the one we inherited. I

:47:34.:47:38.

will take the member from the Scottish and lasts and then make

:47:39.:47:45.

progress. -- nationalists. He mentions security. He mentions the

:47:46.:47:53.

security of the poor. Does he not realise that until Monday, 340,000

:47:54.:48:00.

people on PIP were worried that their benefits were going to be cut?

:48:01.:48:05.

If you just apologised and change, we could move on and discuss

:48:06.:48:11.

economics. I could not have been clearer, we have listened and

:48:12.:48:13.

learned and made a mistake and withdrew those proposals. He talks

:48:14.:48:21.

about... On Thursday, it'll be the day when separated from the UK if

:48:22.:48:27.

the nationalists had their way. They would have plunged the country into

:48:28.:48:32.

a fiscal crisis likes of which few Western countries have ever seen.

:48:33.:48:40.

And they would have been impoverished Scottish people and

:48:41.:48:43.

driven business away, they based their numbers on oil forecasts that

:48:44.:48:47.

were fanciful and it is time they apologised for leading the Scottish

:48:48.:48:52.

people down that potential trap. Thankfully, the Scottish people saw

:48:53.:49:01.

better. Let me make some progress. We have taken difficult decisions to

:49:02.:49:05.

control public expenditure, costs and reduce the crippling deficit. We

:49:06.:49:09.

took more decisions last week. I will give way to my right honourable

:49:10.:49:14.

friend. I will explain what we have done to clear up this mess. More

:49:15.:49:21.

decisions in the budget. We also have lamented decisions today to

:49:22.:49:23.

make sure the work of reducing the deficit is done fairly and we ask

:49:24.:49:27.

more from the well-off. Look at the measures. On dividends, lifetime

:49:28.:49:33.

pension allowances, stamp duty on second property, banks and hedge

:49:34.:49:38.

funds is and a host of measures to tackle aviation and avoidance. The

:49:39.:49:43.

ISS, which has been quoted a lot, says... The head said this... Be

:49:44.:49:53.

very highest earners have seen significant tax increases and that

:49:54.:49:56.

has been a reasonable thing to ask of the most well-off when faced with

:49:57.:50:01.

such a budget deficit because we're all in this together. I am grateful

:50:02.:50:11.

to my right honourable friend. On the question of personal economic

:50:12.:50:14.

security, during his statement, my constituent, Dan, from Addington,

:50:15.:50:22.

tweeted that this lifetime I get one? Does this demonstrate that

:50:23.:50:27.

young people around the country see opportunity in this budget? An

:50:28.:50:33.

opportunity to save, an opportunity for their generation. My right

:50:34.:50:41.

honourable friend is right to raise the concerns of his constituent

:50:42.:50:46.

about where he can get hold of the new lifetime icer, it will come in

:50:47.:50:50.

from April but he can open a Help To Buy 19, rule into that, keep the

:50:51.:50:55.

government bonus and then choose about saving for his home by saving

:50:56.:51:00.

for his pension and not have to face the agonising choice that summary

:51:01.:51:03.

people have faced in the choice of a crew in the past. I will give way...

:51:04.:51:12.

I will make some progress and then takes a more interventions. It is a

:51:13.:51:21.

classic socialist illusion to think you can solve all of society 's

:51:22.:51:26.

problems with taxes on the rich. The age-old excuse for not managing

:51:27.:51:29.

public spending were welfare costs and this brings me to a central

:51:30.:51:35.

point I wish to make to the House today. There is no inherent conflict

:51:36.:51:40.

between delivering social justice and the savings required to deliver

:51:41.:51:47.

sound finances. They were one and the same thing. Without sound public

:51:48.:51:51.

finances, there is no social justice. Of course, I will give way

:51:52.:52:03.

in a moment to the taxi business... Let me say this... Without sound

:52:04.:52:10.

finances there is no social justice and of course, Mr Speaker, it is the

:52:11.:52:14.

easiest thing in the world to do this job and so, yes, to every new

:52:15.:52:19.

demand for government spending and pleasing all the people all the time

:52:20.:52:23.

but we know where this leads, because we had a chance before me

:52:24.:52:29.

who spent a decade going around the country saying yes to even more

:52:30.:52:32.

spending, yesterday even higher welfare bills and yes, we know what

:52:33.:52:37.

happens then. It brought other country to the brink of collapse. --

:52:38.:52:43.

brought this country. It was economic cruelty and that price for

:52:44.:52:48.

the people, they were the people who always pay the price when spending

:52:49.:52:52.

is out of control and Welfare Bill 's spiral, it was not the

:52:53.:52:56.

politicians at the time he pay that price, although they're happy

:52:57.:53:00.

sitting on the benches opposite... It was the poorest who paid the

:53:01.:53:02.

price. And the most foldable suffered. These are the people who

:53:03.:53:08.

lost their jobs and had their livelihoods snatched from them.

:53:09.:53:12.

These are the people I am fighting for, decent, hard-working people.

:53:13.:53:18.

Not numbers on a spreadsheet. But people whose lives would be

:53:19.:53:20.

impoverished and hopes and aspirations would be crushed if we

:53:21.:53:24.

had gone on spending more and more than the country earns. Getting

:53:25.:53:28.

things right for these people is what I am all about. And it weighs

:53:29.:53:33.

in every decision I have taken as Chancellor over the last six years.

:53:34.:53:37.

These are the people we in this party have been elected to serve. He

:53:38.:53:47.

rightly talks about learning lessons but it is also important that we

:53:48.:53:51.

have clarity about the future. The government line seems to be that

:53:52.:53:55.

there are no plans to further reduce the welfare budget but yesterday,

:53:56.:53:59.

the new Secretary of State said in this House, we will not be seeking

:54:00.:54:03.

alternative offsetting savings and the government will not be coming

:54:04.:54:07.

forward with further proposals for welfare savings. Wetherby any

:54:08.:54:13.

further welfare cuts or not? What is the answer? He has not offered any

:54:14.:54:19.

clarity. That is exactly the position set up by my friend. We

:54:20.:54:26.

understand that if you do not control spending, then you have a

:54:27.:54:31.

fiscal crisis, and because we're controlling spending and we have

:54:32.:54:36.

passed welfare legislation in recent months, we have got the deficit

:54:37.:54:39.

coming down and we're delivering economic Secretary for people. I

:54:40.:54:45.

think the Chancellor. Given what he said about the importance of fiscal

:54:46.:54:49.

responsible at it, will he confirm that had he listened to the advice

:54:50.:54:51.

of the party opposite in the last five years national debt would be

:54:52.:54:59.

?900 billion higher? My right honourable friend is right. The

:55:00.:55:04.

analysis shows that if we had not taken the decision is to reduce the

:55:05.:55:08.

structural deficit, it would have added ?1 trillion further to the

:55:09.:55:12.

national debt, proof you can never trust Labour with the nation 's

:55:13.:55:13.

public finances. I give way to my honourable friend.

:55:14.:55:23.

Would he agree with me that members of this side will not take lectures

:55:24.:55:29.

in fiscal management from the party office it? 13 years in government,

:55:30.:55:39.

then an old saying no money left. She is right, a letter saying, I am

:55:40.:55:46.

sorry, there is no money left. After 13 years of a Labour government,

:55:47.:55:53.

that was the summary of the economic achievement. Let me make a little

:55:54.:55:58.

progress then give way. We will go on driving down the budget deficit,

:55:59.:56:07.

down from borrowing ?1 on every four macro, then onto security and good

:56:08.:56:12.

times of a budget surplus. A country earning more than it spends, but

:56:13.:56:17.

does not pass on debts to its children and grandchildren. We

:56:18.:56:21.

committed to this, we were elected to do this, and it is what the

:56:22.:56:27.

budget delivers. Let me turn to the measures in the budget, again I

:56:28.:56:33.

completely refute those on the other side who say that there is a choice

:56:34.:56:37.

between backing business and promoting social justice. You cannot

:56:38.:56:43.

have social justice without a strong economy. And you cannot have a

:56:44.:56:49.

strong economy unless you have a tax system that backs business and

:56:50.:56:58.

enterprise. I will give way. Is it not the case that when you inherit

:56:59.:57:03.

an unprecedented budget deficit like we did, it is not just about

:57:04.:57:07.

controlling spending. The country has too earned more. And the only

:57:08.:57:12.

way to do that is to cut corporation tax, capital gains tax, so

:57:13.:57:16.

entrepreneurs can go out into the world on their own this country what

:57:17.:57:26.

it needs. He is right. Without a strong economy you cannot have

:57:27.:57:28.

social justice, and you cannot have a strong economy without successful,

:57:29.:57:41.

vibrant businesses. He spoke a lot about the next-generation. One thing

:57:42.:57:46.

he said last week which was welcomed by many young people in Southampton

:57:47.:57:51.

and across the South was to back the new Children's Hospital with ?2

:57:52.:57:55.

million of matched funding. That is what looking after the next

:57:56.:57:59.

generation looks like, and can I just say on the half of many people

:58:00.:58:04.

across the South, thank you. My honourable friend campaigned for the

:58:05.:58:09.

extra money for the hospital in Southampton. He raised it countless

:58:10.:58:14.

times in the chamber, and it shows that if you persevere, you have a

:58:15.:58:21.

government that listens to you and delivers to you. Let me make a

:58:22.:58:27.

couple of more points and then I will take an intervention. Yesterday

:58:28.:58:33.

the Leader of the Opposition stood and replied to my right honourable

:58:34.:58:38.

friend the Prime Minister, and people have focused on what he

:58:39.:58:45.

failed to save. I am focused on what he said, we should not be reducing

:58:46.:58:50.

taxes on business. He thinks the answer to the challenge of low

:58:51.:58:56.

productivity is that taxes on business should be higher. I totally

:58:57.:59:01.

disagree. That is Labour's answer these days. Increase the basic rate

:59:02.:59:08.

of income tax on working people, as they propose in Scotland, and again

:59:09.:59:15.

the price would not be paid by those opposite, it would be paid by young

:59:16.:59:17.

people who cannot get jobs in countries where business taxes are

:59:18.:59:23.

too high, and enterprise is stifled. It would be paid by people who work

:59:24.:59:28.

in public services whose resources would be drained as the economy

:59:29.:59:31.

became more and more uncompetitive. It would be paid by the country as

:59:32.:59:36.

living standards declined and the nation became poorer. If that is the

:59:37.:59:46.

budget you want, vote in the division lobby tonight. But if you

:59:47.:59:50.

want one that takes 6000 businesses out of business rates, reforms

:59:51.:59:57.

commercial tax, that is the budget we are voting on tonight. If you

:59:58.:00:01.

want and enterprise budget that this investment in our small and medium

:00:02.:00:08.

firms, dramatically reduces burdens on vital oil and gas industry, and

:00:09.:00:14.

gives us the lowest headline business tax rates of any

:00:15.:00:16.

competitors, that is the budget we are voting on tonight. And if you

:00:17.:00:23.

want a one Nation budget but increases the resources for

:00:24.:00:27.

education, supports children's health care, the volts power across

:00:28.:00:34.

our nation, builds infrastructure for the future, that is the budget

:00:35.:00:39.

we are voting on tonight. And if you want budget working people that

:00:40.:00:45.

helps save for the future, freezing there fuel duty, cuts income tax or

:00:46.:00:48.

they keep more money that they are, that is what we are voting on

:00:49.:00:53.

tonight, a budget that delivers security, the health of the

:00:54.:00:56.

next-generation, and that backs working people. It is a passionate

:00:57.:01:01.

Conservative budget, and I ask the House to support it tonight.

:01:02.:01:04.

CHEERING Order, I shall now call the Shadow

:01:05.:01:31.

Chancellor to respond to the Chancellor and to move amendment be.

:01:32.:01:52.

Mr John McDonnell. Mr Speaker, I and my party share the sentiments

:01:53.:01:54.

expressed by the Chancellor Randles across the House, in condemnation of

:01:55.:01:58.

what happened in Brussels today. Our thoughts and prayers are with the

:01:59.:02:04.

Vic in Zambia families. We support the security measures taken by the

:02:05.:02:07.

government, and we say to the people of Alger, we stand with you, we

:02:08.:02:17.

stand with you. I wish to move amendment B. I am glad to see the

:02:18.:02:21.

Chancellor turned up at the least today. In my view, and I believe

:02:22.:02:35.

that of many others, I believe the behaviour of the Chancellor over the

:02:36.:02:40.

last 11 days calls into question his fitness for the office he now holds.

:02:41.:02:49.

Shouting . I also believe it calls into

:02:50.:03:01.

question his fitness for any leading office in government. What we have

:03:02.:03:09.

seen is not the actions of the Chancellor, a senior government

:03:10.:03:17.

minister, but the grubby, incompetent actions of Chancellor.

:03:18.:03:32.

Let's go back to last Friday week. The Chancellor personally forced to

:03:33.:03:35.

cuts in Personal Independence Payment is. A statement issued by

:03:36.:03:40.

the government that Freddie on the IPs was not a consultation. It was

:03:41.:03:47.

not a suggestion, it was a statement of policy -- PIPs. Personal

:03:48.:03:52.

Independence Payment are the benefits that for many disabled

:03:53.:03:58.

people actually make life worth living. They help them get to work,

:03:59.:04:07.

they help them have some normality in their lives. And they often keep

:04:08.:04:14.

them out of residential care. The Chancellor was willing to cut away

:04:15.:04:17.

this vital support to some of the coolest and most disadvantaged

:04:18.:04:26.

members of our community. Do not tell us we are all in this together.

:04:27.:04:37.

Disability groups... Give way. Wouldn't you help to dispel the

:04:38.:04:42.

impression that the Chancellor is acting in his own political

:04:43.:04:44.

interests rather than in the national economic interest. If he

:04:45.:04:50.

had made clear today that he was not going to stand in the leadership of

:04:51.:04:56.

the Tory party but in order to concentrate on his job as Chancellor

:04:57.:05:05.

of the Exchequer. The reason I referred back to fitness for office

:05:06.:05:15.

is because many of us know the distress this has been caused to so

:05:16.:05:24.

many people over the last week. He makes a very personal point about

:05:25.:05:29.

fitness for office on a day of major terrorism attack. Will he withdraw

:05:30.:05:34.

his previous support for terrorist organisations that have attacked

:05:35.:05:44.

this country? Mr Speaker, you heard me share the sentiments of the House

:05:45.:05:50.

on the issue of Belgium. To bring that into the debate as a political

:05:51.:05:55.

point at this stage is an acceptable. Order. Order. Order. I

:05:56.:06:07.

made it clear earlier that attempts to shout down the Chancellor were

:06:08.:06:13.

unacceptable. That was made very clear. I do not think anybody would

:06:14.:06:20.

doubt or deny it. I make similarly clear that no attempt in this

:06:21.:06:25.

chamber will be successful if it is an attempt to shout down the Shadow

:06:26.:06:33.

Chancellor. Get the message, it will not happen. On the Friday before

:06:34.:06:40.

last, disability groups were outraged. The Multiple Sclerosis

:06:41.:06:47.

Society, the Parkinson Society, disability rights, why? Because all

:06:48.:06:53.

of them, like many of us, had gone through the process of agreeing the

:06:54.:06:58.

criteria, at least coming to some compromise on what would actually

:06:59.:07:01.

constitute the criteria for access to this benefit. But the Chancellor

:07:02.:07:10.

moved the goalposts. Those already agreed through consultation,

:07:11.:07:15.

disabled people and their families, have been sick with worry about the

:07:16.:07:19.

threats to their benefits. I will give way. He has called into

:07:20.:07:25.

question the morality of the leadership of my right honourable

:07:26.:07:28.

friend. Would he please discuss with the House the morale of the that

:07:29.:07:35.

allows him to stand with bombers who murdered my friends in Northern

:07:36.:07:38.

Ireland and question the Chancellor? Order! Order! Before we proceed

:07:39.:07:50.

further, perhaps I could say to the House, and I do so on my own

:07:51.:07:55.

account, but also on the basis of sound procedural advice, we must

:07:56.:08:03.

stick to the matter of the budget. I do not require any comeback or

:08:04.:08:09.

comment, agreement or disagreement. Let us proceed in a seemingly matter

:08:10.:08:15.

with the debate. Batters in the interests of the House, and it is

:08:16.:08:20.

what the country has a right to expect. This is a challenge to the

:08:21.:08:28.

judgment of the Chancellor. I give way. During the Chancellor's opening

:08:29.:08:34.

speech, we heard them say that the government will make savings in the

:08:35.:08:44.

welfare budget, which means 4.4 billion regarding PIPs was in

:08:45.:08:50.

addition. It shows this government is mean minded, and prepared to

:08:51.:08:55.

attack people with disabilities, and it is not necessary to make these

:08:56.:08:58.

cuts in welfare and they should give a guarantee that they will not

:08:59.:09:04.

return with this cut. The proposals that came forward did not just shock

:09:05.:09:08.

us at this side of the House, it shocked many members across the

:09:09.:09:20.

House for the brutality. There is scheduled to be a 6% real terms

:09:21.:09:27.

decline on spending on disability benefits between 2015 and 2020. When

:09:28.:09:32.

it came after that Friday, to the Wednesday of the budget, we

:09:33.:09:36.

discovered that these cuts to disabled people were being made to

:09:37.:09:44.

pay for capital gains tax cuts, benefiting the richest 5% in

:09:45.:09:49.

society. And four corporation tax cuts as well. Of course there was a

:09:50.:09:55.

deep feeling of unfairness in this House on all sides. And I welcome

:09:56.:10:03.

the right honourable member for Chingford and Woodford Green's

:10:04.:10:06.

expression of concern during that period. His conversion to our cause

:10:07.:10:15.

of opposing these benefit cuts. At the first person to call to question

:10:16.:10:21.

was my honourable friend for Oldham East, who said in response to the

:10:22.:10:25.

announcement, and I quote, and coming to this decision, the Tories

:10:26.:10:31.

are yet again ignoring the views of disabled people, their carers and

:10:32.:10:35.

experts in the field, trying to press ahead with changes just two

:10:36.:10:40.

years since the introduction of the system itself.

:10:41.:10:44.

After it became clear that cuts to PIPs the planned as a way to fund

:10:45.:10:53.

tax cuts for the wealthy, it was my honourable friend, the leader of the

:10:54.:10:57.

Labour Party, who made it a key part of his excellent response to the

:10:58.:10:59.

budget last week and he was not alone. The members for Ilford North

:11:00.:11:04.

and Nottingham East were among several others on these benches who

:11:05.:11:08.

pressed the Chancellor on this issue. As I did in opening the

:11:09.:11:14.

debate last Thursday. I want to give thanks to everyone on our benches

:11:15.:11:20.

and across the House whose help forced this rethink and helped end

:11:21.:11:27.

the wording which thousands of disabled people have been

:11:28.:11:31.

experiencing in the past week. I thank the Shadow Chancellor. He is

:11:32.:11:37.

right, but turns are embarrassing but I remember his embarrassing

:11:38.:11:41.

U-turn on the charter for fiscal responsibility. Does he regard

:11:42.:11:46.

himself at the moment as a socialist or Marxist and does he agree that

:11:47.:11:50.

the politics of the far left only offer the people and equal share of

:11:51.:11:56.

misery? This is a debate about the threat of cuts to some of the most

:11:57.:12:00.

vulnerable people in society. This is not a time for student union

:12:01.:12:14.

politics in this chamber. By Friday, the Chancellor was under so much

:12:15.:12:17.

criticism, he needed to find someone to blame. I think he did one of the

:12:18.:12:22.

most despicable acts we have witnessed in recent litigant

:12:23.:12:26.

history- he sent out his team of spin doctors to lay the blame on the

:12:27.:12:31.

former Secretary of State for work and that is. The right honourable

:12:32.:12:34.

member for Chingford and Woodford Green. This was a disgraceful act of

:12:35.:12:39.

betrayal of one of his own Cabinet colleagues. To save his own

:12:40.:12:43.

political skin and his leadership post. Order! Mr cleverly. I have

:12:44.:12:58.

known four years, you have always struck me as very polite fellow. Did

:12:59.:13:03.

you get overexcited? You will have an opportunity to intervene in due

:13:04.:13:06.

course but you do not do this in this way. I am surprised that he has

:13:07.:13:14.

been taken by some of the crocodile tears from the Tories opposite in

:13:15.:13:18.

his concern for the disabled. Surely have degrees of me that this is

:13:19.:13:23.

nothing to do with new-found concern for the disabled, it is about the

:13:24.:13:36.

Civil War. Let me move on... ! I appreciate the point made. Can I

:13:37.:13:44.

just say, the reason the betrayal was why the member resigned. I have

:13:45.:13:53.

agreed to be frank with not a single policy he has put forward but I do

:13:54.:13:58.

not doubt his sincerity in the policies he has pursued. Would he

:13:59.:14:06.

not agree with the words of the member for Chingford and Woodford

:14:07.:14:10.

Green said, that the policies of the Chancellor are in danger of drifting

:14:11.:14:14.

in a direction that divide society rather than unites it? I believe his

:14:15.:14:21.

interview on the Andrew Marr programme professed effect that he

:14:22.:14:26.

has concern about this budget, that we agreed with. I have not agreed

:14:27.:14:30.

with the single policy he has pursued but I do not doubt his

:14:31.:14:38.

sincerity. There is no need to shout. He saw the unfairness of the

:14:39.:14:49.

cuts to PIPs contained in the budget, as he said, a budget that

:14:50.:14:55.

benefits high earners. And he saw himself being set up by his own

:14:56.:15:05.

Cabinet colleagues. I thank the Shadow Chancellor forgiving way and

:15:06.:15:09.

he is right to say he does not agree with the former Secretary of State's

:15:10.:15:13.

policies because even with this U-turn, to the PIPs, disabled people

:15:14.:15:20.

are still left distressed by the current reforms that are still going

:15:21.:15:23.

to be going through and will you join me in urging the Chancellor and

:15:24.:15:28.

the new Secretary of State to look again at this very flawed process? I

:15:29.:15:34.

fully concur. Because the same weakness was discussed, the ESA was

:15:35.:15:43.

cut by ?30 per week as well. I think the member opposite. He has been

:15:44.:15:52.

speaking for 14 minutes and West criticising people on my side of the

:15:53.:15:55.

House for making this about politics and people, I was wondering if you

:15:56.:15:59.

would get round to talking about any of the budget proposals? Can I say

:16:00.:16:14.

to the honourable gentleman... The role of the opposition is to hold

:16:15.:16:21.

government to account. We are holding this Chancellor to account

:16:22.:16:26.

for a potential attack on disabled people which I believe would have

:16:27.:16:31.

devastated their lives. In a minute... What I find most

:16:32.:16:38.

disgraceful from all of this is that there has been not one word of

:16:39.:16:43.

apology from its answer or any member on that side. Apologise, I

:16:44.:16:51.

say. I say, apologise, for the pain and anguish he has caused disabled

:16:52.:16:55.

people and their families, for the last two weeks. I understand when

:16:56.:17:02.

mistakes are made, we all make mistakes, but when you make a

:17:03.:17:06.

mistake, and you corrected, at least you should apologise. Does my

:17:07.:17:12.

honourable friend share my view that the most distressing thing that the

:17:13.:17:15.

former Secretary of State said throughout this weekend was the

:17:16.:17:17.

point about it does not matter because they do not vote for us

:17:18.:17:22.

anyway? Isn't there a constant thread, from the government cuts, in

:17:23.:17:28.

this budget, it does not care unless people vote Tory? I find it a form

:17:29.:17:37.

of electoral politics went just because a certain vulnerable group

:17:38.:17:40.

does not vote for you, you target them. That is unacceptable. Not one

:17:41.:17:52.

word of apology. One nation conservatism? It is a contradiction

:17:53.:18:03.

in terms. Can I remind the Shadow Chancellor that the richest 2% are

:18:04.:18:08.

paying 52% of all income tax, up from 49%, and the National Living

:18:09.:18:12.

Wage is putting money into the pockets of the poorest citizens? Can

:18:13.:18:17.

I say that he refers only to income tax. If he had seen last weekend the

:18:18.:18:23.

analysis of the overall cuts and what has happened regarding tax and

:18:24.:18:28.

benefits, he would see that it is actually the poorest but are paying

:18:29.:18:33.

the most and the two groups hit hardest, young women with children

:18:34.:18:38.

and older women with care and responsibilities. Cuts, Eddie 1% are

:18:39.:18:44.

falling on women. That is a discriminatory budget. -- 81%. We

:18:45.:18:55.

are all pleased that the Chancellor has found that attacking the

:18:56.:19:03.

disabled, the cuts in this way, is one cut too far for this government

:19:04.:19:07.

but would you agree that characterising all benefits

:19:08.:19:10.

claimants as work-shy stay in bed, lazy scroungers, which the

:19:11.:19:15.

Chancellor has done on many occasions, contribute to an

:19:16.:19:22.

atmosphere in which it is acceptable to enrich the better off at the

:19:23.:19:25.

price of the poorest amongst us? That language has been used. It has

:19:26.:19:33.

been used. Let me return to the budget. The honourable gentleman,

:19:34.:19:39.

who has left us, ask me to return. Can I say this... Even worse, there

:19:40.:19:46.

is still no certainty about further welfare cuts. We were told yesterday

:19:47.:19:55.

and we have repeated today, that there will be no further cuts in

:19:56.:20:01.

this Parliament. Within minutes, the Treasury were briefing to correct

:20:02.:20:04.

the Secretary of State. It became no planned cuts. There is complete

:20:05.:20:13.

confusion, chaos upon chaos. Assurances, mealy-mouthed assurances

:20:14.:20:16.

given today are being given but nobody believes or has any

:20:17.:20:21.

confidence in them. In one second. The withdrawal of PIPs leaves a ?4.4

:20:22.:20:28.

billion hole in the budget, as pointed out consistently by my

:20:29.:20:35.

honourable friend for Pontefract. The simple fact is, the sums in this

:20:36.:20:41.

budget, as my honourable friend pointed out, simply do not add up,

:20:42.:20:49.

they do not compute. On that point, the Shadow Chancellor will be aware

:20:50.:20:52.

that page 26 says that the Chancellor will set out plans to

:20:53.:20:58.

meet the welfare cap by this autumn and page 198 of the OBR report says

:20:59.:21:05.

that would require further welfare savings of ?3 billion every year.

:21:06.:21:11.

Did he hear the Chancellor clearly saying this afternoon that he was

:21:12.:21:16.

going to ditch those plans for ?3 billion a year of additional welfare

:21:17.:21:21.

cuts? By the end of this Parliament? Cuts upon cuts. And to the most

:21:22.:21:33.

vulnerable in society. I believe the Shadow Chancellor is a decent man,

:21:34.:21:38.

he said that I do not agree with the single policy of the former Work and

:21:39.:21:42.

Pensions Secretary during his time in office and given his knee fiscal

:21:43.:21:45.

responsibility and his new rules announced one week ago, could he

:21:46.:21:49.

tell the House, because people will look at him as the Shadow

:21:50.:21:52.

Chancellor, will he tell the House, would he keep the welfare cap? Or

:21:53.:21:57.

tell me one single saving that he could take from the welfare budget?

:21:58.:22:05.

We supported the welfare cap. I find it ironic that this is on behalf of

:22:06.:22:09.

a government that is not meeting the welfare cap, it is then moving it

:22:10.:22:14.

up. They are changing the goalposts again. Let us be clear. The ?4.4

:22:15.:22:22.

billion hole in the budget means that either further cuts in

:22:23.:22:27.

departmental budgets or benefits or stealth taxes will come in. No

:22:28.:22:34.

solution has been announced today. We were told this would be resolved

:22:35.:22:39.

by the autumn so between nine and then, no public sector job, no

:22:40.:22:47.

benefit, no service, will be safe. He is right to say that the

:22:48.:22:53.

Chancellor has a ?4.4 billion black hole and it could be filled by cuts

:22:54.:22:56.

to other public services or to stealth tax cuts. But also, that is

:22:57.:23:03.

only in existence because he set himself a false target. Would he

:23:04.:23:07.

agree with me that the real problem at the heart of the Chancellor's red

:23:08.:23:12.

ability is the fiscal charter? -- credibility. I will come back to

:23:13.:23:17.

that. I realise we are under pressure with time. There has been a

:23:18.:23:25.

solution announced today. And I think this political manoeuvring has

:23:26.:23:30.

real consequences. The drama also very the past budget week has

:23:31.:23:36.

clouded a further astounding revelation about his behaviour. His

:23:37.:23:41.

former college, David Laws, revealed at the weekend that the Chancellor

:23:42.:23:44.

pressurised senior officials to reduce their estimates of the

:23:45.:23:49.

funding needed to maintain the NHS. We discovered that the Chancellor

:23:50.:23:53.

had been forced to cut by almost a half of the funding for the

:23:54.:23:59.

independent assessment for what the NHS needs and the result is hospital

:24:00.:24:03.

trusts cannot plan, they are facing a crisis, waiting times are rising,

:24:04.:24:07.

staff are under intense pressure and morale is at rock autumn. At the

:24:08.:24:13.

start of the year, the NHS recorded its worst ever performance as

:24:14.:24:15.

services struggled to cope with demand. It is now facing its against

:24:16.:24:22.

funding crisis for one generation. And it is putting patient care at

:24:23.:24:29.

risk. I want to go back to the issue of the welfare cap. The existence of

:24:30.:24:35.

the welfare cap and the support for the welfare cap, does that not imply

:24:36.:24:43.

that if welfare spending goes up, then there will have to be a

:24:44.:24:47.

revisiting of welfare spending? And at that stage, with the Shadow

:24:48.:24:51.

Chancellor cease to support the welfare cap would he support

:24:52.:24:52.

measures to keep within it? We supported it because we believed

:24:53.:25:04.

he had better policies such as homes, -- we believe we have better

:25:05.:25:11.

policies such as building homes. The NHS, and nothing says Embers

:25:12.:25:16.

Budget that the NHS is capable of finding the ?22 billion in savings

:25:17.:25:21.

over the next few years, and this idea is pure fantasy written into

:25:22.:25:26.

this Budget. It is typical of this Chancellor to look for Spain and

:25:27.:25:30.

presentation over addressing the real problem. I have been extremely

:25:31.:25:33.

generous, I will come back to the honourable gentleman, we are running

:25:34.:25:39.

out of time. He needs to stop living in the fantasyland and started being

:25:40.:25:41.

honest with the public over his own numbers. On schools, this is far

:25:42.:25:49.

from it being a Budget for the next generation, as the Chancellor

:25:50.:25:52.

claimed. Not only is the plan to turn every school into an academy

:25:53.:25:56.

unpopular with parents and teachers, we now know that schools face an 8%

:25:57.:26:00.

real terms cut in their funding, the first time since the 1990s but

:26:01.:26:09.

schools funding has been cut. At the heart of all this failure, and this

:26:10.:26:12.

is the point the honourable gentleman made, at the heart of all

:26:13.:26:17.

this failure, to be frank, is the Chancellor 's economic incompetence.

:26:18.:26:21.

His huge mistake of forcing through a fiscal rule that has proved to be

:26:22.:26:26.

unworkable against all sound economic advice, he put politics

:26:27.:26:34.

above economic 's. He imposed a fiscal rule which, like his Budget

:26:35.:26:39.

sums, now simply doesn't add up. Virtually every target he has set

:26:40.:26:44.

himself has been missed. The deficit which he promised would be

:26:45.:26:48.

eradicated last year, he has failed. The debt was supposed to be

:26:49.:26:53.

rising... Supposed to be falling, but it is rising. I thank him for

:26:54.:27:00.

giving way. The former Work and Pensions Secretary described the

:27:01.:27:03.

cuts to PIP as deeply unfair when juxtaposed with the tax cuts to the

:27:04.:27:08.

wealthy. Does he agree with me that the Chancellor should consider

:27:09.:27:13.

scrapping that tax decrease for the wealthy to help fill the black hole

:27:14.:27:18.

left of ?4.4 billion? Perhaps that would help? Those are the sort of

:27:19.:27:23.

proposals we should be considering and voting for today. Let me finish

:27:24.:27:30.

the next section. I understand I am straining your patience, Mr Speaker,

:27:31.:27:34.

I will press on. On debt, the Chancellor is set to leave our

:27:35.:27:40.

children with ?1.7 trillion of Government dead, hundreds of

:27:41.:27:44.

billions borrowed under his watch. The welfare cap, the point the

:27:45.:27:49.

honourable gentleman made, said to be breached this year until 2020.

:27:50.:27:52.

The OBR confirmed it would be breached by ?20 billion over five

:27:53.:27:58.

years. Having broken two of his own rules already, the third hangs by a

:27:59.:28:04.

thread, and only thanks to some serious creative accounting will he

:28:05.:28:08.

meet the overall surplus. Meanwhile, across the country, his economic

:28:09.:28:13.

approach is failing, evidence last week by the OBR report. Forecasts

:28:14.:28:20.

for growth, Daum. Forecasts for wages, down. Forecasts for

:28:21.:28:26.

productivity, down. Forecasts for business investment, down again. Why

:28:27.:28:29.

won't he take responsibility for the last six years? Would he give way?

:28:30.:28:36.

Could I give way to the honourable lady?

:28:37.:28:40.

I am very grateful for the honourable gentleman giving way.

:28:41.:28:44.

Could he confirm that he celebrates the fact that 1700 of the lowest

:28:45.:28:51.

paid in my constituency will be taken out of tax altogether as a

:28:52.:28:55.

result of this Budget, and 1.3 million of the lowest paid are being

:28:56.:29:02.

taken out of tax altogether in this Parliament already? Does he welcome

:29:03.:29:07.

mat? That is why we support the increase in the lower rate

:29:08.:29:12.

threshold, but we have concerns that shifting the thresholds benefits the

:29:13.:29:17.

higher earners too much as well. If I can press on, please. At the

:29:18.:29:28.

bottom, to be frank, of this whole Budget, is a Chancellor more

:29:29.:29:31.

interested, as some have referred to, in his political career than the

:29:32.:29:35.

welfare of disabled people, more interested in becoming leader of his

:29:36.:29:40.

party than the health of our economy, not a Chancellor, but a

:29:41.:29:44.

political Chancellor. Let me pay tribute to the colleagues in this

:29:45.:29:49.

house on all sides who have forced the Chancellor to force this U-turn

:29:50.:29:53.

on his proposed cuts to disabled people. Let me conclude with this,

:29:54.:29:59.

this is not a one nation, passionate Budget, nobody believes that. It is

:30:00.:30:03.

a Budget shot through with unfairness at its heart. Even his

:30:04.:30:08.

own Cabinet colleague denounced it last month. It is fundamentally

:30:09.:30:13.

divisive and unfair. This is not a competent budget, it fell apart

:30:14.:30:17.

within a couple of days and the Chancellor is unable to explain how

:30:18.:30:22.

he will fill the ?4 billion hole. It is not a Budget for the long-term, a

:30:23.:30:26.

long-term economic Lambert lasted three days...

:30:27.:30:31.

LAUGHTER It is a Budget built around

:30:32.:30:34.

short-term political tactics that has backfired spectacularly.

:30:35.:30:40.

They used to say a week is a long time in politics, under this

:30:41.:30:46.

Chancellor the weekend 's counts as the length of a long-term economic

:30:47.:30:51.

plan. What a failure. This is not a Budget for the economy or the

:30:52.:30:56.

country, it is a Budget constructed around a self imposed austerity,

:30:57.:31:01.

about politics, not economic, incompetent politics which has blown

:31:02.:31:05.

up in the Chancellor 's phase. Let me say to him... Let me say to him,

:31:06.:31:12.

he might think of for the sake of his party, but I certainly think for

:31:13.:31:16.

the sake of the country, it is time for him to go.

:31:17.:31:22.

Order, the original question was as on the order paper, since when

:31:23.:31:30.

Amendment B has been proposed as on the order paper. The question is

:31:31.:31:37.

that amendment the be made. Mr Kenneth Clarke?

:31:38.:31:45.

Mr Speaker, may I begin by congratulating my right honourable

:31:46.:31:48.

friend the Chancellor on providing much addition of the Chancellor

:31:49.:31:51.

speaking on the last day of the Budget debate. It is one of the many

:31:52.:31:58.

things that should not have been abandoned by my successor, Gordon

:31:59.:32:03.

Brown. It has, I think we will all agree, the effect of enlivening the

:32:04.:32:10.

debate very considerably. I also congratulate him on the extremely

:32:11.:32:12.

effective and spirited performance he has just made in defending the

:32:13.:32:20.

Government and quite rightly taking pleasure in the achievements he has

:32:21.:32:24.

made so far in his term as Chancellor. It is quite remarkable

:32:25.:32:28.

that we are having such a lively debate on the Budget at a time when,

:32:29.:32:32.

as we just discovered from listening to the Shadow Chancellor, there is

:32:33.:32:37.

absolutely no alternative economic strategy or policy on offer of any

:32:38.:32:43.

kind. No doubt my party will make up for that lack of challenge in its

:32:44.:32:47.

own curious way. Meanwhile, I congratulate the Chancellor on where

:32:48.:32:55.

he has got so far. In case he is worried about the controversy

:32:56.:32:59.

surrounding his Budget, that is not unusual. I have been here so long,

:33:00.:33:04.

let me assure him, I have seen much worse. The 1981 Budget of Geoffrey

:33:05.:33:12.

Howe was extremely controversial and passions run far higher and more

:33:13.:33:15.

seriously than on this particular occasion. Nigel Lawson had his

:33:16.:33:21.

speech interrupt did and the House was suspended because of disorder

:33:22.:33:26.

when he tried to cut the taxes on the higher paid. I merely had one

:33:27.:33:34.

defeat on a finance Bill, I had a rebellion which I lost on the floor

:33:35.:33:38.

of the house. My mitigation is it was not my proposal, it was Norman

:33:39.:33:43.

Lamont who had proposed VAT on domestic fuel. I also had to say

:33:44.:33:48.

that I think it was a perfectly sensible proposal, and I still do.

:33:49.:33:55.

But what I did was come back immediately with more tax proposals

:33:56.:34:00.

in order to get the revenue I had just lost. I think my right

:34:01.:34:04.

honourable friend is quite right to wait for events and see what happens

:34:05.:34:07.

between now and the Autumn Statement, and then continued the

:34:08.:34:12.

fiscal discipline he has so far quite rightly maintained. I will

:34:13.:34:19.

give way. The right honourable gentleman

:34:20.:34:21.

probably knows that the Royal College of physicians has an that

:34:22.:34:27.

40,000 people are dying a year at a cost of ?20 billion from diesel

:34:28.:34:31.

emissions and pollution. Do you think the Chancellor should look

:34:32.:34:35.

again at promoting green transport, public health and savings and

:34:36.:34:39.

rebalance the tariffs on electric and diesel, on hydrogen and petrol,

:34:40.:34:46.

to save lives and money? He is extremely active on that

:34:47.:34:50.

front. Scientific knowledge is moving on. I remember when diesel

:34:51.:34:53.

was positively subsidised by government because it was thought to

:34:54.:34:57.

be more environmentally friendly. In a more appropriate debate, those

:34:58.:35:02.

issues are quite well worth pursuing.

:35:03.:35:05.

I do understand the problem. I turned to what the Chancellor has to

:35:06.:35:12.

devote himself to, the Budget, and the Budget judgment and its

:35:13.:35:15.

imprecations for the economy. The Chancellor did actually I accept, as

:35:16.:35:20.

he has too, that is his principal responsibility. The Chancellor has

:35:21.:35:24.

the most difficult job in Government because he has to spend all his time

:35:25.:35:28.

challenging all the lobbies that demand extra expenditure,

:35:29.:35:32.

challenging his colleagues to find savings or improvements in the

:35:33.:35:36.

budgets of their departments in order to close the gap. What this

:35:37.:35:40.

Chancellor has not done is take a short-term view at any stage, which

:35:41.:35:46.

is why he has achieved such remarkable economic success. What I

:35:47.:35:53.

liked about his Budget speech was when he stressed how it was for

:35:54.:35:57.

future generations. I think what he just said a few moments ago, a sound

:35:58.:36:02.

bite which I had not heard before, there is no social justice without

:36:03.:36:08.

sound finance, it is one of the best summations of one nation

:36:09.:36:12.

conservatism I have heard for a very long time. Let me just turn, I

:36:13.:36:17.

should be in trouble with the Speaker and everyone else who wants

:36:18.:36:20.

to speak if I gave way, otherwise I would love to give way for the

:36:21.:36:31.

honourable member to Leicester. If I give way, I shall get even more... I

:36:32.:36:36.

am trying to be reasonably concise, I apologise to the honourable

:36:37.:36:43.

member. I tried to think of what I would have done had I been

:36:44.:36:48.

Chancellor in the present situation. Before the Budget was delivered I

:36:49.:36:52.

decided that if I were in that position, and thank the Lord I am

:36:53.:36:56.

not, because I never face problems of the kind that my honourable

:36:57.:37:03.

friends inherited from his predecessor, but I expected a much

:37:04.:37:08.

tougher Budget. This is classic traditional stuff. When the iron of

:37:09.:37:13.

the Treasury has entered one peers sole, this is the first Budget after

:37:14.:37:19.

an election, we have not made fast enough progress in eliminating the

:37:20.:37:22.

deficit and debt and we will not have sound future progress with a

:37:23.:37:26.

modern rebalance the economy unless we do. My first thoughts would have

:37:27.:37:31.

been to get on with it. I would have introduced a Budget, as I did in my

:37:32.:37:36.

time, raising taxes and cutting public expenditure. And I am glad to

:37:37.:37:40.

hear for reasons I will come onto again in a moment that my right

:37:41.:37:45.

honourable friend has committed himself to his continuing long-term

:37:46.:37:48.

objective, but he has decided to pause. I thought this was going to

:37:49.:37:54.

be a popular Budget, people would speculate as to why we had a popular

:37:55.:38:00.

Budget. The Chancellor has in the short-term relax the fiscal policy,

:38:01.:38:04.

which is why it is very good that the Bank of England is retaining a

:38:05.:38:15.

very, very relaxed monetary policy, he would tighten it if we were to

:38:16.:38:18.

abandon fiscal discipline. In the short term he has lower taxation and

:38:19.:38:25.

Lola Department spending target -- and lowered Department spending

:38:26.:38:32.

targets. He has these are fun spending and lower taxation. I was

:38:33.:38:37.

surprised by that. I assume it is partly caused by the quite

:38:38.:38:40.

considerable uncertainty facing the economy. No one has addressed that

:38:41.:38:47.

in any debate. The Chancellor did in his Budget speech. The global

:38:48.:38:51.

economy is slowing down. The British economy is mainly, in consequence,

:38:52.:38:57.

slowing down. The uncertainties to our economic prospects over 2016 are

:38:58.:39:05.

very, very concerning. There are many uncertainties, all of which

:39:06.:39:09.

would threaten most other developed if things go wrong. In China, we

:39:10.:39:16.

still don't know if they will achieve a soft landing, I think they

:39:17.:39:21.

will. In the emerging markets and, associated with that, the problems

:39:22.:39:25.

of emerging market debt, the volatility in the market, some

:39:26.:39:29.

uncertain as in the financial world and the risk of Brexit, I am very

:39:30.:39:34.

glad that the governor of the Bank of England decided to reassure

:39:35.:39:37.

people by setting out publicly that he was prepared to take action if we

:39:38.:39:42.

had a flight of capital from this country. People get alarmed about

:39:43.:39:48.

this referendum. So far it has only led to a big decline in the value of

:39:49.:39:54.

sterling and the freezing of most people's investment plans, because

:39:55.:39:58.

you are a bit of an idiot to invest in the British economy in anything

:39:59.:40:03.

other than the slightest bit of risk when you do not know what the

:40:04.:40:07.

circumstances will be in six months' time of the trading patterns in the

:40:08.:40:11.

country in which you are investing. I assume that one of the features

:40:12.:40:14.

that made my right honourable friend take a more relaxed view than a

:40:15.:40:16.

judicial Chancellor would have done, not to make those big spending

:40:17.:40:25.

cuts, not to increase taxation, T Eaves taxation on business in

:40:26.:40:28.

particular and the low paid, was because to make sure that he didn't

:40:29.:40:32.

make the mistake of being too severe when circumstances could well worsen

:40:33.:40:35.

as the year goes on. A great deal of the debate centred

:40:36.:40:56.

on the OBR forecast. The fact that it changed so dramatically just

:40:57.:41:01.

underlines what I'm saying about the uncertainties for the immediate

:41:02.:41:04.

future. Fortunately, thanks to my right honourable friend, the British

:41:05.:41:11.

economy has been the fastest growing. The factors that this is a

:41:12.:41:24.

time to be cautious. I would have maintained the squeeze, I put it all

:41:25.:41:28.

off to the latter half of the parliament next, if you're not

:41:29.:41:32.

careful, because long as the economy continues to grow, there was

:41:33.:41:35.

reasonable spec that the British economy will continue to grow, we

:41:36.:41:37.

should not be deficit of this percentage of GDP.

:41:38.:41:42.

And piling up more debt for our successes.

:41:43.:41:50.

If my only dose were this is internally justified. -- doubts. The

:41:51.:41:58.

Shadow Chancellor plainly does not have an idea in his head about how

:41:59.:42:02.

you would save any money I do anything other than spend money

:42:03.:42:08.

which is totally profligate staff. I certainly am very glad that my right

:42:09.:42:17.

honourable friend as changes to business taxation. When I was in

:42:18.:42:21.

office put up taxes but never business taxes because trying to

:42:22.:42:24.

encourage growth. We still need to make a economy stronger so it is

:42:25.:42:30.

welcome that he stepped in, keeping the corporation tax level at

:42:31.:42:36.

competitive rate and particularly I welcome help he has given to small

:42:37.:42:40.

and medium-sized businesses, encouraging business is actually the

:42:41.:42:46.

best way of protecting ourselves against economic risks of the future

:42:47.:42:51.

in this uncertain world. And big business he has not been wholly

:42:52.:42:55.

generous. He and the government have been reading in the OECD -- leading

:42:56.:43:04.

in attempts to actually tackle this problem of tax evasion and tax

:43:05.:43:10.

avoidance on the part of big multinational companies and he has

:43:11.:43:12.

actually incorporated the first serious attempt to attack the

:43:13.:43:20.

problem of tax relief on interest 20 to six budget and misuse, after

:43:21.:43:24.

actually for royalties and tax relief on past losses. I get told a

:43:25.:43:30.

lot about how the Chancellor should be electing more. No government has

:43:31.:43:39.

done a blind thing about tackling tax avoidance for the last ten

:43:40.:43:45.

years. In this budget he has started to act. We are told we have relieved

:43:46.:43:55.

tax on the rich and everybody knows, I certainly know not just in the

:43:56.:44:01.

newspapers, the Treasury have the looking at the idea of doing more on

:44:02.:44:05.

tax relief for the wealthy when they contribute to their pension funds.

:44:06.:44:12.

When you have very high earnings the tax relief on pension funds is our

:44:13.:44:17.

way of avoiding tax and it is a very great way of making sure that you do

:44:18.:44:22.

not pay 45% and a very considerable part of your income, or it was. We

:44:23.:44:26.

have now put a cap on it but I do rather feel it is still rather too

:44:27.:44:31.

generous at the moment that the taxpayer is predicting 45%. When

:44:32.:44:41.

some delete that outside the scene after the pensions industry in ten

:44:42.:44:46.

days flat so he was not actually allowed that occasion I suspect

:44:47.:44:49.

because of fear on this side of the House to proceed with more of these

:44:50.:44:53.

changes to tax relief for the rich. So far as other tax move see has

:44:54.:45:03.

made, personal allowances and the thresholds for the higher rate,

:45:04.:45:10.

because the higher paid wretch no peace education' tax, it is also

:45:11.:45:14.

possible to ease the tax burden on the low paid and the ordinary

:45:15.:45:20.

citizen without it being able to be demonstrated man thematically that

:45:21.:45:26.

you have done quite a lot for the rich as well. -- mathematically. If

:45:27.:45:31.

you bought this argument you would never move the threshold at which

:45:32.:45:36.

people pay tax and he would never raise the 40% rate to stop people

:45:37.:45:40.

and modest jobs at the moment who find it but a marginal rate of 40%

:45:41.:45:44.

because Gordon Brown started this habit of freezing the threshold in

:45:45.:45:52.

order to get still taxation. It is a welcome thing to raise thresholds

:45:53.:45:55.

and collaborate my writable friend was able to do so. The pension

:45:56.:46:02.

benefits, which I entitled to, get raised every now and again and I've

:46:03.:46:08.

always told that we put things in a manifesto and I've yet to meet

:46:09.:46:12.

candidate or elector in the last election and read this manifesto

:46:13.:46:15.

which she was tough considerable detail in it that was not set the

:46:16.:46:19.

crucial to my victory in my constituency nor I suspect in the

:46:20.:46:27.

body else's. -- anybody. We have ruled out ever raising income tax

:46:28.:46:30.

and national insurance are VAT and we appear to have ruled out to have

:46:31.:46:34.

done anything at all the stops were very wealthiest people having feed

:46:35.:46:39.

bus passes and winter fuel allowance and so on. I would not advocate the

:46:40.:46:44.

breaking of manifestos but I know of no prosperous pensioners, certainly

:46:45.:46:49.

nobody in full-time employment and myself would not object to two at

:46:50.:46:55.

the very least making it taxable and I do think that there is case from

:46:56.:47:00.

looking at these things and various other alternatives which I will not

:47:01.:47:03.

risk going any further for time and secondary because today populist

:47:04.:47:08.

politics means some unknown lobby are known not get to me to send only

:47:09.:47:18.

and blow it out of the water in the next two or three days. -- not next

:47:19.:47:29.

known to me. No two chancellors would ever have done exactly the

:47:30.:47:37.

same on every measure and within our system we make an overall judgment

:47:38.:47:43.

and the Chancellor retained my full confidence. I'm prepared to support

:47:44.:47:46.

his judgment. On top of that, one of the reason for supporting his

:47:47.:47:50.

judgment as I have already said that we are in a strange position this

:47:51.:47:54.

government where that is absolutely no alternative opposition being made

:47:55.:48:03.

by anybody outside. There are some pundits and some politicians as a

:48:04.:48:08.

result we seem to believe that we are wrong to have this target of a

:48:09.:48:11.

balanced budget of the cycle or however you would put it. But

:48:12.:48:17.

actually that are not any problems, you always run a deficit on and on

:48:18.:48:23.

and on. It is free money and it is troublesome that interest rates

:48:24.:48:28.

might go back to normality one day and meanwhile just let it pile-up

:48:29.:48:32.

that will sort itself out and people on the far right say tax cuts,

:48:33.:48:36.

that's all we want. Tax cuts will inspire such tremendous

:48:37.:48:41.

entrepreneurship that jobs will be greeted in both be created and you

:48:42.:48:45.

will have all paid back and not be in debt long. On the left boost

:48:46.:48:51.

every welfare payment and increase public spending every public service

:48:52.:48:54.

which will generate such the man from the grateful recipients that

:48:55.:48:57.

they will pump it into the economy and will pay for itself. This is a

:48:58.:49:06.

Mickey Mouse economics. Mickey Mouse economics is practised by the last

:49:07.:49:09.

Labour government and got us into this trouble that we are still,

:49:10.:49:14.

faxed to my right honourable friend, getting out of now. Finally my

:49:15.:49:17.

reason for backing his judgment, and this is my last point, is this is

:49:18.:49:26.

aid budgets in six years now. His record is absolutely amazing. I have

:49:27.:49:34.

to concede is one of his competitors are one point T is by far the most

:49:35.:49:40.

successful departmental minister in this government so far. If anybody

:49:41.:49:47.

had said when he took over the state of affairs that the Duke over more

:49:48.:49:50.

than aid budgets ago, that he was going to come here in charge of the

:49:51.:49:56.

fastest-growing economy in the world, near full employment and

:49:57.:50:03.

employment at record-breaking heights and able to show her

:50:04.:50:10.

steadily improving state, not only the public finances, but the

:50:11.:50:16.

condition of the poor and the alleviation of social problems

:50:17.:50:18.

across the country would not have been believed. There's quite a

:50:19.:50:21.

remarkable informants and I back a judgment and I'm delighted that he's

:50:22.:50:31.

helping us all to avert the risk of Brexit in the forthcoming referendum

:50:32.:50:39.

which did really said things off the rails at a public bar as an advised

:50:40.:50:45.

to vote for it. Before I called a spokesperson for the Scottish

:50:46.:50:52.

National party it might be for the convenience of those to know that on

:50:53.:50:55.

account of the level of demand to contribute to the debate there will

:50:56.:51:00.

then have to be a five-minute limit on backbench speeches. That Levitt,

:51:01.:51:05.

as I have said, will follow the honourable gentleman, Mr George

:51:06.:51:18.

caravan. --Kerevan. I expressed sympathy to the peoples of Belgium

:51:19.:51:27.

and recent immigrants in this tragic hour. To give the Chancellor his due

:51:28.:51:38.

he gave a performance of his more assured the more interesting than we

:51:39.:51:43.

got last week. I am always worried when the Chancellor goes into his

:51:44.:51:48.

expansive and emotional mode. What is he hiding? We know what he had

:51:49.:51:55.

last week which was the fact he would have to come back into the

:51:56.:51:59.

peace budget and do a new one that what he always hides and was never

:52:00.:52:04.

addresses is a crucial issue of productivity. -- to his budget into

:52:05.:52:18.

pieces. There's no wage growth and low productivity growth. According

:52:19.:52:23.

to this but it productivity growth has risen at an annual average of

:52:24.:52:29.

0.1%. Since the top of the boom in 2007 the community of increasing UK

:52:30.:52:39.

productivity is less than 1%. That is the failure of the Chancellor.

:52:40.:52:42.

This is the Chancellor, and I have a great respect for him, never had a

:52:43.:52:49.

real job. He is not a Chancellor ever worked in the private sector

:52:50.:52:52.

are ever had to lie awake at night as I have had to do is ensure as

:52:53.:52:57.

many other members have, and worry about how to pay the wage bill. This

:52:58.:53:01.

is an intellectual Chancellor, that is his problem. A summary spent the

:53:02.:53:10.

last 15 years setting up and running businesses and glad it is this

:53:11.:53:14.

Chancellor who is sitting in that seat and grating jobs and helping

:53:15.:53:22.

businesses like mine. Can I say for the benefit of the House, moderation

:53:23.:53:31.

and good humour at the precepts and members of both side can learn order

:53:32.:53:38.

from the right honourable Leonard gentleman who has just given a

:53:39.:53:42.

textbook example of making a robust speech with good humour and there

:53:43.:53:50.

are many members on the opposition benches who could do that. I served

:53:51.:53:56.

with the honourable member on the Treasury Select Committee and I did

:53:57.:54:02.

not take that personally. If we do not get productivity, what happens

:54:03.:54:07.

question might we do not get growth. The right Honourable member for Rush

:54:08.:54:13.

broke give a wise presentation as he always does. He said the UK has had

:54:14.:54:20.

the fastest growth and develop world but that is not true. As he phrased

:54:21.:54:24.

it, that is not true unless of course Australia is not developed by

:54:25.:54:29.

the United States is not developed or Sweden is not developed or Korea

:54:30.:54:33.

is not developed or Spain is not developed because they all had

:54:34.:54:38.

faster GDP growth in 2015 than the UK. This is largely because they had

:54:39.:54:43.

faster productivity growth. That is what this Chancellor has not

:54:44.:54:47.

delivering. That is not what this budget contains and that is the

:54:48.:54:51.

weakness of this budget. If you look at the weakness and failure in

:54:52.:54:55.

productivity growth in the UK and at this Chancellor, you would be

:54:56.:55:02.

interested to know that virtually every commercial industrial sector

:55:03.:55:10.

has productivity lacking and falling 1% per year on average in the

:55:11.:55:16.

financial services industry, a key service industry, the industry that

:55:17.:55:24.

is leading a severed exports. -- our service exports. The Chancellor has

:55:25.:55:29.

spent a lot of time reconstructing the service sector but we have

:55:30.:55:34.

falling productivity so that as we speak, according to ONS,

:55:35.:55:39.

productivity in the British financial sector is now behind

:55:40.:55:46.

financial services activity in France and Italy.

:55:47.:55:51.

That is not a great record, Chancellor. If you don't have

:55:52.:55:58.

productivity growth, then the cash economy does not grow, wages do not

:55:59.:56:03.

grow and, therefore, income to the Treasury does not grow.

:56:04.:56:10.

I thank the honourable gentlemen for giving way. Does he not recognise

:56:11.:56:14.

that in this Budget there is a mod to improve the performance of the

:56:15.:56:18.

economy in that, does he not agree that a massive cut in business rates

:56:19.:56:24.

is going to deliver exactly that productivity he is talking about?

:56:25.:56:32.

Well, Madam Deputy Speaker, I utterly unacceptable point, it comes

:56:33.:56:35.

to the core of what I'm going to say. The sort of cuts in business

:56:36.:56:40.

rate to small companies the Chancellor has belatedly introduced

:56:41.:56:45.

in this Budget have long been available in Scotland. What has

:56:46.:56:49.

happened to productivity in Scotland, with the Scottish

:56:50.:56:52.

Government's limited drivers for economic growth? Productivity in

:56:53.:56:58.

Scotland, since the recession, has gone up 4.4%, more than four times

:56:59.:57:02.

what this Chancellor has delivered, as we have been forced, with limited

:57:03.:57:08.

tax powers, to concentrate on the supply side. The Chancellor does not

:57:09.:57:12.

concentrate on the supply side. There are bits and pieces that I

:57:13.:57:17.

welcome in his Budget, particularly the move to clamp down on transfer

:57:18.:57:22.

pricing in multinational companies. But, in the end, the Chancellor has

:57:23.:57:28.

no strategy apart from his rendezvous with 2020 and trying to

:57:29.:57:37.

run a Budget surplus. Is he perhaps being a bit harsh insofar as there

:57:38.:57:41.

are many supply-side matters in this Budget, including the improved

:57:42.:57:48.

investment in infrastructure, the Digital economy, the cuts in

:57:49.:57:52.

Corporation Tax and, as has been mentioned, the cuts in business

:57:53.:58:00.

rates, all of which should help investment? Indeed, and I welcome

:58:01.:58:03.

all the supply-side measures. We have had, wait for it, five Budgets

:58:04.:58:11.

in the last 15 months. Why wouldn't they appear in the last four? If you

:58:12.:58:17.

can't today at last week, we have had six Budgets, white or not they

:58:18.:58:22.

appear before? It is not the Chancellor or the Treasury

:58:23.:58:28.

officials, it is because there is no strategy apart from trying to run a

:58:29.:58:32.

budget surplus and trying to run a budget surplus in a particular year

:58:33.:58:36.

goes the Chancellor knows that if he does not deliver in 2020, what is

:58:37.:58:41.

left of his reputation after this week is in shreds.

:58:42.:58:45.

I just wish to draw his attention, he says this is precisely why the UK

:58:46.:58:49.

has been working through its long-term economic plan. Since 2010,

:58:50.:58:53.

the plan has been focused on reducing the deficit while

:58:54.:58:58.

delivering the supply-side reforms necessary to improve long-term

:58:59.:59:00.

productivity. Will he at least concede that the Chancellor has in

:59:01.:59:05.

his Redbook was I see the kind of strategy that he is criticising? --

:59:06.:59:13.

precisely the kind of strategy? No. Because in the Chancellor's mind

:59:14.:59:17.

there is a tension, like the good and evil on his shoulder. One sign

:59:18.:59:25.

says, run a budget surplus. It is an easy road. It is not badly thought

:59:26.:59:29.

out, given the number of financial rules that chancellors over the

:59:30.:59:33.

years have thought up and failed to implement, it is extremely simple,

:59:34.:59:38.

it is just too crude. It vies with the supply-side strategy. Following

:59:39.:59:45.

on from my other friend from the Treasury's question, and OBR report

:59:46.:59:51.

says looking at how the Budget supply-side measures will bear out,

:59:52.:59:58.

the report says we expect smaller positive contributions to potential

:59:59.:00:02.

output growth from population growth, while average hours worked

:00:03.:00:12.

are expected to trend down. Average hours less, less growth in

:00:13.:00:16.

population, less input, where will the productivity increase come from?

:00:17.:00:21.

Would he agree that the reason we have such hopeless productivity

:00:22.:00:26.

growth is firstly that research and development, by international

:00:27.:00:30.

standard, is very, very low. Secondly, infrastructure investment

:00:31.:00:36.

is very, very low. Thirdly, rights at work security is very low, people

:00:37.:00:40.

can be sacked. If they could stay in work, as in Germany, the employer

:00:41.:00:47.

has to invest in their productivity because they can't get rid of them.

:00:48.:00:53.

We are creating short-term jobs, lower pay and less productivity. I

:00:54.:00:57.

could not agree more on all three points, so to be brief I will accept

:00:58.:01:02.

them as agenda. In addition, if you look at the back of the red book you

:01:03.:01:08.

will discover that public sector net investment, the capital investment

:01:09.:01:12.

in the public sector, falls for the next four years. I have to ask

:01:13.:01:16.

members on the other side of the house, if industry is in trouble,

:01:17.:01:23.

manufacturing is contracting as it has, according to the latest data,

:01:24.:01:28.

if in the public sector in order for the Chancellor to meet this

:01:29.:01:34.

rendezvous with destiny in 2020 and have this budget surplus, if we have

:01:35.:01:38.

to cut public sector net investment, how does that help budgeted at it?

:01:39.:01:43.

You need investment in capital to have productivity, that is where it

:01:44.:01:48.

comes from. In order to make the books balance, it is interesting to

:01:49.:01:52.

see what the OBR thinks has to happen. The OBR thinks that UK

:01:53.:01:55.

private sector business investment has to make up the difference. The

:01:56.:02:00.

OBR thinks that UK private business investment will come to the rescue

:02:01.:02:04.

and contribute a quarter of the expenditure contributions to GDP

:02:05.:02:08.

growth in the period to 2020 in order to achieve the Chancellor's

:02:09.:02:12.

fabled budget surpluses. Now what we have to say, to make all the sums

:02:13.:02:17.

were, there has to be growth. According to the OBR, all the

:02:18.:02:23.

growth, the expenditure between now and 2020, has to come from business

:02:24.:02:31.

investment. There was me on the numbers, they are quite important,

:02:32.:02:38.

-- bear with me on the numbers, they are quite important, the OBR has to

:02:39.:02:43.

that are Chris says that business has to contribute 0.6%. Just let me

:02:44.:02:53.

finish. There is only one problem. Historically, from 1990 to 2008,

:02:54.:02:59.

what did British business manager as a percentage of GDP annually in

:03:00.:03:05.

investment? 0.3%, was icy half in the boom years what OBR thinks

:03:06.:03:09.

business has to invest between now and 2020 in order for the

:03:10.:03:12.

Chancellor's numbers to work. That will not happen. The honourable

:03:13.:03:19.

member says the Chancellor lacks strategy. He was not listening to

:03:20.:03:24.

the same Budget that I was, we are seeing business tax down,

:03:25.:03:27.

infrastructure improves, in the Northern powerhouse we are seeing

:03:28.:03:31.

massive Government investment to tackle the challenges and private

:03:32.:03:35.

sector investment on the back of it, ?1 billion in Manchester Airport

:03:36.:03:38.

over ten years. Isn't that the sort of leverage that the Government

:03:39.:03:43.

should be seeking? I think if the honourable member had been listening

:03:44.:03:47.

carefully, rather than following the script, I am in

:03:48.:03:48.

favour of all the supply-side measures that we can

:03:49.:03:50.

get, that is how you get growth. I am pointing out that the Budget

:03:51.:03:57.

figures we have been pointing out in the Redbook with the OBR has Mike

:03:58.:04:01.

Weir independent analysis, business investment will be have to be double

:04:02.:04:06.

what it is historical averages. The economy is slowing, in order for the

:04:07.:04:11.

budget numbers to work. That will not happen. It comes to the

:04:12.:04:16.

question, it is a reasonable point, how do we boost business investment?

:04:17.:04:21.

In the Budget, first of all, we have a cut in corporation tax. It is

:04:22.:04:27.

already the lowest in the G20. If it is already the lowest in the G20,

:04:28.:04:34.

how can a cut in corporation tax actually produce any more inward

:04:35.:04:37.

investment? It is the biggest incentive it will be, cutting its

:04:38.:04:43.

even more will not be an increased incentive, it is wasting funds. I

:04:44.:04:50.

have raised this with the House before, much of the profits from the

:04:51.:05:01.

reduced Corporation Tax are going into shares, so that does not add to

:05:02.:05:08.

productivity. The other issue in the Budget is the cut in capital gains

:05:09.:05:12.

tax. There is an argument for cutting capital gains

:05:13.:05:13.

tax, but here is the point. Who was at raise the capital gains tax in

:05:14.:05:23.

2010? Which Chancellor raised capital gains tax? It is the

:05:24.:05:27.

Chancellor sitting there. If he could raise it, and now here's

:05:28.:05:31.

lowering it, what long-term plan is that? That confusion of signals is

:05:32.:05:36.

exactly why business does not invest, they don't know what taxes

:05:37.:05:40.

will be from one Budget to another which is, at the moment, every three

:05:41.:05:50.

months. I wasn't seeking to make a point, but I will now. Surely the

:05:51.:05:53.

Chancellor has demonstrated very nearly, he has his public finances

:05:54.:05:56.

under control, he is now in a position to take forward these

:05:57.:06:02.

changes referred to? Before I called the honourable gentleman, he has

:06:03.:06:08.

been on his feet for 15 minutes, he has taken a lot of intervention,

:06:09.:06:11.

there are around 40 members waiting to speak and I don't think we will

:06:12.:06:16.

get everyone in, so if you could limit the number of interventions, I

:06:17.:06:21.

would be grateful. As ever, I am at your service and the service of the

:06:22.:06:25.

House. I final point, I am sure we will discuss this in another three

:06:26.:06:29.

months at the next Budget. LAUGHTER

:06:30.:06:35.

The Chancellor talks about living beyond our means.

:06:36.:06:39.

He prioritises the Budget surplus. He talks about intergenerational

:06:40.:06:43.

fairness, he says that if we don't get the deficit down, the overall

:06:44.:06:48.

national debt down, it will be a burden on future generations. Let us

:06:49.:06:54.

test that. Letters go back to the late 40s and 1950s when the national

:06:55.:07:02.

debt as a share of GDP was more than twice what it is now. It was

:07:03.:07:08.

coasting over 200% at one point, for most of the 50s it was at 150%,

:07:09.:07:12.

twice what we have at the moment. That came from governments,

:07:13.:07:17.

particularly conservative governments, borrowing money. Most

:07:18.:07:21.

of the rise in national debt did not come through World War II, it was in

:07:22.:07:25.

the late 40s and early 50s as we try to rebuild Britain's infrastructure

:07:26.:07:30.

as a result of the degradations of the war. Harold Macmillan billing --

:07:31.:07:38.

building a million houses the year. -- each year. But if a huge national

:07:39.:07:44.

debt like that weighed heavily on a future generation, let's go forward.

:07:45.:07:48.

What happened to the baby boomers like myself and the other honourable

:07:49.:07:53.

member? Our generation has houses, we have pensions, we have benefited

:07:54.:07:59.

from that investment in national chair funded by the state. -- in

:08:00.:08:08.

national structure. So the idea that if you invest and run up a deficit

:08:09.:08:13.

it places a burden on the next generation is not true. Did the

:08:14.:08:17.

economy grow faster through the 50s and early 60 's? Yes. What it

:08:18.:08:24.

depends on, this is the message I will leave the Chancellor and I

:08:25.:08:29.

would liken to reflect on, what it depends on when he was trying to

:08:30.:08:32.

control public spending is what you spend it on. If like Harold

:08:33.:08:37.

Macmillan and the Conservative governments of the 50s, you invest

:08:38.:08:42.

in real infrastructure, rather than borrowing to invest in current

:08:43.:08:45.

spending, which is blown away by the wind, like this Chancellor is, if

:08:46.:08:51.

you do that, you will fail. The Chancellor wants to pretend he can

:08:52.:08:56.

run a Budget surplus. It may never happen, even if it does for one

:08:57.:09:01.

year, it is unsustainable. This Chancellor does not understand

:09:02.:09:04.

business, he does not understand how the economy does, he talks a good

:09:05.:09:09.

game but he has not delivered productivity, which is the core

:09:10.:09:11.

thing we need. Maria Miller! Thank you, Madam

:09:12.:09:18.

Deputy Speaker. It is a pleasure to follow the gentleman who always

:09:19.:09:22.

speak so eloquently, but I disagree with absolutely every word he has

:09:23.:09:26.

just said. At the heart of this Government

:09:27.:09:30.

Klose Budget is boosting productivity, that is plain for

:09:31.:09:35.

everyone to see. My right honourable friend the member from Rushcliffe

:09:36.:09:40.

said extremely clearly that the global economy is slowing down and

:09:41.:09:45.

we need to be fighting fit for the future, and this Budget will help

:09:46.:09:49.

put Britain in that place. I would like to pay tribute to the

:09:50.:09:53.

Chancellor for discovering such a strong Budget -- for delivering. But

:09:54.:09:57.

we should also be paying tribute to the wealth creators of the nation,

:09:58.:10:02.

it is them, not as in parliament, lab would Britain back on top with

:10:03.:10:06.

one of the strongest economies in the world. It is the farmers I met

:10:07.:10:10.

last week in Hampshire, the partners who run the new John Lewis

:10:11.:10:13.

store in my constituency, small and medium-size businesses up and down

:10:14.:10:20.

this country, people like Beryl Huntington who run absolute offices,

:10:21.:10:26.

or J -- Graeme Murphy, who runs our DT, those innovators and

:10:27.:10:29.

entrepreneurs putting Britain back on top. We have to acknowledge the

:10:30.:10:34.

immense hard work of those people to put our country in the position that

:10:35.:10:36.

it is. In what this government has been

:10:37.:10:49.

able to do is to recognise its role in creating the conditions for that

:10:50.:10:55.

business success because it is a government who have created

:10:56.:10:57.

environment where businesses feel confident to invest to make sure

:10:58.:11:03.

that the right reductions in business and job tax and in place to

:11:04.:11:08.

encourage that business growth and success in the right infrastructure

:11:09.:11:12.

and investment and ?100 billion going into infrastructure of this

:11:13.:11:16.

Parliament including Crossrail two will do so much to reduce the

:11:17.:11:19.

pressure and other parts of the rail network including I know for many

:11:20.:11:25.

Honourable members here the Wessex route which is well overcapacity at

:11:26.:11:28.

the moment. It is also a budget which is investing in people again

:11:29.:11:36.

underlining the commitment to 3 million new apprenticeships by 2020

:11:37.:11:40.

mile in section six 5000 apprenticeships came through my

:11:41.:11:46.

local college funding degree level apprenticeships and this is in that

:11:47.:11:50.

particular point that I want to make my main points because it is people

:11:51.:11:55.

who are the biggest assets of most organisations. When the CBI talks

:11:56.:11:58.

with the biggest challenges facing business in the UK today, it is

:11:59.:12:06.

retaining top cat talent and having appropriately skilled staff. We may

:12:07.:12:09.

have recognisable is an employment which is to be applauded in the

:12:10.:12:12.

highest numbers of women and were going to be fighting for the future

:12:13.:12:16.

we need to make sure we're getting the best out of every single member

:12:17.:12:22.

of accuracy. I believe that is much that is being done with still more

:12:23.:12:27.

to do, particularly in regards to the role of women in the workforce.

:12:28.:12:31.

As I said we have recognised as a said we have recognise women work

:12:32.:12:36.

today the Chancellor is to be congratulated on that, particularly

:12:37.:12:39.

because of the investment he has made sure as happened in Dublin

:12:40.:12:45.

seeing the amount of free childcare. -- doubling. 1 million women who

:12:46.:12:52.

work would like to work more but can't find the right job to do that.

:12:53.:13:00.

41% of them in this country work part-time and may do so because they

:13:01.:13:03.

cannot get hold of the right flexible work to be able to fit

:13:04.:13:07.

around a family and caring responsibilities. I hope I can

:13:08.:13:11.

gently draw the attention of the Chancellor to the second report of

:13:12.:13:13.

the authority select committee which is all about one of the great

:13:14.:13:18.

aspirations of this government which is to eliminate gender pay gap in a

:13:19.:13:23.

generation and I believe can do that if we have all jobs be more flexible

:13:24.:13:28.

and we have a better share of care for men in the family life and we

:13:29.:13:35.

have national ways, pathways for women to get back into work. I would

:13:36.:13:42.

like to draw his attention to report today that shows 77% of pregnant

:13:43.:13:49.

mothers are enduring. This is not making the best use of in this

:13:50.:13:55.

country outlet heard of -- and I would like to hear a pledge from

:13:56.:13:57.

this government that they will take steps to make sure everybody can

:13:58.:14:00.

take part in the job they want to do to make the biggest conservation can

:14:01.:14:05.

to boost productivity of this country. I rise to move the tenant a

:14:06.:14:20.

-- amendment A. I served on the finance committee with the

:14:21.:14:23.

honourable member with Glasgow Central last year and she and I

:14:24.:14:27.

first tabled amendment on this issue. We hope this year we can see

:14:28.:14:32.

them finally reflected in legislation. I would like to thank

:14:33.:14:38.

them Honourable member for Berwick-upon-Tweed for co-sponsoring

:14:39.:14:41.

the amendment and I would like to thank many of my Honourable friends

:14:42.:14:46.

for their support. It is the campaigning work so many others said

:14:47.:14:50.

this chamber that has driven us forward including more than 300,000

:14:51.:14:54.

people who signed the petition on this issue. Campaign against the

:14:55.:15:02.

tampon tax will serve as an example and inspiration to make positive

:15:03.:15:08.

change the highest level. It is one of the absurdities of attacks resume

:15:09.:15:13.

tampons and sanitary towels are treated as luxuries when periods are

:15:14.:15:16.

simply a fact of life for women. Last week we had a pollen portion

:15:17.:15:22.

food banks about women unable to afford tampons resorting to using

:15:23.:15:28.

newspapers and socks. Would she join me in thanking the Treasury Minister

:15:29.:15:34.

for the hard work is done in taking that fight directly to the European

:15:35.:15:37.

Union are negotiating with change the government is able to bid on the

:15:38.:15:43.

table today? I thank for intervention and I do thank the

:15:44.:15:46.

Treasury minister in common with everybody who supported this

:15:47.:15:50.

long-standing campaign throughout the service. It cannot be acceptable

:15:51.:15:57.

women are having to use socks and newspapers as substitutes for

:15:58.:15:59.

sanitary protection and I hope as well as cutting prices across the

:16:00.:16:02.

board we can ensure that all women have access to the protection they

:16:03.:16:08.

need. Nor is it just about money. It's about the stigma attached the

:16:09.:16:12.

basic facts of women's lives. The Prime Minister suggested he will

:16:13.:16:16.

always be expending this issue to the other 27 heads of government at

:16:17.:16:19.

the European council but the fact they had to address this issue

:16:20.:16:24.

directly is itself a great step forward for women. I am therefore

:16:25.:16:27.

glad the government has taken on board the message of the campaign

:16:28.:16:31.

and for making me the first opposition backbench MP to

:16:32.:16:37.

successfully move an amendment to a budget resolution. If nothing else I

:16:38.:16:44.

will least achieve lasting fame as a parliamentary pub quiz answer. But

:16:45.:16:52.

that does not mean her pop the back -- that does not mean our work is

:16:53.:16:57.

done. Most pressingly there's a question of what will happen from

:16:58.:17:02.

those women charities were benefiting from the tampon fund. I

:17:03.:17:08.

hope he will pledge she will continue to provide the financial

:17:09.:17:11.

support they desperately need even after this tax was scrapped and will

:17:12.:17:15.

need to take the final step by legislating through the Finance Bill

:17:16.:17:18.

at European level and I think it would be fitting of this House that

:17:19.:17:22.

chance to pass these moments prior to the referendum in June. I hope

:17:23.:17:27.

the Minister can commit to that timetable today. I hope he will be

:17:28.:17:32.

back at the dispatch box tomorrow with the expected announcement of

:17:33.:17:37.

the EE VAT action plan. This also a challenge to make sure women get

:17:38.:17:42.

full benefit and it does not simply increase profit phone manufacturers

:17:43.:17:47.

and retailers of sanitary products and I'm waiting there myself and

:17:48.:17:55.

would encourage the comment Ojomoh. I hope it will not be too much for

:17:56.:18:00.

test of our powers of persuasion to encourage them to advertise women's

:18:01.:18:04.

charities in the packaging and make donations themselves. Women have no

:18:05.:18:08.

choice but to pay companies for these products and I do hope that

:18:09.:18:11.

these companies will make the choice to help pay for our services. I

:18:12.:18:19.

thank my Honourable sister for giving way and this point for

:18:20.:18:23.

support and what the group is than this. Would she accept my concern

:18:24.:18:34.

that perhaps the definition of sanitary products needs to be

:18:35.:18:37.

slightly widened to cover things such as breast pads for mothers who

:18:38.:18:41.

are breast-feeding and maternity pads for women who have just had

:18:42.:18:44.

children and incontinence pads which are not always available to people

:18:45.:18:52.

on free VAT. I very much look forward to campaigning with her on

:18:53.:18:55.

the issues that she has just addressed. This evening we have the

:18:56.:19:02.

opportunity to make right historic injustice and make clear our intent

:19:03.:19:05.

to abolish VAT and female sanitary products and the amendment allows us

:19:06.:19:09.

to do just that and I hope the whole House will support it. It is a

:19:10.:19:17.

pleasure to follow the honourable lady for Dewsbury and at the two B

:19:18.:19:24.

to the mark she has made this place and I think I can speak for the

:19:25.:19:27.

whole House that she will be more than just the answer to a future pub

:19:28.:19:36.

quiz. It was a pleasure to follow Kenneth Clarke who is turning out to

:19:37.:19:41.

be a bit of a national treasure and outside of the House. This is a

:19:42.:19:44.

budget that puts the next-generation first and I have three young

:19:45.:19:52.

children. It continues our long-term plan to reduce the deficit and

:19:53.:19:56.

achieve surpluses as a long-term solution to long-term problems. To

:19:57.:20:00.

ensure that Britain is in a strong economic position for the future.

:20:01.:20:06.

Back to work in my constituency neighbour, the Chancellor, -- thanks

:20:07.:20:11.

to the work. The old BR protects growth rates for Britain in excess

:20:12.:20:16.

of 2% for the remainder of the Parliament. Eyes-mac all BR. --OBR.

:20:17.:20:30.

The challenges of the country faces a growing global stock markets have

:20:31.:20:34.

had the worst performance for 45 years and the sharp fall in the

:20:35.:20:39.

prices and commodities has contributed to slower global growth.

:20:40.:20:44.

Eight years ago the UK was one of the worst prepared to face the

:20:45.:20:49.

financial pricess crisis and today the UK is one of the best prepared

:20:50.:20:54.

and we have fixed the roof of the sun was shining. Against the

:20:55.:20:58.

backdrop of global uncertainty this budget that the lover 's security --

:20:59.:21:09.

deliver security. 60% of all private sector employment, the combined

:21:10.:21:18.

annual turnover of S M E was nearly half of all private sector turnover

:21:19.:21:24.

denied a kingdom. I welcome the announcement from last week

:21:25.:21:29.

statement that business rate relief will be doubled permanently.

:21:30.:21:31.

Businesses with a writable value of ?12,000 below will receive relief.

:21:32.:21:40.

-- rateable. 6000 small businesses across the country will have no rate

:21:41.:21:53.

at all. I welcome the 600,000 small businesses will be taken out of

:21:54.:21:57.

business rates. But that does not happen for a year. Retail business

:21:58.:22:04.

rate relief is worth ?1500 and that has been abolished so small shop

:22:05.:22:09.

owners will still have to pay extra. Is that not disappointing? I bow to

:22:10.:22:15.

his greater knowledge of small businesses. I know we does a great

:22:16.:22:19.

job in Rochdale. We cannot do everything the same time but overall

:22:20.:22:22.

I do welcome this budget and I'm sure he will welcome the overall

:22:23.:22:25.

message to support businesses and help them with those relieves. There

:22:26.:22:37.

will be tapered relief. 2000 properties in Holton and 7000 in

:22:38.:22:42.

Cheshire West have a rateable value of the low ?50,000 and would benefit

:22:43.:22:47.

substantially from these changes. Golding in northern powerhouse and

:22:48.:22:49.

rebalancing the national economy is all part of the economic strategy of

:22:50.:22:55.

this government. In 2015 doubled over have a million more businesses

:22:56.:22:59.

established as a London in the south-eastern in 2010 and one third

:23:00.:23:02.

of new businesses are in the northern powerhouse and overwhelming

:23:03.:23:05.

evidence is that these new businesses are creating more and

:23:06.:23:10.

more jobs. In my constituency unemployment is down by 57% since

:23:11.:23:15.

2010 and almost three quarts of the growth employment has been in

:23:16.:23:19.

full-time jobs and real wages are rising strongly. Since 2010 the have

:23:20.:23:25.

been around 4000 new housing starts in Cheshire West and Chester and

:23:26.:23:32.

just over 2000 in the Holton and Runcorn area. They are up by 91%

:23:33.:23:40.

when compared by the low point in 2009. Local authorities will be able

:23:41.:23:44.

to access 1.2 billion starter homeland funds to bail to prepare

:23:45.:23:49.

more brown field sites for starter homes in my constituency which is

:23:50.:23:57.

legacy Brownfield sites from ICI. This is helping young people in the

:23:58.:24:00.

20s and 30s to buy their first home and crucially protecting our green

:24:01.:24:06.

belt and helping more people on the property ladder. UK was the

:24:07.:24:10.

fastest-growing major advanced economy 2014 in the second fastest

:24:11.:24:15.

2015 and is forecasted by the old BCD to be the fastest-growing in

:24:16.:24:29.

2016. -- old BCD. --OBCD. Under Labour one in every ?4 was borrowed

:24:30.:24:34.

and now it is one in every 14. We will build up a surplus by the end

:24:35.:24:38.

of this Parliament. The snooze button from a high tax on high

:24:39.:24:44.

welfare low-wage economy and next year the long awaited messy Gateway

:24:45.:24:50.

Bridge will be opened by a Conservative government. --Mersey.

:24:51.:25:00.

This reminds the world that Great Britain and the north of England is

:25:01.:25:07.

open for business. I would like FMA to advance the argument made by the

:25:08.:25:10.

honourable gentleman for East Lothian. Productivity was central

:25:11.:25:18.

economic challenge of the Parliament, according to the

:25:19.:25:21.

Chancellor last year. It failed to address the productivity gap between

:25:22.:25:26.

ourselves and our competitors and that would be addressed by the

:25:27.:25:32.

government producing July 2015 productivity plan. In this like

:25:33.:25:37.

committee of enquiry into the plan funded to somewhat worthy but vague

:25:38.:25:45.

and without the firm delivery and implementation measures need to

:25:46.:25:46.

truly addressed the productivity challenge.

:25:47.:26:00.

The downgrade to productivity in last week's budget reinforces the

:26:01.:26:06.

view of the select committee that although many measures in the Plan A

:26:07.:26:10.

welcome they did not constitute a radical departure or step change

:26:11.:26:15.

that would boost productivity. As the OBR stated in its report last

:26:16.:26:19.

week, lower productivity growth means lower forecasts for company

:26:20.:26:26.

profits and also consumer spending and business investment. In

:26:27.:26:30.

aggregate this reduces tax receipts significantly. To ensure

:26:31.:26:35.

productivity improvements, that requires a sustained approach to

:26:36.:26:40.

business investment. It shows how much business investment that engine

:26:41.:26:43.

that will power better competitiveness and create better

:26:44.:26:49.

employment and higher living standards has actually stalled. Real

:26:50.:26:52.

business investment fell in the final quarter of last year. The

:26:53.:26:57.

manufacturing sector in our country is in recession. The OBR forecast

:26:58.:27:05.

business investment will be 2.67% in 2015. A massive percentage point we

:27:06.:27:07.

care than four months ago in the Autumn Statement. The

:27:08.:27:15.

not helping. The Chancellor should be in courage in firms to invest in

:27:16.:27:17.

the latest technology, plant and machinery, to ensure they can

:27:18.:27:21.

compete with the most modern kit anywhere in the world. The most

:27:22.:27:25.

modern kit anywhere in the world, as well as investing in research and

:27:26.:27:29.

innovation to ensure British-based firms are coming forward with the

:27:30.:27:34.

goods, services, and products the world will -- the world wants to

:27:35.:27:40.

buy. Isn't that why the Chancellor has cut corporation tax and capital

:27:41.:27:45.

gains tax? To encourage companies of all sizes to invest in research and

:27:46.:27:53.

development and jobs of the future. Capital gains tax, I would suggest

:27:54.:27:57.

it is contrary to having a long-term economic plan. You do not scale up,

:27:58.:28:03.

you sell out quickly. That is a major structural concern. To a large

:28:04.:28:08.

extent, the Chancellor, in this parliament, has done positive things

:28:09.:28:11.

when it comes to encouraging investment, particularly with annual

:28:12.:28:14.

investment allowances. These are very welcome. Other countries are

:28:15.:28:20.

doing much more. Britain risks missing out. Addressing the huge

:28:21.:28:25.

disincentive in business rates for firms wanting to invest in new plant

:28:26.:28:28.

and machinery should have been at the very top of the Tunstall's list.

:28:29.:28:34.

Although changes to business rates. All businesses constitute the

:28:35.:28:39.

largest tax cut of this budget, it does seem ridiculous that the

:28:40.:28:42.

Chancellor did not resolve what is a ludicrous situation. This is

:28:43.:28:47.

important in terms of different sectors. The ludicrous situation

:28:48.:28:53.

where a firm faces a larger tax bill in the form of big business rates by

:28:54.:28:56.

investing in new plant and machinery. For a government pledging

:28:57.:29:00.

all it can to be balanced the economy and specifically in the last

:29:01.:29:05.

six to seven months to help the hard-hit British Steel industry, the

:29:06.:29:09.

omission of a single measure from the budget was a significant blow,

:29:10.:29:16.

particularly the steel industry. Thank you for giving way. It seems

:29:17.:29:22.

there is only one club in the Conservative golf bag and that is

:29:23.:29:26.

taxes alone. You have to face up to having a low-wage economy and the

:29:27.:29:32.

lack of housing. House-building is low as well. Workers need houses.

:29:33.:29:39.

Productivity will remain low. That is important point in terms of

:29:40.:29:43.

infrastructure. There was little in this budget to address that. I

:29:44.:29:46.

mentioned the possibility of rebalancing. The Government

:29:47.:29:52.

announced proudly in 2012 target of ?1 trillion of exports by 2020. I am

:29:53.:29:57.

all for ambition and stretching targets. Given the Government's

:29:58.:30:00.

limited ability to shift the needle of the value of exports, this

:30:01.:30:06.

ambition, this target, it seemed, at best, misplaced, and, at worst,

:30:07.:30:11.

foolish. The OBR stated the Government will miss its target by

:30:12.:30:20.

30%, ?357 billion. Net trade will actually be a drag on economic

:30:21.:30:25.

growth for every single year of this Parliament. There was nothing in

:30:26.:30:29.

this budget to boost exports. That did not pass from the Chancellor's

:30:30.:30:34.

lips in his statement and was not mentioned this morning. Does this

:30:35.:30:37.

mean the Government has shelved this target? Well the ministers consider

:30:38.:30:42.

providing assistance and encouragement in the form of export

:30:43.:30:46.

vouchers to ensure firms will Britain can invest and export?

:30:47.:30:55.

Further way to boost productivity is by investing in skills. The flagship

:30:56.:30:57.

skills policy is the target of 3 million apprenticeships by 2020.

:30:58.:31:02.

Only 2% of large firms will be paying less. In terms of the 98

:31:03.:31:06.

cents of other firms and what will happen in terms of the detail of the

:31:07.:31:11.

levy, we were promised by the Minister of State for skills in the

:31:12.:31:14.

run-up to the budget all would be revealed, like this new shiny model,

:31:15.:31:18.

in the Chancellor's budget statement. For a bill that is

:31:19.:31:24.

putting the next-generation first, there is precious detail about how

:31:25.:31:29.

the apprenticeship levy will actually operate in practice. As

:31:30.:31:34.

with exports, the word apprenticeships was not mentioned by

:31:35.:31:39.

the Chancellor. With the honourable member agree one of the biggest

:31:40.:31:45.

drags skill wise is intermediate and higher intermediate skills level? We

:31:46.:31:50.

have had this problem for 30 years. The honourable gentleman makes an

:31:51.:31:53.

important point. While trying to ramp up the level, the quantity of

:31:54.:31:59.

apprenticeships while having the major change to institutional

:32:00.:32:03.

architecture of apprenticeship delivery, I think the Government

:32:04.:32:07.

risks missing its target. The skills policy of this government will be

:32:08.:32:17.

affected. This will be remembered but for all the wrong reasons.

:32:18.:32:22.

Incompetence, callousness, clumsiness and the resignation of a

:32:23.:32:28.

Cabinet minister. It will be remembered for downgraded

:32:29.:32:31.

productivity and failure to address this, leading to falling living

:32:32.:32:36.

standards, lower tax receipts and deteriorating public finances. The

:32:37.:32:39.

budget has helped to make this country somewhat poorer. I rise to

:32:40.:32:45.

support the budget and in particular to welcome the Government's reforms

:32:46.:32:52.

which are most welcome. It has been du Matic budget. I feel like I would

:32:53.:32:55.

be failing the Government if I did not concentrate my words on the

:32:56.:33:00.

areas of drama and first on the disability reforms. The challenge

:33:01.:33:04.

before the Government is very clear. It is to deliver a policy which all

:33:05.:33:10.

of us can be proud to defend in our constituencies in front of any

:33:11.:33:15.

objective scrutiny. I do not think we would have been able to lift the

:33:16.:33:17.

Government had not made the decisions it has in the last few

:33:18.:33:24.

days. When I look at the OBR report, page 150, the successive forecast

:33:25.:33:28.

was spending on disability benefits, I can see the Government's envelope

:33:29.:33:33.

to deliver this policy is very clear. When we came to power in

:33:34.:33:39.

2010, the Government was spending ?12 billion on disability benefits.

:33:40.:33:44.

It rose to 16 billion. By now an increase of a third. It is forecast

:33:45.:33:49.

with the reverse of these measures to reach 18 billion by 20 20, 20 21.

:33:50.:33:54.

It is clear the Government has an envelope in which to work to ensure

:33:55.:33:58.

it has a world-class policy which any of us can defence, even in an

:33:59.:34:03.

environment of fierce partisan political attack. I'd like to turn

:34:04.:34:07.

to be a TV we have had two amendments tabled. The purpose of

:34:08.:34:12.

signing these was to highlight the extent to which VAT was highlighted

:34:13.:34:23.

in European Union. Neither amendment has legislative effect. As the

:34:24.:34:27.

member for Dewsbury said, what it does is make clear our content to

:34:28.:34:31.

zero rate tampons and other sanitary products. Both these amendments are

:34:32.:34:37.

pursuing to government policy. This is the bitter irony to our

:34:38.:34:40.

membership of the EU. We have had to have a dramatic row over the VAT in

:34:41.:34:46.

the context of an EU referendum in order to secure a commitment as

:34:47.:34:58.

follows from the European Council. There will be proposals for

:34:59.:35:01.

increased flexibility for member states with respect to reduce rates

:35:02.:35:12.

of VAT which would provide zero rating for sanitary products. It is

:35:13.:35:16.

clear the wish of the house is that sanitary products would be zero

:35:17.:35:20.

rated. It would be diverging from EU policy and it is welcome the

:35:21.:35:24.

Government has secured this change of EU policy. I not want us to have

:35:25.:35:33.

an EU membership referendum every time we want to have a different

:35:34.:35:38.

policy on our second largest tax. I give way. When you say British

:35:39.:35:44.

governments have always supported the framework on the 80, the problem

:35:45.:35:50.

is you have pressure on governments to compete with each other in

:35:51.:35:54.

lowering the tax on selected products where they think

:35:55.:35:57.

manufacturers will benefit all producers will benefit. Also, it is

:35:58.:36:03.

about having an open trade area where everyone will have

:36:04.:36:07.

competitively different tax rates. The main beneficiaries are

:36:08.:36:12.

smugglers. You mention some interesting points. I am grateful

:36:13.:36:18.

for the minute he has given me. What he indicates is the difficulty in

:36:19.:36:23.

operating a customs union amongst interventionist states. The old

:36:24.:36:26.

doctrines of liberalism did not require one to get rid of non-trade

:36:27.:36:33.

barriers because there were none. I abridge an argument one could make

:36:34.:36:37.

over a much greater length. At the heart of the exchange we have just

:36:38.:36:42.

had, at the heart of that is the difficulty we face of having

:36:43.:36:46.

interventionist nation states attempting to engage in free trade.

:36:47.:36:53.

In a world of globalisation and the internet, what we need is

:36:54.:36:56.

harmonisation on a global scale which enjoys democratic consent. I

:36:57.:37:02.

am grateful for your intervention. It is the case that until the aid to

:37:03.:37:15.

directive, it -- until the EU directive, it will become law even

:37:16.:37:20.

if it is not applied. A similar situation on insulation products

:37:21.:37:26.

where a 4th of June judgment in the European Court of Justice ruled the

:37:27.:37:32.

UK cannot apply a reduced rate of VAT to the supplying of energy

:37:33.:37:39.

materials. That is solely for social housing. That is the position in law

:37:40.:37:44.

while we are in the EU. I hear what my right honourable friend but it is

:37:45.:37:47.

a fact that while we remain in the EU we cannot control what is

:37:48.:37:51.

currently our second biggest tax. I am very grateful we have had this

:37:52.:37:57.

opportunity to put this part of the EU membership debate on record and

:37:58.:38:02.

discussed in the media. I'm grateful the Government will not oppose

:38:03.:38:06.

either amendments. If there is a division, I will vote for a and

:38:07.:38:12.

probably abstain on the other. I want to talk about what is possibly

:38:13.:38:18.

the most Matic aspect of this budget. I have talked about it in

:38:19.:38:23.

every budget. The subject I mentioned in the maiden speech. The

:38:24.:38:27.

insane state of monetary policy all around the world. If the European

:38:28.:38:32.

Central Bank was printing up 80 billion euros of new money every

:38:33.:38:36.

month in paper and shipping it around the continent in articulated

:38:37.:38:38.

lorries, I think they would already have undermined faith in paper

:38:39.:38:44.

currency and destroyed it. Because it is done through corporate bonds,

:38:45.:38:49.

we simply notice the recirculation of money. In 25 seconds I cannot

:38:50.:38:56.

give a lecture on capital -based macroeconomics but if the honourable

:38:57.:39:00.

members of is that like to call a backbench debate in in time, I would

:39:01.:39:05.

be happy to give a lesson. The dramatic consequences will be felt

:39:06.:39:08.

much later than they are today as a result of easy money. Thank you. The

:39:09.:39:20.

Government was a story of missed targets for the Chancellor, missed

:39:21.:39:26.

opportunities for our country. It is rapidly turning into a total and at

:39:27.:39:31.

a mess. I am pleased to see some of the U-turns but much more is needed.

:39:32.:39:36.

I would like to start by associating myself with the remarks made by my

:39:37.:39:41.

honourable friend, the member for Hartlepool, and the chair of the

:39:42.:39:45.

business select committee. He spoke about the importance of rebalancing

:39:46.:39:48.

our economy. That is so much needed after some of the numbers we saw in

:39:49.:39:55.

the budget last week. As a result of the lower productivity and the lower

:39:56.:39:58.

exports and other things my honourable friend has spoken about,

:39:59.:40:02.

economic growth has been revised down for every single year of this

:40:03.:40:07.

Parliament. A staggering ?71 billion has been knocked off our tax

:40:08.:40:11.

revenues. The Government is now set to borrow an extra ?38 million over

:40:12.:40:16.

the next five years that is why, after breaking his promise to clear

:40:17.:40:21.

the deficit in the last parliament, the Chancellor has broken his pledge

:40:22.:40:25.

to bring the debt down as a share of GDP in this Parliament as well.

:40:26.:40:41.

You would not have a lot more waiting credibility had her

:40:42.:40:46.

government and thought opposed every single one of the cuts that had to

:40:47.:40:54.

be made? I wonder if he still feels we should go ahead with cuts? It

:40:55.:41:04.

sounds like it from those remarks. Let me go on with issues around

:41:05.:41:07.

personal independence payments and the impact this comment is sad on

:41:08.:41:14.

disabled people. Let's remember the border points. This is a government,

:41:15.:41:21.

the Chancellor and by minister and former and present Secretary of

:41:22.:41:24.

State for Work and Pensions who forced through the bedroom tax

:41:25.:41:29.

affecting 500,000 people, the majority of those disabled, affected

:41:30.:41:33.

by ?700 per year. They forced through the closure of the

:41:34.:41:36.

independent living fund and forced to cuts in employment supported

:41:37.:41:40.

living allowance affecting 500,000 people with around ?30 per week am

:41:41.:41:44.

not one and a half thousand pounds per year. The U-turn and personal

:41:45.:41:51.

independence payments, while welcome, was only a fraction of the

:41:52.:41:55.

damage of the pain they of course to disabled people by constituencies.

:41:56.:42:01.

Let's be clear as well about what the shooter naturally means because

:42:02.:42:06.

the new Secretary of State into the chamber yesterday so the government

:42:07.:42:09.

are not going to go back to the welfare bill and to disabled people

:42:10.:42:13.

for further cuts that during the course of the statement yesterday

:42:14.:42:15.

afternoon that became what down a little bit. They now have new plan

:42:16.:42:29.

to combat the -- come back to the welfare budget and new plans. I will

:42:30.:42:39.

idea from the Chief Secretary when he went up this evening whether

:42:40.:42:44.

there are no plans for the government can guarantee that there

:42:45.:42:47.

will be no further cuts to the welfare budget and will be no

:42:48.:42:50.

further cuts to the benefits of disabled people. We do know after

:42:51.:42:55.

all of those that that is a black hole in the public finances of ?4.4

:42:56.:43:01.

billion and if it is not for disabled people who will be the

:43:02.:43:06.

people paying the price? Will be further cuts to education and health

:43:07.:43:10.

and defence and police? Will be further increases in taxes and VAT

:43:11.:43:14.

and taxes on ordinary working people? Something needs to give a

:43:15.:43:20.

mini dance about how this black hole in this budget that we reported on,

:43:21.:43:25.

we do not know what that means. What does it mean for all the different

:43:26.:43:31.

groups of people? As the chair of the office for budgets but ability

:43:32.:43:35.

told us at the select committee meeting this morning, it is not just

:43:36.:43:41.

that that is ?4.4 billion black hole in the Social Security budget. The

:43:42.:43:43.

government have failed to meet the well field target and warfare-- have

:43:44.:43:57.

failed to meet the target and will feel every year. Why did the get

:43:58.:44:06.

into this mess? Act-mac will fail. They wanted to cut capital gains tax

:44:07.:44:15.

and want to increase the threshold for you started paying the 40p tax

:44:16.:44:23.

and wanted to raise the ice limit to ?20,000 which is great if you have

:44:24.:44:33.

the money. --ISA. That is why the government raided the Social

:44:34.:44:38.

Security budget again to give tax breaks to their friends, the

:44:39.:44:42.

wealthiest in society. The budget could've been different and the

:44:43.:44:44.

government could have more money infrastructure investment. In my

:44:45.:44:48.

constituency invades we are paying a heavy price for the floods on the

:44:49.:44:52.

26th of December. The Chancellor said earlier that I should've

:44:53.:44:57.

welcomed the money for flood defences but in truth 2011 Southern

:44:58.:45:04.

government cancelling flood defence scheme and Leeds ?135 million and

:45:05.:45:10.

have now put in money from Leeds for ?35. I'm sorry for not thanking him

:45:11.:45:15.

that 35 million rather than 135 million is not really worth it

:45:16.:45:19.

thanks and businesses are my constituency will pay a heavy price

:45:20.:45:28.

of those come again. I was with the Environment Agency just last night

:45:29.:45:31.

they were telling me that they will not have sufficient funds to put in

:45:32.:45:36.

measures to stop future flooding, particularly with catching

:45:37.:45:43.

management. -- catchment. The reality is that the government

:45:44.:45:47.

announced last week under ?59 for York and Leeds and for Cumbria but

:45:48.:45:53.

the scheme that was cancelled just in Leeds was worth ?135 million in

:45:54.:46:00.

that 150 million is for flood defences and flood resilience and

:46:01.:46:04.

flood maintenance see it again the government is short-changing the

:46:05.:46:07.

people who at this time need the government to step up to the mark as

:46:08.:46:13.

our volunteers and York and Leeds who was stepping in when the rains

:46:14.:46:19.

fell and the visuals and houses and buildings were flooded. The budget

:46:20.:46:23.

could be different last week, it could be a different budget for

:46:24.:46:26.

disabled people there could've been a budget that helped ordinary

:46:27.:46:30.

working people and those most vulnerable society and the could've

:46:31.:46:34.

put them money into the northern powerhouse with the infrastructure

:46:35.:46:37.

that we need to stop it was a different budget because this

:46:38.:46:40.

government has different priorities which is why we need a Labour

:46:41.:46:43.

government on the side of order working people and the most

:46:44.:46:47.

honourable and our society. -- ordinary working people. The

:46:48.:46:53.

honourable people makes a strong case but is is desperately flawed.

:46:54.:46:57.

She knows in the 13 years of Labour government the gap between the

:46:58.:47:01.

richest and poorest 10% actually widened and under her party this

:47:02.:47:09.

situation where we sell recognise is of children workless households and

:47:10.:47:15.

unemployment and youth unemployment rose. He makes a very powerful

:47:16.:47:23.

point. So many gaps were created under 13 years of Labour and

:47:24.:47:33.

particularly the north South divide. This high-speed train from

:47:34.:47:40.

Manchester to Leeds will cut journey times to the magpie 30 minutes. --

:47:41.:47:46.

will cut journey times by 30 minutes. The previously but

:47:47.:47:55.

government and economic circumstances driven by debt and

:47:56.:47:59.

borrowing failed to do this. I welcome this budget in general terms

:48:00.:48:04.

and I took issue with the comments of the Chancellor about Brexit. I

:48:05.:48:11.

think the anodyne comments of the old BR were represented -- OBR were

:48:12.:48:28.

misrepresented. It was largely a neutral budget and I welcome the

:48:29.:48:35.

lifetime ISA and the tax crackdown on offshore property developers and

:48:36.:48:39.

tax pricing and it was good to see the changes in personal loans which

:48:40.:48:43.

will take many my constituents and Peterborough out of tax and in my

:48:44.:48:46.

constituency women are in a very posh position. I pay tribute to the

:48:47.:48:52.

charge before nothing short of jobs medical and we have seen the largest

:48:53.:48:55.

reduction and youth unemployment in the history of my seat which is 70%.

:48:56.:49:09.

That record apprenticeships -- that our record numbers apprenticeships.

:49:10.:49:20.

I welcome the decision to resign from the commitment on PIP. It is a

:49:21.:49:28.

U-turn. Very well spotted by the benches opposite. It was absolutely

:49:29.:49:43.

right to do this. It was right for my honourable friend to point out

:49:44.:49:53.

the juxtaposition of tax reductions for people back to the party

:49:54.:49:56.

opposite voted against every single welfare change in the previous

:49:57.:49:59.

government. Being in opposition actually you are encumbered in

:50:00.:50:06.

coming through with a coherent and comprehensive alternative in terms

:50:07.:50:13.

of fiscal policy. And in public expenditure and tax. Can I race to

:50:14.:50:17.

particular issues which of Cosmo some concern with the budget? One is

:50:18.:50:28.

concerning the problem the government has encountered which has

:50:29.:50:32.

given rise to a proper debate about generational fairness and the need

:50:33.:50:37.

to look again at pensioner benefits. It cannot be right to effectively be

:50:38.:50:43.

making, and I very rarely agree with my right honourable friend and

:50:44.:50:57.

everything but it is wrong morally I believe to make large-scale

:50:58.:51:01.

transfers of wealth from the young to the old. I think there has to be

:51:02.:51:05.

a consensus. One of the suggestions I would make is that if you are

:51:06.:51:08.

going to means test pensioner benefits, he perhaps the event it

:51:09.:51:16.

towards the most acute societal issue we have at the moment which is

:51:17.:51:20.

adult social care and coordination and integration between acute

:51:21.:51:24.

district hospitals and providing care and housing for older people. I

:51:25.:51:27.

think that our older pensioners who would understand that and I think it

:51:28.:51:30.

is something the Treasury would need to go forward with. They need to

:51:31.:51:34.

look at it very seriously. The second issue of concern is, as we

:51:35.:51:39.

speak, Cambridge county council, which is not my local authority, is

:51:40.:51:46.

looking at the devolution plans for East Anglia. I think at the moment

:51:47.:51:51.

they do not stack up. I think we have not had enough information and

:51:52.:51:59.

we do not know and in some senses I am reprising the comments of my

:52:00.:52:01.

honourable friend for Northwest North Fork yesterday? -- Norfolk

:52:02.:52:11.

yesterday. , it needs to be finessed and we need to carry businesses with

:52:12.:52:17.

this and both local enterprise partnership did not agree with that

:52:18.:52:19.

and the majority of councils are at best ambivalent, including Cambridge

:52:20.:52:24.

City Council which has refused it, we need to look at again. It may be

:52:25.:52:33.

that there are synergies between Lowestoft and Peterborough are

:52:34.:52:39.

between Norwich and Ipswich but I'm yet to see them. Let's have more

:52:40.:52:44.

information about the funding and about governance and about

:52:45.:52:47.

infrastructure spending in the role of executive may and what will

:52:48.:52:55.

happen to existing local government structure. -- Maher. --Mayor. We

:52:56.:53:08.

need more facts and that is the challenger gift to the Treasury fund

:53:09.:53:13.

bends. We learned many things from the budget last week and perhaps

:53:14.:53:17.

more from the followed sense but the overriding message we seem to be

:53:18.:53:20.

getting is that six years into this job is Chancellor cannot keep a

:53:21.:53:26.

promise and does not seem to learn from his past shambolic budget

:53:27.:53:29.

mistakes. He promised to balance the books by last year and get debt

:53:30.:53:36.

falling as a percentage of GDP each year and keep welfare spending

:53:37.:53:39.

within his welfare cap but in virtually all his own fiscal targets

:53:40.:53:46.

the independent Office for Budget Responsibility confirmed last week

:53:47.:53:48.

that he has failed to deliver. Of course this government and its

:53:49.:53:54.

shortcomings go much further than the meaningless targets of the

:53:55.:53:57.

Chancellor. A mere six months ago the premise that all this party

:53:58.:54:00.

conference that he would govern according to one nation modern,

:54:01.:54:05.

compassionate conservatism. This is the same premise that featured on a

:54:06.:54:12.

budget cut capital gains tax and further cut corporation tax and

:54:13.:54:18.

which would see the poorest losing around ?1500 per year in the next

:54:19.:54:22.

two years while some of the richest with action against ?200. To top it

:54:23.:54:30.

off, the Chancellor pledged to slash disability benefits by up to ?1.3

:54:31.:54:34.

billion per year which the Office for Budget Responsibility estimated

:54:35.:54:41.

it would see disabled people move an average of three and thousand pounds

:54:42.:54:46.

per year. Context on the point of capital gains tax. I believe Jim

:54:47.:54:52.

Callaghan crated capital gains tax when he was Chancellor in 1965. It

:54:53.:54:59.

has always been under label Chancellor is the capital gains tax

:55:00.:55:03.

has been lower than under Conservative chancellors. The

:55:04.:55:05.

capital gains tax, even after this change, will be 2% higher under this

:55:06.:55:11.

Chancellor than it was under Alistair Darling and indeed Gordon

:55:12.:55:17.

Brown the last Labour government. -- in the last Labour government.

:55:18.:55:25.

I do not understand the point made by the honourable gentleman. He is

:55:26.:55:42.

talking about that and not the fact it impacts most on the poorest and

:55:43.:55:48.

most bombed rubble in society. I am angry those people who rely on the

:55:49.:55:56.

personal independent payment, 1100 people in Newcastle North, have

:55:57.:55:59.

enjoyed days and weeks of anxiety about how they would cope if that

:56:00.:56:04.

level of support were cut. It is unforgivable. I remain equally

:56:05.:56:10.

concerned about how existing reforms to PIP are failing people.

:56:11.:56:14.

Constituents continue to get in touch with me following my recent

:56:15.:56:17.

question to the Prime Minister because they have been told they are

:56:18.:56:22.

no longer eligible for a mobility vehicle, despite it being the only

:56:23.:56:26.

means they leave the house or get to work. The new assessment is

:56:27.:56:32.

fundamentally flawed. I strongly urge the Work and Pensions Secretary

:56:33.:56:38.

and the Chief Secretary to the Treasury today to take some fresh

:56:39.:56:43.

eyes and to revisit this issue and look at reforming the current PIP

:56:44.:56:49.

changes before they embark on any further welfare reform. Despite the

:56:50.:56:54.

Chancellor's called Revolution in the way we govern England with the

:56:55.:56:59.

pledge last made to give local areas greater control over housing, skills

:57:00.:57:04.

and health care, it appears the Chancellor does not place the same

:57:05.:57:09.

faith in local communities when it comes to schools. Last week, they

:57:10.:57:13.

confirmed far from handing control, the Government is about to embark on

:57:14.:57:17.

the greater centralisation of a school system that will see the end

:57:18.:57:26.

to a century-old role about education. There is a glaring lack

:57:27.:57:33.

hole in the financing of this plan. That raises questions about the

:57:34.:57:37.

extent to which the schools budget will be raided to make up the

:57:38.:57:42.

shortfall. He mentioned the schools budget. I do not know whether she is

:57:43.:57:48.

aware that in Coventry already one or two academies are in serious

:57:49.:57:52.

trouble due to falling numbers as a result of changes in education

:57:53.:57:58.

budgets. I appreciate the question raised by my honourable friend. It

:57:59.:58:03.

is not just local academies that are in trouble. I think there are much

:58:04.:58:07.

bigger than serious questions we need to raise. First of all, why is

:58:08.:58:13.

the Government doing this? There is no proof whatsoever that academies

:58:14.:58:18.

raise educational standards. It is a distraction that schools need to

:58:19.:58:22.

focus on this rather than focusing on educational attainment in

:58:23.:58:26.

schools. How will the Government unable that local political

:58:27.:58:29.

leadership to drive up standards and work together when it has worked so

:58:30.:58:37.

effectively with the London challenge. Power and decision-making

:58:38.:58:41.

must be so centralised in Whitehall. If the Department for Education --

:58:42.:58:47.

is the Department for Education fit for purpose to deal with 20,000

:58:48.:58:53.

schools across the country? Almost 1700 primaries. There are signs it

:58:54.:58:59.

is struggling with the current workload for the 4000 schools it

:59:00.:59:04.

has. The education select committee has recently uncovered the

:59:05.:59:07.

department could not deliver its annual accounts to Parliament in

:59:08.:59:16.

time and is requiring a statutory extension. This will only add to the

:59:17.:59:21.

current mess. The only have to look at the fiasco of the Free School

:59:22.:59:25.

application process. There is no clear rhyme or reason to the

:59:26.:59:30.

Department decisions to authorise new schools. We see a department in

:59:31.:59:34.

disarray. A particular concern for my constituents is how this process

:59:35.:59:38.

will fit alongside the large-scale house building that is planned for

:59:39.:59:42.

our area as a result of the coalition's national planning

:59:43.:59:48.

framework. There will be 21,000 new homes expected to be built in

:59:49.:59:55.

Newcastle by 2030. It will require new school capacity. Who will be the

:59:56.:59:59.

guiding mind in terms of matching and creating the new school capacity

:00:00.:00:06.

in an area that is now going to be controlled by Whitehall? Newcastle

:00:07.:00:09.

City Council ready finds itself in the impossible position of being

:00:10.:00:13.

unable to establish new schools to cope with existing demand. How can

:00:14.:00:18.

it deliver the right places across Newcastle North when every school is

:00:19.:00:23.

accountable to be Secretary of State? Finally, Madam Deputy

:00:24.:00:27.

Speaker, as well as apprenticeships not being mentioned in the

:00:28.:00:33.

Chancellor's budget, there was another glaring omission, the lack

:00:34.:00:35.

of any announcement as to how the Government intends to protect

:00:36.:00:40.

regional airports as a result of devolving air passenger GT to

:00:41.:00:44.

Scotland. It is crucial. It supports 12,000 jobs in the region and

:00:45.:00:50.

exports ?300 million of goods in the New Year. All talk of the Northern

:00:51.:00:54.

powerhouse is undermined if the Chancellor fails to deal with this

:00:55.:01:00.

issue urgently. Thank you. It is a pleasure to follow you. This budget,

:01:01.:01:06.

like my right honourable friend's review budget helps create jobs.

:01:07.:01:09.

That is the right thing to do. That is why continue to support the

:01:10.:01:13.

strategy of lowering business taxes to encourage growth. The business

:01:14.:01:23.

rates measure will help 600,000 businesses cutting taxes. My

:01:24.:01:27.

honourable friend in Newark has talked about this. There has been

:01:28.:01:34.

reforms in stamp duty. This will help the smallest businesses of all.

:01:35.:01:40.

This government has my whole hearted support in putting the next

:01:41.:01:45.

generation first. On this side of the House, we will say debt is the

:01:46.:01:50.

most unethical thing of all to lead to the next generation. We must pay

:01:51.:01:55.

down the country's debts. Reducing spending and not having consent of

:01:56.:01:59.

those yet to come and steer towards a surplus which puts public finances

:02:00.:02:06.

in the strongest edition today. It is also crucial for

:02:07.:02:08.

intergenerational fairness to make it feasible for young people to buy

:02:09.:02:13.

a home, or to save into a pension. That is why I think a lifetime I

:02:14.:02:20.

said in this budget is positive. -- Isa. Ultimately, building homes

:02:21.:02:29.

itself is the most important way to ensure a home at prices that can be

:02:30.:02:34.

afforded. I urge the Chancellor and housing ministers to continue to

:02:35.:02:40.

build. With the average pay for someone on zero hours contract being

:02:41.:02:51.

?189 a week. Does she expect them to save for an Isa or save for a house?

:02:52.:02:57.

The percentage remains at 2.5% of the total number in work. As he will

:02:58.:03:04.

know for every ?4 somebody saves, the Chancellor will give one. That

:03:05.:03:10.

means, at the rate for example he cites, it is possible to consider

:03:11.:03:16.

taking up a savings product. It is also vital, there is every

:03:17.:03:23.

opportunity for a person may have of education and skills training. That

:03:24.:03:26.

is why this government is right to keep up job creation and investment

:03:27.:03:29.

in infrastructure. The description we look to represent the values of

:03:30.:03:38.

this next generation. We talk about value enterprise. Many will set up

:03:39.:03:42.

their own businesses and work in a totally different pattern over their

:03:43.:03:46.

lifetime. The budget is smart to turn attention to the growing army

:03:47.:03:49.

of the self-employed and many of the smallest businesses of all, as I

:03:50.:04:00.

say, -- as I say. Could I congratulate the Government on the

:04:01.:04:08.

start up scheme? I welcome that reminder. He would also agree with

:04:09.:04:15.

me on my next point which is that we should also price the ethical value

:04:16.:04:20.

towards business, which we see in many entrepreneurs. We should

:04:21.:04:24.

welcome measures in this budget which continue to make sense at

:04:25.:04:29.

taxing multinationals in the 21st century. We must ensure our tax

:04:30.:04:33.

system demands and get a fair contribution from companies large

:04:34.:04:39.

and small, domestic and global. Let meal so turn to the welfare measures

:04:40.:04:47.

in this budget. It is well documented there is a sceptical

:04:48.:04:53.

approach to the welfare state. This has steadily declined. We should

:04:54.:04:57.

remind ourselves on the principles of welfare. It is a safety net for

:04:58.:05:01.

when we are unable to look after ourselves, perhaps because of

:05:02.:05:05.

sickness, old age and disability. We will all need this in one way or

:05:06.:05:09.

another. You'll have responsibly tee to maintain it. Because we will

:05:10.:05:14.

longer than previous generations, we need to make sure it is affordable

:05:15.:05:18.

for the future. We expect the richest to pay the most. In summary

:05:19.:05:22.

we need a sensible method of working out who needs the most support and

:05:23.:05:27.

getting it to them. I do not support the measures that have been

:05:28.:05:29.

announced in this budget which sought to reduce support for

:05:30.:05:34.

disabled people through PIP. The manifesto which I stood for and they

:05:35.:05:39.

stood for suggest we would spend less on the welfare budget and would

:05:40.:05:42.

do so by protecting the most vulnerable. I have supported welfare

:05:43.:05:51.

reforms since 2010. The most recent reform of the rates, for those who

:05:52.:06:00.

get FAA, can work, puts work first. In the 21st-century we should not be

:06:01.:06:05.

writing the blog from work and independence. That particular policy

:06:06.:06:10.

is right on helping people to be able to work despite the disability

:06:11.:06:16.

or a health condition. Some reforms have been about justice in other

:06:17.:06:20.

ways. The removal of the spare room subsidy. Another way is the pay to

:06:21.:06:25.

save policy which will relieve taxpayers are subsidising housing

:06:26.:06:28.

and those who may well earn more than they do, such as the leader of

:06:29.:06:34.

Norwich City council himself. Those are about fairness for taxpayers who

:06:35.:06:38.

foot the bill for the benefit they themselves could not expect to

:06:39.:06:43.

enjoy. I am here today to speak up for many constituents who simply

:06:44.:06:46.

want us to use limited resources to provide properly for those who need

:06:47.:06:53.

it. Helping constituents record their concerns about AIDS and

:06:54.:06:58.

appliances. I am pleased my right honourable friend has stopped that

:06:59.:07:00.

provision. We should protect the savings and make -- protect the

:07:01.:07:10.

disabled and make savings elsewhere. Our manifesto did also pledge very

:07:11.:07:15.

clearly that week back pensions. At some point in the future we will

:07:16.:07:19.

have to look again at universal benefits. The welfare state is a

:07:20.:07:24.

safety net. That means pensioners do need a decent income. That is why I

:07:25.:07:28.

wholeheartedly support the triple lock. It does not necessarily mean

:07:29.:07:33.

the most well-off pensioners need benefits as well. As my honourable

:07:34.:07:36.

friend from Peterborough and my right on boyfriend for Rush lives

:07:37.:07:42.

have already argued this afternoon. -- right honourable friend for Rush

:07:43.:07:49.

Cliff. That needs to be balanced as well, maintaining those policies

:07:50.:07:54.

into the future. Mrs Brown wrote to the Eastern evening news letters

:07:55.:07:59.

page saying, I was brought up in post-war abject poverty. I work --

:08:00.:08:08.

worked for everything I have. She is right. I deeply respect her and all

:08:09.:08:12.

of my constituents in any generation who have worked hard and done the

:08:13.:08:16.

right thing. I making and arguing for fairness in the future. By

:08:17.:08:21.

making an argument for those who need help the most and to balance

:08:22.:08:32.

generations. Personal independence payments, Madam Deputy Speaker,

:08:33.:08:36.

there is not a single member of this house who has not received scores of

:08:37.:08:42.

letters in the last couple of weeks of people in deep concern for what

:08:43.:08:49.

was proposed in the budget. Let me give you an example from my

:08:50.:08:53.

constituency. A woman living in a rural area, about 15 miles from the

:08:54.:08:58.

nearest railway station, was about to lose home most ability vehicle to

:08:59.:09:04.

get to work. She had a pretty severe disability. I think it is abhorrent

:09:05.:09:10.

the changes we have seen, whether they be you turned whatever, we

:09:11.:09:14.

welcome them. Isn't it extraordinary this has come about to do with the

:09:15.:09:21.

internal workings of the Tory Party and not the needs of people in the

:09:22.:09:26.

most need and disabled people across our country? There is no morale it

:09:27.:09:30.

in the way this decision was made and the Government should hang its

:09:31.:09:35.

head in shame for all that has happened over the last few days. I

:09:36.:09:41.

turn now to a different subject, that of infrastructure. Others have

:09:42.:09:47.

noticed, my honourable friend, the member for Leeds West, wrote an art

:09:48.:09:52.

good about and made the point. According to the latest figures from

:09:53.:09:55.

the National infrastructure pipeline, which monitors public and

:09:56.:10:00.

private sector projects at more than ?50 million, only 114 of 565 major

:10:01.:10:09.

projects are in construction. The economists noticed in 20 to 2013,

:10:10.:10:18.

they wrote an article, let's try to catch up with Marley, not to see

:10:19.:10:24.

OECD figures to show how low Britain was in terms of investment on

:10:25.:10:29.

infrastructure. Infrastructure, rail, road and energy. The

:10:30.:10:34.

Chancellor mentioned the Government now claimed to be opening the door

:10:35.:10:42.

on growth in North Wales. Madam Deputy Speaker, it is rather

:10:43.:10:45.

difficult to open the door to anything if you cannot actually get

:10:46.:10:49.

there. All the rhetoric about the Northern powerhouse matters precious

:10:50.:10:55.

little if we do not deal with things like taxing the accident blackspots

:10:56.:11:01.

and single-track highways on both sides of main roads. And we do not

:11:02.:11:07.

make it quicker to travel on both sides of the border. You need to get

:11:08.:11:17.

on with speeding away with HS2. We need to have more direct London

:11:18.:11:22.

trains on the Wrexham to shrews realigned to take precious of the

:11:23.:11:28.

chest lining the collectivity. Let's sort out a proper North Wales train

:11:29.:11:32.

infrastructure to Manchester and Liverpool airports. Letters

:11:33.:11:35.

all-seater let us try to see the reality of what should be happening

:11:36.:11:43.

with 4G. -- let us all seen the reality. I was intrigued to see Tim

:11:44.:11:48.

Peake wishing us all a happy Saint Davids Day.

:11:49.:11:55.

Two further points very quickly. There has been, I believe the

:11:56.:11:59.

previous speaker spoke about an ethical dimension in terms of

:12:00.:12:02.

corporate taxation, there is one issue the Government didn't look at.

:12:03.:12:07.

And that is the insidious closure of banks across our country. In Wales

:12:08.:12:14.

130 bank branches have close or will close over four year, over FIA year,

:12:15.:12:19.

that is simply unacceptable, that banks can do this, they have nothing

:12:20.:12:24.

to pay back to wider society. My final point Madame developer is to

:12:25.:12:32.

do with measures on philanthropy, in this budget. -- Deputy Speaker. We

:12:33.:12:37.

have seen Gordon Brown bringing in millennium Gift Aid, I know if the

:12:38.:12:42.

honourable member for up cliff would have been there he would have said

:12:43.:12:46.

it was he or John Major who brought it in in 1990. There was no measure

:12:47.:12:51.

of anything to do with philanthropy in this budget. I think it is time

:12:52.:12:56.

that we consider this in greater detail, whether that is the

:12:57.:13:00.

implementation of a Gift Aid package on text donations or a look again

:13:01.:13:05.

after cop rat philanthropy. Those are the measures I am trying to fit

:13:06.:13:10.

into a five minute speech on a mixed budget, but in the last few seconds

:13:11.:13:14.

I welcome what the Chancellor had to say on EU membership there is three

:13:15.:13:18.

MPs in Denbighshire, this might be the only one to welcome a stay in

:13:19.:13:23.

vote, but I do. Madame Durham, I am grateful to have

:13:24.:13:29.

the opportunity to speak in support of this one nation, responsible, and

:13:30.:13:36.

pro enterprise budget. -- Madam Deputy Speaker. Tucks in the

:13:37.:13:41.

Yorkshire dales is a thriving community, a community built on the

:13:42.:13:46.

jobs provided by our small and medium sized businesses, businesses

:13:47.:13:50.

like the Wensleydale creamery whose cheese has taken a slice of

:13:51.:13:54.

Yorkshire to tables across the world. Or Tenants, one of the UK's

:13:55.:14:01.

private auction house, before I arrived in this place I spent my

:14:02.:14:04.

career round the world investing in companies like these. Providing the

:14:05.:14:10.

capital to help them grow. And I am delighted that this budget

:14:11.:14:13.

recognises what my own experience has taught me. That for growing SME

:14:14.:14:23.

there are few more greeneds for success to sack Tess to finance.

:14:24.:14:28.

There are a few more than growing SMEs, small and medium size

:14:29.:14:31.

businesses account for over half of private sector employment. They are

:14:32.:14:36.

responsible for three-quarters of the jobs created since the recession

:14:37.:14:40.

and they are delivering social justice, with the unemployed being

:14:41.:14:45.

six times more likely to find work with a smaller company.

:14:46.:14:50.

These companies need the fuel of deep capital markets to power their

:14:51.:14:53.

growth. However, despite improvement, it is still not always

:14:54.:14:57.

easy for SMEs to get the funding they need.

:14:58.:15:01.

The challenge they face fall into two distinct category, debt and

:15:02.:15:05.

equities. When it comes to debt finance, companies can either go to

:15:06.:15:10.

banks or the corporate bond market. However, our bond markets are under

:15:11.:15:15.

developed. Europe's economy is the same size as the United States, yet

:15:16.:15:20.

its bond market is only a third as big. This means our companies are

:15:21.:15:24.

reliant on banks for their debt needs, indeed four times more

:15:25.:15:27.

reliant than their American counter pars. And at a time when banks are

:15:28.:15:33.

right he deliver ranging the reality for British companies is far too

:15:34.:15:36.

many loan applications are going without success.

:15:37.:15:40.

There are issues for companies wishes to access equity finance.

:15:41.:15:45.

Although we are a European leader, the UK's Venture Capital markets

:15:46.:15:51.

still has room to grow. Adjusted for GDP, the United States VC market is

:15:52.:15:56.

seven times the size of the UK. We also lag behind Sweden, South

:15:57.:16:01.

Africa, Ireland and Israel. This matters because equity is the kind

:16:02.:16:05.

of capital that SMEs need to grow beyond their early stages. Thanks in

:16:06.:16:09.

part the policies of this Chancellor, our nation has become

:16:10.:16:13.

one of the world's start up capitals. But now, we must focus our

:16:14.:16:17.

unEgyptian are growing the start ups. For just 3% of British

:16:18.:16:22.

companies manage to expand beyond ten employee, which is half the

:16:23.:16:27.

success rate of the companies in the United States. Madame Deputy Speaker

:16:28.:16:32.

this Government has shown that it understands these challenges. That

:16:33.:16:38.

is why it created the seed enterprise investment scheme which

:16:39.:16:41.

has helped over 3,000 companies. That is why it launched the funding

:16:42.:16:45.

for lending programme, to ease credit for SMEs, hand is why it

:16:46.:16:51.

funds the British business bank to power our growing companies.

:16:52.:16:56.

I thank him for giving away, I really agree with him wholeheartedly

:16:57.:17:01.

on the fact that getting enough capital out there Venture Capital in

:17:02.:17:06.

particular, and allowing a small business to grow, especially some

:17:07.:17:10.

that may you know, the traditional banking systems don't necessarily

:17:11.:17:14.

support, is absolutely key to stimulating more growth in our

:17:15.:17:18.

economy, and I very much welcome his comments.

:17:19.:17:23.

Very grateful for my colleague and chairman of the Defra Select

:17:24.:17:27.

Committee for those comments, I will go on to sop of them in due course.

:17:28.:17:31.

I an delighted this budget goes further to encourage investment in

:17:32.:17:37.

our businesses, and our job creator, I am confident that reducing capital

:17:38.:17:42.

gains tax rates together with a brand-new 10% rate for long-term

:17:43.:17:45.

investment in private businesses will unlock millions in much-needed

:17:46.:17:49.

funding. Speaking with investors this week, it is clear that these

:17:50.:17:54.

policies have cut through and generated a fresh wave of enthusiasm

:17:55.:17:59.

for investing in British companies. On the debt side, I welcome the

:18:00.:18:04.

budge's further help for businesses rejected by traditional a big, they

:18:05.:18:08.

will now be more easily be able to access ala terntive providers of

:18:09.:18:14.

finance. Madame Deputy Speaker, whether it is cheese makers or

:18:15.:18:19.

companies in Old Street, this Chancellor has always backed the

:18:20.:18:21.

aspirations of Britain's growing companies. By continuing to close

:18:22.:18:28.

the loopholes that Labour left open, this budget has another message,

:18:29.:18:31.

Britain isn't only becoming the best place to do business, it is becoming

:18:32.:18:35.

the fairest place to do business as well. This is a budget for the

:18:36.:18:40.

little guy, for a new generation of British ideas and for a country

:18:41.:18:44.

where the rules don't bend for big balance sheets. This is a

:18:45.:18:48.

responsible, one nation, pro enterprise budget that will get our

:18:49.:18:52.

companies the vital funding they need to unleash their potential and

:18:53.:18:55.

I commend it wholeheartedly to this house.

:18:56.:19:02.

I want to focus this section of the debate on apprenticeships because it

:19:03.:19:05.

is key to tonnes for young people in Bristol South. I support the 3

:19:06.:19:10.

million target by 2020. It is ambitious but we should be for our

:19:11.:19:14.

young people. In many ways Bristol is a booming city with the highest

:19:15.:19:19.

household income outside London and easily the highest productivity of

:19:20.:19:24.

any big conurbation outside the capital present ships are important

:19:25.:19:32.

because it is the constituency that Ucas says sends fewer people into

:19:33.:19:37.

higher education. Apprenticeships and training are the root to a

:19:38.:19:42.

better future for so many people living in our communities.

:19:43.:19:46.

While Bristol South isn't home to a large number of companies there are

:19:47.:19:50.

have many small and medium size enterprises based in the

:19:51.:19:55.

constituency, owned by and employing local residents. I am glad the

:19:56.:20:01.

honourable member for Richmond. I a interested in the role SMEs will

:20:02.:20:05.

play in the delivery role and how the Levy is going to work for them.

:20:06.:20:10.

Last week, there have been three important interventions that have

:20:11.:20:13.

merged that cause concern, firstly the co-chair of the Government's

:20:14.:20:18.

delivery board confirmed SMEs won't be in the Levy system and the only

:20:19.:20:21.

firms paying it will have access to a new funding system from April

:20:22.:20:27.

2017. Secondly, at the FE conference, we have heard from the

:20:28.:20:31.

former Business Secretary, that, about concerns that the Levy may in

:20:32.:20:35.

fact be a revenue raising measure rather than a genuine one, and

:20:36.:20:42.

thirdly, we have seen comments from the social mobility commission

:20:43.:20:45.

concerned that the younger of numb apprenticeships has flat lined since

:20:46.:20:49.

2010 and many don't offer people the foundation they can build on.

:20:50.:20:52.

I would like the Government to be able to give a guarantee every penny

:20:53.:20:57.

of the ?3 billion in Levy is expected to raise will be invested

:20:58.:21:01.

back in to improving training and apprenticeships and the SMEs will

:21:02.:21:05.

have their fair share that the special and unique opportunities and

:21:06.:21:08.

challenges they bring to the apprenticeship table will be fully

:21:09.:21:12.

taken into account. How will young people, business,

:21:13.:21:16.

colleges and other training providerings be able to access the

:21:17.:21:21.

opportunities and what guarantee can the Government give that my

:21:22.:21:24.

constituency will receive its fair share? The Government plan for

:21:25.:21:27.

apprenticeship seems to be at the drawing board stage so I am envying

:21:28.:21:32.

firms in my constituency to help. I have been issued an open call to set

:21:33.:21:36.

out their ambitions, for the shape of apprenticeship schemes over the

:21:37.:21:41.

next decade. I am sure the Government agree that the reaction

:21:42.:21:45.

of employers will make or break the target, so will the Government

:21:46.:21:47.

please accelerate the publication of the action plan, that shows how the

:21:48.:21:52.

target will be met, how the Levy will work, and o other fine details

:21:53.:21:58.

of the plan so I and others can work alongside employer, colleges and

:21:59.:22:02.

other training providers to promote and encourage full engagement. An

:22:03.:22:06.

additional consideration is the number of Bristol South residents

:22:07.:22:12.

who are not ready to take up a apprenticeship so details for

:22:13.:22:13.

preapprenticeship training is of interest, it is essential we ensure

:22:14.:22:19.

the residents are no blocked for accessing these valuable

:22:20.:22:22.

opportunities. I have concerns about the realism of the 3 million target

:22:23.:22:26.

by 2020. As does the Government agree with me there is a danger that

:22:27.:22:31.

arbitrary target will risk a dangerous trade off between quality

:22:32.:22:36.

and quantity. When I heard a call to my office about a young pep in

:22:37.:22:40.

Bristol South who has been asked to work from 7.00am to 7pm with poor

:22:41.:22:44.

support, it highlights the importance that driving towards the

:22:45.:22:48.

3 million target we must not ignore the quality of that experience and

:22:49.:22:54.

support to young people. I fear post 19 loans will deter people accessing

:22:55.:22:58.

training, which have a negative effect. So I look forward to

:22:59.:23:03.

reassurances from the minister. Earlier on today the Chancellor in

:23:04.:23:08.

his opening, did say to a member of his own side, I hope he extends it

:23:09.:23:14.

to others where constituency MPs raise vital services, this is a

:23:15.:23:18.

government that is listening, because in concluding this is not a

:23:19.:23:23.

party political issue. I make my points in the spirit of cooperation,

:23:24.:23:26.

what is best for the people of south Bristol who sent me here to

:23:27.:23:29.

represent their interest and this is key to their ambition and

:23:30.:23:35.

aspiration. Parents will have wanted a budget

:23:36.:23:39.

that would have said yes, we will make sure you get a good job, yes,

:23:40.:23:44.

we are going to make sure you get a decent amount of pay, whatever job

:23:45.:23:49.

you do, yes, we will make shoe you can keep as much of your tax as

:23:50.:23:54.

possible and yes, we will deliver a budget, make sure your children have

:23:55.:23:58.

a better future than you do and the Chancellor in his robust performance

:23:59.:24:03.

today has demonstrated that this budget can deliver on all three of

:24:04.:24:09.

those item, I was shocked to hear the response from the Shadow

:24:10.:24:11.

Chancellor in as much as he seemed to spend 20 minutes of his speech

:24:12.:24:16.

trying to hold the Chancellor to account, for something the

:24:17.:24:19.

Chancellor is not doing. That, I think is part of the problem with

:24:20.:24:25.

the party opposite have. There is no coherence in their approach to this

:24:26.:24:29.

Government. So what I would like to dos, is provide a bit of coherence

:24:30.:24:34.

in criticism on one aspect of this budget if I may. That relates to the

:24:35.:24:42.

sugar tax. I do that because it isn't what it says it is, it won't

:24:43.:24:47.

in my view will not raise the taxes that ares a scribed to it and it

:24:48.:24:52.

will not achieve the health benefits that were its original vaunted

:24:53.:24:57.

purpose. It is not a sugar tax, there will be no tax on sugar this

:24:58.:25:03.

cakes, in puddings, confectionary which may be great for food

:25:04.:25:08.

manufactures, and chefs. It is not a tax on sugar. In fact, it isn't even

:25:09.:25:14.

a tax on soft drinks because sugar in milk based drinks or fruit juices

:25:15.:25:19.

are not covered. Either in fact, it appears to be a tax not only sugar,

:25:20.:25:28.

but on five companies, Coca-Cola, Britvic, AG Barr, Vimto and

:25:29.:25:29.

Lucozade. I would say on that, government

:25:30.:25:42.

ought to be very careful about having specific taxes targeted on

:25:43.:25:47.

specific companies. They will be open to challenge. Thank you for

:25:48.:25:53.

giving way. Jeering the budget, the Chancellor made it very clear that

:25:54.:25:58.

one of the objectives of the sugar tax was to get companies to change

:25:59.:26:02.

their behaviour and have low sugar drinks rather than full sugar. I

:26:03.:26:07.

speak as someone who used to drink a lot of full sugar Vimto and now has

:26:08.:26:14.

no added sugar content. It is bizarre for the Government to attack

:26:15.:26:16.

a sector of British industry that has done a great deal of

:26:17.:26:24.

innovations. As my honourable friend rightly says, at the core of this is

:26:25.:26:29.

an issue about the impact on obesity. These statistics on obesity

:26:30.:26:35.

show that between 1993 and 2013 there was a doubling of obesity

:26:36.:26:39.

amongst adults. When it comes to children in that same report by the

:26:40.:26:44.

ONS, they say a proportion of these children in 2013 was 9.5%, higher

:26:45.:26:51.

than 2012 but lower than in 2006/ 2007. I would point out the products

:26:52.:27:00.

being targeted came from way before the issue of obesity. Irn-Bru, often

:27:01.:27:05.

described as the national drink of Scotland was originated in 1991. The

:27:06.:27:10.

Government is ignoring advice from Public Health England. In October

:27:11.:27:14.

2015, they said it is not possible to compare the impact of price

:27:15.:27:20.

increases achieved by the sugar tax on sweetened drinks. It is also

:27:21.:27:28.

about the impact of promotions in store on purchasing habits. The

:27:29.:27:32.

effect of restrictions on marketing and promotions may be greater than

:27:33.:27:37.

those from fiscal measures. I thank my honourable friend fray much for

:27:38.:27:40.

giving way. Do not think it is better for the Government to work

:27:41.:27:44.

with these companies and work with the amount of sugar in the drinks

:27:45.:27:48.

and bringing any form of tax? Or you're going to do is make it more

:27:49.:27:52.

expensive very often for poorer people to buy the drink. -- all you

:27:53.:27:57.

are going to do. If you reduce the amount of sugar, it is having a

:27:58.:28:02.

greater effect on diet. You speak with enormous sense and knowledge.

:28:03.:28:08.

It is absolutely right. It is better to engage the industry than

:28:09.:28:13.

arbitrarily imposed levy. I quote from the budget. The levy will

:28:14.:28:19.

operate with a specific revenue target of ?500 million for the

:28:20.:28:24.

second year of implementation. Then it says, from a pre-behavioural

:28:25.:28:29.

yield of over ?900 million, behavioural responses lower the

:28:30.:28:35.

yield to ?500 million. As a new tax likely to prompt a large behavioural

:28:36.:28:40.

response, these estimates are subject to significant uncertainty.

:28:41.:28:45.

There we have it. Not a clue at all. Thank you for giving way was surely

:28:46.:28:51.

the idea behind the two-year lead into the sugar levy is the right way

:28:52.:28:58.

to go. It is saying to manufacturers reformulate. Surely the future of

:28:59.:29:01.

our children and their health is more important than anything else.

:29:02.:29:07.

The health of our children is extremely important. As I have just

:29:08.:29:12.

said, this sector is one of those sectors that is already innovating.

:29:13.:29:15.

Remarkable reductions in the sugar content of soft drinks compared with

:29:16.:29:20.

other sectors with no changes in that area at all. There are some

:29:21.:29:24.

queries about whether it will achieve the impacts on health that

:29:25.:29:28.

is supposed to make. In Mexico, when the sugar tax was recently

:29:29.:29:32.

introduced, the calorie rejection amounted to six calories a day.

:29:33.:29:39.

Madam Deputy Speaker, this is a regressive measure, much against the

:29:40.:29:42.

principles the Chancellor himself rightly outlined as the overall,

:29:43.:29:47.

overarching ethos of the budget. I will give way again. Would he agree

:29:48.:29:53.

with me that this tax with so many ambiguities is simply indulging our

:29:54.:29:57.

fellow British chefs in giving them credence, more than they deserve? I

:29:58.:30:02.

could not be more delighted to have given way to the honourable lady

:30:03.:30:07.

opposite. She is quite right. The sugar tax is a passion of the TV

:30:08.:30:12.

chef, Mr Jamie Oliver. He is just the latest in a line of celebrities

:30:13.:30:19.

to use his position to influence public policy. Think people like Mr

:30:20.:30:24.

Russell Brand, Mr Benedict Cumberbatch. To quote the

:30:25.:30:29.

Independent newspaper, the chief beneficiaries of star-studded

:30:30.:30:31.

attempts to raise the profile of a good cause are the celebrity

:30:32.:30:37.

themselves. So, Madam Deputy Speaker, can we have a new levy on

:30:38.:30:44.

policy pronouncements by well-heeled celebrities, who sprinkle their fame

:30:45.:30:49.

to dazzle ministers into ill thought through changes, so that the levy

:30:50.:30:52.

can pay for the unintended consequences of the brief, highly

:30:53.:31:00.

jaundiced opinions, on the public. Emma Thomson's announcement should

:31:01.:31:05.

alone secure the defence budget. Thank you. The Chancellor of the

:31:06.:31:12.

Exchequer's budget and the figures reported by the Office for Budget

:31:13.:31:15.

Responsibility, considered by many as a contradiction in terms with the

:31:16.:31:19.

mysteries yet again the Chancellor's ability to adequately manage the

:31:20.:31:25.

economy he has failed in several key economic indicators and missed

:31:26.:31:28.

targets set by Tories will stop notably debt, deficit and borrowing

:31:29.:31:33.

levels are even worse than promised last autumn. Given time constraints,

:31:34.:31:37.

I will mention a few the problems I have seen with the budget before

:31:38.:31:40.

focusing on an issue of real concern that has not been adequately covered

:31:41.:31:47.

by others. Inflation, the forecast shows inflation is set to see a

:31:48.:31:50.

significant rise from as close to zero... I will give way. Does my

:31:51.:31:57.

honourable friend agree that a sharp rise in inflation can have a

:31:58.:32:01.

negative impact on working households? I thank you for your

:32:02.:32:05.

intervention. I agree with my honourable friend. With the sterling

:32:06.:32:16.

depreciation and uncertainty created by the EU referendum, consumer

:32:17.:32:21.

inflation has begun to rise. OBR has predicted the CPI will rise from .7%

:32:22.:32:27.

to 1.6% next year. Likewise the retail price index is set to rise

:32:28.:32:34.

from 1.7% this year to 3.2% in 2017. Such a spike in inflation can impact

:32:35.:32:39.

negatively, as my right arm ball friend mentioned, across the

:32:40.:32:43.

economy. It means many households around the country and my

:32:44.:32:49.

constituents in households that are already struggling will see the

:32:50.:32:54.

price of necessities rise at a time they can least afford it. Exports

:32:55.:32:58.

which are already weak will likely see further decline. Sales fell from

:32:59.:33:08.

521,000,000,020 -- 2013 to 513 billion in 2014. No surprise it will

:33:09.:33:16.

fall short of this target by 300 billion. That has been touched on by

:33:17.:33:20.

the right honourable member for Hartlepool. On business investment,

:33:21.:33:26.

touched on by my honourable friend brought East Lothian and my

:33:27.:33:29.

honourable friend for Hartlepool, more bad news for the business

:33:30.:33:37.

investment with the OBR predicting business investment will only grow

:33:38.:33:42.

by 2.6% this year, substantially lower than the 7.4 predicted three

:33:43.:33:46.

months ago in the Autumn Statement. Furthermore, the investment at 2019

:33:47.:33:53.

will be 10% lower than predicted in December. So far, not so good.

:33:54.:33:58.

Moving on to an area of concern for myself on page 27 of the red book.

:33:59.:34:04.

The Government expects to lose 25 billion from the sale of The Royal

:34:05.:34:09.

Bank of Scotland. There are several factors and I feel this prize may be

:34:10.:34:14.

somewhat exaggerated. Focusing on this issue, I would point out that

:34:15.:34:21.

between 2011 and 2014, RBS arranged 14.3 billion in leveraged loans to

:34:22.:34:25.

the oil and gas industry. It has been a leader among key banks in

:34:26.:34:29.

arranging these high risk loans. The falling price of oil has resulted in

:34:30.:34:39.

the default rates of these loans increasing. Many are in the form of

:34:40.:34:51.

collateral loan obligations. It remains uncertain how many of these

:34:52.:34:58.

loans RBS still has on its books, hence my concern for that 25

:34:59.:35:02.

billion. I would like to take a minute to highlight what I see is a

:35:03.:35:05.

failure on the part of this government to the risk to the

:35:06.:35:11.

financial system in relation to the price of oil. A number of US lenders

:35:12.:35:19.

with large active presence in UK markets have high energy exposure,

:35:20.:35:23.

due to leveraged lending on the oil/ gas sector. JP Morgan has 13.8

:35:24.:35:29.

billion outstanding debt relating to loans. Of the roughly 100 billion in

:35:30.:35:34.

leveraged loans it issued to the oil and gas sector between 2011 and

:35:35.:35:43.

2014. Wells Fargo arranged 20,000 leveraged loans to that sector in

:35:44.:35:49.

that period. 17.4 billion of these are already outstanding. Alarm bells

:35:50.:35:55.

should be ringing somewhere. When the price of Brent was at $50 a

:35:56.:36:03.

barrel it was predicted, if the price of oil is to continue to fall,

:36:04.:36:07.

there is a stark parallel with the collapse of the US property prices

:36:08.:36:16.

index. The systemic risk inherent to the financial system due to these

:36:17.:36:20.

high yield loans and the slice and dice nature of derivative products

:36:21.:36:24.

relating to these loans which have been sold to investors are not even

:36:25.:36:29.

mentioned in the most recent bank of England stress test results.

:36:30.:36:34.

Finally, Madam Deputy Speaker, in the year since 2007 and 2008, the

:36:35.:36:42.

Tory government has demonstrated its expectations that the most

:36:43.:36:45.

vulnerable in society should pay the price for these institutions. The

:36:46.:36:50.

bureau of investigative journalism found most of the funding came from

:36:51.:36:57.

the city. This budget has clearly highlighted the fact this attitude

:36:58.:37:04.

has not changed, as is evidenced in the ?3.5 billion of cuts. Madam

:37:05.:37:08.

Deputy Speaker, this budget again is not good enough. If the Chancellor

:37:09.:37:11.

really wants to be head boy, he should heed his report card which

:37:12.:37:18.

should read, must do better. Thank you, Madam Deputy Speaker. Before I

:37:19.:37:22.

start, in the five minutes I have, can I first of all condemned the

:37:23.:37:29.

outrage in Brussels today? Those who perpetrate it have my symphonies and

:37:30.:37:34.

prayers -- those who perpetrated it, my civvies and prayers go to the

:37:35.:37:39.

loved ones of those who have had any losses. May I put in a plug for the

:37:40.:37:48.

armed police in Dorset and around the country and the capital as well

:37:49.:37:51.

that more money is spent on training? I know full well the

:37:52.:37:58.

convocations of storming buildings and dealing with civilians fleeing

:37:59.:38:02.

from bombs, as they were doing in the departure lounge this morning.

:38:03.:38:06.

The chaos surrounding it, the blood, the Gore, the mess, the noise. To go

:38:07.:38:13.

into a building that has been attacked, as an armed policeman, you

:38:14.:38:16.

need an incredibly high degree of training. I am grateful to my

:38:17.:38:26.

honourable friend for giving way. The Prime Minister did say after

:38:27.:38:29.

Bataclan that he would support continued funding for the police,

:38:30.:38:33.

particularly the armed police. I agree. I am making the point. I

:38:34.:38:37.

welcome comments from the Prime Minister. What I am expanding on

:38:38.:38:41.

this need for highly specialist training. You need buildings, images

:38:42.:38:47.

that can change as you attack, different lights, all sorts of

:38:48.:38:51.

things to make this sort of very highly strategic attack you would

:38:52.:38:54.

have to do. Our armed police will not be able to stay outside and wait

:38:55.:39:01.

for the special air they would have to get in and save lives, as I am

:39:02.:39:05.

sure they would do. I do not doubt their courage and dedication. What I

:39:06.:39:12.

am questioning is they should look very carefully at the money

:39:13.:39:18.

available to meet what appears to be sadly and tragically a more common

:39:19.:39:22.

use of the assaults we have seen this morning. Talking of military,

:39:23.:39:27.

may I congratulate my right honourable friend, the Chancellor,

:39:28.:39:32.

for resorting to military tactics. They say attack is the best form of

:39:33.:39:36.

defence of his robust performance in the House of Commons today was a

:39:37.:39:40.

very good example of that. Can I welcome much in the budget, raising

:39:41.:39:45.

the tax-free personal allowance, increasing the higher threshold,

:39:46.:39:52.

freezing beer and cider duties. Cutting taxes. Small businesses, may

:39:53.:40:00.

I claim my next remark at the opposite benches. We heard the

:40:01.:40:04.

Shadow Chancellor saying it is a tax cut for the rich. Can I remind them

:40:05.:40:07.

the businesses that are the engine room of the country, they risk their

:40:08.:40:13.

homes to invest in businesses and for many years struggled to make a

:40:14.:40:18.

profit? They then pay for all the people we tried to get work and make

:40:19.:40:22.

fast risks. The money they keep the more they

:40:23.:40:32.

can re-invest in their companiesches it is not a matter of people jetting

:40:33.:40:37.

off in their 747s and I know, because I have been to many

:40:38.:40:41.

businesses, as I am sure they have in their constituency, small

:40:42.:40:43.

engineering companies are having to buy equipment that is worth, 6, 7,

:40:44.:40:49.

800,000 and the profits are minimal. We need to help them for the future

:40:50.:40:54.

of our country, and for the future of those wanting to get back in to

:40:55.:40:58.

work. I agree with my honourable friend about the sugar tax, I have

:40:59.:41:03.

doubts on that and I hope the front bench will relook that the. Can I

:41:04.:41:08.

ask them about the effect of raising the threshold of, business rates on

:41:09.:41:12.

small businesses and taking some out of it all together. I understand,

:41:13.:41:18.

unless, I am sure one will correct me if I am wrong, more and more

:41:19.:41:23.

local authorities will rely more and more on business rates because

:41:24.:41:27.

central Government funding will be reduced to zero. If that is the

:41:28.:41:32.

case, and we are going to take businesses out of business rates

:41:33.:41:35.

which I applaud, don't get me wrong, where is it going to come from for

:41:36.:41:40.

small rural councils like mine? I would be grateful when the minister

:41:41.:41:43.

sums up, if he could give an answer to that particular question. Can I

:41:44.:41:48.

just touch on the personal dependent payments and all that has gone on,

:41:49.:41:54.

may I too pay my huge praise to the member, right honourable member for

:41:55.:41:57.

Chingford who has dedicated so up many of his life, having been the

:41:58.:42:01.

leader of his party, a lesser man would have gone into a cave and

:42:02.:42:04.

stayed there. Not this man, he went out there and he did all he could

:42:05.:42:08.

and has done for the poorest in our society and I commend him for it.

:42:09.:42:16.

Can I look at one aspect of this particular tax, and this particular

:42:17.:42:22.

PIP payment and what concerns me, what I found in my surgeries, many

:42:23.:42:29.

constituent say they have been unfairly assessed, and it is a tick

:42:30.:42:36.

box culture, I have never liked tick boxing, what happens is in. So

:42:37.:42:41.

cases, their support is withdrawn while the case is assessed. This,

:42:42.:42:46.

despite the fact many have doctors certificates explaining why they

:42:47.:42:49.

need the money they are going to get. Can I urge, urge, urge, please,

:42:50.:42:57.

the Government we really look at the assessing system. We need

:42:58.:43:01.

occupational therapist, we need family member, doctors, all to

:43:02.:43:04.

contribute, yes it is more expensive probably but least then we will get

:43:05.:43:09.

the assessment right. Rather than causing huge distress to frankly

:43:10.:43:13.

those who least can deal with it, by taking away what support they have

:43:14.:43:18.

and giving back to them, ex months later when an MP has got involved. I

:43:19.:43:24.

make the point we have infenced everything to the front bench. What

:43:25.:43:28.

can we stop ring-fencing and there are savings to be made in overseas

:43:29.:43:33.

aid, which can can spend and target far better.

:43:34.:43:42.

May I start by associating myself with the member South Dorset made

:43:43.:43:45.

about the dreadful situation we saw in Brussels today. This debate has

:43:46.:43:50.

seen more like a concern about astronomy than budget. We have all

:43:51.:43:54.

been talking about black holes, but there is a very clear analogy to be

:43:55.:44:01.

drawn, people will remember that Stephen has been, described what was

:44:02.:44:05.

called the black hole paradox, the idea that information would

:44:06.:44:10.

disappear into a black hole, never to be restored again, despite all

:44:11.:44:16.

matter that was to be held forever. What an analogy for the budget we

:44:17.:44:20.

face today, where we have no information about how it is going to

:44:21.:44:24.

stack up. Our colleagues in local Government would rightly be

:44:25.:44:27.

horrified. So where can we find information about the impact of this

:44:28.:44:31.

budget? We can find it our constituencies and in those people

:44:32.:44:35.

who we represent, and in the time I have, I want simply to offer three

:44:36.:44:39.

areas of information on which we can judge the Chancellor's work. First

:44:40.:44:43.

of all, on personal debt, secondly then on savings and finally on

:44:44.:44:49.

productivity, three areas, into which this budget singly fails the

:44:50.:44:53.

British people. Because we know it is not by accident that personal

:44:54.:44:57.

household debt in this country is doing up and up and up. -- going up

:44:58.:45:02.

and up and up. Unpress dented is the term the Office for Budget

:45:03.:45:04.

Responsibility uses for the Chancellor's plans when it comes to

:45:05.:45:10.

the impact on our constituents, that unsecured personal debt will reach

:45:11.:45:15.

3% of GDP and stay there. It is indeed a black hole into which the

:45:16.:45:18.

Chancellor issing is the public to pour their own money to pay for his

:45:19.:45:22.

mistakes, just how bad is it? The Bank of England tell us that people

:45:23.:45:27.

are now borrowing a billion pounds a month in this country, just in

:45:28.:45:34.

January alone people put ?500 million on their credit cards, Aviva

:45:35.:45:38.

tell us the average family debt is 13,00 pounds. Up 4,000 from last

:45:39.:45:43.

summer alone. Now those on the opposite benches who are casual

:45:44.:45:46.

about credit miss the point. Not even is paying the same levels of

:45:47.:45:50.

credit. Some are being charged excessive amounts for the credit.

:45:51.:45:54.

The debts they are getting into to pay for this Chancellor's mistake,

:45:55.:45:58.

the member for South Dorset talks about people putting their houses up

:45:59.:46:04.

to fund businesses but many in our community, home ownership is a dream

:46:05.:46:08.

they have long given up on. When we see wages have risen 4% in the last

:46:09.:46:13.

few years but house prices have gone up 76%, we know every single penny

:46:14.:46:18.

matter, and that is why it is such a problem that people are in these

:46:19.:46:23.

levels of debt. This Chancellor is banking on the British habit of

:46:24.:46:27.

borrowing. It is like putting Wayne Rooney in charge of a stocktake in

:46:28.:46:31.

the Nike shop. It is about the fact we are nation that can't savement we

:46:32.:46:35.

are saving just 4% of our disposable income, half as much as we were four

:46:36.:46:40.

years ago, the lowest levels of personal saving since 1963. So help

:46:41.:46:46.

to save will do little to those 26 million people in our country, who

:46:47.:46:51.

don't have access to ?1,000 for an emergency, they have no rainy day

:46:52.:46:54.

money under this Government's watch. Lifetime Isas are out of reach for

:46:55.:46:59.

those people who have too much month at the end of their money.

:47:00.:47:03.

So we are seeing a situation of rising personal debt, and low or no

:47:04.:47:07.

savings at all, into which wages are now stalling. That has an impact on

:47:08.:47:13.

public finances too, it will lead to lower tax receipt, they are down ?44

:47:14.:47:18.

billion on the projections made in 2011, so yes, that is why we on this

:47:19.:47:22.

side are angry when we see those who will do well are those who can well

:47:23.:47:27.

afford to pay for it. That 80% of the games -- gains from this budget

:47:28.:47:30.

will go top to the top half of the income distribution and half of that

:47:31.:47:35.

to the top 20%. Debt is locking people out of opportunities, I will

:47:36.:47:38.

happily give way. Is the member also wear the very act

:47:39.:47:43.

of running a budget surplus, taking more out than you put in, forces the

:47:44.:47:52.

public sector, the public accounts into private borrowing, increasing?

:47:53.:47:57.

The member, my long held concerns about the way the government is

:47:58.:48:01.

managing, we don't have time to go into the depth that is PFI or PF 2

:48:02.:48:06.

which will lead to many of the problems we are been say we get we

:48:07.:48:10.

want to get the deficit down because every penny we are paying in

:48:11.:48:14.

interest, every penny with are paying is money that could be going

:48:15.:48:17.

into investing in our people, it is money that could be going into

:48:18.:48:21.

investing in the public services that our communities need to suck

:48:22.:48:25.

said. That is the point, it is not just the damage it is doing today to

:48:26.:48:30.

people, the destitution they face today, it is narrowing of the

:48:31.:48:33.

horizons it presents for tomorrow too. Because we see this Government

:48:34.:48:39.

singly failing to deal with the productivity gap Britain faces, the

:48:40.:48:43.

18% difference between ourselves and our competitor, failing to invest in

:48:44.:48:49.

our young people, by the end of this Parliament, China intends to produce

:48:50.:48:52.

195 million graduates and it is not just China that is investing in its

:48:53.:48:57.

people. It is Brazil. Russia, Argentina, these are the country,

:48:58.:49:00.

the graduates our children will have to compete with and this Government

:49:01.:49:04.

is offering them nothing by return, and we see the consequences for

:49:05.:49:08.

them, in that productivity gap. We see when the Government is trying to

:49:09.:49:13.

force every school to become an academy abjecting their own

:49:14.:49:16.

responsibility. How different from a year ago when we sat here and

:49:17.:49:19.

listened to a Chancellor claim he was fixing the roof, that Britain

:49:20.:49:22.

would be able to walk tall again. It seems to me this is one of those

:49:23.:49:26.

builders you see the Watchdog programme about. I would encourage

:49:27.:49:30.

the British people to go to Trading Standards about them but the

:49:31.:49:33.

Government's cut that service too. They are left with their only

:49:34.:49:37.

alternative which is to look to an alternative party of Government,

:49:38.:49:42.

which is the Labour Party. To offer a genuine investment in

:49:43.:49:47.

young people, a recognition of why fiscal responsibility matters this

:49:48.:49:53.

is a black hole sucking everything out of this country, including

:49:54.:49:56.

hopefully the Chancellor's career. A pleasure and honour to follow the

:49:57.:50:02.

member for Walthamstow, who as a graduate of physics and maths from

:50:03.:50:08.

Liverpool university, the fact she managed to get Steven hawkings and

:50:09.:50:18.

Wayne Rooney in her speech at the same time I applaud her. Can I add

:50:19.:50:24.

my condolences to the victims in Brussels and to their family, I was

:50:25.:50:29.

in Brussels shortly after the Paris attacks, and the degree of security

:50:30.:50:33.

that was being implemented there demonstrated that I were on high

:50:34.:50:38.

alert already, and clearly it is a devastating tragedy that has taken

:50:39.:50:43.

place there. In terms of the budget, we should be clear unfortunately the

:50:44.:50:48.

events of the past few days seem to have overshadowed a remarkably good

:50:49.:50:53.

budget from the Chancellor. A position where by reductions in

:50:54.:50:57.

business taxes, to promote growth to allow people to have the dignity of

:50:58.:51:02.

earning a living, rather than having a life on benefits should be

:51:03.:51:05.

applauded by all sides, rather than condemned. I trust that

:51:06.3:44:10

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