The Budget 2017

:00:00. > :00:00.Lets see what happens in the next few hours. Let's join Huw Edwards

:00:07. > :00:16.for our special programme. It is the first budget for Philip

:00:17. > :00:55.Hammond, as the government takes and welcome to our live coverage

:00:56. > :00:59.of The Budget. It's Philip Hammond's

:01:00. > :01:02.first as Chancellor and it's also likely

:01:03. > :01:04.to be his only Spring Budget because after today the Budget

:01:05. > :01:07.will move to the Autumn. And it's the last Budget

:01:08. > :01:08.before the Government triggers Article 50

:01:09. > :01:11.and starts the formal process of leaving the EU,

:01:12. > :01:18.possibly as early as next week. A few minutes ago the Chancellor

:01:19. > :01:20.emerged, Red Box in hand, from his official residence,

:01:21. > :01:27.Number 11 Downing Street, alongside him the Treasury ministerial team,

:01:28. > :01:29.including his number 2, David Gauke, who we'll be speaking

:01:30. > :01:44.to a little later on. The red box was made for David

:01:45. > :01:48.Osborne in 2011. The Chancellor posing for the traditional photo for

:01:49. > :01:51.the ranks of the photographs in Downing Street on Budget Day and

:01:52. > :01:56.later he will be making to the House of Commons and he is expected to get

:01:57. > :02:01.to the Despatch Box in around an hour's time because we have a little

:02:02. > :02:03.bit of talking to do and then we'll have Prime Minister's Questions, as

:02:04. > :02:09.usual on a Wednesday and then the Chancellor will get to his feet.

:02:10. > :02:11.Stay with us as we'll have all the Budget detail and reaction.

:02:12. > :02:21.I'm outside Parliament where the focus recently has been on Britain's

:02:22. > :02:24.future outside the EU I will be getting reactions from politicians

:02:25. > :02:30.across the political spectrum. I'm in Hull the UK City of Culture for

:02:31. > :02:34.2017 and I'll be getting reaction from businesses, large and small to

:02:35. > :02:39.the Chancellor's statement. What does the Budget mean to you and your

:02:40. > :02:49.family's finances? I will respond to your e-mails, text and tweets about

:02:50. > :02:51.the measures announced today. Plenty of voices, not just from Westminster

:02:52. > :02:54.but beyond Westminster which is crucial on a day like today.

:02:55. > :02:57.To help me make sense of it all, we're joined by our political

:02:58. > :02:59.editor, Laura Kuenssberg, our economics editor, Kamal Ahmed,

:03:00. > :03:09.They'll all be providing plenty of thoughts on social

:03:10. > :03:11.media as things happen, if you want to join

:03:12. > :03:18.the twitter conversation, use the hashtag #Budget2017.

:03:19. > :03:23.Use the hashtag and the comments can go into the same area and you can

:03:24. > :03:27.e-mail us as well: We'll try and put some

:03:28. > :03:30.of your tweets and emails to our experts and guests

:03:31. > :03:36.during the programme. So it's Chancellor,

:03:37. > :03:38.Philip Hammond's, big day and the Treasury released these

:03:39. > :03:40.images of Mr Hammond hard at work last night, putting

:03:41. > :03:49.the finishing touches to his speech before it's

:03:50. > :03:52.locked up in the Red Box. As expected, he's facing plenty

:03:53. > :04:01.of demands from the Opposition to increase spending

:04:02. > :04:04.in quite a few ares - He's had increased tax

:04:05. > :04:09.receipts recently. So I'm not asking him to go out

:04:10. > :04:10.on a huge spending spree. I'm asking him to tackle

:04:11. > :04:13.the crisis that's here now. It's all well and good saying you're

:04:14. > :04:15.saving money for later There is a crisis in our NHS

:04:16. > :04:19.at the moment, there's a He's got top understand

:04:20. > :04:25.what people are going through. John McDonnell there. He will talk

:04:26. > :04:29.to us again later. He will probably join us in the studio to give his

:04:30. > :04:33.response. Laura, can I turn to you. The content of any Budget is

:04:34. > :04:36.interesting. Any Budget is important but in such a turbulent and

:04:37. > :04:41.uncertain political time, really the context is - we have never seen

:04:42. > :04:46.anything like it. Absolutely not. When Philip Hammond steps out of the

:04:47. > :04:50.shiny black door of Number 11 this morning what has been on his smind

:04:51. > :04:53.that the country is stepping into an uncertain future, probably the most

:04:54. > :04:57.uncertain pattern any Chancellor has had to deal with for a very, very

:04:58. > :05:00.long time. I think today, therefore, we won't hear a very palatable

:05:01. > :05:04.message from him, really. There are going to be spending cuts and we

:05:05. > :05:09.expect some tax rises, too. Sure, the picture is likely to look a bit

:05:10. > :05:12.better than it did since the Autumn Statement, the last big event from

:05:13. > :05:17.the Chancellor but he is not prone to what he calls "lurches of

:05:18. > :05:20.sentiment", kind of careering from one thing to another, saying

:05:21. > :05:25.everything is fine and therefore I can splash the cash, that's not what

:05:26. > :05:29.we are going to see. There's a trio of tasks he has to achieve to keep

:05:30. > :05:33.his his and Theresa May's agenda. First, showing he is committed to

:05:34. > :05:36.balancing the books in a long term albeit at a slower rate than had

:05:37. > :05:41.been predicted. Second of all, always important on a Budget day,

:05:42. > :05:48.try to do that without any big political blunder. That's always at

:05:49. > :05:55.the back of every Chancellor's mind. Think last year and George Osborne

:05:56. > :05:57.made a big mistake and I think talking about solving some long-term

:05:58. > :06:01.problems that the country faces. Whether that's social care, we

:06:02. > :06:05.expect an announcement of a long-term review and additional cash

:06:06. > :06:09.now. But also things the Treasury are interested in, how do we make

:06:10. > :06:13.the tax system work better, for example, how do we confront the

:06:14. > :06:16.changes in technology? He has to deal with short-term pressures but

:06:17. > :06:20.he will provide clues to a long-term vision at a time which is really

:06:21. > :06:25.uncertain. . I think it is fair to say some of his colleagues didn't

:06:26. > :06:30.like the fact he used a phrase like "a roller coaster ride ahead of us",

:06:31. > :06:33.he used that last year. Are we likely to get that signal in those

:06:34. > :06:37.terms? I think the tone will certainly be, shall we say, very,

:06:38. > :06:42.very careful. Philip Hammond is not prone to behave in a way some of his

:06:43. > :06:48.Cabinet colleagues do, with the hints of a buck inneering future,

:06:49. > :06:53.Brexit Britain out, promising a land of milk and hobby. He is a caution

:06:54. > :06:57.politician in anyway case but it is no secret that the Treasury is at

:06:58. > :07:00.the concerned end of the spectrum around Whitehall at the potential

:07:01. > :07:04.impact of us leaving the European Union. That is why, rather than

:07:05. > :07:09.using a little bit of the headroom that he's got stored up, he's

:07:10. > :07:12.basically going to keep that back in case there are big bumps in the road

:07:13. > :07:17.as we head towards leaving the European Union. Remember, it's not

:07:18. > :07:20.the case that he suddenly has tens of billions sitting around in a bank

:07:21. > :07:23.account. It's that the country is predicted to be borrowing less.

:07:24. > :07:28.Therefore, there has been pressure on him to say - flash the cash now,

:07:29. > :07:31.get on with it, please a few more people but he's not going to do

:07:32. > :07:35.that, I don't think. That leads me to Kamal. That's the context. When

:07:36. > :07:40.he gets to the despatch box, today, what is the economic landscape we

:07:41. > :07:46.should be thinking of? Absolutely. I think the two big things to always

:07:47. > :07:50.look at, as Laura says, over the Budget, are borrowing and growth.

:07:51. > :07:56.Those are the two big issues. So so let's look back first of all on the

:07:57. > :08:02.borrowing numbers. If we go back to the November and the predictions in

:08:03. > :08:04.the Autumn Statement, this was the time of what you might describe as

:08:05. > :08:07."peak bloom." Most economic forecasters thought at this stage

:08:08. > :08:08.that the economy could be seeing real headwinds because of the

:08:09. > :08:11.uncertainty around Brexit. that the economy could be seeing

:08:12. > :08:12.real headwinds because of the uncertainty around Brexit. The

:08:13. > :08:14.Office for Budget Responsibility, the Government's official economic

:08:15. > :08:18.watchdog, predicted, last November, that this would be what our

:08:19. > :08:24.borrowing looked like over the next five years. So 2016-17, you can

:08:25. > :08:31.seeiour yoking at around ?68 billion a year, falling every year, down to

:08:32. > :08:35.about ?20 billion in 2020-21, but, not hitting that idea of balancing

:08:36. > :08:40.the books until sometime after that date, into the next Parliament.

:08:41. > :08:45.Despite it being, as Laura says, a key Government pledge.

:08:46. > :08:50.Since then the economic news is cheerier and things are looking

:08:51. > :08:54.better and here are the predictions for what borrowing may look like,

:08:55. > :08:57.given the slightly higher tax receipts which means the Government

:08:58. > :09:02.has a little more headroom on borrowing, this are numbers from the

:09:03. > :09:06.Resolution Foundation. They suggest by 2021, the Government may

:09:07. > :09:12.understood its its target by about ?29 billion. So, just as I say, it

:09:13. > :09:16.is not money in a bank account that he can take out and stick into the

:09:17. > :09:17.NHS or whatever but it means slightedly less borrowing.

:09:18. > :09:18.he can take out and stick into the NHS or whatever but it

:09:19. > :09:22.slightedly less borrowing. So that's borrow, you mentioned

:09:23. > :09:26.growth as well. Tell us about that? Again, if we go back to what was

:09:27. > :09:29.predicted last November, the Office for Budget Responsibility said

:09:30. > :09:33.growth for this year would be a very cautious and pretty miserable,

:09:34. > :09:38.frankly, 1.4%. But since then we have had, again this better economic

:09:39. > :09:42.news. The consumer has been more resilient and kept spending. The

:09:43. > :09:46.Bank of England, you, a couple of months ago suggested, or a month

:09:47. > :09:53.ago, suggested the growth this year would be 2%. A much more robust

:09:54. > :09:56.figure and I'm sure today the OBR will upgrade that growth forecast,

:09:57. > :10:00.better news for Philip Hammond as he stands up to deliver the Budget but

:10:01. > :10:04.as important is what will happen after that? Is this pain cancelled

:10:05. > :10:09.or delayed? I think the OBR will suggest it is pain delayed possibly

:10:10. > :10:14.until next year, possibly, 2018. It originally estimated that in 2018

:10:15. > :10:21.growth would be around 1.7%. Lower than the Bank of England's growth

:10:22. > :10:26.forecast for this year. And the Bath has said in growth for 2018, it

:10:27. > :10:31.would blow in growth compared to this year. So it is likely that in

:10:32. > :10:47.growth - these are the two economic forecasters, the Bank of England and

:10:48. > :11:03.OBR, will say there is likely to be a slowing in growth in 2018, of

:11:04. > :11:04.course when we will be in the teeth of the Brexit negotiations. #7

:11:05. > :11:04.forecasters, the Bank of England and OBR, will

:11:05. > :11:05.course when we will be in the teeth of the Brexit negotiations. #7 I'm

:11:06. > :11:08.wondering, given the traditional focus on Budget Day is to do with

:11:09. > :11:13.tax measures and other benefits, what is he likely to do there? Well,

:11:14. > :11:16.I think what is easy to forget on Budget Day, we have had previous

:11:17. > :11:18.Budgets and there are changes coming down the road which will be

:11:19. > :11:21.challenging for some of the groups that the Government says it wants to

:11:22. > :11:23.help, the just about managing, an economy that works for everyone.

:11:24. > :11:26.Let's look at what the Government has already announced in terms of

:11:27. > :11:28.what might be described as tax give-aways, to help some of the

:11:29. > :11:31.groups it wants to help. The tax-free personal allowance is going

:11:32. > :11:40.up to ?11,500. We'll probably see some more moves on that. That can be

:11:41. > :11:47.seen as a tax cut particularly for those on higher numbers. And they've

:11:48. > :11:50.raised the threshold to ?45,000 and it maybe easier for people to save

:11:51. > :11:54.what little money they have. But on the other side there is some of the

:11:55. > :11:56.pain that we mustn't forget. This is still a situation where the

:11:57. > :12:02.Government is constraining spending, it is not adding to spending. And if

:12:03. > :12:06.we look at some of the welfare changes already in place, we mustn't

:12:07. > :12:11.forget there is already the cut in working-age benefit which is still

:12:12. > :12:15.going through the system. The public sector pay freeze is still there at

:12:16. > :12:18.1%, despite inflation going up. What is called the Employment Support

:12:19. > :12:23.Allowance, an allowance for people who are ill or disabled going back

:12:24. > :12:29.into work. That is being cut back as well. As are child tax credits. So I

:12:30. > :12:33.think one of the big messages from the Chancellor today, is that, yes,

:12:34. > :12:38.things are looking a little better, possibly only in the short-term but

:12:39. > :12:41.still that drive towards balancing the books via austerity, is still

:12:42. > :12:51.very much front and central of the Government project. Plenty for us to

:12:52. > :12:54.think about. Simon you have been busy this week in Geneva, I'm

:12:55. > :12:58.wondering what is the business focus for you today? Businesses have been

:12:59. > :13:01.on a journey with this Government. When Theresa May arrived she came

:13:02. > :13:04.out of the traps early warning businesses - you better create a

:13:05. > :13:09.fair economy that works for everyone, if you don't I will step N

:13:10. > :13:18.it scared the horses a bit. -- step in. But the Chancellor needs

:13:19. > :13:22.business. The economy is made up of a few things, consumer spending, who

:13:23. > :13:25.have been keeping the economy afloat single handedly, and of Government

:13:26. > :13:28.spending which we know is going to be cut and it is business spending.

:13:29. > :13:34.He is going to want to try to stimulate that. I expect this Budget

:13:35. > :13:39.to dove tail in the with industrial strategy we heard earlier in the

:13:40. > :13:44.year to give people incentives to spend money, to take on new workers,

:13:45. > :13:48.train them, invest in new plants. For smaller businesses, it is all

:13:49. > :13:50.about business rates. Now three-quart earnings, two-thirds of

:13:51. > :13:54.business also see their rates stay the same or fall for some in certain

:13:55. > :14:01.areas of country, particularly snout east they face sharp prize --

:14:02. > :14:04.particularly in the south-east. The Federation of Small Businesses say

:14:05. > :14:10.there are rises of up to 300%. I expect to see a bit of money top

:14:11. > :14:13.soften the edges of that. But it'll only soften the edges. These letters

:14:14. > :14:17.have been written, calculated they are on their way out the door from

:14:18. > :14:23.the local authorities. There will not be the scope a massive redrawing

:14:24. > :14:27.of the business rates. Small businesses under the cosh with the

:14:28. > :14:30.living wage. And if we do get this big change in self-employment that.

:14:31. > :14:39.Will be big. It'll be interesting to see whether we get the changes today

:14:40. > :14:43.or whether he nods to a future consultation. Many self-employed

:14:44. > :14:48.people pay less national insurance for people who are self-employed.

:14:49. > :14:53.Troublesome if he does that, some may remember the 2015 Tory manifesto

:14:54. > :14:56.pledge, not to raise, VAT, income tax and national insurance. But as

:14:57. > :15:00.Simon is hinting, there is appetite in the Treasury for a whole sale

:15:01. > :15:05.review of how this whole system works, which includes things like

:15:06. > :15:08.big online retailers getting off relatively scot-free compared to

:15:09. > :15:12.more traditional retailers in terms of taxation in the high street. The

:15:13. > :15:16.number from the OBR last fr last year, suggested the Government could

:15:17. > :15:20.be losing about ?3.5 billion a year in taxes because of the people's

:15:21. > :15:24.move on to self-employment and the gig economy, it is undermining the

:15:25. > :15:28.tax base where Philip Hammond has a real problem.

:15:29. > :15:34.Lead's pause for a second because we are here on Budget day and this is

:15:35. > :15:38.the focus our Westminster but we are getting reports that four people

:15:39. > :15:43.have been injured in a stabbing attack in the West Midlands. Police

:15:44. > :15:47.are telling of this. West Midlands Ambulance Service, I am being told,

:15:48. > :15:57.saying they are at the scene of a serious incident in the Maryhill

:15:58. > :16:04.area of Wolverhampton. -- Merry Hill area. It is being reported four

:16:05. > :16:07.people being injured after a stabbing in the West Midlands and we

:16:08. > :16:10.will keep you in touch with everything that is going on with

:16:11. > :16:15.that as it develops on the BBC News Channel and also developments on the

:16:16. > :16:18.BBC News Channel. We are focusing on Budget day and as Philip Hammond has

:16:19. > :16:21.already made his way to the House of Commons to get ready for the speech,

:16:22. > :16:24.we will have prime ministers questions in just under 15 minutes.

:16:25. > :16:28.Lots of reaction throughout the day and now we join Jane Parliament.

:16:29. > :16:38.But to Parliament and in a moment I will look at what Philip Hammond

:16:39. > :16:41.might have in store with Lord Lamont and Chris Leslie but as you have

:16:42. > :16:45.been reflecting on everything we're going to hear against 30 PM -- from

:16:46. > :16:50.4:30pm is against the backdrop of the referendum, Britain's decision

:16:51. > :16:51.to leave the EU. Before I talk to my guess, let's remind ourselves how

:16:52. > :16:54.the economy has led since that vote. The British people have spoken

:16:55. > :16:58.and the answer is - we're out. The Bank of England will not

:16:59. > :17:01.hesitate to take additional measures, as required,

:17:02. > :17:05.as markets adjust. If you're just managing,

:17:06. > :17:09.I want to address you directly. I've been here 25 years

:17:10. > :17:48.and I hope it's going to be We will pursue a bold and ambitious

:17:49. > :18:37.free trade agreement The industrial strategy that

:18:38. > :18:45.we've launched today sets I think Brexit is going

:18:46. > :19:13.to be a wonderful thing. So that is where we are today, the

:19:14. > :19:16.backdrop to what we will hear this lunchtime. Let's discuss Philip

:19:17. > :19:17.Hammond's options. Joining me now is the former

:19:18. > :19:19.Conservative Chancellor, Lord Lamont, and the former

:19:20. > :19:27.Shadow Treasury Minister, Welcome to both of you. The tone of

:19:28. > :19:31.this is going to be so interesting, Lord Lamont. We think things are a

:19:32. > :19:37.little more rosy economically but because of Brexit, he's got to be

:19:38. > :19:41.very cautious, hasn't it? I think that's right. I think it is

:19:42. > :19:44.important he emphasises the opportunities as well as the

:19:45. > :19:48.challenges but I think there are two things it has to do because of

:19:49. > :19:52.Brexit. One is to keep a little bit back. Some people are saying tax

:19:53. > :19:57.revenues are better but I think actually, he would be very wise to

:19:58. > :20:01.keep a bit back just in case there are schools in financial markets

:20:02. > :20:06.later. Secondly, in this Budget and in every other one that he does, the

:20:07. > :20:10.emphasis has to be on making Britain competitive. This is going to be a

:20:11. > :20:16.challenge for Britain outside the EU and we have do have everything

:20:17. > :20:21.competitive, our costs, our tax rates, our degree of regulation, all

:20:22. > :20:24.that. Those are the two themes, being competitive and actually

:20:25. > :20:27.holding something in reserve. But you say that is the case for every

:20:28. > :20:31.Budget but we are in uncharted territory. This is so different

:20:32. > :20:35.because by definition, no one really knows what is coming down the track.

:20:36. > :20:40.That's why I've said what I did! Chris Leslie, your thoughts on the

:20:41. > :20:44.balance he has to strike between a degree of optimism, as Lord Lamont

:20:45. > :20:48.says, but actually being cautious. Everyone is using that word this

:20:49. > :20:51.morning. When you hear Lord Lamont saying it could be a challenge, for

:20:52. > :20:59.that read there is a Harry Kane potentially on the horizon -- there

:21:00. > :21:02.is a hurricane potentially on the horizon for the UK economy. Brexit

:21:03. > :21:07.will dominate, lots of people talk about taxes here or there, spending

:21:08. > :21:09.here or there but that storm, I personally think the government is

:21:10. > :21:14.actively heading towards it because of its decision not to try to

:21:15. > :21:17.salvage single market membership, is already affecting consumers because

:21:18. > :21:21.sterling has fallen quite considerably, and inflation is

:21:22. > :21:25.starting to head upwards and we're already seeing consumer spending

:21:26. > :21:30.power begin to go on the wane. Retail sales down very much in the

:21:31. > :21:35.last months. So where is the engine of the economy going to come from as

:21:36. > :21:41.we head into this storm? For me, that is a serious problem. Where is

:21:42. > :21:46.the engine? First of all, I don't think it is inevitable there will be

:21:47. > :21:51.a storm or a hurricane coming down. Provided we can get, for most of the

:21:52. > :21:55.UK economy, tariff free access and a free trade deal, it will be just as

:21:56. > :21:58.good as the single market. You know, I think all of this myth about the

:21:59. > :22:02.single market, that it is some kind of Chinese garden with a large wall

:22:03. > :22:07.around it and we have do have a key to sell things in it, you know, the

:22:08. > :22:11.top three partners, trading wise, of the EU have no special trade

:22:12. > :22:15.arrangements with the EU. The idea we couldn't trade with them without

:22:16. > :22:18.a trade agreement is an illusion, it's completely wrong. But I think

:22:19. > :22:24.there is a very good chance of having a trade agreement and that is

:22:25. > :22:26.what the government... It's just nonsense to harp on about membership

:22:27. > :22:29.of the single market, which during the referendum, people advocating

:22:30. > :22:33.for Gabi Mayne said it would not make any sense if we were outside

:22:34. > :22:36.the EU to be part of it. On the other point you raised about the

:22:37. > :22:40.economy, so far, the economy has been remarkably resilient.

:22:41. > :22:45.Inflation, as Chris has said, has risen a bit but it is rising even

:22:46. > :22:51.higher in Germany than it is here. It is not high by historical

:22:52. > :22:53.standards. I don't think it is inevitable... Nothing is inevitable,

:22:54. > :22:56.if the government does the right thing and tries to get, well, we had

:22:57. > :23:01.better get a free trade agreement with Europe because without that, it

:23:02. > :23:05.is not just the service sector which will suffer, it will be goods and

:23:06. > :23:09.services, all of those companies, like Nissan, who have 5 million

:23:10. > :23:15.parts per day, they have to get from this warehouse of the EU, they only

:23:16. > :23:19.keep half a day's infantry on site. If you have friction in those goods

:23:20. > :23:24.and services, that trade, we are going to have a real problem for our

:23:25. > :23:28.business model in the UK, and so, we have do, I think, get the free trade

:23:29. > :23:32.agreement but if we don't, not only will we have big tariffs and

:23:33. > :23:37.potentially for components coming in, but also want the goods we want

:23:38. > :23:42.to sell worldwide. So our exports potentially will be inhibited and so

:23:43. > :23:45.I worry very much about where the living standards and the consumer

:23:46. > :23:50.spending power is going to come from when things get more expensive and I

:23:51. > :23:54.worry about the storm on the horizon with the trade issue, which could be

:23:55. > :23:58.really severely impaired. Gentlemen, we have to leave it there. We will

:23:59. > :24:01.find out in the next few hours. Chris Leslie and Lord Lamont, thank

:24:02. > :24:04.you for being with us and more reaction when we have heard from

:24:05. > :24:09.Philip Hammond outside Parliament. For now, back to you.

:24:10. > :24:14.Thanks to you and your guests. Reaction beyond Westminster as well.

:24:15. > :24:16.We'll be making several visits to Hull today,

:24:17. > :24:19.where Jo Coburn is with a range of guests to talk about the main

:24:20. > :24:26.Yes, I'm at a busy distribution centre which employs about 850

:24:27. > :24:30.people in Hull. It is a family firm, has been in the family for four

:24:31. > :24:34.generations and is a success story in Hull but that does not mask the

:24:35. > :24:38.fact it still has some of the most deprived districts in the whole

:24:39. > :24:43.country. A man who is hoping to reverse that is the guy in charge of

:24:44. > :24:47.the city of culture in Hull, Martin Greene, the director. What do you

:24:48. > :24:51.want the Chancellor to do for you? I think we are proving more than ever

:24:52. > :24:56.that cultural investment in cities reaps investment and economic

:24:57. > :25:00.impact. To continue that process that we have seen, particularly in

:25:01. > :25:05.the Northern Powerhouse in the last few years, of seeing cultural

:25:06. > :25:08.investment is good investment for businesses and the Digital economy

:25:09. > :25:12.would be a good thing. The fight Hull voted to leave the EU, how will

:25:13. > :25:18.that impact what you are trying to do as the director of City Of

:25:19. > :25:25.Culture? I don't think it impacts on what we do here. With the European

:25:26. > :25:28.eye on it, you would like to see the money that currently comes into the

:25:29. > :25:31.arts replaced but we have seen visitors going to America are going

:25:32. > :25:34.down because they are not sure if they want to be there. It would be

:25:35. > :25:38.more difficult for UK visitors to go to Europe so we will probably see a

:25:39. > :25:41.rise in tourism at least which again, cultural investment into

:25:42. > :25:47.cities will attract visitors which brings business in and money in.

:25:48. > :25:51.Martin Green, thank you very much. Let's get a feel for local

:25:52. > :25:54.businesses in Hull want to hear from the Chancellor. He said there are

:25:55. > :26:02.going be no big surprises and no gimmicks in the Budget. Anita is

:26:03. > :26:10.from Pays Communications. What is your biggest concern? What I would

:26:11. > :26:15.like to see is fewer increases in corporation tax. We know it is

:26:16. > :26:19.planning to reduce corporation tax by 2020 but it would be nice if they

:26:20. > :26:21.could introduce something special for small businesses, some kind of

:26:22. > :26:26.relief up to a certain threshold of profit would be very welcome. What

:26:27. > :26:30.about you? Tell us about your business. We supply military games

:26:31. > :26:34.and events internationally, so different to the average small

:26:35. > :26:38.business. Where do you reach? You have some clients here. We have some

:26:39. > :26:46.local clients but most of them are outside the UK Borders and we do a

:26:47. > :26:49.lot of work in Australia and America is massive at the moment. In terms

:26:50. > :26:52.of Brexit for you, will it have any impact on the business? It impacts

:26:53. > :26:56.our imports because they have gone up in price from Europe, so things

:26:57. > :26:59.like paper and toner. In terms of the export market, because we don't

:27:00. > :27:03.translate anything into French, Dutch and German yet, it has not

:27:04. > :27:10.impacted the export market into Europe at all. What impact will the

:27:11. > :27:13.City of Culture have an hole? We already seeing a real positive

:27:14. > :27:16.benefit around the city, people coming to the city for the first

:27:17. > :27:19.time and they are impressed and they say we will come back. We are two

:27:20. > :27:23.and a half months in and so far, so good. Business rates, one of the

:27:24. > :27:26.issues that has been discussed and no doubt will be talked about by the

:27:27. > :27:31.Chancellor is the business rates re-evaluation. Has it affected you?

:27:32. > :27:34.Fortunately not because we are eligible for small business rate

:27:35. > :27:37.relief but we were looking at expanding the office premises and

:27:38. > :27:41.the next-door office is free but if we moved into it we would fall into

:27:42. > :27:45.the small business rate and we can't afford it at all. In terms of

:27:46. > :27:49.developing skills, how important is that if you are looking at the

:27:50. > :27:53.future? Apprenticeships and entrepreneurs. Extremely important.

:27:54. > :27:57.This region, like many in the UK, struggles to attract and retain

:27:58. > :28:01.talent. If we can grow our talent and retain it in the region, and

:28:02. > :28:05.there are a lot of initiatives with partners across the region to help

:28:06. > :28:09.do that. Thank you for joining us. You will be watching the statement

:28:10. > :28:13.with the rest of us, of course. Although Philip Hammond, Spreadsheet

:28:14. > :28:16.Phil, as they call him, has that there are not going to be any bigger

:28:17. > :28:19.voice, we know or suspect there will be an injection of cash into things

:28:20. > :28:22.like social care and we've talked about business rates. But we will

:28:23. > :28:26.also find out how he plans to pay for some of the things. Let's find

:28:27. > :28:31.out some more with personal finance expert Ruth Alexander.

:28:32. > :28:36.Yes, we are expecting to see some tax rises from the Chancellor. It is

:28:37. > :28:44.rumoured national insurance contributions for self-employed

:28:45. > :28:46.people could go up. At the moment, they pay about 9% on earnings of

:28:47. > :28:49.just over ?8,000. That compares to employed people who pay 12%. We

:28:50. > :28:53.could possibly see, there is speculation we will see a 3% rise on

:28:54. > :28:57.national insurance contributions for the self-employed. Also, we could

:28:58. > :29:01.see alcohol and tobacco duties going up. Maybe there will be a new tax on

:29:02. > :29:04.e-cigarettes. If you have any questions about what you do in the

:29:05. > :29:13.Budget, you can contact us in lots of ways, text 61124, e-mail

:29:14. > :29:20.HaveYourSay@bbc.co.uk or tweet. Back to London.

:29:21. > :29:24.Thanks to the team in Hull because we will be back there later to get

:29:25. > :29:28.lots of reaction to the speech itself.

:29:29. > :29:30.You can also take advantage of the BBC's range

:29:31. > :29:32.of expert analysis, and all the latest Budget

:29:33. > :29:35.news on the BBC website - bbc.co.uk/budget.

:29:36. > :29:38.And later today, there will be a calculator on the site

:29:39. > :29:42.where you can work out the impact on your household's finances.

:29:43. > :29:49.It's heading towards midday here at Westminster on Budget Day.

:29:50. > :29:55.A magnificent sight, on the banks of the Thames, Parliament on Budget

:29:56. > :29:57.day. Very soon, we'll be

:29:58. > :29:59.in the House of Commons for Prime Minister's Questions,

:30:00. > :30:10.with the Chancellor's Let's take a peek inside the

:30:11. > :30:16.chamber. We have a session of departmental questions and I'm

:30:17. > :30:19.delighted to sell you today that it is questions to the Secretary of

:30:20. > :30:23.State for Wales. It doesn't get better than that as far as I'm

:30:24. > :30:29.concerned! And I hope the speaker is very donors with his time allocation

:30:30. > :30:32.-- generous with his time occasion. The Secretary of State for Wales

:30:33. > :30:35.just taking questions there before the speaker calls for the Prime

:30:36. > :30:39.Minister to take questions. Of course, the Chancellor is in place

:30:40. > :30:41.already, ready for the Budget statement. We will keep a close eye

:30:42. > :30:52.on the house. Is Laura, the Prime Minister has

:30:53. > :30:57.already said from scam number Ten what she expects the themes to be?

:30:58. > :31:02.Yes, she told the Cabinet this morning there would be "A strongp

:31:03. > :31:14.hand on fiscal tiller." But it would also "Put the wheels in motion for

:31:15. > :31:20.future growth and prosperity." The mixed metaphors are not mine. It

:31:21. > :31:23.shows they are trying to balance the books but equip the economy for a

:31:24. > :31:27.future outside the European Union, make it more dynamic and

:31:28. > :31:31.competitive. In the Autumn Statement we saw investment in infrastructure,

:31:32. > :31:34.roads, rails, if you like you have had the bricks and mortar in the

:31:35. > :31:38.autumn, today we might see the human capital. Skills, schools, how we

:31:39. > :31:43.actually look like an economy that's really gunning along, not in

:31:44. > :31:44.2016-17, 18, but much further ahead. Let's join the Prime Minister for

:31:45. > :31:52.question time. Thank you, Mr Speaker, I'm sure

:31:53. > :31:58.members across the whole House will wish to join me in marking

:31:59. > :32:01.International Women's Day as we celebrate the social, economic,

:32:02. > :32:06.cultural and political achievements of women, both here and around the

:32:07. > :32:11.world. But we also redouble our efforts to tackle the problems that

:32:12. > :32:13.women all toop often still face. Mr Speaker, this morning, I had

:32:14. > :32:18.meetings with ministerial colleagues and others N addition to my duties

:32:19. > :32:22.in this House, I shall have further such meetings later today. -- in

:32:23. > :32:25.addition. Can I join the Prime Minister in celebrating

:32:26. > :32:29.International Women's Day. Since 2010, Conservatives in Government

:32:30. > :32:33.have a proud record of protecting and supporting both those at risk

:32:34. > :32:38.and the victims of domestic violence and abuse. I saw this myself when I

:32:39. > :32:44.joined my local police and I would like to thank them for the difficult

:32:45. > :32:49.job they do but even as far as too many women are still at risk and are

:32:50. > :32:54.still suffering. What more account Prime Minister do to tackle this

:32:55. > :32:58.abhorrent crime? My honourable friend raises a very serious issue,

:32:59. > :33:01.one in which I have taken a particular personal interest and I

:33:02. > :33:05.attach very great importance to this issue. Tackling domestic violence

:33:06. > :33:09.and abuse is a key priority for the Government. And what we have done

:33:10. > :33:14.already in Government, I think, has the potential to transform the way

:33:15. > :33:17.in which we think and tackle these terrible crimes when they take

:33:18. > :33:21.place. We've already committed to bringing forward new legislation and

:33:22. > :33:24.today, I have confirmed an additional ?20 million to support

:33:25. > :33:29.organisations working to tackle domestic violence and abuse. This

:33:30. > :33:36.means the total funding available for our our strategy will be over

:33:37. > :33:42.?100 million this Parliament. THE SPEAKER: Jeremy Corbyn Thank

:33:43. > :33:47.you, Mr Speaker. Thank you, very much, Mr Speaker, could I start by

:33:48. > :33:52.wishing all women a very happy International Women's Day today. And

:33:53. > :33:56.I'm very proud that the Labour Party has more women MPs than all other

:33:57. > :34:09.other parties combined in this House. And a Shadow Cabinet of which

:34:10. > :34:16.half the members are women. A month ago go, Mr Speaker, I raised the

:34:17. > :34:19.question of the leaked texts between the leader of Surrey council and

:34:20. > :34:25.Government officials about social care. The Prime Minister's response

:34:26. > :34:30.was to accuse me of peddling alternative facts. Could the Prime

:34:31. > :34:38.Minister explain the difference between a sweetheart deal and a

:34:39. > :34:41.gentlemen's agreement? First of all, the right honourable gentleman

:34:42. > :34:46.references women in this House. I think I will point out to him that

:34:47. > :34:50.actually the Conservative Party has taken a further measure in relation

:34:51. > :35:02.to women in this House recently. We've replaced a Labour male MP with

:35:03. > :35:10.a female Conservative. CHEERS AND JEERS

:35:11. > :35:13.He has asked me about the issue in relation to Surrey County Council

:35:14. > :35:16.and the substance of what he is asking is has there been a

:35:17. > :35:20.particular deal with Surrey County Council that is not available to

:35:21. > :35:30.other councils? And the answer to that is no. As I've said before -

:35:31. > :35:35.the ability to raise a social care precept of 3% is available to every

:35:36. > :35:40.council. The issue of the retention of 100% of business rates is

:35:41. > :35:44.currently - is going to be available to a number of councils in ip a.

:35:45. > :35:47.Let's look at them. Liver -- in April. Let's look at them.

:35:48. > :35:53.Liverpool, Manchester, London, what do we know about those? Ah, they are

:35:54. > :35:57.all under Labour control. So what he's actually asking me is - why

:35:58. > :36:01.should a Conservative council have access to an arrangement that's

:36:02. > :36:10.predominantly currently available to Labour councils? Mr Speaker, my

:36:11. > :36:19.question was about the arrangements between the Government and Surrey

:36:20. > :36:24.County Council. A recording has now emerged saying that the Leader of

:36:25. > :36:27.Surrey County Council, David Hodge said there was a gentlemen's

:36:28. > :36:30.agreement between him and the Government which meant they would

:36:31. > :36:36.not have to go ahead with the referendum. My question is - what

:36:37. > :36:40.deal was done with Surrey County Council? Because there is an acute

:36:41. > :36:49.social care crisis that affects every council. 4.6 billion of cuts

:36:50. > :36:53.made to social care since 2010. Can the Prime Minister tell every other

:36:54. > :36:58.council in England what gentlemen's agreement is available for them? Can

:36:59. > :37:02.I say to the right honourable gentleman, on today of all days, I

:37:03. > :37:07.think if we could just be a little patient and wait half an hour for

:37:08. > :37:14.the Budget, he will actually find out what social care funding is

:37:15. > :37:18.available to all councils. If he's - I come back to it, if he is asking

:37:19. > :37:23.me if there was a special deal for Surrey that was not available to

:37:24. > :37:27.other councils, the answer is no. If he is looking to uncover a

:37:28. > :37:35.conspiracy I suggest he just looks behind him.

:37:36. > :37:42.Well, Mr Speaker, if all the arrangements were so clear and above

:37:43. > :37:48.board, will the Prime Minister place in the library of the House a record

:37:49. > :37:54.of all one-to-one meetings that have been held between the Communities'

:37:55. > :37:57.Secretary and the Chancellor, with any council leader or chair of

:37:58. > :38:03.social services anywhere in England? And can she explain, if there is no

:38:04. > :38:10.special deal, why Surrey is the only county council to be allowed into

:38:11. > :38:19.the business rates retention pilot when it's been denied to others? The

:38:20. > :38:25.business rate retention pilot will be coming into force for a number of

:38:26. > :38:31.councils this April. That includes, as I have already said in answer to

:38:32. > :38:35.his earlier question, Liverpool, Greater Manchester, Greater London,

:38:36. > :38:41.and some others. In 2019-20, it's going to be available to 100% of

:38:42. > :38:46.councils. For 2018-19, councils are able to apply to the part of a

:38:47. > :38:53.further pilot. That goes for all councils across the country. The

:38:54. > :38:55.text, Mr Speaker, said there was a memorandum of understanding. The

:38:56. > :39:06.Prime Minister said there was no deal. She now is unclear about this.

:39:07. > :39:09.Did she actually know what arrangement was made with Surrey

:39:10. > :39:16.County Council? She is unkeen on answering questions on that. There

:39:17. > :39:22.is another area of deep concern over the whole country. Could the Prime

:39:23. > :39:29.Minister tell us how many new school places will be needed by 2020? Can I

:39:30. > :39:33.just say to the right honourable gentleman that really he should

:39:34. > :39:38.listen to the answers I give before he asks the next question. He said I

:39:39. > :39:43.didn't answer the question about a special deal for Surrey. I think

:39:44. > :39:46.I've answered it now three times but I'll do it a fourth time tl.s no

:39:47. > :39:54.special deal for Surrey that was not available to other councils. Mr

:39:55. > :39:59.Speaker, the Prime Minister was also asked a question just a moment ago

:40:00. > :40:04.about the number of new school places needed by 2020, perhaps she

:40:05. > :40:07.could explain why we have a crisis in school places and class sizes

:40:08. > :40:11.soaring, thanks to her Government? So what is the answer on the number

:40:12. > :40:21.of new school places needed, Prime Minister? Well, this Government has

:40:22. > :40:26.a policy, which is about increasing the number of school places but

:40:27. > :40:30.doing more than that. I want to increase the number of good school

:40:31. > :40:33.places, so that every child has an opportunity to go to a good school.

:40:34. > :40:40.That's what the money we are putting into education is about. It includes

:40:41. > :40:44.money for new free schools - those will be faith schools, university

:40:45. > :40:48.schools, comprehensives, grammar schools, university schools I have

:40:49. > :40:53.said, maths schools. There will be a diversity because what I want is a

:40:54. > :40:57.good school place for every child and parents to have a choice. What

:40:58. > :41:06.the right honourable gentlemanp wants is parents to take what

:41:07. > :41:10.they're given, good or bad. Mr Speaker, the National Audit Office

:41:11. > :41:14.tell us that a very large number of new school places are needed,

:41:15. > :41:19.420,000, nothing she's said gets anywhere near to that. Instead, she

:41:20. > :41:23.proposes a flagship scheme to build the wrong schools in the wrong

:41:24. > :41:29.place, spending millions of vanity projects of grammar schools and free

:41:30. > :41:37.schools, whilst at the same time per pupil funding is falling in real

:41:38. > :41:42.terms. It is time that this colossal waste of money was addressed. It is

:41:43. > :41:48.doing nothing to help the vast majority of children, doing not to

:41:49. > :41:52.help with soaring class sizes. That's what this country wants, not

:41:53. > :41:56.vanity projects from her Government. It is no vanity project to want

:41:57. > :42:02.every child to have a good school place. The majority of free schools

:42:03. > :42:06.- the majority of free schools that have been opened, have been opened

:42:07. > :42:11.in areas where there is a need for school places and the majority have

:42:12. > :42:14.been opened actually in areas of disadvantage, where they are helping

:42:15. > :42:17.the very children we want to see get thep opportunity to get on in life.

:42:18. > :42:21.But I have to say to the right honourable gentleman, this is about

:42:22. > :42:25.a fairer society and on this Budget Day, what we see is we are securing

:42:26. > :42:32.the economy Labour want it weaken it. We are working for a fairer

:42:33. > :42:37.society. Labour oppose every single reform. We're fighting for the best

:42:38. > :42:42.deal for Britain, Labour are fighting among themselves. That's

:42:43. > :42:57.Labour, weak, divided and unfit to govern this great country. Thank

:42:58. > :43:01.you, Mr Speaker. This week it is likely that in my area four people

:43:02. > :43:09.will suffer a stroke. With this in mind and given that the highly

:43:10. > :43:19.successful stroke strategy expires this year, will my honourable friend

:43:20. > :43:24.update the stroke strategy which and put in place schemes that can

:43:25. > :43:27.increase the outcomes. The NHS wants to continue to build on the success

:43:28. > :43:32.he is of the current stroke strategy there. Have been huge improvements.

:43:33. > :43:36.We all recognise huge improvements over the last decade in stroke care

:43:37. > :43:40.and we want to deliver our ambition for truly world-leading care. On the

:43:41. > :43:45.particular treatment she refers to, I understand the NHS has improved

:43:46. > :43:49.the use of mechanical clot retrieval in specific cases. It does

:43:50. > :43:52.rigorously audit the quality of stroke care across the country so we

:43:53. > :43:56.can make sure we are delivering on our commitments and we have some of

:43:57. > :44:01.the fastest improvement in hospital recovery rates for stroke and heart

:44:02. > :44:09.attacks in Europe. On International Women's Day, we wish all campaigners

:44:10. > :44:14.for equality well, including the Waspy campaigners. Mr Speaker, the

:44:15. > :44:18.cross-parliamentary Brexit committee has recommended the UK must

:44:19. > :44:22.guarantee the status of EU nationals living in the UK and act

:44:23. > :44:27.unilaterally, if necessary. The committee then went on to say that

:44:28. > :44:30.the current process for consideration of the permanent

:44:31. > :44:34.residency applications is not fit for purpose and in the absence of

:44:35. > :44:41.any contrary resolution to relieve the anxiety, felt by the #12i789ed 3

:44:42. > :44:47.million EU citizens resident in the UK, it is -- felt by the 3 million

:44:48. > :44:50.EU citizens, it is untenable as it now stands. Given the positive

:44:51. > :44:53.contribution thae. U nationals make to this country, what concrete plans

:44:54. > :44:57.does the Prime Minister have to deal with this? As the right honourable

:44:58. > :45:01.gentleman knows, we do want to have an early agreement, which will

:45:02. > :45:09.enable us to guarantee the status of EU citizens living in the UK but

:45:10. > :45:12.also, we need to guarantee the status of UK citizens living in the

:45:13. > :45:16.European Union. As regards the process of application, the Home

:45:17. > :45:18.Office are looking at this, as they always do, looking regularly at how

:45:19. > :45:24.they can improve the systems and simplify them.

:45:25. > :45:31.Mr Speaker, since 2010, the Home Office has seen its full-time staff

:45:32. > :45:34.equivalent cut by 10% so at current rates of processing applications for

:45:35. > :45:40.permanent residency, it would take the Home Office more than 50 years.

:45:41. > :45:46.50 years to deal with 3.2 million European nationals in the UK. This

:45:47. > :45:50.is clearly totally and utterly unacceptable. So will the Prime

:45:51. > :45:53.Minister tell us how quickly she hopes to be able to guarantee all

:45:54. > :46:00.European nationals permanent residence? I would say to the right

:46:01. > :46:03.honourable gentleman, you can't just say and stand up because actually

:46:04. > :46:06.the Home Office is getting more efficient, it's going to be longer

:46:07. > :46:11.for answers to be given to these people. Yes, the Home Office is

:46:12. > :46:15.getting more efficient at how it is dealing with these things. I don't

:46:16. > :46:17.know if he's ever heard about technology but these days, actually,

:46:18. > :46:26.people apply online and they are dealt with online. Following the

:46:27. > :46:29.recent findings of the study on terror convictions in Britain, it is

:46:30. > :46:34.clear there are serious problems with how communities integrate into

:46:35. > :46:38.society, and the danger that this lack of integration, leading to acts

:46:39. > :46:42.of terror. Will the Prime Minister update the house on the government's

:46:43. > :46:46.counter extremism strategy and response to these findings? Again,

:46:47. > :46:51.this is a very serious issue that my honourable friend has raised and the

:46:52. > :46:54.government is taking a comprehensive approach to tackling terrorism,

:46:55. > :46:58.violent extremism at source but also obviously through counter extremism

:46:59. > :47:03.strategy, looking at extremism more widely. We want to defeat not just

:47:04. > :47:07.terrorism and violent extremism but extremism wherever it occurs. We

:47:08. > :47:10.will shortly publish a new counterterrorism strategy and in the

:47:11. > :47:14.coming months, we will respond to Dame Louise Casey's report on

:47:15. > :47:18.integration. But this is backed up by additional investment in the

:47:19. > :47:21.security and intelligence agencies, 2.5 billion over five years and I

:47:22. > :47:24.clear the government is doing everything it can to tackle issues

:47:25. > :47:34.around integration, extremism and terrorism. I come from a Westminster

:47:35. > :47:40.Hall debate on behalf of my young constituent, Sam, who is 11, who

:47:41. > :47:44.developed narcolepsy as a result of receiving a vaccine to protect him

:47:45. > :47:56.from swine flu. Sam's mother is in the gallery today. In rare and

:47:57. > :47:59.devastating cases could the lease between pandemrix narcolepsy is

:48:00. > :48:02.proven and yet families face a long legal battle with the government.

:48:03. > :48:04.Will the Prime Minister today promised that no more of these

:48:05. > :48:09.disabled children will be handing all the courts. -- handed through

:48:10. > :48:12.the courts. Will she apologised to the families concerned and also

:48:13. > :48:17.oversee payments to support the children's long-term care needs. Can

:48:18. > :48:21.I first of all congratulate the honourable lady on securing the

:48:22. > :48:24.Westminster Hall debate on this important topic. She referred to at

:48:25. > :48:30.the end of her question to the issue of payments. Of course, I'm sure she

:48:31. > :48:33.realises the vaccine damage payment scheme is not a compensation team

:48:34. > :48:37.but a one-off tax-free lump sum which is paid to ease the burden of

:48:38. > :48:41.those who are disabled as a result of vaccination and it is part of a

:48:42. > :48:45.range of support provided. She has raised a very specific case and can

:48:46. > :48:48.I suggest you learn that obviously, she's had that Westminster Hall

:48:49. > :48:53.debate, we want to ensure the process is open and fair at every

:48:54. > :48:57.stage. The DWP looks at every claim based on its own facts and if she

:48:58. > :49:00.wants to write with the details, I'm sure my honourable friend the

:49:01. > :49:05.Minister for disabled people, health and work will look into the specific

:49:06. > :49:11.case she has raised. Closed question: Mr Michael Fabricant.

:49:12. > :49:13.Question for, sir. While I won't speculate on the statement is my

:49:14. > :49:17.right honourable friend the Chancellor will make very shortly, I

:49:18. > :49:22.can assure my honourable friend that the fundamentals of our economy are

:49:23. > :49:26.strong. Since 2010 from employment in the West Midlands has risen by

:49:27. > :49:31.215000 and private sector employment alone grew by 80,000 over the last

:49:32. > :49:34.year. We have also seen schools and police budgets being protected and

:49:35. > :49:40.more doctors and nurses in his local hospitals. Michael Fabricant. And of

:49:41. > :49:45.course, we have also witnessed the post Brexit vote of confidence from

:49:46. > :49:49.Nissan, Boeing and Dyson, investing in other parts of the country. Good

:49:50. > :49:55.my right honourable friend speak a bit more about firms like Jaguar

:49:56. > :49:59.Land Rover in the West Midlands? I'm happy to say to my honourable friend

:50:00. > :50:03.that of course in the wider sense, our plans for the Midland engine

:50:04. > :50:08.show we want an economy that works for everyone. We have already

:50:09. > :50:12.confirmed over 330 million in the Croasdale funding, money going to

:50:13. > :50:15.the West Midlands engine investment fund, the Birmingham rail hub but it

:50:16. > :50:19.is important to recognise the investment being made in the UK by

:50:20. > :50:23.companies like Jaguar Land Rover who will be building their new range

:50:24. > :50:27.Rover model in Solihull. That is very good news for the West

:50:28. > :50:30.Midlands. It is also very good news for the British economy and is a

:50:31. > :50:36.sign of the confidence Jaguar Land Rover has in the UK for the future.

:50:37. > :50:40.Gordon Marsden. Mr Speaker, my casebook is now full of the anxiety

:50:41. > :50:45.is the DWP and Home Office are imposing on the honourable

:50:46. > :50:48.constituents, including officials' devs to overturn tribunal decisions

:50:49. > :50:54.protecting benefits and residents, including a family settled here for

:50:55. > :50:57.eight years and a man with a severe brain injury. Can I ask the Prime

:50:58. > :50:59.Minister if she wants people to respect Brexit means Brexit,

:51:00. > :51:06.shouldn't she respect that tribunal 's mean tribunal is, and not try to

:51:07. > :51:12.block them with grubby regulations, affecting 164,000 disabled people?

:51:13. > :51:16.If the right honourable gentleman is referring to the decision that has

:51:17. > :51:19.been taken in relation to the courts and the personal independence

:51:20. > :51:22.payments, as I explained in this house last week, as has been

:51:23. > :51:30.explained by the Secretary of State, this is about restoring the system

:51:31. > :51:35.to the state that it was intended to be when Parliament agreed it. It was

:51:36. > :51:39.agreed by the coalition government, agreed by this Parliament, after

:51:40. > :51:43.extensive consultation. Mark Menzies. Mr Speaker, in National

:51:44. > :51:47.apprenticeship week, it is important to recognise this government's

:51:48. > :51:51.commitment to investment and commitment in apprenticeships and

:51:52. > :51:53.skills. Would the Prime Minister look at encouraging a greater

:51:54. > :51:59.commitment to degree apprenticeships as part of the government strategy,

:52:00. > :52:01.as championed in businesses in my constituency like BAE Systems who

:52:02. > :52:05.have been at the forefront of developing these new programmes

:52:06. > :52:08.through its engineering degree apprenticeships scheme? My right

:52:09. > :52:12.honourable friend has raised a very important issue at, as we look to

:52:13. > :52:16.the future, we want to ensure that people in the UK have the skills

:52:17. > :52:19.they need for the economy of the future, degree apprenticeships will

:52:20. > :52:22.be an important part of this and as he refers to specifically, there are

:52:23. > :52:26.companies like BAE Systems which have been right at the forefront of

:52:27. > :52:31.developing those new programmes. I am pleased to say that overall, if

:52:32. > :52:35.we look at apprenticeships, the apprenticeship levy will take the

:52:36. > :52:39.total investment in England, ?2.45 billion, double what was spent in

:52:40. > :52:42.2010. That means it is more opportunities for young people to

:52:43. > :52:47.gain the skills they need for the future. Dan Jarvis. Tomorrow, a

:52:48. > :52:53.memorial will be unveiled to those men and women who served our country

:52:54. > :52:57.in Afghanistan and Iraq. Does the Prime Minister agree that we should

:52:58. > :53:02.all pay tribute to their service and commemorate their sacrifice? Not

:53:03. > :53:09.just with a memorial but through a commitment to learn from the past

:53:10. > :53:13.and do better in the future. The honourable gentleman raises a very

:53:14. > :53:17.important point. This will be a very significant ceremony when this

:53:18. > :53:20.memorial is unveiled and we should all, I think, across this house,

:53:21. > :53:28.paid tribute to those whom that memorial will be recognising, for

:53:29. > :53:33.the sacrifice they made. Those in our Armed Forces but also all those

:53:34. > :53:36.civilians who worked to deliver aid and health care and education. It is

:53:37. > :53:42.important that we recognise the sacrifices made by our Armed Forces

:53:43. > :53:45.and also by their families. That will be a significant moment

:53:46. > :53:49.tomorrow. We are very clear that we do need to learn the lessons from

:53:50. > :53:56.the past and that is exactly what we will do. Johnny Mercer. Thank you,

:53:57. > :53:58.Mr Speaker, and I was delighted with the Prime Minister's intervention in

:53:59. > :54:03.that it was in January which I still feel has not had the attention it

:54:04. > :54:07.deserves. -- intervention in mental health. In Plymouth, we are

:54:08. > :54:10.completely reconfiguring services because we realise parity of esteem

:54:11. > :54:14.means nothing without parity or provision. Will the Prime Minister,

:54:15. > :54:17.visit Plymouth and see some of the pioneering work we are doing, and

:54:18. > :54:21.perhaps in national mental health week in May where I am hoping

:54:22. > :54:25.Plymouth will take a national lead? I thank my honourable friend because

:54:26. > :54:29.I know this is an issue he has championed and it is very close to

:54:30. > :54:39.his areas of concern. He's done a lot of lot of work on mental is

:54:40. > :54:41.important as he talks about the parity of esteem, which the

:54:42. > :54:43.government has introduced, and more money is going into mental health

:54:44. > :54:45.provision than ever before. I would certainly be delighted to see the

:54:46. > :54:50.work done in Plymouth provided my diary allows it. Julie Cooper. In my

:54:51. > :54:55.constituency of Burnley, primary and secondary schools are severely

:54:56. > :54:59.underfunded. Maintained nursery schools are struggling to survive.

:55:00. > :55:03.Why that at this time, when we cannot adequately fund the schools

:55:04. > :55:04.we already have, if the Prime Minister suggesting spending

:55:05. > :55:11.millions of pounds creating new grammar schools that will help only

:55:12. > :55:14.a minority of children? This is as unfair as the new funding formula

:55:15. > :55:21.and will do nothing to help social mobility. Let's be clearer about

:55:22. > :55:29.what the government has done. There are record amounts of funding going

:55:30. > :55:31.into education in this country. The Conservative led government

:55:32. > :55:34.introduced the pupil premium. The Conservative government has

:55:35. > :55:38.protected the core schools Budget. When it comes to new money that will

:55:39. > :55:42.be going into schools as a result of today's announcements, that money is

:55:43. > :55:45.not about a return to a binary system of grammar schools and

:55:46. > :55:51.secondary moderns. That is not what we are going to do. What we are

:55:52. > :55:55.doing is ensuring we give a diversity of provision so yes,

:55:56. > :55:59.grammar schools but comprehensives, faith schools, universities ghouls,

:56:00. > :56:04.maths schools. What I want is a good school place for every child, and

:56:05. > :56:10.more than that, the right school place for every child. Amanda

:56:11. > :56:14.Milling. On this International Women's Day, it is absolutely

:56:15. > :56:19.fantastic we have the highest female employment rate on record. We have

:56:20. > :56:23.the highest percentage of women on FTSE 100 boards on record. The

:56:24. > :56:34.gender pay gap is at the lowest on record. And we have an amazing

:56:35. > :56:45.female Prime Minister. CHEERS AND JEERS. Never, Bill -- however, I'm

:56:46. > :56:49.sure the Prime Minister will agree there much more to do, in particular

:56:50. > :56:52.supporting women back to work after a career break. Can my right

:56:53. > :56:59.honourable friend outline what more the government are going to do to

:57:00. > :57:03.level the playing field? I thank my honourable friend for her question.

:57:04. > :57:06.When I stood on the steps of Downing Street last July, and talked about a

:57:07. > :57:12.country that works for everyone, I meant that and that is why we are

:57:13. > :57:17.taking a number of measures... Including an International Women's

:57:18. > :57:20.Day, today, and we will be setting up a new fund to help mothers

:57:21. > :57:29.returning to work after a long career break. Returnships are

:57:30. > :57:32.important and open to both men and women but it is important to

:57:33. > :57:35.recognise the majority of those who take time out of a career women who

:57:36. > :57:38.are devoting themselves for motherhood -- demanded for a period

:57:39. > :57:41.and often getting back into employment is difficult and they

:57:42. > :57:44.find it closed off which is why it makes economic sense but it is also

:57:45. > :57:52.right unfair for those women that we provide for the returnships to get

:57:53. > :57:56.them back in the workplace. Everyone agrees that early years education is

:57:57. > :58:01.crucial for the welfare and future of our children. However, nurseries

:58:02. > :58:04.in my constituency tell me that the funding for 30 hours for free

:58:05. > :58:09.childcare is not sufficient and not enough and many of them will be

:58:10. > :58:15.forced to close. What steps will the Prime Minister take to ensure those

:58:16. > :58:18.nurseries don't close? Can I say to the honourable lady, she talks about

:58:19. > :58:22.the 30 hours that is being introduced, if you just look at what

:58:23. > :58:25.we are doing on childcare, we have introduced 15 hours free childcare a

:58:26. > :58:31.week for three and four-year-old is already, 15 hours free childcare for

:58:32. > :58:34.disadvantaged -year-olds and help win up to 70% of childcare costs for

:58:35. > :58:38.people on low incomes and shared parental leave and we will spend a

:58:39. > :58:44.record ?6 billion on childcare support by end of this Parliament.

:58:45. > :58:48.It is this Conservative government, conservatives in government have the

:58:49. > :58:53.record of supporting parents in relation to childcare needs.

:58:54. > :58:59.Michelle Brooke. Does my right honourable friend agree with me that

:59:00. > :59:01.it is indefensible for the police and crime commission in west

:59:02. > :59:07.Yorkshire to be raising council tax precept when he's got ?120 million

:59:08. > :59:12.in reserve and overspent this year's Budget by ?4 million? -- Alec

:59:13. > :59:14.Shelbrooke. Can I say to my honourable friend, the decision

:59:15. > :59:18.about what to do on the police precept on council tax is a matter

:59:19. > :59:22.for the directly elected police and crime commission for West Yorkshire

:59:23. > :59:24.as it is in every area that has a policing crime commission. But I

:59:25. > :59:30.would encourage those commissioners to look at ways of introducing

:59:31. > :59:33.efficiencies into their forces before looking to increase local

:59:34. > :59:38.taxes. I think what we have seen over the last six years is that

:59:39. > :59:39.police forces can find sensible savings and can reduce crime at the

:59:40. > :59:51.same time. Brian Davis. Mr Speaker commune at the Royal

:59:52. > :59:54.College of physicians have found that 40,000 people die prematurely

:59:55. > :00:00.each year from diesel pollution at a cost of ?20 million to the economy,

:00:01. > :00:04.and that YouGov have found 45% of diesel drivers are willing to

:00:05. > :00:08.switch, given the right scrappage or tax incentive schemes. So will she

:00:09. > :00:16.today commit to a fiscal strategy and a new clean air act to put us on

:00:17. > :00:19.a new, cleaner, healthier trajectory, to take global

:00:20. > :00:25.leadership rather than be dragged into the courts to fulfil basic EU

:00:26. > :00:28.air quality standards? As the honourable gentleman will know, we

:00:29. > :00:31.are looking at the measures that we need to introduced to improve air

:00:32. > :00:36.quality. There has been improvements in recent years but we do need to go

:00:37. > :00:40.further and that is what the government is looking at across

:00:41. > :00:44.departments, obviously, with the Department for environment, food and

:00:45. > :00:49.rural affairs actually paying most attention to that because it is in

:00:50. > :00:51.their remit and we will bring proposals on air quality forward in

:00:52. > :01:00.due course. International Women's Day is a

:01:01. > :01:02.chance to reflect on how governments and democracies across the world

:01:03. > :01:07.serve women. Will my right honourable friend confirm that when

:01:08. > :01:22.it comes to female Prime Ministers, it's 2-0 to the Conservatives?

:01:23. > :01:28.Well, I'm grateful to my honourable friend for having pointed that out,

:01:29. > :01:32.which I refrained from doing earlier in response to questions but I think

:01:33. > :01:35.it is very telling that the Labour Party spend a lot of time talking

:01:36. > :01:39.about rights for women and giving support to women and getting women

:01:40. > :01:45.on, whereas it's a Conservative Party that is the party, in this

:01:46. > :01:49.House, that has provided two female Prime Ministers.

:01:50. > :01:56.Thank you, Mr speaker. Will the Prime Minister give an undertaking

:01:57. > :02:00.that any new Scotland Act will only be drafted after full consultation

:02:01. > :02:10.with the people of Scotland, and with the consent of the Scottish

:02:11. > :02:13.Parliament? I would say to the honourable lady, I'm not sure if

:02:14. > :02:19.she's referring to discusses currently taking place about the

:02:20. > :02:23.powers that might be available to the devolved administrations

:02:24. > :02:27.available to the devolved administrations when we discuss to

:02:28. > :02:39.leave the EU but we knows full well that we all...

:02:40. > :02:46.Crowd Comms a business in my constituency operates out of its

:02:47. > :02:55.small market down and has offices in Seattle and Sydney. And it has

:02:56. > :02:57.high-quality jobs for people available themselves of fast

:02:58. > :03:01.broadband and telephone communication. This is the recipe

:03:02. > :03:05.for growing the rural economy. Will my right honourable friend ensure it

:03:06. > :03:08.undertake her Government does all that it can to I will can the

:03:09. > :03:12.blackspots in rural areas? I can assure my honourable friend that we

:03:13. > :03:14.want to ensure we are doing that. My right honourable friend the

:03:15. > :03:18.Secretary of State for Culture, media and sport is looking at our

:03:19. > :03:22.digital strategy and ensuring broadband is available in rural

:03:23. > :03:25.areas and indeed at good speeds in other areas which might be less

:03:26. > :03:33.rural than my honourable friend's conzitcy.

:03:34. > :03:43.-- constituency. THE SPEAKER: Finally, Mr Tim Farron. Thank you Mr

:03:44. > :03:47.Speaker. Order, order. I don't know why honourable members are cheering

:03:48. > :03:50.because it is finally or the popularity of the honourable

:03:51. > :03:54.gentleman. You are very uncharacterically kind. Mr Speaker

:03:55. > :03:58.on International Women's Day we stand with women and girls across

:03:59. > :04:01.the world and note with resolve that we must take not for granted the

:04:02. > :04:06.progress we have made towards equality over the last few decades.

:04:07. > :04:11.Mr Speaker, yesterday we heard that hundreds of families of soldiers who

:04:12. > :04:14.died in Iraq and Afghanistan have been denied seats at tomorrow's

:04:15. > :04:19.unveiling of the memorial to our fallen troops. Inviting a relative

:04:20. > :04:24.of each of those killed in Iraq and Afghanistan would have taken up

:04:25. > :04:28.fewer than one-third of the 2,500 seats at that event. Will she now

:04:29. > :04:35.apologise to those families for what I assume is a careless oversight and

:04:36. > :04:39.rectify that mistake immediately to the so bereaved families can come

:04:40. > :04:42.and pay their respects to their fallen loved ones? Can I reassure

:04:43. > :04:46.the honourable gentleman to assure him that charitable groups

:04:47. > :04:50.representing the bereaved were asked to put forward names I have a

:04:51. > :04:53.tendees and we look forward to welcoming so we can acknowledge the

:04:54. > :04:57.sacrifice their loved ones made. Over half of those attending

:04:58. > :05:02.tomorrow are current or members of Armed Forces. No-one from the

:05:03. > :05:06.bereaved community has been turned away and everyone who has applied

:05:07. > :05:11.has been successful. I am' reassured if there are any bereaved families

:05:12. > :05:14.who wish to attend the Ministry of Defence will make every effort to

:05:15. > :05:18.ensure that they can do so. Speak speak order.

:05:19. > :05:20.Prime Minister's Questions comes to a close, and we now

:05:21. > :05:26.have a change in the Speaker's Chair.

:05:27. > :05:32.We are now getting towards the Budget statement.

:05:33. > :05:34.By tradition, the principal Deputy Speaker, currently

:05:35. > :05:37.the Labour MP Lindsay Hoyle, also known as the Chairman of Ways

:05:38. > :05:40.and Means, takes the chair for the Budget statement.

:05:41. > :05:45.Proposals for raising taxation used to originate

:05:46. > :05:57.So we are getting ready for the budget.

:05:58. > :06:03.Thank you Mr Deputy Speaker. I report today on an economy that has

:06:04. > :06:08.continued to confound the commentators with robust growth. A

:06:09. > :06:12.labour market delivering record employment and a deficit down by

:06:13. > :06:16.over two-thirds. As we start our negotiations to exit the European

:06:17. > :06:22.Union, this Budget takes forward our plans to prepare Britain for a

:06:23. > :06:26.brighter future. It provides a strong and stable platform for those

:06:27. > :06:31.negotiations. It extends opportunity to all our young people. It delivers

:06:32. > :06:35.further investment in our public services, and it continues the task

:06:36. > :06:39.of getting Britain back to living within its means. We are building

:06:40. > :06:46.the foundations of a stronger, fairer, more global Britain. Mr

:06:47. > :06:50.Deputy Speaker, as the House knows, this will be the last Spring Budget.

:06:51. > :06:55.The Treasury has helpfully reminded me that I am not the first

:06:56. > :07:00.Chancellor to announce the last Spring Budget. 24 years ago, Norman

:07:01. > :07:05.Lamont also presented what was billed then as the last Spring

:07:06. > :07:12.Budget. He reported on an economy that was growing faster than any

:07:13. > :07:15.other in the G7 and he continued to commit to restraint in public

:07:16. > :07:19.spending. The then Prime Minister described it as the right Budget at

:07:20. > :07:24.the right time, from the right Chancellor. What they failed to

:07:25. > :07:33.remind me, Mr Deputy Speaker, was that ten weeks later he was sacked.

:07:34. > :07:37.So, wish me luck today. Mr Deputy Speaker, last year the British

:07:38. > :07:41.economy grew faster than the United States, faster than Japan, faster

:07:42. > :07:45.than France. Indeed amongst the major advanced economies, Britain's

:07:46. > :07:52.economic growth n 2016 was second only to Germany. Employment is at a

:07:53. > :07:57.record high. Unemployment is at an 11-year low, with over 2.7 million

:07:58. > :08:02.more people enjoying the security and dignity of work than in 2010. A

:08:03. > :08:05.very far cry from the 3 million unemployed predicted by the party

:08:06. > :08:09.opposite. And I'm pleased to report, Mr Deputy

:08:10. > :08:14.Speaker, on International Women's Day, that there is now a higher

:08:15. > :08:19.proportion of women in the workforce than ever before. I'm even more

:08:20. > :08:21.pleased to report, as my right honourable friend, the Prime

:08:22. > :08:26.Minister has remarked, since February 23rd, there is a higher

:08:27. > :08:31.proportion of women in work in the parliamentary Conservative Party.

:08:32. > :08:36.But Mr Deputy Speaker, there is no room for complacency and you will

:08:37. > :08:40.not find any on these benches. As we prepare for our future outside the

:08:41. > :08:44.EU, we cannot rest on our past achievements. We must focus,

:08:45. > :08:49.relentlessly, on keeping Britain at the cutting edge of the global

:08:50. > :08:55.economy. The deficit is down, but debt is still too high. Employment

:08:56. > :08:59.is up, but productivity remains stubbornly low. Too many of our

:09:00. > :09:04.young people are leaving formal education without the skills they

:09:05. > :09:08.need for today's labour market. And too many families are still feeling

:09:09. > :09:15.the squeeze, almost a decade after the crash. So, our job is not done.

:09:16. > :09:20.And our task today is to take the next steps in preparing Britain for

:09:21. > :09:25.a global future - to quip our young people with the skills they need, to

:09:26. > :09:29.support our public services and to help ordinary working families, as

:09:30. > :09:36.we build an economy that works for everyone.

:09:37. > :09:39.Mr Deputy Speaker, I thank the Office for Budget Responsibility for

:09:40. > :09:43.their report received today. Let me take this opportunity to thank my

:09:44. > :09:48.right honourable friend the Chief Secretary and my ministerial team

:09:49. > :09:54.who really are the unsung heroes of the Budget, doing much of the heavy

:09:55. > :09:59.lifting over the last few weeks and of course my excellent PPS, my right

:10:00. > :10:07.honourable friend. I turn now, Mr Deputy Speaker, to

:10:08. > :10:12.the OBR forecast. This is the spread sheet bit but bear with me, because

:10:13. > :10:19.I have a reputation to defend. The OBR forecast the level of GDP for

:10:20. > :10:21.20221 to be broadly the same as at Autumn Statement however the path we

:10:22. > :10:27.get there has changed. Reflecting the recent strength in the economy,

:10:28. > :10:32.the OBR has upgraded its forecast for growth this year, next year,

:10:33. > :10:39.from 1.4% to 2%. And Mr Deputy Speaker, I don't see too many people

:10:40. > :10:54.on the Opposition front bench doing this. In 2018-19, growth is forecast

:10:55. > :11:00.to slow to 1.6%, before picking up to approximate 1.7%, then 1.9%,

:11:01. > :11:04.returning to 2% in 2021. Resilience in the economy is

:11:05. > :11:10.reflected in a strong labour market. Since 2010, the employment rate has

:11:11. > :11:15.risen from 70.2, to 74.6, with positive news for all parts of the

:11:16. > :11:21.United Kingdom. Unemployment has fallen fastest in Yorkshire and the

:11:22. > :11:25.Humber and Wales. Wages have grown fastest in Northern Ireland. And

:11:26. > :11:30.productivity has grown fastest in Scotland and in the north-east.

:11:31. > :11:34.And this positive trend is set to continue over the forecast period.

:11:35. > :11:40.The number of people in employment is set to grow in every year, with a

:11:41. > :11:47.further two-thirds of a million people in work by 2021. The OBR

:11:48. > :11:52.forecast inflation at 2.4% this year, then 2.3% next year and 2% in

:11:53. > :11:57.2019. And most importantly, Mr Deputy

:11:58. > :12:03.Speaker, despite higher than target inflation, real wages continue to

:12:04. > :12:07.rise in every year of the forecast. Mr Deputy Speaker, while the

:12:08. > :12:13.economic forecasts are broadly unchanged since the autumn, the OBR

:12:14. > :12:17.has substantially revised down its short-term forecast of public sector

:12:18. > :12:21.net borrowing. The OBR attributes this change to a number of one-off

:12:22. > :12:25.factors that they do not expect to lead to a structural improvement

:12:26. > :12:29.over the forecast period. Combining these factors with the higher

:12:30. > :12:34.short-term forecasts for growth and taking into account the measures

:12:35. > :12:42.that I shall announce today, the OBR now forecasts borrowing in 2016-17

:12:43. > :12:48.to be ?16.4 billion lower than forecast in the autumn, at ?51.7

:12:49. > :12:56.billion. Then, ?58.3 billion in 2017-18,

:12:57. > :13:05.?40.8 billion in 18-19. ?21.4 billion, ?20.6 billion and finally

:13:06. > :13:08.?16... In 21-22. All lower than forecast at Autumn Statement.

:13:09. > :13:15.Over all, public sector net borrowing, as a percentage of GDP is

:13:16. > :13:19.predicted to fall from 3.8% last year to 2.6% this year. And

:13:20. > :13:24.forethose who care about such things, it means we are forecast to

:13:25. > :13:31.meet our 3% EU be stability and growth pact target this year for the

:13:32. > :13:43.first time in almost a decade. But I won't hold my breath, Mr Deputy

:13:44. > :13:45.Speaker, for my congratulatory letter from Jean-Claude junker.

:13:46. > :14:01.Borrowing is then forecast to be 2.9% in 17-19 and then to fall.

:14:02. > :14:07.21-22 will be the lowest level in two decades. The OBR expect

:14:08. > :14:17.cyclically adjusted public sector net borrowing to be 6.9% in 2020-21.

:14:18. > :14:21.Giving us a #23rs target in the new fiscal rules, maintaining our fiscal

:14:22. > :14:24.resilience over the period. The OBR's forecast of lower near-term

:14:25. > :14:28.borrowing, coupled with recent strength in the economy, be means

:14:29. > :14:36.lower debt across the period. The OBR now forecast that is debt will

:14:37. > :14:41.rise to 86.6% this year before peaking at 88.8% next year. 1.4%

:14:42. > :14:50.points lower than forecast in the autumn. It then falls in 2018-19,

:14:51. > :15:02.for the first time since 2001-2, to 88.5%, and then continues to decline

:15:03. > :15:08.to 86.9% in 1920, 83% in 20-21 and 79.8% in 21-22. Mr Deputy Speaker,

:15:09. > :15:11.at the Autumn Statement, I set out our plan to return the politic

:15:12. > :15:13.finances to balance in the next Parliament. A plan that is now

:15:14. > :15:23.underpinned by our new fiscal rules. That plan strikes the right balance

:15:24. > :15:26.between reducing the deficit, preserving fiscal flexibility and

:15:27. > :15:33.investing in Britain's future. Some have argued that lower borrowing

:15:34. > :15:39.this year makes a case for more unfunded spending in the future. I

:15:40. > :15:47.disagree. Britain has a debt of nearly ?1.7 trillion. Almost ?62,000

:15:48. > :15:53.for every household in the country. Each year, we are spending ?50

:15:54. > :15:59.billion on debt interest, more than we spend on defence and policing

:16:00. > :16:06.combined. And borrowing, over the forecast period, is still set to be

:16:07. > :16:10.?100 billion higher than predicted at Budget 2016. So the only

:16:11. > :16:14.responsible course of action, Mr Deputy Speaker, is to continue with

:16:15. > :16:23.our plan, undeterred by any short-term fluctuations and

:16:24. > :16:31.undistracted... Undistracted by the reckless policies advance by the

:16:32. > :16:35.opposition. Because, Mr Deputy Speaker, we on this side will not

:16:36. > :16:44.saddle our children with ever increasing debt.

:16:45. > :16:54.SHOUTING Mr Deputy Speaker, I think the honourable members opposite may

:16:55. > :16:58.need to have a word with their own front bench, which proposes

:16:59. > :17:03.borrowing another ?500 billion to saddle our children and burden their

:17:04. > :17:08.futures. So, Mr Deputy Speaker, the Budget I

:17:09. > :17:12.set out today will again fund all additional spending decisions over

:17:13. > :17:17.the forecast period. Mr Deputy Speaker, a strong economy needs a

:17:18. > :17:21.fair, stable and competitive tax system, creating the growth that

:17:22. > :17:26.will underpin our future prosperity. My ambition is for the UK to be the

:17:27. > :17:33.best place in the world to start and grow a business. Under the last

:17:34. > :17:37.Labour government, corporation tax 28%. By the way, they don't call it

:17:38. > :17:45.the last Labour government for nothing!

:17:46. > :17:56.From... From April this year, from April this year, it will fall to

:17:57. > :18:01.19%, the lowest rate in the G20. In 2020, it will fall again to 17%,

:18:02. > :18:06.sending the clearest possible signal that Britain is open for business.

:18:07. > :18:12.Mr Deputy Speaker, I am listening to the voice of business. As I

:18:13. > :18:16.committed at the Autumn Statement, we have reviewed with business hour

:18:17. > :18:19.aren't the tax credit regime, the one place where I am not going to

:18:20. > :18:32.hear the voice of business is from the benches opposite! -- our R tax

:18:33. > :18:36.credit regime. We have done so, and we have concluded that it is

:18:37. > :18:41.globally competitive. But to make the UK even more attractive for R,

:18:42. > :18:44.we have accepted industry calls for a reduction in administrative

:18:45. > :18:48.burdens around the scheme, and we will shortly bring forward measures

:18:49. > :18:52.to deliver them. In a digital age, it is right that we develop a

:18:53. > :18:57.digital tax system, but in response to concerns about the timetable

:18:58. > :19:02.expressed by business organisations, and by several of my right

:19:03. > :19:06.honourable friends, including the chairman of the Treasury Select

:19:07. > :19:10.Committee, I have decided that for businesses with turnover below the

:19:11. > :19:15.VAT registration threshold, I will delay by one year the introduction

:19:16. > :19:22.of quarterly reporting, at a cost to the Exchequer of ?280 million. And I

:19:23. > :19:25.have heard the cause by North Sea oil and gas producers and the

:19:26. > :19:29.Scottish Government to provide further support for the transfer of

:19:30. > :19:34.late life assets. As UK oil and gas production declines, it is

:19:35. > :19:38.absolutely essential that we maximise exploitation of remaining

:19:39. > :19:44.reserves, and so we will produce a formal discussion paper on the

:19:45. > :19:48.options in due course. Mr Deputy Speaker, there is one further area

:19:49. > :19:50.in which I can introduce action to back British businesses. My right

:19:51. > :19:54.honourable friends community secretary and I have listened to the

:19:55. > :20:00.concerns raised by colleagues in this House and by businesses about

:20:01. > :20:05.the effect of the 2017 business rates revaluation. Business rates

:20:06. > :20:09.raises ?25 billion a year, all of which, by 2020, will be going to

:20:10. > :20:14.fund local government, so we cannot abolish them, as some have

:20:15. > :20:18.suggested. But it is certainly true, in the medium term, that we have to

:20:19. > :20:21.find a better way of taxing the digital part of the economy, the

:20:22. > :20:27.parts that does not use bricks and mortar. But in the meantime, there

:20:28. > :20:30.is scope to reform the revaluation process, making it smoother and more

:20:31. > :20:35.frequent to avoid the dramatic increases that the present system

:20:36. > :20:40.can do live. We will set out our preferred approach in due course,

:20:41. > :20:48.and we will consult on it before the next revaluation is due. The

:20:49. > :20:53.revaluation itself, Mr Deputy Speaker, is by law this Bill

:20:54. > :20:56.neutral, and ahead of this revaluation, the Government

:20:57. > :21:02.committed to a package of cuts to business rates now with nearly ?9

:21:03. > :21:07.billion. -- this can be neutral. It raises the threshold so that six and

:21:08. > :21:12.a thousand small businesses are taken out of paying rates

:21:13. > :21:16.altogether. But the revaluation has undoubtedly raised some hard cases,

:21:17. > :21:21.especially for those businesses coming out of small business rates

:21:22. > :21:24.relief. So today, as I promised many of my right honourable friends I

:21:25. > :21:28.would, I address those concerns with three measures which applied to the

:21:29. > :21:33.national business rate system for England. First, any business coming

:21:34. > :21:39.out of small business rate relief will benefit from an additional cap.

:21:40. > :21:42.No business losing small business rate relief will see their bill

:21:43. > :21:47.increase next year by more than ?50 a month. And the subsequent

:21:48. > :21:54.increases will be capped at either the transitional relief cap or ?50 a

:21:55. > :22:00.month, whichever is higher. Second, recognising the valuable role that

:22:01. > :22:06.local pubs play in our communities, I will provide a ?1000 discount on

:22:07. > :22:11.business rates bills in 2017 for all pubs with a rateable value of less

:22:12. > :22:19.than ?100,000. That is 90% of all pubs in England. And, third, I will,

:22:20. > :22:23.on top of these two measures, I will provide local authorities with a

:22:24. > :22:27.?300 million fund to deliver discretionary relief to target

:22:28. > :22:35.individual hard cases in their local areas. This fund will be allocated

:22:36. > :22:38.to local authorities by a formula, and my right honourable friend the

:22:39. > :22:48.Communities Secretary will set out details in due course. Taken...

:22:49. > :22:56.Taken together, Mr Deputy Speaker, this is a further ?435 million cut

:22:57. > :23:01.in business rates, targeted at those small businesses facing the biggest

:23:02. > :23:04.increases, protecting our pubs, and giving local authorities the

:23:05. > :23:10.resource to respond flexibly to local circumstances. Mr Deputy

:23:11. > :23:13.Speaker, just as a strong economy requires a tax system that is

:23:14. > :23:22.competitive, a strong society requires one that is fair. Because I

:23:23. > :23:26.have committed to funding my spending decisions, rather than

:23:27. > :23:31.borrowing more, I make no podgy for raising additional revenues and for

:23:32. > :23:35.doing so in ways which enhance the fairness of the system. -- I make no

:23:36. > :23:41.apology. First and foremost, that means collecting the taxes that are

:23:42. > :23:48.due. Since 2010, we have secured ?140 billion by taking robust action

:23:49. > :23:53.to tackle avoidance, evasion and noncompliance. This has helped the

:23:54. > :23:57.UK attain one of the lowest tax gaps in the world, but in this Budget we

:23:58. > :24:00.set out further actions to stop businesses from converting capital

:24:01. > :24:06.losses into trading losses, to tackle abuse of foreign pension

:24:07. > :24:09.schemes, to introduce UK VAT on roaming telecoms outside the EU in

:24:10. > :24:15.line with international standard practice, and from July we will

:24:16. > :24:19.introduce a new financial penalty for professionals who enable a tax

:24:20. > :24:26.avoidance arrangement that is later defeated by HMRC. Taken together,

:24:27. > :24:32.these measures will raise ?820 million over the forecast period.

:24:33. > :24:37.But, Mr Deputy Speaker, as well as collecting taxes that are due, a

:24:38. > :24:41.fair system ensures that those with the broadest shoulders bear the

:24:42. > :24:49.heaviest burden. As a result of the changes we have made since 2010, the

:24:50. > :24:55.top 1% of income taxpayers now pay 27% of all income tax, a higher

:24:56. > :25:02.proportion than in any year under the last Labour government. But a

:25:03. > :25:06.fair system, a fair system will also ensure fairness between individuals,

:25:07. > :25:12.so that people doing similar work for some low wages, and enjoying

:25:13. > :25:16.similar state benefits, pay similar levels of tax. As our economy

:25:17. > :25:19.responds to the challenges of globalisation, shifting demographics

:25:20. > :25:24.and the emergence of new technologies, we've seen a dramatic

:25:25. > :25:27.increase in the number of people working as self-employed or through

:25:28. > :25:31.their own companies, indeed many of our most highly paid professionals

:25:32. > :25:36.work through limited liability partnerships and are treated as

:25:37. > :25:39.seldom ploy. There are many good reasons for choosing to be

:25:40. > :25:45.self-employed, or working through a company. Indeed, Mr Deputy Speaker,

:25:46. > :25:49.I have done both in my time. And I will always encourage and support

:25:50. > :25:52.the entrepreneurs and the innovators who are the lifeblood of our

:25:53. > :26:00.economy, people should have choices about how they work, but the choice

:26:01. > :26:03.should not be judged primarily by differences in tax treatment. My

:26:04. > :26:07.right honourable friend the Prime Minister has asked Matthew Taylor,

:26:08. > :26:11.the chief executive of the RSA, to consider the wider implications of

:26:12. > :26:16.different employment practices and I look forward to his final report in

:26:17. > :26:18.the summer, and I am grateful to him for sharing his preliminary

:26:19. > :26:23.thoughts. He is clear that differences in tax treatment are a

:26:24. > :26:27.key driver behind the trends we are observing, a conclusion which is

:26:28. > :26:33.shared by the IFS and the Resolution Foundation. An employee earning

:26:34. > :26:41.?32,000 will incur between him and his employer ?6,170 of national

:26:42. > :26:47.insurance contributions. A self-employed person earning the

:26:48. > :26:55.equivalent amount will pay just ?2300, significantly less than half

:26:56. > :27:01.as much. Historically, the differences in NICs reflected a

:27:02. > :27:03.difference in state pension entitlement and contributory welfare

:27:04. > :27:07.benefits, but with the introduction of the new state pension last year,

:27:08. > :27:12.these differences have been very substantially reduced. Self-employed

:27:13. > :27:17.workers now build up the same entitlement to a state pension as

:27:18. > :27:21.employees, a big pension boost for the self employed. The most

:27:22. > :27:25.significant remaining area of difference is in relation to

:27:26. > :27:28.parental benefits, and I can announce today that we will consult

:27:29. > :27:36.in the summer on options to address the disparities in this area, as the

:27:37. > :27:38.FSB and others have proposed. Mr Deputy Speaker, the difference in

:27:39. > :27:44.national insurance contributions is no longer justified by the

:27:45. > :27:46.difference in benefit entitlements. Such dramatically different

:27:47. > :27:52.treatment of two people earning essentially the same undermines the

:27:53. > :27:58.fairness of our tax system. Employed and self-employed alike, use our

:27:59. > :28:02.public services in the same way, but they are not paying for them in the

:28:03. > :28:08.same way. The lower national insurance paid by the self-employed

:28:09. > :28:13.is forecast to cost our public finance billions this year alone.

:28:14. > :28:19.This is not fair to the 85% of workers who are employees. The

:28:20. > :28:22.abolition of class two NICs for self employed people, announced by my

:28:23. > :28:28.right honourable friend the member for Tatton in 2016, and due to take

:28:29. > :28:32.effect in 2018, would further increase the gap between employment

:28:33. > :28:38.and self-employment. To be able to support our public services in this

:28:39. > :28:42.Budget, and to improve the fairness of the system, I will act to reduce

:28:43. > :28:47.the gap to better reflect the current differences in state

:28:48. > :28:51.benefits. I have considered, Mr Deputy Speaker, the possibility of

:28:52. > :28:56.simply reversing the decision to abolish class two contributions, but

:28:57. > :29:01.the class two NIC is aggressive and outdated. It is absolutely right

:29:02. > :29:06.that it should go, so instead, from April 2018, when it is abolished,

:29:07. > :29:11.the main rate of class four NICs for the self-employed will increase by

:29:12. > :29:18.1% up to 10%, with a further 1% increase in April 2019. The

:29:19. > :29:21.combination of the abolition of class two and the class four

:29:22. > :29:32.increases I have announced today raises a net ?145 million a year for

:29:33. > :29:37.our public services by 2021-22, an average of around 60p per week per

:29:38. > :29:42.self-employed person in this country. And since class two

:29:43. > :29:47.contributions are payable at a flat rate, while class four is chargeable

:29:48. > :29:53.as a proportion of profits, all self-employed people earning less

:29:54. > :30:01.than ?16,250 will still see a reduction in the total NICs bill.

:30:02. > :30:04.This change reduces the unfairness in the NICs system and reflect more

:30:05. > :30:09.accurately the current differences in benefits available from the

:30:10. > :30:14.state. Mr Deputy Speaker, alongside the gap between employees and the

:30:15. > :30:15.self-employed, there is a parallel unfairness in the treatment of those

:30:16. > :30:32.working through their own companies. Britain has the most competitive

:30:33. > :30:37.corporate tax regime in the #2k3w7. We must ensure that our corporate

:30:38. > :30:42.tax regime does not encourage people across the country to form companies

:30:43. > :30:48.to reduce tax liabilities, pushing the burden of financing our public

:30:49. > :30:52.services on to others. HRMC estimates that existing corporations

:30:53. > :30:56.cost the public finances over ?6 billion a year and the OBR forecasts

:30:57. > :31:03.that at the current rate of increase an additional annual cost to the

:31:04. > :31:13.exchequer will occur from those chosing to incorporate of ?3.5

:31:14. > :31:17.billion a year by 2021-22. The gap in total tax and NICs between an

:31:18. > :31:21.employed worker and one who has set up his own company will be even

:31:22. > :31:24.greater than the self-employed and there are perfectly legal ways in

:31:25. > :31:30.which that gap can be made bigger still. It is not fair and not

:31:31. > :31:33.affordable. Fairness demands this discrepancy and treatment has

:31:34. > :31:36.addressed, just as I have addressed the discrepancy with the

:31:37. > :31:40.self-employed. The dividend allowance has increased the tax

:31:41. > :31:44.advantage of incorporation. It allows each director shareholder to

:31:45. > :31:49.take ?5,000 of dividends out of their company, tax-free, over an

:31:50. > :31:54.above the personal allowance. It is also an extremely generous tax break

:31:55. > :32:00.for investors with substantial share portfolios. I have decides,

:32:01. > :32:02.therefore, to address the unfairness around director shareholders' tax

:32:03. > :32:08.advantage and at the same time, raise some much-needed revenue to

:32:09. > :32:13.fund the measures I shall announce today, by reducing the tax-free

:32:14. > :32:19.dividend allowance from ?5,000, to ?2,000, with effect from April 2018.

:32:20. > :32:23.About half the people affected by this measure are director

:32:24. > :32:30.shareholders of private companies. The rest are investors in shares

:32:31. > :32:35.with holdings worth typically, over ?50,000, outside ISAs and of course

:32:36. > :32:40.everyone will benefit from the generous ?4,760 increase in the

:32:41. > :32:49.annual ISA allowance to ?20,000 and a further increase in the personal

:32:50. > :32:53.allowance to ?11,500 from April. Mr Deputy Speaker, I now turn to

:32:54. > :32:57.duties and levies and unusually for a Chancellor I'm delighted to

:32:58. > :33:03.announce a reduction in the expected yield of a tax. The soft drinks

:33:04. > :33:09.levy. I can confirm today the final rates of 18 and 24p per litre for

:33:10. > :33:11.the main and higher bands respectively but producers are

:33:12. > :33:16.already reformulating sugar out of their drinks which means a lower

:33:17. > :33:22.revenue forecast for this tax. This is good news for our children. And

:33:23. > :33:28.in further good news for them today, I can confirm that we will nobbled

:33:29. > :33:31.fund DFE with the full ?1 billion we originally expected from the levy

:33:32. > :33:38.this Parliament to invest in school ports and healthy living programmes.

:33:39. > :33:45.I am freezing, for another year the VED rates for hauliers and the HGV

:33:46. > :33:49.road user levy. I'm introducing a new minimum excise duty on

:33:50. > :33:53.cigarettes based on a pack price of ?7.35 and I can also confirm I will

:33:54. > :33:55.make no changes to previously planned upratings of duties on

:33:56. > :34:00.alcohol and tobacco. The tax measures I have announced

:34:01. > :34:04.enhance the sustainability of our public services into the future and

:34:05. > :34:09.by improving the fairness of the system, helps us to keep tax rates

:34:10. > :34:14.low. Mr Deputy Speaker, economic policy

:34:15. > :34:21.does not exist in a vacuum and economic growth is a means, not an

:34:22. > :34:24.end in itself. The objective of our economic policy is to support

:34:25. > :34:29.ordinary working families and to build an economy that works for

:34:30. > :34:37.them. And on this side of the House, we know that we can only achieve

:34:38. > :34:40.rising living standards and deliver vote. In vital public services, if

:34:41. > :34:45.if we have a strong economy and sustainable public finances. It is a

:34:46. > :34:49.simple proposition, Mr Deputy Speaker, yet one which the

:34:50. > :34:53.Opposition front bench seems to find strangely difficult to understand.

:34:54. > :34:58.We start from a strong base. Real wages have grown for 27 straight

:34:59. > :35:03.months. The wages of the lowest paid grew faster last year than in any of

:35:04. > :35:07.the previous 20 years. And the poorest households have seen their

:35:08. > :35:12.labour incomes rise more since 20 #10e in the UK, than in any other

:35:13. > :35:17.country in the G7. -- since 2010. Last year we

:35:18. > :35:20.delivered a pay rise to over a million of the lowest paid through

:35:21. > :35:24.the national living wage and next month we take more steps to support

:35:25. > :35:32.worker families with the cost of living. The national living wage

:35:33. > :35:37.will rise again to ?7.50 in April, over ?500 more for full-time worker

:35:38. > :35:40.than this year and ?1,400 more than when the national living wage was

:35:41. > :35:47.introduced. The personal allowance will rise for the 7th year in a row

:35:48. > :35:52.to ?11,500 and the higher rate threshold to ?45,000. 29 million

:35:53. > :35:57.people will be better off with a typical basic rate taxpayer paying

:35:58. > :36:04.?1,000 less than in 2010. And we will meet our manifesto

:36:05. > :36:06.commitment to increasing the thresholds to ?12,500 and ?50,000

:36:07. > :36:11.respectively by the end of this Parliament.

:36:12. > :36:16.Mr Deputy Speaker, I can also confirm today that the new NS I

:36:17. > :36:22.bond which I announced at Autumn Statement will be available from

:36:23. > :36:26.April and will pay 2.2% on deposits up to ?3,000, a welcome break for

:36:27. > :36:34.hard-pressed savers and the Universal Credit taper rate will be

:36:35. > :36:38.reduced in April from 56% to 63%, cutting tax for 3 million families

:36:39. > :36:43.on low income. Next month, we will see the

:36:44. > :36:48.introduction of our flagship tax-free childcare policy. That will

:36:49. > :36:53.allow working families across the UK to receive up to ?2,000 a year,

:36:54. > :36:57.towards the cost of childcare, for each child under 12. The scheme will

:36:58. > :37:02.be rolled out to all eligible parents by the end of the year. And

:37:03. > :37:06.from September, in addition, working parents with three and

:37:07. > :37:11.four-year-olds will get their free childcare entitlement doubled to 30

:37:12. > :37:16.hours a week. That, Mr Deputy Speaker, is worth around ?5,000 a

:37:17. > :37:20.year to a young family with a three-year-old, and both parents

:37:21. > :37:24.working. By the end of this Parliament, this Government will be

:37:25. > :37:29.spending on childcare ?6 billion a year.

:37:30. > :37:37.These childcare measures represent a further huge step forward in support

:37:38. > :37:41.for ordinary working families and for women in the work place. And I

:37:42. > :37:42.am delighted to use the occasion of International Women's Day to

:37:43. > :37:46.announce three additional measures. Well not quite announce them, Mr

:37:47. > :37:56.Deputy Speaker, because my right honourable friend the Prime Minister

:37:57. > :38:02.has already announced two of them. It is National Women's Day. It says

:38:03. > :38:05.here - "I will commit a further ?20 million of Government funding to

:38:06. > :38:09.support the campaign against violence against women and girls."

:38:10. > :38:12.Which does, as my right honourable friend said earlier, take the

:38:13. > :38:18.Government's commitment to this campaign to over ?100 million in

:38:19. > :38:23.this Parliament. That is on top of the tampon tax which today delivers

:38:24. > :38:28.another ?12 million in support of women's charities across the United

:38:29. > :38:31.Kingdom. The Prime Minister earlier also

:38:32. > :38:36.mentioned that the Government will commit fought ?5 million to

:38:37. > :38:38.promoting returnships to the public and private sector, helping people

:38:39. > :38:45.back into employment after a career break.

:38:46. > :38:49.Mr Deputy Speaker, as next year is the centenary of the 1918

:38:50. > :38:53.Representation of the People Act, the decisive step in the political

:38:54. > :38:59.emans pays of women in this country, I will commit a further ?5 million

:39:00. > :39:04.to are projects to celebrate this centenary and to educate young

:39:05. > :39:06.people about its significance. Mr Deputy Speaker, as well as knowing

:39:07. > :39:10.the Government is on their side, people want to know that they are

:39:11. > :39:14.getting a good deal from private markets too.

:39:15. > :39:21.A well-functioning market economy is the best way to deliver prosperity

:39:22. > :39:25.and security to working families and the litany of failed attempts of

:39:26. > :39:29.state control of industry by labour, leaves no-one in any doubt about

:39:30. > :39:36.that, except, apparently the right honourable gentleman opposite, who

:39:37. > :39:37.is now so far down a black hole that even Stephen Hawking has disowned

:39:38. > :39:50.him. This Government, Mr Deputy Speaker,

:39:51. > :39:53.recognises that sometimes markets, particularly in fast-developing

:39:54. > :39:58.areas of the economy, can fail people. Sometimes the market does

:39:59. > :40:02.not deliver the outcome the textbooks suggests it should and

:40:03. > :40:06.when that happens, this Government will not hesitate to intervene. We

:40:07. > :40:11.will shortly bring forward a green paper on protecting the interests of

:40:12. > :40:16.consumers. But, ahead of the green paper, we will take the first steps

:40:17. > :40:22.to protect consumers from unexpected fees or unfair clause, to simplifies

:40:23. > :40:29.T . Krs and to give consumer bodies great enforcement powers. --

:40:30. > :40:33.simplify Ts Cs. Together this will boost incomes, help family budgets

:40:34. > :40:41.stretch further, support parents back into Bosch and tackle some of

:40:42. > :40:45.the frustrations that sometimes make it feel that the dice are load he

:40:46. > :40:49.had against ordinary people going about their ordinary lives. This

:40:50. > :40:53.House knows that the only sensible way to raising living standards is

:40:54. > :40:58.to improve the productivity growth. Simply put - higher productivity

:40:59. > :41:03.means higher pay. The stats are well-known with 35% behind Germany,

:41:04. > :41:07.18% behind the G7 average average and the gap is not closing. Mr

:41:08. > :41:10.Deputy Speaker, investment in training and investment in

:41:11. > :41:16.infrastructure will start to close this gap. And this Government places

:41:17. > :41:20.addressing the UK's productivity challenge at the very heart of its

:41:21. > :41:25.economic plan. Because the cornerstone of an economy that works

:41:26. > :41:35.for everyone must be rising living standards for ordinary working

:41:36. > :41:38.people. . The key elements of our plan is the additional investment

:41:39. > :41:43.from infrastructure that I announced at the Autumn Statement. Today to

:41:44. > :41:47.enhance the UK's position as a world leader in science and innovation I'm

:41:48. > :41:51.allocating ?300 million of that fund to support the brightest and best

:41:52. > :41:54.research talent, including support for 1,000 new PhD places and

:41:55. > :42:03.fellowships, focussed on stem subjects. ?270 million to keep the

:42:04. > :42:06.UK at the forefront of disruptive technologies like biotech, robotic

:42:07. > :42:08.systems and driverless vehicles, technology I believe that the party

:42:09. > :42:29.opposite knows something about. ?16 million for a new 5G mobile

:42:30. > :42:32.technology hub and ?200 million for local projects to leverage private

:42:33. > :42:37.sector investment in full fibre broadband networks. On transport,

:42:38. > :42:43.I'm today announcing ?90 million for the North and ?23 million for the

:42:44. > :42:49.Midlands from a ?220 million fund that addresses pinchpoints on the

:42:50. > :42:54.national road network and I'm launching a ?690 million competition

:42:55. > :42:57.for local authorities across England to tackle urban congestion and get

:42:58. > :43:00.local transport networks moving again. My right honourable friend

:43:01. > :43:05.the Transport Secretary will announce details shortly.

:43:06. > :43:07.And because we believe local areas understand local productivity

:43:08. > :43:10.barriers better than central government, we make further progress

:43:11. > :43:14.with our plans to bolster the regions.

:43:15. > :43:19.In May, powerful mayors will be elected in six of our great cities.

:43:20. > :43:23.Across Britain, local areas will take control of their own economic

:43:24. > :43:30.destiny and we will support them to do so. I can inform the House that I

:43:31. > :43:34.have reached a deal with the Mayor of London on further devolution. I

:43:35. > :43:37.will follow the launch of the foreign powerhouse strategy at

:43:38. > :43:42.Autumn Statement by publishing tomorrow our Midlands energy are

:43:43. > :43:50.strategy, addressing productivity barriers across the Midlands.

:43:51. > :43:53.-- Midlands engine strategy. And for the desolved administrations, our

:43:54. > :43:57.announcements today deliver additional funding of ?350 million

:43:58. > :44:02.for the Scottish Government, ?200 million... #

:44:03. > :44:29.CHEERS Inaudible shouts

:44:30. > :44:32.Let's just move on. We are doing very W let's not spoil a good day.

:44:33. > :44:38.#k078 on, Chancellor of the Exchequer.

:44:39. > :44:42.-- come on. Wait for it. ?200 million for the Welsh Government.

:44:43. > :44:48.And almost ?120 million for an incoming Northern Ireland executive.

:44:49. > :44:52.Demonstrating, Mr Deputy Speaker, once again, that we are stronger

:44:53. > :45:03.together in this great United Kingdom.

:45:04. > :45:07.Mr Deputy Speaker, Mr Deputy Speaker, perhaps the single most

:45:08. > :45:11.important thing government can do to support ordinary working families is

:45:12. > :45:15.to invest in the future so that their children and grandchildren can

:45:16. > :45:20.make the most of the opportunities ahead. That means addressing the

:45:21. > :45:23.skills gap and ensuring that every child, regardless of background, has

:45:24. > :45:30.the opportunity to go to a good or outstanding school. At Autumn

:45:31. > :45:34.Statement, I focused on investment in infrastructure and R The next

:45:35. > :45:38.step today in our plan to raise productivity and living standards is

:45:39. > :45:46.to focus on the quality of our children's education. Mr Deputy

:45:47. > :45:49.Speaker, while investing in education and skills of course helps

:45:50. > :45:54.to tackle the productivity gap, delivering greater prosperity, it

:45:55. > :45:57.does something else as well. It delivers greater fairness. Because

:45:58. > :46:03.investing in skills and education is the key to inclusive growth, to an

:46:04. > :46:07.economy that works for everyone. Mr Deputy Speaker, if you talk to

:46:08. > :46:11.people from any background, in any part of the country, about their

:46:12. > :46:15.hopes and aspirations for the future, you will hear a recurring

:46:16. > :46:17.concern for the next generation # row will they have the

:46:18. > :46:21.qualifications to find a job, will it have the skills to retrain as

:46:22. > :46:26.that job changes and changes again over a working lifetime? Will they

:46:27. > :46:29.be able to get on the housing ladder, to save for a pension? In

:46:30. > :46:34.short, the question that concerns so many people is, will our children

:46:35. > :46:42.enjoy the same opportunities that we did. Mr Deputy Speaker, our job is

:46:43. > :46:47.to make sure that they do, and that is why we are investing in education

:46:48. > :46:51.and skills, to ensure that every young person, whatever their

:46:52. > :46:55.background, wherever they live, has the opportunity to succeed and

:46:56. > :47:00.prosper. The proportion of young people not in work or education is

:47:01. > :47:04.now the lowest since records began. That is a good base from which to

:47:05. > :47:08.build, but it is only by equipping them for the jobs of tomorrow that

:47:09. > :47:12.we ensure that they will have real economic security. We have put

:47:13. > :47:17.education reform at the heart of our agenda since 2010, and that

:47:18. > :47:23.commitment, that commitment is already paying off. 89% of schools

:47:24. > :47:27.in England are now rated good or outstanding, the highest proportion

:47:28. > :47:31.ever recorded. What that means, Mr Deputy Speaker, is 1.8 million more

:47:32. > :47:38.children being taught in good or outstanding schools than when the

:47:39. > :47:42.party opposite left office in 2010. Our forthcoming schools white paper

:47:43. > :47:47.will ask universities and private schools to sponsor new free schools.

:47:48. > :47:51.It will remove the barriers that prevent more good faith based free

:47:52. > :47:54.schools from opening and enable the creation of new selective free

:47:55. > :47:59.schools so that the most academically gifted children, of

:48:00. > :48:06.every background, get the specialist support they need to fulfil their

:48:07. > :48:12.potential. Today, I can announce funding for a further 110 new free

:48:13. > :48:17.schools, on top of the current commitment to 500. This will include

:48:18. > :48:21.new specialist maths schools to build on the clear success of Exeter

:48:22. > :48:25.mathematics school, and King's College London maths school, which

:48:26. > :48:28.my right honourable friend the Prime Minister visited earlier this week.

:48:29. > :48:39.We commit to this programme because we understand that choice is the key

:48:40. > :48:44.to excellence in education. But, Mr Deputy Speaker, we recognise that,

:48:45. > :48:49.for many parents, the cost of travel can be a barrier to exercising that

:48:50. > :48:54.choice. Pupils typically travel three times as far to attend

:48:55. > :48:59.selective schools, so we will extend free school transport to include all

:49:00. > :49:07.children on free school meals who attend a selective school, because

:49:08. > :49:08.we, Mr Deputy Speaker, are resolved that talent alone should determine

:49:09. > :49:23.the opportunities a child enjoys. And before they get too excited, Mr

:49:24. > :49:26.Deputy Speaker, we will invest in our existing schools too, by

:49:27. > :49:34.providing an additional, oh yes, we will, by providing an additional

:49:35. > :49:39.?216 million over the next three years, taking total investment in

:49:40. > :49:45.school condition to well over ?10 billion in this Parliament. Mr

:49:46. > :49:50.Deputy Speaker, good schools are the bedrock of our education system, but

:49:51. > :49:53.we need to do more to support our young adults into quality jobs and

:49:54. > :49:58.help them gain world class skills, and while we have academic wood that

:49:59. > :50:03.is one of the best in the world, the truth is that we languish near the

:50:04. > :50:08.bottom of the international league tables for technical education. Our

:50:09. > :50:14.rigorous, well-recognised system of A-levels provides students with the

:50:15. > :50:17.qualifications to move into our world-class higher education system,

:50:18. > :50:21.and we support these route further today by offering maintenance loans

:50:22. > :50:26.to part-time undergraduate and doctoral loans in all subjects for

:50:27. > :50:30.the first time. But long ago, Mr Deputy Speaker, our competitors in

:50:31. > :50:34.Germany, the US and elsewhere realised that, to compete in the

:50:35. > :50:40.fast-moving global economy, you have to link technical skills to jobs,

:50:41. > :50:42.and I am pleased to report, in National Apprenticeship Week, that

:50:43. > :50:47.our apprenticeship route is now finally delivering that ambition

:50:48. > :50:50.here, with 2.4 million apprenticeships started in the last

:50:51. > :50:54.Parliament, and with the launch of our apprenticeship levy in April

:50:55. > :51:00.supporting a further 3 million apprenticeships by 2020. But there

:51:01. > :51:06.is still a lingering doubt about the parity of esteem attaching to

:51:07. > :51:10.technical education pursued through the further education route. Today,

:51:11. > :51:19.we end that is doubtful good with the introduction of T-levels. Thanks

:51:20. > :51:23.to the work of Lord Sainsbury, Baroness will and other experts, we

:51:24. > :51:27.have a blueprint to follow. Their review concluded that students need

:51:28. > :51:30.a much clearer system of qualifications, one that is designed

:51:31. > :51:34.and recognised by employers with clear routes into work, more time in

:51:35. > :51:40.the classroom and good quality work placements. One that replaces the

:51:41. > :51:47.13,000 or so different qualifications with just 15 clear,

:51:48. > :51:51.career focused roots, delivering on those recommendations is the third

:51:52. > :51:56.part of our plan. So today we will invest to deliver in full these game

:51:57. > :52:03.changing reforms. We will increase by over 50% the number of hours'

:52:04. > :52:05.training for 16-19 -year-old technical students, including a

:52:06. > :52:10.high-quality three-month work placement for every student. So when

:52:11. > :52:17.they qualify, they are genuinely work ready. Once this programme is

:52:18. > :52:21.fully rolled out, Mr Deputy Speaker, we will be investing in an

:52:22. > :52:24.additional ?500 million a year in our 16-19 -year-olds, and to

:52:25. > :52:30.encourage and support the best of them to go on to advanced technical

:52:31. > :52:34.study, we will offer maintenance loans for those and taking higher

:52:35. > :52:38.level technical qualifications at the new Institute of Technology and

:52:39. > :52:45.national colleges, just as we do for those university. Putting the

:52:46. > :52:51.next-generation first to safeguard their future and secure our economy.

:52:52. > :52:55.Mr Deputy Speaker, because changing labour markets will mean that

:52:56. > :52:59.retraining is vital, with many of our young people today needing to

:53:00. > :53:04.retrain at least once, and perhaps more often during a working life

:53:05. > :53:09.that maize ban more than 50 years, we will consider how best to deliver

:53:10. > :53:14.high quality learning and training throughout working lives. The FA

:53:15. > :53:17.will invest up to ?40 million in pilots to test the fact is of

:53:18. > :53:23.different approaches to lifelong learning. -- DfE. So that we can

:53:24. > :53:28.identify what works best and help the next-generation learn train

:53:29. > :53:32.throughout their lives. Mr Deputy Speaker, just as the principle that

:53:33. > :53:36.every child should have the opportunity to fulfil his or her

:53:37. > :53:40.potential is central to this Government's values, so is the

:53:41. > :53:44.principle that everyone has access to our national Health Service when

:53:45. > :53:51.they needed and that everyone should enjoy security and dignity in old

:53:52. > :53:54.age. Today our social care system cares for over 1 million people, and

:53:55. > :54:00.I want to pay tribute to the hundreds of thousands of carers work

:54:01. > :54:05.in it. But the system is clearly under pressure, and this in turn

:54:06. > :54:11.puts pressure on our NHS. Today there are 500,000 more people aged

:54:12. > :54:15.over 75 than there were in 2010, and there will be 2 million more in ten

:54:16. > :54:21.years' time. That is why the Government has already delivered ?7

:54:22. > :54:24.billion extra spending power to the system over the next three years,

:54:25. > :54:28.and it is why we are ensuring that local authorities and the NHS work

:54:29. > :54:32.more closely together to enable elderly patients to be discharged

:54:33. > :54:36.when they are ready, freeing up precious NHS beds, and ensuring that

:54:37. > :54:42.elderly people are receiving the appropriate care for their needs. So

:54:43. > :54:48.today, Mr Deputy Speaker, I am committing additional grant funding

:54:49. > :54:54.of ?2 billion to social care in England over the next three years.

:54:55. > :55:03.Mr Deputy Speaker, that is ?2 billion over the next three years

:55:04. > :55:07.with ?1 billion available in 2017-18, this will allow local

:55:08. > :55:13.authorities to act now to commission new care packages and forms a bridge

:55:14. > :55:17.to the better care funding that becomes available towards the end of

:55:18. > :55:22.the parliament. Of course, Mr Deputy Speaker, this is not only about

:55:23. > :55:26.money. While there are many excellent examples of best practice

:55:27. > :55:31.around the country, at the other end of the scale, just 24 local

:55:32. > :55:37.authorities are responsible for over half of all delayed discharges to

:55:38. > :55:40.social care, so alongside additional funding, the health and communities

:55:41. > :55:43.secretaries will announce measures to identify and support authorities

:55:44. > :55:49.which are struggling and to ensure more joined up working with the NHS.

:55:50. > :55:54.These measures, and greater collaborative working and NHS

:55:55. > :55:57.sustainability and transformation plans, will bring short and

:55:58. > :56:03.medium-term benefits, but long-term challenges of sustainable funding

:56:04. > :56:07.for care in old age requires a strategic approach. And the

:56:08. > :56:10.Government will set out its thinking on the options for the future

:56:11. > :56:16.financing of social care in a green paper later this year. For the

:56:17. > :56:20.avoidance of doubt, Mr Deputy Speaker, I would like to make it

:56:21. > :56:30.clear that those options do not include, and never have included,

:56:31. > :56:34.exhuming Labour's hated death tax. The social care funding package that

:56:35. > :56:38.I have announced today will deliver immediate benefit to the NHS,

:56:39. > :56:44.allowing it to refocus on delivering the NHS England forward Plan A plan

:56:45. > :56:50.which this Government has supported with the ?10 billion increase in

:56:51. > :56:57.annual funding by 2020, ?4 billion in this year alone. We recognise the

:56:58. > :57:00.progress that the NHS is making in developing sustainability and

:57:01. > :57:04.transformation plans, and we recognise too, Mr Deputy Speaker,

:57:05. > :57:08.that in addition to the funding already committed, some of those

:57:09. > :57:11.plans will require further capital investment. So the Treasury will

:57:12. > :57:17.work closely with the Department of Health over the summer, as the

:57:18. > :57:20.programmes are prioritised and progress, and that autumn budget, I

:57:21. > :57:27.will announce a multi-year capital programme to support implementation

:57:28. > :57:31.of high-quality STPs across the health service in England. In the

:57:32. > :57:35.meantime, my right honourable friend the Health Secretary expects that a

:57:36. > :57:44.small number of the strongest STPs may be ready ahead of autumn budget,

:57:45. > :57:48.so I am allowing more capital to allow the first selected plans to

:57:49. > :57:53.proceed. Mr Deputy Speaker, I have one further announcement relating to

:57:54. > :57:58.the NHS. The social care package that I have announced today will

:57:59. > :58:01.help to free up beds by easing discharge of elderly patients. That

:58:02. > :58:05.is one of the two big pressures in our hospitals. The other is

:58:06. > :58:12.inappropriate A attendances by people of all ages. Experience has

:58:13. > :58:17.shown that on-site GP triage in A departments can have a significant

:58:18. > :58:22.and positive impact on A waiting times. I am therefore making a

:58:23. > :58:28.further ?100 million of capital available immediately for new triage

:58:29. > :58:35.project at English hospitals in time for next winter. Mr Deputy Speaker,

:58:36. > :58:40.this government backs the NHS's plan. We are funding it with a ?10

:58:41. > :58:44.billion above inflation increase by 2020. We have addressed the

:58:45. > :58:49.pressures on the NHS from the social care system with a total of ?9.25

:58:50. > :58:53.billion additional resources. We will protect the NHS from the

:58:54. > :58:58.effects of the changed personal injury discount rate and have set

:58:59. > :59:05.aside ?5.9 billion across the forecast period to do so. And today

:59:06. > :59:08.we have made it clear them up -- a clear new commitment to a capital

:59:09. > :59:13.programme to find high-quality STPs with the first down payment for the

:59:14. > :59:19.early pioneers. Mr Deputy Speaker, as the voters of Copeland so clearly

:59:20. > :59:26.understood, we are the party of the NHS!

:59:27. > :59:32.Mr Deputy Speaker, we are the party of the NHS colours we have not just

:59:33. > :59:37.the commitment and the will, but also the economic plan that will

:59:38. > :59:45.secure the future of our most important public service. Mr Deputy

:59:46. > :59:50.Speaker, last November, I set out our plan to build an economy that

:59:51. > :59:54.works for everyone, to enhance our productivity and protect our living

:59:55. > :00:00.standards, to restore our public finances to balance, and to invest

:00:01. > :00:05.for our future. Today's OBR report confirms the continued resilience of

:00:06. > :00:09.the British economy, and that this Budget we continue with our plan,

:00:10. > :00:15.building on the foundation of our economic strength, reaching out to

:00:16. > :00:20.seize the opportunities that lie ahead, backing our public services,

:00:21. > :00:24.supporting Britain's families, investing in the skills of our young

:00:25. > :00:30.people, and making Britain the best place in the world to do business.

:00:31. > :00:36.Mr Deputy Speaker, our United Kingdom has a proud history - we

:00:37. > :00:41.have done remarkable things together. But we look forwards, not

:00:42. > :00:47.backwards, confident that our greatest achievements are ahead of

:00:48. > :00:51.us. Today we reaffirm our commitment to invest in Britain's future, and

:00:52. > :00:58.we embark on this next chapter of our history confident in our

:00:59. > :01:01.strengths and clear in our determination to build a stronger,

:01:02. > :01:09.there, better Britain. I commend this Budget to the House.

:01:10. > :01:12.STUDIO: The Chancellor, Philip Hammond, the conclusion of his first

:01:13. > :01:17.Budget speech. We will be back in the Commons in a moment, because, of

:01:18. > :01:22.course, we will get the response from Labour's Jeremy Corbyn, who was

:01:23. > :01:25.the butt of quite a few criticisms there from the Chancellor as he went

:01:26. > :01:29.through the statement. Let's look at some of the main measures quickly

:01:30. > :01:32.before we go back to the Commons. They include ?2 billion of

:01:33. > :01:36.additional funding over three years for adult social care in England.

:01:37. > :01:40.That's been one of the main focuses over the past few months. The

:01:41. > :01:44.pressure on the social care system. He has allocated an extra ?2 billion

:01:45. > :01:46.over three years. Big changes in national insurance, because the

:01:47. > :01:49.national insurance for self-employed workers is to increase by 1% to 10%

:01:50. > :01:52.in April 2018 and again after that. workers is to increase by 1% to 10%

:01:53. > :01:56.in April 2018 and again after that. There will be talk about that. We

:01:57. > :02:00.will discuss it here in the studio and of course on business rates,

:02:01. > :02:04.because lots of businesses, concerned after the revaluation

:02:05. > :02:09.about the impact, ?1,000 business rate discount for pubs in England

:02:10. > :02:13.with the rateable value of under ?100,000, that accounts for 90% or

:02:14. > :02:20.so of all the pubs in England. It affects lots of them. Let's look at

:02:21. > :02:28.the other main measures: ?300 million for businesses facing large

:02:29. > :02:31.rates increases. A reduction of tax redifficultened allowance for ?5,000

:02:32. > :02:35.to ?2,000 in April 2018. That will affect directors who are

:02:36. > :02:40.shareholders and the sugar tax levy confirmed at 18 p and 24 p per later

:02:41. > :02:45.for main and higher bands. Those are the main measures. Now we will go

:02:46. > :02:49.back into the chamber. The Deputy Speaker is basically going through

:02:50. > :02:51.some of the financial measures, some of the technical demands on the

:02:52. > :02:55.House at this point. I think of the technical demands on the

:02:56. > :03:00.House at this point. I think that Labour's Jeremy Corbyn will be on

:03:01. > :03:04.his feet within a few seconds. Maybe time for a comment from Laura?

:03:05. > :03:09.Interesting to see Philip Hammond, normally a very dead pan politician

:03:10. > :03:11.feeling relaxed and confident enough to be frequently cracking jokes

:03:12. > :03:15.throughout that Budget. Very interesting indeed. The big

:03:16. > :03:20.challenge is whether the rhetoric - we heard lots of the use of the word

:03:21. > :03:23."fairness", matches the reality. This was a Budget of utter

:03:24. > :03:31.complacency about the state of our economy. Utter complacency about the

:03:32. > :03:35.crisis facing our public services and, complacent about the reality of

:03:36. > :03:41.daily life for millions of people in this country. Entirely out of touch

:03:42. > :03:49.with that reality of life for millions. This morning, over ?1

:03:50. > :03:54.million workers will have woken up, not knowing whether they'll work

:03:55. > :03:58.today, tomorrow or next week. Millions more workers know their

:03:59. > :04:05.next pay packet will not be enough to make ends meet. Millions

:04:06. > :04:08.struggling to pay rent or mortgage, with private renters, on average,

:04:09. > :04:15.paying nearly half their income on rent. Yesterday, Mr Deputy Speaker,

:04:16. > :04:22.over 3,000 people in this country will have queued up at food banks to

:04:23. > :04:27.feed themselves and their families. Last night, Mr Deputy Speaker over

:04:28. > :04:33.4,000 people will have slept rough on the streets of this country. And

:04:34. > :04:39.the Chancellor made his boast about a strong economy. But who is reaping

:04:40. > :04:45.the rewards of this economy? For millions, it is simply not working.

:04:46. > :04:51.Not working for the NHS. In its worse crisis ever, with funding

:04:52. > :04:57.being cut next year. Not working for our children's schools. Not working

:04:58. > :05:03.for our children's schools, where pupil funding continues to be cut.

:05:04. > :05:08.Not work for our neighbourhoods which have lost 20,000 police

:05:09. > :05:15.officers. Leaving the force in a perilous state in many parts of the

:05:16. > :05:20.country. And not working for our dedicated public services and the

:05:21. > :05:26.people who work in them. Nurses, firefighters, teachers, no pay rise

:05:27. > :05:31.for seven years for them. And for people with disabilities,

:05:32. > :05:36.who are twice as lakely to be living in poverty -- twice as likely, and

:05:37. > :05:41.this Government is denying them the support that the courts say they

:05:42. > :05:46.need. 4 million children living in poverty which will rise by another 1

:05:47. > :05:49.million in coming years. Not working for the thousands of young people,

:05:50. > :05:54.who can't get anywhere to live, can't get on the housing ladder and

:05:55. > :05:59.cannot, in many cases, leave the parental home.

:06:00. > :06:04.Parents of grown-up children, who would expect to be debt-free by now,

:06:05. > :06:11.but having to bail out student debt or try to help with a deposit to get

:06:12. > :06:14.housing, if they can manage it and a million elderly people and I'll come

:06:15. > :06:18.on to this again, denied the social care they need due to the ?4.6

:06:19. > :06:23.billion cuts made by his Government with the support of the Liberal

:06:24. > :06:27.Democrats over the past five years. Not for pensioners, for whom the

:06:28. > :06:35.security of the triple lock remains in doubt. Mr Deputy Speaker, that is

:06:36. > :06:39.the reality facing Britain today. A Government cutting services, and

:06:40. > :06:44.living standards of the many, top fund and continue to fund the tax

:06:45. > :06:48.cuts of the few. There are some people, Mr Deputy Speaker, who are

:06:49. > :06:55.doing very well under the Conservative Government. The chief

:06:56. > :07:01.executives of big companies, now paid 180 times more than the average

:07:02. > :07:06.worker and taxed less. Big corporations making higher

:07:07. > :07:10.profits than being taxed less. Speculators making more and being

:07:11. > :07:23.taxed less. And wealthiest families taxed less,

:07:24. > :07:27.due to cuts in inheritance tax. A give way to those who need it the

:07:28. > :07:31.least. This Government is a Government with the wrong priority.

:07:32. > :07:36.Let me give you three examples: The pain of losing a child is

:07:37. > :07:42.unimaginable for most of us. But for those who do that, that pain is

:07:43. > :07:47.worsened by the stress of having to pay for their own child's funeral. I

:07:48. > :07:51.pay tribute to my friend, the member for Swansea East, for her campaign

:07:52. > :07:56.to establish a Children's Funeral Fund but far from establishing such

:07:57. > :07:58.a fund costing just ?10 million a year, the Government is instead

:07:59. > :08:03.cutting support for bereaved families. Three in four bereaved

:08:04. > :08:08.families will receive less. This is utterly the whatless.

:08:09. > :08:13.Despite generous tax give-aways at the top end, there was no money,

:08:14. > :08:18.either for the 160,000 people with disabilities that a court has ruled

:08:19. > :08:23.deserve a higher rate of personal independence payments. These are

:08:24. > :08:29.people with debilitating mental health conditions. Dementia,

:08:30. > :08:36.schizophrenia, post-traumatic stress disorder. The Prime Minister came to

:08:37. > :08:40.office talking about fighting burning injustices. Less than nine

:08:41. > :08:45.months later she seems to have forgotten all about them because

:08:46. > :08:52.none of them are being fought today. Low pay holds people back and it is

:08:53. > :08:56.holding our country back. We are the only major developed country in

:08:57. > :09:03.which economic growth has returned, yet workers are worse off, wages are

:09:04. > :09:07.still below the 2008 level. Inflation rising, an urgent need to

:09:08. > :09:13.address the pressure on people's incomes. Massively rising personal

:09:14. > :09:17.debts. Rising energy bills and the cost of the weekly shop, transport

:09:18. > :09:20.costs and housing costs all rising. The Chancellor faced a series of

:09:21. > :09:25.tests as to whether he would stand on the same side of the people or

:09:26. > :09:30.not. He could have raised the minimum wage to the level of the

:09:31. > :09:36.living wage. The real living wage of ?10 per hour, as we, the Labour

:09:37. > :09:42.Party are pledged to do. It would pay for a pay rise for 6

:09:43. > :09:49.million people in this country, 62% of whom are women. He failed to do

:09:50. > :09:56.that. Since 2010, millions of public sector workers have endured a pay

:09:57. > :10:01.freeze and then a pay cut. Dedicated public servants who keep our

:10:02. > :10:05.services going, have lost over 9% of their real wages, or will have done

:10:06. > :10:12.by 2020. He could have ended the public

:10:13. > :10:17.sector pay cut, as we are pledged to do, and given a pay rise to 5

:10:18. > :10:21.million dedicated public servants who we all rely on day-in, day-out

:10:22. > :10:27.in our hospitals, our health service in general and our local government.

:10:28. > :10:32.He failed to do that. It's an insult to say they deserve falling living

:10:33. > :10:35.standards when we all know those in the public sector are working harder

:10:36. > :10:39.than ever, covering the jobs of those that have gone. There is a

:10:40. > :10:47.crisis, too, Mr Deputy Speaker in job security. Millions of workers

:10:48. > :10:53.don't know whether or not they'll be working from day to day. Millions of

:10:54. > :10:58.workers who don't know how many hours they'll be working this week

:10:59. > :11:04.or next week. Just imagine what it's like to try and plan your life if

:11:05. > :11:11.you don't know what your income is going to be from one week to the

:11:12. > :11:18.other. Because, Mr Deputy Speaker, that is the reality... Order. Can I

:11:19. > :11:22.just say to these benches, I want to hear the Leader of the Opposition. I

:11:23. > :11:27.don't want him shouted down because you may not be interested but our

:11:28. > :11:32.constituents out there want it hear what the alternative is. -- want to

:11:33. > :11:38.hear. If the whip wants to be funny he can

:11:39. > :11:42.go and get a cup of tea now. So, let's just show the same respect

:11:43. > :11:43.that was given to the Chancellor of the Exchequer.

:11:44. > :11:48.Jeremy Corbyn. Thank you Mr Deputy Speaker. There is nothing funny

:11:49. > :11:53.about being one of 900,000 workers on zero hours contracts. 55% of them

:11:54. > :11:59.women. He could have announced ban on zero hours contracts, as we are

:12:00. > :12:02.pledged to do. Again, he failed. But zero hours contracts, Mr Deputy

:12:03. > :12:10.Speaker, are only the tip of an iceberg. 4.5 million workers in

:12:11. > :12:14.Britain, in insecure work. 2.3 million working variable shift

:12:15. > :12:19.patterns, 1.1 million on temporary contracts. We have long argued to

:12:20. > :12:24.clamp-down on bogus self-employment but today the Chancellor seems to

:12:25. > :12:31.put the burden on self-employed workers instead. There has to be

:12:32. > :12:33.something for something deal, so I hope the Chancellor will bring

:12:34. > :12:39.forward extra Social Security in return. One policy that Labour

:12:40. > :12:44.backed, extending statutory maternity pay it self-employed

:12:45. > :12:49.women, which is likely to cost just ?10 million per year. -- to

:12:50. > :12:53.self-employed women. Low pay and insecure work have consequences for

:12:54. > :12:56.us all. Mr Deputy Speaker, in reality we all pay for low pay.

:12:57. > :13:06.There are a million working households having to claim housing

:13:07. > :13:08.benefited. Just get that figure. 1 million working households claiming

:13:09. > :13:13.housing benefit because their wages aren't enough to pay the rent and 3

:13:14. > :13:17.million working families who simply rely on tax credits to make ends

:13:18. > :13:23.meet. This is modern Britain. The most effective way of boosting wages

:13:24. > :13:26.and increasing job security, as all studies show, is actually to improve

:13:27. > :13:31.collective bargaining through a trade union. Words that the

:13:32. > :13:38.Chancellor did not use in his speech. But instead of a trade union

:13:39. > :13:41.act we have, which will further Shackell unions and perpetuate

:13:42. > :13:47.chronic low pay, which actually costs us all a lot of money through

:13:48. > :13:55.in-work benefits, we will promote collective bargaining and repeal the

:13:56. > :13:59.Trade Union Act. This is a Chancellor and a Government not on

:14:00. > :14:03.the side of the workers, not on the side of the tax payers who pick up

:14:04. > :14:06.the bill for low pay and insecure work. Mr Deputy Speaker, on

:14:07. > :14:15.International Women's Day, did the Chancellor deliver a Budget that

:14:16. > :14:17.works for women? According to the House of Commons' library analysis,

:14:18. > :14:23.commissioned by my friend, the member for Rotherham, who is doing a

:14:24. > :14:28.brilliant job speaking up for women from our front benches, 86% of the

:14:29. > :14:32.savings the Treasury has made from tax and benefits have fallen on

:14:33. > :14:38.women. Women's lives have been made more difficult through successive

:14:39. > :14:41.policies of this Government. Women struggling with more caring

:14:42. > :14:51.responsibility, due to the continuing state of emergency in

:14:52. > :14:54.social care. The Waspie women, born in the 1950s, who with little notice

:14:55. > :14:59.facing a crisis in retirement they could not possibly have predicted.

:15:00. > :15:03.54,000 women a year are forced out of their jobs through maternity

:15:04. > :15:07.discrimination. They can't afford this Government's extortionate fees,

:15:08. > :15:13.to take their employer to a tribunal in search of justice. Women up and

:15:14. > :15:17.down the country, who will have to wait another 60 years before the

:15:18. > :15:22.gender pay gap is closed. The hundreds, hundreds of women being

:15:23. > :15:27.turned away from domestic violence shelters every year, through lack of

:15:28. > :15:31.space or appropriate services, or because they have simply been

:15:32. > :15:33.closed. Mothers struggling, put under more pressure through cuts to

:15:34. > :15:45.Universal Credit and tax credits. If this wasn't bad enough, to cut

:15:46. > :15:49.tax credits for children who are born third or fourth in a family.

:15:50. > :15:53.Most shamefully, Mr Deputy Speaker, as of next month, women will have to

:15:54. > :15:57.prove that their third child is a product of rape if they wish to

:15:58. > :16:03.qualify for a child tax credits for that child. I paid tribute to my

:16:04. > :16:07.friend the member for Rotherham, and the honourable member for Glasgow

:16:08. > :16:15.Central, for their campaigning on this issue. I hope the Chancellor

:16:16. > :16:21.will reverse this cut. There is, Mr Deputy Speaker, a housing crisis, a

:16:22. > :16:25.crisis of supply and affordability. Since 2010, house building has

:16:26. > :16:29.fallen to its lowest rate in peace time since the 1920s. The building

:16:30. > :16:35.of social homes for rent is at its lowest level for a quarter of a

:16:36. > :16:38.century. Did he empower councils to tackle the housing crisis by

:16:39. > :16:42.allowing them to borrow to build council housing, as we are pledged

:16:43. > :16:47.to do? No! Have they replace council houses sold under right to buy, as

:16:48. > :16:52.they promised? No! Just one in six have been replaced! And was there

:16:53. > :16:58.any commitment to return to the council is the ?800 million right to

:16:59. > :17:02.buy proceeds the Treasury has taken back which would build 12,000 homes?

:17:03. > :17:08.No. Did he scrapped the unfair bedroom tax, as we are pledged to

:17:09. > :17:13.do? No. Did he reverse housing benefit cuts that would take support

:17:14. > :17:18.away from 10,000 young people, despite the opposition of Shelter,

:17:19. > :17:21.Crisis and centre point, which even the honourable member for Enfield

:17:22. > :17:27.Southgate correctly described as catastrophic? Last week, the

:17:28. > :17:31.Institute for Government said there were clear warning signs of the

:17:32. > :17:34.damaging impact of government cuts on schools, prisons, health and

:17:35. > :17:38.social care. This government has taken a sledgehammer to public

:17:39. > :17:41.services in recent years. The Chancellor now expects praise for

:17:42. > :17:47.patching up a small part of that damage. The Budget did not provide

:17:48. > :17:54.the funding necessary now for the crisis in our NHS. The BMA reckons

:17:55. > :17:58.it needs a next ?10 billion. It didn't provide the funding necessary

:17:59. > :18:04.to end the state of emergency and social care now, which needs to

:18:05. > :18:11.billion pounds a year just to plug the gaps, according to the King's

:18:12. > :18:16.Fund. That is not met by ?2 billion over three years. The money is

:18:17. > :18:20.needed now. More than 1 million people, mainly elderly people,

:18:21. > :18:26.desperate for social care, still can't get it. The money ought to be

:18:27. > :18:30.made available now. Because this government ducks really tough

:18:31. > :18:36.choices, like asking corporations to pay a little bit more in tax. Not

:18:37. > :18:41.every local authority can just text Neck and get the deal they won't!

:18:42. > :18:48.Another council services are suffering as well. Our communities

:18:49. > :18:52.are stronger when we have good libraries, and they are valuable,

:18:53. > :18:55.obviously for children, but for the entire community. 67 closed last

:18:56. > :19:03.year because of local government underfunding. 700 sure start centres

:19:04. > :19:06.closed because of lack of funding from local authorities, denying the

:19:07. > :19:10.life chances that a Labour government delivered to them with

:19:11. > :19:17.the opening of those centres in the 1990s. And 600 youth centres have

:19:18. > :19:23.closed as well. These painful decisions are being taken by

:19:24. > :19:25.councils not because they want to do it but because they don't enough

:19:26. > :19:30.money even to keep essential services running because of the

:19:31. > :19:34.slashing of their budgets year-on-year. And it goes on! It

:19:35. > :19:38.affect our communities and our lives in so many ways. Last year, councils

:19:39. > :19:44.proposed a sell-off of school playing fields to the equivalent of

:19:45. > :19:50.500 football pitches. 500 pitches not available for young people to

:19:51. > :19:53.indulge in sport. It is our duty as a community, surely, to ensure all

:19:54. > :19:56.our young people, wherever they live, have a decent chance to grow

:19:57. > :20:03.up with a library, with a playing field, with a Sure Start centre. It

:20:04. > :20:07.is not a lot to ask. The Chancellor boasts, Mr Deputy Speaker, of a

:20:08. > :20:11.strong economy, but abandons the target of the previous Chancellor,

:20:12. > :20:16.so let's give a more realistic context to today's figures. The

:20:17. > :20:21.deficits that was going to be eradicated in 2015, you all remember

:20:22. > :20:27.the long-term economic plan? The debt was going to peak at 80% of GDP

:20:28. > :20:33.and then start falling. Our economy is not prepared for Brexit. We still

:20:34. > :20:37.have an economy suffering from underinvestment and an overreliance

:20:38. > :20:43.on consumer spending and wholly unsustainable levels of personal and

:20:44. > :20:47.household debt. Investment must be evenly spread around our country.

:20:48. > :20:54.Despite the announcements today, London continues to receive six

:20:55. > :20:58.times as much investment as the north-east, and so that is why

:20:59. > :21:03.Labour is backing the fair funding formula for investment so that every

:21:04. > :21:07.area gets its fair share of capital spending. What has been announced

:21:08. > :21:12.today doesn't achieve that. You can't build a Northern Powerhouse or

:21:13. > :21:16.a Midlands Engine if the investment does not follow the sound bite. Our

:21:17. > :21:21.country currently spends 1.7% on research and development, well below

:21:22. > :21:26.the OECD average. The strongest economies spend over 3%. In the

:21:27. > :21:31.immediate term, and the Chancellor did not have much to say about this,

:21:32. > :21:35.he must focus his attention is on the precarious future of skilled

:21:36. > :21:45.workers and' jobs at Vauxhall in Ellesmere port in Luton and Ford in

:21:46. > :21:48.Bridgend. It would give these companies more confidence if the

:21:49. > :21:51.Government were committed to negotiating for tariff free access

:21:52. > :21:53.to the single market and dropped the reckless threat of turning Britain

:21:54. > :21:58.into a tax saving on the shores of Europe. One of the biggest

:21:59. > :22:03.challenges facing our country, Mr Deputy Speaker, is environmental, it

:22:04. > :22:08.is climate change. This government is failing to lead, failing to drive

:22:09. > :22:13.a mission led industrial strategy as our own business select committee

:22:14. > :22:17.has recommended. The Chancellor failed to make energy efficiency a

:22:18. > :22:21.National Infrastructure Plan and the. No commitment to establishing

:22:22. > :22:26.zero carbon standards on new building, and unclear about

:22:27. > :22:32.investments in public transport that will definitely reduce pollution.

:22:33. > :22:36.The poor air quality is appalling. It is killing thousands of people in

:22:37. > :22:41.this country. It is taking away the life chances of many children

:22:42. > :22:46.growing up alongside polluted roads. The good work being done by Labour's

:22:47. > :22:50.London Marathon, Sadiq Khan, the good work being done by the Labour

:22:51. > :22:54.government, has recognised this as an urgent public health crisis,

:22:55. > :23:01.particularly for children. We have to deal with this crisis and deal

:23:02. > :23:04.with it urgently. There cannot be, Mr Deputy Speaker, an industrial

:23:05. > :23:09.strategy or productivity gains unless there is serious investment

:23:10. > :23:13.in skills. Adult skills training cut by 54%, further education by 14%,

:23:14. > :23:19.and the small amounts committed today are long overdue but woefully

:23:20. > :23:24.insufficient. Over the coming years, the schools budget is being cut by

:23:25. > :23:27.8%. Does the Chancellor really want fewer teachers and teaching

:23:28. > :23:31.assistants, larger classes, shorter schooldays? Which is it? I agree

:23:32. > :23:34.with the Prime Minister that every child deserves a decent education,

:23:35. > :23:40.every community deserves decent schools. You do it by working with

:23:41. > :23:43.those communities to provide those schools, not blogging into them

:23:44. > :23:47.selective schools which are not being demanded by those communities.

:23:48. > :23:51.The money announced by the Prime Minister yesterday for the new

:23:52. > :23:55.grammar schools is frankly a vanity project. Cancel this gimmick,

:23:56. > :24:01.project selection and segregation, and why not honour their own 2050

:24:02. > :24:06.manifesto pledge to protect per-pupil funding, which is clearly

:24:07. > :24:10.not happening? -- 2015. This is a Budget that lacks ambition for this

:24:11. > :24:13.country and lacks fairness. It demonstrates again the appalling

:24:14. > :24:17.priorities of this government, another year, tax breaks for the

:24:18. > :24:21.few, public service cuts for the many. When she took office, the

:24:22. > :24:25.Prime Minister said, if you are one of those families, if you are just

:24:26. > :24:30.managing, I want to address you directly. This Budget does not

:24:31. > :24:36.address them, it failed them! This Budget has done nothing to tackle

:24:37. > :24:38.low play, to solve the state of emergency that persists for so many

:24:39. > :24:45.people, demanding and needing health and social care now. And nothing to

:24:46. > :24:49.make a fair economy truly working for everyone. It is built on

:24:50. > :24:57.unfairness, and it is built on failure to tackle an fairness in our

:24:58. > :25:01.society. Andrew Tyrie! STUDIO: Jeremy Corbyn, the Leader of

:25:02. > :25:04.the Opposition, with his response, basically saying that he says there

:25:05. > :25:10.is a crisis in public services which has not been addressed by this

:25:11. > :25:14.Budget. We will put those points to the Chief Secretary, David Gauke,

:25:15. > :25:21.when he joins us later, and John McDonnell will be with us too. There

:25:22. > :25:25.will be a long debate. Days on the Budget, and if you want

:25:26. > :25:32.uninterrupted coverage, you can go to our colleagues on BBC Parliament.

:25:33. > :25:36.I think it is a good moment now to take us through the Budget measures,

:25:37. > :25:41.quite a few of them, and we will go through those before we have a chat

:25:42. > :25:44.in the studio with our colleagues, and indeed with Paul Johnson from

:25:45. > :25:50.the Institute for Fiscal Studies, who has joined us. We have taken

:25:51. > :25:55.delivery of the Red Book, I think it is there to say it is slimmer than

:25:56. > :26:03.usual! Is that fair to say? Much slimmer than usual! Only 64 pages.

:26:04. > :26:11.There are 77 measures in the 2016 budget, 28 in this one. Go I feel I

:26:12. > :26:20.will probably mention those 28, let's have a look at those measures.

:26:21. > :26:27.A significant upgrading then a slight downgrade in growth, so that

:26:28. > :26:33.forecast slightly adjusted, but as I say, this year has been upgraded by

:26:34. > :26:39.a bit. Let's go on to the borrowing forecasts, and a significant

:26:40. > :26:44.reduction, in fact, in the forecast for 2016-17, at 51 billion. But then

:26:45. > :26:48.we see the figures going on, no balancing of the books, as we see,

:26:49. > :26:52.by the end of the parliament, but tapering away to 16 billion, that is

:26:53. > :26:58.the latest borrowing forecast by 2021-22. We will be asking Paul to

:26:59. > :27:04.tell us more about that. Let's talk about debt, 86.6% of GDP in 2016-17,

:27:05. > :27:11.going down gradually, according to these latest forecasts, to 79.8% by

:27:12. > :27:16.2021-22. That is the broad picture in terms of debt and borrowing and

:27:17. > :27:21.the growth forecasts. Let's go on some measures, some policies. Health

:27:22. > :27:24.and social care, well, this was one of the major announcements today,

:27:25. > :27:28.after all the talk of pressure on the social care system in England,

:27:29. > :27:32.an announcement to do with England. ?2 billion of additional funding

:27:33. > :27:36.over three years for the social care system in England, is that enough?

:27:37. > :27:39.Well, we will be talking to some people later and asking if it

:27:40. > :27:48.answers the needs. Jeremy Corbyn doesn't think it does. Annexed the

:27:49. > :27:52.?100 million to place GPs in A departments next winter. -- an extra

:27:53. > :27:55.?100 million. The Chancellor says that is to address the fact that

:27:56. > :28:05.many people turn up inappropriately for treatment at A departments. An

:28:06. > :28:08.extra ?325 million for the first NHS sustainability and transformation

:28:09. > :28:11.plans to be implemented, again, some of these reforms coming in to try to

:28:12. > :28:18.deal with the pressures, the very real pressures within the NHS

:28:19. > :28:22.system. Let's look at some tax changes. Well, national insurance

:28:23. > :28:27.for self-employed workers to rise to 10% in April 20 11% in April 20 19.

:28:28. > :28:32.I think it is there to say this will be a controversial change, simply

:28:33. > :28:37.because there are lots of people saying this is a direct

:28:38. > :28:42.contravention of a promise made in the Conservative manifesto, not to

:28:43. > :28:45.raise any of the taxes, VAT, income tax, national insurance. We will ask

:28:46. > :28:52.the Minister about that. The tax-free dividend allowance cut two

:28:53. > :28:55.?2000, that is to do with company directors and the advantages they

:28:56. > :29:01.get. And any personal tax-free allowance is to rise, as planned,

:29:02. > :29:05.?12,500 by 2020. Business rates, Simon was talking about these

:29:06. > :29:09.earlier, people wanting help with their rising business rates. There

:29:10. > :29:14.will be ?300 million fund for businesses facing big increases to

:29:15. > :29:18.their rates bills. Pubs in England, ?1000 discount for pubs with a

:29:19. > :29:24.rateable value under ?100,000, the vast majority of pubs in England,

:29:25. > :29:28.well over 90% getting that discount. And firms losing small business rate

:29:29. > :29:34.relief will have a cap, their increases will be capped at ?50 per

:29:35. > :29:37.month. All of that is meant to help, we will ask Simon whether it will do

:29:38. > :29:41.the trick, and given what he has been told by people in business

:29:42. > :29:49.about that. Money for the devolved administrations - an extra ?350

:29:50. > :29:54.million for the Scottish Government, an extra ?2 million for the Welsh

:29:55. > :30:01.blood, ?120 million or thereabouts for the Northern Ireland executive,

:30:02. > :30:05.when there is one in place. Then ?690 million competition launched

:30:06. > :30:08.for local councils to tackle urban congestion. Those are the packages

:30:09. > :30:22.not just for the devolved nations but for local authorities too.

:30:23. > :30:33.110 new free schools will get funding. There's an introduction of

:30:34. > :30:37.what we call T-levels to raise the status of technical educational

:30:38. > :30:42.vocation. The Chancellor said that was a matter of priority for him.

:30:43. > :30:46.Some other measures, the last set, as I go through the Budget measures

:30:47. > :30:51.today, the National savings bond will be available from April, at

:30:52. > :30:58.this time of very low interest rates, it will pay 2.2% interest on

:30:59. > :31:04.deposits up to ?3000. The receipts to fund a further ?12 million for

:31:05. > :31:10.women's charities on sanitary products. And some ?200 million to

:31:11. > :31:13.encourage investment in local full fibre broadband networks. Even a

:31:14. > :31:17.question at Prime Minister's Questions today about the quality of

:31:18. > :31:19.broadband networks, especially in rural areas, so ?200 million to

:31:20. > :31:28.encourage investment there. That is a broad sense of where we

:31:29. > :31:32.are and there were some eye-catching proposals from the Chancellor, not

:31:33. > :31:36.least to do with social care and the changes in national insurance. We

:31:37. > :31:42.will talk to Paul with us, but Laura, I'm going to start with you.

:31:43. > :31:45.On the political side, there's a broader picture clearly but can we

:31:46. > :31:50.deal with the issue of manifesto pledges which may or may not have

:31:51. > :31:55.been broken? In national insurance terms, what is your view? As simply

:31:56. > :32:00.as I can, the Tory manifesto promised no increases in income tax,

:32:01. > :32:03.VAT or national insurance rates. In the Budget today, Philip Hammond has

:32:04. > :32:07.gone against the spirit of the pledge, absolutely, no question

:32:08. > :32:12.about that because he has increased what is known as class for national

:32:13. > :32:16.insurance payments, they will go up from 9% to 11% by 2018. Where the

:32:17. > :32:23.Treasury will try to get itself off the hook on what I would describe as

:32:24. > :32:26.a technicality is when that manifesto pledge was put into law,

:32:27. > :32:28.the law that was passed referred only to a different class of

:32:29. > :32:31.national insurance payments. What ended up in black and white in

:32:32. > :32:37.legislation was a narrower promise than the Tory manifesto but if you

:32:38. > :32:40.are only picking up the Tory manifesto and having a look he will

:32:41. > :32:43.bring Philip Hammond has gone against it and I think that might be

:32:44. > :32:47.a bit itchy politically but the scale of the measure overall might

:32:48. > :32:51.mean they get off the hook? The broader picture, what did you make

:32:52. > :32:56.of the statement itself in what it said about where the government

:32:57. > :32:59.thinks it is? Safety first is really the headline from this. Philip

:33:00. > :33:03.Hammond tiptoed through the controversial area of Brexit but

:33:04. > :33:06.only at the beginning. He basically said it is the broad canvas but I

:33:07. > :33:10.think quite deliberately chose not to make lots of references to what

:33:11. > :33:15.happens when we leave the European Union or before then threw his

:33:16. > :33:19.statement. I think basically he gave moderately with one hand and took

:33:20. > :33:23.away moderately with the other. What I do think is worth drawing from

:33:24. > :33:29.that is the emerging picture of what people at the top of government hope

:33:30. > :33:32.people will come to see, they hope, is sort of Theresa May's

:33:33. > :33:37.meritocracy. There is one phrase he used that stuck in my mind, he said,

:33:38. > :33:41."We believe talent should be the only driver", so whether that is

:33:42. > :33:46.improving access to further education, better skills, trying to

:33:47. > :33:50.help people who are, as Theresa May would say, getting on with it, with

:33:51. > :33:54.something like the small print clause, the kind of things that

:33:55. > :33:58.really make consumers mad, I think that emerging jigsaw of the overall

:33:59. > :34:03.ethos was in there. But the real challenge is whether that matches up

:34:04. > :34:06.to how people actually feel in terms of the economy. Labour already

:34:07. > :34:10.pointing out a couple of things, they have gone through the numbers,

:34:11. > :34:13.that real household income has been revised down on average, they are

:34:14. > :34:17.forecasting people will be worse off cumulatively over the next five

:34:18. > :34:22.years, to use of Labour's numbers and they have pointed out the

:34:23. > :34:28.National Living Wage was meant to be ?9 by 2020 and today it has been

:34:29. > :34:32.suggested it will only be ?8.75. As ever, rhetoric, reality, where do we

:34:33. > :34:35.end up? Paul Cole your day, there were some big numbers in terms of

:34:36. > :34:40.the growth forecast and all the rest it but what caught your eye? The

:34:41. > :34:44.first thing is the big change in the public finances for this year

:34:45. > :34:49.relative to what the Office for Budget Responsibility were saying in

:34:50. > :34:52.November. It is something like ?16 billion increase, improvement in the

:34:53. > :34:56.public finances for this year. That is by far and away the biggest

:34:57. > :35:02.adjustment the OBR has made in a year since it came into existence.

:35:03. > :35:06.The reason for that? There are two bits, about half of it is just one

:35:07. > :35:13.of things, that will happen this year and will not happen again. Some

:35:14. > :35:16.of that is some strange spending accounting, we are giving European

:35:17. > :35:21.Union less money, as it happens, in the first quarter of the year and

:35:22. > :35:24.more in the last three quarters of the year. There are some changes

:35:25. > :35:27.associated with the changes to dividend taxation that came in last

:35:28. > :35:31.year which means we are getting quite a lot more money in this year

:35:32. > :35:36.but we will get less next year. There are some departmental spending

:35:37. > :35:40.changes where departments don't seem to be spending all the money they

:35:41. > :35:46.have got and then there are some longer term, better news, which is

:35:47. > :35:48.that some other tax revenues, from corporation tax and PAYE income tax

:35:49. > :35:52.are doing a bit better than expected. But no change at all to

:35:53. > :35:58.the public finances three or four years down the road. So really, it

:35:59. > :36:02.is a here and now change but looking on, prospects look, how do they look

:36:03. > :36:06.to you? For the public finances, they haven't changed, pretty much,

:36:07. > :36:12.in terms of the economy, looking a bit better in the short term but

:36:13. > :36:15.again, the accord it -- economy according to the official forecast

:36:16. > :36:19.will be roughly in 2020 where it was expected to be in November but as

:36:20. > :36:25.Laura says, actually, also the bad news in a way is that the earnings

:36:26. > :36:28.forecast and income forecast have gone down. This talk of the

:36:29. > :36:32.Chancellor building up a kind of store of money, a war a Brexit

:36:33. > :36:37.savings account, what is the evidence of that and where is that

:36:38. > :36:44.going to happen? That is always nonsense. There is no war chest! The

:36:45. > :36:49.Chancellor says there is ?1.7 trillion of debt, where is the war

:36:50. > :36:52.chest there, and we are borrowing ?50 billion this year? The only way

:36:53. > :36:59.you could think there is a war chest is that the Chancellor has said he

:37:00. > :37:04.would be OK borrowing ?45 billion in 2020 and cried forecasts are only to

:37:05. > :37:06.be borrowing ?20 billion. In that sense, he could borrow more and

:37:07. > :37:10.still meet his own fiscal targets but of course, if we end up there,

:37:11. > :37:14.then he's got another big period of austerity to get through to get down

:37:15. > :37:17.to zero which is where he wants to be next parliament. That is the

:37:18. > :37:20.point I wanted to raise, when he spoke last year about a

:37:21. > :37:29.roller-coaster ride, we're talking now people will be saying some of

:37:30. > :37:32.the figures look much better, the is in a better state than we thought it

:37:33. > :37:35.would be, so has that roller-coaster in the medium term disappeared or is

:37:36. > :37:37.there still one head? It is always important to compare where we are

:37:38. > :37:40.not in terms of the forecast than where we were a year ago and they

:37:41. > :37:43.are still all down relative to a year ago. There's a roller-coaster

:37:44. > :37:48.ride in the sense that there are changes in the forecast and we still

:37:49. > :37:52.seem to be on a bit of an upswing but the expectation is for a

:37:53. > :37:56.downswing later. It is really important to be clear with these

:37:57. > :38:00.forecasts, though, and I don't know if the OBR have said it but all

:38:01. > :38:03.forecasters are saying at the moment there is probably more uncertainty

:38:04. > :38:07.about where we will be in for five years' time than pretty much ever in

:38:08. > :38:11.the last 20 or 30 years. I think what is striking when you look

:38:12. > :38:16.through the Budget measures is not only the limited number of them but

:38:17. > :38:20.in the next two years, there is actually a slight fiscal loosening.

:38:21. > :38:24.Spending and tax changes, there are more giveaways than take away is. So

:38:25. > :38:31.he has used a bit of the headroom, straightaway, on the social care

:38:32. > :38:37.changes, on the higher taxes on dividends for company directors, to

:38:38. > :38:41.enable him to support the economy slightly more aggressively than

:38:42. > :38:45.maybe he would have done in the past. But all that, as Paul said,

:38:46. > :38:49.has to be gained back towards the end of the forecast period, so yet

:38:50. > :38:55.again, as we often had with George Osborne, it is paying, not cancelled

:38:56. > :38:59.but delayed. So they push back the cuts that are going to be coming in.

:39:00. > :39:02.So by the end of the forecast period, there will be this

:39:03. > :39:05.tightening again into the next Parliament. I think the

:39:06. > :39:10.self-employed issue is the start of the big debate of the next few

:39:11. > :39:13.years. OK, it is a small start now, with the change in national

:39:14. > :39:18.insurance class four. I think there is a big issue with the clash with

:39:19. > :39:24.the spirit of the manifesto commitment. But what Phillip Hammond

:39:25. > :39:26.clearly wants to do is what the Treasury are calling equalisation.

:39:27. > :39:29.That means people who are self-employed are taxed in a way

:39:30. > :39:33.that is more similar to those that are in full-time employment. It is

:39:34. > :39:37.surprising, though, and I would be interested to us David Gauke about

:39:38. > :39:42.it, why at the start of this debate and the tax rises on the

:39:43. > :39:45.self-employed side of the ledger, with the self-employed people,

:39:46. > :39:49.rather than the firms that you self-employed people and gain from

:39:50. > :39:53.that because they don't do national insurance contributions, don't put

:39:54. > :39:57.in pension contributions, don't allow for holiday entitlement? The

:39:58. > :40:00.government has started it, started the squeeze on those working in that

:40:01. > :40:04.area rather than the firms to gain from them. The Treasury's point on

:40:05. > :40:09.this which they are trying to circulate their arguments right now,

:40:10. > :40:12.after the statement, is that the intent of the manifesto was

:40:13. > :40:15.delivered by that legislation we were talking about, the tax lock,

:40:16. > :40:20.but what they are saying is, the point is it is not fair to the 85%

:40:21. > :40:25.of workers who are employees, given that these days, the benefits and

:40:26. > :40:30.entitlements are broadly similar. That is their case which is kind of,

:40:31. > :40:34."Whatever we said in the manifesto, this government", which in a lot of

:40:35. > :40:43.weight is a new government, different with different priorities

:40:44. > :40:46.to David Cameron in George Osborne, "In our calculation, we don't think

:40:47. > :40:49.this is on", and they are prepared to take a hit on it and they know

:40:50. > :40:51.they will because they have the arguments ready. Business rates was

:40:52. > :40:54.the big thing for small business owners going into this and the

:40:55. > :40:56.answer was a bit complicated and short lived. Basically, if you are a

:40:57. > :40:59.small business and you were below the small business rates relief cap

:41:00. > :41:02.which is ?15,000, the rateable value of your premises, if you are going

:41:03. > :41:07.into the new bracket, the cap on your increase will be ?50 per week,

:41:08. > :41:11.?50 per month, I should say and if you are a pub and your rateable

:41:12. > :41:15.value is under ?100,000, you will get a ?1000 discount on your

:41:16. > :41:19.business rates next year. That is not to say you will pay ?1000 less,

:41:20. > :41:23.you are only going to pay ?1000 less than you would have paid with a

:41:24. > :41:27.massive increase a lot of people out of pocket still. A ?300 million fund

:41:28. > :41:32.to be administered by local authorities for the hardest hit, to

:41:33. > :41:34.be administered area by area. It is a complicated problem so they are

:41:35. > :41:39.farming it out to local authorities, if you like, you have to deal with

:41:40. > :41:44.it with the ?300 million. But will the humility of effect do the trick?

:41:45. > :41:48.?455 million in total in the giveaways are very short lived and

:41:49. > :41:56.eventually, the rate rises will come through. They say they are going to

:41:57. > :41:58.have a review, so unless this review, how much do companies like

:41:59. > :42:00.Amazon pay compared to the corner shop, unless that delivers major

:42:01. > :42:04.reform, and we won't know that yet, essentially, as Kamal Ahmed said,

:42:05. > :42:08.this is paying delayed, not cancelled. Interestingly, a range of

:42:09. > :42:11.things including the new T-levels, the focus on technology and

:42:12. > :42:14.vocational skills, which lots of people in business have been

:42:15. > :42:19.demanding some again, interesting to know what business makes this

:42:20. > :42:22.qualification. I think they are broadly supportive, too many people

:42:23. > :42:26.are focused on things like A-levels. I've been at the Geneva motor show

:42:27. > :42:30.all week and they say they can't the right people, the labour supply may

:42:31. > :42:34.be more constrained when we are outside the EU. If we are going to

:42:35. > :42:41.build Heathrow, Hinkley Point, whatever, HS2, and bolster industry,

:42:42. > :42:44.we're going to need these people and I think this will be broadly

:42:45. > :42:49.supported. It kind of fits in with the industrial strategy we heard

:42:50. > :42:52.about a few weeks ago. A quick final thought from Paul because David

:42:53. > :42:55.Gauke will join us, the Treasury minister, in a moment, and then we

:42:56. > :43:01.will go to Hull and get a response. Your headline thought from the

:43:02. > :43:03.Budget today is? A couple of things, firstly, short-term gain to the

:43:04. > :43:08.public finances but nothing improving in the long run. I quite

:43:09. > :43:11.like some of the ways we have heard that we're going to have some

:43:12. > :43:15.consultation on some big things, so more consultation on the

:43:16. > :43:18.self-employed, more consultation on social care, more consultation on

:43:19. > :43:23.some of the tax issues rather than jumping in feet first. On the

:43:24. > :43:26.self-employed changes, an extra 2% on national insurance still doesn't

:43:27. > :43:30.get them anywhere near as highly taxed as employees, so in a sense,

:43:31. > :43:32.it is a move in the right direction one thing we have not talked about

:43:33. > :43:39.is this reasonably significant increase in the taxation dividends.

:43:40. > :43:41.That is what people who run and own their own companies can pay

:43:42. > :43:45.themselves, what you receive if you own shares. This is an doing almost

:43:46. > :43:50.mostly undoing a change that George Osborne announced only in July 2015,

:43:51. > :43:55.that was only introduced last April. Probably a move just about in the

:43:56. > :44:02.right direction in terms of evening up the tax treatment of

:44:03. > :44:07.self-employed and owner managers. But not a very steady world where

:44:08. > :44:12.you make a change last April and change it really quite significantly

:44:13. > :44:16.this March. A slightly rueful look from George Osborne, nodding his

:44:17. > :44:20.head during it. I wonder whether it was, as you are raising the amount

:44:21. > :44:22.of national insurance the self-employed are pain, people might

:44:23. > :44:26.think, "In that case, I'll incorporate myself into the

:44:27. > :44:31.company", but they saw it coming so they reduced the amount of tax

:44:32. > :44:34.relief. A quick word from Laura. That may prove to be politically

:44:35. > :44:37.more troublesome than the national insurance weight because people who

:44:38. > :44:46.set up their own Company and pay themselves dividends would probably

:44:47. > :44:50.be natural Tory voters. That might get them or exercised. Thank you for

:44:51. > :44:51.joining us, Paul. We will see you again.

:44:52. > :45:05.I am at Arco distribution centre, close to the centre of Hull, which

:45:06. > :45:09.is City of Culture for 2017 and part of the Northern Powerhouse. We used

:45:10. > :45:13.to hear a lot about that. I think there was only one mention today in

:45:14. > :45:16.Philip Hammond's speech when he talked about ?90 million going to

:45:17. > :45:20.the Northern Powerhouse in transport. Let's find out if that is

:45:21. > :45:24.enough for this man, Thomas Martin, the managing director of Arco. Is it

:45:25. > :45:30.enough for you to get your teeth into?

:45:31. > :45:38.It is a start, but it is only one mention. Our shareholders have

:45:39. > :45:43.invested hundreds of millions, but we cannot do it on our own. I hope

:45:44. > :45:46.to hear more about transport infrastructure, evidence that the

:45:47. > :45:51.Chancellor was taking the Northern Powerhouse as seriously as I think

:45:52. > :45:55.you should be. And what about the future of your company? It is a

:45:56. > :46:00.success story here and Hull, but against a backdrop of decline, what

:46:01. > :46:04.would you like to have heard? There is about seven times as much money

:46:05. > :46:07.being spent in the south as the North, and I understand that for

:46:08. > :46:10.historical reasons, but for a Chancellor trying to balance the

:46:11. > :46:15.books and get value for money, ?1 spent in the North can go a lot

:46:16. > :46:20.further, so I am pleased about skills, the apprenticeships. We have

:46:21. > :46:24.made our own luck, we already have future experts in our programme. I

:46:25. > :46:28.think he is trying, he could have been more direct, with a more overt

:46:29. > :46:34.industrial strategy. I heard some tactics, I didn't hear an overall

:46:35. > :46:39.vision for UK plc. On inflation, that figure going up to 2.4%,

:46:40. > :46:43.worried about that? He was very honest in terms of the public

:46:44. > :46:47.finances, I think perhaps less connected with what really might

:46:48. > :46:51.happen in terms of inflation. We have 1000 containers a year coming

:46:52. > :46:55.through, costs are going up significantly as a result of the

:46:56. > :46:58.devaluation of the pound. Thank you very much, more reaction from local

:46:59. > :47:08.businesses and from the Chambers of Commerce in the ground in Hull.

:47:09. > :47:12.First of all, unemployment levels, Philip Hammond says that

:47:13. > :47:16.unemployment has fallen fastest here as part of a group of areas in the

:47:17. > :47:20.UK, put that into context. Well, Yorkshire and Humber is seeing a

:47:21. > :47:26.reduction in unemployment, and these are good times for Hull,

:47:27. > :47:30.particularly with the offshore wind revolution that is going on,

:47:31. > :47:36.Siemens, the German company, is investing 300 million here, 1000

:47:37. > :47:43.jobs being created in wind turbines, and a Danish energy company are

:47:44. > :47:46.spending ?6 billion as part of their offshore energy agenda, and that

:47:47. > :47:51.will all help as part of growing this part of the world. That sounds

:47:52. > :47:55.like a rosy picture, is that how you view it? It is difficult for small

:47:56. > :48:00.businesses like me to get an audience with the likes of Siemens,

:48:01. > :48:04.there is a lot of competition from national companies, so it is

:48:05. > :48:12.difficult to fight for the revenue that is being generated locally. So

:48:13. > :48:16.what do you say to someone like Sally who cannot get access to

:48:17. > :48:19.funds? Philip Hammond is talking about a bit of money going towards

:48:20. > :48:24.broadband investment, but is that really going to improve the

:48:25. > :48:30.fortunes. The? It is important that politicians are careful when they

:48:31. > :48:33.spend money on rebadged initiatives, for example the Northern Powerhouse

:48:34. > :48:37.investment fund, which brings together the north, the north-east

:48:38. > :48:41.and Yorkshire's funds, will actually see less money coming to Hull and

:48:42. > :48:45.the Humber as it aggregates Manchester way. So we have to be

:48:46. > :48:50.Cavill that we don't lose out on good initiatives like the Northern

:48:51. > :48:54.Powerhouse, but they only have small amount of money on things like

:48:55. > :48:59.transport compared to London. -- careful. One of the big issues for

:49:00. > :49:05.MPs was the bee valuation of business rates. People will say that

:49:06. > :49:15.areas in Hull will not be affected so much, but will it? I am very

:49:16. > :49:19.fortunate that I will have a cut of ?400 in business rates, which will

:49:20. > :49:22.help me fulfil my obligations to the Pensions Regulator! Towards the end

:49:23. > :49:27.of the year, I have plans to open the business rider, and I will have

:49:28. > :49:31.to review those plans, because it will be a bigger leap in terms of

:49:32. > :49:35.business rates. He announced some measures to help smooth the way,

:49:36. > :49:40.would that be enough for you to go ahead with that plan? I would have

:49:41. > :49:44.to look into it, if I can get hold of anybody on business rates at Hull

:49:45. > :49:49.City Council, it would be nice to speak to them about it. For the

:49:50. > :49:53.self-employed, some will say that was interesting for a Tory

:49:54. > :49:55.Chancellor to make self-employed people pay more in national

:49:56. > :50:01.insurance convolutions, what do you think? It is a move that you could

:50:02. > :50:06.see coming, because they are losing an awful lot of revenue as a result

:50:07. > :50:11.of this move to the gig economy, and those gaps have to be filled, but it

:50:12. > :50:14.is important to help these businesses grow, they have to get

:50:15. > :50:18.the balance right. Thank you very much for giving us your views. There

:50:19. > :50:24.will be lots of changes that will affect you, the viewers, in finance,

:50:25. > :50:30.let's find out more from our personal finance expert.

:50:31. > :50:34.Yes, as we've been hearing, national insurance convolutions for the

:50:35. > :50:38.self-employed will go up by one percentage point in April, and up

:50:39. > :50:43.again next year by one percentage point up to 11%. The dividend

:50:44. > :50:47.allowance is something that directors and shareholders of their

:50:48. > :50:51.own companies can use to take ?5,000 with dividends out of their

:50:52. > :50:56.companies as part of their personal allowance, that is going to be

:50:57. > :51:00.reduced to ?2000 from next year. Laura has been in touch to say, I am

:51:01. > :51:07.a single mum of two, children under the age of ten, was there anything

:51:08. > :51:15.drastic for me? Nothing really drastic, Laura, but the personal

:51:16. > :51:20.allowance will rise to ?11,500. That is the point above which you start

:51:21. > :51:23.paying income tax, so there will be a little bit more money in your

:51:24. > :51:29.pocket. For higher rate taxpayers, the rate is going to go, the

:51:30. > :51:33.threshold is going to go from ?43,000 up to ?45,000, although that

:51:34. > :51:44.will not apply in Scotland. And if you have money to save, from April,

:51:45. > :51:47.you will get 2.2% on up to ?3000 of savings every year, although when it

:51:48. > :51:52.was originally announced in the Autumn Statement, critics said it

:51:53. > :51:58.was rather underwhelming. If you have got any questions for us,

:51:59. > :52:02.please get in touch, 61124, or you can e-mail us. Back to you in

:52:03. > :52:11.London. Thank you very much to everyone in

:52:12. > :52:16.Hull, we will be back in a short while for more reaction. Delighted

:52:17. > :52:18.to welcome to the studio of the Chief Secretary to the Treasury,

:52:19. > :52:22.David Gauke, thank you for coming in. Here is a quote, a Conservative

:52:23. > :52:27.judgment, you will be familiar with this quote, will not increase the

:52:28. > :52:30.rates of VAT, income tax or national insurance in the next parliament,

:52:31. > :52:36.why has that manifesto promise been broken? The intent of the manifesto

:52:37. > :52:40.commitment was legislated for, covering class one national

:52:41. > :52:45.insurance contributions, the rate that applies to employees. It did

:52:46. > :52:50.not cover class four, which is what we are increasing today, and one of

:52:51. > :52:53.the reasons for that was, at the same time we were reforming class

:52:54. > :52:58.two, more accurately abolishing clash two, so you have got to

:52:59. > :53:02.remember that almost self-employed people, if you look at all the

:53:03. > :53:05.reforms, the national insurance contributions over the next couple

:53:06. > :53:09.of years, most of them will be paying less in national insurance

:53:10. > :53:15.contributions, not more. The relatively higher earners will be

:53:16. > :53:18.paying more, that is true, but the majority of self-employed will pay

:53:19. > :53:27.lower levels of NICs in three years' time. OK, so let's say that there

:53:28. > :53:32.are four references to tax and your plans on tax in the manifesto, here

:53:33. > :53:36.is another. We can commit to no increases in VAT, income tax or

:53:37. > :53:39.national insurance. Tax rises on working people would harm our

:53:40. > :53:47.economy, reduce living standards and cost jobs. Now, looking at what you

:53:48. > :53:50.revealed today, notwithstanding the explanation you just given us, there

:53:51. > :53:55.is an increase in national insurance which goes against at least the

:53:56. > :54:00.spirit of that, is that not right? Well, what I would say, this is a

:54:01. > :54:04.context where there is, there is quite substantial reform of national

:54:05. > :54:08.insurance contributions, with many people winning from it, but we are

:54:09. > :54:13.also faced with a growing unfairness, if you like, because

:54:14. > :54:15.what we now have is a situation where national insurance

:54:16. > :54:19.contributions are contributions to pay for certain benefits. If you are

:54:20. > :54:22.employed and self-employed, traditionally there were quite big

:54:23. > :54:27.differences between the benefits that you got, on things like the

:54:28. > :54:32.state pension, for example. Well, actually, that difference is going

:54:33. > :54:35.from 2016, we brought in the new state pension, so the self-employed

:54:36. > :54:39.are in as good a position as the employed. We have said today that

:54:40. > :54:44.one of the outstanding differences is on paternity and maternity pay,

:54:45. > :54:49.and we are looking to get rid of that. And in a world where,

:54:50. > :54:54.essentially, you are getting the same at the end of the process, you

:54:55. > :54:58.should put the same amount in. And that is exactly what... Well, that

:54:59. > :55:02.is what we are moving to, there is still a gap, but we are closing that

:55:03. > :55:07.gap, and I think it is right that we do that. The Chancellor underlined

:55:08. > :55:11.that point, and you have again, but I come back to you to say, you make

:55:12. > :55:17.a promise not to raise national insurance, and then you raise it,

:55:18. > :55:21.that is the issue you have got. You have explained the logic around it,

:55:22. > :55:25.but you cannot get away from the fact that you made a promise and you

:55:26. > :55:31.have not kept to it. We legislated, I took through the Bill that was

:55:32. > :55:35.essentially... But you put national insurance up. At that time, we were

:55:36. > :55:38.clear, within the legislation, we were focusing on the main rate of

:55:39. > :55:47.national insurance contributions, which was class one, the 12% rate.

:55:48. > :55:50.That is not clear, is it? We also explained, my memory is we explained

:55:51. > :55:55.to Parliament that because of the reforms that we were doing, and

:55:56. > :56:01.because we needed to look at the issue, because of that potential

:56:02. > :56:07.unfairness, we excluded class four from... We can commit to no

:56:08. > :56:13.increases. I also come back to the point that this problem is growing,

:56:14. > :56:18.and as I say, in a context where we are making a new announcement today,

:56:19. > :56:23.looking at maternity pay, specifically. Employed, given that

:56:24. > :56:30.we have essentially removed the differences. -- for self employed.

:56:31. > :56:33.We have removed all the major differences in the entitlements that

:56:34. > :56:38.the self-employed get versus the employed, and I think in the context

:56:39. > :56:43.of also, we do need to pay for the additional spending on social care,

:56:44. > :56:48.skills, schools. The Chancellor explain that. It is right that we

:56:49. > :56:53.take this step to say that it is a relatively, if you look across the

:56:54. > :56:56.board, it is a relatively modest increase in terms of the national

:56:57. > :57:01.insurance contributions that are levied on the self employed, but I

:57:02. > :57:05.do think, in the circumstances, it is the right step. But you are not

:57:06. > :57:12.acknowledging even that it is a promise that you have not kept. The

:57:13. > :57:16.intent was on the main rates. I think that was how we... Very

:57:17. > :57:19.difficult for someone reading that, it would seem to be a bit of a

:57:20. > :57:24.stretch for you to say that you are not aware of the technicalities

:57:25. > :57:30.within the definition - we can commit to no increases, that is very

:57:31. > :57:36.clear. As I say, for the majority of self-employed, they are actually

:57:37. > :57:40.seeing a reduction in terms of their contributions, and if you take into

:57:41. > :57:46.account personal allowance, all self-employed earnings up to over

:57:47. > :57:51.?32,000 a year will be paying less. That is understood, just picking you

:57:52. > :57:56.up on the commitment, OK Laura? Isn't it the thing, Minister, that

:57:57. > :57:58.people understand when you change your mind, but what people find

:57:59. > :58:06.frustrating is when you clearly break a promise? Well, I think, you

:58:07. > :58:10.know, we have looked at the situation... And you have changed

:58:11. > :58:13.your mind, but what about the manifesto commitment? As I say, I

:58:14. > :58:18.think we have got a situation where we have closed the gap in terms of

:58:19. > :58:21.the benefits entitlements, effectively eliminated it, that we

:58:22. > :58:28.have got a growing situation with the cost, and a sense that if we

:58:29. > :58:32.don't take action, and Matthew Taylor is doing a review of these

:58:33. > :58:37.issues about the way different people work. If we don't take

:58:38. > :58:41.action, we are placing an unfair burden on the 85%... Which is part

:58:42. > :58:44.of changing your mind, but it does not address what many people will

:58:45. > :58:50.see as breaking your promise. The lack said what one of David

:58:51. > :58:53.Cameron's former advisers said about this specific manifesto promise,

:58:54. > :58:56.that it was basically made up on the roof and maybe a rather silly

:58:57. > :59:03.promise to make in the first place, that you would commit forevermore

:59:04. > :59:07.not to raise income tax, VAT or national insurance? If you look at

:59:08. > :59:11.our record as a government over this period of time, you will see it is a

:59:12. > :59:19.record where we are cutting direct taxes, we are holding the VAT, we

:59:20. > :59:22.are cutting taxes through the personal allowance razors, and when

:59:23. > :59:28.it comes to those direct taxes, we are not looking for more, but there

:59:29. > :59:32.is a very specific case, and the more we look at this, the more we

:59:33. > :59:36.can see there is a problem that is going to build up, and it is a

:59:37. > :59:41.long-term problem. If we don't take action on this, we do place an

:59:42. > :59:45.unfair burden, you know, if you are employed... You have made that case,

:59:46. > :59:49.Minister, would you rule out making other increases to VAT or income tax

:59:50. > :59:54.Kaymer that is the question people will ask, you cannot blame them for

:59:55. > :59:59.saying, hang on a second, how many of these other commitments, you

:00:00. > :00:02.mentioned VAT and income tax, should we disregard the sections of the

:00:03. > :00:08.manifesto because you have already wiped one of them out? What else is

:00:09. > :00:13.up for grabs? We have legislated in this Parliament, we will not

:00:14. > :00:17.increase VAT, income tax, we will not increase class one national

:00:18. > :00:19.insurance contributions. We have legislated, we would have to take

:00:20. > :00:24.additional legislative action to be able to do that. As I say, when we

:00:25. > :00:31.took this matter through the House of Commons, back in 2015, I think,

:00:32. > :00:33.we specifically excluded class four national insurance contributions

:00:34. > :00:39.because at that point there clearly was an issue, and as I say, put it

:00:40. > :00:44.in the context of abolishing class two, which, you know, provides a tax

:00:45. > :00:48.cut for all the self-employed in isolation, but still means a net tax

:00:49. > :00:49.reduction in terms of national insurance contributions for the

:00:50. > :00:58.majority. How many people are affected, I

:00:59. > :01:01.should have asked this earlier, by this change? In terms of the number

:01:02. > :01:08.of people who are self-employed, I think it is about 4.2 million, the

:01:09. > :01:12.majority of whom will be paying less national insurance contributions in

:01:13. > :01:16.three years' time the layout paying today. Can we pause for a second, a

:01:17. > :01:19.bit of housekeeping for me because viewers in Scotland are leaving us

:01:20. > :01:25.now but thank you for joining us and we wish you a good afternoon. Here

:01:26. > :01:30.on the BBC News Channel and BBC Two, we are carrying on, and son, your

:01:31. > :01:32.questions to the Minister? This change of message about no raising

:01:33. > :01:38.of national insurance and then saying you did not mean a particular

:01:39. > :01:40.class. There is an issue that entrepreneurialism, the government

:01:41. > :01:42.said start your own business and it worked, people could pay more tax

:01:43. > :01:47.because they were taking more risk, they were starting the red

:01:48. > :01:49.businesses and there's been an enormous increase in

:01:50. > :01:53.self-employment, about 50% of all the jobs that have been created

:01:54. > :01:57.since the crisis of 2008 at come from the self-employed. Now you are

:01:58. > :02:00.saying you're going to come down like a time of bricks and tax some

:02:01. > :02:05.of the growth and looking at some other numbers, bearing in mind you

:02:06. > :02:08.are already going to cancel class two national insurance, this looks

:02:09. > :02:13.like if you add together the cut in the dividend allowance and the class

:02:14. > :02:17.four increase, it amounts to a ?2 billion tax in the next five years

:02:18. > :02:21.on the self-employed. What kind of message is that? That was not the

:02:22. > :02:27.message we were sold a few years ago. I don't accept the point. This

:02:28. > :02:32.is a government which is very supportive of small businesses. We

:02:33. > :02:35.have done a whole host of things, today, in terms of business rates

:02:36. > :02:39.but in things like the employment allowance, the cuts in corporation

:02:40. > :02:45.tax, some of the changes to capital gains tax are very helpful for

:02:46. > :02:48.smaller businesses. Absolutely, we recognise the importance of the

:02:49. > :02:52.entrepreneur to the economy. But these are the same small businesses

:02:53. > :02:55.who are facing water enrolment, you have given them some relief on the

:02:56. > :02:58.business rate increase but only delayed it and they will come down

:02:59. > :03:02.the road at some point. They will be feeling bruised by that. And most

:03:03. > :03:09.small businesses benefit from the business rate reduction. --

:03:10. > :03:12.re-evaluation. That is before you put in the permanent extensional

:03:13. > :03:15.small business rate relief and so on. We've done a lot for small

:03:16. > :03:19.businesses. But the point I will make is if you have got essentially

:03:20. > :03:24.three people doing essentially the same job, one is employed, one is

:03:25. > :03:29.self-employed but unincorporated and the other is working through their

:03:30. > :03:33.own company, and they are paying very substantial differences in the

:03:34. > :03:42.level of tax and national insurance contributions, that creates an

:03:43. > :03:46.unfairness on the employed, the 85%, who pay substantially more in tax

:03:47. > :03:50.and national insurance and that problem will grow. The easiest thing

:03:51. > :03:53.in the world would be for a government, and it might be very

:03:54. > :03:56.politically easy to pretend the problem doesn't exist and it won't

:03:57. > :04:02.be there but it will grow and grow and only you know, there's nothing

:04:03. > :04:05.wrong, in fact, it is no bad thing at all that we have large levels of

:04:06. > :04:12.self-employment in this country but if it creates an unfair burden on

:04:13. > :04:16.the employed, then you are storing up a problem and at some point, the

:04:17. > :04:20.government has to act and better to act now than later. Some people

:04:21. > :04:23.would say, and the point was made earlier, what you should do is look

:04:24. > :04:26.at the employers who are using self-employed status of their

:04:27. > :04:32.workers, I'm thinking of the delivery companies of this world,

:04:33. > :04:40.who using the self-employed status for their benefit. Why did you start

:04:41. > :04:44.there? Why did you go after the boys first? I can see why you make that

:04:45. > :04:48.point and it is a fair challenge to us and the answer is, this is a much

:04:49. > :04:52.more complicated problem. Matthew Taylor is undertaking a review for

:04:53. > :04:57.the government. He has given us his interim findings in a letter today.

:04:58. > :05:01.But he is reporting back later this year. I think it is right that we

:05:02. > :05:05.look at some of those issues. Firstly, we have to deal with what

:05:06. > :05:08.is described as falls self-employment but some of this is

:05:09. > :05:11.genuine self-employment but it does not really fall within any of the

:05:12. > :05:15.usual parameters and the economy is changing and there are different

:05:16. > :05:20.jobs. As I say, if there is a vast disparity in the way in which we tax

:05:21. > :05:24.those people, you know, it can create distortions and it can create

:05:25. > :05:28.unfairness. It is right we address it but it is a more complicated one

:05:29. > :05:34.and we need to make sure we take our time to get it right. What about

:05:35. > :05:37.employers, will they also face tax increases into the future as you

:05:38. > :05:42.review the situation? There's obviously clear disparities if you

:05:43. > :05:47.do employ people on self-employed status. You get a great advantage as

:05:48. > :05:52.an employer because of the reduced national insurance contributions and

:05:53. > :05:57.pension contributions, no holiday entitlement, etc. Surely that has to

:05:58. > :06:00.change as well? It comes back to what I said earlier, it is a really

:06:01. > :06:05.complicated area and I think it is right we are looking at this. But

:06:06. > :06:09.with a view to increasing the burden is on employers? That is a huge

:06:10. > :06:16.thing to take on. In terms of shifting it, the reality is that if

:06:17. > :06:20.you are an employer with employees, you pay national insurance

:06:21. > :06:23.contributions at nearly 14%. That is a substantial. If you go down a

:06:24. > :06:27.different route, you might not pay anything at all and again, that is a

:06:28. > :06:33.similar type of distortion, a similar type of unfairness, you

:06:34. > :06:37.like. That is something that we need to look at but we need to look at

:06:38. > :06:41.quite carefully. But with a view to changing it, clearly? With a view to

:06:42. > :06:46.trying to level the playing field. Is that enough you have done now, to

:06:47. > :06:50.get rid of this disparity, as you see it, between being self-employed

:06:51. > :06:53.and employed? Is that the end of it now? Can you remake your manifesto

:06:54. > :07:03.pledge, even though you did not stick to the first one, can you make

:07:04. > :07:05.a pledge for no more increases in national insurance? I think we have

:07:06. > :07:08.got the balance right now. So no more increases? I think we have the

:07:09. > :07:11.balance right now and Matthew Taylor's report, we have to wait to

:07:12. > :07:14.see what it was a but we have tilled the balance in a direction which I

:07:15. > :07:17.think is fairer for those who eventually see themselves paying

:07:18. > :07:20.quite a lot more if they are employed than if they were

:07:21. > :07:24.self-employed. We are battling the clock minister and you need to go

:07:25. > :07:27.but a quick one from Laura. I was going to say, everyone will be

:07:28. > :07:32.looking very carefully at the legislation from that tax law in

:07:33. > :07:36.2015. I'm interested, briefly, beyond painting a broad canvas at

:07:37. > :07:38.the start, hardly any mention of Brexit from the Chancellor. Was he

:07:39. > :07:42.deliberately tiptoeing around the subject because it is a

:07:43. > :07:46.controversial on the benches behind him? I don't think so, but Brexit is

:07:47. > :07:50.a massive issue for the country and the government but we also have to

:07:51. > :07:53.get on and do the other things. We have to make sure we have a social

:07:54. > :07:57.care system that is working properly. We have to make sure we

:07:58. > :08:00.invest in skills. We have to make sure we have sound public finances,

:08:01. > :08:06.thinking about the long term there. Today was a day where, I know

:08:07. > :08:10.everyone is very focused on Brexit but today was the day when we needed

:08:11. > :08:15.to address some of the other issues that we have as a country and I the

:08:16. > :08:18.Chancellor did that very well. Are you not worried that the numbers

:08:19. > :08:21.suggest wages are still going to be falling back and National Living

:08:22. > :08:25.Wage is predicted to be less than it was the last time? People will still

:08:26. > :08:29.be really feeling the pinch for a long time according to today's

:08:30. > :08:33.numbers. The way we address that and get living standards improving on a

:08:34. > :08:37.sustainable basis is about improving productivity. That means the

:08:38. > :08:43.investment in infrastructure we saw in the Autumn Statement, the

:08:44. > :08:45.investment in skills we saw today, a competitive tax system, which, when

:08:46. > :08:48.you look at encouraging investment, what we have done in terms of

:08:49. > :08:51.corporation tax. All those things will drive up productivity and

:08:52. > :08:55.living standards and that is the way we can ensure we are a prosperous

:08:56. > :08:59.country. Minister, good of you to comment as usual on Budget day and

:09:00. > :09:01.thank you for fielding our question. David Gauke,

:09:02. > :09:06.the Chief Secretary to the Treasury. I will remind you very quickly of

:09:07. > :09:10.the today as we see them. We have been talking about national

:09:11. > :09:16.insurance for self-employed workers, rising to 10% in April next year and

:09:17. > :09:20.11% in April 2000 19. The additional funding for social care, we did not

:09:21. > :09:23.discuss that but we mentioned it earlier, an additional ?2 billion of

:09:24. > :09:26.funding over the next three years for social care in England because

:09:27. > :09:29.we know of the huge pressures on the system and funding announced four

:09:30. > :09:35.new grammar schools and new free schools, 110 of them in England,

:09:36. > :09:37.very much one of the Prime Minister's principal projects,

:09:38. > :09:42.something she is very keen to promote. The other main measures,

:09:43. > :09:46.?300 million fund for firms facing large business rate increases. Simon

:09:47. > :09:52.was talking about the measures to try to relieve some of the pressure

:09:53. > :09:56.after that revaluation. As part of that, a ?1000 business rate discount

:09:57. > :10:00.for pubs with a rateable value of under ?100,000, which is the vast

:10:01. > :10:07.majority of pubs in England. And the National savings bond for savers, as

:10:08. > :10:12.interest rates are very low, this will pay 2.2% on deposit up to ?3000

:10:13. > :10:17.from April. Lots of other measures, too, but we have condensed that to

:10:18. > :10:19.half a dozen at this point. Let's go straight out to the green outside

:10:20. > :10:28.parliament and join Jane. some of the issues with my guess you

:10:29. > :10:32.have joined me. I should explain there's a very noisy pensions

:10:33. > :10:35.protest behind me. Douglas Carswell of Ukip and Tim Farron of the

:10:36. > :10:39.Liberal Democrats, I hope we can just about he read other thing!

:10:40. > :10:42.Douglas Carswell, you have said quite a few times that you hoped

:10:43. > :10:46.Phillip Hammond would be more fiscally responsible than his

:10:47. > :10:49.predecessor. Do you think he has been? I'm a bit worried that the

:10:50. > :10:57.amount of public debt is heading back up again. The best that can be

:10:58. > :11:00.said for this Budget is that it is very dull and not flashy but it's

:11:01. > :11:02.not fundamentally sorting out the biggest problem we face which is the

:11:03. > :11:05.accumulation of big amounts of public debt. At the same time as the

:11:06. > :11:10.public debt is going back up, he is managing to attack the self-employed

:11:11. > :11:13.and self-employed national insurance contributions. I'm not happy about

:11:14. > :11:17.either of those things. Tim Farron, you are nodding through some of

:11:18. > :11:21.that. Yes, the obvious being from the Budget is you cannot have well

:11:22. > :11:25.funded health services, social care or education or indeed to solve the

:11:26. > :11:28.problems of the things we are complaining about today with a hard

:11:29. > :11:32.Brexit. You choose to leave the single market and the customs union,

:11:33. > :11:36.which was not on the ballot paper, then there is a cost, 100 billion

:11:37. > :11:40.extra borrowing and 60 billion war chest to pay for the loss of trade

:11:41. > :11:44.and income and tax receipts relating to a hard Brexit. It is right for us

:11:45. > :11:48.to point that out. We think today, if you look at the attack on

:11:49. > :11:52.business in particular, the little sticking plaster, if that am of the

:11:53. > :11:58.relief to those who will be hit by business rate increases is nothing

:11:59. > :12:00.at all and if you look at the impact of the national insurance

:12:01. > :12:05.contribution rises on self-employed people, it is immense. Something

:12:06. > :12:07.like one in four people in my constituency the South Lakes are

:12:08. > :12:10.self-employed and it will be huge blow to them. It seems to me that we

:12:11. > :12:12.have a government who thinks they can take business for granted

:12:13. > :12:16.because they have a dreadful opposition who does not keep them on

:12:17. > :12:19.their toes. We'll come back to some of that but isn't that part of the

:12:20. > :12:32.point, Douglas Carswell, Philip Hammond has to be

:12:33. > :12:35.cautious because he has to retain the war chest? By definition, we

:12:36. > :12:38.don't know what is coming. It is not a case of Brexit, and at some point,

:12:39. > :12:41.the Japanese and Italian bond markets are going to go pop and

:12:42. > :12:43.governments will find... But it is another layer of uncertainty? The

:12:44. > :12:50.gross predictions have gone up from 1.4%, to 2.2%. It is pretty healthy

:12:51. > :12:55.growth. Just south of 2% for the next four or five years. Given the

:12:56. > :12:58.OBR's success rate at forecasting these things, I'm not sure we can

:12:59. > :13:02.take anything beyond the next 18 months seriously. But in terms of

:13:03. > :13:07.growth projections, there is some pretty good news today. Tim Farron,

:13:08. > :13:10.can we find some positives? Your party were very keen to see more

:13:11. > :13:14.investment in health and social care and quite a lot of money coming

:13:15. > :13:17.forward for social care. Do you think the government finally thinks

:13:18. > :13:22.this is an area that needs tackling? ?2 billion sounded good until he

:13:23. > :13:26.said it was over three years, we need something like 4 billion every

:13:27. > :13:30.year as a minimum so it is a poor but it is a reminder of what limited

:13:31. > :13:33.room for manoeuvre he has got. As Douglas pointed out, we are at the

:13:34. > :13:36.mercy of the international money market and one of the reason this we

:13:37. > :13:39.have chosen to sever our ties with the world's biggest and most

:13:40. > :13:44.powerful market which is the 120 miles away across the Channel. I'd

:13:45. > :13:48.rather not fight the referendum but I'm happy to. What this Budget

:13:49. > :13:52.really tells us is that the significant economic decisions will

:13:53. > :13:55.be taken in about six months' time. This very big decisions on business

:13:56. > :14:00.rates, the fact there is no substantive answer to the big

:14:01. > :14:04.question, how we fund social care, I think, in a sense, this Budget kicks

:14:05. > :14:08.things into touch to be deferred in six months' time. Isn't that partly

:14:09. > :14:12.because we are now heading into an autumn Budget as well? There is

:14:13. > :14:16.great uncertainty as well. The point about growth is significant and the

:14:17. > :14:24.growth we have, which is modest but it's there, is based almost entirely

:14:25. > :14:26.on consumer spending and the great fear about that is, as inflation

:14:27. > :14:29.goes up, which is predicted, we have all seen petrol prices go up by 15%

:14:30. > :14:32.over the last six to 12 months, those kind of things stop people

:14:33. > :14:34.spending money and if your entire economy is based on consumer

:14:35. > :14:38.spending, you are in trouble which is why he needed to invest for the

:14:39. > :14:42.long-term and he has not done that. Is there some better news much

:14:43. > :14:45.longer term, looking at the education announcements, T-levels, a

:14:46. > :14:49.lot of rhetoric about making Britain fighting fit for the future, I mean,

:14:50. > :14:54.a recognition that vocational qualifications are worthy and

:14:55. > :14:57.imported is a good thing? Important, and to blur the line between

:14:58. > :15:01.vocational and academic education is a long sought call that I share with

:15:02. > :15:04.the Chancellor. The problem we have in all of this is that it is new

:15:05. > :15:08.gimmickry, new words and slogans that don't mean much different to

:15:09. > :15:12.what we have had in the past, replacing qualifications that

:15:13. > :15:14.already have a good brand recognition with employers, for

:15:15. > :15:22.instance. The real issue, if you want to improve education, it is

:15:23. > :15:25.about money, 3 billion will be lost in the next three years in schools

:15:26. > :15:28.funding and give them a third of the Berlin to pet projects like grammar

:15:29. > :15:31.schools to free schools, whether you agree with them a lot, it is a

:15:32. > :15:32.diversion from the real problem which is giving teachers the tools

:15:33. > :15:43.they need to teach our kids. Isn't it about diversification?

:15:44. > :15:48.Isn't it about saying stem topics are very important, we need to get

:15:49. > :15:52.more children interested in that, particularly girls on International

:15:53. > :15:57.Women's Day, and to make Britain a modern, forward-looking country?

:15:58. > :16:01.Vocational education is critically important, and that intent within

:16:02. > :16:05.this Budget is that we should welcome that, but the detail is

:16:06. > :16:13.worrying, some of it. The money is going to the pet projects, the crazy

:16:14. > :16:21.thing is that some wonk in the DfE has dreamt up, and now every teacher

:16:22. > :16:25.has to live with it. Just a pet project, the approach to education?

:16:26. > :16:28.In my constituency, the Government managed to spend ?3 million on a

:16:29. > :16:34.Bradley is cool that they closed after three years. Spending more

:16:35. > :16:39.money differently is very welcome. -- on a brand-new school. We need to

:16:40. > :16:44.make sure these reforms don't just improve education in some of the

:16:45. > :16:48.better off parts of London. Douglas Carswell, Tim Farron, thanks very

:16:49. > :16:56.much for joining us. Much more from a very noisy College Green to come.

:16:57. > :17:01.Quite noisy at there, we heard the guests loud and clear, thank you

:17:02. > :17:05.very much. We will be talking to the SNP in just a moment, but I thought

:17:06. > :17:09.I would take you through some of the figures to do with precise duties on

:17:10. > :17:14.tobacco and alcohol, because they were not specified in the budget

:17:15. > :17:18.speech. Why don't we take you through them? By the way, it is also

:17:19. > :17:22.important to underline that some of these changes were put in place in

:17:23. > :17:26.2014, so they are just coming through the system now much they

:17:27. > :17:31.were not all announced in one go today. But, for example, a packet of

:17:32. > :17:39.20 cigarettes will cost 35p more from 6pm this evening, as a result

:17:40. > :17:44.of changes in the Budget. It will cost, actually, the changes that

:17:45. > :17:51.were put in place in 2014, those are still coming through. It will cost

:17:52. > :17:59.42p for a 30 grams packet of hand-rolling tobacco. A pint of beer

:18:00. > :18:03.will cost 2p more from Monday, and other changes to duty on our colour

:18:04. > :18:15.coming through. A bottle of whisky, 36 sense the Mike -- 36p more. Those

:18:16. > :18:20.changes coming through from Monday. Not all of those are measures that

:18:21. > :18:24.were announced today, some were brought in two years ago. I will go

:18:25. > :18:29.straight to the Houses of Parliament, we are joined by the

:18:30. > :18:32.SNP's Roger Mullin, thank you for joining us, congratulations on the

:18:33. > :18:38.best tie in the House of Commons today, no question about that! Thank

:18:39. > :18:42.you very much indeed! Why don't I ask you first, Roger, what is your

:18:43. > :18:46.main take on the Budget today? We had the announcement on extra money

:18:47. > :18:51.for the Scottish Government. My main take is the Chancellor is living in

:18:52. > :18:54.a parallel universe. How on earth anyone can talk about the Budget for

:18:55. > :18:59.an hour and not mention the biggest challenges facing the UK is beyond

:19:00. > :19:05.me, no mention of Brexit, no mention of how he will fill the gap in the

:19:06. > :19:08.loss of revenues in agriculture or the university sector. And doing

:19:09. > :19:11.absolutely nothing to tackle the problem of austerity on the one

:19:12. > :19:16.hand, which the Government has chosen, and the squeezing of savings

:19:17. > :19:21.of pensioners and the like on the other hand, created by the Bank of

:19:22. > :19:26.England policies. So in every major issue, he failed to comment. Given

:19:27. > :19:31.that he outlined the nature of the debt that the UK is an two, and

:19:32. > :19:40.continues to be an two, did you really think he had the leeway to

:19:41. > :19:47.address those problems? -- be under. He has to address the issues of

:19:48. > :19:51.leaving the European Union, because he keeps telling us we are leaving

:19:52. > :19:56.the European Union, and I have looked at some of the documents

:19:57. > :19:58.accompanying the speech, and his assumptions are wholly flawed,

:19:59. > :20:03.parallel straight lines, her weight of them saying, we don't know how to

:20:04. > :20:08.plan for the future, therefore we are doing nothing about facing the

:20:09. > :20:15.challenges of Brexit. -- a way. I think this is a deeply worrying

:20:16. > :20:20.Budget, deeply worrying as we are about to trigger Article 50 and get

:20:21. > :20:25.negotiations started to exit. He did mention North Sea oil and gas, he

:20:26. > :20:30.talked about tapering revenue from there. I'm just wondering, in the

:20:31. > :20:34.light of that, do you agree with some of your own colleagues in the

:20:35. > :20:37.SNP who think that your economic case for independence should no

:20:38. > :20:44.longer include oil revenues because of the fact that they have dipped so

:20:45. > :20:49.significantly? I think what the argument is, looking at the future,

:20:50. > :20:54.we can base our economy very strongly, the whole breadth of the

:20:55. > :20:59.economy, and I'll is, in that sense, a bonus. I think there has been a

:21:00. > :21:05.bit of misrepresentation. I have no problem with looking to the future

:21:06. > :21:11.and making sure the revenues from oil properly husbanded for the first

:21:12. > :21:15.time. Correct me if I am wrong, I think Andrew Wilson said that making

:21:16. > :21:19.oil numbers a central place in 2014 was a mistake, so do you agree with

:21:20. > :21:24.that? The logic would be that you move away when you make a case in

:21:25. > :21:30.future. I prefer to look to the future, I don't share Andrew's

:21:31. > :21:33.interpretation of 2014, but that is immaterial, what and who myself

:21:34. > :21:38.think about that. What is important is how we build the future, and we

:21:39. > :21:44.want to create a future for Scotland that is built on growth in across

:21:45. > :21:47.the whole breadth of the economy. That is the really important

:21:48. > :21:52.message. So a case for independence, whenever it comes again, we'll have

:21:53. > :21:58.to partly depend on the whole question of oil revenues, as it did

:21:59. > :22:02.in 2014? -- will have to. It will have to depend on the entire

:22:03. > :22:05.Scottish economy, it would be foolish to say otherwise. There are

:22:06. > :22:09.so money facets to it, it is changing so fast, we have one of the

:22:10. > :22:14.fastest-growing new technology sectors in Europe, so many riches in

:22:15. > :22:18.terms of whisky, which I see they are bumping up duty on again today.

:22:19. > :22:23.So there is such strength across the economy, to focus only on one aspect

:22:24. > :22:29.would not be sensible, would not be in Scotland's interest. You mention

:22:30. > :22:34.the big Brexit issue clearly, and there was some kind of mention right

:22:35. > :22:39.at the start, but you are right, Roger, it didn't feature later on.

:22:40. > :22:43.In the context of Brexit, given that your party conferences happening

:22:44. > :22:46.very soon, when can we expect a more clear signal, if you like, from

:22:47. > :22:51.Nicola Sturgeon and from your other colleagues about your plans in terms

:22:52. > :22:57.of revisiting the whole independence issue? It depends on two things,

:22:58. > :23:01.Huw, when Article 50 is going to be triggered. In my humble opinion, it

:23:02. > :23:05.would be foolish to make any definitive comment until after that

:23:06. > :23:08.period. Secondly, it crucially depends on the written response from

:23:09. > :23:15.the UK Government to the Scottish Government's proposals of last year.

:23:16. > :23:18.We know neither of those things, so it would be sensible to wait until

:23:19. > :23:24.we get both of those points resolved before we make a final decision. I

:23:25. > :23:28.heard one minister recently saying, a Westminster ministers saying that

:23:29. > :23:31.it would make no sense to have an independence referendum until you

:23:32. > :23:35.saw the shape of the final Brexit deal, which of course is 2019 or

:23:36. > :23:40.thereabouts. What is your thought on that? We are going to have to see

:23:41. > :23:45.the final deal 18 months in, because it is a six-month period for the

:23:46. > :23:49.deal to be approved by all the countries in Europe, and it is going

:23:50. > :23:53.to be in the public domain. We will know in about 18 months what the

:23:54. > :23:58.shape of the exiting deal is going to be, so it won't take the full two

:23:59. > :24:02.years for that. Secondly, we are going to get information as things

:24:03. > :24:05.come along, we are going to have to keep other institutions informed,

:24:06. > :24:10.like the Council of Ministers. I think we will have a very good sense

:24:11. > :24:14.of where the UK is going, we will begin to get that within a few

:24:15. > :24:19.months of the triggering of Article 50. Let's talk about the other

:24:20. > :24:23.sense, your sense of where public opinion is moving in Scotland right

:24:24. > :24:28.now, what is your sense of that? Well, I can only judge it on two

:24:29. > :24:33.things, the most recent poll that I am aware of suggested 49% would vote

:24:34. > :24:39.yes, a big improvement on when Alex Salmond triggered the last election

:24:40. > :24:43.referendum, 28% yes at that time. The second thing is what is

:24:44. > :24:47.happening on the ground. My view on the ground is that there is an

:24:48. > :24:54.expectation that there has got to be a change. And in the future. Whether

:24:55. > :24:58.that change is the UK Government allowing us to stay in the single

:24:59. > :25:02.market, or whether we move towards an independence referendum, in some

:25:03. > :25:08.senses, that is in the choosing of the UK Government. Will they man up

:25:09. > :25:15.and give us a bespoke deal? Very interesting, as ever, Roger, thank

:25:16. > :25:19.you very much for joining us. Roger Mullin is of the SNP giving us is

:25:20. > :25:27.responses to the Budget and the big question of if and when the First

:25:28. > :25:32.Minister will come forward with a second independence referendum. It

:25:33. > :25:38.is a good moment to go back to Hull and joint Jo.

:25:39. > :25:42.Yes, Huw, you know how much politicians love to Don hard hats

:25:43. > :25:48.and high-vis jackets. Well, that is exactly what these ladies here are

:25:49. > :25:52.packaging up for distribution. Safety equipment and protective

:25:53. > :25:57.clothing. This is a company that has been in the same family for four

:25:58. > :26:02.generations. It is a success story in Hull, it employs about a dividend

:26:03. > :26:05.50 people. We have talked already to the managing director, let's find

:26:06. > :26:13.out what other people in the area think to Philip Hammond's statement.

:26:14. > :26:16.Jo is a cafe owner, Darren is the deputy leader of Hull City Council.

:26:17. > :26:21.One of the big issues that was going to come up in this statement, this

:26:22. > :26:24.Budget, was social care and the pressures on it. For a council like

:26:25. > :26:32.yours, were you relieved to hear there will be a cash injection? We

:26:33. > :26:36.were relieved partly, the sector has lost ?4.6 billion, so the idea of

:26:37. > :26:41.putting 1 billion back in next year is welcome, but it is not enough,

:26:42. > :26:45.and whilst we welcome that, we look forward to the green paper that they

:26:46. > :26:50.are talking about, because there needs to be urgent reform for adult

:26:51. > :26:53.social care. As we know, when adult social care sneezes, the whole NHS

:26:54. > :26:59.catches a cold, and it is important that we recognise that most of the

:27:00. > :27:02.precepts of those councils up and down the land has only just said the

:27:03. > :27:06.increases in the living wage. We need new money for health and social

:27:07. > :27:11.care to replace the money taken out in the last five years. So you are

:27:12. > :27:15.waiting to hear about the long-term solutions, the proposals being put

:27:16. > :27:19.forward by the Government. As a local business, Hull is UK City of

:27:20. > :27:24.Culture, that must be good for business. Definitely, it is

:27:25. > :27:31.uplifting. It is good, people are more positive, the business is doing

:27:32. > :27:33.well. Will that be enough to offset the rise in the national living

:27:34. > :27:38.wage? That is something that was announced in the autumn but will

:27:39. > :27:41.come into force next month. The good news about business rates will help

:27:42. > :27:45.offset that, and the business doing so well will obviously be a good

:27:46. > :27:50.thing as well. We may have to increase prices, hopefully not much.

:27:51. > :27:55.I employ ten people. Are you thinking of expanding? Not in the

:27:56. > :28:01.near future. What about information? The projection is it will go up to

:28:02. > :28:05.about 2.4%, the highest it has been in quite a while, what impact does

:28:06. > :28:08.that have? We will have to increase prices in line with that, because

:28:09. > :28:13.otherwise we will not make any money, basically! So it will make

:28:14. > :28:18.quite a difference. What about other money coming into Hull? There was an

:28:19. > :28:21.announcement on broadband, 90 million going into the Northern

:28:22. > :28:27.Powerhouse in terms of transport, that must be welcomed. Yes, but it

:28:28. > :28:32.is a bit timid, really, because we as a council have invested ?70

:28:33. > :28:36.million in the infrastructure of the city, and businesses have invested

:28:37. > :28:39.about ?1 billion. In that perspective, it is a very small

:28:40. > :28:43.amount nationally. What we need to do is see real evidence on the

:28:44. > :28:48.ground. There is not even electrified rail between Hull and

:28:49. > :28:51.Selby, that has to be a priority, because if the Chancellor is serious

:28:52. > :28:55.about productivity, electrified trail between Hull and Selby,

:28:56. > :29:00.connecting our railways to the rest of the country, is a must for this

:29:01. > :29:04.area. I wanted to see less timid capital investment, because the time

:29:05. > :29:08.to invest in infrastructure is during a recession. What about the

:29:09. > :29:13.issue of self-employed people? National insurance contributions

:29:14. > :29:18.going up, maybe a breach of a manifesto commitment, will that

:29:19. > :29:22.affect you or people you know? Some people I know, yes, definitely. I am

:29:23. > :29:26.employed by my company, so I pay national insurance like anybody else

:29:27. > :29:31.does. A lot of people will be affected. Amongst your friends, your

:29:32. > :29:35.family, are they mainly self employed? Are people working for

:29:36. > :29:44.themselves? Half and half. So barely evenly split? What about UK City of

:29:45. > :29:48.Culture, good news all round? Brilliant, we had 240,000 visitors

:29:49. > :29:53.in the first few weeks, and people are talking about Hull for all the

:29:54. > :29:57.right reasons, and on the BBC weather map every night! People know

:29:58. > :30:04.where it is, come and visit. A positive on the BBC Weather map!

:30:05. > :30:05.There are issues coming into force from a personal finance perspective,

:30:06. > :30:14.we can go to Ruth Alexander. We have had some questions from the

:30:15. > :30:18.audience. Robert asks what the government is doing to encourage

:30:19. > :30:21.people to save? Something the Chancellor mentioned and something

:30:22. > :30:26.he has previously announced was the national savings bond where you will

:30:27. > :30:31.be able to save up to ?3000 per year and get 2.2% on it. Interest rates

:30:32. > :30:35.are not high so it does not sound that great, though. Valerie wants to

:30:36. > :30:40.know, what about increases in petrol and beer and spirits? Fuel duty will

:30:41. > :30:44.remain frozen for the seventh year in a row and alcohol duty will rise

:30:45. > :30:50.by inflation from Monday, so about 2p on a pint of beer and about 30p

:30:51. > :30:57.on a litre of whiskey. We would love to hear more of your question so get

:30:58. > :31:00.in touch, text 61124, e-mail us at HaveYourSay@bbc.co.uk or tweet us.

:31:01. > :31:08.Back to the studio. Thank you very much to Ruth and Jo

:31:09. > :31:12.Coburn and we will be back in Hull in a short while. The time is one

:31:13. > :31:15.minute past three and this is the point at which we say goodbye to

:31:16. > :31:19.viewers on the BBC News channel but I will see you at 5pm, hopefully.

:31:20. > :31:25.Thank you for joining us and we will see you later. And here on the

:31:26. > :31:29.special coverage of the Budget 2017, I am still here with Kamal Ahmed and

:31:30. > :31:32.Laura Kuenssberg and Simon Jack. We are hoping at some point to be

:31:33. > :31:36.joined by the Shadow Chancellor, John McDonnell, but we are having a

:31:37. > :31:40.run around to look for him so if he is watching, we need you in the

:31:41. > :31:43.studio, John! If you could make your way over, that would be great.

:31:44. > :31:50.Laura, talking about the precise measures, what did we make of David