The Spending Review BBC News

Good morning, you are watching BBC News, the time is edging up to 1130

AM. All eyes on Westminster today. We are building up to the Autumn

Statement, the Spending Review. We will be hearing from the Chancellor,

George Osborne, who left the Treasury in the last 15 minutes to

make his way to Parliament. We will hear his plans and proposals. It is

a Spending Review that is being widely trailed as shaping British

politics for the next four or five years. To what extent will we hear

about spending? To what extent will we hear about cats Mac. Now a

special programme taking you through all the developments of the day.

With Andrew Neil -- to what extent will be about cats?

George Osborne wants Britain to live within its means.

His critics say he's cutting public services to the bone.

We'll find out what the Chancellor has in store for us all

in an hour when he tells us how he's going to spend OUR money over

Welcome to this BBC News special on the Chancellor's combined

Spending Review and Autumn Statement for 2015, which will help define tax

and spend in this country for the rest of the decade.

Mr Osborne faces some tough choices.

He wants to spend more on health, defence, security and now housing,

all the while balancing the books by 2020, which means big cuts to

That's not to mention the little matter of rowing back

I'm here at this brand new shopping centre in Birmingham, the city

at the heart of what the chancellor calls the Midlands Engine.

I'll be getting reaction from businesses, local government,

We'll also be in our virtual Treasury courtyard to look at where

the chancellor can find the ?20 billion of savings he says he

I'll be here outside Parliament getting reaction from

across the political spectrum to a speech that could define

Follow the story and find the best analysis on the BBC News website

throughout the day. Did I mention the best analysis?

Speaking of the best analysis, I'm joined

for the next four hours by the BBC's political editor Laura Kuenssberg,

our business editor Kamal Ahmed, and in his farewell lap before he

leaves the BBC, our outgoing economics editor Robert Peston.

We'll be frisking him before he leaves

the studio to check he's not running off with any of the stationery.

He is prone to do that, I've been told! Welcome to you all.

So it's a big day for the Chancellor - and for the country.

It's Mr Osborne's 3rd Spending Review since he entered

At its core, he will set out how much is to be spent on government

departments and public services over the next four financial years.

Cumulatively we're talking about well over three TRILLION pounds.

And if that's not enough excitement for one day, this year he's combined

his Spending Review with his annual Autumn Statement, which sets out

the latest official forecasts for inflation, employment, borrowing and

other key indicators for the course of our economy through 2016.

So a lot riding on today for the economy,

our public services, our national and economic security and, of

You have seen George Osborne leaving the Treasury just a few minutes ago,

he made the trip safely but the Prime Minister's car had a prank

today outside number ten Downing St. Yes, there it is! A bit of a bang.

We don't know if the Prime Minister was inside. I am sure that

government ministers will hope that is not an omen of things to come, we

could not resist letting you see it. Statements like this are always

political, Laura. The Chancellor is under special brush, he's promised

to get us into surplus by the end of the decade and stomach every time he

turns a corner someone says they want more. Today is where the

rhetoric of the Tory election campaign that got them back into

power smashes into reality. The big aspiration is also the difficulty.

How do you make a set of hard fought decisions, hefty cuts to many

departments, look as if they are a programme, a coherent programme

matches the priorities of those matches the priorities of those

millions of floating voters in the middle who the Tories didn't just

want to get in this year but want to secure with an even bigger majority

next time around. That is what it's all about. The difficulty is, along

with more money for health and housing which they believe is near

the top of the voters's lists, is the top of the voters's lists, is

less money for the Home Office and local council, cuts to social care

and to the police and the most acute demonstration of all, what will he

do about tax credits. Significant cuts to tax credits for people in

work. He's already had to signal a humiliating U-turn on this and the

detail with what he comes up with to soften that Blair will be crucial.

He is only halfway through his deficit reduction strategy which he

started in 2010. He should have finished it by now and he's only

halfway through. Yet on health and security, tax credits, all of

things, is being asked to and will have to spend more money. Indeed.

The benign into protection is that this government is brave enough to

decide priorities, more money for things that people care about and

less money for things that they decide are less important. The less

benign interpretation is a completely lopsided approach

gradually balancing the books that makes it almost impossible to get

anywhere significant. There are some in the Conservative Party who

believe that the ring fencing of health and other departments was a

fundamental strategic mistake. But instead of looking at the books than

starting from zero, they are looking at the books in a way that makes it

lopsided and therefore making the sums add up in a way that they have

promised to do, makes it almost impossible. Benchmark OK. We should

point out that nobody was injured in the making of that crash, if a crash

occurred. of savings

the Chancellor says is needed to eliminate the deficit, move

into modest surplus, by 2019-20. We'll look in a moment at where

he might find those savings. First, Robert, take us through

the Osborne plan. Such as it is. The background is,

his famous fiscal rules, which were in the last parliaments, honoured

more in the breach than in the hitting. So let's look at the

deficit that he forecast for this financial year just a few months ago

in the July budget. He said he expected a deficit of just below 70

million pounds. We know that he will miss that because the borrowing

figures are of course and tax revenue isn't coming in in the way

he would like -- ?70 billion. Spending is a little higher than he

would like. Over the course of the parliament in the last budget he saw

that deficit declining and achieving a surplus as I think you've read you

mentioned, of ?10 million, in 2019, two ?20 billion. -- ?20 billion. The

sort of things you have mentioned with Laura, the priority is to spend

things on housing. -- spend on things like housing. Let's put it

now into the context of the national debt. A whopping ?1.5 trillion in

rent on a bus. In percentage terms that began the last parliament at

just below 70% of GDP, or national income. It has risen progressively,

painfully, since then. And is currently a little over 80% of GDP.

In that last Budget the Chancellor made a big thing about how this

would be the peak year for debt as a percentage of GDP. He might not

achieve that. Let's see what the OBR says. We'll have to wait until April

to find at the truth of that. Borrowing isn't going quite as well

as he would want. That said, he will make a priority of trying to get the

debt down significantly over the parliament, the last set of

forecasts saw the debt falling as a share of GDP to around 72% of our

national income. The background to this, what matters to him and us is

what happens to the economy in the round. He started the last

Parliament with very weak growth. 0.7% at its weakest in the last

Parliament but then it grew progressively and accelerated

progressively up to 2.9% last. That was the fastest GDP growth of the

biggest developed economy. Almost back to where we were before. But

growth has weakened since. We expected to be around 2.4% this

year. And actually we do not expect it to accelerate much from that in

the coming years. It could even weaken a little. Why? Because of

what is happening on the other side of the world. You and I have talked

a lot about the slowdown in China. It is the big economic event now. We

can't rule out the Chinese crash. -- a Chinese crash. If that would

happen everything we would hear today would become irrelevant

because the shock to the global economy in those circumstances would

be significant. He is making great play of making friends with China.

He is assuming that the slowdown in China will be gradual and

manageable. We must wait and see. We must. Thank you, Robert. Today's

Spending Review will set limits for each Whitehall department for each

of the next four financial years, 22020. The Chancellor has been

locked in discussions with Cabinet colleagues for weeks to agree the

figures. The meetings have taken place at the Treasury just across

the road from the House of Commons. You can see it. The Chancellor

claimed Sunday that negotiations have been amicable. Not a word that

ministers whose departments phase massive cuts -- face massive cuts by

using. We'll find out who is bruised,

bloodied or unbowed today. At the heart of the Treasury is

a circular courtyard - you might recognise it because it's often used

as a location for filming, including the latest James Bond, which means

it's now famous across the globe. Now, we couldn't get Jo Coburn

inside the real courtyard, despite her being pretty famous - but here

she is to tell us more about Welcome to our virtual Treasury

courtyard. Now, they don't have one of these

in the real courtyard, but it represents everything that

the Government is due to spend this I'm going to start by highlighting

a few of the most significant parts You can see the ?217 billion

that goes on social security. That includes everything

from Jobseeker's Allowance to And there's the ?35 billion the UK

is due to spend this year George Osborne says that's a figure

he's is determined to bring down. Now, the focus of today's statement

is the money that goes on administering and delivering public

services - departmental spending. And you can see it's just under

half of the total the Government Now, we're going to delve into

the budgets of a few of the most Because it's the NHS that accounts

for the biggest chunk Now, the Chancellor isn't going to

find any of his savings here, because he has promised to increase

NHS funding in England The Government has also promised

a real-terms increase That's part of its commitment to

meeting the Nato target of spending The Government has also committed to

spending 0.7% of GDP on overseas aid, meaning that budget

is also protected. So, the Chancellor is not going to

find any of his ?20 billion of savings he says he needs to make

from either health, defence or aid. So,

where could it come from instead? What about from the education

budget, a big part of what the state Here,

the Conservatives have promised a cash increase per pupil

in schools. That means savings

from here would be limited, although the rest of the budget doesn't have

any guaranteed protection. Here is the money that goes

to English local authorities. This was one of the first

departments to agree to big savings The Home Office, on the other hand,

took longer And the single biggest thing

Theresa May's department spends money on is the grant it gives to

police forces in England and Wales, although they also get some of their

money from other sources, including And some of the other departments

that are going to have to find big savings over

the next four years are the Departments of Business,

Transport and Justice. Let's go back to that big part

of Government spending I mentioned Of course, that is where a lot

of the focus has been in the weeks Now, again, here, there is plenty

the Chancellor won't touch. The State Pension is

a massive part of the Budget. But the Government has a

long-standing promise not to cut it, along with various pensioner

benefits. The other areas of big spending

the Government has had to look to are housing benefit, disability

benefits and incapacity benefits. And you can see that big sum

of money, ?30 billion, that is due to be spent

on personal tax credits this year - an area where the Chancellor has

found that making savings can prove Let's speak to Kamal Ahmed. One

business that seems to be very happy because of what was leaked overnight

by the Treasury, this 400,000 affordable homes, this morning the

house-building shares went through the roof? They did indeed. What is

interesting is how much the Government needs the private sector

to support delivery. The big strategic purpose of George Osborne

is to take pressure off state provision and give it to the private

sector and say, you help us provide the kind of country and economy we

want. In house-building, one of the big issues, the centrepiece of David

Cameron's conference speech last month, he said he wanted to help

people into affordable homes, is an absolute example of that. The

government have struggled with this supply problem. The issue they have

had is that they have been in increasing demand. -- increasing

demand. The support that we are hearing will be in the Autumn

Statement which will help people buy affordable homes, again increases

demand. It will put direct money into housing companies, for them to

build affordable homes. The big problem though is that housing new

bills are actually down slightly. That is because there is a real

skills shortage in housing. They cannot find enough brickies. I went

to one developer and in south-west London and it closed down on

Thursday night because by then the bricklayers had got their money for

the week and take on Friday off. The house-building companies are

building as many houses as they feel comfortable with. Their profits are

up hugely, 40%. The other big area is, how will social care change?

Moving tax down to local authorities to supply support for social care,

how will that have an impact? It is the private sector who provide the

vast bulk of social care homes. They have been complaining about

particularly the rise to the national living wage affecting their

business. They have being squeezed by having to pay more, and getting

less money from the local authorities? Exactly. Companies like

four seasons, the biggest care home provider in the UK, has been saying

that it is now no longer profitable to provide social care in places for

a local authority people. That has become very difficult. Finally,

Sajid Javid, the Business Secretary, one of those unprotected

departments, further education, how much of an attack on his department

will there be? If you have just joined us on BBC Two and the BBC

News channel, you are watching our coverage of the Spending Review and

the Autumn Statement. Jane Hill is Oliver Dowden and Rebecca Long

Bailey join me. It is a spending review. Are we going to be looking

at headlines tomorrow all about cuts? Are those the sort of

headlines George Osborne is comfortable with? The headlines he

will become travel with and the mission of this government, we are

still in a situation where the Government is spending more than it

earns. Every pound of borrowing is paid for by future generations. We

are determined to get that under control. Run a surplus by the end of

the Parliament, which means by the next crisis hits, we are spending

less than we earn. That will be the central thrust, I hope, of the

statement. There are plenty of economists, they say the Chancellor

has locked himself into a corner, that giving a date is boxing himself

in. It is important we have a date. By 2019 the economy hopefully will

have been growing for almost ten years. The economy has been growing

for ten years and we still cannot run a surplus, how will we ever be

able to cope when the economy inevitably falls into another

recession? We do not believe boom and bust has been abolished on that

side of the house. Rebecca, there have to be cuts for the reasons

Oliver explains? I agree we need to reduce our deficit but it needs to

be done in the long term and in a sustainable way. The Chancellor has

not offered that. He has missed its financial targets again and again.

The Institute for Fiscal Studies have stated in order to meet his

target this time, he will have to make unprecedented cuts. They will

fall on areas of key economic growth, such as education, skills,

business investment. We need to start planning our infrastructure,

our manufacturing strategy. I doubt very much we will see any that

today. Business editor at the same share prices are up in

house-building companies. If we get lots of building, will that be the

one positive that even your party agree with? I think the Chancellor

is a shrewd political operator. He will offer some sweeteners to lessen

the blow. In terms of house-building, the devil is always

in the detail. I welcome his pledge to build 400,000 more houses. We

want to see where those houses are going to be and whether there will

be put in the social rented sector. A more political side to it, this is

about George Osborne's personal ambitions. He has do shape things so

that be the time he has his eyes on an even bigger job, the bulk of the

cuts have gone? The Chancellor's ambition is in turning this country

around. It is interesting what you said about investment. One of the

decisions he has taken is to protect things like investment in schools,

so that is maintained every year. A massive investment in housing to

make sure young people get on the housing ladder. What the Chancellor

wants to do is make sure that everybody gets the best start in

life, whether it is investment in schools, housing for young people,

or old people, to make sure they get dignity and security in retirement.

That is why there is a big increase in the basic state pension. That is

where his efforts are focused. Thank you very much. Much more from here

when we have heard from the Chancellor.

We'll hear a lot about his Northern Powerhouse and, now,

At the heart of that is the city of Birmingham.

Jo Coburn has left her virtual Treasury courtyard and is already

Who needs HS2 when you have the magic of television?

I am at Grand Central. Not New York but the shiny new shopping centre

here in Birmingham. It was opened last week by the Queen. I am here to

talk to people about the Autumn Statement and George Osborne's

spending plans for the next five years. I'm joined by Jonathan Isaby

from the Taxpayers' Alliance. Yesterday, the announcement of extra

cash for the NHS will be front-loaded. Welcome news? It is

welcome but it is too little, too late. The real issue for the NHS is

the chronic underfunding of social care, which means elderly patients

cannot be discharged quickly enough back into their homes, which means

they are taking up beds. We will end up with a crisis in the A this

winter. George Osborne has pledged to make cuts in this Spending Review

and during this Parliament. Does he want to be known as the Chancellor

of austerity? He should be want to be known as the Chancellor who

balances the books of the nation. He has to make those savings. This year

the Government is spending 70 billion, probably 18 billion, more

than it gets in revenue. -- 80. It is utterly unacceptable. He needs to

balance the books, get the nation living within its means once again

to ensure our future prosperity. Let's get a little bit more about

growing. Let's talk to somebody about this from the Birmingham

Chamber of Commerce. We are talking about austerity versus growth. What

is more important to business here? It has got to be a mix. We recognise

the UK deficit is out of control. The government is spending more than

the defence budget servicing the interest on that debt. It needs to

be brought into line but it cannot be at the expense of business

growth. That is what we will be looking for from the Autumn

Statement. Help grow businesses, which helps grow jobs. And

ultimately that will help get the deficit down. What would you like to

see him do? We would like clarity on the apprenticeship levy, how will

that work? Businesses are keen to boost the skills of young people but

we do not know how the funding is going to work. Some clarity would be

fantastic. We would like to see further announcement on business

rates. Earlier this year the Chancellor said they would devolve

business spending to councils. Thank you very much. One of the things

that will be most important to people here as they start to think

about Christmas shopping, that his personal finances. Their financial

security. Who better to talk to than our personal finance expert? One of

the main things people are worried about is tax credits. George Osborne

ran into problems with those plans. If he so often sad, where Willie

Geddes savings? This is the big questions. Is he going to go back to

those same people and try to get the money some other way. It might

affect the same people who would be affected by cuts to tax credits.

Will he scout around the periphery? Perhaps tax relief elsewhere. I

would be slightly worried about the pensions. He has said he will not do

any major pension reforms until the Budget. I think there could be some

measures that is stopping that. Buy now while stocks last. People are

doing last-minute avoidance things. I would watch out for tinkering with

the pensions tax reliefs. If you have any questions you would like to

put to any of our guests, our Anni stories, you can e-mail us. -- or

any stories. Start that Christmas shopping and

get my present. And you can also take advantage

the BBC's range of expert analysis and all the latest developments

on the BBC website. It's coming up midday here

at Westminster - very soon we'll go over to the House

of Commons for Prime Minister's Questions and that will be followed

by the Chancellor's statement. First, let's look at some

of the measures that have been already announced, and others we're

expecting to hear today. The biggest was the announcement

earlier this week. We were told the NHS in England, equivalent spending

for Scotland, Wales and Northern Ireland, will get an extra, just shy

of ?4 billion. Part of loading the NHS has been asking for, to get the

money and now as it rises towards an extra 8 billion by the end of this

Parliament. Schools and foreign aid are protected. No cuts expected.

Defence was not protected. It is now. An extra ?12 billion this week

to spend on defence and equipment. That takes the total to 178 billion.

2% of GDP. Tax credits. The Chancellor came out with a number of

cuts in the July budget. He is having to roll back that. That will

cost him money. We wait to see how he it. We expect tax Reddit cuts to

be eased. The latest big thing to be rolled out is the idea that the

Government will encourage, preside over, the building of 400,000

affordable homes at a cost of 7 billion. There is always an alert on

these. Whether governments meet these targets is a different matter.

Local authority spending has been squeezed. The Chancellor will now

allow local authorities to raise council tax by 2% provided the money

and only if the money goes to social care because of the move from NHS

hospitals and so on into care in the community. Whether that will be

enough is another matter. Whether those areas that need social care

most will get that much from a 2% rise in council tax because -- all

things we will be keeping an ion. -- and eye on. Laura, we have a fair

idea what he is going to do because they have helpfully leaked a lot of

it. Chancellor, rabbit, hat. What is the rabbit?

I am not sure there will be a rabbit today. There will be surprises. A

couple of surprises. But there will not be, I don't think, the

traditional rabbit in a hat that feels like a jolly giveaway that

sends off Tory MPs jubilant to their constituencies.

He has been famous for that. He has. There will be cunning wheezes. Maybe

a little mice instead of a big rabbit! Gerbils? We may be

surprised. He has an acute political as well as economic brain and I

think this time the judgments are similar for him, we are still

relatively early into the parliament and he personally has had something

of a popularity dip as a result of the tax credit to buckle. -- the tax

credit debacle. He will have to make tough decisions because the last

thing he wants is for things to go when he's running the Tory party

leadership. We can go straight to the House of Commons to the Prime

Minister, and Prime Minister's Questions.

Many people know from at home from Yes Prime Minister, the central role

that Bernard, the principal Private Secretary, plays in the life of the

per Minister. Today my Bernard my principal Private Secretary died of

cancer. Chris Martin was just 42. He was one of the most loyal,

hard-working dedicated public servants I have ever met. I have no

idea what his politics were would he would go to the ends of the earth

for his Prime Minister and for the team that he worked for. Today we

are leaving the seat in the officials box where he used to sit

empty as a mark of respect. We think of his wives are we, his family, the

wider number ten family because it is like a family and we feel we have

lost somebody between a father and a brother to all of us. Whatever

happens, we will never forget him. Today Mr Speaker I have had meetings

with colleagues and in addition to my duties in this House I will have

further meetings today. Fiona Bruce. Can I echo the sentiments of the

premise to regarding the passing of Kris ten. I am sure that all members

will have heartfelt thoughts and prayers today and we will be

grateful if they can be conveyed to the family. The excellent

children's mental health charity in Congleton says the lack of a secure

family life is the root cause of many of the troubles children have.

The Prime Minister is a champion of family life, can he confirm that

announcements to be made today will pass is family test by providing

security for family relationships and opportunities for world rubble

children? -- vulnerable children? I thank my honourable friend. She is

right that families are the best welfare state we have. They bring up

our children and teach us the right values and care for us when we sick.

We want to help families and the Chancellor will have something to

say about that later as we boost the national living wage, as we deliver

tax cuts for working people. All these policies should pass the test

of helping families. Jeremy Corbyn. Thank you Mr Speaker. On behalf of

of the opposition may I express my condolences to the family of Kris

ten on his death. The Prime Minister told me how ill he was on

Remembrance Sunday. I am pleased he was able to visit him at that time.

On behalf of many members who worked with Chris Martin when we were in

government we appreciate very much the professional work he did in the

best and highest traditions of the civil service in this country. If

our condolences could be passed on, that would be helpful. This week 55

Labour councils have made a commitment for their areas to be run

entirely on green energy by 2050. With the Paris climate talks only

days away with a premonition and join me in commending those councils

and call upon all Conservative councils to do the same? I certainly

commend these councils and we are helping by the tariffs that we have

introduced particularly to help solar power and wind power, we will

be taking part in the Paris climate talks because it is vital to get

that global deal but we must make sure that we take action locally as

well as globally. I would make the point that if you compare the

Parliament to the previous parliament, we saw something like a

tripling in the installation of renewable electricity. Jeremy

Corbyn. Thank you Mr Speaker. The commitment of those Labour councils

as a contrast to the per Minister Bosman performance. He used to say

that his was the greenest government ever. Does he remember those days?

Does he agree with the Energy Secretary that Britain is likely to

miss its target of getting 50% of renewable energy from renewables by

2020? Firstly I believe the last government rightly claims that

record, the world's first green investment bank pioneered in Britain

and a tripling of renewable energy and a meeting of all our planet

change targets contributing to an EU deal that means that we go to the

climate change conference in Paris with a very strong European record

and the ability to say to other countries that they should stab up

to the plate. Also in the last Parliament we spent record sums

helping developing countries to go green. And in the next five years we

will spend $9 billion on helping other countries which will be

crucial in building the Paris deal next week. Jeremy Corbyn. The

problem with that answer is that the gap between Britain's 2020 target

and our current share of renewable energy is the biggest in the

European Union. And some of his recent decisions like cutting

support for solar panels on home and industrial projects, scrubbing the

green deal, cutting support for wind turbines, budding any attacks on

renewable energy, increasing subsidies have diesel generators, is

it any wonder that the chief scientists of the United Nations's

environment programme has criticised Britain for going backwards on

energy? The facts paint a different picture. As I sit, a trembling of

wind power in the last Parliament, it is an enormous investment -- as I

said, tripling of wind power. As for solar panels, when the cost of solar

panels plummets, as it has, it's right to reduce the subsidy. If we

don't reduce it we ask people to pay higher energy bills. Something I

remember that the Labour Party in the last Parliament made rather a

lot of! If you look at the Secretary of State for climate change's speech

you will see the right balance between affordable energy and making

sure that we meet our green targets. That is what we are committed to.

And as well as that building the first nuclear power station for

decades in this country, something the Labour Party talked about a lot

in government but Bolelli putting -- something that we are putting into

action now we are in. In the past few weeks 1000 jobs have been lost

in solar companies in Britain as they have gone bust. I have a

question from some apprentice solar fitters at Bannister house, a large

energy budget. Ziggy, Israel and Jay-Z that cutting feeder tariffs

means you are stopping solar projects that they need to help the

environment to give us jobs. They ask a prime ministers, why do you

want to throw all this away? We are doubling investment in renewable

energy in this Parliament. As for solar panels, in the last

Parliament, over 1 million homes were fitted with solar panels, I

think I'm right in saying that. It is right that we go on supporting

that industry but we should do it, recognising that the cost of

manufacturing solar panels has plummeted and therefore the subsidy

should be necessary to Liddle what businesses agreed to deliver solar

power, not what is necessary to pump up the bills of hard-working

families! Not much help to those losing their jobs in the solar

industry at this time. I would like to ask the prime ministers something

else. Today is the International Day for the elimination of violence

against women. On average two women in week are killed by a current or

former partner and domestic violence accounts for up to one quarter of

all violent crime. Can the Prime Minister explain why one third of

those referred to women's refuges in England are now being turned away?

We put more money into refuges. The Chancellor will have something to

say about funding women's charities in his Autumn Statement today.

Because when it comes to rape crisis centres that were protected or

domestic violence centres that we helped to finance, this government

has a good record on helping women and making sure that the crime of

domestic violence is properly investigated by the police and

prosecuted in our courts. Jeremy Corbyn. Thank you, Mr Speaker. The

late Denise Marshall, was chief executive of one domestic Finance

Charity, put this well when she said, if you are a woman who has

experienced some form of violence, I believe you have the right to the

best service and the community owes you the opportunity to recover. In

2012, the Prime Minister's Govan signed the Istanbul convention in

preventing and combating violence against women and domestic violence.

This would make women's support services statutory and would have

stopped the closure of this service. When will the Prime Minister ratify

the Istanbul convention? We going one further. In the Autumn

Statement, which he will hear in a minute we will be putting more money

into women's charities, including those that fight domestic violence

and rape, and make sure that we cut and these appalling crimes. In

addition to that we have done more than any previous government to help

in terms of preventing forced marriage and the horrors of female

genital mutilation that to not just happen in North Africa, they happen

here in this country. I don't think any government before this one has a

strong record on those grounds. CHEERING

Thank you, Mr Speaker. I have many constituents who come to my surgery

desperate to be able to own and their own home. Many of them are on

low income and they recognise that a monthly mortgage payment would be

significantly lower than a monthly rental payment, sometimes 50% lower.

Does my right honourable friend share the excitement of many of my

constituents towards the starter homes initiative in the housing bill

which will see affordable housing lowering the monthly and goings of

many in this country. I do share the enthusiasm of my right honourable

friend. There are lots of useful interventions we can make like the

right to buy, which has put buying homes within reach of people by

reducing the deposits they need. We can help people save, which we do

with a help to buy Isa, so we are contributing every time people save

but the biggest contribution we can make is by building more houses

which were will do during this Parliament and crucially by

obtaining a strong, secure, stable economy with low interest rates so

that people can afford to take out a mortgage. Angus Robertson. May I

begin by associating the SNP with the condolences of the Prime

Minister. Having spoken to him last week I know what a personal loss it

is to him and to the family and friends of Chris Martin. The fatal

dangers of unintended consequences and escalation in Syria are clear

for all to see these days. All serious observers agree that an air

campaign alone will not lead to the ultimate defeat of Daesh on the

ground, and ground forces will be needed. How many troops and from

which countries does the Prime Minister have in his plan for Syria?

First mate I thank the right honourable gentleman for his remarks

about Chris Martin. I know that Chris Martin helped all parties in

this House with inquiries. Let me deal with the issue of Syria, it is

so crucial. I am not arguing for a minute that action from the alone

can solve the very serious problem we have and Isil. Clearly we need a

political settlement in Syria and the government there that can act

comprehensively with us against Isil. The question for the House

which we need to address tomorrow and in the days to come is, can we

afford to wait for that political settlement before we act? No, my

view is that we can't wait. We should work as hard as we can for it

but we should act now for allies because it is about keeping our own

people and our own country safe. You ask about ground troops. There are

troops in Syria, the Free Syrian Army and the Kurdish forces, that

would work with us to help eliminate Isil. Of course the full range of

ground troops will only be available when there is a political settlement

in Syria. But can we afford to wait for that settlement before acting to

keep ourselves safe at home and my answer to that is No, we cannot

afford to wait. Mr Speaker, the UK spent 13 times more bombing beer

than investing in its reconstruction after the overthrow of Colonel

Gaddafi's resume. Reconstructing cilia will be essential to ensure

stability and allow refugees to return. How much does the Prime

Minister estimate that this will cost and how much has he allocated

from the UK? We have one of the largest developing budgets anywhere

in the world, and the support we've given to Syrian refugees, ?1.2

billion, demonstrates this. Clearly part of our plan which I will set

out tomorrow in a statement in this House, will be to help to finance

the reconstruction of Syria alongside the political deal that we

believe is less of Syria. I would rather spend the money

reconstructing cilia than supporting people kept away from their homes

and their country, who want to return the -- reconstructing Syria.

I know that my right honourable friend is aware of the growing cause

for concern surrounding the conviction of Alexander Blackman,

the former Royal Marine officer who shot an insurgent in Afghanistan in

2011. If there is new evidence and if, as many feel, there has been a

miscarriage of justice, would my right honourable friend agree with

me that it is right this matter should be looked into again? What I

would say to my honourable friend is that this is exactly what the

criminal cases review commission exists to look at. There may have

been a miscarriage of justice. We gave the internal report of the

Naval services to Sergeant Blackman's legal advisers, so there

is proper disclosure. His legal team are looking at the option of

applying to the commission. Our Royal Marines have a worldwide

reputation as one of the world's elite fighting forces. They made an

incredible contribution to our country and we should pay tribute to

them. The Government's handling of child

sexual abuse enquiries has done little to instil public confidence

so far. Last month the god I'd inquiry and announced it had -- they

had accidentally deleted information without anybody from the inquiry

reading them. These people deserve justice and for their voices to be

heard. Can the Prime Minister tell the house if an independent

investigation has taken place to establish the cause of the data

lost? I'm sure the House will welcome the fact the inquiry is up

and running and the best way to get justice to these victims is to make

sure we have the full and independent inquiry we have spoken

about. As for the issue she raises, that is a matter for the inquiry.

What matters is that it is now up and running.

3000 jobs in Newark were lost under Labour. This month we celebrate the

creation of the 10,000th new job in Newark. Does the Prime Minister

agree that once again Newark leads the way to a strong economy, high

employment, higher wages and lower welfare? I am delighted to hear that

Newark has met this landmark and it is worth remembering that these

10,000 figures, they are 10,000 people, each with a job, a

livelihood, a chance to support their families. I well remember

visiting the constituency. I cannot promise to visit as many times in

this Parliament as I did in Neil asked, but I do recognise that one

business we visited last week announced the creation of more than

8000 jobs. Where Newark leads I'm sure others will follow.

As the Prime Minister ever heard of Alan Cartwright, Stefan Appleton or

Farso Kakko? These are teenagers who were stabbed to death on the streets

of Islington in the last year. Given the growing culture of drugs, gangs,

of violence in my burrow and many others like it, does the Prime

Minister really think that it is in the interest of my constituents for

their safety and security to cut the Metropolitan Police? First of all,

every life lost in the way she talks about is of course a tragedy. Many

of these lives have been lost because of drugs, gangs and knife

crime. Overall knife crime has come down which is welcome. There are

still too many people carrying a knife and not recognising that not

only is it against the law, but is is in a enormous danger to

themselves and others. We will continue with our tough approach to

knife crime with our work to break up gangs and to do with the problems

of drugs. When it comes to policing, what we have seen in London is an

increase in neighbourhood policing. The Metropolitan Police have done a

good job in cutting back office costs and putting police on our

streets. After many years of neglect under

Labour, Cornwall is once again seeing investment in roads,

railways, airports and tourism. But Cornwall is ambitious to diversify

its economy and become a centre to the UK aerospace industry. Newquay

airport is the forerunner to the location of the UK spaceport. Could

the Prime Minister provide an update on the spaceport? And does he agree

that Newquay would be the perfect place for it? I think it is very

good that we have such strong voices for Cornwall in this Parliament

speaking up for that county and making sure it gets the assistance

and resources and help it needs. I am a strong supporter of Newquay

airport, not just as a user, but it provides the opportunity for a hub

of great businesses in Cornwall. We want to become the European hub for

space flight, which will create jobs. There are a number of other

airports in the running. I wish them all well. We are aiming to launch

the selection process next year. The Government agrees much of what

constitutes progress on gender equality. I have heard nothing

since. I wonder if the Prime Minister agrees with me that with

the fast approaching birth of my daughter, I would like to be valued

as equally in her life as my husband. Will the Prime Minister

take the important symbolic step to ensure that mothers are not written

out of history? This is an area where the honourable

lady and I agree. My understanding is that proposals for legislation

have gone to the relevant committee in government. She has made a very

articulated case for why that bill should be included in the next

session. -- article at. Will the Prime Minister join with me

in commending the French government for facing down terror, continuing

with the climate summit in Paris next week? William port and the --

acknowledge the important role of legislators? And does he agree that

his personal presence in Paris sends a message to the world about our

continuing -- commitment to a lasting climate deal to I am

grateful for what my honourable friend says. I will be going to

Paris for the start of this vital conference to set out what Britain

and the European Union will be doing to bring about this deal. What we

put on the table in terms of climate finance, nearly $9 billion over the

next five years, is one of the most generous offers made by any country.

We are going to see China and America as signatories to a deal.

Much more of the emissions in the world will be covered by this deal.

We have to make sure it is a good deal with the review clauses and a

way of tightening any deal to make sure we keep to 2 degrees. Britain

is playing a leading role and has lead by example and with money.

There will never be a future where we do not need steel. The government

is spending minions of pounds to compensate for the loss of UK

steel-making. Can I ask the Prime Minister if he will send a clear

signal to date to those potential investors in the steel industry that

he will do whatever it takes to back a sustainable cutting-edge UK steel

industry in the future? We want to seal -- to see more still being used

in the UK and across the world. I completely agree full we want to

support our steel business. We are taking action on procurement. Then

you look at what we have done on our Royal Navy and what we can do on

Railtrack and other organisations, we should back British steel. We're

going to be exempting heavy energy users like British steel from the

higher electricity charges. This does go, I have to say, rather to

the questions asked by the Leader of the Opposition. If we endlessly

pushed up bills for everybody else, it costs even more to exempt the

high energy users. That is why you need a balanced programme.

Everything we can do to help British steel, including an infrastructure

plan you will be hearing a bit more about in a minute, is all to the

good. In 2010, unemployment in my

constituency stood at 2% of the population. It now stands at 1.6%.

I'm sure my honourable friend agrees that in order to help those people

still employed and to boost productivity and wages, we need to

offer more opportunities for skills training. Does my right honourable

friend agree with that and what more can the Government offer? Our vision

is that all young people aged 18 should have a real choice of being

able to take on an apprenticeship, and we are planning for 3 million in

this Parliament, or be able to go to one of our universities. We do not

want anybody left behind. He's right that unemployment has fallen in his

constituency as around the country. We will hear from the Chancellor

about what has happened in the last five years. Britain has grown as

fast as any other G-7 country in terms of economic performance. You

can look back and see the decisions made in 2010, 2011, 2012, difficult

decisions, but they laid the platform for sustained economic

growth and jobs. Education in Bradford is facing a

funding and schools places crisis and we remain at the bottom of the

league tables. Bradford's children cannot be failed any longer. Will

the Prime Minister support my call for a Bradford challenged based on

the highly successful London challenge? And will he stopped the

dangerous changes to the school funding formula that will drag the

children of Bradford further into the land of inequality, despair and

neglect? We made commitments at the last

election about funding our schools and funding school places. We will

be keeping all of those commitments. Not just the revenue we provide to

schools, where we will not be reducing the amount per pupil, but

also spending much more on new school places in this Parliament

than in the Parliament that preceded my becoming Prime Minister. We are

also helping with building new academy chains and free schools.

They are available for his constituency as others.

Does my right honourable friend agree with me that the turmoil in

northern Iraq and Syria gives opportunities to resolve

long-standing international disputes, not least with Russia? And

does he agree with me that the attack on the Russian bomber,

something that never happened in the duration of the Cold War, was

disproportionate? And we make sure we do not get into a conflict with

Russia over Syria? What I would say to my honourable

friend is I think there are opportunities for sensible

discussions with Russia about the agenda in Syria, which is about

political transition, so there can be a government that represents all

of the people of Syria. I had that conversation with President Putin

last week. He mentions the issue about the downed Russian jet. The

facts are not yet clear. We should respect Turkey's right to protect

their race-based as we defend our own. -- Aerospace.

The Prime Minister very often tells us that the first duty of any

government is to protect the public. Will he give an undertaking to

ensure that the public in this country are protected by the police

and emergency services? I think this government has a good record of

protecting the public. We protected counter-terrorism police thing and

we had a funding situation with the police which enabled a cut in crime

at 31% since I became Prime Minister.

John Morton, a drink-driver, destroyed the lives of Amy Baxter

and Hayley Jones. Miss Baxter is paralysed from the neck down and in

hospital 16 months later. He was sentenced to just a 3 year driving

banned, a fine and a 20 week tag. Weeks later he says -- successfully

applied to the Magistrates' Court for his tag to be removed so he

could go on holiday to a stag party. Would my right honourable friend

look to issue two -- guidance to magistrates that a tag should never

be removed to allow criminals to go on holiday? I think my honourable

friend makes a powerful point and I will look at this carefully. Let me

express my sympathy to the victim and her family for what is

undoubtedly be -- undoubtably a distressing case. I did not hear all

of the points made in the court. But the point he made does seem to be

powerful. A punishment is a punishment, a tag is a tag.

Today's Middle East is increasingly resembling the central Europe of a

century ago. Minorities, be they linguistic, religious or sexual,

find themselves under more pressure than ever. Ie, my constituents and

the SNP, understand the threat posed to this group by Daesh. How is the

Prime Minister planning to prosecute a bombing campaign that does not

alter the Democratic map of the Middle East, preventing Aleppo from

becoming the new Budapest? We will set out the arguments

clearly tomorrow but there's a clear and present danger to the UK of

Isil, based in Iraq and Syria, planning attacks against this

country today. We don't live in a perfect world and we can't deliver a

perfect strategy but we can deliver a clear long-term study that will

work. He talks of the lessons we learned from the last century. One

of the lesson I would say we should learn from them is, when your

country is under threat, and UK's aggression, you cannot endlessly

dream about a perfect world -- and you are facing aggression, you need

to act in the world that we are in. Thank you Mr Speaker. Will my right

honourable friend join me in congratulating all the staff of the

birthing unit, the midwives, matron Emma Chambers local activist was

scoring 100% on their friends and family survey on satisfaction and

care. The commitment of the midwives is only matched by the Conservative

commitment to the NHS. For two elections in a row we have promised

and delivered greater investment in our NHS than Labour. Can I say to my

right honourable friend she is quite right to highlight the friends and

family test. It's a simple way of measuring whether our hospitals are

giving great care. I think it has been a real advance in the NHS to

have that. As well as good schemes to make sure you'd want your friends

and family treated in hospital we need to the resources about hospital

and that is what we are doing with the spending figures announced

today. Crucially on childbirth, it isn't often that I quote the daily

Mirror but it is worth looking at what they are raising about the

importance of a seven-day NHS and making sure we have high standards

across our NHS every day of the week as well as the extra money we are

putting into the NHS the seven-day week NHS will mean a much stronger

one. Thank you Mr Speaker. The big lottery fund supports important

local projects in my constituency, including the Cake, a children's

playground and some women's aid projects which play an essential

role supporting the vulnerable people that this government has left

behind. Will the Prime Minister join with me in congratulating these

local projects on their work and reassure the House that this

governor to protect the current level of national lottery funding

earmarked for charities and community projects? I can certainly

say we will protect the big lottery fund because it does an excellent

job. I cannot resist making the point that one thing that the UK

brings is a bigger national lottery. A bigger part that can support

Scottish charities. Let me make this point. Following what has happened

to the oil price, if there was a Scottish November Autumn Statement,

it would be a statement that would be about cuts, cuts, taxes, taxes,

and no relief from the National Lottery! Order! Order! Mr Brendan

McNeill. Mr Angus Brendan McNeill, calm yourself. You may be a cheeky

chappie but you are an exceptionally noisy one! Statement by the

Chancellor of the Exchequer! Mr Speaker, this Spending Review

delivers on the commitment we made to the British people that we would

put security first. To protect our economic security by taking the

difficult decisions to live within our means and bring down our debt.

And to protect our national security by defending our country's interests

abroad and keeping our citizens safe at home. Economic and national

security provide the foundations for everything we want to support.

Opportunity for all. The aspirations of families. The strong country we

want to build. Five years ago, when I presented our first Spending

Review our economy was in crisis, and as the letter said, there was no

money left! We were borrowing ?1 in every ?4 that we spent and our job

was to rescue Britain. Today as we present this Spending Review our job

is to rebuild button. Built our finances, defences, our society so

that Britain becomes the most prosperous and secure of all the

major nations of the world. So we'd leave to the next generation a

stronger country than the one that we inherited. And that is what this

government was elected to do and today we set out a plan to deliver

on that commitment. Mr Speaker, we have committed to running a surplus.

Today I can confirm that the four-year public spending plans that

I set out are forecast to deliver that surplus, so that we don't

borrow for ever and are ready for whatever storms like ahead. We

promised to bring our debts down. promised to bring our debts down.

Today the forecast that I present shows that after the longest period

of rising debt in our modern history, this year, our debt will

fall and will keep falling in every year that follows. We promised to

move Britain from being a high welfare, low-wage economy to a lower

welfare, higher wage economy. Today I can tell the House that the ?12

billion of welfare savings we committed to add to the election

will be delivered in full, and in a way that helps families as we make

the transition to our national living wage. We promised that we

would strengthen our national defences, take the fight to the

enemies of this nation and project the influence of our country abroad.

Today this Spending Review delivers the resources to make sure that

Britain, unique in the world, will meet its twin obligations to spend

0.7% of its income on development and 2% on defence of the realm. In

this Spending Review, we not only ensure the economic and national

security of our country, we build on it. It sets out far-reaching changes

to what the state does and how it does it. It reforms our public

services so we truly extend opportunity to all. Whether the way

we educate our children, train our workforce, rehabilitate prisoners,

provide homes for our families, deliver care for the elderly and

sick, all the way that we hand back power to local communities, this is

a big Spending Review by a government that does big things. It

is a long-term economic plan for our country's feature. Mr Speaker,

nothing is possible without the foundations of a strong economy. Let

me turn to the new forecast divided by the independent Office for Budget

Responsibility and let me thank Robert and his team for their work.

Since this budget new economic data has been published which confirms

this, since 2010, no economy in the G7 has grown faster than button. We

have grown must treat and is faster than Japan, twice as fast as France,

faster than Germany and at the same rate as the United States. That

growth has not been fuelled by an irresponsible banking boom like in

the last decade. Business investment has grown more than twice as fast as

consumption, exports have grown faster than imports and the North

has grown faster than the south. But we are determined that this will be

an economic recovery for all, felt in all parts of our nation. That is

already happening. In which area of the country are we seeing the

strongest jobs growth? Not just in our capital city. The Midlands is

creating jobs through times faster than London and the south-east. In

the past year we've seen more people in work in the Northern Power has

than ever before. And where do we have the highest employment rate of

any part of this country? In the south-west of England. Our long-term

economic plan is working. The OBR, Mr Speaker, reminds us today of the

huge challenges that we still face at home and abroad. Our debts are

too high and our to visit remains. Productivity is growing yet we still

like behind most of our competitors. I can say that in the forecast today

expectations for world growth and world trade have been revised down

again. The weakness of the Eurozone remains a persistent problem. There

are rising concerns about debt in emerging economies, these are yet

more reasons why we are determined to take the necessary steps to

protect our economic security. And that brings me to the forecast for

our own GDP. Even with the weaker double picture, our economy this

year is predicted to grow by 2.4%, growth is then revised up from the

budget forecast in the next two years, to 2.4% in 2016 and two

years, to 2.4% in 2016 and 2.5% in starts to return to its long-term

trend of growth of 2.4% in 2018 and 2.3% in 2019 and 2020. That growth

is more balanced than in the past, economy investment is set to grow

faster in Britain than in any other major advanced economy in the world.

This year, the next year, and the after that. Mr Speaker, when I

presented my first Spending Review in 2010 and said this country on the

path of living within its means, our opponents claimed that growth would

be joked off, when a million jobs lost, and inequality would rise.

Every one of those predictions has proved to be completely wrong. And

so too did the claim that Britain needed to choose between sound

public finances and great public services. It's a false choice. If

you are bowled with your reforms you can have both. Is why, why we have

reduced government spending, crime has fallen, 1 million more children

are being educated in good outstanding schools and public

satisfaction with our local government services has risen. The

exact opposite of what our critics predicted. And yet now the same

people are making similar claims about this Spending Review as we

seek to move Britain out of deficit and into surplus. And they are

completely wrong again. The OBR has seen our public expenditure plans,

analysed the effect on our economy. Their forecast today is that the

economy will grow robustly every year, living standards will rise

every gear and that more than 1 million extra jobs will be created

over the next five years. That is because sound public finances are

not the enemy of sustained growth, they are its precondition. Our

economic plan puts the security of working people first so that we are

prepared for the inevitable storms that light ahead. That is why our

Charter for added responsibility commits us to reducing the debt to

GDP ratio for each year of this Parliament reaching a surplus in

2019-20 and keeping that surplus in normal times. I can confirm that the

OBR has today acidified that the economic plan that would present

delivers on our commitment. But it has certified this. That brings me

to the forecast for debt and deficit. As usual the OBR has had

access to published and unpublished data and made its own assessment of

our public finances. Since these budget Housing Associations in have

been reclassified by our independent office for National statistics, and

their borrowing in to Liddle and depth of been brought on to the

public balance sheet and that that will be backdated to 2008. It is

listed as to change, so the OBR has recalled belated its previous budget

forecast to include Housing Associations, so that we can compare

like with like. On that new measure debt was forecast in July to be

83.6% of national income this year. Today in this Autumn Statement have

forecast this year to be lower, 82.5%. It then falls, every year,

down to 81.7%... Order! Mr Lewis! Get a grip of yourself, man! Take up

yoga, you will find it beneficial! The record shows that the Chancellor

stays for a considerable period after his statement to respond to

questions. Members will always find the chair a friend if they wish to

question a minister. Yes, they will! LAUGHTER

Those with questions to ask will be heard. Meanwhile, the Chancellor

will be heard! Lunch Mac CHEERING

Mr Speaker, I am looking forward to it! On that new measure debt was

forecast in July to be 83.6% of national income this. Today in this

Autumn Statement they have forecast it this year to be 82.5%. It then

falls every year down to 81.7% next, done to 79.9% in 27-18 and

down to 77.3% and 74 by 3% reaching 71.3% in 2020-21. In every single

year, the national debt as a share of national income is lower than

when I presented the budget four months ago. And this improvement in

the nation's finances is due to two things. First, the OBR expects tax

receipts to be stronger. A sign our economy is healthier than thought.

Second, debt interest payments are expected to be lower, reflecting the

further fall in the rates we pay to our creditors. Combine the effects

of better tax receipts and lower debt interest and overall the OBR

has copulated this means a ?27 billion improvement in our public

finances -- calculated, compared to where we were at the Budget. Mr

Speaker, this improvement in the nation's finances allows me to do

the following. First we will borrow ?8 billion less than we forecast,

making faster progress towards eliminating and lowering the doubt,

fixing the roof when the sun is shining.

Second, we will spend 12 billion more on capital investments, making

faster progress to building the infrastructure our country needs.

And third, the improved public finances allow us to reach the same

goal of the surplus while cutting macro less in the early years, we

can smooth the path to the same destination. We can help on tax

credits. I have then asked to help in the transition as Britain moves

to the higher wage, lower welfare, lower tax society. These changes to

tax credits should be phased in. I have listened to the concerns. I

hear and understand them. Because I have been able to announce a -- an

improvement in the public finances, the simplest thing to do is not to

faze these changes in body to avoid them altogether. Tax credits are

being phased out any way as we introduce Universal Credit. What

that means is that the tax credit tabor rate and threshold remain

unchanged. The disregard will be ?2500. I propose no further changes

to the Universal Credit tabor or the work allowances to those passed

through Parliament last week. I set a lower welfare cap at the budget.

Helping with the transition obviously means that we will not be

within that lower welfare cap in the first years but the House should

also note that thanks to our welfare reforms, we meet the cap in the

later part of this Parliament. Indeed on the figures published

today, we still achieve the ?12 billion per year welfare savings we

promised. That is because of the permanent savings we have already

made and further long-term reforms we announce today. The rate of

housing benefit in the social sector will be capped. The same rate paid

to those in the private rented sector who received the same

benefit. This will apply to new tenancies only. We will also stop

paying housing benefit and pension credit payments to people who have

left the country for more than a month. The welfare system should be

fair to those who need it and fair to those who pay for it, too.

Improved public finances mean that we continue to be on target for a

surplus. The House will want to know the level of that surplus. Let me

give the OBR forecast for deficit and borrowing. In 2010 the deficit

we inherited was estimated at 11.1% of national income. This year it is

said to be almost one third of that, 3.9%. Next year it falls to less

than a quarter, 2.5%. Then the deficit is down to 1.2% in 2017-18,

0.2% a year after that, before moving into a surplus in 2019-20,

rising to 0.6% of the following year. The cash borrowing figures.

The OBR predicted at the time of the budget that Britain would borrow

?74.1 billion this year. They now forecast we will borrow less than

that at 73.5 billion. Borrowing falls 49.9 billion next year. It

continues to fall and fall and falls to fall and fall still lower in

every single year after that, to 28 -- 20 4.8 8,000,000,020 17-18, four

.6 billion the following year, and in 2020 we reach a surplus of ?10.1

billion. That is higher than was forecast in the budget. Britain out

of the red and into the black. In 2020-21 the surplus rises to 14.7

billion. The deficit falls every year. We are borrowing ?8 billion

less than we expected overall. And we reach a bigger surplus. We have

achieved this while at the same time helping working families as we move

to lower welfare, higher wage economy, and we have the economic

security of knowing our country is paying its way in the world. That

brings me to our plans for public expenditure and taxation. I want to

thank my right honourable friend, the chief secretary, other

ministerial colleagues and the brilliant officials who have

assisted us for the long hours and hard work they have put into

developing these plans. We said ?5 billion would come from the levels

on tax avoidance, evasion and imbalances. Those measures were

announced in the Budget. Together we go further today with new penalties

for the General Anti-Abuse Rule which this comment introduced,

action undisguised renumeration schemes and stamp duty avoidance,

and we will stop abuse of the intangible fixed assets scheme. We

will all show ensure... HMRC is making efficiencies of 18% in its

own Budget. In the digital age we do not need taxpayers to pay for paper

processing or 170 separate tax offices around the country. We are

reinvesting some of those savings with an extra ?800 billion in the

fight against tax evasion and investment return of almost ten

times the tax collected. We're going to build one of the most digitally

advanced tax administrations in the world, so that every individual and

every small business will have their own digital tax account by the end

of the decade in order to manage their tax online. From 2019, when

these accounts are up and running, we will require Capital Gains Tax to

be paid within 30 days of completion of any disposal of residential

property. These form part of the digital revolution we are bringing

to Whitehall with this Spending Review. The digital service will

receive an additional ?450 million. The court Cabinet budget will be

cut. The cost of all Whitehall administration will be cut by ?1.9

billion. These form part of the ?12 billion of savings in government

departments iron and -- I am announcing today. In 2010,

government spending took up 45%. This figure we could not sustain

because it was neither practical nor sensible to raise taxes high enough

to pay for that. We ended up with a massive structural deficit. Today

the state accounts for just under 40% of national income and is

forecast to reach 36.5% by the end of the Spending Review. The

structural spending this represents is at a level of a modern economy

can sustain. It is a level B British people are prepared to pay their

taxes for. It is precisely because this government believes in decent

public services and a properly funded welfare state that we are

insistent they are sustainable and affordable. To simply argue all the

time the public spending must always increase, never be cut, is

irresponsible and lets down the people who rely on public services

most. Equally to fund the things we want the Government to provide in

the modern world, we have to be prepared to provide the resources. I

am setting the limits for total managed expenditure as follows. This

year public spending will be ?756 billion. 773 billion next year, 787

the year after, 801 billion before reaching 821,000,000,020 19-20. The

year we are forecast to eliminate the deficit and cheaper surplus.

After that, the forecast public spending rises roughly in line with

the growth of the economy. The figures from the OBR show that over

the next five years welfare spending falls as a percentage of national

income, while departmental capital investment is maintained and is

higher at the end of the period. That is precisely the right switch

for a country serious about investing in its long-term economic

success. People will want to know what the levels of public spending

mean in practice and the scale of the cuts we are asking government

departments to undertake. The day-to-day spending of government

departments is set to fall by an average of 0.8% per year in real

terms. That compares to an average fall of 2% in the past five years.

The savings we need are considerably smaller. This reflects the

improvement in the public finances and the progress we have already

made. The overall rate of annual cuts I set out in today's Spending

Review are less than half of those delivered over the last five years.

Britain is spending a lower proportion of its money on welfare

and a higher proportion on infrastructure. They Budget balanced

with cuts half what they were in the last parliament, making the savings

we need, no more, no less, and providing people with a country with

a surplus that lives within its means. This not -- this does not

mean that decisions are easy. Nor should we lose sight of the fact

this Spending Review commits ?4 trillion over the next five years.

It is a huge commitment of the hard earned cash of British taxpayers.

And all of those who dedicate their lives to public service will want to

make sure it is well spent. Our approach is not simply

retrenchment. It is to reform and rebuild. These reforms will support

our objectives. First, to develop a modern integrated health and social

care system that supports people at every stage of their lives. Second,

to spread economic power and wealth through devolution revolution and

invest in long-term infrastructure. Third, to extend opportunity by

attacking the big social failures that for too long have helped people

back. Fourth, to reinforce our national security with the

re-sources to protect us at home and protect our values abroad. The

resorts is allocated are driven by these four Gaults. The first

priority is the first priority of the British people, our National

Health Service. Health spending was cut by the Labour administration in

Wales. We Conservatives have been increasing spending on the NHS in

England. And in this Spending Review we do so again. We will work with

our health professionals to deliver the best value for that money. That

means ?22 billion of efficiency savings across the service. It means

a 25% cut in the Whitehall budget of the Department of Health. It means

modernising the way we fund students of health care. There is a cap on

student nurses. Over half of all applicants are turned away and it

leaves hospital is relying on agencies and overseas staff. We will

replace direct funding with loans for new students so we can abolish

the self-defeating cap and create up to 10,000 more training places in

this Parliament. Alongside these reforms we will give the NHS the

money it needs. We made a commitment to a ?10 billion increase in the NHS

budget and we deliver that today with the first ?6 billion delivered

upfront next year. This fully funds the five-year view the NHS put

forward as the plan for its future. As the Chief Executive of NHS -- NHS

England said, the NHS has been heard and actively supported. Let me

explain what that means in cash. The NHS budget will rise from ?101

billion today to ?120 billion by 2020. This is a half of equipment to

the NHS over this Parliament. -- commitment. The largest to the NHS

since its creation. We have a clear plan for improving the NHS. We fully

funded it. And in return patients will see more than ?5 billion in

health research in everything from Gene Ormsby antimicrobial

resistance, to a new dimension Institute and a new world-class

public health facility in Harlow, and more. 800,000 more elected

hospital admissions. 5 million more outpatient appointments. 2 million

more diagnostic tests. New hospitals in Cambridge, Sandwell and

Brighton. Cancer testing within four weeks and a brilliant NHS are

available seven days a week. Mr Speaker, there is one part of our

NHS that has been neglected for too long, mental health. I want to thank

the all-party group led by my right honourable friend for Sutton

Coldfield, the Right Honourable member for North Norfolk and

Alastair Campbell for their work in this area. In the last Parliament we

made a start by laying the foundations for the quality of

treatment for waiting times for mental health. Today we are building

on that. We are providing additional funding. By 2020 is significantly

more people will have access to talking therapies, perinatal

services and crisis care. All possible because we made a promise

to the British people to give our NHS the funding it needs and in this

Spending Review we have delivered. The health service cannot function

effectively without good social care. The truth we need to confront

is this. Many local authorities are not going to be able to meet the

growing social care needs unless they have new sources of funding.

That in the end comes from the taxpayer. In future those local

authorities responsible for social care will be able to levy a new

social care precept of up to 2% on council tax. The money raised will

have to be spent exclusively on adult social care and if all

authorities make full use of it, it will bring almost ?2 billion more

into the care system. It is part of a major reform we are undertaking to

integrate health and social care by the end of this decade. To help

achieve that I am today increasing the better care fund to support that

integration, with local authorities able to access a next ?1.5 million

by 2019-20. The steps taken in this Spending Review mean that by the end

of the parliament social care spending will have risen in real

terms by the end of the Parliament. To help businesses with the

administration of this important boost will -- we will align the next

two phases with the tax years. The best way to afford generous pension

benefits is to raise the pension age in line with life expectancy as

we're set to do in this Parliament. That allows us to maintain a triple

lock on the value of the state pension, so never again do

Britain's pensioners receive a derisory increase of 75p. As a

result of our commitment to those who have worked hard all their lives

and contributed to this society I confirmed that next year the basic

state pension will rise by ?3 35 to ?119 30 a week is the biggest

real-time is increased the basic state pension 15 years. Taking all

of our increases together over the last five years, pensioners will be

?1125 better off a year than they were when we came into office. We

also undertaking the biggest change in the state pension for 40 years to

make it simple and fair by introducing the new single tier

pension for pensioners from next April. I'm today setting the full

rate the state pension at ?155, 65p. Higher than the current means tested

benefit for the lowest income pensioners in this society and

another example of progressive government in action. Instead of

cutting these savings credit as in previous fiscal events and will be

frozen at its current level where income is not changed. So the first

objective of this Spending Review is to give unprecedented support to

health, social care and pensioners. The second is to spread economic

power and wealth across this nation. In recent weeks great metropolitan

areas like Sheffield, Liverpool, the north-east and the West Midlands

have joined Greater Manchester in agreeing to create elected Mayers in

return for far-reaching new powers over transport skills and the local

economy. It is the most determined effort to change the geographical

imbalance that has bedevilled the British economy far half-century. We

are today setting aside the ?12 billion we promised for the local

growth fund and I'm announcing the creation of 26 new extended and

enterprise zones including 15 zones in towns and rural areas from

Carlisle to Dorset to Ipswich. But if we want to shift power in this

country we must give all local councils the tools to drive business

growth in their area, and the rewards that come when you do so. So

I can confirm today that, as we set out last month, we will abolish the

uniform is Ms rate, by the end of the Parliament local government will

keep all the revenues from business rates, we will give councils the

power to cut rates and make the area more active to businesses and

elected mayors will be able to raise rates provided they fund specific

infrastructure projects supported by the local business community.

Because the amount we raise in business rates is greater than the

amount we give to local councils through the government grant will

phase out that ground over this Parliament. And we'll also devolve

additional responsibilities. The temporary accommodation management

fee will no longer be paid through the benefit system. Instead councils

will get ?10 million a year more up front to provide more help to

homeless people. Alongside savings in the public health grant we will

consult on transferring new powers and responsibility for its funding

and elements of the administration of housing benefit. Local government

is sitting on property worth one quarter of ?1 trillion so we will

let councils spend 100% of the receipts from the assets they sell

to improve their local services. Councils increase their reserves by

almost ?10 billion over the last Parliament. We would encourage them

to draw on these reserves as they undertake reforms. Mr Speaker, this

amounts to a big package of new powers but also new responsibilities

for local councils. It is a revolution in the way that we govern

this country and if you take into account both the falling grant and

the rise in comes it means that by the end of this Parliament local

government will spend the same in cash terms as does today. Mr

Speaker, the devolved administrations of the UK will also

have available to them unprecedented new powers to drive their economies.

The conclusion last week of the political talks in Northern Ireland

mean additional spending power for the executive to support the full

temperament issue of the Stormont has agreement. That opens the door

to the devolution of corporation tax which the parties have now confirmed

they wish to set at the rate of 12.5%. If huge prize for business in

Northern Ireland. The onus is now on the Northern Ireland executive to

play their part and deliver sustainable budget so that we can

move forward on that. The Northern Ireland's lock grant will be over

?11 billion by 2019-20 and funding for new investment and

infrastructure will rise by over ?600 million over five years so that

Northern Ireland can invest in its long-term future. For many years

Wales has asked for a funding floor to protect public spending. Within

months of coming to office, this Conservative government is answering

that call and providing that historic funding guarantee for

Wales. I can announce that we will introduce the new funding floor and

set it for this Parliament at 115%. The Welsh Secretary and I also

confirm that we will legislate so that the devolution of income tax

can take place without a referendum. We will also help fund a new Cardiff

City deal. So the Welsh block grant will reach almost ?15 billion by

2019-20, while capital spending will rise by over 500 million pounds over

five years. -- capital spending will rise. Scotland voted to remain in

the United Kingdom. Mr Speaker, this must be underpinned by a fiscal

framework that is fair to all taxpayers and we are now ready to

reach an agreement. The ball is in the Court of the Scottish

Government. Let's have a deal that is fair to Scotland and to the UK,

and is built to last. We are implementing the city deal for

Glasgow and negotiating deals with Aberdeen and Inverness as well. If

Scotland had voted for independence they would have had their own

Spending Review this autumn. And with world oil prices falling and

revenues from the North Sea forecast by the OBR today to be down 94%, we

would have seen catastrophic cuts in Scottish public services. But

thankfully, Scotland remains a strong part of a stronger United

Kingdom. Pareja CHEERING

So the Scottish block grant will be over ?30 million in 2019-20 while

capital spending available will rise by ?1.9 billion until 2021. The UK

Government giving Scotland the resources to invest in its long-term

future. For the UK Government, the funding of the Scotland, Wales, and

northern Ireland offices will all be protected in real terms. We are

devolving power across this country and spending on the Icahn and

infrastructure that connects the nation. Something Britain hasn't

done enough of for a generation. Now by making the tough decisions to

save on day-to-day costs in departments were involved in -- we

will be investing in new roads, rails, and flood defence needed. We

started in the last Parliament. Britain has just topped the league

of the best places in the world to invest in infrastructure. In this

Spending Review we go much further. The Department for times but's

operational budget will fall by 37%. Peshmerga Department for

Transport's budget. The biggest increase for a generation. That

funds the largest road investment programme since the 1970s. We are

the builders. It means the construction of a just two, to link

the northern powerhouse to the south can begin, the electric version of

lines like the great Western can go ahead, we will fund our new

transport for the North to get it up and running. London will get an

investment of ?11 billion in its transport infrastructure, and having

met with my honourable friend for Folkestone and the Kent MPs are

relieve the pressure from Operation Stack within a quarter of a million

pound investment in facilities there. We will make a commitment of

?300 million to cycling as promised and spent over ?5 billion on roads

maintenance in this Parliament. And thanks to the incessant lobbying of

my honourable friend for Northampton North, Britain now has a permanent

potholes and! -- pothole fund! Nuno Espirito Santo

CHEERING We are investing in what we need and

in flood defences. The Defra budget will fall by 15% but we are

committing more than ?2 billion to protect householders from flooding.

Our commitment to farming and the countryside is reflected in the

funding of national parks and forests. We won't make that mistake

again! I can tell the House that in recognition of the higher costs they

face, Mr Speaker, we will continue to provide ?50 off the water bills

of South West water customers for the rest of this Parliament. A

promise made to the south-west and a promise kept. Investing in the

long-term economic structure of this country is the goal of this Spending

Review. -- one of the goals. There is no more important structure than

energy. We are doubling our commitment to research and

supporting the creation of the shale gas industry by ensuring that

communities and are fed from a shale wealth fund which could be worth up

to ?1 billion, -- that they benefit from a shale wealth fund. The

development and sale of ultralow emission vehicles will continue to

be supported but in the light of the slower than expected introduction of

a more rigorous EU emissions testing we were delayed removal of the

diesels supplement from company cars until 2021. We support the

international efforts to tackle climate change and to show our

commitment to the Paris talks next week as the Prime Minister just

explained, we are increasing our support for climate finance by 50%

over the next five years. DECC's day-to-day budget will fall,

Alderweireld reform the renewable energy initiative and we will

permanently exempt energies like chemicals from the cost of

environmental tariffs so we keep them competitive and keep them here.

I can announce that we are introducing a cheaper domestic

energy efficiency schemes that wrap is and is Twitter replaces ego. The

new scheme will save an average of ?30 a year from the energy bills of

20 former the households. Because this government believes that going

green should not cost the earth. And we are cutting other bills, we will

bring forward reforms to the compensation culture around minor

motorcycle accident injuries which were removed more than ?1 billion

from the cost of motor insurance. We expect the industry to pass on the

savings so motorists will see an average saving of ?40 -?50 a year

from the insurance bills. Mr Speaker, this is a government that

backs all our businesses, large and small. We on this side of the House

and a standard that there is no growth, no jobs about a vibrant

private sector and successful entrepreneurs. -- no jobs without a

vibrant sector. Business needs competitive taxes. I've already

announced a reduction in our corporation tax rate to 80%. Our

overall review of business rates were reported in the Budget. Today I

am helping 600,000 small businesses by extending our small business rate

relief scheme for one more year. Businesses also need an active,

sustained industrial strategy. And that strategy, launched in the last

Parliament, continues on this one. We commit to the same level of

support for our aerospace and automotive industries, not just for

the next five years, for the next decade. Spending on our new cut

above centres will increase. We will protect cash support that we give

through Innovate UK, we can afford to do this by offering ?165 million

of new loans to companies instead of grants, has funds has successfully

done for many years. It is one of the savings that helps us reduce the

business budget by 17%. In the modern world one of the best ways to

back business is by backing science. That is why, in the last

Parliament, I protected the resource budget for science in cash terms. In

this Parliament I am protecting it in real terms. So that it rises to

?4.7 billion. That's ?500 million more by the end of the decade,

alongside the ?6.9 billion capital budget as well. Funding the new

Royce Institute in Manchester and new agri- tech centres in

Shropshire, York, Bedford and Edinburgh, we will come and ?75

million to a transformation of the Cavendish laboratory is in Cambridge

where our knowledge of the universe was expanded. To make the most of

our investment in science I have asked one more of our Nobel Prize

laureates, Paul Knows, to conduct a review of the research councils and

I want to thank him for his excellent report and will implement

his recommendations. Britain is brilliant at culture. One

of the best things we can do is invest in culture, made as. --

culture, the and is. The core administration budget will fall by

20%. I am increasing the cash that will go to the arts Council, our

national museums and galleries will keep free museum entry and look at a

new tax credit to support their exhibitions. I will help UK sport,

which has been living on diminishing reserves, with a 29% increase in

their budget, so we'd go for gold in Rio and Tokyo. Mr Speaker, the Right

Honourable member and former Home Secretary has personally asked me to

support his city's Europe culture in Hull. His campaign has contributed

to the arts while his front bench contributes to comedy. The money for

a Hull... Mr Speaker, the money for Hull is all part of a package to the

Northern Powerhouse which includes funding the iconic new factory in

Manchester and the great exhibition in the North. In Scotland we will

support the Burrell connection. In London, we will help the V and the

science Museum move their exhibitions for display. We are

increasing the funding for the BBC World Service so British values of

freedom and free expression are heard around the world. And all this

be achieved without raiding the Big Lottery Fund as some had feared. It

will continue to support the work of hundreds of small charities across

Britain. So too will our support for social impact bonds. There are many

great charities who work to support vulnerable women. Indeed a point

raised in Prime Minister's Questions. The Honourable member for

Colchester has proposed a brilliant way to give them help. 300,000

people have signed a petition arguing that no VAT should be

charged on sanitary products. We already tried the lowest rate

allowable under European law. We are committing -- committed to getting

the EU to change its rules. The money raised from the tampon tax