The Budget 2017 BBC News Special

Hammond, as the government takes stock. Stay tuned for live coverage

of the budget 2017. and welcome to our live coverage

of The Budget. It's Philip Hammond's

first as Chancellor and it's also likely

to be his only Spring Budget because after today the Budget

will move to the Autumn. And it's the last Budget

before the Government triggers Article 50

and starts the formal process of leaving the EU,

possibly as early as next week. A few minutes ago the Chancellor

emerged, Red Box in hand, from his official residence,

Number 11 Downing Street, alongside him the Treasury ministerial team,

including his number 2, David Gauke, who we'll be speaking

to a little later on. The red box was made for David

Osborne in 2011. The Chancellor posing for the traditional photo for

the ranks of the photographs in Downing Street on Budget Day and

later he will be making to the House of Commons and he is expected to get

to the Despatch Box in around an hour's time because we have a little

bit of talking to do and then we'll have Prime Minister's Questions, as

usual on a Wednesday and then the Chancellor will get to his feet.

Stay with us as we'll have all the Budget detail and reaction.

I'm outside Parliament where the focus recently has been on Britain's

future outside the EU I will be getting reactions from politicians

across the political spectrum. I'm in Hull the UK City of Culture for

2017 and I'll be getting reaction from businesses, large and small to

the Chancellor's statement. What does the Budget mean to you and your

family's finances? I will respond to your e-mails, text and tweets about

the measures announced today. Plenty of voices, not just from Westminster

but beyond Westminster which is crucial on a day like today.

To help me make sense of it all, we're joined by our political

editor, Laura Kuenssberg, our economics editor, Kamal Ahmed,

They'll all be providing plenty of thoughts on social

media as things happen, if you want to join

the twitter conversation, use the hashtag #Budget2017.

Use the hashtag and the comments can go into the same area and you can

e-mail us as well: We'll try and put some

of your tweets and emails to our experts and guests

during the programme. So it's Chancellor,

Philip Hammond's, big day and the Treasury released these

images of Mr Hammond hard at work last night, putting

the finishing touches to his speech before it's

locked up in the Red Box. As expected, he's facing plenty

of demands from the Opposition to increase spending

in quite a few ares - He's had increased tax

receipts recently. So I'm not asking him to go out

on a huge spending spree. I'm asking him to tackle

the crisis that's here now. It's all well and good saying you're

saving money for later There is a crisis in our NHS

at the moment, there's a He's got top understand

what people are going through. John McDonnell there. He will talk

to us again later. He will probably join us in the studio to give his

response. Laura, can I turn to you. The content of any Budget is

interesting. Any Budget is important but in such a turbulent and

uncertain political time, really the context is - we have never seen

anything like it. Absolutely not. When Philip Hammond steps out of the

shiny black door of Number 11 this morning what has been on his smind

that the country is stepping into an uncertain future, probably the most

uncertain pattern any Chancellor has had to deal with for a very, very

long time. I think today, therefore, we won't hear a very palatable

message from him, really. There are going to be spending cuts and we

expect some tax rises, too. Sure, the picture is likely to look a bit

better than it did since the Autumn Statement, the last big event from

the Chancellor but he is not prone to what he calls "lurches of

sentiment", kind of careering from one thing to another, saying

everything is fine and therefore I can splash the cash, that's not what

we are going to see. There's a trio of tasks he has to achieve to keep

his his and Theresa May's agenda. First, showing he is committed to

balancing the books in a long term albeit at a slower rate than had

been predicted. Second of all, always important on a Budget day,

try to do that without any big political blunder. That's always at

the back of every Chancellor's mind. Think last year and George Osborne

made a big mistake and I think talking about solving some long-term

problems that the country faces. Whether that's social care, we

expect an announcement of a long-term review and additional cash

now. But also things the Treasury are interested in, how do we make

the tax system work better, for example, how do we confront the

changes in technology? He has to deal with short-term pressures but

he will provide clues to a long-term vision at a time which is really

uncertain. . I think it is fair to say some of his colleagues didn't

like the fact he used a phrase like "a roller coaster ride ahead of us",

he used that last year. Are we likely to get that signal in those

terms? I think the tone will certainly be, shall we say, very,

very careful. Philip Hammond is not prone to behave in a way some of his

Cabinet colleagues do, with the hints of a buck inneering future,

Brexit Britain out, promising a land of milk and hobby. He is a caution

politician in anyway case but it is no secret that the Treasury is at

the concerned end of the spectrum around Whitehall at the potential

impact of us leaving the European Union. That is why, rather than

using a little bit of the headroom that he's got stored up, he's

basically going to keep that back in case there are big bumps in the road

as we head towards leaving the European Union. Remember, it's not

the case that he suddenly has tens of billions sitting around in a bank

account. It's that the country is predicted to be borrowing less.

Therefore, there has been pressure on him to say - flash the cash now,

get on with it, please a few more people but he's not going to do

that, I don't think. That leads me to Kamal. That's the context. When

he gets to the despatch box, today, what is the economic landscape we

should be thinking of? Absolutely. I think the two big things to always

look at, as Laura says, over the Budget, are borrowing and growth.

Those are the two big issues. So so let's look back first of all on the

borrowing numbers. If we go back to the November and the predictions in

the Autumn Statement, this was the time of what you might describe as

"peak bloom." Most economic forecasters thought at this stage

real headwinds because of the real headwinds because of the

uncertainty around Brexit. that the economy could be seeing

real headwinds because of the uncertainty around Brexit. The

Office for Budget Responsibility, the Government's official economic

watchdog, predicted, last November, that this would be what our

borrowing looked like over the next five years. So 2016-17, you can

seeiour yoking at around ?68 billion a year, falling every year, down to

about ?20 billion in 2020-21, but, not hitting that idea of balancing

the books until sometime after that date, into the next Parliament.

Despite it being, as Laura says, a key Government pledge.

Since then the economic news is cheerier and things are looking

better and here are the predictions for what borrowing may look like,

given the slightly higher tax receipts which means the Government

has a little more headroom on borrowing, this are numbers from the

Resolution Foundation. They suggest by 2021, the Government may

understood its its target by about ?29 billion. So, just as I say, it

is not money in a bank account that he can take out and stick into the

NHS or whatever but it means slightedly less borrowing.

he can take out and stick into the NHS or whatever but it

slightedly less borrowing. So that's borrow, you mentioned

growth as well. Tell us about that? Again, if we go back to what was

predicted last November, the Office for Budget Responsibility said

growth for this year would be a very cautious and pretty miserable,

frankly, 1.4%. But since then we have had, again this better economic

news. The consumer has been more resilient and kept spending. The

Bank of England, you, a couple of months ago suggested, or a month

ago, suggested the growth this year would be 2%. A much more robust

figure and I'm sure today the OBR will upgrade that growth forecast,

better news for Philip Hammond as he stands up to deliver the Budget but

as important is what will happen after that? Is this pain cancelled

or delayed? I think the OBR will suggest it is pain delayed possibly

until next year, possibly, 2018. It originally estimated that in 2018

growth would be around 1.7%. Lower than the Bank of England's growth

forecast for this year. And the Bath has said in growth for 2018, it

would blow in growth compared to this year. So it is likely that in

growth - these are the two economic forecasters, the Bank of England and

OBR, will forecasters, the Bank of England and

OBR, will say there is likely to be a slowing in growth in 2018, of

course when we will be in the teeth of the Brexit negotiations. #7

forecasters, the Bank of England and OBR, will

course when we will be in the teeth of the Brexit negotiations. #7 I'm

wondering, given the traditional focus on Budget Day is to do with

tax measures and other benefits, what is he likely to do there? Well,

I think what is easy to forget on Budget Day, we have had previous

Budgets and there are changes coming down the road which will be

challenging for some of the groups that the Government says it wants to

help, the just about managing, an economy that works for everyone.

Let's look at what the Government has already announced in terms of

what might be described as tax give-aways, to help some of the

groups it wants to help. The tax-free personal allowance is going

up to ?11,500. We'll probably see some more moves on that. That can be

seen as a tax cut particularly for those on higher numbers. And they've

raised the threshold to ?45,000 and it maybe easier for people to save

what little money they have. But on the other side there is some of the

pain that we mustn't forget. This is still a situation where the

Government is constraining spending, it is not adding to spending. And if

we look at some of the welfare changes already in place, we mustn't

forget there is already the cut in working-age benefit which is still

going through the system. The public sector pay freeze is still there at

1%, despite inflation going up. What is called the Employment Support

Allowance, an allowance for people who are ill or disabled going back

into work. That is being cut back as well. As are child tax credits. So I

think one of the big messages from the Chancellor today, is that, yes,

things are looking a little better, possibly only in the short-term but

still that drive towards balancing the books via austerity, is still

very much front and central of the Government project. Plenty for us to

think about. Simon you have been busy this week in Geneva, I'm

wondering what is the business focus for you today? Businesses have been

on a journey with this Government. When Theresa May arrived she came

out of the traps early warning businesses - you better create a

fair economy that works for everyone, if you don't I will step N

it scared the horses a bit. -- step in. But the Chancellor needs

business. The economy is made up of a few things, consumer spending, who

have been keeping the economy afloat single handedly, and of Government

spending which we know is going to be cut and it is business spending.

He is going to want to try to stimulate that. I expect this Budget

to dove tail in the with industrial strategy we heard earlier in the

year to give people incentives to spend money, to take on new workers,

train them, invest in new plants. For smaller businesses, it is all

three-quart earnings, two-thirds of three-quart earnings, two-thirds of

business also see their rates stay the same or fall for some in certain

areas of country, particularly snout east they face sharp prize --

particularly in the south-east. The Federation of Small Businesses say

there are rises of up to 300%. I expect to see a bit of money top

soften the edges of that. But it'll only soften the edges. These letters

have been written, calculated they are on their way out the door from

the local authorities. There will not be the scope a massive redrawing

of the business rates. Small businesses under the cosh with the

living wage. And if we do get this big change in self-employment that.

Will be big. It'll be interesting to see whether we get the changes today

or whether he nods to a future consultation. Many self-employed

people pay less national insurance for people who are self-employed.

Troublesome if he does that, some may remember the 2015 Tory manifesto

pledge, not to raise, VAT, income tax and national insurance. But as

Simon is hinting, there is appetite in the Treasury for a whole sale

review of how this whole system works, which includes things like

big online retailers getting off relatively scot-free compared to

more traditional retailers in terms of taxation in the high street. The

number from the OBR last fr last year, suggested the Government could

be losing about ?3.5 billion a year in taxes because of the people's

move on to self-employment and the gig economy, it is undermining the

tax base where Philip Hammond has a real problem.

Lead's pause for a second because we are here on Budget day and this is

the focus our Westminster but we are getting reports that four people

have been injured in a stabbing attack in the West Midlands. Police

are telling of this. West Midlands Ambulance Service, I am being told,

saying they are at the scene of a serious incident in the Maryhill

area of Wolverhampton. -- Merry Hill area. It is being reported four

people being injured after a stabbing in the West Midlands and we

will keep you in touch with everything that is going on with

that as it develops on the BBC News Channel and also developments on the

BBC News Channel. We are focusing on Budget day and as Philip Hammond has

already made his way to the House of Commons to get ready for the speech,

we will have prime ministers questions in just under 15 minutes.

Lots of reaction throughout the day and now we join Jane Parliament.

But to Parliament and in a moment I will look at what Philip Hammond

might have in store with Lord Lamont and Chris Leslie but as you have

been reflecting on everything we're going to hear against 30 PM -- from

4:30pm is against the backdrop of the referendum, Britain's decision

to leave the EU. Before I talk to my guess, let's remind ourselves how

the economy has led since that vote. The British people have spoken

and the answer is - we're out. The Bank of England will not

hesitate to take additional measures, as required,

as markets adjust. If you're just managing,

I want to address you directly. I've been here 25 years

and I hope it's going to be We will pursue a bold and ambitious

free trade agreement The industrial strategy that

we've launched today sets I think Brexit is going

to be a wonderful thing. So that is where we are today, the

backdrop to what we will hear this lunchtime. Let's discuss Philip

Hammond's options. Joining me now is the former

Conservative Chancellor, Lord Lamont, and the former

Shadow Treasury Minister, Welcome to both of you. The tone of

this is going to be so interesting, Lord Lamont. We think things are a

little more rosy economically but because of Brexit, he's got to be

very cautious, hasn't it? I think that's right. I think it is

important he emphasises the opportunities as well as the

challenges but I think there are two things it has to do because of

Brexit. One is to keep a little bit back. Some people are saying tax

revenues are better but I think actually, he would be very wise to

keep a bit back just in case there are schools in financial markets

later. Secondly, in this Budget and in every other one that he does, the

emphasis has to be on making Britain competitive. This is going to be a

challenge for Britain outside the EU and we have do have everything

competitive, our costs, our tax rates, our degree of regulation, all

that. Those are the two themes, being competitive and actually

holding something in reserve. But you say that is the case for every

Budget but we are in uncharted territory. This is so different

because by definition, no one really knows what is coming down the track.

That's why I've said what I did! Chris Leslie, your thoughts on the

balance he has to strike between a degree of optimism, as Lord Lamont

says, but actually being cautious. Everyone is using that word this

morning. When you hear Lord Lamont saying it could be a challenge, for

that read there is a Harry Kane potentially on the horizon -- there

is a hurricane potentially on the horizon for the UK economy. Brexit

will dominate, lots of people talk about taxes here or there, spending

here or there but that storm, I personally think the government is

actively heading towards it because of its decision not to try to

salvage single market membership, is already affecting consumers because

sterling has fallen quite considerably, and inflation is

starting to head upwards and we're already seeing consumer spending

power begin to go on the wane. Retail sales down very much in the

last months. So where is the engine of the economy going to come from as

we head into this storm? For me, that is a serious problem. Where is

the engine? First of all, I don't think it is inevitable there will be

a storm or a hurricane coming down. Provided we can get, for most of the

UK economy, tariff free access and a free trade deal, it will be just as

good as the single market. You know, I think all of this myth about the

single market, that it is some kind of Chinese garden with a large wall

around it and we have do have a key to sell things in it, you know, the

top three partners, trading wise, of the EU have no special trade

arrangements with the EU. The idea we couldn't trade with them without

a trade agreement is an illusion, it's completely wrong. But I think

there is a very good chance of having a trade agreement and that is

what the government... It's just nonsense to harp on about membership

of the single market, which during the referendum, people advocating

for Gabi Mayne said it would not make any sense if we were outside

the EU to be part of it. On the other point you raised about the

economy, so far, the economy has been remarkably resilient.

Inflation, as Chris has said, has risen a bit but it is rising even

higher in Germany than it is here. It is not high by historical

standards. I don't think it is inevitable... Nothing is inevitable,

if the government does the right thing and tries to get, well, we had

better get a free trade agreement with Europe because without that, it

is not just the service sector which will suffer, it will be goods and

services, all of those companies, like Nissan, who have 5 million

parts per day, they have to get from this warehouse of the EU, they only

keep half a day's infantry on site. If you have friction in those goods

and services, that trade, we are going to have a real problem for our

business model in the UK, and so, we have do, I think, get the free trade

agreement but if we don't, not only will we have big tariffs and

potentially for components coming in, but also want the goods we want

to sell worldwide. So our exports potentially will be inhibited and so

I worry very much about where the living standards and the consumer

spending power is going to come from when things get more expensive and I

worry about the storm on the horizon with the trade issue, which could be

really severely impaired. Gentlemen, we have to leave it there. We will

find out in the next few hours. Chris Leslie and Lord Lamont, thank

you for being with us and more reaction when we have heard from

Philip Hammond outside Parliament. For now, back to you.

Thanks to you and your guests. Reaction beyond Westminster as well.

where Jo Coburn is with a range of guests to talk about the main

Yes, I'm at a busy distribution centre which employs about 850

people in Hull. We are bringing you breaking news of

an incident in the West Midlands in which two people have died. It

follows what police are describing as a domestic stabbing in

Wolverhampton. There were called to the Merry Hill area of the city at

around 9:45am, where it is believed a man attacked two women before

inflicting injuries on himself. Three air ambulances were called to

the scene, as well as a number of other ambulances and medical staff.

Initial reports we received said that several people were understood

to have been injured in a serious assault in Wolverhampton. Then, as

more details began to emerge from the West Midlands Police, we were

told a man is believed to have attacked two women, before

inflicting stab injuries on himself. West Midlands Police say that a

woman in her 30s and a man in his 30s have died, while another woman,

believed to be in her 50s, has been taken to hospital with what are

described as critical stomach wounds. Police had to use stun

grenades to storm the block of flats where the incident happened, to

storm the flat in a bid to, we are told, destructive and detain the man

who was wielding the knife. -- distract and detain. The woman

believed to be in her 30s died at the scene. The man in his 30s was

pronounced dead a short time later. We understand that a police officer

has also been treated for minor injuries as a result of the

incident. Just to recap if you are joining us, breaking news coming

from the West Midlands, a number of people have been involved in a very

serious incident, a domestic stabbing, we are told, in

Wolverhampton. This happened at a block of flats in the Maryhill area

of Wolverhampton. West Midlands Police have confirmed that two

people have died. A woman in her 30s, and a man, the male suspect in

the case, also believed to be in his 30s, pronounced dead a short time

later, while the woman died at the scene. Another woman, thought to be

in her 50s, taken to hospital with critical stomach wounds. Officers

using stun grenades, as they stormed the flat in a bid to get to the man

with the knife. A police officer treated for minor injuries, we are

told. Three ambulances were called to the scene. We are just checking

to find out if any more details are coming in from West Midlands Police

about this serious incident. At the moment they are confirming the news

of these two deaths, the woman in her 30s, the male suspect, also in

his 30s, and a woman in her 50s, taken to hospital with critical

stomach wounds. Eyewitnesses reported a large number of police

officers arriving at Highfields court. We understand that is the

area of Wolverhampton, where the fatal domestic stabbing has happened

this morning. That is when police were called to the block of flats,

when it was believed a man attacked two women, before inflicting stab

injuries on himself. We are going to keep a close eye on any developments

on that story. Let's return to the budget special.

Yes, we are expecting to see some tax rises from the Chancellor. It is

rumoured national insurance contributions for self-employed

people could go up. At the moment, they pay about 9% on earnings of

just over ?8,000. That compares to employed people who pay 12%. We

could possibly see, there is speculation we will see a 3% rise on

national insurance contributions for the self-employed. Also, we could

see alcohol and tobacco duties going up. Maybe there will be a new tax on

e-cigarettes. If you have any questions about what you do in the

Budget, you can contact us in lots of ways, text 61124, e-mail

[email protected] or tweet. Back to London.

Thanks to the team in Hull because we will be back there later to get

lots of reaction to the speech itself.

You can also take advantage of the BBC's range

of expert analysis, and all the latest Budget

news on the BBC website - bbc.co.uk/budget.

And later today, there will be a calculator on the site

where you can work out the impact on your household's finances.

It's heading towards midday here at Westminster on Budget Day.

A magnificent sight, on the banks of the Thames, Parliament on Budget

day. Very soon, we'll be

in the House of Commons for Prime Minister's Questions,

with the Chancellor's Let's take a peek inside the

chamber. We have a session of departmental questions and I'm

delighted to sell you today that it is questions to the Secretary of

State for Wales. It doesn't get better than that as far as I'm

concerned! And I hope the speaker is very donors with his time allocation

-- generous with his time occasion. The Secretary of State for Wales

just taking questions there before the speaker calls for the Prime

Minister to take questions. Of course, the Chancellor is in place

already, ready Is Laura, the Prime Minister has

already said from scam number Ten what she expects the themes to be?

Yes, she told the Cabinet this morning there would be "A strongp

hand on fiscal tiller." But it would also "Put the wheels in motion for

future growth and prosperity." The mixed metaphors are not mine. It

shows they are trying to balance the books but equip the economy for a

future outside the European Union, make it more dynamic and

competitive. In the Autumn Statement we saw investment in infrastructure,

roads, rails, if you like you have had the bricks and mortar in the

autumn, today we might see the human capital. Skills, schools, how we

actually look like an economy that's really gunning along, not in

2016-17, 18, but much further ahead. Let's join the Prime Minister for

question time. Thank you, Mr Speaker, I'm sure

members across the whole House will wish to join me in marking

International Women's Day as we celebrate the social, economic,

cultural and political achievements of women, both here and around the

world. But we also redouble our efforts to tackle the problems that

women all toop often still face. Mr Speaker, this morning, I had

meetings with ministerial colleagues and others N addition to my duties

in this House, I shall have further such meetings later today. -- in

addition. Can I join the Prime Minister in celebrating

International Women's Day. Since 2010, Conservatives in Government

have a proud record of protecting and supporting both those at risk

and the victims of domestic violence and abuse. I saw this myself when I

joined my local police and I would like to thank them for the difficult

job they do but even as far as too many women are still at risk and are

still suffering. What more account Prime Minister do to tackle this

abhorrent crime? My honourable friend raises a very serious issue,

one in which I have taken a particular personal interest and I

attach very great importance to this issue. Tackling domestic violence

and abuse is a key priority for the Government. And what we have done

already in Government, I think, has the potential to transform the way

in which we think and tackle these terrible crimes when they take

place. We've already committed to bringing forward new legislation and

today, I have confirmed an additional ?20 million to support

organisations working to tackle domestic violence and abuse. This

means the total funding available for our our strategy will be over

?100 million this Parliament. THE SPEAKER: Jeremy Corbyn Thank

you, Mr Speaker. Thank you, very much, Mr Speaker, could I start by

wishing all women a very happy International Women's Day today. And

I'm very proud that the Labour Party has more women MPs than all other

other parties combined in this House. And a Shadow Cabinet of which

half the members are women. A month ago go, Mr Speaker, I raised the

question of the leaked texts between the leader of Surrey council and

Government officials about social care. The Prime Minister's response

was to accuse me of peddling alternative facts. Could the Prime

Minister explain the difference between a sweetheart deal and a

gentlemen's agreement? First of all, the right honourable gentleman

references women in this House. I think I will point out to him that

actually the Conservative Party has taken a further measure in relation

to women in this House recently. We've replaced a Labour male MP with

a female Conservative. CHEERS AND JEERS

He has asked me about the issue in relation to Surrey County Council

and the substance of what he is asking is has there been a

particular deal with Surrey County Council that is not available to

other councils? And the answer to that is no. As I've said before -

the ability to raise a social care precept of 3% is available to every

council. The issue of the retention of 100% of business rates is

currently - is going to be available to a number of councils in ip a.

Let's look at them. Liver -- in April. Let's look at them.

Liverpool, Manchester, London, what do we know about those? Ah, they are

all under Labour control. So what he's actually asking me is - why

should a Conservative council have access to an arrangement that's

predominantly currently available to Labour councils? Mr Speaker, my

question was about the arrangements between the Government and Surrey

County Council. A recording has now emerged saying that the Leader of

Surrey County Council, David Hodge said there was a gentlemen's

agreement between him and the Government which meant they would

not have to go ahead with the referendum. My question is - what

deal was done with Surrey County Council? Because there is an acute

social care crisis that affects every council. 4.6 billion of cuts

made to social care since 2010. Can the Prime Minister tell every other

council in England what gentlemen's agreement is available for them? Can

I say to the right honourable gentleman, on today of all days, I

think if we could just be a little patient and wait half an hour for

the Budget, he will actually find out what social care funding is

available to all councils. If he's - I come back to it, if he is asking

me if there was a special deal for Surrey that was not available to

other councils, the answer is no. If he is looking to uncover a

conspiracy I suggest he just looks behind him.

Well, Mr Speaker, if all the arrangements were so clear and above

board, will the Prime Minister place in the library of the House a record

of all one-to-one meetings that have been held between the Communities'

Secretary and the Chancellor, with any council leader or chair of

social services anywhere in England? And can she explain, if there is no

special deal, why Surrey is the only county council to be allowed into

the business rates retention pilot when it's been denied to others? The

business rate retention pilot will be coming into force for a number of

councils this April. That includes, as I have already said in answer to

his earlier question, Liverpool, Greater Manchester, Greater London,

and some others. In 2019-20, it's going to be available to 100% of

councils. For 2018-19, councils are councils. For 2018-19, councils are

able to apply to the part of a further pilot. That goes for all

councils across the country. The text, Mr Speaker, said there was a

memorandum of understanding. The Prime Minister said there was no

deal. She now is unclear about this. Did she actually know what

arrangement was made with Surrey County Council? She is unkeen on

answering questions on that. There is another area of deep concern over

the whole country. Could the Prime Minister tell us how many new school

places will be needed by 2020? Can I just say to the right honourable

gentleman that really he should listen to the answers I give before

he asks the next question. He said I didn't answer the question about a

special deal for Surrey. I think I've answered it now three times but

I'll do it a fourth time tl.s no special deal for Surrey that was not

available to other councils. Mr Speaker, the Prime Minister was also

asked a question just a moment ago about the number of new school

places needed by 2020, perhaps she could explain why we have a crisis

in school places and class sizes soaring, thanks to her Government?

So what is the answer on the number of new school places needed, Prime

Minister? Well, this Government has a policy, which is about increasing

the number of school places but doing more than that. I want to

increase the number of good school places, so that every child has an

opportunity to go to a good school. That's what the money we are putting

into education is about. It includes money for new free schools - those

will be faith schools, university schools, comprehensives, grammar

schools, university schools I have said, maths schools. There will be a

diversity because what I want is a good school place for every child

and parents to have a choice. What the right honourable gentlemanp

wants is parents to take what they're given, good or bad. Mr

Speaker, the National Audit Office tell us that a very large number of

new school places are needed, 420,000, nothing she's said gets

anywhere near to that. Instead, she proposes a flagship scheme to build

the wrong schools in the wrong place, spending millions of vanity

projects of grammar schools and free schools, whilst at the same time per

pupil funding is falling in real terms. It is time that this colossal

waste of money was addressed. It is doing nothing to help the vast

majority of children, doing not to help with soaring class sizes.

That's what this country wants, not vanity projects from her Government.

It is no vanity project to want every child to have a good school

place. The majority of free schools - the majority of free schools that

have been opened, have been opened in areas where there is a need for

school places and the majority have been opened actually in areas of

disadvantage, where they are helping the very children we want to see get

thep opportunity to get on in life. But I have to say to the right

honourable gentleman, this is about a fairer society and on this Budget

Day, what we see is we are securing the economy Labour want it weaken

it. We are working for a fairer society. Labour oppose every single

reform. We're fighting for the best deal for Britain, Labour are

fighting among themselves. That's Labour, weak, divided and unfit to

govern this great country. Thank you, Mr Speaker. This week it is

likely that in my area four people will suffer a stroke. With this in

mind and given that the highly successful stroke strategy expires

this year, will my honourable friend update the stroke strategy which and

put in place schemes that can increase the outcomes. The NHS wants

to continue to build on the success he is of the current stroke strategy

there. Have been huge improvements. We all recognise huge improvements

over the last decade in stroke care and we want to deliver our ambition

for truly world-leading care. On the particular treatment she refers to,

I understand the NHS has improved the use of mechanical clot retrieval

in specific cases. It does rigorously audit the quality of

stroke care across the country so we can make sure we are delivering on

our commitments and we have some of the fastest improvement in hospital

recovery rates for stroke and heart attacks in Europe. On International

Women's Day, we wish all campaigners for equality well, including the

Waspy campaigners. Mr Speaker, the cross-parliamentary Brexit committee

has recommended the UK must guarantee the status of EU nationals

living in the UK and act unilaterally, if necessary. The

committee then went on to say that the current process for

consideration of the permanent residency applications is not fit

for purpose and in the absence of any contrary resolution to relieve

the anxiety, felt by the #12i789ed 3 million EU citizens resident in the

UK, it is -- felt by the 3 million EU citizens, it is untenable as it

now stands. Given the positive contribution thae. U nationals make

to this country, what concrete plans does the Prime Minister have to deal

with this? As the right honourable gentleman knows, we do want to have

an early agreement, which will enable us to guarantee the status of

EU citizens living in the UK but also, we need to guarantee the

status of UK citizens living in the European Union. As regards the

process of application, the Home Office are looking at this, as they

always do, looking regularly at how they can improve the systems and

simplify them. Mr Speaker, since 2010, the Home

Office has seen its full-time staff equivalent cut by 10% so at current

rates of processing applications for permanent residency, it would take

the Home Office more than 50 years. 50 years to deal with 3.2 million

European nationals in the UK. This is clearly totally and utterly

unacceptable. So will the Prime Minister tell us how quickly she

hopes to be able to guarantee all European nationals permanent

residence? I would say to the right honourable gentleman, you can't just

say and stand up because actually the Home Office is getting more

efficient, it's going to be longer for answers to be given to these

people. Yes, the Home Office is getting more efficient at how it is

dealing with these things. I don't know if he's ever heard about

technology but these days, actually, people apply online and they are

dealt with online. Following the recent findings of the study on

terror convictions in Britain, it is clear there are serious problems

with how communities integrate into society, and the danger that this

lack of integration, leading to acts of terror. Will the Prime Minister

update the house on the government's counter extremism strategy and

response to these findings? Again, this is a very serious issue that my

honourable friend has raised and the government is taking a comprehensive

approach to tackling terrorism, violent extremism at source but also

obviously through counter extremism strategy, looking at extremism more

widely. We want to defeat not just terrorism and violent extremism but

extremism wherever it occurs. We will shortly publish a new

counterterrorism strategy and in the coming months, we will respond to

Dame Louise Casey's report on integration. But this is backed up

by additional investment in the security and intelligence agencies,

2.5 billion over five years and I clear the government is doing

everything it can to tackle issues around integration, extremism and

terrorism. I come from a Westminster Hall debate on behalf of my young

constituent, Sam, who is 11, who developed narcolepsy as a result of

receiving a vaccine to protect him from swine flu. Sam's mother is in

the gallery today. In rare and devastating cases could the lease

between pandemrix narcolepsy is proven and yet families face a long

legal battle with the government. Will the Prime Minister today

promised that no more of these disabled children will be handing

all the courts. -- handed through the courts. Will she apologised to

the families concerned and also oversee payments to support the

children's long-term care needs. Can I first of all congratulate the

honourable lady on securing the Westminster Hall debate on this

important topic. She referred to at the end of her question to the issue

of payments. Of course, I'm sure she realises the vaccine damage payment

scheme is not a compensation team but a one-off tax-free lump sum

which is paid to ease the burden of those who are disabled as a result

of vaccination and it is part of a range of support provided. She has

raised a very specific case and can I suggest you learn that obviously,

she's had that Westminster Hall debate, we want to ensure the

process is open and fair at every stage. The DWP looks at every claim

based on its own facts and if she wants to write with the details, I'm

sure my honourable friend the Minister for disabled people, health

and work will look into the specific case she has raised. Closed

question: Mr Michael Fabricant. Question for, sir. While I won't

speculate on the statement is my right honourable friend the

Chancellor will make very shortly, I can assure my honourable friend that

the fundamentals of our economy are strong. Since 2010 from employment

in the West Midlands has risen by 215000 and private sector employment

alone grew by 80,000 over the last year. We have also seen schools and

police budgets being protected and more doctors and nurses in his local

hospitals. Michael Fabricant. And of course, we have also witnessed the

post Brexit vote of confidence from Nissan, Boeing and Dyson, investing

in other parts of the country. Good my right honourable friend speak a

bit more about firms like Jaguar Land Rover in the West Midlands? I'm

happy to say to my honourable friend that of course in the wider sense,

our plans for the Midland engine show we want an economy that works

for everyone. We have already confirmed over 330 million in the

Croasdale funding, money going to the West Midlands engine investment

fund, the Birmingham rail hub but it is important to recognise the

investment being made in the UK by companies like Jaguar Land Rover who

will be building their new range Rover model in Solihull. That is

very good news for the West Midlands. It is also very good news

for the British economy and is a sign of the confidence Jaguar Land

Rover has in the UK for the future. Gordon Marsden. Mr Speaker, my

casebook is now full of the anxiety is the DWP and Home Office are

imposing on the honourable constituents, including officials'

devs to overturn tribunal decisions protecting benefits and residents,

including a family settled here for eight years and a man with a severe

brain injury. Can I ask the Prime Minister if she wants people to

respect Brexit means Brexit, shouldn't she respect that tribunal

's mean tribunal is, and not try to block them with grubby regulations,

affecting 164,000 disabled people? If the right honourable gentleman is

referring to the decision that has been taken in relation to the courts

and the personal independence payments, as I explained in this

house last week, as has been explained by the Secretary of State,

this is about restoring the system to the state that it was intended to

be when Parliament agreed it. It was agreed by the coalition government,

agreed by this Parliament, after extensive consultation. Mark

Menzies. Mr Speaker, in National apprenticeship week, it is important

to recognise this government's commitment to investment and

commitment in apprenticeships and skills. Would the Prime Minister

look at encouraging a greater commitment to degree apprenticeships

as part of the government strategy, as championed in businesses in my

constituency like BAE Systems who have been at the forefront of

developing these new programmes through its engineering degree

apprenticeships scheme? My right honourable friend has raised a very

important issue at, as we look to the future, we want to ensure that

people in the UK have the skills they need for the economy of the

future, degree apprenticeships will be an important part of this and as

he refers to specifically, there are companies like BAE Systems which

have been right at the forefront of developing those new programmes. I

am pleased to say that overall, if we look at apprenticeships, the

apprenticeship levy will take the total investment in England, ?2.45

billion, double what was spent in 2010. That means it is more

opportunities for young people to gain the skills they need for the

future. Dan Jarvis. Tomorrow, a memorial will be unveiled to those

men and women who served our country in Afghanistan and Iraq. Does the

Prime Minister agree that we should all pay tribute to their service and

commemorate their sacrifice? Not just with a memorial but through a

commitment to learn from the past and do better in the future. The

honourable gentleman raises a very important point. This will be a very

significant ceremony when this memorial is unveiled and we should

all, I think, across this house, paid tribute to those whom that

memorial will be recognising, for the sacrifice they made. Those in

our Armed Forces but also all those civilians who worked to deliver aid

and health care and education. It is important that we recognise the

sacrifices made by our Armed Forces and also by their families. That

will be a significant moment tomorrow. We are very clear that we

do need to learn the lessons from the past and that is exactly what we

will do. Johnny Mercer. Thank you, Mr Speaker, and I was delighted with

the Prime Minister's intervention in that it was in January which I still

feel has not had the attention it deserves. -- intervention in mental

health. In Plymouth, we are completely reconfiguring services

because we realise parity of esteem means nothing without parity or

provision. Will the Prime Minister, visit Plymouth and see some of the

pioneering work we are doing, and perhaps in national mental health

week in May where I am hoping Plymouth will take a national lead?

I thank my honourable friend because I know this is an issue he has

championed and it is very close to his areas of concern. He's done a

lot of lot of work on mental is important as he talks about the

parity of esteem, which the government has introduced, and more

money is going into mental health provision than ever before. I would

certainly be delighted to see the work done in Plymouth provided my

diary allows it. Julie Cooper. In my constituency of Burnley, primary and

secondary schools are severely underfunded. Maintained nursery

schools are struggling to survive. Why that at this time, when we

cannot adequately fund the schools we already have, if the Prime

Minister suggesting spending millions of pounds creating new

grammar schools that will help only a minority of children? This is as

unfair as the new funding formula and will do nothing to help social

mobility. Let's be clearer about what the government has done. There

are record amounts of funding going into education in this country. The

Conservative led government introduced the pupil premium. The

Conservative government has protected the core schools Budget.

When it comes to new money that will be going into schools as a result of

today's announcements, that money is not about a return to a binary

system of grammar schools and secondary moderns. That is not what

we are going to do. What we are doing is ensuring we give a

diversity of provision so yes, grammar schools but comprehensives,

faith schools, universities ghouls, maths schools. What I want is a good

school place for every child, and more than that, the right school

place for every child. Amanda Milling. On this International

Women's Day, it is absolutely fantastic we have the highest female

employment rate on record. We have the highest percentage of women on

FTSE 100 boards on record. The gender pay gap is at the lowest on

record. And we have an amazing female Prime Minister. CHEERS AND

JEERS. Never, Bill -- however, I'm sure the Prime Minister will agree

there much more to do, in particular supporting women back to work after

a career break. Can my right honourable friend outline what more

the government are going to do to level the playing field? I thank my

honourable friend for her question. When I stood on the steps of Downing

Street last July, and talked about a country that works for everyone, I

meant that and that is why we are taking a number of measures...

Including an International Women's Day, today, and we will be setting

up a new fund to help mothers returning to work after a long

career break. Returnships are important and open to both men and

women but it is important to recognise the majority of those who

take time out of a career women who are devoting themselves for

motherhood -- demanded for a period and often getting back into

employment is difficult and they find it closed off which is why it

makes economic sense but it is also right unfair for those women that we

provide for the returnships to get them back in the workplace. Everyone

agrees that early years education is crucial for the welfare and future

of our children. However, nurseries in my constituency tell me that the

funding for 30 hours for free childcare is not sufficient and not

enough and many of them will be forced to close. What steps will the

Prime Minister take to ensure those nurseries don't close? Can I say to

the honourable lady, she talks about the 30 hours that is being

introduced, if you just look at what we are doing on childcare, we have

introduced 15 hours free childcare a week for three and four-year-old is

already, 15 hours free childcare for disadvantaged -year-olds and help

win up to 70% of childcare costs for people on low incomes and shared

parental leave and we will spend a record ?6 billion on childcare

support by end of this Parliament. It is this Conservative government,

conservatives in government have the record of supporting parents in

relation to childcare needs. Michelle Brooke. Does my right

honourable friend agree with me that it is indefensible for the police

and crime commission in west Yorkshire to be raising council tax

precept when he's got ?120 million in reserve and overspent this year's

Budget by ?4 million? -- Alec Shelbrooke. Can I say to my

honourable friend, the decision about what to do on the police

precept on council tax is a matter for the directly elected police and

crime commission for West Yorkshire as it is in every area that has a

policing crime commission. But I would encourage those commissioners

to look at ways of introducing efficiencies into their forces

before looking to increase local taxes. I think what we have seen

over the last six years is that police forces can find sensible

savings and can reduce crime at the same time. Brian Davis.

Mr Speaker commune at the Royal College of physicians have found

that 40,000 people die prematurely each year from diesel pollution at a

cost of ?20 million to the economy, and that YouGov have found 45% of

diesel drivers are willing to switch, given the right scrappage or

tax incentive schemes. So will she today commit to a fiscal strategy

and a new clean air act to put us on a new, cleaner, healthier

trajectory, to take global leadership rather than be dragged

into the courts to fulfil basic EU air quality standards? As the

honourable gentleman will know, we are looking at the measures that we

need to introduced to improve air quality. There has been improvements

in recent years but we do need to go further and that is what the

government is looking at across departments, obviously, with the

Department for environment, food and rural affairs actually paying most

attention to that because it is in their remit and we will bring

proposals on air quality forward in due course.

International Women's Day is a chance to reflect on how governments

and democracies across the world serve women. Will my right

honourable friend confirm that when it comes to female Prime Ministers,

it's 2-0 to the Conservatives? Well, I'm grateful to my honourable

friend for having pointed that out, which I refrained from doing earlier

in response to questions but I think it is very telling that the Labour

Party spend a lot of time talking about rights for women and giving

support to women and getting women on, whereas it's a Conservative

Party that is the party, in this House, that has provided two female

Prime Ministers. Thank you, Mr speaker. Will the

Prime Minister give an undertaking that any new Scotland Act will only

be drafted after full consultation with the people of Scotland, and

with the consent of the Scottish Parliament? I would say to the

honourable lady, I'm not sure if she's referring to discusses

currently taking place about the powers that might be available to

the devolved administrations available to the devolved

administrations when we discuss to leave the EU but we knows full well

that we all... Crowd Comms a business in my

constituency operates out of its small market down and has offices in

Seattle and Sydney. And it has high-quality jobs for people

available themselves of fast broadband and telephone

communication. This is the recipe for growing the rural economy. Will

my right honourable friend ensure it undertake her Government does all

that it can to I will can the blackspots in rural areas? I can

assure my honourable friend that we want to ensure we are doing that. My

right honourable friend the Secretary of State for Culture,

media and sport is looking at our digital strategy and ensuring

broadband is available in rural areas and indeed at good speeds in

other areas which might be less rural than my honourable friend's

conzitcy. -- constituency. THE SPEAKER:

Finally, Mr Tim Farron. Thank you Mr Speaker. Order, order. I don't know

why honourable members are cheering because it is finally or the

popularity of the honourable gentleman. You are very

uncharacterically kind. Mr Speaker uncharacterically kind. Mr Speaker

on International Women's Day we stand with women and girls across

the world and note with resolve that we must take not for granted the

progress we have made towards equality over the last few decades.

Mr Speaker, yesterday we heard that hundreds of families of soldiers who

died in Iraq and Afghanistan have been denied seats at tomorrow's

unveiling of the memorial to our fallen troops. Inviting a relative

of each of those killed in Iraq and Afghanistan would have taken up

fewer than one-third of the 2,500 seats at that event. Will she now

apologise to those families for what I assume is a careless oversight and

rectify that mistake immediately to the so bereaved families can come

and pay their respects to their fallen loved ones? Can I reassure

the honourable gentleman to assure him that charitable groups

representing the bereaved were asked to put forward names I have a

tendees and we look forward to welcoming so we can acknowledge the

sacrifice their loved ones made. Over half of those attending

tomorrow are current or members of Armed Forces. No-one from the

bereaved community has been turned away and everyone who has applied

has been successful. I am' reassured if there are any bereaved families

who wish to attend the Ministry of Defence will make every effort to

ensure that they can do so. Speak speak order.

Prime Minister's Questions comes to a close, and we now

have a change in the Speaker's Chair.

We are now getting towards the Budget statement.

By tradition, the principal Deputy Speaker, currently

the Labour MP Lindsay Hoyle, also known as the Chairman of Ways

and Means, takes the chair for the Budget statement.

Proposals for raising taxation used to originate

So we are getting ready for the budget.

Thank you Mr Deputy Speaker. I report today on an economy that has

continued to confound the commentators with robust growth. A

labour market delivering record employment and a deficit down by

over two-thirds. As we start our negotiations to exit the European

Union, this Budget takes forward our plans to prepare Britain for a

brighter future. It provides a strong and stable platform for those

negotiations. It extends opportunity to all our young people. It delivers

further investment in our public services, and it continues the task

of getting Britain back to living within its means. We are building

the foundations of a stronger, fairer, more global Britain. Mr

Deputy Speaker, as the House knows, this will be the last Spring Budget.

The Treasury has helpfully reminded me that I am not the first

Chancellor to announce the last Spring Budget. 24 years ago, Norman

Lamont also presented what was billed then as the last Spring

Budget. He reported on an economy that was growing faster than any

other in the G7 and he continued to commit to restraint in public

spending. The then Prime Minister described it as the right Budget at

the right time, from the right Chancellor. What they failed to

remind me, Mr Deputy Speaker, was that ten weeks later he was sacked.

So, wish me luck today. Mr Deputy Speaker, last year the British

States, faster than Japan, faster States, faster than Japan, faster

than France. Indeed amongst the major advanced economies, Britain's

economic growth n 2016 was second only to Germany. Employment is at a

record high. Unemployment is at an 11-year low, with over 2.7 million

more people enjoying the security and dignity of work than in 2010. A

very far cry from the 3 million unemployed predicted by the party

opposite. And I'm pleased to report, Mr Deputy

Speaker, on International Women's Day, that there is now a higher

proportion of women in the workforce than ever before. I'm even more

pleased to report, as my right honourable friend, the Prime

Minister has remarked, since February 23rd, there is a higher

proportion of women in work in the parliamentary Conservative Party.

But Mr Deputy Speaker, there is no room for complacency and you will

not find any on these benches. As we prepare for our future outside the

EU, we cannot rest on our past achievements. We must focus,

relentlessly, on keeping Britain at the cutting edge of the global

economy. The deficit is down, but debt is still too high. Employment

is up, but productivity remains stubbornly low. Too many of our

young people are leaving formal education without the skills they

need for today's labour market. And too many families are still feeling

the squeeze, almost a decade after the crash. So, our job is not done.

And our task today is to take the next steps in preparing Britain for

a global future - to quip our young people with the skills they need, to

support our public services and to help ordinary working families, as

we build an economy that works for everyone.

Mr Deputy Speaker, I thank the Office for Budget Responsibility for

their report received today. Let me take this opportunity to thank my

right honourable friend the Chief Secretary and my ministerial team

who really are the unsung heroes of the Budget, doing much of the heavy

lifting over the last few weeks and of course my excellent PPS, my right

honourable friend. I turn now, Mr Deputy Speaker, to

the OBR forecast. This is the spread sheet bit but bear with me, because

I have a reputation to defend. The OBR forecast the level of GDP for

20221 to be broadly the same as at Autumn Statement however the path we

get there has changed. Reflecting the recent strength in the economy,

the OBR has upgraded its forecast for growth this year, next year,

from 1.4% to 2%. And Mr Deputy Speaker, I don't see too many people

on the Opposition front bench doing this. In 2018-19, growth is forecast

to slow to 1.6%, before picking up to approximate 1.7%, then 1.9%,

returning to 2% in 2021. Resilience in the economy is

reflected in a strong labour market. Since 2010, the employment rate has

risen from 70.2, to 74.6, with positive news for all parts of the

United Kingdom. Unemployment has fallen fastest in Yorkshire and the

Humber and Wales. Wages have grown fastest in Northern Ireland. And

productivity has grown fastest in Scotland and in the north-east.

And this positive trend is set to continue over the forecast period.

The number of people in employment is set to grow in every year, with a

further two-thirds of a million people in work by 2021. The OBR

forecast inflation at 2.4% this year, then 2.3% next year and 2% in

2019. And most importantly, Mr Deputy

Speaker, despite higher than target inflation, real wages continue to

rise in every year of the forecast. Mr Deputy Speaker, while the

economic forecasts are broadly unchanged since the autumn, the OBR

has substantially revised down its short-term forecast of public sector

net borrowing. The OBR attributes this change to a number of one-off

factors that they do not expect to lead to a structural improvement

over the forecast period. Combining these factors with the higher

short-term forecasts for growth and taking into account the measures

that I shall announce today, the OBR now forecasts borrowing in 2016-17

to be ?16.4 billion lower than forecast in the autumn, at ?51.7

billion. Then, ?58.3 billion in 2017-18,

?40.8 billion in 18-19. ?21.4 billion, ?20.6 billion and finally

?16... In 21-22. All lower than forecast at Autumn Statement.

Over all, public sector net borrowing, as a percentage of GDP is

predicted to fall from 3.8% last year to 2.6% this year. And

forethose who care about such things, it means we are forecast to

meet our 3% EU be stability and growth pact target this year for the

first time in almost a decade. But I won't hold my breath, Mr Deputy

Speaker, for my congratulatory letter from Jean-Claude junker.

Borrowing is then forecast to be 2.9% in 17-19 and then to fall.

21-22 will be the lowest level in two decades. The OBR expect

cyclically adjusted public sector net borrowing to be 6.9% in 2020-21.

Giving us a #23rs target in the new fiscal rules, maintaining our fiscal

resilience over the period. The OBR's forecast of lower near-term

borrowing, coupled with recent strength in the economy, be means

lower debt across the period. The OBR now forecast that is debt will

rise to 86.6% this year before peaking at 88.8% next year. 1.4%

points lower than forecast in the autumn. It then falls in 2018-19,

for the first time since 2001-2, to 88.5%, and then continues to decline

to 86.9% in 1920, 83% in 20-21 and 79.8% in 21-22. Mr Deputy Speaker,

at the Autumn Statement, I set out our plan to return the politic

finances to balance in the next Parliament. A plan that is now

underpinned by our new fiscal rules. That plan strikes the right balance

between reducing the deficit, preserving fiscal flexibility and

investing in Britain's future. Some have argued that lower borrowing

this year makes a case for more unfunded spending in the future. I

disagree. Britain has a debt of nearly ?1.7 trillion. Almost ?62,000

for every household in the country. Each year, we are spending ?50

billion on debt interest, more than we spend on defence and policing

combined. And borrowing, over the forecast period, is still set to be

?100 billion higher than predicted at Budget 2016. So the only

responsible course of action, Mr Deputy Speaker, is to continue with

our plan, undeterred by any short-term fluctuations and

undistracted... Undistracted by the reckless policies advance by the

opposition. Because, Mr Deputy Speaker, we on this side will not

saddle our children with ever increasing debt.

SHOUTING Mr Deputy Speaker, I think the honourable members opposite may

need to have a word with their own front bench, which proposes

borrowing another ?500 billion to saddle our children and burden their

futures. So, Mr Deputy Speaker, the Budget I

set out today will again fund all additional spending decisions over

the forecast period. Mr Deputy Speaker, a strong economy needs a

fair, stable and competitive tax system, creating the growth that

will underpin our future prosperity. My ambition is for the UK to be the

best place in the world to start and grow a business. Under the last

Labour government, corporation tax 28%. By the way, they don't call it

the last Labour government for nothing!

From... From April this year, from April this year, it will fall to

19%, the lowest rate in the G20. In 2020, it will fall again to 17%,

sending the clearest possible signal that Britain is open for business.

Mr Deputy Speaker, I am listening to the voice of business. As I

committed at the Autumn Statement, we have reviewed with business hour

aren't the tax credit regime, the one place where I am not going to

hear the voice of business is from the benches opposite! -- our R tax

credit regime. We have done so, and we have concluded that it is

globally competitive. But to make the UK even more attractive for R,

we have accepted industry calls for a reduction in administrative

burdens around the scheme, and we will shortly bring forward measures

to deliver them. In a digital age, it is right that we develop a

digital tax system, but in response to concerns about the timetable

expressed by business organisations, and by several of my right

honourable friends, including the chairman of the Treasury Select

Committee, I have decided that for businesses with turnover below the

VAT registration threshold, I will delay by one year the introduction

of quarterly reporting, at a cost to the Exchequer of ?280 million. And I

have heard the cause by North Sea oil and gas producers and the

Scottish Government to provide further support for the transfer of

late life assets. As UK oil and gas production declines, it is

absolutely essential that we maximise exploitation of remaining

reserves, and so we will produce a formal discussion paper on the

options in due course. Mr Deputy Speaker, there is one further area

in which I can introduce action to back British businesses. My right

honourable friends community secretary and I have listened to the

concerns raised by colleagues in this House and by businesses about

the effect of the 2017 business rates revaluation. Business rates

raises ?25 billion a year, all of which, by 2020, will be going to

fund local government, so we cannot abolish them, as some have

suggested. But it is certainly true, in the medium term, that we have to

find a better way of taxing the digital part of the economy, the

parts that does not use bricks and mortar. But in the meantime, there

is scope to reform the revaluation process, making it smoother and more

frequent to avoid the dramatic increases that the present system

can do live. We will set out our preferred approach in due course,

and we will consult on it before the next revaluation is due. The

revaluation itself, Mr Deputy Speaker, is by law this Bill

neutral, and ahead of this revaluation, the Government

committed to a package of cuts to business rates now with nearly ?9

billion. -- this can be neutral. It raises the threshold so that six and

a thousand small businesses are taken out of paying rates

altogether. But the revaluation has undoubtedly raised some hard cases,

especially for those businesses coming out of small business rates

relief. So today, as I promised many of my right honourable friends I

would, I address those concerns with three measures which applied to the

national business rate system for England. First, any business coming

out of small business rate relief will benefit from an additional cap.

No business losing small business rate relief will see their bill

increase next year by more than ?50 a month. And the subsequent

increases will be capped at either the transitional relief cap or ?50 a

month, whichever is higher. Second, recognising the valuable role that

local pubs play in our communities, I will provide a ?1000 discount on

business rates bills in 2017 for all pubs with a rateable value of less

than ?100,000. That is 90% of all pubs in England. And, third, I will,

on top of these two measures, I will provide local authorities with a

?300 million fund to deliver discretionary relief to target

individual hard cases in their local areas. This fund will be allocated

to local authorities by a formula, and my right honourable friend the

Communities Secretary will set out details in due course. Taken...

Taken together, Mr Deputy Speaker, this is a further ?435 million cut

in business rates, targeted at those small businesses facing the biggest

increases, protecting our pubs, and giving local authorities the

resource to respond flexibly to local circumstances. Mr Deputy

Speaker, just as a strong economy requires a tax system that is

competitive, a strong society requires one that is fair. Because I

have committed to funding my spending decisions, rather than

borrowing more, I make no podgy for raising additional revenues and for

doing so in ways which enhance the fairness of the system. -- I make no

apology. First and foremost, that means collecting the taxes that are

due. Since 2010, we have secured ?140 billion by taking robust action

to tackle avoidance, evasion and noncompliance. This has helped the

UK attain one of the lowest tax gaps in the world, but in this Budget we

set out further actions to stop businesses from converting capital

losses into trading losses, to tackle abuse of foreign pension

schemes, to introduce UK VAT on roaming telecoms outside the EU in

line with international standard practice, and from July we will

introduce a new financial penalty for professionals who enable a tax

avoidance arrangement that is later defeated by HMRC. Taken together,

these measures will raise ?820 million over the forecast period.

But, Mr Deputy Speaker, as well as collecting taxes that are due, a

fair system ensures that those with the broadest shoulders bear the

heaviest burden. As a result of the changes we have made since 2010, the

top 1% of income taxpayers now pay 27% of all income tax, a higher

proportion than in any year under the last Labour government. But a

fair system, a fair system will also ensure fairness between individuals,

so that people doing similar work for some low wages, and enjoying

similar state benefits, pay similar levels of tax. As our economy

responds to the challenges of globalisation, shifting demographics

and the emergence of new technologies, we've seen a dramatic

increase in the number of people working as self-employed or through

their own companies, indeed many of our most highly paid professionals

work through limited liability partnerships and are treated as

seldom ploy. There are many good reasons for choosing to be

self-employed, or working through a company. Indeed, Mr Deputy Speaker,

I have done both in my time. And I will always encourage and support

the entrepreneurs and the innovators who are the lifeblood of our

economy, people should have choices about how they work, but the choice

should not be judged primarily by differences in tax treatment. My

right honourable friend the Prime Minister has asked Matthew Taylor,

the chief executive of the RSA, to consider the wider implications of

different employment practices and I look forward to his final report in

the summer, and I am grateful to him for sharing his preliminary

thoughts. He is clear that differences in tax treatment are a

key driver behind the trends we are observing, a conclusion which is

shared by the IFS and the Resolution Foundation. An employee earning

?32,000 will incur between him and his employer ?6,170 of national

insurance contributions. A self-employed person earning the

equivalent amount will pay just ?2300, significantly less than half

as much. Historically, the differences in NICs reflected a

difference in state pension entitlement and contributory welfare

benefits, but with the introduction of the new state pension last year,

these differences have been very substantially reduced. Self-employed

workers now build up the same entitlement to a state pension as

employees, a big pension boost for the self employed. The most

significant remaining area of difference is in relation to

parental benefits, and I can announce today that we will consult

in the summer on options to address the disparities in this area, as the

FSB and others have proposed. Mr Deputy Speaker, the difference in

national insurance contributions is no longer justified by the

difference in benefit entitlements. Such dramatically different

treatment of two people earning essentially the same undermines the

fairness of our tax system. Employed and self-employed alike, use our

public services in the same way, but they are not paying for them in the

same way. The lower national insurance paid by the self-employed

is forecast to cost our public finance billions this year alone.

This is not fair to the 85% of workers who are employees. The

abolition of class two NICs for self employed people, announced by my

right honourable friend the member for Tatton in 2016, and due to take

effect in 2018, would further increase the gap between employment

and self-employment. To be able to support our public services in this

Budget, and to improve the fairness of the system, I will act to reduce

the gap to better reflect the current differences in state

benefits. I have considered, Mr Deputy Speaker, the possibility of

simply reversing the decision to abolish class two contributions, but

the class two NIC is aggressive and outdated. It is absolutely right

that it should go, so instead, from April 2018, when it is abolished,

the main rate of class four NICs for the self-employed will increase by

1% up to 10%, with a further 1% increase in April 2019. The

combination of the abolition of class two and the class four

increases I have announced today raises a net ?145 million a year for

our public services by 2021-22, an average of around 60p per week per

self-employed person in this country. And since class two

contributions are payable at a flat rate, while class four is chargeable

as a proportion of profits, all self-employed people earning less

than ?16,250 will still see a reduction in the total NICs bill.

This change reduces the unfairness in the NICs system and reflect more

accurately the current differences in benefits available from the

state. Mr Deputy Speaker, alongside the gap between employees and the

self-employed, there is a parallel self-employed, there is a parallel

unfairness in the treatment of those working through their own companies.

Britain has the most competitive corporate tax regime in the #2k3w7.

We must ensure that our corporate tax regime does not encourage people

across the country to form companies to reduce tax liabilities, pushing

the burden of financing our public services on to others. HRMC

estimates that existing corporations cost the public finances over ?6

billion a year and the OBR forecasts that at the current rate of increase

an additional annual cost to the exchequer will occur from those

chosing to incorporate of ?3.5 billion a year by 2021-22. The gap

in total tax and NICs between an employed worker and one who has set

greater than the self-employed and greater than the self-employed and

there are perfectly legal ways in which that gap can be made bigger

still. It is not fair and not affordable. Fairness demands this

discrepancy and treatment has addressed, just as I have addressed

the discrepancy with the self-employed. The dividend

allowance has increased the tax advantage of incorporation. It

allows each director shareholder to take ?5,000 of dividends out of

their company, tax-free, over an above the personal allowance. It is

also an extremely generous tax break for investors with substantial share

portfolios. I have decides, therefore, to address the unfairness

around director shareholders' tax advantage and at the same time,

raise some much-needed revenue to fund the measures I shall announce

today, by reducing the tax-free dividend allowance from ?5,000, to

?2,000, with effect from April 2018. About half the people affected by

this measure are director shareholders of private companies.

The rest are investors in shares with holdings worth typically, over

?50,000, outside ISAs and of course everyone will benefit from the

generous ?4,760 increase in the annual ISA allowance to ?20,000 and

a further increase in the personal allowance to ?11,500 from April.

Mr Deputy Speaker, I now turn to duties and levies and unusually for

a Chancellor I'm delighted to announce a reduction in the expected

yield of a tax. The soft drinks levy. I can confirm today the final

rates of 18 and 24p per litre for the main and higher bands

respectively but producers are already reformulating sugar out of

their drinks which means a lower revenue forecast for this tax. This

is good news for our children. And in further good news for them today,

I can confirm that we will nobbled fund DFE with the full ?1 billion we

originally expected from the levy this Parliament to invest in school

ports and healthy living programmes. I am freezing, for another year the

VED rates for hauliers and the HGV road user levy. I'm introducing a

new minimum excise duty on cigarettes based on a pack price of

?7.35 and I can also confirm I will make no changes to previously

planned upratings of duties on alcohol and tobacco.

The tax measures I have announced enhance the sustainability of our

public services into the future and by improving the fairness of the

system, helps us to keep tax rates low.

Mr Deputy Speaker, economic policy does not exist in a vacuum and

economic growth is a means, not an end in itself. The objective of our

economic policy is to support ordinary working families and to

build an economy that works for them. And on this side of the House,

we know that we can only achieve rising living standards and deliver

vote. In vital public services, if if we have a strong economy and

sustainable public finances. It is a simple proposition, Mr Deputy

Speaker, yet one which the Opposition front bench seems to find

strangely difficult to understand. We start from a strong base. Real

wages have grown for 27 straight months. The wages of the lowest paid

grew faster last year than in any of the previous 20 years. And the

poorest households have seen their labour incomes rise more since 20

#10e in the UK, than in any other country in the G7.

-- since 2010. Last year we delivered a pay rise to over a

million of the lowest paid through the national living wage and next

month we take more steps to support worker families with the cost of

living. The national living wage will rise again to ?7.50 in April,

over ?500 more for full-time worker than this year and ?1,400 more than

when the national living wage was introduced. The personal allowance

will rise for the 7th year in a row to ?11,500 and the higher rate

threshold to ?45,000. 29 million people will be better off with a

typical basic rate taxpayer paying ?1,000 less than in 2010.

And we will meet our manifesto commitment to increasing the

thresholds to ?12,500 and ?50,000 thresholds to ?12,500 and ?50,000

respectively by the end of this Parliament.

Mr Deputy Speaker, I can also confirm today that the new NS I

bond which I announced at Autumn Statement will be available from

April and will pay 2.2% on deposits up to ?3,000, a welcome break for

hard-pressed savers and the Universal Credit taper rate will be

reduced in April from 56% to 63%, cutting tax for 3 million families

on low income. Next month, we will see the

introduction of our flagship tax-free childcare policy. That will

allow working families across the UK to receive up to ?2,000 a year,

towards the cost of childcare, for each child under 12. The scheme will

be rolled out to all eligible parents by the end of the year. And

from September, in addition, working parents with three and

four-year-olds will get their free childcare entitlement doubled to 30

hours a week. That, Mr Deputy Speaker, is worth around ?5,000 a

year to a young family with a three-year-old, and both parents

working. By the end of this Parliament, this Government will be

spending on childcare ?6 billion a year.

These childcare measures represent a further huge step forward in support

for ordinary working families and for women in the work place. And I

am delighted to use the occasion of International Women's Day to

announce three additional measures. Well not quite announce them, Mr

Deputy Speaker, because my right honourable friend the Prime Minister

has already announced two of them. It is National Women's Day. It says

here - "I will commit a further ?20 million of Government funding to

support the campaign against violence against women and girls."

Which does, as my right honourable friend said earlier, take the

Government's commitment to this campaign to over ?100 million in

this Parliament. That is on top of the tampon tax which today delivers

another ?12 million in support of women's charities across the United

Kingdom. The Prime Minister earlier also

mentioned that the Government will commit fought ?5 million to

promoting returnships to the public and private sector, helping people

back into employment after a career break.

Mr Deputy Speaker, as next year is the centenary of the 1918

Representation of the People Act, the decisive step in the political

emans pays of women in this country, I will commit a further ?5 million

to are projects to celebrate this centenary and to educate young

people about its significance. Mr Deputy Speaker, as well as knowing

the Government is on their side, people want to know that they are

getting a good deal from private markets too.

A well-functioning market economy is the best way to deliver prosperity

and security to working families and the litany of failed attempts of

state control of industry by labour, leaves no-one in any doubt about

that, except, apparently the right honourable gentleman opposite, who

is now so far down a black hole that even Stephen Hawking has disowned

him. This Government, Mr Deputy Speaker,

recognises that sometimes markets, particularly in fast-developing

areas of the economy, can fail people. Sometimes the market does

not deliver the outcome the textbooks suggests it should and

when that happens, this Government will not hesitate to intervene. We

will shortly bring forward a green paper on protecting the interests of

consumers. But, ahead of the green paper, we will take the first steps

to protect consumers from unexpected fees or unfair clause, to simplifies

T . Krs and to give consumer bodies great enforcement powers. --

simplify Ts Cs. Together this will boost incomes, help family budgets

stretch further, support parents back into Bosch and tackle some of

the frustrations that sometimes make it feel that the dice are load he

had against ordinary people going about their ordinary lives. This

House knows that the only sensible way to raising living standards is

to improve the productivity growth. Simply put - higher productivity

means higher pay. The stats are well-known with 35% behind Germany,

18% behind the G7 average average and the gap is not closing. Mr

Deputy Speaker, investment in training and investment in

infrastructure will start to close this gap. And this Government places

addressing the UK's productivity challenge at the very heart of its

economic plan. Because the cornerstone of an economy that works

for everyone must be rising living standards for ordinary working

people. . The key elements of our plan is the additional investment

from infrastructure that I announced at the Autumn Statement. Today to

enhance the UK's position as a world leader in science and innovation I'm

allocating ?300 million of that fund to support the brightest and best

research talent, including support for 1,000 new PhD places and

fellowships, focussed on stem subjects. ?270 million to keep the

UK at the forefront of disruptive technologies like biotech, robotic

systems and driverless vehicles, technology I believe that the party

opposite knows something about. ?16 million for a new 5G mobile

technology hub and ?200 million for local projects to leverage private

sector investment in full fibre broadband networks. On transport,

I'm today announcing ?90 million for the North and ?23 million for the

Midlands from a ?220 million fund that addresses pinchpoints on the

national road network and I'm launching a ?690 million competition

for local authorities across England to tackle urban congestion and get

local transport networks moving again. My right honourable friend

the Transport Secretary will announce details shortly.

And because we believe local areas understand local productivity

barriers better than central government, we make further progress

with our plans to bolster the regions.

In May, powerful mayors will be elected in six of our great cities.

Across Britain, local areas will take control of their own economic

destiny and we will support them to do so. I can inform the House that I

have reached a deal with the Mayor of London on further devolution. I

will follow the launch of the foreign powerhouse strategy at

Autumn Statement by publishing tomorrow our Midlands energy are

strategy, addressing productivity barriers across the Midlands.

-- Midlands engine strategy. And for the desolved administrations, our

announcements today deliver additional funding of ?350 million

for the Scottish Government, ?200 million... #

CHEERS Inaudible shouts

Let's just move on. We are doing very W let's not spoil a good day.

#k078 on, Chancellor of the Exchequer.

-- come on. Wait for it. ?200 million for the Welsh Government.

And almost ?120 million for an incoming Northern Ireland executive.

Demonstrating, Mr Deputy Speaker, once again, that we are stronger

together in this great United Kingdom.

Mr Deputy Speaker, Mr Deputy Speaker, perhaps the single most

important thing government can do to support ordinary working families is

to invest in the future so that their children and grandchildren can

make the most of the opportunities ahead. That means addressing the

skills gap and ensuring that every child, regardless of background, has

the opportunity to go to a good or outstanding school. At Autumn

Statement, I focused on investment in infrastructure and R The next

step today in our plan to raise productivity and living standards is

to focus on the quality of our children's education. Mr Deputy

Speaker, while investing in education and skills of course helps

to tackle the productivity gap, delivering greater prosperity, it

does something else as well. It delivers greater fairness. Because

investing in skills and education is the key to inclusive growth, to an

economy that works for everyone. Mr Deputy Speaker, if you talk to

people from any background, in any part of the country, about their

hopes and aspirations for the future, you will hear a recurring

concern for the next generation # row will they have the

qualifications to find a job, will it have the skills to retrain as

that job changes and changes again over a working lifetime? Will they

be able to get on the housing ladder, to save for a pension? In

short, the question that concerns so many people is, will our children

enjoy the same opportunities that we did. Mr Deputy Speaker, our job is

to make sure that they do, and that is why we are investing in education

and skills, to ensure that every young person, whatever their

background, wherever they live, has the opportunity to succeed and

prosper. The proportion of young people not in work or education is

now the lowest since records began. That is a good base from which to

build, but it is only by equipping them for the jobs of tomorrow that

we ensure that they will have real economic security. We have put

education reform at the heart of our agenda since 2010, and that

commitment, that commitment is already paying off. 89% of schools

in England are now rated good or outstanding, the highest proportion

ever recorded. What that means, Mr Deputy Speaker, is 1.8 million more

children being taught in good or outstanding schools than when the

party opposite left office in 2010. Our forthcoming schools white paper

will ask universities and private schools to sponsor new free schools.

It will remove the barriers that prevent more good faith based free

schools from opening and enable the creation of new selective free

schools so that the most academically gifted children, of

every background, get the specialist support they need to fulfil their

potential. Today, I can announce funding for a further 110 new free

schools, on top of the current commitment to 500. This will include

new specialist maths schools to build on the clear success of Exeter

mathematics school, and King's College London maths school, which

my right honourable friend the Prime Minister visited earlier this week.

We commit to this programme because we understand that choice is the key

to excellence in education. But, Mr Deputy Speaker, we recognise that,

for many parents, the cost of travel can be a barrier to exercising that