Live Budget 2017 Budget

So Prime Minister's Questions

comes to an end and.

Thank you. Border. Dashboard.

Copies of the speech will be

available in the library afterwords.

I now call the Chancellor of the

Exchequer, the right honourable

Philip Hammond.

Mr Deputy Speaker, I report today on

an economy which continues to grow,

continues to create more jobs than

ever before, and continues to

confound those who seek to talk it

down. An economy is set on a path to

a new relationship with our European

neighbours and a new future outside

the European Union. A future that

will be full of change, full of new

challenges and above all, full of

new opportunities. And in this

Budget, we express our resolve to

look forwards, not backwards. To

embrace that change, to meet those

challenges head-on, and to seize

those for Britain. For negotiations

on a relationship with the EU are in

a critical phase. My right

honourable friend the Prime Minister

has been clear we seek a deep and

special partnership based on free

and frictionless trading goods,

close collaboration on security and

strong mutual respect and

friendship. As Chancellor, Mr Deputy

Speaker, I am clear that one of the

biggest boosts we can provide to

businesses and families, one of the

best ways to protect British jobs

and prosperity, as we build that new

future, is to make early progress in

delivering my right honourable

friend's vision. With an

implementation agreement that allows

businesses to plan and invest with

confidence. And this government will

make the pursuit of that progress is

a top priority in the weeks ahead.

But Mr Deputy Speaker, while we work

to achieve this deep and special

partnership, we are determined to

ensure that the country is prepared

for every possible outcome. We have

already invested almost £700 million

in Brexit preparations, and today, I

am setting aside over the next two

years, another £3 billion, and I

stand ready to allocate further sums

if and when needed. Mr Deputy

Speaker, no one should doubt our

resolve. But this Budget is about

much more than Brexit. The world is

on the brink of a technological

revolution, one that will change the

way that we work and live, and

transform our living standards for

generations to come. And we face a

choice. Either we embrace the

future, seize the opportunities that

lie within our grasp, and build on

Britain's great global success

story, or as the party opposite

advocates, rejects change and turn

inwards to the failed and irrelevant

dogmas of the past. Mr Deputy

Speaker, we have no doubt we choose

the future. We choose, we choose to

run towards change, not away from

it. To prepare our people to meet

the challenges ahead, not to hide

from them. And the prize will be

enormous. For the first time in

decades, Britain is genuinely at the

forefront of this technological

revolution. Not just in our

universities and research

institutes, but this time in the

commercial development labs of our

great companies and on factory

floors and business parks across

this land. But we must invest to

secure this bright future for

Britain, and that this Budget, that

is what we choose to do. But Mr

Deputy Speaker, we are listening,

and we understand the frustration of

families where real incomes or under

pressure. So at this Budget we

choose a balanced approach. Yes,

maintaining fiscal responsibility as

we last see our debt Peking.

Continuing to invest in the skills

and infrastructure that will support

the jobs of the future. Building the

homes that will make good on our

promise to the next generation. But

crucially, also helping families to

cope with the cost of living. Mr

Deputy Speaker, as we invest in our

country's future, I have a clear

vision of what that global Britain

looks like. A prosperous and

inclusive economy. Where everybody

has the opportunity to shine.

Wherever in these islands they live,

and whatever their background. Where

talent and hard work are rewarded.

Where the dream of home ownership is

a reality for all generations. A hub

of enterprise and innovation. A

beacon of creativity. A civilised

and tolerant place that cares for

the vulnerable and nurtures the

talented. And outward looking free

trading nation, a full good in the

world. That is the Britain that I

want to leave to my children, Mr

Deputy Speaker. A Britain we can be

proud of. A country fit for the

future. I know we will not build it

overnight, but in this Budget today

we will lay the foundations. I'm

being tempted with something a

little more exotic here, but I will

stick to plain water. I did take the

precaution... I did take the

precaution of asking my right

honourable friend to bring a packet

of cough sweets just in case.

LAUGHTER

Mr Deputy Speaker, Mr Deputy

Speaker...

Order, order. I think it

might be a hearing aid we all need

if this continues.

Mr Deputy

Speaker, I shall first report to the

House on the economic forecast of

the independent OBR. This is the bit

with the long economic words in it.

LAUGHTER

Once again, I thank Robert Chote and

his team for their hard work over

the last few weeks. I believe

passionately that the best way to

improve the lives of people across

the length and breadth of this

country is to help them get into

work. Mr Deputy Speaker, I am

acutely aware that 1.4 million

people out of work is 1.4 million to

many. So today... Today I welcome

the OBR forecast that there will be

another 600,000 people in work by

2022. And I am immensely proud of

this government's record in having

created over 3 million new jobs

since 2010.

A far cry from the 1.2 million job

losses the right honourable member

for Hayes and Harlington predicted

in 2011 but in no doubt this

government will continue its focus

on getting more people into work,

giving them security and peace of

mind of a regular wage. I want work

to be a good well-paid and

regrettably our productivity

performance continues to disappoint.

The OBR assumed at each of the last

16 fiscal events that productivity

growth would return to its precrisis

trend of about 2% per year, but it

has remained stubbornly flat. Today

they revised down the outlook for

productivity growth, business

investment and GDP growth across the

forecast period. They now expect to

see GDP grow 1.5% in 2017, one .4 in

2018, one .3 in 2019 and 2020,

before picking up to 1.5% and

finally 1.6% in 2022. With inflation

peaking at 3% in this quarter before

falling back to target in the next

year. I reaffirm the remit that the

Monetary Policy Committee and its

inflation target. We took over an

economy with the highest budget

deficit in peacetime history. Since

then, thanks to the hard work of the

British people, that deficit has

been shrinking. Next year, it will

be below 2%. Our debt is still too

high and we need to get it down. Not

for and ideological reason, but

because successive debt undermines

economic security leaving is

vulnerable to shocks. It passes the

burden unfairly to the next

generation. And because it simply

cannot be right to spend more on our

debt interest than on police and

Armed Forces combined. I am pleased

to tell the House OBR expects debt

to peak this year and then gradually

fall as a share of GDP. They turning

point in the recovery. Mr Deputy

Speaker, apparently, not everyone

shares the view that falling debt is

good news. I heard representations

from the party opposite suggesting

increasing the debt by £500 billion.

Taking us back to square one,

wasting an extra £7 billion a year

on debt interest. If they carry on

like that, there will be plenty of

others joining Kezia Dugdale saying,

I'm Labour, get me out of here. Mr

Deputy Speaker, I have rejected

these representations and instead I

reaffirm our pledge of fiscal

responsibility and our commitment to

the fiscal rules set out last

autumn. Now I choose to use some of

the headroom I established then so

that as well as reducing debt, we

can also invest in Britain's future,

support key public services, keep

taxes low and provide a little help

to families and businesses under

pressure. A balanced approach that

will prepare Britain for the future,

not seek to hide from it. Today the

OBR confirmed we are on track to

meet our fiscal rules, borrowing is

forecast to be 49.9 billion this

year, 8.4 billion lower than

forecast at the spring budget. After

taking account of all decisions

since the spring budget, the GDP

revision and measures I will

announce borrowing will fall in

every year of the forecast from 39.5

billion next year, to 25.6 point

6,000,000,020 2-23 to reach its

lowest level in 20 years. As a

percentage of GDP falls from 2.4% to

1.9% next year, then 1.6, 1.5, 1.3

and finally 1.1% in 22-3. The OBR

forecast the structural deficit to

be 1.3% of GDP in 2021, giving 14.8

billion of headroom against our 2%

target. Debt will peak at 86.5% of

GDP this year and then fall to 86.4,

then 86.1, 83.1, 79.3 and 79.1 in 22

- 23, the first sustained decline in

debt in 17 years. Under Conservative

led governments, the hard work of

the British people is steadily

clearing up the mess left behind by

Labour. At the heart of global

Britain must be a dynamic and

innovative economy. On Monday, the

Prime Minister set out key elements

of our modern industrial strategy,

which will raise productivity and

wages in all parts of the country

and guarantee a brighter future we

have promised to the next

generation. The Business Secretary

will present a White Paper in the

next few days. This is not just an

economic plan. It is a key part of

our vision for a fairer Britain, a

Britain where every one of our

citizens can contribute to and share

in the benefits of prosperity. And

the key to raising the wages of

British workers is raising

investment, public and we are

investing in Britain's future, half

£1 trillion since 2010, the biggest

rail programme since Victorian

times, the largest road-building

programme since the 1970s, the

biggest increase in science and

innovation funding in four decades

and the two largest infrastructure

projects in Europe, Crossrail and

HS2. When I took this job I

committed to make the battle to

raise Britain's productivity and the

nation's pay the central mission of

the Treasury. Last autumn, I

launched the national productivity

investment funds to provide an

additional £23 billion of investment

over five years, to upgrade the

economic infrastructure for the 21st

century. Today I announce I will

extend the fund a further year and

expand it to over £31 billion.

Meaning that public investment under

this government will on average be

£25 billion per year higher in real

terms than under the last Labour

government. We are allocating a

further £2.3 billion for investment

in R&B and will increase the main

RND tax credit to 12% -- R&D. To

drive up investment across the

economy to 2.4% of GDP. Britain is

the world's sixth-largest economy.

London is the number one

international financial services

sector and we have some of the

world's Best companies and a

commanding position in a raft of

tech and digital industries that

will form the backbone of the global

economy. Those who under estimate

Britain do so at their peril.

Because we will harness this

potential and turn it into the

high-paid, high productivity jobs of

tomorrow. Others may choose to

reject the future, we choose to

embrace it. A new tech business is

founded in Britain every hour. I

want that to be every half-hour.

Today, we invest over £500 million

in a range of initiatives from

artificial intelligence to five G

and four fibre broadband and support

regulation with the new Pioneer fund

and a new geospatial data commission

to develop... You should listen. To

develop a strategy for using the

government location data to support

economic growth and to help tech

start-ups reach scale we asked for a

review of availability of capital.

Today we are publishing an action

plan to unlock over £20 billion of

new investment in UK knowledge

intensive scale up businesses

including through a new fund in the

British business bank seeded with

£2.5 billion of public money by

facilitating pension-fund access to

long-term investment sum by doubling

investments limits for knowledge

intensive companies while ensuring

EI S is not used as a shelter for

low risk capital preservation

schemes. We stand ready to step in

to replace European investment fund

lending is necessary. There is

perhaps no technology as symbolic of

the Revolution gathering pace as

driverless vehicles.

They surely do not want me to make

the joke about the Labour Party

again, Mr Deputy Speaker? I know

Jeremy Clarkson does not like them

but there are many other good

reasons to pursue this technology.

Today, we step up support for it.

I'm sorry, Jeremy, definitely not

the first time you have been snubbed

by Hammond and May. Allah future

-- our future vehicles will be

driverless but there they will be

electric first and that is a change

that needs to come as soon as

possible for the planet. We will

establish a £400 million structure

fund and invest an extra hundred

million per plug-in car Grant and

more for R&D. I will clarify the law

so that people who charge electric

vehicles at work will not face a

benefit in kind charge from next

year. The tax system can play an

important role in protecting our

environment. We owe it to our

children the air they breathe is

clean and we published the air

quality plan this year and said then

we would fund it through taxes on

new diesel cars. From April 2018,

the first year rate for diesel cars

that do not meet the latest

standards will go up by £1 and the

existing supplement in company car

tax will increase by one percentage

point and drivers buying a new car

will avoid this charge as soon as

manufacturers bring forward the next

generation of cleaner diesels. We

only apply this measure to cars.

Before the headline writers start to

limber up, let me be clear. No white

van man or woman will be hit by

these measures. This levy will fund

a new £220 million cleaner fund to

provide support for the

implementation of local air quality

plans, improving the quality of air

in cities and towns in the UK. Our

air quality is sadly not our only

environmental challenge. Audiences

in the country glued to Blue Planet

have been reminded of the problems

of plastics pollution. The UK lead

the world on climate change

agreements and pioneers protecting

marine environment and I want us to

be a world leader in tackling the

scourge of plastic littering the

planet and oceans. With my right

honourable friend the Environment

Secretary I will investigate how the

tax system and charges on single use

plastic items can reduce waste. We

cannot keep our promise to the next

generation to build an economy fit

for the future unless we ensure our

planet has a future. Meeting the

challenge of change head on means

giving our people the confidence to

embrace it and the skills to reap

the rewards and we have a plan to do

so. We are delivering 3 million

apprenticeships by 2020 thanks to

the apprenticeship levy and I will

review the flexibility levy payers

have to spend this. We are

introducing T levels and I am

providing £20 million to support

colleges to prepare for them.

Knowledge of maths is key to the

high-tech, cutting edge jobs in our

digital economy. It is useful in

less glamorous roles like front line

politics! We will expand the

teaching for mastery of maths

programme to further 3000 schools

and provide 40 million to train

maths teachers and introduce a £600

maths premium for schools for every

additional people who takes a level

maths and invite proposals for new

maths schools across England so

highly talented young mathematicians

can release their potential wherever

they live and what ever their

background.

More maths for everyone. Don't let

anyone say I don't know how to show

the nation a good time!

Computer science is also at the

heart of this revolution. So we will

ensure every secondary school pupil

can study computing by tripling the

number of trained computer science

teachers to 12,000. And we will work

with industry to create a new

national centre for computing. But

Mr Deputy Speaker, rapid

technological change means we also

need to help people we train during

their working lives, ensuring our

workforce is equipped with the

skills they need for the workplace

of the future. Today, my right

honourable friend the Education

Secretary and I are launching an

historic partnership between

government, the CBI and the TUC to

set the strategic direction for a

national retraining scheme. Its

first priority will be to boost

digital skills and support expansion

of the construction centre. To make

a start immediately, we will invest

£30 million in the development of

digital skills distance learning

courses, so people can learn

wherever they are and whenever they

want. I'm pleased to be able to

accept the representation that I

have

received from the TUC, to continue

to fund union learn which I

recognise as a valuable part of our

support to workplace learning. Mr

Deputy Speaker, I got an e-mail from

Len asking me especially, backing

skills is key to unlocking growth

nationally, but far too much of our

economic strength is concentrated in

our capital city. If we are truly to

build an economy that is fit for the

future, then we have to get all

parts of the UK firing on all

cylinders, and that is what our

modern industrial strategy is all

about. Today, we back the Northern

Powerhouse, the Midlands engine and

elected mayors across the UK. We

back them with a new 1.7 £1.7

billion transforming cities fund,

half of it to be shared with the six

areas with Metro mayors, to give

them power to deal with transport

priorities, and the remainder will

be opened to competition in other

cities in England. We are investing

£300 million to assure HS2

infrastructure will incorporate

Northern Powerhouse and Midland

engine improvements. I am also

providing money to trial digital

solutions on the trans-Pennine

route. We are developing a punch

with Manchester and I'm pleased to

announce a second devolution deal

with Andy Street and we will find

the replacement of the 40 old

rolling stock on the Tyne at where

Metro and a total investment of 337

million pounds. We will invest £123

million in the Redcar steel

steelwork sites to support the work

of those leading the fight for

prosperity in that area. Mr Deputy

Speaker, we are piloting 100%

business rates retention in London

next year, and continuing to work

with TFL on the funding and

financing of Crossrail two. We will

also make over £1 billion of

discounted lending available to

local authorities across the country

to support high-value infrastructure

projects. A Conservative government

giving power back to the people of

Britain, and driving prosperity and

greater fairness across our United

Kingdom.

The decisions taken in this Budget

also mean £2 billion more for the

Scottish Government, £1.2 billion

more for the Welsh Government, and

156 mg more for the Northern Ireland

Executive. I can confirm today

progress is being made on the city

's deal for Terry and Stirling. I'm

getting used to the experience of

having my ear bent by 13

Conservatives Scottish colleagues.

Most recently on the issue of

Scottish police and fire VAT. The

SNP knew the rules, they knew the

consequences of introducing these

bodies and they ploughed ahead

anyway. My Scottish Conservative

colleagues have persuaded me that

the Scottish people should not lose

out just because of the obstinacy of

the SNP government. So we will

legislate to allow VAT refunds from

April 20 18. And in response to yet

more representations from my

honourable Scottish friends, aided

and abetted by my honourable friend

for Waverley, from November 2018, we

will introduce agile is there a tax

history for transfers of gas in the

North Sea, an innovative tax policy

which will bring fresh investment to

a base on which still holds up to 20

billion barrels of oil. We will

begin negotiations towards great

deals the North Wales and mid Wales,

and we will abolish tolls on the

Severn Bridge as promised by the end

of next year. We will deliver on our

commitment to review the effect of

VAT and APD on tourism in Northern

Ireland, reporting on next year's

Budget and we will open negotiations

for a Belfast city deal as part of

our commitment to an ambitious set

of city deals across Northern

Ireland. A Conservative government

delivering for all parts of our

United Kingdom. It is only by

supporting our regions and nations,

dealing with our debts and investing

in skills and infrastructure for the

long term, that we can build an

economy fit for the future. But I

recognise that many people are

feeling pressure on their budgets

now. And because we are all in

politics to make people's lives

better, in the short term as well as

the long-term, we will take further

measures in this Budget to help

families and businesses where we

can. The switch to Universal Credit

is a long overdue and necessary

reform. Replacing Labour's broken

system that discouraged people from

working more than 16 hours a week

and trapped 1.4 million on out of

work benefits for nearly a decade,

Universal Credit delivers a modern

welfare system where work always

pays and people are supported to

earn. But I recognise, Mr Deputy

Speaker, the genuine concerns on

both sides of the House at about the

operational delivery of this

benefit, and today we will act on

those concerns. First, we will

remove the seven-day waiting period

applied at the beginning of a

benefit claim, so that entitlement

to Universal Credit will start on

the day of the claim. To provide

greater support during the waiting

period, we will change the advance

the system to ensure any household

needs it can access a full month's

payment within five days of

applying. We will make it possible

to apply for an advanced online. We

will extend the repayment period for

advances from six months to 12

months, and any new Universal Credit

claimant in receipt of housing

benefit at the time of the claim

will continue to receive that

housing benefit for a further two

weeks, making it easier for them to

pay their rent. This, Mr Deputy

Speaker, is a £1.5 billion package

to address concerns about the

delivery of the benefit. My right

honourable friend the Secretary of

State for Work and Pensions will

give further details in a statement

to the House tomorrow. We also want

to help low income households in

areas where rents have been rising

fastest. In the long run, of course,

the answer lies in increasing the

amount of housing available, a theme

I shall return to. In the meantime,

the best way to help them is by

increasing the rate of support in

those areas where rents are least

affordable. We will increase

targeted affordability funding by

£125 million over the next two

years, benefiting 140,000 people. We

will always listen to genuine

concerns and act where we can to

help. Making work pay is core to the

philosophy of this government. That

is why we introduced the National

Living Wage in 2016. In April, it

will rise by 4.4%, from £7 50 an

hour, to £7 83, handing full-time

workers a further £600 pay increase,

taking their total pay rise since

its introduction to over £2000 a

year. We also accept the low pay

commission's recommendations on

national minimum wage rates,

supporting our young people with the

largest increase in youth rates in

ten years, delivering a pay rise for

over 2 million minimum wage workers

of all ages across the country. The

facts are these. Income inequality

today is at its lowest level in 30

years. The top 1% are paying a

larger share of income taxes than at

any time under the last Labour

government. The poorest 10% in

Britain have seen their real incomes

grow faster than 2010 than the

richest 10%, and the proportion of

full-time jobs that are low paid is

at its lowest level for 20 years. A

Conservative government delivering a

fairer Britain. But as well as

making work pay, we want families to

keep more of the money they earn.

When we came into office, the

personal allowance stood at £6,475 a

year. From April, I will increase

the personal allowance to £11,850,

and the higher rate threshold to

£46,350, making progress towards our

manifesto commitments, which I

reiterate today. The typical basic

rate taxpayer will be £1075 a year

better off than 2010, and a

full-time worker on the National

Living Wage will take home more than

£3800 extra. This Conservative

government delivering for Britain's

workers. Mr Deputy Speaker, I turn

now to duties. The tobacco duty

escalator will continue with an

extra 1% duty on hand-rolling duty

this year and minimum excise duty on

cigarettes will also rise. Excessive

alcohol consumption and the most

vulnerable people is all too often

through cheap high-strength low

quality products, especially

so-called white ciders. I want to

pay tribute to the campaign led by

my honourable friend for Congleton

on this issue, and so following our

recent consultation, we will

legislate to increase duty on these

products from 2019. But recognising

the pressure on household budgets,

and backing our great British pubs,

duties on other sliders, wines,

spirits and on beer will be frozen.

This will mean a bottle of whiskey

will be £1.15 less in 2018 than if

we had continued with Labour's

plans, and a pint of beer 12p less.

So Merry Christmas, Mr Deputy

Speaker. The cost of travel is also

an important factor for families and

businesses. From April 2019, I will

again freeze short-haul air

passenger duty rates, and I will

also frees long-haul economy rates,

paid for by an increase on premium

class tickets and on private jets.

Sorry, Lewis. For those who do not

stretch to a private jet, I can

announce a new Railcard for those

aged 26 to 30, giving 4.5 million

more young people a third of their

rail fares. And I will once again

cancel the fuel duty rise for both

petrol and diesel that is scheduled

for April. Since 2010, we will have

saved the average car driver £850,

and the average van driver over

£2100, compared to Labour's

escalator plans. Fuel duty has now

been frozen for the longest period

in 40 years, at a total cost to the

Exchequer of £46 billion, is since

2010. Mr Deputy Speaker, our NHS is

one of our great institutions. An

essential part of what we are as a

nation. And a source of pride the

length and breadth of the country.

Its values are the values of the

British people, and we will always

back it. Dedicated NHS staff are

handling the challenges of an ageing

population and the rapidly advancing

technology with skill and commitment

and we salute them. Mr Deputy

Speaker, although you would not

think so to listen to the Leader of

the Opposition, as he regularly

talks down the achievements of the

NHS, the number of patients being

treated is at record levels, cancer

survival rates are at the highest

ever level, 17 million people are

now able to access GP appointments

in the evenings and weekends, and

public satisfaction among hospital

inpatients is at its highest level

in more than 20 years.

It is central to this government's

vision everyone has access to the

NHS free at the point of need which

is why we endorsed and funded the

five-year forward view in 2014 but

even with this additional funding we

acknowledge the service remains

under pressure and today we respond.

First, we will deliver an additional

£10 billion package of capital

investment in front line services

over the course of this Parliament,

to support the sustainability and

transformation plans that will make

our NHS more resilient, investing

for an NHS fit for the future. We

also recognise that the NHS is under

pressure right now. I am therefore

exceptionally and outside the

spending review process making an

additional commitment of resource

funding of £2.8 billion to the NHS

in England. £350 million immediately

to allow trusts to plan for this

winter. 1.6 billion in 2018-19 but

the balance in 19-20, taking the

extra resource into the NHS next

year to £3.75 billion in total.

Meaning, Mr Deputy Speaker, our NHS

will receive a £7.5 billion increase

to its resource budget over this

year and next. Our nation's nurses

provide invaluable support to us all

in our time of greatest need and

deserve our deepest gratitude for

their tireless efforts. My right

honourable friend the Health

Secretary has begun discussions with

health unions on pay structure

modernisation for staff to improve

recruitment and retention. He will

submit evidence to the independent

pay review body in due course. I

want to assure NHS staff and

patients and members that if the

Health Secretary's talks bear fruit,

I will protect patient services by

providing additional funding for

such a settlement. Just as our

public services must be fit for the

future, so too must our tax system.

It must remain competitive to

attract the brightest and best to

establish and grow businesses of the

future. It must raise revenue we

need to fund public services and it

must be robust against abuse so it

is fair to all. We have heard talk

recently from the party opposite

about what they would do to crack

down on tax avoidance and evasion,

but the truth is, they did not. It

is this government that has clamped

down on avoidance and evasion, this

government has seen the tax gap cut

by a quarter to a record low and

this government that has raked in an

extra £160 billion over seven years

for our public services by

collecting taxes due so I will take

no lectures, but I will take action

and this budget continues the work

of the last seven years with a

further package of measures that is

forecast to raise £4.8 billion by

2022-3, doing the job Labour failed

to do for 13 years in office. Our

long-term phased reduction of

corporation tax has generated

investment and jobs and raised £20

billion extra for public services.

We are committed to maintaining

competitive corporation tax rates

that there is a case for removing

the anomaly of the index allowance

for capital gains bringing the

corporate tax system into line with

personal capital gains tax system. I

will freeze this allowance so

companies receive relief for

inflation up to January 2018 but not

thereafter. I am grateful to the

office for tax simplification on

their report on VAT registration

threshold. At £85,000 the UK VAT

threshold is by far the highest in

the OECD, by contrast in Germany it

is £15,600. I note the conclusion

that it distorts competition and

dis- incentivise is business growth

and note the Federation of Small

Businesses concerns about the cliff

edge of the threshold but such a

high threshold has the benefit of

keeping the majority of small

businesses out of VAT altogether so

I am not minded to reduce the

threshold. I will consult on whether

it -- its design could better

incentivise growth and we will

maintain it at the current level for

the next two years. We cannot build

an economy fit for the future

without supporting its backbone, our

5.5 million small businesses, who

are responsible for nearly half our

private sector jobs. They give the

economy its vibrancy and resilience.

I recognise many are feeling under

pressure. I know that it is hard

work to get a business off the

ground and get it to grow, so today

I want to do what we can to ease

that pressure. Business rates

represent a high fixed cost for

small businesses. At budget 2016 we

introduced a package of business

rate relief worth almost £9 billion

with a further £435 million in the

spring budget. Today I go further.

We have listened to concerns about

the potential costs of the annual up

rating of business rates in April.

Today I will accept the

representation of the British

Chambers of Commerce, CBI and others

and bring forward the planned switch

from RPI to CPI by two years to

April 2018, a move that is worth

£2.3 billion to business over the

next five years. I have listened to

businesses affected by the so-called

staircase tax. We will change the

law to ensure where a businesses

impacted by the ruling, it can have

its original bill reinstated if it

chooses and backdated and I hope I

can expect cross-party backing to

speed that measure through

Parliament. Three simple steps to

solve the staircase tax. What do

they expect, it is the tax section?

To support the thousands of small

pubs at the heart of many

communities, we will extend the

£1000 discount with the rateable

value of less than the amount to

March 20 19. I have heard the

concerns about the five-year

reevaluation system and shorter

periods will reduce the size of

changes in valuation that I can

announce after the next revaluation

future revaluation will take place

every three years. This Conservative

government is listening to small

business. There is a wider concern

across this House and in the

business community about the tax

system in the digital age. Along

with innovation and growth it

brings, digitalisation poses

challenges for the sustainability

and fairness of our tax system but

this challenge can only properly be

solved on an international basis and

the UK is leading the charge in the

OECD and G20 to find solutions.

Today we publish a paper on the tax

challenge posed by the digital

economy, setting out emerging

thinking about potential solutions,

but in the meantime we will take

what action we can. Multinational

digital businesses pay billions in

royalties to jurisdictions where

they are not taxed and some of these

royalties relate to UK sales. From

April 2019 and in accordance with

international obligations we will

apply income tax to royalties

relating to UK sales when those

royalties are paid to a low tax

jurisdiction, even if they do not

fall to be taxed in the UK under

current rules. This will raise about

£200 million a year. It does not

solve the problem, but it sends a

signal of our determination and we

will continue to work in the

international arena to find a

sustainable and fair long-term

solution that properly taxes digital

businesses that operate in

cyberspace. Following

representations from a number of

honourable friends we are taking

action to address online VAT fraud

that costs the taxpayer £1.2 billion

per year, by making all online

marketplaces jointly liable with

their sellers for VAT, ensuring

sellers operating through them pay

the right VAT just we expect

retailers on the high street to do.

I want to turn to the challenge of

the housing market. Before I do, I

want to touch on the aftermath of

the appalling events at Grenfell

Tower. We have provided financial

support for victims of this terrible

tragedy and today I announce we will

provide Kensington and Chelsea

Council with a further £28 million

for mental health and counselling

services, the generation support and

to provide a new community space for

residents. This tragedy should never

have happened and we must ensure

nothing like it ever happens again.

All local authorities and housing

associations must carry out any

identified necessary safety work as

soon as possible. If any local

authority cannot access funding to

pay for essential fire safety work,

they should contact us immediately,

and I have said before and will

again today, we will not allow

financial constraints to get in the

way of essential fire safety work. I

want to also address the issue of

empty properties. It cannot be right

to leave property empty when so many

are desperate for a place to live.

We will legislate to give local

authorities the power to charge a

100% council tax premium on empty

properties. We will also launch a

consultation on barriers to longer

tenancies in the private rented

sector and how we might encourage

landlords to offer them to tenants

who want extra security. I want to

say something about rough sleeping.

It is not acceptable in 21st-century

Britain people are sleeping on the

streets. We will invest today £28

million in three new housing first

pilots in the West Midlands,

Manchester and in Liverpool, and we

will establish a task force as part

of our commitment to halving rough

sleeping by 2022 and eliminating it

by 2027. I would like to thank the

many colleagues who submitted ideas

on how to tackle the challenge of

the housing market, including my

honourable friends for North East

Hampshire, Eastleigh and

Weston-Super-Mare in particular. By

continuing to invest in Britain's

infrastructure, skills and R&D, we

will ensure productivity and

economic growth that is the key to

delivering a stronger, fairer and

more balanced economy and the

assurance to the next generation of

their economic security, but however

successful in that endeavour, there

is an area where young people will

rightly feel concerned about their

future prospects and that is in the

housing market. House prices are

increasingly out of reach. It takes

too long to save for a deposit and

rents absorbed too high a portion of

monthly income. The number of 25-34

year old is owning their own home

has dropped from 59% to 38% in 13

years. Put simply, successive

governments over decades have failed

to build enough homes to deliver the

homeowning dream this country has

always been proud of, or indeed to

meet the needs of those who rent. In

Manchester a few weeks ago the Prime

Minister made a pledge to the

younger generation that she would

dedicate her premiership to fixing

this problem and today we take the

next steps to delivering on that

pledge. By choosing to build we send

a message to the next generation

that getting on the housing ladder

is not just a dream of your parents

passed, but a reality for your

future. We have started with schemes

like help to buy that has helped

320,000 people buy a home. We have

increased the supply of homes. By

more than 1.1 billion since 2010.

Including almost 350,000 affordable

homes -- by more than 1.1 million.

The latest figures show that over

217,000 additional homes were added

to the stock last year, that is a

remarkable achievement, but we need

to do better still if we are to see

affordability improved. This is a

complex challenge and there is no

single magic bullet. If we don't

increase the supply of land for new

homes, more money will simply

inflate prices and make matters

worse. If we don't do more to

support the growth of the SMT

house-building sector that was all

but wiped out by Labour's great

recession, we will remain dependent

on the major national house-builders

that dominate the industry. --

growth of the SME house-building

sector. Solving this challenge will

require money and it will require

planning reform and it will require

intervention. So today we set out an

ambitious plan to tackle the housing

challenge. Over the next five years

we will commit a total of at least

£44 billion of capital funding,

loans and guarantees to support our

housing market, to boost the supply

of skills, resources and building

land and to create the financial

incentives to deliver 300,000 net

additional homes on average by the

mid-20 20s, the biggest annual

increase in housing supply

New money for the fund to get SME

house-building began, a £30 million

fund, a further £2.7 billion to more

than double the housing

infrastructure fund, £400 million

more for a state regeneration, air

£1.1 billion fund to unlock

strategic sites, including new

settlements and urban regeneration

schemes, a listing of H R eight caps

for councils in high demand areas to

get them building again and £8

billion of new financial guarantees

to support house-building and the

private rented sector. Because we

need a workforce to build these new

homes, we are providing an

additional 30 formally in pounds to

develop construction skills across

the country. Mr Deputy Speaker,

solving the housing challenge takes

more than money, it takes planning

reform. We will focus on the urban

areas where people want to live, and

where most jobs are created, making

best use of our urban land and

continuing the strong protection of

our green belt. In particular,

building high-quality high density

homes in city centres and around

major transport hubs. And to put the

needs of our young people first, we

will insure that councils in high

demand areas permit more homes for

first-time buyers and affordable

renters. The Communities Secretary

will set out more detailed in a

statement to the House in due

course. However, one thing is very

clear, there is a significant gap

between the number of planning

permission is granted, and the

number of homes built. In London

alone, there are 270,000 residential

planning permission is an built. We

need to understand why -- not built.

I'm establishing an urgent review to

look at the gap between planning

permissions and housing starts. It

will be chaired by the member for

West Dorset and will deliver an

interim report in time for the

spring statement next year. And if

that report finds that fighter Lee

needed land is being withheld from

the market for commercial rather

than technical reasons, we will

intervene to change the incentives

to ensure such land is brought

forward for development, using

direct intervention, compulsory

purchase powers as necessary. My

right honourable friend the Prime

Minister has said we will fix this

problem, and no one should doubt the

Government's determination to do so.

But the solution will not deliver

itself. Local authorities will need

help and support. Developers will

need encouragement and persuasion.

Infrastructure to facilitate higher

density development must be funded

undelivered. So the Homes and

Communities Agency will expand to

become homes England bringing

together money, expertise and

planning and compulsory purchase

powers with a clear remit to

facilitate delivery of sufficient

new homes where they are most

needed, to deliver a sustained

improvement in housing

affordability. The battle to achieve

and sustain affordability will be a

long-term one, so we also need to

look beyond this Parliament, to

long-term measures. We will use new

town development corporations to

kick-start five new locally agreed

garden towns in areas of demand

pressure, delivered through

public-private partnerships,

designed to attract long-term

capital investment from around the

world. Last week, the National in

the structure commission published

their report on the Cambridge Milton

Keynes Oxford corridor. Today, we

back their vision and commit to

building up to 1 million homes by

2050, completing the road and rail

infrastructure to support them. As a

down payment on this plan, we have

agreed an ambitious housing deal

with Oxfordshire, to deliver 100,000

homes by 2031. Capitalising on the

global reputations of our two most

famous universities and Britain's

biggest new town, to create a

dynamic new growth corridor for the

21st century. Mr Deputy Speaker,

this is our plan to deliver on the

pledge we have made to the next

generation. That the dream of home

ownership will become a reality in

this country once again. But I also

want to take action today to help

young people who are saving to own a

home. One of the biggest challenges

facing young first-time buyers is

the cash required upfront. We have

put £10 billion more money into Help

to Buy equity loan to help those

saving for a deposit, but I want to

do more still. I have received

representations for a temporary

stamp duty holiday to first-time

buyers, but this would only help

those who are ready to purchase now,

and would offer nothing for the many

who will need to save for years. So

with effect from today, for all

first-time buyer purchases up to

£300,000, I am abolishing stamp duty

altogether.

If you want more, you are going to

have to let the Chancellor finish!

Chancellor of the Exchequer.

And Mr

Deputy Speaker, to ensure this

release also helps first-time buyers

in very high-priced areas like

London, it will also be available on

the first £300,000 on the purchase

price of properties up to £500,000.

Meaning an effective reduction of

£5,000. Mr Deputy Speaker, that is a

stamp duty cut for 95% of all

first-time buyers who pay stamp

duty, and no stamp duty at all of

80% of first-time buyers from today.

When we say we will revive the

homeowning dream in Britain, we mean

it. We do not underestimate the

scale of the challenge, but today we

have made a substantial down

payment. Mr Deputy Speaker, one of

the things that I love most about

this country is its sense of

opportunity. I have always felt it

and I want young people growing up

today to have that same sense of

boundless opportunity. In this

Budget, I have set out a vision for

Britain's future, and a plan for

delivering it. But by getting our

debt down, by supporting British

families and businesses, by

investing in the technologies and

the skills of the future, by

creating the homes and

infrastructure our country needs, we

are at a turning point in our

history, and we resolve to look

forwards, not backwards. To build on

the strengths of the British

economy, to embrace change, not hide

from it. To seize the opportunities

ahead of us, and together, to build

a Britain fit for the future. I

commend this statement to the House.

STUDIO:

Understanding order 51, will the

Chancellor of the Exchequer praise

move formally? The questionnaires to

be sued question five of the

provisional collection of taxes act

1968 will be given to the following

motions. Stamp duty land tax relief

motion number 36. Tobacco products,

rates motion number 40. As many as a

rock that opinion say aye. The ayes

have it. I now call upon the

Chancellor of the Exchequer to move

the motion entitled income tax. It

is intended that this will be put

towards the House on Tuesday 28

November.

The public resolution should have

statutory effect on the provisional

collection of taxes act 1968. I now

call the Leader of the Opposition,

the right honourable Jeremy Corbyn.

Thank you, Mr Speaker.

Test of the Budget is how it affects

the reality of people's lives all

around this country. I would submit

that the reality...

If somebody

wants to go for an early cup of tea,

please do so. I am told there are

men despise waiting. But what I will

have is the Leader of the Opposition

listened to and quietly from this

side in the same way I expected the

other side of the House.

Jeremy Corbyn.

Thank you, Mr Deputy

Speaker. The reality test of this

Budget has to be how it affects

ordinary people's lives, and I

believe as the days go ahead and

this Budget unravels, the reality

will be a lot of people will be no

better off and the misery many R.N.

Will be continuing. Paid, Mr Speaker

is now lower than it was in 2010 and

wages are now falling again.

Economic growth in the first three

quarters of this year is the lowest

since 2009, and the slowest of the

major economies in the G7. It is a

record of failure with the forecast

of more to come. Economic growth has

been revised down, productivity

growth has been revised down,

business investment revised down,

people's wages and living standards

revised down. What sort of strong

economy is that? What sort of fit

for the future is that? You may

recall, Mr Deputy Speaker, the

deficit was due to be eradicated by

2015. Then that moved to 2016. Then

to 2017. Then 2020 and now we are

looking at 2025. They are missing

their major targets, but the failed

and damaging policy of austerity

remains. The number of people

sleeping rough has doubled since

2010, and this Christmas, this

Christmas 120,000 children will

spend Christmas in temporary

accommodation. Three new pilot

schemes to look at rough sleeping

across the whole country simply

doesn't cut it. We want action now

to help those poor people that

forced to sleep on our streets and

beg...

Order. I think the whip know

better. We do not need any more from

you or leave the Chamber.

The point

I am making is three new pilot

schemes for rough sleepers simply

doesn't cut it. It is a disaster for

those people sleeping on our

streets, forced to beg for money for

a night shelter. They are looking

for action now from government to

give them a roof over their heads.

In some parts of the country, life

expectancy is actually beginning to

fall. The last Labour government

lifted 1 million children out of

poverty. It was an amazing

achievement. Under this government,

an extra 1 million children will be

plunged into poverty by the end of

this Parliament.

1.9 million pensioners, one in six

of all pensioners living in poverty,

the worst rate anywhere in Western

Europe. It is falling pay, slow

growth, rising poverty and this is

what the Chancellor has the cheek to

call a strong economy. His

predecessor said they would put the

burden on those with the broader

shoulders. How has that turned out?

The poorest tenth of households will

lose 10% of their income by 2022

while the richest will lose just 1%.

So much for tackling burning

injustices, this is a government

tossing fuel on the fire. Personal

debt levels are rising. 8.3 million

people over indebted. If he wants to

help people out of debt, he should

back Labour's policy for a real

living wage of £10 per hour by 2020.

Working-class young people now

leaving university with £57,000 of

debt because this government, his

government, troubled tuition fees

and the new government policy is to

win over young people by keeping

fees at the same rate per year --

trebled tuition fees. That is just

one of the multitudes of injustices

presided over by this government and

another is Universal Credit which we

called on ministers to pause and

fix. That is the view of this House

and the verdict of those on the

front line.

To shout out, keep

going, he will, but you will be

going out of the chamber.

Jeremy

Corbyn. I would rather people staged

to listen, actually, Mr Deputy

Speaker. To the reality.

Silence! It

will be in silence.

Thank you, Mr

Speaker. Maybe those opposite would

like to listen to Martin's

experience. A full-time worker on a

minimum wage, he said, I get paid

four weekly meeting my pay date is

different each month and because

under the Universal Credit system he

was paid twice in a month and deemed

to have earned too much Universal

Credit was cut off and lead to rent

arrears and he had to use a food

bank for the first time in his life.

That is the humiliation he and many

others have gone through because of

the problems of Universal Credit.

Would it not be better to pause the

whole thing and look at the problems

it has caused? The Chancellor's

solution to a failing system causing

more debt is to offer a loan and the

six-week wait with 20% waiting

longer simply becomes a five-week

wait. This system has been run down

by £3 billion of cuts to work

allowances, the two child limit and

the perverse and appalling clause

that caused evictions because

housing benefit is not paid direct

to the landlord. I say put this

system on hold so it can be fixed

and keep 1 million of our children

out of poverty. For years, we have

had the rhetoric of a long-term

economic plan that never meets its

targets. When all too many are

experiencing long-term economic

pain. And the hardest hit are

disabled people, single parents and

women. It is disappointing the

Chancellor did not back the campaign

by my honourable friend to end

period poverty. He could have done

that. Well done to her on the

campaign, shame on him for not

supporting it. The Conservative

manifesto in the last election

disappeared off its website after

three days, and now some ministers

opposite have put forward some half

decent proposals, conspicuously

borrowed from the Labour manifesto.

Let me tell the Chancellor, as

socialists we are happy to share

ideas. The Communities Secretary is

called the borrowing to invest in

house-building presumably the Prime

Minister slapped him down for

wanting to bankrupt Britain. Where

is the money to fund the pay rise if

he says the pay cap is over? The

Chancellor has not been clear for

NHS workers, police, firefighters,

teachers and assistants, bin

collectors, Armed Forces personnel.

Will the Chancellor listen to

Claire, who says her mum works for

the NHS and she goes above and

beyond for her patients. Why does

the government think it OK to

underpay, over stress and under

appreciate all those who work in the

NHS? The NHS chief executive says

the budget for the NHS next year is

short of what is currently needed.

From what the Chancellor has said,

it is still going to be well short

of what is needed. He said in 2015

they would fund another 5000 GPs. In

the last year, 1200, we have had

1200 fewer GPs and we have lost

community and mental health nurses.

The Chancellor promised

10,000,000,020 15 and delivered 4.5.

If you don't mind, we will wait for

the small print on the announcement

but even what he said falls well

short of the 6 billion Labour would

have delivered from our June

manifesto. Over 1 million of our

elderly are not receiving the care

they need. Over... Over 6 billion

will have been cut from social care

budgets by next March. I hope he

begins to understand what it is like

to wait for social care, stuck in a

hospital bed, with other people

having to give up work to care for

them. The uncaring, uncouth attitude

of certain members...

Order. Carry

on.

Mr Speaker, that is why social care

budgets are so important for so many

desperate people in our country. Our

schools will be 5% worse off by

2019, despite the Conservative

manifesto promising no school would

be worse off. 5000 headteachers from

25 counties wrote to the Chancellor

saying, we are simply asking for the

money that has been taken out of the

system to be returned. A senior

science technician wrote to me,

Robert, saying, my pay has been

reduced by over 30%. I have seen

massive cuts at my school, good

teachers and support staff leave.

That is what does for the morale of

both teachers and students.

According to this government, 5000

headteachers are wrong, Robert is

wrong, the IFS is wrong, everybody

is wrong, except the Chancellor. And

if the Chancellor bothered to listen

to what local government is saying,

they have been warning services for

the most vulnerable children are

under more demand than ever. More

children being taken into care, more

in desperate need of help and

support, yet they are labouring with

a 2 billion shortfall in the cost of

dealing with vulnerable children.

Because local councils have lost

80%, will have lost 80% of direct

funding by 2020. The reality of

this, across the country, is

winning's refuges closing, youth

centres and libraries and museums

closing, public facilities

understaffed, under resourced and

underfinanced. It could be so

different, but compassion can cost

very little. Just £10 million is

needed to establish the child

funeral fund, campaigned for

brilliantly by my honourable friend

the member for Swansea East. Why

could not the Chancellor at least

have agreed to fund that? Under this

government there are also 20,000

fewer police officers and another

6000 community support officers and

11,000 Fire Service staff cut as

well. You cannot keep communities

safe on the cheap. Tammy explains

this. Our police presence has been

taken away from the village, meaning

an increase in crime, as a single

parent I no longer feel safe in the

village where I live, particularly

at night. 5.5 million workers earn

less than living wage, 1 million

more than five years ago. The

Chancellor last Sunday could not

even see 1.4 million people

unemployed in this country. There is

a crisis of low pay and insecure

work affecting one in four women and

one in six men, a record 7.4 million

people in working households living

in poverty. If we want workers

earning better pay, less dependent

on in work benefits, we need strong

trade unions, the most effective way

of boosting workers pay. Instead,

this government weakened trade

unions and introduced employment

Tribunal fees, now scrapped, thanks

to the victory in the courts by

Unison, a trade union representing

members. Why did the Chancellor not

take the opportunity to make two

changes to control debt? First, to

cap credit card debt so nobody pays

back more than they borrowed. And

second, to stop credit card

companies increasing people'scredit

limit without their say-so. Debt is

being racked up because the

government is weak on those who

exploit people such as rail

companies hiking fares above

inflation, and water companies and

energy suppliers. During the general

election he promised an energy cap

to benefit around 17 million

families on standard variable

tariffs. But every bill tells

millions the government has broken

that promise. And with 10 billion in

housing benefit going into the

pockets of private landlords every

year, housing is a key factor in

driving up the welfare bill. Not too

many words from the Chancellor about

excessive levels of rent in the

private rented sector. With this

government delivering the worst rate

of house building since the 20s, and

a quarter... And a quarter of a

million fewer council homes, any

commitment would be welcome. But we

have been here before. The

government promised 200,000 starter

homes, three years ago, and not a

single one has yet been built in

those three years. We need a large

scale publicly funded house-building

programme, not this government's

accounting tricks and empty

promises. We back the abolition of

stamp duty for first-time buyers

because it was another Labour policy

in our manifesto in June, not a Tory

one. This government continues

preference for spin over substance,

that means across this country, in

the words wolf powerhouse and

Midlands engine, now met with

derision. Yorkshire and Humber get

only one tenth of the transport

investment per head given to London.

And government figures show every

region in the of England has seen a

fall in spending on services since

2012. The Midlands, East and west is

receiving less than 8% of total

transport infrastructure investment

compared with 50% going to London.

In the east and West Midlands one in

four workers are paid less than the

living wage, so much for the

Midlands engine. We announced

funding for the trans-Pennine rail

route will not cut it and the other

announcements today will not redress

that balance. Combined with

counter-productive forced Erraid

Davies lack of investment has

consequences in sluggish growth and

shrinking pay packets. Public

investment has virtually halved.

Under this government Britain has

the lowest rate of public investment

in the G7. But it is now investing

in driverless cars. After months of

road testing back-seat driving in

the government.

By moving from RPI to CPI indexes

non-business rates, the Chancellor

has adopted another Labour policy.

But why don't they go further and

adopt Labour's entire business rates

including the annual revaluation of

business rates. Nowhere have their

chaos been more evident than over

Brexit. Following round after round

of fruitless Brexit negotiations,

the Brexit secretary has been

shunted out for the Prime Minister

who has got no further. Every major

business organisation has written to

the Government telling them to pull

their finger out and get on with it.

Businesses are delaying crucial

investment decisions because of this

government doesn't get its act

together soon, they will be taking

relocation decisions. Crashing out

with no deal and turning Britain

into a tax haven would damage

people's jobs and living standards

would serve only a wealthy few. It

is not as if this government isn't

doing its best to protect tax havens

and its clients in the meantime. The

Paradise Papers exposed how a

super-rich elite gets away with

dodging taxes. This government has

opposed measure after measure in

this House and their Tory colleagues

in the European Parliament, to clamp

down on the tax havens that

facilitate this outrageous leaching

from our public purse. Nonpaid tax,

clever reinvestment to get away with

tax, actually, it is hospitals,

schools, housing and it hit the

poorest and most needy in our

society. There is nothing immoral

about dodging tax. There is

everything in moral about evading

it. Mr Speaker, too often it feels

like there is one rule for the

super-rich and another for the rest

of us. The horrors of Grenfell Tower

were a reflection of a system which

puts profits before people, that

failed to listen to working-class

communities. In 2013, the Government

received advice in a krona's report

that sprinklers should be fitted in

all high-rise buildings. Today, once

again, the Government failed to fund

the £1 billion investment needed.

The Chancellor says council should

contact them. But not in house,

Westminster house and they have been

refused. Nothing was offered to

them. We have the privilege to be

members of Parliament, in a building

that is about to be retrofitted with

sprinklers, to protect us. The

message is pretty clear. This

government cares more about what

happens here then happens to people

living in high-rise homes. In effect

saying they matter less. Our

country, Mr Speaker, is marked by

growing inequality and injustice. We

were promised a revolutionary

Budget, the reality is nothing has

changed. People were looking for

help from this Budget and they have

been let down. Let down by a

government, that like the economy be

presided over, is weak and unstable

and in need of urgent change. They

called this a Budget fit for the

future. The reality is, this is a

government no longer fit for office.

Nicky Morgan.

STUDIO: And Jeremy Corbyn sits down

after a long and wide-ranging

response to the Budget. If you wish

to continue to watch what is

happening in the House of Commons,

you can switch to the BBC Parliament

channel and that will tell you what

is going on there. Here, we will go

through

I'm happen to to continue that

tradition. Much of his speech was

pre-written. I suspect he'll want to

look at more of the detail. Today, I

think it is perhaps the Chancellor

who's had the hardest task. More

public spending, rising economic

uncertainty. He has taken a

common-sense approach which will no

doubt displease many on both sides

of the chamber. It is only thanks to

seven years of common-sense,

concerted efforts by Conservative

and Conservative-led Governments to

reduce the deficit and restore

credibility to the public finances

that the UK has the resilience

necessary to face the challenges

ahead. Reclassification of Housing

Association, may have given the

Chancellor some timely room for man

over, it does not alter the

underlying picture. Although the OBR

has made a more negative assessment

of productivity, it is forecasting a

relatively benign breaks the with no

cliff edge in March 2019. But that

can the no be guaranteed. Even

though a transitional arrangement

for a smooth adjustment is in the

interests of both the UK and the EU,

it may not happen. The Treasury

committee will be looking closely at

failing to reach a deal on

transition and expectings to make a

report in the House in the coupling

weeks. Beyond the public finances,

household balance sheets are under

pressure. Rising interest rates,

high inflation, lower wage growth, a

working age benefits freeze, all

these put pressure on ordinary

households. The Chancellor set out

two important principles for

Conservative-led Governments.

Firstly, work should always pay and

secondly, people should keep more of

the money they earn. I'm happy to

subscribe and those on these benches

are happy to support him with those

two principles. Pressures on

household finances which the

committee will be looking at as part

of our inquiry, will be exacerbated,

particularly for the younger again

ration, if action's not taking with

the housing market. I welcome the

measures the chops letter's

announced on housing. It he's

announce add package on land

availability and incentives to get

building. You know there's an issue

when the member for West Dorset is

sent for to solve a particular

problem. He is going to look at the

gap between permissions granted and

those houses being built. Why that

gap exists. I also hugely welcome,

as I think honourable members on

this side of the House will, the

stamp duty cut for first time

buyers. As the Chancellor said, this

will make home ownership a reality

for more young people. The committee

will be intending to hear from

housing experts as part of our

Budget scrutiny and will

investigates whether the rousing war

time rhetoric of my right honourable

friend matches the reality of what

has been announced today. Of course,

the pressure's on the public

finances and households balance

sheet can only be alleviated if

productivity growth improves. I

welcome his further investment in

the national productivity investment

fun. He was right to 'em fast sides

the challenge of productivity which

is the weakest in the G7 in the UK

in his speech. The average UK worker

has to slog from 5 to produce 9- the

same value output as a worker in

Germany produces between the hours

of 9 and 3. I welcome what the

Chancellor said about more

devolution. I don't know where the

Leader of the Opposition has the

idea we don't take seriously the

northern powerhouse or the Midlands

engine on this side of the House. I

can tell him as a Midlands member of

Parliament, we take them very

seriously. This side of the House

believes in devolution. There are no

easy solutions to the UK's weak

productivity performance. We can do

two things to help with the puzzle.

The first is better infrastructure,

including digital infrastructure.

The big political divide in

infrastructure policy is not between

the parties but action and inaction.

The Chancellor must act on the

commission's recommendations when

published. I welcome his commitment

today to implement the commission's

recommendation from the Oxford,

Milton Keynes corridor. And the

discount of lending to local

authorities so they can invest in

infrastructure. The second answer to

productivity is to retain the UK's

historic commitment to openness,

#2r5ied, investment and to

migration. Global Britain must be a

reality and not just a slogan. The

economic case for leaving the EU has

always rested and continues to rest

on openness. We must not allow the

Brexit process to mark the start of

a decent into economic nationalism.

It is only through productivity

growth households can be weaned off

consumer credit without cutting back

consumption and reducing living

standards. It is only through

productivity growth the Chancellor

can Meade things can pries ops bes

NHS, public #1ek9er pay and bricks

the cop tinge Si methods. For the

avoidance of doubt. Let us dismiss

the idea that Brexit induced fiscal

windfall will reduce the pressures

op our health service. There are no

easy choices or a pot of gold under

the Brexit rainbow. At the cost of

long-term damage to trust in

politics. The Chancellor's right to

have identified the technology

revolution and say Britain is at the

forefront of it. He is right to

identify the need for more young