0:00:04 > 0:00:07Tonight at 10pm - the Budget offers lower prospects
0:00:07 > 0:00:09for economic growth, but a boost for
0:00:09 > 0:00:16first-time house buyers.
0:00:16 > 0:00:19The Chancellor says it's a budget to make Britain fit for the future,
0:00:19 > 0:00:22but there's a sharp fall in the forecast for economic growth,
0:00:22 > 0:00:27for the years ahead.
0:00:27 > 0:00:29He delivered a sobering assessment of the economy,
0:00:29 > 0:00:31as the UK tackles Brexit, and weak productivity.
0:00:31 > 0:00:33We are at a turning point in our history.
0:00:33 > 0:00:35And we resolve to look forwards not backwards,
0:00:35 > 0:00:41to build on the strengths of the British economy,
0:00:41 > 0:00:43to embrace change, not hide from it, to seize the opportunities ahead
0:00:43 > 0:00:49of us, and together to build a Britain fit for the future.
0:00:49 > 0:00:56He announced that stamp duty for all first-time
0:00:56 > 0:00:58buyers will be abolished in England,
0:00:58 > 0:01:00Wales and Northern Ireland, for homes up to £300,000.
0:01:00 > 0:01:01And he promised more cash for the NHS in England,
0:01:01 > 0:01:09And he promised more cash for the NHS in England,
0:01:09 > 0:01:10And he promised more cash for the NHS in England,
0:01:11 > 0:01:14though less than the service had been hoping for and less
0:01:14 > 0:01:15than Labour had been demanding.
0:01:15 > 0:01:17Economic growth has been revised down, productivity growth
0:01:17 > 0:01:19has been revised down, business investment revised down,
0:01:19 > 0:01:21people's wages and living standards revised down.
0:01:21 > 0:01:26What sort of strong economy is that?
0:01:26 > 0:01:28We'll have the detail, and reaction to the second Budget delivered
0:01:28 > 0:01:29by Philip Hammond this year.
0:01:29 > 0:01:39Also tonight -
0:01:42 > 0:01:44Mr Mladic, sit.
0:01:44 > 0:01:46In the Hague, the former Bosnian Serb commander,
0:01:46 > 0:01:48Ratko Mladic, is convicted of genocide and crimes
0:01:48 > 0:01:49against humanity.
0:01:49 > 0:01:50Zimbawe's former vice-president, Emmerson Mnangagwa, has returned
0:01:50 > 0:01:53home to succeed Robert Mugabe as head of state.
0:01:53 > 0:01:56And, we're all set for the start of the first Ashes Test, in Brisbane.
0:01:56 > 0:01:59And coming up on Sportsday on BBC News:
0:01:59 > 0:02:03Chelsea are through to the last 16 of the Champions League -
0:02:03 > 0:02:09with Celtic and Manchester United also in European action.
0:02:28 > 0:02:30Good evening.
0:02:30 > 0:02:34The Chancellor, Philip Hammond, has delivered his second budget this
0:02:34 > 0:02:36year, warning that the economy is expected to grow more slowly
0:02:36 > 0:02:37than previously thought.
0:02:37 > 0:02:39He said the forecast for growth this year
0:02:39 > 0:02:42was being reduced from 2% to 1.5%, with successive downgrades,
0:02:42 > 0:02:46over the following years.
0:02:46 > 0:02:50Despite that, Mr Hammond has found more money for the NHS,
0:02:50 > 0:02:52committing 2.8 billion over three years, to the overstretched
0:02:52 > 0:02:56health service in England.
0:02:56 > 0:02:59On housing, stamp duty will be abolished, for first-time buyers
0:02:59 > 0:03:02of homes up to £300,000, in England, Wales
0:03:02 > 0:03:06and Northern Ireland.
0:03:06 > 0:03:09And on Brexit, he's setting aside £3 billion, to be spent on plans
0:03:09 > 0:03:10for leaving the European Union.
0:03:10 > 0:03:12The first of our Budget reports tonight is from our political
0:03:12 > 0:03:13editor Laura Kuenssberg.
0:03:13 > 0:03:19Almost ready to go.
0:03:19 > 0:03:22A big day for Downing Street, whose grip for months has been
0:03:22 > 0:03:23shaky, to say the least.
0:03:23 > 0:03:26REPORTER:Feeling the pressure, Chancellor?
0:03:26 > 0:03:29The priority for Number Ten and 11, those powerful
0:03:29 > 0:03:30next-door neighbours...
0:03:30 > 0:03:34Is this a make or break Budget?
0:03:34 > 0:03:36..Was for today's events not
0:03:36 > 0:03:41to slip, to keep the Budget tightly in their grasp.
0:03:41 > 0:03:44For the Chancellor, the aim to be the steady national bank manager,
0:03:44 > 0:03:46not to tear up the rules altogether.
0:03:46 > 0:03:50Knowing his own job, as well as the Government's
0:03:50 > 0:03:53fortunes, would be shaped by what he was about to say.
0:03:53 > 0:03:57Philip Hammond.
0:03:57 > 0:04:01A cheerier start than Mr Hammond's usual demeanour suggests.
0:04:01 > 0:04:05I report today on an economy that continues to grow,
0:04:05 > 0:04:07continues to create more jobs than ever before, and continues
0:04:07 > 0:04:13to confound those who seek to talk it down.
0:04:13 > 0:04:16In this Budget, we express our resolve to look
0:04:16 > 0:04:19forwards, not backwards.
0:04:19 > 0:04:23Yet, with Brexit hanging over him, the risks of no deal with the rest
0:04:23 > 0:04:25of the EU real and expensive.
0:04:25 > 0:04:28Today, I am setting aside over the next two years another
0:04:28 > 0:04:31£3 billion, and I stand ready to allocate further sums
0:04:31 > 0:04:35if and when needed.
0:04:35 > 0:04:38He wasn't gambling, though, with his ability to get
0:04:38 > 0:04:39through the speech.
0:04:39 > 0:04:41Remember hers?
0:04:41 > 0:04:44I did take the precaution of asking my right honourable friend
0:04:44 > 0:04:46to bring a packet of cough sweets, just in case.
0:04:46 > 0:04:50CHEERING.
0:04:54 > 0:05:00But he had to reflect the worry felt by many around the country,
0:05:00 > 0:05:03and fess up to the fact that the economy will be
0:05:03 > 0:05:04sluggish for longer, the country overall less
0:05:04 > 0:05:06wealthy for years.
0:05:06 > 0:05:09The first time there has been this kind of prediction since 1983.
0:05:09 > 0:05:14They revised down the outlook for productivity growth,
0:05:14 > 0:05:18business investment and GDP growth across the forecast period.
0:05:18 > 0:05:21What ministers want you to hear is their promise to spend billions
0:05:21 > 0:05:23more to get house-building going, and to make it cheaper
0:05:23 > 0:05:25to buy the first time.
0:05:25 > 0:05:28Mr Deputy Speaker, when we say we will revive the homeowning dream
0:05:28 > 0:05:29in Britain, we mean it.
0:05:29 > 0:05:32We do not underestimate the scale of the challenge,
0:05:32 > 0:05:40but today, we have made a substantial downpayment.
0:05:40 > 0:05:44It was one of the few surprises, stamp duty will go for good
0:05:44 > 0:05:46for first-time buyers on houses worth up to 300,000,
0:05:46 > 0:05:48that's the majority.
0:05:48 > 0:05:53But it's only expected to prompt around 3500 extra people to buy.
0:05:59 > 0:06:01After Tory concern joined other parties' opposition,
0:06:01 > 0:06:03the Chancellor promised to smooth the sharpest edges of
0:06:03 > 0:06:05the new benefit, Universal Credit.
0:06:05 > 0:06:07Universal Credit delivers a modern welfare system where work
0:06:07 > 0:06:11always pays and people are supported to earn.
0:06:11 > 0:06:16But I recognise, Mr Deputy Speaker, the genuine concerns on both sides
0:06:16 > 0:06:22of the House about the operational delivery of this benefit.
0:06:22 > 0:06:27The controversial benefit won't be paused, but families won't have
0:06:27 > 0:06:30to wait so long to receive the payment when they first claim.
0:06:30 > 0:06:35And they will be able to stay on housing benefit for longer.
0:06:35 > 0:06:38There was cash for more maths teachers, for research
0:06:38 > 0:06:41and development, but no extra money for care for the elderly.
0:06:41 > 0:06:45The health service in England, though, will get an extra
0:06:45 > 0:06:48£2.8 billion in the next couple of years, far less than its
0:06:48 > 0:06:50bosses say it needs.
0:06:50 > 0:06:53But the Government will find more money to give nurses
0:06:53 > 0:06:57a pay rise next year.
0:06:57 > 0:06:59With no obvious clangers so far from the Chancellor,
0:06:59 > 0:07:01the Government hopes this can steady Tory nerves.
0:07:01 > 0:07:04We are at a turning point in our history,
0:07:04 > 0:07:10and we resolve to look forwards, not backwards, to seize
0:07:10 > 0:07:13the opportunities ahead of us, and together to build a Britain fit
0:07:13 > 0:07:14for the future.
0:07:14 > 0:07:21I commend this statement to the House.
0:07:21 > 0:07:23A sigh of relief from the Chancellor, but obvious anger
0:07:23 > 0:07:25from the Labour leader.
0:07:25 > 0:07:28Not enough to change much, he claimed, and not enough
0:07:28 > 0:07:29for millions in need.
0:07:29 > 0:07:32Economic growth has been revised down, productivity growth
0:07:32 > 0:07:37has been revised down, business investment revised down.
0:07:37 > 0:07:41People's wages and living standards revised down.
0:07:41 > 0:07:46What sort of strong economy is that?
0:07:46 > 0:07:50What sort of fit-for-the-future is that?
0:07:50 > 0:07:53They call this a Budget fit for the future -
0:07:53 > 0:07:58the reality is, this is a Government no longer fit for office.
0:08:01 > 0:08:06Remember the Government barely has a majority when it needs it,
0:08:06 > 0:08:08so opposition parties can make life extremely hard.
0:08:08 > 0:08:12He is deluded.
0:08:12 > 0:08:14When you look at the OBR book, the fiscal stimulus
0:08:14 > 0:08:15from this is 0.1%.
0:08:15 > 0:08:17It is nothing.
0:08:17 > 0:08:21Living standards will be severely curtailed.
0:08:21 > 0:08:23We have a very severe squeeze continuing in public services.
0:08:23 > 0:08:28We are pleased that this time, because it's never
0:08:28 > 0:08:30happened before, we have had an opportunity in shaping
0:08:30 > 0:08:37the thinking of the Budget.
0:08:37 > 0:08:40A squeeze that will hang over firms and families around
0:08:40 > 0:08:42the country, a backdrop that the Government at Westminster
0:08:42 > 0:08:43will find hard to escape.
0:08:43 > 0:08:45Laura Kuenssberg, BBC News, Westminster.
0:08:45 > 0:08:47As we've heard, today's Budget was delivered against a backdrop
0:08:47 > 0:08:49of a slowing economy, with official predictions for growth
0:08:49 > 0:08:53downgraded, significantly, for the next five years.
0:08:53 > 0:08:57So, why have the forecasts changed, and where does it leave
0:08:57 > 0:09:00the Government's finances as it faces the challenge of Brexit,
0:09:00 > 0:09:01in the years ahead?
0:09:01 > 0:09:08Our economics editor Kamal Ahmed is here with his analysis.
0:09:08 > 0:09:11Well, Huw the big story of this Budget is that significant
0:09:11 > 0:09:13economic growth downgrade.
0:09:13 > 0:09:17Brexit uncertainty, inflation, falling real incomes and low
0:09:17 > 0:09:19levels of productivity - they've all come together
0:09:19 > 0:09:21in a pretty unpleasant cocktail for the Chancellor.
0:09:21 > 0:09:23How unpleasant is explained by the head of the official
0:09:23 > 0:09:28economic watchdog.
0:09:28 > 0:09:31The outlook for the economy over the next five years looks weaker
0:09:31 > 0:09:33than we forecast in March, primarily because
0:09:33 > 0:09:35we see less scope for productivity growth.
0:09:35 > 0:09:45Public sector borrowing is lower today than we expected in March.
0:09:46 > 0:09:48But the revisions to our economy forecast weaken the outlook
0:09:48 > 0:09:50for tax receipts and put upward pressure on borrowing in
0:09:50 > 0:09:51future years.
0:09:51 > 0:09:53Let's look at those prospects for the economy.
0:09:53 > 0:09:55Last March the OBR predicted that economic growth would
0:09:55 > 0:09:57be 2% this year and then fall back
0:09:57 > 0:10:03a little and recover back to 2% by 2021.
0:10:03 > 0:10:05Today a pretty aggressive cut to that forecast, just 1.5%
0:10:05 > 0:10:12growth, and remaining pretty much around that level until 2021.
0:10:12 > 0:10:14That's the lowest set of economic forecasts
0:10:14 > 0:10:16since the early 1980s.
0:10:16 > 0:10:20Then there's the productivity issue.
0:10:20 > 0:10:22The amount we produce per hour and the key to
0:10:22 > 0:10:24increasing the wealth of the economy and our wages.
0:10:24 > 0:10:27Let's go back to that March forecast again.
0:10:27 > 0:10:28This line shows the hoped-for improvement.
0:10:28 > 0:10:35But it hasn't happened.
0:10:35 > 0:10:38And now the amount productivity increases will
0:10:38 > 0:10:41add to the economy has been downgraded, meaning less growth and
0:10:41 > 0:10:44lower tax receipts for the government.
0:10:44 > 0:10:50And that means it has less money to spend on public services.
0:10:50 > 0:10:55Productivity is just the biggest problem that the UK faces
0:10:55 > 0:10:59alongside the Brexit challenge.
0:10:59 > 0:11:02The investment that we're seeing today in
0:11:02 > 0:11:04skills, infrastructure, innovation is the way to do it.
0:11:04 > 0:11:08If we get it right we can grow our way out of austerity.
0:11:08 > 0:11:09The key to next year will be delivery.
0:11:09 > 0:11:122018 needs to be a year of real action.
0:11:12 > 0:11:13Lower growth and lower productivity means the Chancellor
0:11:13 > 0:11:17has decided to borrow more to boost the economy.
0:11:17 > 0:11:22In March this was the amount the Government expected to
0:11:22 > 0:11:25borrow, down to £16.8 billion by 2022.
0:11:25 > 0:11:31Now, a very different story.
0:11:31 > 0:11:33Yes, better borrowing figures for those first two years.
0:11:33 > 0:11:35Tax receipts are up.
0:11:35 > 0:11:44But then, an increase.
0:11:44 > 0:11:47Borrowing now forecast to be at a much higher
0:11:47 > 0:11:48£30.1 billion by 2022.
0:11:48 > 0:11:51Mr Hammond needs to pay for that extra funding for the NHS.
0:11:51 > 0:11:53And the £3 billion to prepare for Brexit.
0:11:53 > 0:11:55Will the Chancellor ever reach the point of balancing the books?
0:11:55 > 0:11:57It's looking increasingly unlikely that
0:11:57 > 0:12:02we're going to get balanced books, even by the mid 2020s.
0:12:02 > 0:12:05The point at which we're supposed to have got to
0:12:05 > 0:12:08balance has been pushed back and back and back,
0:12:08 > 0:12:11and actually, just to get there, in the mid-2020s, we'd
0:12:11 > 0:12:13have to have another round of spending cuts
0:12:13 > 0:12:16over the early 2020s.
0:12:16 > 0:12:20Given how hard it's been to get where we are I think that's going to
0:12:20 > 0:12:21be pretty tough.
0:12:21 > 0:12:22Pretty tough indeed.
0:12:22 > 0:12:25Two final thoughts - Britain's growth downgrade comes
0:12:25 > 0:12:31as growth picks up across much of the rest of the world.
0:12:31 > 0:12:34And today's Budget did little to fix that problem that affects so many
0:12:34 > 0:12:36millions of people - the fall in real incomes and that
0:12:36 > 0:12:42living standards squeeze.
0:12:42 > 0:12:49Kamal Ahmed, thank you, our economic Senator.
0:12:49 > 0:12:52Housing was one of the main policy initiatives in the budget,
0:12:52 > 0:12:57with the abolition of stamp duty, for first-time buyers,
0:12:57 > 0:13:00on properties up to £300,000 in England, Wales and Northern
0:13:00 > 0:13:01Ireland.
0:13:01 > 0:13:04That was part of a wider package, which the Chancellor said was aimed
0:13:04 > 0:13:06at reviving the home-owning dream, across the UK.
0:13:06 > 0:13:08Mr Hammond set a target of building 300,000 new homes
0:13:08 > 0:13:09a year, by the mid 2020s.
0:13:09 > 0:13:12Our home editor Mark Easton looks at the likely
0:13:12 > 0:13:13impact of the measures.
0:13:13 > 0:13:16It was billed as a watershed budget to fix the broken housing market.
0:13:16 > 0:13:18So we've come to a new development in
0:13:18 > 0:13:21Newbury in West Berkshire.
0:13:21 > 0:13:23Today we set out an ambitious plan to tackle
0:13:23 > 0:13:27the housing challenge.
0:13:27 > 0:13:28Watching the Chancellor in the show house here
0:13:28 > 0:13:31we've got young house-hunters in the bedroom, the council
0:13:31 > 0:13:33in the study, a worried resident in the dining room,
0:13:33 > 0:13:36and a housing association in the living room.
0:13:36 > 0:13:39The headline announcement was the abolition of
0:13:39 > 0:13:44stamp duty for first-time buyers on sales of up to £300,000.
0:13:44 > 0:13:47So, has the Chancellor put a smile on the face
0:13:47 > 0:13:50of working couples like Charlie and Sophie who have a baby
0:13:52 > 0:13:55coming and need somewhere to start the family?
0:13:55 > 0:13:56Well, removing stamp duty seems like a nice
0:13:56 > 0:13:58gesture but on the face of it
0:13:58 > 0:14:04it seems like it might push up house prices.
0:14:04 > 0:14:06I think certainly it's just a token gesture because when
0:14:06 > 0:14:09you're in a position like ours it's actually saving the deposit that's
0:14:09 > 0:14:14the difficult thing.
0:14:14 > 0:14:22The Office for Budget Responsibility tonight warned the
0:14:22 > 0:14:25stamp duty change will only lead to an extra 3500 first-time buyer
0:14:25 > 0:14:26purchases, and will push up prices.
0:14:26 > 0:14:28The Chancellor's big ambition is to build 300,000 homes
0:14:28 > 0:14:30in England every year.
0:14:30 > 0:14:33The last time 300,000 homes were built in a year in England was
0:14:33 > 0:14:35back in 1969 when councils and housing associations built almost
0:14:35 > 0:14:36half of them.
0:14:36 > 0:14:39Is this a game changer in terms of social and affordable housing?
0:14:39 > 0:14:43No, I don't think so.
0:14:43 > 0:14:45We knew about the 2 billion for social housing already.
0:14:45 > 0:14:47Some councils will benefit from the opportunity to
0:14:47 > 0:14:48increase their borrowing.
0:14:48 > 0:14:52But, game changer, no, I don't think so.
0:14:52 > 0:14:54The Chancellor spoke of £44 billion in
0:14:54 > 0:14:56loans and other support to increase housing supply.
0:14:56 > 0:14:58But Treasury documents show less than half of
0:14:58 > 0:15:00that is new money.
0:15:00 > 0:15:02The headline of 44 billion is good news but the
0:15:02 > 0:15:04devil is in the detail, I think.
0:15:04 > 0:15:06The main two takeouts for me are around
0:15:06 > 0:15:07employment training, so we've got the people
0:15:07 > 0:15:13there to build the new homes.
0:15:13 > 0:15:16And it's welfare reform and enabling our residents to pay their rent.
0:15:16 > 0:15:20Just up the road is the other side of the housing story.
0:15:20 > 0:15:23Appropriately the inspiration for the book Watership Down, these
0:15:23 > 0:15:29fields had been due to become 2000 desperately needed homes.
0:15:29 > 0:15:31But after local protests and rows over
0:15:31 > 0:15:34infrastructure the council has pulled the plans.
0:15:34 > 0:15:36So, how do those worried about new development view this budget?
0:15:36 > 0:15:38We welcome the protection of green belt.
0:15:38 > 0:15:39We welcome the emphasis on brown field
0:15:39 > 0:15:43development high-density housing for towns and cities.
0:15:43 > 0:15:46But worry about the 300,000 target as to the
0:15:46 > 0:15:50pressure this puts on councils to push forward unsuitable schemes.
0:15:50 > 0:15:52The Prime Minister says fixing the broken housing
0:15:52 > 0:15:53market is her mission.
0:15:53 > 0:15:59This budget was billed as the day she began to deliver.
0:15:59 > 0:16:01The challenge can perhaps be counted in
0:16:01 > 0:16:03the 120,000 children who are homeless in England tonight.
0:16:03 > 0:16:14Mark Easton, BBC News, West Berkshire.
0:16:14 > 0:16:16As expected, the Chancellor responded to concerns
0:16:16 > 0:16:18about the implementation of the Government's major welfare
0:16:18 > 0:16:22reform, universal credit, by promising a number of measures.
0:16:22 > 0:16:29Mr Hammond said the £1.5 billion package,
0:16:29 > 0:16:32over five years, would help to cut waiting times and make it easier
0:16:32 > 0:16:34for claimants to receive an advance.
0:16:34 > 0:16:36Our social affairs correspondent, Michael Buchanan, reports
0:16:36 > 0:16:38from Peterborough.
0:16:38 > 0:16:41Recent Budgets have tended to mean ill winds for benefit claimant,
0:16:41 > 0:16:44but today there was less of a chill in the air as the Chancellor
0:16:44 > 0:16:45changed direction.
0:16:45 > 0:16:48In Peterborough, universal credit was rolled out last week, leading
0:16:48 > 0:16:51many to fear the consequences.
0:16:51 > 0:16:55So from those who were moved on to the new benefit, a broad
0:16:55 > 0:16:56welcome for today's announcement.
0:16:56 > 0:17:01I think it's a good idea that they've listened to people
0:17:01 > 0:17:03and they're prepared to make changes so people don't have
0:17:03 > 0:17:09to worry about not having anything to live on.
0:17:09 > 0:17:11Yeah, it's great that they're putting things in place,
0:17:11 > 0:17:14but it should have been a long, long time ago.
0:17:14 > 0:17:17The changes to universal credit will cost the Treasury £1.5 billion
0:17:17 > 0:17:18over the next five years.
0:17:18 > 0:17:21The value of advance payments will be doubled and people will get
0:17:21 > 0:17:23longer to repay them.
0:17:23 > 0:17:25That crucial first payment will be made quicker,
0:17:25 > 0:17:29typically after five weeks rather than six.
0:17:29 > 0:17:31And while all benefits currently stop when someone
0:17:31 > 0:17:33claims universal credit, in future housing benefit
0:17:33 > 0:17:37will continue to be paid.
0:17:37 > 0:17:42This announcement is a major climb down by the Government
0:17:42 > 0:17:45who for months insisted that universal credit was working,
0:17:45 > 0:17:50but in the face of mounting evidence that claimants were building up rent
0:17:50 > 0:17:53arrears and forced to go to food banks and widespread opposition
0:17:53 > 0:17:55from everybody from the Labour Party to charities, they've
0:17:55 > 0:17:57been forced to act.
0:17:57 > 0:18:00While the new rules should alleviate a few of the problems
0:18:00 > 0:18:02with universal credit, some say the Chancellor
0:18:02 > 0:18:04should have gone further.
0:18:04 > 0:18:10Universal credit is rolling out a system were people are being made
0:18:10 > 0:18:12essentially worse off, and there was nothing today
0:18:12 > 0:18:14to improve that situation.
0:18:14 > 0:18:17We wanted to see structural change to universal credit,
0:18:17 > 0:18:21so that people kept more of the rewards from work.
0:18:21 > 0:18:24Today's changes won't come into effect until next year.
0:18:24 > 0:18:28So over the coming weeks, thousands of people will be moved
0:18:28 > 0:18:30on to a benefit that ministers now explicitly acknowledge
0:18:30 > 0:18:32is creating hardship.
0:18:32 > 0:18:38Michael Buchanan, BBC News, Peterborough.
0:18:38 > 0:18:47The NHS in England is to get more money, nearly £3 billion over three
0:18:47 > 0:18:49years, and £350 million is to be made available
0:18:49 > 0:18:51immediately to relieve the pressures this winter.
0:18:51 > 0:18:56Sir Bruce Keoch, the medical director of NHS England,
0:18:56 > 0:18:58called the level of funding "worrying" and is warning
0:18:58 > 0:19:04of longer waits for treatment.
0:19:04 > 0:19:06Our health editor, Hugh Pym, has the details.
0:19:06 > 0:19:08The neonatal intensive care unit at Birmingham Women's Hospital.
0:19:08 > 0:19:10Here, they have a clear view what future generations
0:19:10 > 0:19:11will need from the NHS.
0:19:11 > 0:19:13The chief executive says the Chancellor's new funding falls
0:19:13 > 0:19:15short of what's required.
0:19:15 > 0:19:16I feel quite sad about it.
0:19:16 > 0:19:19If I'm honest, I was really looking for the Government to make
0:19:19 > 0:19:22a commitment to what the NHS needs in the long term.
0:19:22 > 0:19:24She told me the money for this winter has come too late.
0:19:24 > 0:19:27It's very difficult to think what we can do now.
0:19:27 > 0:19:30The only thing we could really try is to get additional locum staff
0:19:30 > 0:19:33or to pay existing staff overtime, but it's the same pool
0:19:33 > 0:19:35that we're asking to do extra work all the time.
0:19:35 > 0:19:45NHS England had called for a major fudging increase,
0:19:46 > 0:19:48the Budget deal fell short of that, but health
0:19:48 > 0:19:49commentators said it was
0:19:49 > 0:19:50a step in the right direction.
0:19:50 > 0:19:53It's less than we need, but it's more than we expected.
0:19:53 > 0:19:55There are huge challenges out there on the front line,
0:19:55 > 0:19:58not just for acute hospitals but also for mental health,
0:19:58 > 0:19:59community and ambulance services.
0:19:59 > 0:20:01NHS employers say the Government's pay cap policy has made it
0:20:01 > 0:20:03increasingly difficult to recruit and retain staff.
0:20:03 > 0:20:06Significantly today, the Chancellor said he would find
0:20:06 > 0:20:08the extra money to cover any wage increase recommended
0:20:08 > 0:20:11by the independent pay review body.
0:20:11 > 0:20:13These nurses told me they had something to look
0:20:13 > 0:20:18forward to after many years of pay restraint.
0:20:18 > 0:20:20It's massive, it's massive financially for everybody.
0:20:20 > 0:20:22You know, you struggle every month.
0:20:22 > 0:20:26Every month, you're in your overdraft.
0:20:26 > 0:20:29There's not very many nurses have a savings fund
0:20:29 > 0:20:31and things like that.
0:20:31 > 0:20:34It's very positive, but I just worry that it still leaves some
0:20:34 > 0:20:37uncertainty about what it means for the future, how much
0:20:37 > 0:20:43the pay rise will be.
0:20:43 > 0:20:45The Trust running this hospital has got new Budget funding
0:20:45 > 0:20:48to expand its A&E unit, but a senior NHS England official
0:20:48 > 0:20:50has said the Chancellor hasn't plugged all the funding gap
0:20:50 > 0:20:53and longer waits for care are now unavoidable, which is worrying.
0:20:53 > 0:20:56Hugh Pym, BBC News, Birmingham.
0:20:56 > 0:20:58Let's have a brief look at some of the other measures
0:20:58 > 0:21:01announced in today's Budget.
0:21:01 > 0:21:04They include the personal tax-free allowance rising to £11,850
0:21:04 > 0:21:11and for higher rate tax payers the threshold rises to £46,350.
0:21:11 > 0:21:14Duty on beer, wine, spirits and most ciders will be frozen,
0:21:14 > 0:21:18but duty on high-strength ciders will go up.
0:21:18 > 0:21:25Duty on tobacco will rise by 2% above inflation.
0:21:25 > 0:21:28Car tax for all but the cleanest diesel cars will go up from April,
0:21:28 > 0:21:30but there'll be no increase for diesel vans.
0:21:30 > 0:21:32And the VAT threshold for small businesses will stay
0:21:32 > 0:21:40the same at £85,000.
0:21:40 > 0:21:44A few of the other measures Mr Hammond introduced today.
0:21:44 > 0:21:46In a moment, we'll speak to our political editor,
0:21:46 > 0:21:47Laura Kuenssberg, in Westminster.
0:21:47 > 0:21:50First though, I'm joined by our business editor, Simon Jack.
0:21:50 > 0:21:52I suppose, really, Simon, the sense of the business world's reaction to
0:21:52 > 0:21:58the Budget?The brief is don't stand on any landmines when he went after
0:21:58 > 0:22:02the self-employed trying to put up national insurance. He didn't put
0:22:02 > 0:22:06fuel duties on diesels. He didn't lower that VAT threshold. When you
0:22:06 > 0:22:13have to register. He didn't ditch the 17% corporate tax. There were
0:22:13 > 0:22:17arguments for doing that. He did bring forward a lowering of the rate
0:22:17 > 0:22:20at which business rates go up. There has been a big bear for business.
0:22:20 > 0:22:24That will be worth £2.3 billion. They were pleased about that. He put
0:22:24 > 0:22:30some more money in this mega fund for productivity enhancements he has
0:22:30 > 0:22:34talked about from £23 billion to £31 billion. There was a plan to sell
0:22:34 > 0:22:37off the Government's stake or a big chunk of the Government's stake in
0:22:37 > 0:22:44RBS that will give them £15 billion to play with. That will be sold as a
0:22:44 > 0:22:49big loss. It was a rescue rather than investment. He hopes it will
0:22:49 > 0:22:54give a better return than the RBS shares and improve the long run
0:22:54 > 0:22:57performance of the economy.
0:22:59 > 0:23:01Laura Kuenssberg is in Westminster.
0:23:01 > 0:23:04What does the Budget tell us about the challenges ahead for the
0:23:04 > 0:23:09Government?In terms of the big picture if the forecast, the forest
0:23:09 > 0:23:12of statistics in today's Budget prove to be right from the O brvp,
0:23:12 > 0:23:16it else us this Government is going to be in charge of a country that is
0:23:16 > 0:23:20going to feel poorer for longer than expected. A country were voters are
0:23:20 > 0:23:26going to be still feeling the pinch in their wage packets for longer and
0:23:26 > 0:23:30the likely impact will be that voters will feel grumpier for longer
0:23:30 > 0:23:34about the kind of country that they are living in and the fact that
0:23:34 > 0:23:39after years and years they are still feeling the pinch. It certainly
0:23:39 > 0:23:44means for this Government the original Tory dream of balancing the
0:23:44 > 0:23:52books in 2015 is now far, far, far in the distance. Those George
0:23:52 > 0:23:56Osborne of Philip Hammond's redcressor are dead and buried. The
0:23:56 > 0:24:00short-term politics of this feels something rather different. Given
0:24:00 > 0:24:03how tumultuous the last six months have been, almost every time the
0:24:03 > 0:24:06Government ministers have gone out of the House it seems as if
0:24:06 > 0:24:10something has gone wrong for them. In the short-term, Philip Hammond
0:24:10 > 0:24:14has achieved something today, there has been so far no big mistake that
0:24:14 > 0:24:20suddenly emerged. There has been no glaring error. There may be some
0:24:20 > 0:24:24gremlins buried at the back of the red book, but so far it seems that
0:24:24 > 0:24:28the Chancellor, who don't forget was under a lot of pressure today, has
0:24:28 > 0:24:34managed to get through this Budget, a big set-piece, relatively mistake
0:24:34 > 0:24:39free. It was not the radical reboot that some Tories had hoped for. It
0:24:39 > 0:24:43certainly does not make the Government's long-term problems
0:24:43 > 0:24:47disappear, but given the scale of the drama here at Westminster, the
0:24:47 > 0:24:51sense of chaos there has been sometimes around the Government, at
0:24:51 > 0:24:55least getting through a Budget without a big mistake does feel in,
0:24:55 > 0:25:00in some senses, a win. Not necessarily a win for people around
0:25:00 > 0:25:04the country, but something like political peace.Laura, many thanks
0:25:04 > 0:25:08once again for those thoughts there at Westminster. Laura Kuenssberg.
0:25:08 > 0:25:11You can explore the impact of today's Budget on households
0:25:11 > 0:25:12by going to our Budget calculator.
0:25:12 > 0:25:20Just go to bbc.co.uk/budget and follow the links.
0:25:20 > 0:25:31You will find the calculator there for you.
0:25:36 > 0:25:38Let's turn to the day's other main news.
0:25:38 > 0:25:40The former Bosnian Serb Army Commander, Ratko Mladic,
0:25:40 > 0:25:43has been found guilty of genocide and crimes against humanity
0:25:43 > 0:25:45committed during the Bosnian war in the 1990s.
0:25:45 > 0:25:47A tribunal in the Hague ruled that he bore significant
0:25:47 > 0:25:49responsibility for the killing of 8,000 Muslim men and boys
0:25:49 > 0:25:52at Srebrenica and the siege of Sarajevo, during which more
0:25:52 > 0:25:53than 10,000 civilians were killed.
0:25:53 > 0:25:55From the Hague, our special correspondent, Allan Little,
0:25:55 > 0:25:57sent this report, which does contain some distressing images.
0:25:57 > 0:25:58Mr Mladic, sit.
0:25:58 > 0:26:01It has been the most emotionally charged of all the trials
0:26:01 > 0:26:02this court has heard.
0:26:02 > 0:26:03Mr Mladic, if you...
0:26:03 > 0:26:05Mladic demanded a halt to the hearing because of his
0:26:05 > 0:26:06high blood pressure.
0:26:06 > 0:26:09When the judge refused, Mladic was led out yelling obscenities.
0:26:09 > 0:26:11Curtains down, Mr Mladic will be removed from the court room.
0:26:11 > 0:26:16In his absence, the judge carried on.
0:26:16 > 0:26:19The crimes committed rank among the most heinous known to human kind
0:26:19 > 0:26:20and include genocide and extermination as
0:26:20 > 0:26:27a crime against humanity.
0:26:27 > 0:26:35Mladic committed genocide at Srebrenica in 1995,
0:26:35 > 0:26:41there his men rounded up or hunted down 8,000 men and boys, some
0:26:41 > 0:26:46as young as 12, and murdered them.
0:26:46 > 0:26:49The sniping and bombardment of the capital Sarajevo
0:26:49 > 0:26:53was designed to terrorise the civilian population.
0:26:53 > 0:26:56A member of the SRK shot a Bosnian Muslim woman walking
0:26:56 > 0:27:01on the street with her children.
0:27:01 > 0:27:06He's talking about the woman in the white coat, her name
0:27:06 > 0:27:08is Dzenana Sokolovic.
0:27:08 > 0:27:12The bullet passed through her abdomen and hit her seven-year-old
0:27:12 > 0:27:17son in the head, killing him.
0:27:17 > 0:27:20Last year I went to see her, she told me why she'd gone
0:27:20 > 0:27:21to the Hague to give evidence.
0:27:21 > 0:27:25TRANSLATION:It meant a lot to me, I went for the sake of my child.
0:27:25 > 0:27:28I know that nothing will bring him back, but I would go again
0:27:28 > 0:27:32tomorrow if they asked me.
0:27:32 > 0:27:41I can't tell you how important it was for me to testify.
0:27:41 > 0:27:45Across Bosnia, Mladic's forces drove hundreds of thousands
0:27:45 > 0:27:47of non-Serbs from their homes.
0:27:47 > 0:27:49Thousands of men were held in detention camps,
0:27:49 > 0:27:53were hundreds died.
0:27:53 > 0:27:55For this, Mladic was convicted of murder, extermination
0:27:55 > 0:27:59and forced deportation.
0:27:59 > 0:28:03This is Vikrit in 1982, today he welcomed the verdict.
0:28:03 > 0:28:06"This should send a signal across the world", he told me,
0:28:06 > 0:28:08"that in future war criminals will be punished.
0:28:08 > 0:28:11There will be justice."
0:28:11 > 0:28:14Ratko Mladic was not the architect of ethnic cleansing,
0:28:14 > 0:28:17but he was its ruthless enforcer.
0:28:17 > 0:28:20He didn't just fight a war, he carried out a huge and violent
0:28:20 > 0:28:21criminal enterprise.
0:28:21 > 0:28:28Allan Little, BBC News, The Hague.
0:28:28 > 0:28:30The former vice-president of Zimbabwe, Emmerson Mnangagwa,
0:28:30 > 0:28:32has returned to the country two days before his installation
0:28:32 > 0:28:35as president.
0:28:35 > 0:28:38He fled to South Africa when he was sacked by Robert Mugabe,
0:28:38 > 0:28:40starting a train of events which culminated in Mr Mugabe's
0:28:40 > 0:28:46resignation yesterday.
0:28:46 > 0:28:49This evening, Mr Mnangagwa has told crowds in Harare that the country
0:28:49 > 0:28:57was witnessing the start of a new democracy.
0:28:57 > 0:28:59Our Africa editor, Fergal Keane, sent this report from Zimbabwe.
0:28:59 > 0:29:03This was a man who owned the moment, in front of a crowd that greeted him
0:29:03 > 0:29:05as a conquering hero and with a message of contempt
0:29:05 > 0:29:06for those he'd vanquished.
0:29:06 > 0:29:09"Down with the traitors", he chanted.
0:29:09 > 0:29:14He said the ZANU-PF train would keep rolling, but tempered that
0:29:14 > 0:29:16politicking with an affirmation of this extraordinary moment
0:29:16 > 0:29:26in Zimbabwe's history.
0:29:31 > 0:29:33Today we are witnessing the beginning of a new
0:29:33 > 0:29:34democracy in our country.
0:29:34 > 0:29:35CHEERING.
0:29:35 > 0:29:36The crowd had gathered since early.
0:29:36 > 0:29:42"The crocodile is coming", they chanted.
0:29:42 > 0:29:45All day they waited for Emmerson Mnangagwa,
0:29:45 > 0:29:47he of the legendary ruthlessness, reinvented now as an
0:29:47 > 0:29:48apostle of liberty.
0:29:48 > 0:29:58They were the happy and the hopeful.
0:30:07 > 0:30:10This MP was cast out by Robert Mugabe, now his
0:30:10 > 0:30:11faction is triumphant.
0:30:11 > 0:30:12The country's pleased.
0:30:12 > 0:30:13It's all about the people.
0:30:13 > 0:30:15If the people are happy, I'm happy.
0:30:15 > 0:30:17We did this for the people, the people did this.
0:30:17 > 0:30:20But there were reminders of Mr Mnangagwa's more sinister legacy.
0:30:20 > 0:30:22This is Air Marshal Perence Shiri, who led the notorious Fifth Brigade
0:30:22 > 0:30:24during massacres in Matabeleland soon after independence.
0:30:24 > 0:30:26How do you feel today, General Shiri?
0:30:26 > 0:30:27Do you have anything to say?
0:30:27 > 0:30:28Are you happy?
0:30:28 > 0:30:30He's a close ally of the new President.
0:30:30 > 0:30:33What's very clear to me is that this is a welcoming party,
0:30:33 > 0:30:36not made up of old Zimbabweans, but very much hardcore
0:30:36 > 0:30:37ruling party supporters.
0:30:37 > 0:30:38They celebrate together, but the ruling party
0:30:38 > 0:30:40is no longer a momolith, there are factions within
0:30:40 > 0:30:43factions and loyalty to the new leader will be dependent
0:30:43 > 0:30:47on him delivering change.
0:30:47 > 0:30:50Well, let me ask you, if this President doesn't meet your needs,
0:30:50 > 0:30:51will you challenge him?
0:30:51 > 0:30:56Everyone now is very awake.
0:30:56 > 0:31:00If he doesn't do what we want, we're going to take him down again.
0:31:00 > 0:31:01These are days of questions.
0:31:01 > 0:31:04What will happen to the deposed Robert Mugabe and his wife Grace,
0:31:04 > 0:31:05the military isn't saying.
0:31:05 > 0:31:07Will the new leader bring the opposition
0:31:07 > 0:31:12into a unity government?
0:31:12 > 0:31:15One leading activist told me the international community now had
0:31:15 > 0:31:16to engage with Zimbabwe.
0:31:16 > 0:31:18Well, we expect the international community to be our underwriters
0:31:18 > 0:31:21and guarantors, to make sure that there is the holding
0:31:21 > 0:31:26of credible, legitimate, free and fair elections.
0:31:26 > 0:31:30Tonight's speech was an appeal to a divided party,
0:31:30 > 0:31:33not a wounded nation.
0:31:33 > 0:31:37Zimbabweans are waiting for Mr Mnangagwa to outline a vision
0:31:37 > 0:31:39that breaks with the repressive politics of his past.
0:31:39 > 0:31:49Fergal Keane, BBC News, Harare.
0:31:51 > 0:31:54In just under two hours' time in Brisbane, the England
0:31:54 > 0:31:55cricket team will walk
0:31:55 > 0:31:57out to face Australia, at the ground called the Gabba,
0:31:57 > 0:31:59in the first Test match of the Ashes series.
0:31:59 > 0:32:02It can be an intimidating venue, where Australia haven't lost
0:32:02 > 0:32:03to England since the 1980s.
0:32:03 > 0:32:07Live to Brisbane and our sports correspondent, Andy Swiss.
0:32:07 > 0:32:10Yes, Huw, welcome to Brisbane where it's very nearly the moment that
0:32:10 > 0:32:16cricket fans have been waiting for. 40,000 supporters deaccepteding on
0:32:16 > 0:32:22the Gabba for the late latest chap term of one of sports most famous
0:32:22 > 0:32:27sagas. England are the holders, Australia the favourites, the Ashes
0:32:27 > 0:32:31are at stake.
0:32:31 > 0:32:33REPORTER:Up a bit higher, guys.
0:32:33 > 0:32:35For now they both have their hands on the Ashes.
0:32:35 > 0:32:37Steve Smith and Joe Root, but which captain's grip
0:32:37 > 0:32:38will prove the stronger?
0:32:38 > 0:32:41England's preparations have been overshadowed by memories
0:32:41 > 0:32:44of a thrashing on their last trip here and by the absence
0:32:44 > 0:32:47of their star player Ben Stokes, but for all that there
0:32:47 > 0:32:48is a quiet confidence.
0:32:48 > 0:32:55I'm sure there'll be a few nerves flying around
0:32:55 > 0:32:58underneath the surface, but as a whole there's a really calm
0:32:58 > 0:32:59atmosphere in the dressing room.
0:32:59 > 0:33:03I think that's a really good place for us to be as a side.
0:33:03 > 0:33:06But Brisbane is a picture of Australian bullishness.
0:33:06 > 0:33:08Their familiar weapon, pace.
0:33:08 > 0:33:14Mitchell Starc testing the speed gun before he tests England's courage.
0:33:14 > 0:33:16And if Australia need any extra confidence, well,
0:33:16 > 0:33:20they only have to look around them.
0:33:20 > 0:33:24This is the Gabba, nicknamed the Gabbatoir because Australia
0:33:24 > 0:33:28haven't lost a Test match here for nearly 30 years.
0:33:28 > 0:33:31And without their talisman, even England's optimists are worried.
0:33:31 > 0:33:33Ben Stokes is the best cricketer in the world
0:33:33 > 0:33:36full-stop at the moment.
0:33:36 > 0:33:38I think with him in the side undoubtedly they'd be favourites,
0:33:38 > 0:33:42even away from home, but I think it's evened it up a lot.
0:33:42 > 0:33:44It's a shame Ben's not here, I personally think he should
0:33:44 > 0:33:45be, but there we go.
0:33:45 > 0:33:49I think the Aussies will be delighted that he's not in the team.
0:33:49 > 0:33:51The travelling fans, though, remain hopeful.
0:33:51 > 0:33:57England's Barmy Army winning the pre-Ashes supporters' match.
0:33:57 > 0:34:00But as every one of them knows, it's now down to serious business.
0:34:00 > 0:34:07Andy Swiss, BBC News, Brisbane.