The Budget 2016 Budget

It is Budget Day, and George Osborne is about to tell us

what he's doing to cope with the "dangerous cocktail"

of economic forces that he identified recently

And is he on course to balance the books?

Welcome to our live coverage of the Budget -

the second since last year's election.

And it's all happening in a rather different economic climate,

not to mention the political climate, with that EU referendum

And what will it mean for spending and taxation?

A few minutes ago, Mr Osborne appeared on the steps

his official residence, with the traditional Red Box

containing a copy of his Budget speech - his eighth since he became

Alongside him, his Treasury ministerial team.

And that Budget speech will be delivered at 12.30 after the usual

weekly session of Prime Minister's Questions.

They are all making their way now to the Houses of Parliament. Mr Osborne

himself left Downing Street a few minutes ago and headed for the

Palace of Westminster. Stay with us, as we'll have

all the Budget detail and reaction. I'll be getting the thoughts

of politicians here outside Parliament as they digest

the Chancellor's announcements and assess how he deals

with a potentially tougher economic I'm in Bolton - the heart of

the so-called Northern Powerhouse, which has been promised more money

to improve its transport network. from people affected by Mr Osborne's

plans. And I'll be responding

to your emails, texts and tweets about what this Budget means

for you and your family's finances. But not just detail and reaction -

we'll be making sense of the Budget measures with expert analysis

from my BBC colleagues our political editor,

Laura Kuenssberg, our economics

editor, Kamal Ahmed, and our business editor,

Simon Jack. They will also be providing plenty

of thoughts on social media If you want to join

the Twitter conversation, use the

hashtag #Budget2016. We'll try and put some

of your tweets and e-mails to our experts and guests

during the programme. Keep your comments and questions

coming in and I will do my best to use them as the programme goes

along. So, this time last year,

the coalition government And it has been a rather eventful 12

months for Mr Osborne. REPORTER: Is this an

election-winning Budget, With Britain's national debt

share falling, the sun People keep drinking beer

because of the duty cut. The simplest thing to do is not

to phase these changes in, I brought along

Mao's Little Red Book. Oh, look, it's his

personal signed copy! This is putting the power

into the Northern Powerhouse. He is a very visible Chancellor, in

so many ways. What are you expecting today? The big question for him is,

where the sunshine gone, Chancellor? In the last couple of years, we got

used to George Osborne making the case that actually he had done

rather a good job of fixing the roof while the sun was shining, to use

the metaphor which he used again and again and again. Today, the tone

will be completely different. He will be warning of gathering clouds

over the world economy. Will he try to make the case, as his critics

will suggest, but somehow he has caused some of these problems in

this country, or as I expect, he will point to what is happening

right around the world? So, how does he respond politically to the fact

that the numbers he produced now look hopelessly optimistic? Lots of

important things going on. Not least, we are keeping an eye on the

reaction. Today, it is a very big job for someone else, someone on the

opposition front bench. Let's have a look at the Labour leader Jeremy

Corbyn. As usual on these days, he did not say too much to the people

waiting. But he faces a big challenge today, Laura, because he

has got to lead the response to this but its speech. Some thoughts on

that? Some people might say this is the worst gig in Westminster, being

Leader of the Opposition on Budget Day. It is not impossible, but

almost impossible. Imagine doing an exam live on television in front of

the whole country, which is not on your specialist subject, which you

have not had any time to prepare for, and somehow you have got to

come back with something which is credible, and hopefully the Jeremy

Corbyn, can cut through to the public. It is a difficult task to

respond in any effective detail. But I'm sure that what we will hear from

Mr Corbyn is that in their view, George Osborne's record is a record

of failure. He has missed his own targets on sorting out the box again

and again and again. Of course, he will make reference to the fact that

George Osborne will be announcing more cuts, on top of six years of

cuts. In a sense, that is the big difficulty for him in terms of the

public. George Osborne's reputation was built on sorting out the books,

persuading people he was the safe choice to be able to clear away the

deficit and the debts. He has not got anything like as far as he

wanted to along that road. And he will be telling people today that he

has two act now so we don't pay later. That means more cuts, on top

of years of cuts. For people watching around the country, that

will be difficult to swallow. I will come back in a while to talk about

the all-important some would say, context of the European referendum,

which may have a bearing on some of these things today. Kamal is here.

On the economic picture, what would you say to the viewers about the

things you are focusing on today? As Laura said, it will be a fascinating

day. There are two big issues for us all to watch. One of those is around

the Government's finances, the government accounts. How much is the

Government spending and how much is it borrowing? Secondly, the health

of the UK economy. There have been some headwinds for the economy over

the last 2-3 months, since the Autumn Statement. Let's remember

some of those rules which George Osborne set himself last year. He

said he would reduce government borrowing and would be running a

surplus by the end of this Parliament. So let's look at some of

those figures. At the Autumn Statement last year,

Chancellor George Osborne set out how the Government would reduce

government borrowing and achieve the principle aim,

enshrined into law as part of the Charter for Budget

Responsibility, of running a surplus In November, he said Britain

will borrow ?73.5 billion in the current financial year,

?49.9 billion in 2016-17 and reach an overall surplus of

?10.1 billion in 2019-20. Another key target for

the Chancellor, and one also included in the Government's fiscal

charter, is for public sector net debt to be falling as a percentage

of GDP in each year. That was his second rule. Another

thing to look for today is, does he get that second rule?

November's forecasts put the Government on course to bring

that figure down from its peak of 83.1% in 2014-15 to 82.5%

It is then forecast to fall in each subsequent year, reaching

A lot of economists judging today that he will find it very difficult

in the new economic circumstances to hit that target.

At the Spending Review, Osborne was able to announce

smaller-than-expected spending reductions,

in the public finances arising from higher tax receipts and lower

Because interest rates are very low, those debt repayments were actually

low as well. So, the Government got a lift from those two things.

But since the beginning of the year, global economic uncertainty together

with slower than predicted growth in the UK have called that

In November, the OBR forecast GDP growth of 2.4% in 2015 and 2016

and expected it to remain at a similar level for

But figures published by the Office for National Statistics last month

put growth in 2015 at 2.2% and the Bank of England has now

cut its growth forecast for 2016 to 2.2%.

Wages haven't been growing as fast as expected either,

So, in order to stick to his targets, Mr Osborne has

warned that he may have to announce further cuts to public expenditure -

it's either that or abandon the rules he himself

Plenty of speculation about the content of today's Budget.

But it's important to remember that the Chancellor has already

announced a list of things that will take effect at start

of the new financial year next month.

So let's start with the so-called giveaways.

On income tax, the tax-free personal allowance is set to rise to ?11,000

next month and the threshold for paying the higher income tax

Next month, the Government's new living wage comes into force

and this will see the minimum wage rise from ?6.70 an hour to ?7.20

A new personal savings allowance of ?1,000 for basic rate taxpayers

and ?500 for higher rate taxpayers will also be introduced in April.

So much for giving away, the Chancellor is also taking money

The new apprenticeship levy will start to be collected in April

2017 and is expected to raise up to ?3 billion a year.

Stamp duty will be raised by 3% for buy-to-lets and second homes.

And while there's been much speculation about possible changes

to pension tax relief in today's Budget, the Chancellor has already

announced a reduction in the lifetime allowance

The Chancellor is squeezing public spending.

Savings will be made in the welfare budget by freezing working age

While increases in public sector pay will be capped at 1% for the rest

So, plenty of changes already in the pipeline. The world of business,

already affected by some of those, and the measures which have been

announced over the past year or so. We can speak to Simon Jack now. He

has got to try to persuade business he is still on their side, while at

the same time inevitably hitting them for some more cash. Business is

feeling pretty bruised. We have had the apprenticeship levy, we have had

the increase in the living wage. They are saying, enough already,

just give us a break, please. I'm afraid he will not be able to

oblige, however. So what are you expecting him to do? Where else can

he go, where business is concerned? He will probably have another bite

at insurance premiums. And he will try to make sure more tax does not

leak out of the current system. For example, at the moment, you can

deduct the amount you pay in debt interest from your profits to reduce

your taxable profits. We could see a change there. On the plus side, the

North Sea is in big trouble and this will be a no-brainer giveaway for

him, because there are no profits in the North Sea at the moment.

Reducing the tax by 20% - 20% of nothing is nothing!

We will be back with more analysis head of Prime Minister's Questions.

Lots of reaction at Westminster, but it is important for us to take the

temperature in other parts of the UK.

Yes, I am in the bowels of the marketplace in Bolton. It is the

Northern powerhouse, according to George Osborne, it is undergoing a

?20 million refurbishment and makeover. Everybody is busy working.

They might have stopped here, but let's talk to the man has been

overseeing the construction in this big marketplace. The Chancellor is

expected to officially announce new infrastructure projects for this

region. How much of a beast will that give Bolton? It will be a

fantastic boost. If you look at Bolton, it has always been

overshadowed by Manchester and Liverpool, but with the new

transport links coming through, from reducing travel times from over 35

minutes to Manchester, that will be reduced to 20 minutes, and from

there to the airport, within 40 minutes, so it will be fantastic to

the region. What will that do for the building trade? It will bring

more opportunities to the business, growing it forward. It is all very

positive. Let's take you into the Bolton Sunshine, out of the gloom of

the vaults. They will be opened in the next few months, there will be

restaurants and bars tucked in and here. These faults have been closed

since 1855, when this was the biggest marketplace in Europe. Let's

talk to two ladies, one of them is in charge of it all. What impact is

this going to have on Bolton? The development has already had a

positive impact, we are hoping it is a game changer, introducing leisure

and restaurants is a must have, so we are hopeful it will be great. Is

the Northern Powerhouse actually a reality, or is it rhetoric? It is a

reality, we have the transport interchange happening, a ?40 million

spend, that is funded by Greater Manchester transport programme. It

is good. There are measures that the Chancellor has already brought him

that have had an impact on small businesses, you run an accountancy

firm, what impact they had? I faced complaints regarding the changes in

dividends. Small business owners face paying taxes on dividends,

which has a big impact for the tax planning. What about for the minimum

wage? The Government has announced the national living wage. We all

want to earn more money, so it is not bad, but at the same time being

forced to pay more as wages, more in taxes, regarding the dividends, it

does not have a good impact on small businesses, because we have been

afraid. People get reaction all day here at the marketplace in Bolton,

and we will get reaction with Ruth Alexander, our personal finance

expert. She is up there. Amid all of the speculation about

what might be in the Budget, we know what the Chancellor has planned to

come into play in April. Tensions will be a big area of change, we get

a lot of questions about that -- pensions. For people reaching state

pension age from the 6th of April this year, the system will change.

They won't get the basic state pension and the additional pension,

they will just the one new state pension, ?155 a month. The highest

earners are being squeezed, the maximum amount you can save tax-free

in a pension over a lifetime is going down to ?1 million, and the

annual amount you can save every year if you are earning ?150,000 or

more will be gradually tapered down. There is good news for savers, basic

rate tax payers will be able to earn ?1000 interest tax-free on their

savings and higher taxpayers will be able to own ?500 tax-free, on top of

the Isa limit. We would love to keep in touch with you throughout the

Budget and hear how it is affecting you. You can e-mail us. You can text

is. Or you can contact us via Twitter.

We will be here all day, not only will we gauge reaction from local

businesses and the TUC and local political leaders, we will bring you

an analysis of all of the key measures announced in the

Chancellor's Budget. We will be back straightaway later

on, when there is more reaction. You are welcome to send in questions and

comments as you go, we will try to deal with as many as we can. Let's

look outside our studio in Westminster, a glorious view from

our helicopter of the Palace of Westminster, quite a bit of work

going on, but there is a big bill attached to the projected work, if

those bills are approved, the cos there is a lot of repair work needed

on this glorious welding. The Victoria Tower on the right, home to

the Parliamentary archives, with bills going back hundreds of years,

and Big Ben across the river from the London eye. On the green in

front of Parliament is Jane Hill. Good morning, welcome to a blustery

College Green. Let's assess what representatives of the two main

parties at Westminster think we might be in for over the next couple

of hours. Welcome to both of you. Like it or

not, this widget is absolutely all through the prism of what is

happening on June 23. June the 23rd is quite a way off, we still have

four months to go. This is about sticking with the long-term plan,

delivering stability for the economy, we have 2 million more

jobs, people moved off benefits, and it is about investing for the

future. For example, you talk about investing for the future, turning

schools into academies, where is the money coming from? This is what the

Chancellor has done from the beginning, it has taken two big

decisions, he has continued to reduce the deficit, so you spend

less on debt interest, giving you more money, and if you continue to

reform welfare, we are saving ?12 billion, rather than spending money

on bills of social failure, we can invest it for the long term, in

education. I am pleased we will have Crossrail to and investment in

high-speed three. That is the sort of think we need to do, move away

from the spending that is wasting money to long-term investment in

areas of infrastructure. Jeremy Corbyn is standing up for the first

time today, he has a very daunting task. I think it will be a real test

for George Osborne, about facing up to his failures. Oliver talks about

the costs of failure, but if you take one example, the housing

benefit bill will be 350 million more than George Osborne forecast

last year. As a direct result of a lack of house-building, the worst

record since 1920, and rental prices rising. This is a test as to whether

he is going to face his own failures, it will take 14 years

longer to meet his export targets. Will he face up to his failures and

put the interests of the British economy first, all his own political

ambitions? We want to see a fair widget, we want to see the poorest

not bearing the highest cost, and we wanted to genuinely invest in the

future. You confident that your leader will stand up and make those

points, that he will be able to rebut whatever George Osborne

announces's this is a test for anyone. This is his first chance to

do this. This is absolutely a test, I have every confidence we will

stand up to George Osborne today, not just in the chamber, but we will

stand up to him in the media as well, because he has failed on so

many levels, he has shown you cannot cut your way to prosperity. If

people's wages are ?40 worse off than even before the crash in 2008,

those are real questions for George Osborne to answer about why women

are worse off, bearing 81% of the cuts, and why he is cutting support

for people with disabilities, 600,000 people set to be affected.

It is a test about George Osborne facing up to his failures and

investing for our future economic welfare. You mentioned investing in

infrastructure, this is also a Budget produced by a man who is

thinking about trying to get into number ten. I had the privilege of

working for the Prime Minister for five years, I hope and expect he

will continue as Prime Minister until the end of the parliament, so

that is quite a way off. It is interesting, talking about failure,

I remember when we came into power, we had the biggest, or one of the

biggest, deficits, we have reduced the deficit by a half, hopefully it

will be down by two thirds. More jobs being created, that is the

record he will focus on. That as a percentage of GDP has risen to over

80% of the George Osborne. He failed to cut the deficit as he said he

would. He failed on manufacturing. We are now still not even at

precrisis levels with manufacturing. He has failed, 9% of your

infrastructure projects have been delivered, there is a long way to

go. I would say one point... The success is demonstrated by us having

the second strongest economy in the G7, we can be proud of that. Even

the CBI have said... The debate is still continuing! We will have much

more from here over the cause of the afternoon.

Just a taste of what is to come. If anybody has been telling you this

will be a boring Budget, that proves we are in for an interesting time.

You can access the BBC's range of expert

analysis and all the latest Budget news on the BBC website.

It's nearly midday here at Westminster.

Very soon we'll be in the House of Commons

They are just tidying up the questions on international

development, but it is a full house already, everybody has been there to

book their seats for the Budget. Justine Greening finishing this

question session, we will be back in a few sessions. I mentioned the

all-important context of the referendum coming up, because for

lots of people watching today, that is the context around this speech.

And it is for the Government as well, there is no doubt. George

Osborne likes to trade in big political facts and headlines. The

big fact now is the Government's priority is making sure they win the

EU referendum, or not lose the referendum, which is a slightly

different thing. That does not mean the Budget will be empty of anything

that is ambitious or makes a difference to people watching this,

but what it means is that we are not likely to get very many measures

that will give George Osborne real headaches inside his own political

party. We are in the early days of the referendum campaign, but it is

already extremely fractious inside the Conservative Party. The other

big political fact is they have got a very small majority, and they can

be beaten, they have been, they were beaten the other day on plans to

have shops in England open for longer on Sundays. Don't expect an

empty Budget or nothing controversial, but we should not

expect anything that will upset the apple cart on the Conservative

benches, because they focused on keeping together on the EU. So, on

Budget Day 2016, let's look at the scene on the banks of the River

Thames, the Palace of Westminster and Big Ben, about to announce it is

storing up to mid-day. Very soon we will have Prime

Minister's Questions starting. It has been a few minutes late

starting, of late. Maybe the Speaker today will be a bit more strict.

Let's have a look inside the chamber. Questions on international

development are still finishing. Let's see whether the Speaker is now

going to call the Prime Minister... Questions to the Prime Minister!

Number one, Mr Speaker. Thank you, Mr Speaker. In addition to my duties

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

With unemployment falling by more than 60% and more than 5000 new

apprenticeships, Redditch is doing well. There will be a jobs fair in

the next few weeks, with 25 companies taking part. Will my right

honourable friend agree with me, we have made a good start, but we must

not be complacent, and through the middle and engine, continue to get

good quality jobs in our region? I very much agree. If we look at the

West Midlands and take today's unemployment figures, we can see

that the claimant count has come down in the West Midlands since 2010

by 91,000 people. Unemployment figures out today show that

employment in our country is at a new record high of 31.4 million

people, compared with 2010, there are now more than 2 million more

people in work. And the claimant count today, down 18,000 in the last

month. Figures which I'm sure will be welcomed right across the House.

Thank you, Mr Speaker. Could the Prime Minister tell the House how

many people will die from respiratory disease as a result of

air pollution before this country meats its legal obligations on error

quality by 2025? I do not have those figures to hand. But what I know is

that we need to make progress on error quality, which is why we have

the new regulations on diesel engines, which are helping. That is

why we have the steady decarbonisation of our power sector,

which will help. And why we have very strong legislation already in

terms of clean air, especially in our cities. If I can help the Prime

Minister! A sad truth is that half a million people will die because of

this country's failure to comply with international law on air

pollution. Hats he could answer another question - how much does a

pollution cost our economy every year? Of course it costs the economy

billions, because people are being injured. That's why we have the new

clean air zones. That's why we are seeing emissions from cars coming

down. I can give him one example. If we deliver in terms of our carbon

reduction plan for Alex is a cheap -- for Alex visited generation, we

will see something like an 85% reduction in carbon by 2030. That

will give us one of the best green records anywhere in the world. --

for electricity generation. The Royal College of Physicians

estimates that it costs the economy ?20 billion per year. The failure to

deal with a pollution is killing people. Just a few days ago, London

faced a severe smog warning. His friend the Mayor of London has

presided over a legal breach of air quality in the capital every day

since 2012. So why can't the Prime Minister hurry up action to make us

comply with international law and above all, help with the health of

the people of this country? The clean air act was passed by the

Conservatives in the 1950s. I'm sure it will be this government which

takes further action, as I have already described. Why are we able

to do this? Not only because we care about our environment, but we have

got an economy strong enough to pay for these improvements, as we are

about to hear. Mr Speaker, we all welcome the Clean-air Act of 1956,

but things have moved on a bit since then. The Government are now

threatened with being taken to court for its failure to comply with

international law on a pollution. He is proposing to spend tens, if not

hundreds of thousands of pounds of public money defending the

indefensible. Why not instead invest that money in cleaner air and better

air quality for everyone in this country? We are phasing out the use

of coal filed power stations, far in advance of what other European

countries are doing, blazing a trail in terms of more renewable energy.

The clean nuclear energy which we will be investing in. All of these

things will make a difference. But you can only do this if you have a

strong economy, able to pay for these things. Mr Speaker, if the

Government and the Prime Minister are so keen on renewable and clean

energy, could he explain why on Monday, the House approved new

regulations to allow communities a veto on clean energy projects like

shore wind? I have a question from Angela from Lancaster. She asks the

Prime Minister this... Will the Prime Minister offer the same right

of veto to her community and communities like hers across the

country of a veto on fracking? We have a proper planning system for

deciding these things. If he wants to know what is happening in terms

of renewable energy, 99% of the solar panels in this country were

installed since I became Prime Minister. That is the record we

have. The United Kingdom now has the second-largest ultralow emission

vehicle market anywhere in the European union. We have seen one of

the strongest growth is in renewable energy. Is it not remarkable? Five

questions in and know well, for the fall in unemployment. No mention of

the 31 million people now in work. No mention of the fact that we have

more women and young people in work, that more people are bringing home a

celery and paying less taxes. Not a word from a party which I thought

was meant to be the party of labour. The party of working people, getting

people into work, is on this side of the House! Mr Speaker, the questions

to the Prime Minister are these - he once boasted that he led the

greenest government ever. No Husky was safe from his cuddles. So, could

he explain why the Energy And The Select Committee has produced a

damning report on green energy, saying that major investors

described his policies as risky as a result of cuts and changes? Why is

this government so failing the renewable energy sector, clean air,

investors, consumers and those that work in that industry? Any proper

look at the figures will show that this government has a remarkable

record in green energy. Let me take the Climate Action Network. They

said that Britain is the second best country in the world for tackling

climate change, after Denmark. That is our record. Since 2010 we have

reduced greenhouse gases by 14%. We are over delivering against all of

our carbon budge its. We secured the first truly global, legally binding

agreement to tackle climate change. We have got and support for

renewables more than doubling to more than ?10 billion by 2020. On

renewable electricity, we are on track to deliver our target of at

least 30% from renewable sources by 2030. And almost all of that will

have happened from a Conservative-led government. That is

our record and we are proud of it. Question two, Mr Speaker. There are

some very positive things going on in the West Midlands economy.

Today's figures show employment in the region up by 140,000 since 2010

and more than 108,000 businesses were created in the region between

2010 and 2014. Tanks to our long-term economic plan for the

Midlands Engine, we have helped to build a strong NHS, reform the

education system there and give our police the resources they need.

Unemployment is down again in my beautiful Lichfield. And yesterday

was an absolute first for the West Midlands, when the whole region

cooperated to present 33 investment schemes at an international

conference in Cannes, which will create a further 178,000 jobs of

what more can the Prime Minister do to support the Midlands Engine,

apart from ensuring of course that we never get a Labour government? I

am very glad my honourable friend chose to be here rather than can

tell. He is right about these 33 schemes. Just last week we had a

?300 million deal signed with Chinese investors to create 1000

jobs in Coventry. The Business Secretary was in Staffordshire, with

Nestle opening a new factory, bringing 400 jobs. And of course we

got that historic deal with the West Midlands which will see significant

new powers devolved to the combined authority and the directly elected

mayor. We are changing the way our country is run, devolving power,

building the strength of our great cities - and Birmingham is the

second city of our country. There is widespread reporting, Mr Speaker,

that the UK Government is about to commit to send ground troops to

Libya to train government forces there. Is this true and why has

Parliament not been informed about it? Of course, if we had any plans

to send conventional forces for training in Libya, then we would

come to this House and discuss it. What we want to see in Libya is the

formation of a unity government. There is progress with the Prime

Minister, who can now lead that government. We will want to hear

from him what assistance and help should be given in Libya. Countries

like Britain, France, America and Italy will definitely try and help

about new government, because right now, Libya is a people smuggling

route, which is bad for Europe, and also you have the growth of Daesh

there as well. If there are any plans for troop deployment in a

conventional sense, we will come to the House and discuss it. The UK

spent 13 times more bombing Libya than securing the peace after the

overthrow of the hated Gaddafi regime. The critics of UK policy

even include President Obama of the United States. So, will the Prime

Minister gave a commitment to bring the issue of any potential Libyan

deployment of any British forces to Parliament for approval before

giving the green light for that to happen will he give that commitment,

yes, or no? I am very happy to give that commitment, as we always do. I

am very clear that it was right to take action to prevent that

slaughter which Colonel Gaddafi would have carried out against his

people in Benghazi. I believe that was right. Of course, Libya is in a

state which is very concerning right now. Everybody has to take their

responsibilities for that. After the conflict, the British Government did

support the training of Libyan troops. We did bring the Libyan

Prime Minister to the G8 in Northern Ireland. We went to the United

Nations and passed resolutions to help that government. But so far we

have not been able to bring about that government of national accord

which can bring some semblance of peace and stability to the country.

Is it in our interests to help that government do exactly that? Yes, it

is and we should be working with others to do that. My constituency

of Gower, which was won for the first time ever by the

Conservatives, is being transformed along with the rest of the region by

the Swansea Bay Tidal Lagoon. Could he give us absolute assurance that

everything will be done to make sure that the Swansea Bay Tidal Lagoon

Project fits the UK economic strategy, and does he further

recognise the economic potential this will bring to our region? I do

remember visiting his constituency just after his excellent victory

last year. I seem to remember we went to a brewery for a mild

celebration. He is right that tidal lagoons do have potential. We

launched a review of tidal lagoon power and we will look carefully at

the findings of that review and continue working closely with

developers in order to make a decision on Swansea. Wrexham and

north Wales is a strong manufacturing and exporting region.

But its growth is constrained I a lack of access to any airports in

north-west England. The Office For Rail Regulation Is Currently

Considering Applications For Rail Links From North Wales. Will the

Prime Minister support a cross-party campaign for fairness for north

Wales and for access to airports in north-west England? The former

Secretary of State for Wales, the honourable member for Clwyd West,

came to see me recently about this. I think there is a very strong

argument for how we can better connect north Wales with the

north-west of England and make sure that we build on the economic

strength of both. I will look very strongly at what he says and at what

my right honourable friend you are that topic. Last week a High Court

judge ruled in favour of ACPO of a grade two listed hospital in

Denbigh. Years of neglect by its offshore company owner resulted in

the building is being brought to the point of collapse. Thanks to the

ground-breaking work carried out by Denbighshire County Council and the

Princes regeneration trust, their future should now be safeguarded.

What can the Prime Minister do to prevent buildings such as these from

falling into the hands of those who are not fit and proper guardians and

especially those outside of the control of our judicial system?

Heritage is a devolved matter, but it is great news that these

buildings will be safeguarded. They were bought by a company in 1996 and

left abandoned, that is no way to treat such a building. That is why

we can have compulsory purchase orders, and the council were right

to use them, councils should have the confidence to use these measures

where appropriate. Two weeks ago, in front of the Education Select

Committee, the head of Ofsted said that 16 to 19 education should be

done in a school-based environment and not in a further education

institution, and some pupils go to FE, they do badly and pop out. Does

the Prime Minister agree? We need a range of settings for A-levels and

post-16 study. There are a lot of secondary schools who would like to

have a sixth form, and there are great benefits for the 11-year-olds

going to secondary school who can look to the top of the school and

see what people are achieving at 16, 17, 18, what futures they are

thinking of, and for many it is inspiring to go to a school with a

sixth form, but let's have the choice. This is why the Academy says

of schools is important, because schools can make the choices. In

apprenticeship week, the prime and is double join my thanks to the

employers who have created 6500 apprenticeships in Gloucester since

2010. My apprentice is now Gloucester's youngest ever City

Councillor. Would he do all he can to hasten the introduction of

associate nurses who would make a huge difference to the NHS? He is

right to say the south-west has delivered over 280,000

apprenticeship starts since 2010, it is pulling its weight, and well done

to his constituents. He is right about the introduction of associate

nurses, we are working to take this on to offer another route into

nursing, which can see an expansion of the NHS. According to the stats

provided by the house library, there are 280,000 problem gamblers in the

UK. Can the Prime Minister indicate when the Government will take

forward the 2010 report prepared and does the Prime Minister agreed that

the money from dormant betting accounts should be used to support

those whose lives have been destroyed by gambling? We will study

the report, we took some action in the last parliament to deal with

problem gambling in terms of the planning system and the way fixed

odds betting terminals worked. I am happy to keep examining the issue

and act on the evidence, I will discuss it for the Secretary of

State. The systematic killing of Christians and other minority groups

by the so-called Islamic State across the Middle East has reached

unprecedented proportions, so the action being taken by the Government

is just. But what more will he do working with the international

community to hold this genocide being committed against Christians

by what I rather call the say panic state? He is right to draw attention

to what they are doing in terms of persecuting Christians and others,

not least others of other faiths and Muslims who they take disagreement

with. We must keep to the plan, we have shrunk the territory Daesh have

in Iraq by 40%, we are seeing some progress in Syria, but this will

take time, and we must show patience and persistence to make sure we read

the world of this evil death cult. The Prime Minister's energy policy

is a shambles, it is wholly dependent upon the troubled and I

watering the expensive new nuclear plan at Hinckley. There is barely a

plan A, let alone a plan B. Is he seeking to build the world's most

expensive power station or the biggest white elephant? We are

planning to continue the successful energy policy which has seen cheaper

energy and lower carbon at the same time. The strength of the Hinckley

deal is there is no payment unless the power station goes ahead and is

built efficiently by EDF. That will be good for our energy supplies,

because if you want to have energy at low cost and low carbon, you need

to have strong nuclear energy at the heart of your system.

Research's a research centre is the first to look at antimicrobial

resistance, a looming global denture -- danger of disaster movie

proportions. Will the Prime Minister meet with me so that we can fund

their research, so it is not the Americans who save the world, but

the British? I am very happy to. He is right to raise the issue, because

of the growing resistance to antibiotics, and in so many cases

they are not working, we face a genuine medical emergency around the

world. That is why we have put this issue on the agenda of the G20, it

was a large part of our discussions with the Chinese when they visited,

and why we are investing ?50 million in a fund working with the Chinese

Government to take this forward, and I hope his organisation can benefit

from some of this research. The Prime Minister will know that his

Home Secretary is once again trying to deport Afghan interpreter is

seeking sanctuary in the UK. These brave people risked their lives

serving our Armed Forces but they now face being sent back for the

mercy of the Taliban or to join hundreds of thousands rotting in

refugee camps. Is this how we should repay those who put their lives on

the line for us? Will he do the right thing and do whatever possible

to ensure they are offered a safe haven here? What we did in the last

Government, in which his party played a role, we agreed a set of

conditions for Afghan interpreters to be able to come to the UK and the

given sanctuary, but we also provided for a scheme so that those

who wanted to stay and help rebuild their country could do so, and I

would defend that, even if his party has changed its mind. My constituent

and her sister watched their mother waste away in hospital due to

inadequate care after a fall, which has been admitted by the consultant.

Last week, the Health Secretary hosted a global summit on patient

safety and announced the creation of the new investigation Branch. What

more can the Government do to ensure patient safety is at the heart of

the NHS and prevent such instances occurring again in the future? She

is right to raise cases like this. They are horrendous when they take

place, they should be properly investigated, but we need to learn

the lessons of. We have made progress, the proportion of patients

being harmed in the NHS has dropped by over a third and infections have

fallen by over a half in the last five years. But the Health Secretary

is right to hold this conference and to examine what other industries and

practices have done to have a 100% zero accident safety culture. We

have seen this in other walks of life, it is time we applied it to

the NHS. Eight days ago, Oliver techno pop to the shops, he was

brutally shot dead. The community are shocked and saddened by this

murder of an innocent young man, they have asked for more community

local policing and more using gauge meant. Will be Prime Minister meet

with me and Kim and easy champions to discuss how we can make the

streets safer? She raises an important point. What we have seen

in London is a reduction in grant -- gun crime. It is a tragic case, but

we have seen a reduction, we have seen more active policing, better

intelligence policing in terms of dealing with gun crime, and we must

keep it up, and we will arrange a meeting. As he will be aware,

highways England are consulting on a new lower Thames crossing with their

preferred option being option C, which will divert 14% of traffic

away from the existing Dartford Crossing. Does he agree that before

spending billions on the new crossing we should sort out the

problem at the existing crossing, not only helping more motorists but

improving illegal levels of air quality and restoring Brazilians to

the M25? Will he meet with me to discuss these matters further? He

makes an important point. We need to tackle congestion and air quality

and stationary traffic is more polluting, so sorting out the

problems at the existing crossing is important, but I believe we have to

look at the options for a new crossing. Two locations are on the

table as a result of early work, and these are the best available options

are. Highways England have looked at both options and we look forward to

seeing what they recommend, and then I hope we can make progress. It is a

vital set of arteries, we need the traffic to flow smoothly. On

reflection, was it wise of the Chancellor to bank on the theory of

a ?27 billion windfall when it has only vanished in the space of the

last three months? We will hear a lot from the Chancellor in a minute,

but we have got an economy that is fundamentally strong, facing a very

difficult set of wealth circumstances. But here,

unemployment at 5%, inflation at virtually 0%, the unemployment

figures show unemployment falling again, and wages growing at 2%, that

is a better record than most other countries in the developed world,

and a lot of that is down to the very clear plan set out and followed

in these past six years of. Last week was English tourism week, I was

alerted to welcome a delegation to the Eden Project to promote Cornwall

as a destination for international tourists, but there is still more to

do to attract overseas visitors out of London and into the regions. Can

I ask the Prime Minister what more the Government can do to support the

tourist industry and get more overseas visitors to come to

Cornwall? There is nothing finer than getting out of London and

getting down to Cornwall and no better place than Polzeath beach

when the sun is setting and the waves are big. And by phone is

working! The Daily Mail photographer has gone home as well, that helps!

We need to get people who come to our country to visit the wonders of

London, spend time outside London, and that is what some of the new

schemes we have announced, like the Discover England fund, are all

about, and I urge the authorities in Cornwall to make the most of it. In

2014 we exported ?12.8 billion of food products, with 73% of that

total going to other European states. No wonder 71% of food

Drink Federation members want us to avoid Brexit. Does the Prime

Minister think boosting the export profile will be strengthened by

staying in the European Union? The view from food manufacturers and

farmers and the wider business community, 81% of whom said they

wanted to stay in a reformed Europe, is clear. The argument on food are

clear, our farmers produce some of the best food anywhere in the world,

they know they have access to a market of 500 million consumers

without tariffs or quotas or any problems. We should not put that at

risk. When we look at some of the alternative is to being a part of

the single market, like a Canadian style free trade deal, there are

restrictions, such as quotas of beef, and I don't want that to apply

to British farmers. Does my right on one friend agree

that having an inspirational mental and provide young people with the

opportunities they would never have benefited from before? Can he tell

me how the ?14 million that the Government were putting into a new

national mentoring scheme will benefit some of the most

disadvantaged children in our society? I agree. One of the most

important thing is that our schools can look to do in the future is to

encourage mentors into their schools to give that extra one on one help

that young people benefit from. I was at a Harris Academy yesterday to

see how well that is going, every child studying GCSEs who wants a

mentor can get them, it makes a difference to their chances. The

money should allow an extra 25,000 of the most disadvantaged in our

country to have a mentor, and I urge all schools to look at it. There are

so many people who would love to take part and help young people

achieve their potential. The Prime Minister likes to suggest

that he is the champion of localism. But today, his government is seeking

to gag local communities with a forced academies policy which cramps

any dissent. Can he explain to the vast majority of residents in

Brighton and Hove, who recently roundly rejected academy status for

two local schools, why it is that their views will count for nothing

in the future? I would argue that academy schools are true devolution,

because you end up with the parents, with the governors, with the

headteacher having full control. If that does not convince her, then I

would say, look at the results. If you look at primary sponsored

academies, you will see that they have got at records and are

improving faster. If you look at converter academy schools, 88% of

them are improving. My constituent has been diagnosed with terminal

breast cancer. She has shown outstanding courage in her fight

against the disease. But unfortunately Jackie did not get the

support or compassion of her employer, who wanted to dismiss her

through capability procedures. Now, her former partner is trying to get

the House repossessed, leaving her homeless whilst dying. Would the

Prime Minister agree with me that we require better protection for

working people who are diagnosed with a terminal illness? Will he

join with me and Jackie in supporting the changes as outlined

in the TUC campaign? I think the points made by my honourable friend

are absolutely right. I will look very carefully at the case she

raises. In all of these things, as well as having clear rules, you also

need organisations, whether it is employers or housing associations or

landlords or trade unions, to act with genuine compassion. And to

think of the human being at the other end of the telephone. Order!

STUDIO: As is traditional on Budget Day, the Senior Deputy Speaker takes

to the Chair. He is the Chair of the committee which traditionally

scrutinises financial measures. Let's rejoin proceedings again by...

Before I call the Chancellor of the Exchequer, I remind Honourable

members that copies of the budgetary resolutions will be available to

them in the vote office at the end of the Chancellor's speech. I also

remind Honourable members that it is not the norm to intervene on the

Chancellor of the Exchequer or the Leader of the Opposition. I now call

on the right honourable George Osborne, Chancellor of the

Exchequer! Mr Deputy Speaker, today I report on

an economy set to grow faster than any other major advance economy in

the world of I report on the labour market delivering the highest

employment in our history. And I report on a deficit down by two

thirds, falling each year beady eye can confirm today, on course for

about its surplus. The British economy is stronger because we

confronted our countries's problems and took the difficult decisions.

The British economy is growing, because we did not seek short-term

fixes, but pursued a long-term economic plan. The British economy

is resilient, because whatever the challenge, however strong the

headwinds, we have held to the course we set out. I must tell the

House that we face such a challenge now. Financial markets are

turbulent. Productivity growth across the West is too low. And the

outlook for the global economy is weak. It makes for a dangerous

cocktail of risks. But one which Britain is well prepared to handle

if we act now so we don't pay later. Mr Deputy Speaker, Britain has

learned to its cost what happens when you base your economic policy

on the assumption that you have abolished boom and bust. Britain is

not immune to any slowdowns and shocks. But nor as a nation are we

powerless. We have a choice. We can choose to add to the risk and

uncertainty all we can choose to be a force for stability. In this

Budget, we choose to put stability first. Britain can choose, as others

are, short-term fixes and more stimulus. All we can lead the world

with long-term solutions to need long-term problems. In this project,

we choose the long-term. We choose to put the next-generation first. We

choose, as Conservatives should always choose, sound public finances

to deliver security. Lower taxes on business and enterprise to create

jobs. Reform to improve schools, investment to build homes and

infrastructure. Because we know that is the only way to deliver real

opportunity and social mobility. And as Conservatives, we know that the

best way we can help working people is to help them to save and let them

keep more of the money they earn. That is the path we have followed

over the past five years and which has given us one of the strongest

economies in the world. And that is the path we will follow in the years

ahead. In this Budget, we redouble our efforts to make Britain fit for

the future. Mr Deputy Speaker, let me turn to the economic forecast. I

want to thank Robert Choate and his team at the Office for Budget

Responsibility. To make sure they have available to them the best

statistics in the world, I am today recommending all of the

recommendations of the excellent report from Sir Charlie. I want to

thank another great public servant, Sir Nicholas McPherson. He has

served as permanent Secretary to the Treasury for ten years, under three

very different chancellors, and throughout he has always

demonstrated the great British civil service values of integrity and

impartiality. He is here today to watch the last of 34 Budget is he

has worked on. On behalf of the House and the dedicated officials in

the drudgery, I thank him for his service. -- 34 Budgets. The OBR

tells us today that in every year of the forecast, our economy grows, and

so does our productivity. But they have revised down growth in the

world economy and in world trade. In their words, the outlook is

materially weaker. They point to turbulence in the financial markets,

slower growth in emerging economies like China and weak growth around

the world. They note that monetary policy around the world, instead of

normalising this year as expected, has been further loosened. The bank

of Japan has joined Sweden, Denmark, Switzerland and the European central

bank, with unprecedented negative interest rates. They also note that

this reflects concerns across the West about low productivity growth.

The Secretary-General of the OECD said last month that productivity

growth has been decelerating in the vast majority of countries. As a

result, the most significant change the OBR have made since their

November forecast is their decision to revise down attentional UK

productivity growth. The OBR had thought that what they described as

the drag from the financial crisis on our productivity would have eased

by now. But the latest data shows it has not. They acknowledge today that

this revision is in their own words a highly uncertain judgment call,

but iPAQ them 100%. We saw under the last Labour government what happened

when a Chancellor of the Exchequer revised up the growth rate, spent

money the country did not have and left it to the next generation to

pick up the bill. I am not going to let that happen on my watch. Now,

these days, thank to the fact we have established independent

forecasts, our country is confronted with the truth as economic

challenges emerge and can act on them before it is too late. We fix

our plans to fit the figures. We do not fix the figures to fit the

plans. Now, the IMF have warned us this month that the global economy

is at a delicate juncture and faces a growing risk of economic

derailment. Eight years ago, Britain was the worst prepared of any other

major economies for the crisis we then faced. Today, Britain is the

best prepared for whatever challenges may lie ahead. And that

is what our long-term economic plan has all been about. When I became

Chancellor, we borrowed ?1 in every four we spent a. Next year, it will

be ?1 in every 14 that we spend. Our banks have doubled their capital

ratios. We have doubled our foreign exchange reserves. And we have a

clear, consistent and accountable monetary policy framework, admired

around the world. The hard work of fixing our economy is paying off. In

2014, we were the fastest major advanced economy in the world. In

2015 way well ahead of everyone but America. So, let me give the OBR's

latest forecast for our economic both in the face of the new

assessment of productivity and the slowing global economy. Last year,

GDP grew by 2.2%. The OBR now forecasts it will grow by 2% this

year, then 2.2% again in 2017, and then 2.1% in each of the three years

after that. Now, the House will want to know how this compares to other

countries. I can confirm that in these turbulent times, the latest

international forecast expects Britain to grow faster this year

than any other major advanced economy in the world. Mr Deputy

Speaker, the OBR are explicit today that their forecasts are predicated

on Britain remaining in the European Union. Mr Deputy Speaker... Over the

next few months, this country is going to debate the merits of

leaving all remaining in the European Union. I have many

colleagues who I respect greatly on both sides of the argument. The OBR

correctly state out of the political debate and do not assess the

long-term costs and benefits of EU membership. But they do say this,

and I quote them directly - a vote to leave in the forthcoming

referendum could usher in an extended period of uncertainty

regarding the precise terms of the UK's future relationship with the

EU. They go on to say - this could have negative implications for

activity by business and consumer confidence and might result in

greater volatility in financial and other asset markets. They sit a

number of external reports, and they say this - there appears to be a

greater consensus that a vote to leave would result in a period of

potentially disruptive uncertainty, while the precise details of the

UK's new relationship with the EU were negotiated. Mr Deputy Speaker,

the House knows my view - Britain will be stronger, safer and better

off inside a reformed European Union. I believe we should not put

at risk all the hard work the British people have done to make our

economy strong again. Mr Deputy Speaker... Order. Let's be honest,

we all want to hear what the Chancellor has got to say. Some

people may agree, some may disagree. But I want to hear him. This country

wants to hear him. Chancellor of the Exchequer. Mr Deputy Speaker, let me

turn to the OBR forecasts for the labour market. Since the Autumn

Statement just four months ago, more than 150,000 more jobs have been

created the OBR expected. That is 150,000 extra families with the

security of work. 150,000 reasons to support our long-term economic plan.

This morning, unemployment fell again. Employment reached highest

level ever. The data confirms that we have the lowest proportion of

people claiming out of work benefits since November 1974. The OBR are

forecasting 1 million more jobs over this Parliament. Mr diabetes beaker,

we remember what our political opponents said in the last

Parliament. -- Mr Deputy Speaker. They said a million jobs would be

lost. Instead, 2 million were created. And when the jobs started

coming, we were told they were going to be low skilled. But today, we

know that almost 90% of the new jobs are in skilled occupation more. We

were told the jobs would be part-time. But three quarters are

full-time. We were told the jobs would all be in London. But the

unemployed rate is falling fastest in the north-east. Youth

unemployment is falling fastest in the West Midlands. Employment is

growing fastest in the north-west. And in today's forecast, real wages

continue to grow in each and every year.

The OBR forecast is lower inflation, 0.7% this year, 1.6% next year. I am

today confirming that the remade for the monetary Policy Committee

remained asymmetric CPI inflation target of 2%. I am also publishing

the new find -- the new remake for the body we created to keep an eye

on emerging longer-term risks in our system, I am asking them to be

vigilant in the face of current market turbulence, because we act

now so we do not pay later. That brings me to our approach to public

spending and the OBR forecast for our public finances. In every year

since 2010I have been told by the opposition that now is not the right

time to cut Government spending. When the economy is growing, I am

told we can spend more, when it is not, I am told we cannot afford not

to. My analysis shows if we had not taken the action we did in 2010,

humility of borrowing would have been ?930 billion more by the end of

the decade and it is now forecast to be. If we had taken their advice,

Britain would not have been one of the best prepared it, Ms for the

current global uncertainties. We would have been one of the worst

prepared. The same people are saying to us we should spend more again. I

reject their dangerous advice. The security of families and businesses

depends on Britain living within its means. Last autumn's review delivers

a reduction in Government consumption that is judged by the

OBR to be the most sustained undertaken in the last 100 years of

British history, barring the period of demobilisation after the world

wars. My plans reduced the share of national income taken by the state

from the unsustainable 45% we inherited to 40%. My spending plans

in this parliament will see it fall to 36.9% by the end of this decade.

The country will be spending no more than the country races in taxes. We

are achieving this while increasing resources for our NHS and schools,

will bring new infrastructure and increasing our security at home and

abroad. The OBR tells us the world has become more uncertain, so we

have two options, ignore the latest information and spend more than we

can afford, that is the mistake that was made a decade ago, all we can

live in the world as it is and cut our cloth accordingly. I say we act

now so we don't pay later. I am asking the Chief Secretary and the

Paymaster General to undertake a further drive for efficiency and

value for money will stop the aim is to save a further ?3.5 billion in

2019/20. Less than open 5% of Government spending, that is more

than achievable, while maintaining our protections -- 0.5%. We will

deliver sensible reforms to keep Britain living within its means. On

welfare, the Secretary of State for Work and Pensions set out changes

that will ensure that within the rising disability Budget support is

better targeted at those who need it most. This means the Budget will

still rise by more than ?1 billion and will be spending more in real

terms supporting disabled people than at any point under the last

Labour Government. On international aid, I am proud to be part of the

Government that was the first to honour Britain's commitment to spend

0.7% of national income on development. We will not spend more

on that, so we will save ?650 million in 2019/ 20. We will keep

public sector pensions sustainable. We reformed them in the last

Parliament, that will save over ?400 billion in the long-term. To ensure

the pensions remain sustainable, we have carried out the revaluation of

the discount rate and the public sector employer contributions will

rise as a result. This will not affect anyone's pension and will be

affordable within spending plans that are benefiting from the fiscal

windfall of low inflation. Each of these decisions are a demonstration

of our determination that the British economy will stay on course,

and we will not burden our children and grandchildren. This is a Budget

for the next generation. Let me now give the OBR's forecasts for the

debt and deficit. The combination of our action to reduce borrowing this

year along with the revisions to our nominal GDP driven by low inflation

have produced this result. In cash terms, the national debt is lower

than it was forecast to be in the autumn, but so is the nominal size

of our economy. We measure the fiscal target against debt to GDP,

so while debt as a percentage of GDP is above target and set to be higher

in 2015/16, competitive forecast the level of national debt is in cash ?9

billion lower. In the future, debt falls to 82.6% next year, then 81.3%

in 2017/18, then 79.9% a year after, and then it falls again to 77.2%,

and down again the year after the 74.7%. Let me turn to the forecast

for the deficit. When I became Chancellor, the deficit we inherited

was forecast to reach 11.1% of national income, the highest level

in the peacetime history of Britain. Thanks to our sustained action, it

is forecast to fall next year to just over a quarter of that, 2.9%.

In the following year, it falls to 1.9%. Then it falls again, 1%. In

cash terms in 2010 British borrowing was a totally unsustainable ?150

billion a year. This year, we are expected to borrow less than half of

that. The borrowing this year is lower than the OBR forecast in the

Autumn Statement. It continues to fall, but not by as much as before,

--. I know there has been concern that the challenging economic times

mean we would lose our surplus the following year. That would have been

the case if we had not taken further action today to control spending and

make savings. Because we have acted, in 2019/20, ... The surplus is set

to rise to ?11 billion the year after, 0.5% of GDP in both years. We

said we would take the action necessary to give Britain's family

's economic security, we said our country would not repeat the

mistakes of the past, and instead live within our means. We maintain

that commitment to long-term security in challenging times,

decisive action to chip achieve a ?10 billion surplus, we act now so

we do not pay later, we put the next generation first. In every Budget I

have given, action against tax avoidance and evasion has

contributed to the repair of our public finances and this Budget is

no different. In the red book we set out in detail the action we will

take to shut down disguised renumeration schemes, ensure UK tax

will be paid on UK property development, we changed the

treatment of free plays forum at gaming providers, we cap exempt

gains in the employee shareholder status. Public sector organisations

will have a new duty to ensure those working for them pay the correct tax

rather than giving a tax advantage to those who choose to contract

their work through personal service companies. Loans to participate as

will be taxed at 32.5% to prevent tax avoidance and will tighten rules

around the use of termination payments will stop termination

payments over ?30,000 are already subject to income tax. From 2018

they will also attract employer national insurance. Taken

altogether, these further steps will raise ?12 billion of for our country

over this Parliament. The party opposite talked about social justice

but left enormous loopholes in our tax system that people can exploit,

while the independent statistics confirm that under this Prime

Minister child poverty is down, pensioner poverty is down,

inequality is down, and the gender pay gap has never been smaller. The

distribution or analysis published today shows that the proportion of

welfare and public services going to the poorest has been protected. The

latest figures confirm the richest 1% paid 28% of all income tax

revenue, a higher proportion than in any single year of the last Labour

Government. Proof that we are all in this together. It is strange that we

cannot hear the Chancellor of the. I want to hear him, I am sure you must

do as well. I can report solid, steady growth, more jobs, lower

inflation, an economy on course for a surplus, and all done in a

fairway, a Britain prepared for whatever the world throws at us,

because we have stuck to our long-term economic plan. Credible

fiscal policy and effective monetary policy has only ever been part of

our plan. A crucial ingredient has also been the last thing structural

reforms needed to make our economy fit for the future. With new risks

on the horizon and with all Western countries looking for ways to

increase living standards, now is not the time to go easy on our

reforms, it is time to redouble our efforts. My budgets last year

delivered key improvements to productivity, like the

apprenticeship levy, lower corporation tax and national living

wage. My Budget this year sets out these further bold steps we need to

take. Fundamental reform of the business tax system. Loopholes

closed, reliefs reduced, but also the rates, and a huge boost for

small business and enterprise. A radical devolution of power so more

of the responsibility and rewards of economic growth are in the hands of

local communities. Major nuke and to the national infrastructure projects

of the future. Confronting the obstacles that stand in the way of

important improvements to education and our children's future. Backing

people who work hard and save. This Budget puts the next generation

first and I take each step in turn. In the last Parliament, I cut

corporation tax dramatically. I also introduced the diverted profits tax

to catch those trying to shift profits overseas. We went from one

of the least competitive business tax regimes to one of the most

competitive, and we raised much more money for our public services. The

financial Secretary and I are publishing a road map to makes our

system fit for the future, it will deliver a low tax regime that will

attract the multinational businesses we want to see in Britain but ensure

they pay taxes here. Something that never happened under a Labour

Government. It will level the playing field, which has been tilted

against our small firms. The approach we take is guided by the

best practice set out by the OECD, work which we called for, paid for,

and we will be among the first to implement. Some multinationals over

borrow in the UK to fund activities abroad and deduct the interest bill

is against the UK profits. From April next year we will restrict

interest deductibility for the largest companies at 30% of UK

earnings while making sure that firms whose activities justify

higher borrowing are protected with a group ratio rule. We are setting

new hybrid mismatch rules to stop the complex structures that are now

some multinationals to avoid paying any tax anywhere or to deduct the

same expenses in more than one country. Then we are going to

strengthen our withholding tax and world payments that are now some

firms to shift money to tax havens. We will modernise the way we treat

losses. We are going to allow firms to use them more flexibly in a way

that will help over 70,000 mostly British companies. With these new

flexible it is in place, we will do what other countries do and restrict

the maximum amount of profits that can be offset using past losses to

50%. It will only apply to the less than 1% of firms making profits over

?5 million. The existing rules for historic losses in the banking

sector will be tightened to 25%. We will maintain our plans to align

it dates more closely to when profits are earned. All of these

reforms to corporation tax will help create a modern tax code which

better reflects the reality of the global economy. Together, they raise

?9 billion of extra revenue for the Exchequer. But our policy is not to

raise taxes on business. Our policy is to lower taxes on business. So,

everything we collect from the largest firms who are trying to pay

no tax will be used to help millions of firms who pay their fair share of

tax. I can confirm today, we are going to reduce the rate of

corporation tax even further. That is the rate Britain's profit-making

companies large and small have two page of the evidence shows it is one

of the most distorted and unproductive taxes there is.

Corporation tax was 28% at the start of the last Parliament and we

reduced it to need 20% at the start of this one. Last summer I set out a

plan to cut it to 18% in the coming years. Today I am going further, and

it will be falling to 17%. Britain is blazing a trail. Let the rest of

the world catch up. Cutting corporation tax is only part of our

plan for the future. I also want to address the great unfairness which

many small businessmen and women feel when they compete against

companies on the internet. Site is like eBay and Amazon have provided

an incredible platform for many new small British start-ups. But there

has been a big rise in overseas suppliers storing goods in Britain

and selling them online without paying VAT. This unfairly undercut

British businesses both on the internet and on the high street.

Today I can announce we are taking action to stop it. That is the first

thing we do to help our small firms. Second, we are going to help the new

world of micro-entrepreneurs who sell services online or print out

their homes through the internet. Our tax system should be hoping

these people, so I am introducing two new tax-free allowances, each

worth ?1000 a year, for both trading and property income. There will be

no forms to fill in. It is a tax break for the digital age. At least

half a million people will benefit. On top of this comes the biggest tax

cut for business in this Budget. Business rates are the fixed cost

which weighs down on many small enterprises. At present, small

business rate relief is only permanently available to firms with

a rateable value of less than ?6,000. In the past I have been able

to double it for one year only. Today, I am more than doubling it,

and more than doubling it permanently. The new threshold for

small business rate relief will go up from ?6,000 to a maximum

threshold of ?15,000. I am also going to raise the threshold for the

higher rate to ?51,000. Let me explain what this means. From April

next year, 600,000 small businesses will pay no business rates at all.

Betis an and saving for them of up to nearly ?6,000 for ever. A further

quarter of a million businesses will see their rates cut. In total, half

of all British properties will see their business rates fall or be

abolished altogether. To support all ratepayers, including larger stores

who face tough competition and who employ so many people, it will

radically simplify the administration of business rates.

From 2020, we will switch the operating from the higher RPI to the

lower CPI. It is a permanent long-term saving for all businesses

in Britain. A Cornershop in Barnstaple will pay no business

rates. A typical hairdresser in Leeds will pay no business rates.

Atypical newsagents in Nuneaton will pay no business rates. This is a

Budget which gets rid of loopholes for multinationals and gets rid of

tax for small businesses. A ?7 billion tax cut for our nation of

shopkeepers. A tax system which says to the world, we are open for

business. This is a Conservative government which is on your side. Mr

Deputy Speaker... Just over a year ago, I reformed

residential stamp duty. We moved from a distorted slab system to a

much simpler slice system. As a result, 98% of home-buyers are

paying the same or less, and revenues from the expensive

properties have risen. The IMF welcomes the changes and suggested

we do the same to commercial property. So that is what we are

going to do. And in a way, it helps our small firms. At the moment, a

small firm and pay just ?1 more for a property and face a tax bill three

times as large. It makes no sense. So from now on, commercial stamp

duty will have a zero rate band on purchases up to ?150,000, 2% on the

next ?100,000, and a 5% top rate above ?250,000. There will also be a

new 2% right for those high-value releases with a net value above ?5

million. This new tax regime comes into effect from midnight tonight.

There are transitional rules for purchasers who have exchanged but

not completed before midnight. These reforms raise ?500 million a year.

While 9% will pay more, more than 90% will see their tax bills cut or

stay the same. For example if you buy a pub in the Midlands worth

?270,000, you would today pay more than ?8,000 in stamp duties. From

tomorrow, you will pay just ?3000 in stamp duty. It is a big tax cut for

small firms, all in a Budget which backs small business. Mr Deputy

Speaker, businesses also want a simpler tax system. I have asked

Angela Knight and John Whiting at the Office Of Tax Simplification to

ask what more we can do to improve the system. I am funding a dramatic

improvement in the service which HMRC offers to small firms. Many

retailers have complained bitterly to me about the complicity of the

Carbon reduction commitment. It is not a commitment, it is a tax. I

have decided to abolish it altogether, and to make good the

lost revenue, the climate change levy will be rising from 2019.

Energy intensive industries like steel remain completely protected.

And I am extending the climate change agreements affecting many

others. There will be ?750 million in auctions to back renewable

technologies. We are also going to help one of the most important and

valued industries in our United Kingdom, which has been severely

affected by global events. The oil and gas sector employs hundreds of

thousands of people in Scotland and around our country. In my Budget one

year ago I made major reductions to their taxes. But oil prices

continued to fall. So we need to act now for the long-term. I am today

cutting in half the supplementary charge on oil and gas from 20% to

10%, and I am effectively abolishing petroleum revenue tax. Backing this

key Scottish industry and supporting jobs... SHOUTING

ORDER! JUST RELAX! MORE TO COME! CHANCELLOR

OF THE XJ Both of these major tax cuts will be backdated so they are

effective from the 1st of January this year.

The Exchequer Secretary will work with the industry to give them our

full support. Mr Deputy Speaker, we are only able to provide this kind

of support to our oil and gas industry because of the broad

shoulders of the United Kingdom. None of this support would have been

remotely affordable if, in just eight days' time, Scotland had

broken away from the rest of the UK, as the nationalists wanted. Their

own audit of Scotland's public finances confirms that they would

have struggled from the start, with a fiscal crisis under the burden of

the highest by visit in the Western world. Thankfully, the Scottish

people decided that we are Better Together in one United Kingdom.

Mr Deputy Speaker, believing in our United Kingdom is not the same as

believing that every decision should be taken in Westminster and

Whitehall. The next step in this project plan to make Britain fit for

the future is on this subject. If you want immunity is to take

responsibility for local growth, they have to be able to reap awards.

This government is delivering the most radical devolution of power in

modern British history. We are devolving power to our nations. The

Scottish Secretary and I have agreed the new fiscal framework with the

Scottish Government. We are opening negotiations on a City Deal with

Edinburgh. We back the new V Museum in Dundee. In response to the

powerful case made to me by Ruth Davidson, we are providing new

community facilities for local people in Helensburgh and the Royal

Navy personnel nearby at Faslane. In Wales, we are committed to need

evolving new powers to the Assembly. Yesterday the Welsh Secretary and

the chief secretary signed a new ?1 billion deal for the Cardiff region.

We are opening discussion on a City Deal for Swansea and a growth deal

for north Wales so it is better connected to our Northern

Powerhouse. I have listen to the case made by Welsh Conservative

colleagues and I can announce today that from 2018, we are going to have

the price of the tolls on the Severn crossings. My right honourable

friend the Northern Ireland Secretary and I are working towards

the devolution of corporation tax. I also extending enhanced capital

allowances to the enterprise zone in Coleraine. And we will use over ?4

million from libel finds to help establish the first air Ambulance

Service for Northern Ireland. Mr Deputy Speaker, in this Budget we

make further advances in the devolution of power within England

as well. Less than two years ago I called for the election of strong

local mayors. Since then, local mayor is have been agreed for

several cities. Over half of the population of the Northern

Powerhouse will be able to elect a mayor accountable to them from next

year. We will have one for the West Midlands as well. Today, I can tell

the House that my right honourable friend the Justice Secretary and IR

transferring new powers over the criminal justice system to Greater

Manchester. This is the kind of progressive social policy which this

government is proud to pilot. I can also announce to the House today

that for the first time, we have reached agreement to establish new

elected mayors in our English counties and southern cities as

well. I want to thank the communities secretary and my

Treasury colleague Jim O'Neil for their superhuman efforts. We have

agreed a single, powerful East Anglia combined authority, headed up

by an elected mayor and almost ?1 billion of new investment. We have

also agreed a new west of England male authority. They will also have

almost ?1 billion invested locally. And also in Lincolnshire. North,

south, east and west, the devolution revolution is taking hold. Mr Deputy

Speaker, when I became Chancellor, 80% of local government funding came

in largely been fenced rants from central government. It was the

illusion of local democracy. By the end of this Parliament, 100% of

local government resources will come from local government - raised

locally, spent locally, invested locally. Our great capital city

wants to lead the way. My friend the Mayor of London and my honourable

friend the member for Richmond Park passionately argued for the

devolution of business rates. I can confirm today that the Greater

London Authority will move towards full retention of its business rates

from next April - three years early. And Michael Heseltine has accepted

our invitation to lead a Thames estuary growth commission. He will

report to me with his ideas next year. Mr Deputy Speaker, in every

international survey of our country, our failure for a generation to

build new housing and transport has been identified as a major problem.

But in this government we are the builders. And so today we are

setting out measures... To speed up our planning system - and prepare

the country for the arrival of five GE technology. My right honourable

friend the Business Secretary will be bringing forward our innovation

proposals. Because we make savings in day-to-day spending, we can

accelerate capital investment and increase it as a share of GDP. All

these things which a country focused on its long-term future should be

doing. Our new stamp duty rates on additional properties will come into

effect next month. I have listen to colleagues and the rates will apply

to larger investors as well. We will use receipts to support community

Housing trusts, including ?20 million to help young families onto

the housing ladder in the south-west of England. This is a brilliant idea

of my right honourable friend for Falmouth and many other colleagues.

When the south-west vote blue, their voice is heard loud here in

Westminster! And because under this government we are not prepared to

let people be left behind, I am also announcing a major new age of

support worth more than ?150 billion to support those who are homeless

and to reduce rough sleeping. Last year, Mr Deputy Speaker, I

established a new national in the commission to advise us all on the

big, long-term decisions we need to boost our productivity. -- national

infrastructure commission. I'm sure everybody in the House will want to

thank Andrew Dennis and his fellow commissioners for getting off to

such a strong start. They recommend stronger legs across

northern England, so we are giving the green light between -- to the

new line up in Manchester and Leeds, a four Lane M6 tattoo, and a new

tunnel road from Manchester to Sheffield. Mike on rubble friends

have told us not to neglect the North Pennines, so we will upgrade

those roads as well. I said we would build the Northern Powerhouse, we

are building the roads, we are laying the track, making it a

reality and rebalancing our country. I am also accepting the

recommendations on energy and on London transport, the Government

that is delivering Crossrail one will commission Crossrail two. The

commitment will be welcomed by the Leader of the Opposition, the member

for Islington. It could have been designed just for him, because it is

good for those who live in North London and heading south. Across

Britain, this rigid invest in infrastructure, from a more

resilient trend line in the South West to the crossings of Ipswich and

Lowestoft in the east that we promised, we are making our country

stronger. To respond to the increasingly strong whether it ends

the country is facing, I am proposing further substantial

increases in flood defences. I -- that would not be affordable within

existing budgets, so I will increase the standard rate of insurance

premium tax by 0.5% and commit all of the extra money to flood defence

spending. That is a 700 million boost to our resilience and flood

defences. The urgent review already under way will determine how the

money is best spent but we can get started now, I have had

representations from colleagues across the house, so we are giving

the go-ahead to the schemes for York, Leeds, Calder Valley, and

across Cumbria. We invest in our physical infrastructure and our

cultural infrastructure as well. I am supporting projects from the hall

for Cornwall in true rogue to money for Hull to make a success as city

of culture. Our cathedral repairs fund has been successful, I am

extending it with ?20 million, because the Conservative Party is a

broad church. In the 400th anniversary of the great

playwright's death, I have heard the sonnets from the Right Honourable

member and we commit to a new Shakespeare North Theatre. My on

rubble friend has proposed a new tax break for museums that develop

exhibitions and take them on tour, it is a great idea, we add that to

our collection today. We cut taxes for business, we devolve power,

develop infrastructure, the next part is to make -- to improve the

quality of our children's education. Schooling is the single most

important thing we can do to help any child succeed. It is the single

most important thing we can do to boost the long-term productivity of

our economy. Our productivity is no more, no less than the combined

talent and efforts of our people, so this is why education has been

central to our mission. We take these further steps. I can and

announced we are going to complete the task of setting schools free

from local education bureaucracy and we will do it in this Parliament. I

am providing extra funding so that by 2020 every primary and secondary

school in England will be in the process of becoming an academy. We

will focus on the performance of schools in the North, where results

have not been as strong as we would like. London's system has been

turned around, we can do the same in the Northern Powerhouse. I have

asked the outstanding Bradford headteacher to provide us with a

plan. We will look at teaching maths to 18 for all pupils. We will

introduce a fair national funding formula.

I am committing half ?1 billion to speed up its introduction. We will

consult and our objective is to get over 90% of the schools that will

benefit onto the new formula by the end of this Parliament. The

Conservative Government delivering on its promise of their funding for

our schools. Tomorrow, the Education Secretary will publish a white paper

setting out further improvements we will make to the quality of

education because we will put the next generation first. Doing the

right thing for the next generation is what this Government and this

Budget is about, no matter how difficult and how controversial it

is. You cannot have a long-term plan for the country unless you have a

long-term plan for our children's health care. Here are the facts that

we know. Five-year-old children are consuming their body weight in sugar

every year. Experts predict that within a generation over half of all

boys and 70% of girls could be overweight or obese. Another fact

that we almost, obesity drive 's disease, it increases the risk of

cancer, diabetes and heart disease, and it costs our economy ?27 billion

a year, more than half the NHS pay bill. We although one of the biggest

contributors to childhood obesity is sugary drinks. A can of cola has

nine teaspoons of sugar in it, some strings have as many as 13. That can

be more than double a child's recommended added sugar intake. Let

me give credit, many in the industry recognise there is a problem and

they have started to reformat their product. Robinsons removed added

sugar from many of their cordials and squashes, Sainsbury, Tesco and

the Co-op have committed to reducing sugar across their ranges, so

industry can act and I am sure it will. I am not prepared to look back

at my time here doing this job and say to my children's generation, I

am sorry, we knew there was a problem, we knew it caused disease,

but we ducked the decisions and did nothing. So I can announce we will

introduce a new sugar levy on the soft drinks industry. Let me

explain. It will be levied on the company 's, introduced in two years

to give companies plenty of space to change their product mix, it will be

assessed on the volume of the sugar sweetened drinks they produce or

import. There will be two bands, one for total sugar content above five

grams of 100 millilitres of. Pure fruit juices and milk -based drinks

will be excluded and will ensure the smallest producers are kept out of

scope. We will consult on implementation. We are introducing

the levy so they can reduce the sugar content, they can promote low

sugar or no sugar brands, they can take these perfectly reasonable

steps to help health. Some may choose to pass the price on to

consumers, that will be their decision. This would have an impact

on consumption. We understand that tax affects behaviour, so let's tax

the things we want to reduce, not the things we want to encourage. The

OBR estimate this will raise ?520 million, this is tied to the second

think we are going to do to help children's health and well-being, we

will use the money to double the amount of funding we dedicate to

sport in every primary school. For secondary schools, we will fund a

longer school day is for those who want to offer their pupils a wider

range of activities, including extra sport. It will be voluntary for

schools, compulsory for the pupils will stop --. The devolved

administrations will receive equivalent funding through the

Barnett formula and I hope they spend it on the next generation as

well. I am using the libel funds to help with children's hospital