The Budget 2017

0:00:05 > 0:00:08It's 11:30, Wednesday November the 22nd.

0:00:08 > 0:00:11In 60 minutes, Chancellor Phillip Hammond will deliver the first

0:00:11 > 0:00:15Autumn Budget for over 20 years.

0:00:15 > 0:00:18As we head towards life outside the European Union,

0:00:18 > 0:00:21can Spreadsheet Phil move beyond the numbers and tell us

0:00:21 > 0:00:27about the shape of things to come?

0:00:54 > 0:00:56Good morning, live from Westminster.

0:00:56 > 0:01:03Welcome to our special coverage of this Autumn Budget of 2017.

0:01:03 > 0:01:06The last Chancellor to deliver a Budget as the leaves turned brown

0:01:06 > 0:01:09was Kenneth Clarke back in 1996.

0:01:09 > 0:01:12The following year, Labour's new Chancellor, a young chap

0:01:12 > 0:01:15called Gordon Brown, delivered a summer Budget

0:01:15 > 0:01:18following his party's landslide election victory.

0:01:18 > 0:01:21After that, Budgets took place in the early spring and have

0:01:21 > 0:01:23remained there ever since.

0:01:23 > 0:01:30Until today.

0:01:30 > 0:01:33Well, just a few minutes ago, the Chancellor emerged from Number

0:01:33 > 0:01:3511 Downing Street with the special red box containing

0:01:35 > 0:01:43the Budget speech.

0:01:43 > 0:01:54The red box goes all the way back to Gladstone when he was Chancellor.

0:01:54 > 0:01:57The Chancellor was accompanied by his Treasury team,

0:01:57 > 0:01:58including Elizabeth Truss, the Chief Secretary,

0:01:58 > 0:02:00and his deputy in the department.

0:02:00 > 0:02:02We'll be speaking to her once the Budget has been revealed.

0:02:02 > 0:02:06The Chancellor will have to sit through PMQs at noon.

0:02:06 > 0:02:11He'll be on his feet by 12:30, assuming the Speaker sticks to time.

0:02:11 > 0:02:15Stay with us as we bring you the Budget in full,

0:02:15 > 0:02:21expert analysis and reaction from across the political spectrum.

0:02:21 > 0:02:24I'm outside Parliament, gauging reaction from leading

0:02:24 > 0:02:26political figures and assessing how Westminster will respond

0:02:26 > 0:02:29to today's Budget.

0:02:29 > 0:02:32I'm in Peterborough, at a leading manufacturer of lorry trailers.

0:02:32 > 0:02:35The Government has big plans to promote growth in this area

0:02:35 > 0:02:37so what will businesses in this region

0:02:37 > 0:02:41make of today's announcements?

0:02:41 > 0:02:44And the Budget will have a big impact on your personal finances.

0:02:44 > 0:02:47I'll be taking your questions on how it affects you and your family.

0:02:54 > 0:02:56Keeping me company, and keeping me right,

0:02:56 > 0:03:00throughout today's four-hour special, a trio of BBC expertise

0:03:00 > 0:03:03at its finest.

0:03:03 > 0:03:06Political editor Laura Kuenssberg, economics editor Kamal Ahmed,

0:03:06 > 0:03:11and business editor Simon Jack.

0:03:11 > 0:03:13As well as their on-air comments, they'll be providing plenty

0:03:13 > 0:03:20of thoughts on social media as the speech unfolds.

0:03:20 > 0:03:22If you want to join the Twitter conversation,

0:03:22 > 0:03:24use the hashtag #Budget2017.

0:03:24 > 0:03:29You can also email us at HaveYourSay@bbc.co.uk.

0:03:29 > 0:03:32We'll try and put some of your tweets and emails

0:03:32 > 0:03:38to our experts during the programme.

0:03:38 > 0:03:42Well, the Treasury has given this Budget a name -

0:03:42 > 0:03:49it's called Building a Britain Fit for the Future.

0:03:49 > 0:03:51It just trips off the tongue!

0:03:51 > 0:03:53Think of it as Philip Hammond's version of

0:03:53 > 0:03:55the long-term economic plan.

0:03:55 > 0:03:57Remember that?

0:03:57 > 0:04:00The Cabinet have been meeting in Downing Street this morning

0:04:00 > 0:04:06where the Chancellor presented his Budget.

0:04:06 > 0:04:10Of course, they can only rubber-stamp it now. It is too late

0:04:10 > 0:04:15to change anything. He told Cabinet colleagues he would set out a vision

0:04:15 > 0:04:20for post-Brexit Britain. That would allow the country to grasp the

0:04:20 > 0:04:24opportunities that leaving the EU provides. A vision from Philip

0:04:24 > 0:04:33Hammond. Stay tuned for that. Laura, all budgets are political but this

0:04:33 > 0:04:37one has a high political bar to climb. It from what I see it is

0:04:37 > 0:04:41meant to stabilise a shaky government, stabilise a shaky Prime

0:04:41 > 0:04:45Minister, but keep the Chancellor in his job.And as much as it has a

0:04:45 > 0:04:49high bar of what it needs to achieve, it has a pretty low bar in

0:04:49 > 0:04:53terms of the scale of measures we actually expect. I think the biggest

0:04:53 > 0:04:58thing for Philip Hammond to do today is not dropped the ball, not mess

0:04:58 > 0:05:09up. Yes, the government is pretty shaky, bit wobbly, fragile

0:05:09 > 0:05:11certainly, probably the best word of use -- the best word to use about

0:05:11 > 0:05:14the state of affairs. There are people in the Tory party, sitting on

0:05:14 > 0:05:18the benches behind him, some of them want to see him gone. And thirdly,

0:05:18 > 0:05:22he has to try and show that he has been able to go some way of

0:05:22 > 0:05:26addressing the concerns among many members of the public that meant the

0:05:26 > 0:05:31Tories lost their majority. So a very difficult cocktail of goals for

0:05:31 > 0:05:36him to try and score today, but I think today the main objective is

0:05:36 > 0:05:41don't mess up. The last time he was at the dispatch box he made a very

0:05:41 > 0:05:47big mistake and then did a dramatic screeching U-turn a week later.So

0:05:47 > 0:05:51the Tory backbenches are nervous about this Budget and worried if he

0:05:51 > 0:05:56is up to it?They certainly are. One Cabinet minister said to me last

0:05:56 > 0:06:03week, things are very difficult. If it is a difficult Budget things

0:06:03 > 0:06:06could get very difficult. Talk about understatement. The government has

0:06:06 > 0:06:10gone from crisis to crisis in the last few weeks, whether that was

0:06:10 > 0:06:13over Cabinet resignations or whether it was the ongoing drama and the

0:06:13 > 0:06:18pretty public scrapping of what is going on in the Brexit negotiations.

0:06:18 > 0:06:23They have had to weather a series of cyclones, if you like, and there is

0:06:23 > 0:06:30a question of whether they are holding on and a Budget to go wrong

0:06:30 > 0:06:32could be extremely serious for them. That said, as we have discussed on

0:06:32 > 0:06:36many occasions, the fundamentals of the Tory party have not really

0:06:36 > 0:06:40changed. There is no one person who wants to stick their hand up and

0:06:40 > 0:06:45they move out, Theresa, my turn. I think we should not overrate the

0:06:45 > 0:06:49idea that somehow Philip Hammond is auditioning today to keep his job. I

0:06:49 > 0:06:55am not sure we are in that territory.We will see. Kamal,

0:06:55 > 0:06:59budgets these days are all about borrowing and financing the

0:06:59 > 0:07:02deficits, this government has borrowed a tonne more money, it is

0:07:02 > 0:07:07going to borrow more, but there are constraints?Absolutely, Andrew.

0:07:07 > 0:07:16Let's look at some of the economic challenges. Let's start with the

0:07:16 > 0:07:18all-important borrowing figures. That is the money the government

0:07:18 > 0:07:22used to cover the difference between what it spends and what it raises in

0:07:22 > 0:07:27taxes. Let's go back to March and the Office for Budget

0:07:27 > 0:07:30Responsibility, the official government watchdog, and it forecast

0:07:30 > 0:07:35for the last financial year, borrowing would hit that big number,

0:07:35 > 0:07:39£51.7 billion, then it would go down. Go up a little bit this

0:07:39 > 0:07:45financial year and then gently go down to the end of 2022 down to

0:07:45 > 0:07:49£16.8 billion. It looks like the Chancellor wants to stick to that

0:07:49 > 0:07:53target of balancing the books, wiping out the deficit by the middle

0:07:53 > 0:07:57of the next decade. But some good news here for the Chancellor. Not a

0:07:57 > 0:08:01lot of it about! The borrowing figures are slightly more positive

0:08:01 > 0:08:05than was expected. For the last financial year, borrowing is

0:08:05 > 0:08:11expected to come in at £45.7 billion. Under what they thought. If

0:08:11 > 0:08:17that is reflected what is called the forecast period up to 2022, that

0:08:17 > 0:08:23means he could have a little more wriggle room on what he can spend.

0:08:23 > 0:08:26Said that undershoot could have an impact in the current financial year

0:08:26 > 0:08:31and the next one as well, but there is another issue as well? We have

0:08:31 > 0:08:35heard a lot about productivity. We know our productivity growth in

0:08:35 > 0:08:39recent years has been poor, it is a dominant in the Western world, not

0:08:39 > 0:08:43just Britain, but it has been particularly bad here. But there has

0:08:43 > 0:08:48now been talk in the run-up that because of poor productivity growth,

0:08:48 > 0:08:53that will impact on the deficit reduction plans. How does that work?

0:08:53 > 0:08:58All of the better news on borrowing, all of that frankly over the longer

0:08:58 > 0:09:04term could be blown out of the water by this productivity problem.

0:09:04 > 0:09:07Productivity is basically the way the economy produces wealth. As you

0:09:07 > 0:09:11say, it has been growing very slowly since the financial crisis. That

0:09:11 > 0:09:15matters because that hits economic growth and that means that the

0:09:15 > 0:09:19government simply does not receive the tax revenues that it might have

0:09:19 > 0:09:26expected, had the economy been growing more rapidly. Now, the OBR

0:09:26 > 0:09:31has suggested that it is minded to substantially downgrade the

0:09:31 > 0:09:35productivity forecast for the future. If it does that, that could

0:09:35 > 0:09:41add as much as 53 billion pounds to the borrowing requirements of this

0:09:41 > 0:09:48government.That would completely screw up the deficit reduction

0:09:48 > 0:09:53plans.Exactly. The Institute for Fiscal Studies said last month if

0:09:53 > 0:09:58the prospects for productivity of very poor, that means by 2022, the

0:09:58 > 0:10:03borrowing requirement would go up to that big black bar on the far right

0:10:03 > 0:10:11of that chart, £69.9 billion. That is very gloomy.It is pretty

0:10:11 > 0:10:16extreme?Yes, but what is important, Andrew, it shows a small tweak on

0:10:16 > 0:10:27that productivity number has a big

0:10:28 > 0:10:30effect on the public finances.The problem is, the OBR will say because

0:10:30 > 0:10:33of productivity growth not being that good, it will have the

0:10:33 > 0:10:35following bad impact on the deficit. But we're not quite clear, it is a

0:10:35 > 0:10:39bit of a stretch to know what it is? That is true. It has an effect on

0:10:39 > 0:10:45people's incomes as well. There has been some better news in the last

0:10:45 > 0:10:50three months. Productivity is up 1% after two quarters of decline, so

0:10:50 > 0:10:56maybe there is a bit of sunshine.We will see. It is a tricky one for the

0:10:56 > 0:11:01Chancellor 's. For all chancellors, all sorts of problems can be washed

0:11:01 > 0:11:06away if the government grows robustly because you get more tax

0:11:06 > 0:11:10revenue. Our economy is growing but not robust Lee, it would be fair to

0:11:10 > 0:11:17say?If we go back to what the OBR forecast last March, they said

0:11:17 > 0:11:21growth would be a pretty respectable 2%. That would help the public

0:11:21 > 0:11:32finances. This year, that forecast is likely to be downgraded. The Bank

0:11:32 > 0:11:37of England suggested in its inflation report, that figure 16%

0:11:37 > 0:11:40for growth, we must expect that the OBR will follow that lead from the

0:11:40 > 0:11:46Bank of England, will degrade growth, and alongside the

0:11:46 > 0:11:52downgrading productivity, that means that these are two substantial

0:11:52 > 0:11:57headwinds that the government wants to hit this balancing the books

0:11:57 > 0:12:03target by the middle of the next decade.And the forecast on 2018 and

0:12:03 > 0:12:092019 growth were a bit gloomy already, they were around the 1.6

0:12:09 > 0:12:13mark so it does not look like a booming growth is his get out of

0:12:13 > 0:12:18jail card?No, and it will be adjusting to see what the OBR will

0:12:18 > 0:12:21say about subsequent growth and also what it will say about the possible

0:12:21 > 0:12:26impact of Brexit.Of course, they are forecasts, and although they

0:12:26 > 0:12:30don't like me mentioning it, the OBR has been known to be wrong in the

0:12:30 > 0:12:36past but we will see what happens with the new ones. Simon, unusually

0:12:36 > 0:12:39for a Tory government, a lot of people in the business community

0:12:39 > 0:12:44think this is an anti-business government. They don't like a lot of

0:12:44 > 0:12:47the rhetoric, they don't think the government is doing much for

0:12:47 > 0:12:53business. So what are their expectations for today?Businesses

0:12:53 > 0:12:57don't like budgets. They think every bit of tinkering by the Chancellor

0:12:57 > 0:13:02means they have to go back and change this. It is a lot of

0:13:02 > 0:13:06administrative burden for them. They have every reason to be suspicious

0:13:06 > 0:13:09of the government. There was the perceived attack on the

0:13:09 > 0:13:12self-employed when they tried to increase National Insurance. They

0:13:12 > 0:13:18are dealing with auto enrolment for pensions, they got a big revaluation

0:13:18 > 0:13:21in parts of the country their business rates so they are feeling a

0:13:21 > 0:13:26bit dustup. And yet, the Chancellor needs business to invest if he's

0:13:26 > 0:13:31going to unlock the productivity problem for the future. Businesses

0:13:31 > 0:13:38are saying there is too much month left at the end of the money.I like

0:13:38 > 0:13:43that!It is very hard for us to invest so help us to help you. They

0:13:43 > 0:13:47are hoping there will be little change. There are a couple of

0:13:47 > 0:13:52measures which might come in today, for example, business rates

0:13:52 > 0:13:57evaluation going from RPI inflation measure to a lower one. And then

0:13:57 > 0:14:00bring it forward more quickly. Things like that could help them but

0:14:00 > 0:14:06basically they are saying, don't do too much. The Chancellor will say in

0:14:06 > 0:14:152010 the corporation tax was 22% and it is now 19% and headed down to 17.

0:14:15 > 0:14:21They will say we are helping you out.We have just been clearing our

0:14:21 > 0:14:25throats here. There will be plenty more from Laura, Kamal and Simon

0:14:25 > 0:14:31throughout this for our special. In a moment, we will join Jo Coburn in

0:14:31 > 0:14:38Peterborough but first to Jane Hill on College Green.

0:14:38 > 0:14:44Philip Hammond's last budget back in March. Here we are again and it is

0:14:44 > 0:14:49November and no longer the Autumn Statement. Another budget. How much

0:14:49 > 0:14:55has changed since then. We have had the election, the government had a

0:14:55 > 0:15:01reduced majority and Britain is on its path to get out of the EU. Let's

0:15:01 > 0:15:10have a reminder of how much has changed.

0:15:10 > 0:15:19The main rate for the self employed will increase to 10%. I have decided

0:15:19 > 0:15:24not to proceed with the class four measures set out in the budget.The

0:15:24 > 0:15:29Article 50 process is under way and in accordance with the wishes of the

0:15:29 > 0:15:37British people the United Kingdom is leaving the European Union. I have

0:15:37 > 0:15:41just chaired a meeting of the cabinet where we agreed the

0:15:41 > 0:15:49government should call a general election.Labour will take our

0:15:49 > 0:15:55railways back into public ownership and put passengers first.What is

0:15:55 > 0:16:00Britain's deficit? Did somebody passing a piece of paper? What is

0:16:00 > 0:16:09our deficit.Not at all. The first ever proper plan to pay for and

0:16:09 > 0:16:15provide social care. Nothing has changed. We are offering a long-term

0:16:15 > 0:16:20solution for the sustainability of social care for the future.What we

0:16:20 > 0:16:26are saying is the Conservatives are the largest party. Note they do not

0:16:26 > 0:16:37have an overall majority at this stage.I hope you notice that, the

0:16:37 > 0:16:39Chancellor giving something away free.

0:16:39 > 0:16:49LAUGHTER. Just a reminder of what people at

0:16:49 > 0:16:52Westminster and the country has been living through the last few months.

0:16:52 > 0:16:59We can discuss what Philip Hammond's task is today. Debbie Abrahams is

0:16:59 > 0:17:04with me for Labour and Theresa Villiers for the Conservatives. As

0:17:04 > 0:17:08Philip Hammond left number 11 journalist called out, is this a

0:17:08 > 0:17:14make or break budget?It is, isn't it? It is an important budget, all

0:17:14 > 0:17:18of them are, and Phillip faces a difficult task, team needs to keep

0:17:18 > 0:17:24is on the path to deal with debt but also find investment for

0:17:24 > 0:17:28people'spriorities.Is there scope for that with the backdrop of

0:17:28 > 0:17:35Brexit?He has limited headroom in terms of money available,

0:17:35 > 0:17:40Parliamentary majorities, but he has headroom because of decisions he has

0:17:40 > 0:17:43taken as Chancellor, including adjustments to fiscal rules to

0:17:43 > 0:17:49reflect where we are and the emphasis, we have seen in terms of

0:17:49 > 0:17:53investing in research, technology, computer science, this is about

0:17:53 > 0:17:57making it a competitive economy and seizing opportunities not just as a

0:17:57 > 0:18:01result of leaving the EU but in terms of technology.We will come

0:18:01 > 0:18:08back to some of this. What is Labour's role today? Your party is

0:18:08 > 0:18:15behind in the opinion polls on trust in the economy.We should say it is

0:18:15 > 0:18:19clear austerity over the last seven years has failed dismally and it is

0:18:19 > 0:18:24not just me saying that in the Labour Party, it is the

0:18:24 > 0:18:30International Monetary Fund, it is economists, and others who have said

0:18:30 > 0:18:36absolute failure. People will know this. Let me finish, Jane.They want

0:18:36 > 0:18:42to know what you can pay for what you want to do.This is how we set

0:18:42 > 0:18:47out in the general election how we would pay for spending commitments,

0:18:47 > 0:18:54fully costed. People know that they are... Their living standards have

0:18:54 > 0:18:58gone down and their wages are no more than they were in 2008. What

0:18:58 > 0:19:05changes should Philip Hammond may? We have five priorities, first

0:19:05 > 0:19:09around Social Security and Universal Credit, pause and fix it. We know

0:19:09 > 0:19:14this will push a million more children into poverty as a result of

0:19:14 > 0:19:19cuts. A house-building programme. We just have to go to Westminster to

0:19:19 > 0:19:26see people sleeping rough and it has doubled in the last seven years.

0:19:26 > 0:19:29120,000 children in temporary accommodation. We need to make sure

0:19:29 > 0:19:33the public sector workers get a fair deal to stop the public sector pay

0:19:33 > 0:19:37cap which we would not would stimulate the economy.Austerity

0:19:37 > 0:19:42does not work. How do you respond to that, Theresa Villiers? Do you see

0:19:42 > 0:19:49an increase in rough slippers?The government is determined to tackle

0:19:49 > 0:19:54this and we want an end to rough sleeping and we have commitments in

0:19:54 > 0:19:57the manifesto.You have had seven years and it has got worse.The

0:19:57 > 0:20:05trouble with Labour's plans is they would involve a big increase in

0:20:05 > 0:20:09taxation for ordinary working families. Rubbish. They would

0:20:09 > 0:20:16involve more borrowing. Leaving future generations to pay for our

0:20:16 > 0:20:21debt. We need a balanced approach that recognises we still have not

0:20:21 > 0:20:25cleared the deficit, but we need to deal with debts at a pace that is

0:20:25 > 0:20:30consistent and we doing everything to support the economy and to fund

0:20:30 > 0:20:37public services as generously as we can.On a political point, how vital

0:20:37 > 0:20:42is this performance for Philip Hammond? You are not going to be

0:20:42 > 0:20:47best friends, you are on different sides in the Brexit debate. Is it

0:20:47 > 0:20:54make and break for his future?I would not say I am on a different

0:20:54 > 0:20:58side to the Chancellor. I worked with him in transport and I think he

0:20:58 > 0:21:03is talented. There is pressure on him today and there always is on the

0:21:03 > 0:21:09Chancellor on budget day and I wish him well.They have not cleared the

0:21:09 > 0:21:13deficit they promised in 2015. Economic failure from this

0:21:13 > 0:21:19government. The NHS is in crisis. 30,000 additional deaths according

0:21:19 > 0:21:22to the British Medical Journal.We will discuss it after Philip Hammond

0:21:22 > 0:21:29has stood up at lunchtime. More passionate debate come from here.

0:21:29 > 0:21:35Thanks, Jane.

0:21:35 > 0:21:40Good to see the arguments breaking out already. That bodes well for our

0:21:40 > 0:21:51discussions. Budgets watched closely by businesses and Joe Cockburn is at

0:21:51 > 0:21:56a in Peterborough.

0:21:56 > 0:22:00I am in Peterborough, a city the Conservatives lost to Labour in the

0:22:00 > 0:22:03election and I am at one of the leading manufacturers of lorry

0:22:03 > 0:22:10trailers. It is a company that has expanded over the past years

0:22:10 > 0:22:15significantly. They employ around 250 people and their biggest

0:22:15 > 0:22:20concern, something they would like to see the Chancellor address is

0:22:20 > 0:22:23productivity. It has been a buzzword over the past weeks. Who better to

0:22:23 > 0:22:31talk to the company than the managing director, welcome. And also

0:22:31 > 0:22:38to a local recruitment consultant. I talked about productivity, why is it

0:22:38 > 0:22:43important?We have invested heavily in the last three years in

0:22:43 > 0:22:48infrastructure, building some people and we need it to continue. The

0:22:48 > 0:22:52public have voted, Brexit is on us, and we need breaks to carry out

0:22:52 > 0:22:56investment.What measures are you talking about? If you have money to

0:22:56 > 0:23:02spend why not invest?We need capital investment relief on

0:23:02 > 0:23:07taxation and we have a great workforce here, looking to grow with

0:23:07 > 0:23:12us as a company grows in Peterborough. We need signs to get

0:23:12 > 0:23:19on with the situation we are in.One of the greatest barometers of

0:23:19 > 0:23:23economic performance is recruitment and job levels. What has it been

0:23:23 > 0:23:30like the last six months?We found after the result of Brexit people

0:23:30 > 0:23:34held their breath for briefly. We had a couple of jobs that went on

0:23:34 > 0:23:40hold but since then things have picked up enormously and I think

0:23:40 > 0:23:47people are moving on regardless. We cannot hold still that long. We have

0:23:47 > 0:23:5318 months to go. We are dealing with entry-level and managerial positions

0:23:53 > 0:23:56that are office-based and we find business is good.One big issue

0:23:56 > 0:24:06people want a addressed is cost of living. The government talked about

0:24:06 > 0:24:09high employment levels but are those jobs paying enough to deal with

0:24:09 > 0:24:15rising inflation?I think in this area very much as across the country

0:24:15 > 0:24:22the average pay with you comes at 2%. The cost of inflation is 3% so

0:24:22 > 0:24:30there is a gap causing a problem. I think a number of companies are

0:24:30 > 0:24:35having to do interim pay reviews for specific people to retain those

0:24:35 > 0:24:41skills. We have an issue across the country and in Peterborough with

0:24:41 > 0:24:47digital and IT people because there are not enough to go around. They

0:24:47 > 0:24:51are not coming through.That is a problem. What would you like to see

0:24:51 > 0:24:56the Chancellor do?I would like to see him make it easier for small

0:24:56 > 0:25:03businesses. Peterborough has an higher than average number and we

0:25:03 > 0:25:07need those to boost the economy.We can catch up on some of the personal

0:25:07 > 0:25:15finance issues with our expert. Among the trucks and lorries there

0:25:15 > 0:25:20is so much to watch out for and we hope you will help us with your

0:25:20 > 0:25:25questions and comments. Stamp duty, will there be a holiday for

0:25:25 > 0:25:30first-time buyers? Diesel, a tax on diesel drivers, will it go up?

0:25:30 > 0:25:37Income tax, will there be a trimming of tax breaks for pensioners and

0:25:37 > 0:25:42VAT, will small businesses have to start charging it? And tax on

0:25:42 > 0:25:46alcohol and cigarettes has gone up already this year, will it happen

0:25:46 > 0:25:57again? You should send your comments to have your say. Back to you.

0:25:57 > 0:26:03We can now talk to James Palmer, the Metro Mayor in this region. If there

0:26:03 > 0:26:08was one thing you would like the Chancellor to do what would it be?

0:26:08 > 0:26:12We need to improve infrastructure. Investment by government to

0:26:12 > 0:26:15infrastructure is investing in the next generation and creates the

0:26:15 > 0:26:20opportunity for housing growth, none more so in Cambridgeshire and

0:26:20 > 0:26:25Peterborough. We have businesses like this that want to grow and we

0:26:25 > 0:26:29need to improve infrastructure to make sure they can deliver and bring

0:26:29 > 0:26:33housing forward to feed employment growth in this county.How much

0:26:33 > 0:26:37confidence do you have the Chancellor will be radical enough?

0:26:37 > 0:26:43He is under pressure to do something dramatic, will he be able to deliver

0:26:43 > 0:26:48within the tight constraints?The Chancellor by the nature of position

0:26:48 > 0:26:53is under pressure from everybody. I believe he can forge the right path

0:26:53 > 0:26:58and going the right direction. He can make the right decisions. It his

0:26:58 > 0:27:07chance to be on -- to be honest, to make sure devolved areas like

0:27:07 > 0:27:12Cambridgeshire and Peterborough can get on with the job. It is about

0:27:12 > 0:27:15people like myself also and the position I am in creating the

0:27:15 > 0:27:20environment where we can manage growth it comes to our area.How

0:27:20 > 0:27:26much a priority is the issue of pay for public sector workers? Pay rise

0:27:26 > 0:27:32for nurses and abuse to the NHS?It is key, that it is not just public

0:27:32 > 0:27:36sector workers struggling with low pay increases. The economy is

0:27:36 > 0:27:42strong. We know we are creating jobs. We know we are creating jobs

0:27:42 > 0:27:47and being in work is better than being out of work but we know that

0:27:47 > 0:27:52people want more money and it is not just public sector workers, it is

0:27:52 > 0:27:57people across the board, people in this kind of industry. We have to be

0:27:57 > 0:28:01fair and look after the entire population, not just portions of it.

0:28:01 > 0:28:10That is it from us for the moment. Obviously returned to us soon.

0:28:10 > 0:28:13Thanks, Jo, and you can also take advantage the BBC's range of expert

0:28:13 > 0:28:16analysis and all the latest Budget news on the BBC website -

0:28:16 > 0:28:23that's bbc.co.uk/budget.

0:28:23 > 0:28:29It's nearly midday here at Westminster.

0:28:29 > 0:28:34We can go back to the helicopter. You know it is an important occasion

0:28:34 > 0:28:38when there is a helicopter. We will go to the House of Commons for Prime

0:28:38 > 0:28:43Minister's Questions.

0:28:43 > 0:28:48Will the pay cap be scrapped? It already has been in a couple of

0:28:48 > 0:28:53areas. I expect the Chancellor to set out further reform particularly

0:28:53 > 0:28:57for nurses but what I understand is crucially there will not be extra

0:28:57 > 0:29:05cash to go to public sector pay. If the unions, Labour, people who are

0:29:05 > 0:29:09going home to and from public sector jobs thinking I have desperately

0:29:09 > 0:29:13decided I need a pay rise, if they think they will get it today, I

0:29:13 > 0:29:20understand they will not. There will be extra cash for the NHS but it is

0:29:20 > 0:29:25not clear how much more, not as much as the 4 billion they asked for. I

0:29:25 > 0:29:31expect the NHS would say if the people who decide nurses' pay, which

0:29:31 > 0:29:34is not the NHS itself, so there should be an increase all of that

0:29:34 > 0:29:39extra money could be swallowed up immediately. Not a big check for

0:29:39 > 0:29:46public sector pay but further moves towards say the era when it was held

0:29:46 > 0:29:51down as a political promise, that is gone. Jeremy Hunt said some time ago

0:29:51 > 0:29:56in the Commons the pay cap had gone. I understand he is at a hospital

0:29:56 > 0:29:59somewhere today so there could be money.We are not sure if that is

0:29:59 > 0:30:06the case. There will be some extra money, not sure how much.There are

0:30:06 > 0:30:13a lot of bills in the Chancellor's in trade. He haps to find 2 billion

0:30:13 > 0:30:18on the U-turn on National Insurance and the deal for Northern Ireland

0:30:18 > 0:30:23worth one billion and 2 billion for affordable homes, Mrs May told us,

0:30:23 > 0:30:28public sector pay cap has to be paid for. There have been other spending

0:30:28 > 0:30:33commitments. I would suggest when you add it up and look at the

0:30:33 > 0:30:44difficulties he has with the deficit, he will loosen his belt.

0:30:44 > 0:30:48I have asked your question but you have not got time to answer it! Hold

0:30:48 > 0:30:57that thought and let's go to PMQs. Members across the House will want

0:30:57 > 0:31:01to join me in congratulating Sarah Clark inherited when as Lady Usher

0:31:01 > 0:31:07of the Black Rod. She will be the first woman to hold this role in its

0:31:07 > 0:31:12650 year history and we offer her our best wishes.

0:31:12 > 0:31:15This morning I had meetings with ministerial colleagues and others.

0:31:15 > 0:31:21In addition to my duties, I will have further such meetings today.

0:31:21 > 0:31:33Mr Speaker, the BBC are currently broadcasting Drugsland, filmed in my

0:31:33 > 0:31:39constituency, showing the catastrophic impact of drugs laws on

0:31:39 > 0:31:42innocent bystanders. We'll be Prime Minister commit to watching

0:31:42 > 0:31:46Drugsland and Royal commission on our drugs laws which are plainly

0:31:46 > 0:31:51failing?I'm pleased to say that the Home Office under my right

0:31:51 > 0:31:55honourable friend the Home Secretary launched the drugs strategy only a

0:31:55 > 0:31:59matter of weeks ago. We recognise the importance of this issue. Drugs

0:31:59 > 0:32:04significantly affect people's lives, and sadly we also see people driving

0:32:04 > 0:32:08as a result of taking drugs but also the criminal activity that takes

0:32:08 > 0:32:16place around drugs. We take this very seriously, that is why we have

0:32:16 > 0:32:19launched our strategy. Divorce and family breakdown takes

0:32:19 > 0:32:22an emotional toll on all those involved, but the finally dynamic

0:32:22 > 0:32:26often overlooked is that between grandparents and their

0:32:26 > 0:32:29grandchildren. If access to grandchildren is removed or blocked,

0:32:29 > 0:32:34some grandparents call this a form of living bereavement. Will the

0:32:34 > 0:32:37Prime Minister join me, Dame Esther Rantzen, and thousands of

0:32:37 > 0:32:41grandparents across the country, to call for a change in the law to give

0:32:41 > 0:32:46access rights to grandchildren as is the case in France?My honourable

0:32:46 > 0:32:49friend is absolutely right that of course grandparents do play an

0:32:49 > 0:32:54important role in the lives of their grandchildren. We can all I'm sure

0:32:54 > 0:33:00sympathise with those who suffer anguish when they are prevented from

0:33:00 > 0:33:04seeing their grandchildren. When making decisions about a child's

0:33:04 > 0:33:09future, the first consideration must be the child's welfare. The law

0:33:09 > 0:33:13already allows family courts to order that a child should spend time

0:33:13 > 0:33:17with their grandparents and I understand my honourable friend has

0:33:17 > 0:33:20recently seen the Minister for the state of justice and I'm sure they

0:33:20 > 0:33:28will consider the points carefully. Jeremy Corbyn.Thank you, Mr

0:33:28 > 0:33:33Speaker. I joined the Prime Minister in congratulating the new Usher of

0:33:33 > 0:33:36the Black Rod and I am pleased it is a woman who has got that position at

0:33:36 > 0:33:42last. I hope the whole house will join me in sending solidarity

0:33:42 > 0:33:46following the atrocious suicide bombing which killed 50 people in

0:33:46 > 0:33:49eastern Nigeria. We should speak with sympathy for those who have

0:33:49 > 0:33:55lost loved ones and the obvious trauma they are all going through.

0:33:55 > 0:33:59Mr Speaker, the Irish Prime Minister who has discussed Brexit with the

0:33:59 > 0:34:04British government says sometimes it doesn't seem like they have thought

0:34:04 > 0:34:09all this through. So can the Prime Minister reassure him by plainly

0:34:09 > 0:34:17outlining the Government policy on the Irish border?First of all, I am

0:34:17 > 0:34:19glad the right honourable gentleman has welcomed the new Lady Usher of

0:34:19 > 0:34:24the Black Rod. I hope it will not take 650 years before the Labour

0:34:24 > 0:34:35Party has a female leader.

0:34:39 > 0:34:46On the second issue... On the second issue that he raised, he referred to

0:34:46 > 0:34:51the issue of the attack that had taken place in eastern Nigeria, and

0:34:51 > 0:34:55of course I'm sure the thoughts and condolences of the whole House will

0:34:55 > 0:34:59be with those affected by it. He also asked me to outline our policy

0:34:59 > 0:35:03between the border of an end and the Republic of Ireland. I'm very happy

0:35:03 > 0:35:07to do so. We have done so on a number of occasions. We are very

0:35:07 > 0:35:11clear first of all in relation to the movement of people, the Common

0:35:11 > 0:35:16travel area will continue to operate as it has done since 1923, and on

0:35:16 > 0:35:19trade and movement of goods and services across-the-board, we will

0:35:19 > 0:35:27not see a hard border being introduced. We have been very clear.

0:35:27 > 0:35:31Jeremy Corbyn.Mr Speaker, yesterday, the Foreign Secretary

0:35:31 > 0:35:35said there can be no border, that will be unthinkable. Maybe, but they

0:35:35 > 0:35:39have had 17 months to come up with an answer to this question, and

0:35:39 > 0:35:44there is still no answered the question because they have not

0:35:44 > 0:35:48engaged with the negotiations properly. There is another person

0:35:48 > 0:35:56who doesn't think the negotiations are going to and that is the right

0:35:56 > 0:36:00honourable member for Woking, who it was an ecclesiastic campaign for

0:36:00 > 0:36:04Brexit, but also finds time to be the chief global strategist for

0:36:04 > 0:36:11Charles Stanley investments. And he recently advised clients to invest

0:36:11 > 0:36:20elsewhere as the UK is hitting the brakes. Does the Prime Minister take

0:36:20 > 0:36:28advice from the member for Woking and does she agree with him? --

0:36:28 > 0:36:33Wokingham.We have been engaging fully in the negotiations in

0:36:33 > 0:36:38relation to Northern Ireland and other issues with the negotiations,

0:36:38 > 0:36:43and indeed, significant progress has been made. That is why I have said

0:36:43 > 0:36:47we have got agreement on the operation of the Common travel area

0:36:47 > 0:36:52for the future. He says we have not put any ideas about the board out, I

0:36:52 > 0:36:58have to say to him, we published a paper back in the summer on the

0:36:58 > 0:37:02hospital customs arrangements which could take place -- the possible

0:37:02 > 0:37:06customs arrangements which could take place. We are happy to move to

0:37:06 > 0:37:10further discussions of the customs and trading relationship we will

0:37:10 > 0:37:14have not just between Northern Ireland and the Republic, but

0:37:14 > 0:37:16between the United Kingdom and European Union. That does mean

0:37:16 > 0:37:20moving on to face two and the question for the right honourable

0:37:20 > 0:37:25gentleman, if he thinks it is so important, why do his MEPs vote

0:37:25 > 0:37:30against it?Mr Speaker, the EU's chief negotiator said this week the

0:37:30 > 0:37:33UK financial sector will lose its current rights to trade with Europe.

0:37:33 > 0:37:40It seems neither EU negotiators or the Government have any idea where

0:37:40 > 0:37:46this is going. Last week, the Brexit secretary said he would guarantee

0:37:46 > 0:37:50free movement for bankers post Brexit. Are there any other groups

0:37:50 > 0:37:58to whom the Prime Minister believes freedom of movement should apply,

0:37:58 > 0:37:59nurses, doctors, teachers, scientists, agricultural workers,

0:37:59 > 0:38:07care workers?I'm very interested that the right honourable gentleman

0:38:07 > 0:38:10has found that his appearances at prime ministers questions have been

0:38:10 > 0:38:14going so well, he has had to borrow a question from the leader of the

0:38:14 > 0:38:20Liberal Democrats, which he asked me last week. Perhaps the Leader of the

0:38:20 > 0:38:24Opposition should pay more attention to what happens in prime ministers

0:38:24 > 0:38:30questions. We have been absolutely clear that we will be introducing

0:38:30 > 0:38:33new immigration rules and as we introduce them we will take account

0:38:33 > 0:38:39of the needs of the British economy in doing so. That is why the Home

0:38:39 > 0:38:43Secretary has asked the migration advisory committee to advise on base

0:38:43 > 0:38:48areas where we need to pay the killer attention to migration coming

0:38:48 > 0:38:52into the United Kingdom. We want to get on to deal with the question of

0:38:52 > 0:38:59the future trading relationship, but I am also optimistic about the

0:38:59 > 0:39:04opportunities that will be available to this country and about the deal

0:39:04 > 0:39:08we can get from the negotiations we are having. The right honourable

0:39:08 > 0:39:11gentleman cannot even decide if he wants to be in the customs union,

0:39:11 > 0:39:17out of it, in the single market, out of it. He needs to get his act

0:39:17 > 0:39:22together.In April, the Brexit secretary was confident the European

0:39:22 > 0:39:26banking authority would be staying in London. Now he can't even

0:39:26 > 0:39:30guarantee banks having a right to trade with Europe. Last week, the

0:39:30 > 0:39:37Government voted down Labour's amendments to protect workers'

0:39:37 > 0:39:43rights. The Foreign Secretary described employment regulation as

0:39:43 > 0:39:48and I quote: backbreaking. And repeatedly promised to and I quote

0:39:48 > 0:39:52again: scrap the social chapter. Why when she guarantee workers' rights

0:39:52 > 0:39:58order she agree with the Foreign Secretary on these matters?We have

0:39:58 > 0:40:05guaranteed workers' rights. We have introduced a bill in the House of

0:40:05 > 0:40:08Commons to guarantee workers' rights and the Labour Party voted against

0:40:08 > 0:40:17it.Mr Speaker, The Record is clear, this government voted down our

0:40:17 > 0:40:24amendment to protect workers' rights. The Environment Secretary

0:40:24 > 0:40:33said he wanted a green Brexit. Yet again, Conservative MPs voted down

0:40:33 > 0:40:38Labour's amendments to guarantee environmental protection. On the 5th

0:40:38 > 0:40:42of December, Mr Speaker, the European financial summit takes

0:40:42 > 0:40:47place to address the issue of tax dodging as exposed by the Paradise

0:40:47 > 0:40:55papers. There are three proposals on the table, to blacklist tax havens

0:40:55 > 0:41:00like Bermuda, nude transparency rules to tax intermediaries, and

0:41:00 > 0:41:06mandate three country by country reporting for profit. Will the Prime

0:41:06 > 0:41:11Minister back these proposals, or is she is still threatening to turn

0:41:11 > 0:41:19Britain into a tax haven?I will take no lectures from the Labour

0:41:19 > 0:41:26Party on dealing with tax avoidance and tax evasion. £160 billion more

0:41:26 > 0:41:32taken as a result of action taken by Conservatives in government. 75 new

0:41:32 > 0:41:38measures to deal with tax avoidance and tax evasion. And I am pleased to

0:41:38 > 0:41:43say, recently, HMRC won an important case on tax avoidance in the Supreme

0:41:43 > 0:41:48Court, which means a further one point £1 billion coming to the

0:41:48 > 0:41:53United Kingdom. He may talk about tax avoidance and tax evasion, it is

0:41:53 > 0:41:58this government which takes action and makes sure we collect it.Her

0:41:58 > 0:42:03predecessor block EU wide proposals for a public register of trust and

0:42:03 > 0:42:08again, the Conservative MPs have voted down Labour's amendments to

0:42:08 > 0:42:13deal with tax avoidance. Mr Speaker, when it comes to Brexit, this

0:42:13 > 0:42:26government is a shambles.Order! Order! Far too many members are

0:42:26 > 0:42:32gesticulating on both sides of the House in a frenetic and frankly,

0:42:32 > 0:42:41outlandish fashion. I say to the honourable member, he should seek to

0:42:41 > 0:42:44imitate the Zen like calm and statesmanship of the Father of the

0:42:44 > 0:42:55House. Mr Jeremy Corbyn. I have much in common with the

0:42:55 > 0:43:09venom, Mr Speaker. -- I have much in common with zen, Mr Speaker.

0:43:17 > 0:43:23Mr Speaker. 17 months after the referendum, they say there can be no

0:43:23 > 0:43:27hard border but haven't worked out how. They say they will protect

0:43:27 > 0:43:32workers' rights and then vote against it. They say they will

0:43:32 > 0:43:35protect environmental rights and then vote against it. They promised

0:43:35 > 0:43:42action on tax avoidance and then vote against it time and time again.

0:43:42 > 0:43:46And, Mr Speaker, once again the Foreign Secretary offers his

0:43:46 > 0:43:52opinions, as does the Environment Secretary saying, there is

0:43:52 > 0:43:57insufficient energy going into these Brexit negotiations. Their words, Mr

0:43:57 > 0:44:04Speaker, not mine. Is it the truth this government has no energy, no

0:44:04 > 0:44:10agreed plan and no strategy to deliver a good Brexit for Britain?

0:44:10 > 0:44:14Can I say to the right honourable gentleman, he talks about voting

0:44:14 > 0:44:18against tax avoidance measures, it was the Labour Party which refused

0:44:18 > 0:44:23to allow tax avoidance measures to go through in a bill before we

0:44:23 > 0:44:27called the general election. So he should look at his own record and he

0:44:27 > 0:44:32talks about people taking different opinions. I might remind him that on

0:44:32 > 0:44:35Monday, and perhaps the Shadow Chancellor would like to listen to

0:44:35 > 0:44:43this? On Monday, when we were putting through that important piece

0:44:43 > 0:44:48of legislation in relation to customs and taxation and Europe, 76

0:44:48 > 0:44:57Labour MPs voted in a different lobby than his front bench.

0:44:57 > 0:45:04The party has no clue on Brexit in this Commons is the Labour Party.

0:45:04 > 0:45:11Week in and week out the right honourable gentleman comes to this

0:45:11 > 0:45:17House and talks down our country and is pessimistic about our future. Let

0:45:17 > 0:45:25me tell him, I am optimistic about our future. I am optimistic about

0:45:25 > 0:45:29the success we can make a Brexit and I am optimistic about the well-paid

0:45:29 > 0:45:35jobs that will be created, I am optimistic about homes we will

0:45:35 > 0:45:38build, that conservatives are building a Briton fit for the

0:45:38 > 0:45:45future. All he offers is a blast from the past.

0:45:56 > 0:46:01With the Prime Minister reassure people this Conservative government

0:46:01 > 0:46:05is committed to maintaining the United Kingdom's strong commitment

0:46:05 > 0:46:11to the highest standards of animal welfare now and post Brexit.I am

0:46:11 > 0:46:16happy to give that commitment. We already have some of the highest

0:46:16 > 0:46:21animal welfare standards in the world and as we leave the EU we

0:46:21 > 0:46:28should enhance those standards. We have set out proposals to introduce

0:46:28 > 0:46:34mandatory CCTV in slaughterhouses and increase sentences for animal

0:46:34 > 0:46:38cruelty, ban microbeads that damage marine life and banned the ivory

0:46:38 > 0:46:42trade to bring an end to elephant poaching and we recognise animals

0:46:42 > 0:46:50are sentience beings and should be treated accordingly. The animal

0:46:50 > 0:46:55welfare act 2006 provides protection for all animals capable of

0:46:55 > 0:47:00experiencing pain or suffering under the control of man. I reaffirmed to

0:47:00 > 0:47:05my honourable friend we will ensure we maintain and enhance animal

0:47:05 > 0:47:11welfare standards when we leave the EU.

0:47:11 > 0:47:17Can the Prime Minister tell the House how many jobs have been lost

0:47:17 > 0:47:23this week with the departure of the European medicines authority and

0:47:23 > 0:47:31banking authority from London?We are seeing those two agencies leave

0:47:31 > 0:47:34the United Kingdom and go elsewhere in the European Union that when he

0:47:34 > 0:47:38talks about the number of jobs being created we have seen under this

0:47:38 > 0:47:43government 3 million jobs created. That is a record I would have

0:47:43 > 0:47:51thought even he would welcome. Of course, the Prime Minister

0:47:51 > 0:47:56refused to answer the question. Let me tell her, so she is aware of the

0:47:56 > 0:48:03cost of the hard Tory Brexit, losing the EMA and EBA means losing over

0:48:03 > 0:48:081000 jobs and the Bank of England have told us the city will lose

0:48:08 > 0:48:1775,000 jobs, jobs are already gone and jobs are going, Brexit is

0:48:17 > 0:48:22already biting. Will the Prime Minister recognise that exiting the

0:48:22 > 0:48:29EU is losing jobs and centres of excellence from the United Kingdom?

0:48:29 > 0:48:34I recognise that those agencies are leaving the United Kingdom but the

0:48:34 > 0:48:38right honourable gentleman talks about numbers of jobs lost. Since

0:48:38 > 0:48:47the Conservatives came into government, 3 million jobs, 3

0:48:47 > 0:48:51million more people in work, 3 million more people able to provide

0:48:51 > 0:48:58an income for themselves and their families.

0:48:58 > 0:49:02Last year housing associations generated 5.5 billion in cash

0:49:02 > 0:49:09surplus which could be used to build 48,000 new homes. The accumulated

0:49:09 > 0:49:15reserves or housing associations come to 42 billion which would mean

0:49:15 > 0:49:1936,500 properties a year for the next ten years could be built. Would

0:49:19 > 0:49:22my right honourable friend look at ways we can make sure housing

0:49:22 > 0:49:26associations use the money to build the new homes people want rather

0:49:26 > 0:49:32than having them sitting in the bank.He raises an important point

0:49:32 > 0:49:35and the issue of housing and homelessness is something he has

0:49:35 > 0:49:42been a campaigner on. This is already the approach taken by

0:49:42 > 0:49:48housing associations. They are nonprofit organisations and

0:49:48 > 0:49:52surpluses of reinvested in the business and in 2015, investment in

0:49:52 > 0:49:55new and existing property was more than double the surpluses they

0:49:55 > 0:50:03generated. I have announced an additional 2 billion funding for

0:50:03 > 0:50:07affordable homes including social rent and last week housing

0:50:07 > 0:50:10associations were reclassified to the private sector which takes 70

0:50:10 > 0:50:15billion of debt off the balance sheet which means greater certainty

0:50:15 > 0:50:22for housing associations to get on with the job of building more homes.

0:50:22 > 0:50:28My thoughts are with the many constituents who have friends and

0:50:28 > 0:50:35family in Nigeria. The SNP has asked 140 times that the VAT paid by

0:50:35 > 0:50:38police and Fire Services Amber hundred and £40 million to be

0:50:38 > 0:50:44refunded. The Chancellor said only last month legally we would not be

0:50:44 > 0:50:49able to recover that and the UK Government is constrained by the

0:50:49 > 0:50:56rules in place.Was he misleading us? The SNP may have answered a

0:50:56 > 0:51:00number of questions but the SNP knew when they took the decision to

0:51:00 > 0:51:05create a single police and fire authority this would be the VAT

0:51:05 > 0:51:15treatment. Given the revised housing proposals

0:51:15 > 0:51:22that would force unprecedented numbers to the equivalent of a new

0:51:22 > 0:51:27town will the Prime Minister give me and my constituents reassurances

0:51:27 > 0:51:32unnecessary large-scale investment which will need to be made to boost

0:51:32 > 0:51:35public service infrastructure that will have to cope with up to 100,000

0:51:35 > 0:51:45more people?This is of course an important point for people. We want

0:51:45 > 0:51:47to see more homes built because I want young people to have the

0:51:47 > 0:51:51prospect they are going to have the future their parents and

0:51:51 > 0:51:54grandparents had to own their own homes and we will go further in

0:51:54 > 0:51:59building more homes but she is right, as we do that we need to make

0:51:59 > 0:52:04sure the infrastructure is in place and we are putting in billions for

0:52:04 > 0:52:09economic infrastructure up to 2021 including issues like transport,

0:52:09 > 0:52:14fibre broadband, but we recognise the importance of making sure homes

0:52:14 > 0:52:19are supported by the right infrastructure.

0:52:19 > 0:52:22I am proud the last Labour government lifted more than 1

0:52:22 > 0:52:29million children out of poverty. This government seems committed to

0:52:29 > 0:52:34doing the opposite. With the Institute for Fiscal Studies

0:52:34 > 0:52:41predicting an additional 1.2 million children will be pushed into poverty

0:52:41 > 0:52:48by 2021. That is on top of the 4,000,020 15-16. Is the Prime

0:52:48 > 0:52:52Minister proud of her government's record of failure on this and does

0:52:52 > 0:52:58she think the worrying forecast is acceptable?

0:52:58 > 0:53:04Far from the way in which she has portrayed the situation we have seen

0:53:04 > 0:53:10since 2010 600,000 fewer people in absolute poverty, a record low,

0:53:10 > 0:53:19300,000 fewer working age adults in absolute poverty, and 200,000

0:53:19 > 0:53:24children fewer in absolute poverty. 200,000 fewer children in absolute

0:53:24 > 0:53:33poverty. We have also seen families getting into work, 1 million fewer

0:53:33 > 0:53:47work less households. As the Prime Minister is aware

0:53:47 > 0:53:52Scotland is lagging behind the rest of the UK in terms of superfast

0:53:52 > 0:53:57broadband roll-out and in my constituency even further behind. A

0:53:57 > 0:54:04huge volume of my casework... A huge volume of my casework from one of my

0:54:04 > 0:54:09largest towns where 20,000 constituents reside, it is hardly

0:54:09 > 0:54:14what you would deem a remote area, can the Prime Minister confirm the

0:54:14 > 0:54:17next generation of funding to support the roll-out in Scotland

0:54:17 > 0:54:37will bypass that... For businesses and residents in my constituency get

0:54:37 > 0:54:44the ball band a desire?-- broadband they desire. I am happy to confirm

0:54:44 > 0:54:48that to my honourable friend and she will know we are making progress in

0:54:48 > 0:54:55Scotland but we need to go further. So programmes such as five G will

0:54:55 > 0:54:58allocate funding directly to local projects based on the quality of

0:54:58 > 0:55:03bids and my honourable friend the minister for digital has confirmed

0:55:03 > 0:55:07that their next generation of technology, we will deliver it

0:55:07 > 0:55:11directly to local authorities in Scotland. Rather than going through

0:55:11 > 0:55:16the Scottish Government because we want to make sure that Scotland is

0:55:16 > 0:55:27not left behind.

0:55:27 > 0:55:33In 2014 and enquiry was set up to look into a drug given to millions

0:55:33 > 0:55:38of pregnant women in the 60s and 70s that caused deformities and

0:55:38 > 0:55:43documents showing a cover-up. Last week a report was published

0:55:43 > 0:55:47condemned by MPs in the house is being white wash and misleading.

0:55:47 > 0:55:51Will the Prime Minister meet the victims and order a public inquiry

0:55:51 > 0:55:54so justice can be done for these people?

0:55:54 > 0:55:59I know this is an issue number of members have been concerned about

0:55:59 > 0:56:04and recognise the result of the review was not what some families

0:56:04 > 0:56:09were hoping for. It was a comprehensive independent review of

0:56:09 > 0:56:12the available evidence by experts and all the meetings of the working

0:56:12 > 0:56:20were attended by an invited independent expert at the request of

0:56:20 > 0:56:27the patient group and the overall conclusion is that the scientific

0:56:27 > 0:56:31evidence does not support a causal association but that does not

0:56:31 > 0:56:35attract from the real suffering experienced by the families and I

0:56:35 > 0:56:40recognise these conclusions are hard to accept. The Department of Health

0:56:40 > 0:56:50is focused on implementing the recommendations.

0:56:50 > 0:56:55Does my right honourable friend agreed the right revised offer to

0:56:55 > 0:56:59the European Union far from throwing money away would be worthwhile to

0:56:59 > 0:57:01secure the future trading relationship with our European

0:57:01 > 0:57:05neighbours? I say he raises an important issue

0:57:05 > 0:57:10and I set out in my speech in Florence the UK will honour

0:57:10 > 0:57:14commitments we have made during our membership. We do not want European

0:57:14 > 0:57:23partners fearing they will receive less or pay more. We can only

0:57:23 > 0:57:26resolve the financial implications of withdrawal finally as part of the

0:57:26 > 0:57:30settlement of all issues I spoke about in Florence but once that is

0:57:30 > 0:57:34done in the days of Britain paying vast sums of money to the EU every

0:57:34 > 0:57:42year will end.Every Prime Minister since 1946 has successfully

0:57:42 > 0:57:48appointed a British judge to the international Court of Justice.Why

0:57:48 > 0:57:52has she not? Can I say to the honourable gentleman the British

0:57:52 > 0:57:56Prime Minister does not appoint judges to the international Court of

0:57:56 > 0:58:01Justice. There is a process undertaken in the United Nations and

0:58:01 > 0:58:06we wish all the judges who have been appointed by votes through the UN to

0:58:06 > 0:58:15the international Court of Justice well.

0:58:15 > 0:58:19My right honourable friend might be aware in a debate last week members

0:58:19 > 0:58:22of the Scottish National Party declared if the Scottish Government

0:58:22 > 0:58:26did not agree with the final Brexit deal they would push for another

0:58:26 > 0:58:31independence referendum. This obsession with breaking up our

0:58:31 > 0:58:36United Kingdom is damaging the Scottish economy and causing

0:58:36 > 0:58:41uncertainty. Will she Jomni in asking the SNP to drop their

0:58:41 > 0:58:49obsession with a second independence referendum? -- will she join the?

0:58:49 > 0:58:53The point raised is important. Scotland had a referendum in 2014

0:58:53 > 0:58:58that was legal and fair and the result was decisive. The people of

0:58:58 > 0:59:03Scotland voted to remain part of the United Kingdom. I think that the

0:59:03 > 0:59:06election they sent a second message they didn't want a second referendum

0:59:06 > 0:59:11on this issue so I say to the Scottish Government, as we prepare

0:59:11 > 0:59:16to leave the EU, they should work with the UK Government to get the

0:59:16 > 0:59:22right deal for the whole of the UK, not taking Scotland back to these

0:59:22 > 0:59:25divisive constitutional debates of the past and I agree the SMP should

0:59:25 > 0:59:33take the unwanted proposal off the table once and for all.Will the

0:59:33 > 0:59:38Prime Minister support steel jobs in Scunthorpe and elsewhere by

0:59:38 > 0:59:40guaranteeing if the current flexibility within the emissions

0:59:40 > 0:59:47trading scheme is not retained until 2019, she will act immediately to

0:59:47 > 0:59:53ensure British industry is not financially penalise?The honourable

0:59:53 > 0:59:57gentleman raises an important point and this government has done a

0:59:57 > 1:00:01considerable amount to support the steel industry in the United

1:00:01 > 1:00:06Kingdom. I was pleased to be able to earlier in the year make a visit and

1:00:06 > 1:00:10meet with steelworkers and talk about the prospects for steel in the

1:00:10 > 1:00:17UK. We will look carefully to ensure the arrangements in place of those

1:00:17 > 1:00:22right for the national interest and we have supported steel in the past.

1:00:22 > 1:00:26Can I take my right honourable friend back to the first question

1:00:26 > 1:00:30asked by the honourable lady for Bristol West and apart from

1:00:30 > 1:00:36commending the quality of the BBC programme she referred to, on the

1:00:36 > 1:00:39issue of Prohibition of drugs globally can I draw her attention to

1:00:39 > 1:00:45the fact global policy is beginning to change and in the face of the

1:00:45 > 1:00:51evidential failure of policies since the 1961 UN single convention on

1:00:51 > 1:00:55prohibition of narcotics drugs, and will she look at the evidence that

1:00:55 > 1:01:02will emerge in the United States and Canada on the legalisation of

1:01:02 > 1:01:04cannabis markets there as well as decriminalisation in Portugal and

1:01:04 > 1:01:15elsewhere?We are grateful. Quite enough, we are grateful.

1:01:15 > 1:01:20I can say to my honourable friend that when I was Home Secretary a

1:01:20 > 1:01:25piece of work was undertaken which looked at the experience in a number

1:01:25 > 1:01:30of countries and the ways they approach this issue of drugs. I do

1:01:30 > 1:01:33say to my right honourable friend that I take a different opinion to

1:01:33 > 1:01:36him in relation to drugs. I think those who are dealing with those who

1:01:36 > 1:01:47are affected by drugs would also do so. I think of my constituent

1:01:47 > 1:01:49Elizabeth Burdon Phillips who set up Drug Fam after the suicide of her

1:01:49 > 1:01:54son who was a drug addict. The work she is doing because a member of the

1:01:54 > 1:01:59family is on drugs and the incredible damage that can do to

1:01:59 > 1:02:02families and the individual concerned. I'm sorry I say to my

1:02:02 > 1:02:06honourable friend I take a different view. I think it is right that we

1:02:06 > 1:02:17continue to fight the war against drugs.The honourable member for

1:02:17 > 1:02:18Chesterfield has migrated a considerable way from his usual

1:02:18 > 1:02:22place but we look forward to hearing from him.People with the most

1:02:22 > 1:02:26serious disabilities find when they move on to Universal Credit they are

1:02:26 > 1:02:31£100 a week worse off, this is because there is no severe

1:02:31 > 1:02:36disability component in the payment. Does the Prime Minister realise that

1:02:36 > 1:02:40Universal Credit will continue to shame had government, whilst it

1:02:40 > 1:02:45pushes the most disabled into the worst poverty?I say to the

1:02:45 > 1:02:49honourable gentleman that we spend over £50 billion a year on benefits

1:02:49 > 1:02:53to support disabled people and people with health conditions. That

1:02:53 > 1:02:59is increased by more than £7 billion since 2010. Spending on disability

1:02:59 > 1:03:06benefits will be higher in every year to 2020 than it was in 2010.

1:03:06 > 1:03:10And as regards Universal Credit, as I have said in this chamber before,

1:03:10 > 1:03:16Universal Credit is a simpler, more straightforward system. But

1:03:16 > 1:03:19crucially, Universal Credit is helping people get into the

1:03:19 > 1:03:25workplace and making sure they keep more of the money that they earn.So

1:03:25 > 1:03:30David Amess.Will my right honourable friend join me in

1:03:30 > 1:03:34congratulating the Lyon Sea branch of the British Legion, local artist

1:03:34 > 1:03:39Beth Hooper and Mary Lister, I'm using a lottery grant for

1:03:39 > 1:03:46schoolchildren in Southend to make 7500 Saran poppies and display them

1:03:46 > 1:03:51on Southend's letters? And would she agree with me it is a further good

1:03:51 > 1:04:03reason to make Southend-on-Sea a city?IE congratulate the Leon C

1:04:03 > 1:04:07branch of the British Legion and the work they have done in

1:04:07 > 1:04:15congratulating young people in recognising the sacrifices made by

1:04:15 > 1:04:25previous generations for our safety. As for the last bit that is

1:04:25 > 1:04:30interesting. I know he champions Lee-On-Sea all the time and his bid

1:04:30 > 1:04:36will be looked at carefully. My constituent Haley Crawley is

1:04:36 > 1:04:40having palliative care for bowel cancer and she needs a specialist

1:04:40 > 1:04:44drug. She waited months to hear that her case for funding was rejected by

1:04:44 > 1:04:49NHS England and we are now waiting again to hear a reply for her

1:04:49 > 1:04:52appeal. Please will be Prime Minister right to NHS England and

1:04:52 > 1:05:00ensured that her case is treated as I priority.Obviously, I wear this

1:05:00 > 1:05:03will be causing distress to Haley while she is waiting for this appeal

1:05:03 > 1:05:07decision to come through and I am sure the Secretary of State for

1:05:07 > 1:05:09Health will look carefully at the case the honourable lady has raised.

1:05:09 > 1:05:13We were able to bring in the Cancer Drugs Fund which has enabled some

1:05:13 > 1:05:17patients to get access to drugs which otherwise would not be

1:05:17 > 1:05:20available, but I recognise the concern and distress that her

1:05:20 > 1:05:25constituent will be suffering from while she awaits for this decision.

1:05:25 > 1:05:31The Prime Minister will be aware that under President Mugabe, British

1:05:31 > 1:05:34citizens living in Zimbabwe, especially land overs, suffered

1:05:34 > 1:05:38considerably. Can she give an assurance to the House that as we

1:05:38 > 1:05:42seek a new regime coming into Zimbabwe, the British government

1:05:42 > 1:05:47will do all it can to persuade the new regime to treat British citizens

1:05:47 > 1:05:51living lawfully in that country, treat them with respect and the

1:05:51 > 1:05:56safety and security they should have along with all other Zimbabwean

1:05:56 > 1:06:00citizens.My honourable friend does raise an important point, as we see

1:06:00 > 1:06:05this change taking place in Zimbabwe. I have to say the

1:06:05 > 1:06:07resignation of Robert Mugabe provides Zimbabwe with an

1:06:07 > 1:06:12opportunity to forge a new path, free from the depression which has

1:06:12 > 1:06:16characterised the past. We want to see a democratic free secure

1:06:16 > 1:06:20Zimbabwe, where people across communities, and from communities

1:06:20 > 1:06:31across Zimbabwe are able to

1:06:32 > 1:06:34carry out their lives without fear, without oppression and we want to

1:06:34 > 1:06:36see that country rejoining the international community. We have

1:06:36 > 1:06:39obviously provided some support to Zimbabwe in terms of UK aid, and as

1:06:39 > 1:06:41their oldest friend, we will do everything we can to support their

1:06:41 > 1:06:47change into a country which is free and democratic and free from

1:06:47 > 1:06:50oppression from all communities. Order.

1:06:50 > 1:06:53STUDIO:

1:06:53 > 1:06:57So Prime Minister's Questions comes to an end and.

1:06:57 > 1:07:01As is traditional at a Budget, the Speaker makes way for the deputy

1:07:01 > 1:07:07speaker, Lindsey Hoyle,

1:07:07 > 1:07:13speaker, Lindsey Hoyle.

1:07:13 > 1:07:17The Commons chamber now becomes the committee of ways and Means, it is

1:07:17 > 1:07:26called. That is the committee which hears Budget and financial matters.

1:07:26 > 1:07:30That is why Lindsey Hoyle the Chairman of Ways and Means takes

1:07:30 > 1:07:36over. Let's go back to the House and I'm sure we will hear from the

1:07:36 > 1:07:41Chancellor shortly. I now call the Chancellor of the

1:07:41 > 1:07:48Exchequer, the Right Honourable Philip Hammond.

1:07:48 > 1:07:52Mr Deputy Speaker, I report today on an economy which continues to grow,

1:07:52 > 1:07:56continues to create more jobs than ever before, and continues to

1:07:56 > 1:08:04confound those who seek to talk it down. An economy is set on a path to

1:08:04 > 1:08:11a new relationship with our European neighbours and a new future outside

1:08:11 > 1:08:17the European Union. A future that will be full of change, full of new

1:08:17 > 1:08:20challenges and above all, full of new opportunities. And in this

1:08:20 > 1:08:24Budget, we express our resolve to look forwards, not backwards. To

1:08:24 > 1:08:28embrace that change, to meet those challenges head-on, and to seize

1:08:28 > 1:08:37those for Britain. For negotiations on a relationship with the EU are in

1:08:37 > 1:08:40a critical phase. My right honourable friend the Prime Minister

1:08:40 > 1:08:47has been clear we seek a deep and special partnership based on free

1:08:47 > 1:08:49and frictionless trading goods, close collaboration on security and

1:08:49 > 1:08:53strong mutual respect and friendship. As Chancellor, Mr Deputy

1:08:53 > 1:08:57Speaker, I am clear that one of the biggest boosts we can provide to

1:08:57 > 1:09:01businesses and families, one of the best ways to protect British jobs

1:09:01 > 1:09:08and prosperity, as we build that new future, is to make early progress in

1:09:08 > 1:09:11delivering my right honourable friend's vision. With an

1:09:11 > 1:09:14implementation agreement that allows businesses to plan and invest with

1:09:14 > 1:09:19confidence. And this government will make the pursuit of that progress is

1:09:19 > 1:09:26a top priority in the weeks ahead. But Mr Deputy Speaker, while we work

1:09:26 > 1:09:30to achieve this deep and special partnership, we are determined to

1:09:30 > 1:09:37ensure that the country is prepared for every possible outcome. We have

1:09:37 > 1:09:43already invested almost £700 million in Brexit preparations, and today, I

1:09:43 > 1:09:49am setting aside over the next two years, another £3 billion, and I

1:09:49 > 1:09:55stand ready to allocate further sums if and when needed. Mr Deputy

1:09:55 > 1:09:59Speaker, no one should doubt our resolve. But this Budget is about

1:09:59 > 1:10:05much more than Brexit. The world is on the brink of a technological

1:10:05 > 1:10:10revolution, one that will change the way that we work and live, and

1:10:10 > 1:10:15transform our living standards for generations to come. And we face a

1:10:15 > 1:10:19choice. Either we embrace the future, seize the opportunities that

1:10:19 > 1:10:24lie within our grasp, and build on Britain's great global success

1:10:24 > 1:10:30story, or as the party opposite advocates, rejects change and turn

1:10:30 > 1:10:38inwards to the failed and irrelevant dogmas of the past. Mr Deputy

1:10:38 > 1:10:49Speaker, we have no doubt we choose the future. We choose, we choose to

1:10:49 > 1:10:55run towards change, not away from it. To prepare our people to meet

1:10:55 > 1:11:00the challenges ahead, not to hide from them. And the prize will be

1:11:00 > 1:11:05enormous. For the first time in decades, Britain is genuinely at the

1:11:05 > 1:11:10forefront of this technological revolution. Not just in our

1:11:10 > 1:11:14universities and research institutes, but this time in the

1:11:14 > 1:11:18commercial development labs of our great companies and on factory

1:11:18 > 1:11:23floors and business parks across this land. But we must invest to

1:11:23 > 1:11:26secure this bright future for Britain, and that this Budget, that

1:11:26 > 1:11:33is what we choose to do. But Mr Deputy Speaker, we are listening,

1:11:33 > 1:11:36and we understand the frustration of families where real incomes or under

1:11:36 > 1:11:44pressure. So at this Budget we choose a balanced approach. Yes,

1:11:44 > 1:11:50maintaining fiscal responsibility as we last see our debt Peking.

1:11:50 > 1:11:54Continuing to invest in the skills and infrastructure that will support

1:11:54 > 1:11:59the jobs of the future. Building the homes that will make good on our

1:11:59 > 1:12:04promise to the next generation. But crucially, also helping families to

1:12:04 > 1:12:11cope with the cost of living. Mr Deputy Speaker, as we invest in our

1:12:11 > 1:12:13country's future, I have a clear vision of what that global Britain

1:12:13 > 1:12:20looks like. A prosperous and inclusive economy. Where everybody

1:12:20 > 1:12:24has the opportunity to shine. Wherever in these islands they live,

1:12:24 > 1:12:29and whatever their background. Where talent and hard work are rewarded.

1:12:29 > 1:12:38Where the dream of home ownership is a reality for all generations. A hub

1:12:38 > 1:12:42of enterprise and innovation. A beacon of creativity. A civilised

1:12:42 > 1:12:46and tolerant place that cares for the vulnerable and nurtures the

1:12:46 > 1:12:52talented. And outward looking free trading nation, a full good in the

1:12:52 > 1:13:01world. That is the Britain that I want to leave to my children, Mr

1:13:01 > 1:13:06Deputy Speaker. A Britain we can be proud of. A country fit for the

1:13:06 > 1:13:11future. I know we will not build it overnight, but in this Budget today

1:13:11 > 1:13:18we will lay the foundations. I'm being tempted with something a

1:13:18 > 1:13:29little more exotic here, but I will stick to plain water. I did take the

1:13:29 > 1:13:36precaution... I did take the precaution of asking my right

1:13:36 > 1:13:43honourable friend to bring a packet of cough sweets just in case.

1:13:43 > 1:14:01LAUGHTER Mr Deputy Speaker, Mr Deputy

1:14:01 > 1:14:07Speaker...Order, order. I think it might be a hearing aid we all need

1:14:07 > 1:14:15if this continues.Mr Deputy Speaker, I shall first report to the

1:14:15 > 1:14:21House on the economic forecast of the independent OBR. This is the bit

1:14:21 > 1:14:29with the long economic words in it. LAUGHTER

1:14:29 > 1:14:36Once again, I thank Robert Chote and his team for their hard work over

1:14:36 > 1:14:40the last few weeks. I believe passionately that the best way to

1:14:40 > 1:14:43improve the lives of people across the length and breadth of this

1:14:43 > 1:14:48country is to help them get into work. Mr Deputy Speaker, I am

1:14:48 > 1:14:52acutely aware that 1.4 million people out of work is 1.4 million to

1:14:52 > 1:15:06many. So today... Today I welcome the OBR forecast that there will be

1:15:06 > 1:15:13another 600,000 people in work by 2022. And I am immensely proud of

1:15:13 > 1:15:17this government's record in having created over 3 million new jobs

1:15:17 > 1:15:21since 2010.

1:15:21 > 1:15:28A far cry from the 1.2 million job losses the right honourable member

1:15:28 > 1:15:33for Hayes and Harlington predicted in 2011 but in no doubt this

1:15:33 > 1:15:36government will continue its focus on getting more people into work,

1:15:36 > 1:15:41giving them security and peace of mind of a regular wage. I want work

1:15:41 > 1:15:48to be a good well-paid and regrettably our productivity

1:15:48 > 1:15:55performance continues to disappoint. The OBR assumed at each of the last

1:15:55 > 1:15:5916 fiscal events that productivity growth would return to its precrisis

1:15:59 > 1:16:05trend of about 2% per year, but it has remained stubbornly flat. Today

1:16:05 > 1:16:10they revised down the outlook for productivity growth, business

1:16:10 > 1:16:16investment and GDP growth across the forecast period. They now expect to

1:16:16 > 1:16:26see GDP grow 1.5% in 2017, one .4 in 2018, one .3 in 2019 and 2020,

1:16:26 > 1:16:36before picking up to 1.5% and finally 1.6% in 2022. With inflation

1:16:36 > 1:16:41peaking at 3% in this quarter before falling back to target in the next

1:16:41 > 1:16:49year. I reaffirm the remit that the Monetary Policy Committee and its

1:16:49 > 1:16:54inflation target. We took over an economy with the highest budget

1:16:54 > 1:17:01deficit in peacetime history. Since then, thanks to the hard work of the

1:17:01 > 1:17:07British people, that deficit has been shrinking. Next year, it will

1:17:07 > 1:17:15be below 2%. Our debt is still too high and we need to get it down. Not

1:17:15 > 1:17:20for and ideological reason, but because successive debt undermines

1:17:20 > 1:17:25economic security leaving is vulnerable to shocks. It passes the

1:17:25 > 1:17:30burden unfairly to the next generation. And because it simply

1:17:30 > 1:17:35cannot be right to spend more on our debt interest than on police and

1:17:35 > 1:17:41Armed Forces combined. I am pleased to tell the House OBR expects debt

1:17:41 > 1:17:46to peak this year and then gradually fall as a share of GDP. They turning

1:17:46 > 1:17:57point in the recovery. Mr Deputy Speaker, apparently, not everyone

1:17:57 > 1:18:02shares the view that falling debt is good news. I heard representations

1:18:02 > 1:18:08from the party opposite suggesting increasing the debt by £500 billion.

1:18:08 > 1:18:14Taking us back to square one, wasting an extra £7 billion a year

1:18:14 > 1:18:20on debt interest. If they carry on like that, there will be plenty of

1:18:20 > 1:18:33others joining Kezia Dugdale saying, I'm Labour, get me out of here. Mr

1:18:33 > 1:18:39Deputy Speaker, I have rejected these representations and instead I

1:18:39 > 1:18:43reaffirm our pledge of fiscal responsibility and our commitment to

1:18:43 > 1:18:48the fiscal rules set out last autumn. Now I choose to use some of

1:18:48 > 1:18:53the headroom I established then so that as well as reducing debt, we

1:18:53 > 1:19:00can also invest in Britain's future, support key public services, keep

1:19:00 > 1:19:04taxes low and provide a little help to families and businesses under

1:19:04 > 1:19:09pressure. A balanced approach that will prepare Britain for the future,

1:19:09 > 1:19:16not seek to hide from it. Today the OBR confirmed we are on track to

1:19:16 > 1:19:21meet our fiscal rules, borrowing is forecast to be 49.9 billion this

1:19:21 > 1:19:28year, 8.4 billion lower than forecast at the spring budget. After

1:19:28 > 1:19:32taking account of all decisions since the spring budget, the GDP

1:19:32 > 1:19:38revision and measures I will announce borrowing will fall in

1:19:38 > 1:19:46every year of the forecast from 39.5 billion next year, to 25.6 point

1:19:46 > 1:19:516,000,000,020 2-23 to reach its lowest level in 20 years. As a

1:19:51 > 1:20:00percentage of GDP falls from 2.4% to 1.9% next year, then 1.6, 1.5, 1.3

1:20:00 > 1:20:08and finally 1.1% in 22-3. The OBR forecast the structural deficit to

1:20:08 > 1:20:16be 1.3% of GDP in 2021, giving 14.8 billion of headroom against our 2%

1:20:16 > 1:20:28target. Debt will peak at 86.5% of GDP this year and then fall to 86.4,

1:20:28 > 1:20:37then 86.1, 83.1, 79.3 and 79.1 in 22 - 23, the first sustained decline in

1:20:37 > 1:20:47debt in 17 years. Under Conservative led governments, the hard work of

1:20:47 > 1:20:51the British people is steadily clearing up the mess left behind by

1:20:51 > 1:21:03Labour. At the heart of global Britain must be a dynamic and

1:21:03 > 1:21:08innovative economy. On Monday, the Prime Minister set out key elements

1:21:08 > 1:21:12of our modern industrial strategy, which will raise productivity and

1:21:12 > 1:21:16wages in all parts of the country and guarantee a brighter future we

1:21:16 > 1:21:20have promised to the next generation. The Business Secretary

1:21:20 > 1:21:26will present a White Paper in the next few days. This is not just an

1:21:26 > 1:21:32economic plan. It is a key part of our vision for a fairer Britain, a

1:21:32 > 1:21:37Britain where every one of our citizens can contribute to and share

1:21:37 > 1:21:41in the benefits of prosperity. And the key to raising the wages of

1:21:41 > 1:21:47British workers is raising investment, public and we are

1:21:47 > 1:21:53investing in Britain's future, half £1 trillion since 2010, the biggest

1:21:53 > 1:21:57rail programme since Victorian times, the largest road-building

1:21:57 > 1:22:02programme since the 1970s, the biggest increase in science and

1:22:02 > 1:22:07innovation funding in four decades and the two largest infrastructure

1:22:07 > 1:22:12projects in Europe, Crossrail and HS2. When I took this job I

1:22:12 > 1:22:16committed to make the battle to raise Britain's productivity and the

1:22:16 > 1:22:23nation's pay the central mission of the Treasury. Last autumn, I

1:22:23 > 1:22:29launched the national productivity investment funds to provide an

1:22:29 > 1:22:32additional £23 billion of investment over five years, to upgrade the

1:22:32 > 1:22:36economic infrastructure for the 21st century. Today I announce I will

1:22:36 > 1:22:45extend the fund a further year and expand it to over £31 billion.

1:22:45 > 1:22:51Meaning that public investment under this government will on average be

1:22:51 > 1:22:55£25 billion per year higher in real terms than under the last Labour

1:22:55 > 1:23:03government. We are allocating a further £2.3 billion for investment

1:23:03 > 1:23:14in R&B and will increase the main RND tax credit to 12% -- R&D. To

1:23:14 > 1:23:22drive up investment across the economy to 2.4% of GDP. Britain is

1:23:22 > 1:23:26the world's sixth-largest economy. London is the number one

1:23:26 > 1:23:30international financial services sector and we have some of the

1:23:30 > 1:23:33world's Best companies and a commanding position in a raft of

1:23:33 > 1:23:38tech and digital industries that will form the backbone of the global

1:23:38 > 1:23:44economy. Those who under estimate Britain do so at their peril.

1:23:44 > 1:23:49Because we will harness this potential and turn it into the

1:23:49 > 1:23:53high-paid, high productivity jobs of tomorrow. Others may choose to

1:23:53 > 1:23:59reject the future, we choose to embrace it. A new tech business is

1:23:59 > 1:24:08founded in Britain every hour. I want that to be every half-hour.

1:24:08 > 1:24:11Today, we invest over £500 million in a range of initiatives from

1:24:11 > 1:24:16artificial intelligence to five G and four fibre broadband and support

1:24:16 > 1:24:19regulation with the new Pioneer fund and a new geospatial data commission

1:24:19 > 1:24:28to develop... You should listen. To develop a strategy for using the

1:24:28 > 1:24:33government location data to support economic growth and to help tech

1:24:33 > 1:24:39start-ups reach scale we asked for a review of availability of capital.

1:24:39 > 1:24:44Today we are publishing an action plan to unlock over £20 billion of

1:24:44 > 1:24:49new investment in UK knowledge intensive scale up businesses

1:24:49 > 1:24:53including through a new fund in the British business bank seeded with

1:24:53 > 1:24:59£2.5 billion of public money by facilitating pension-fund access to

1:24:59 > 1:25:06long-term investment sum by doubling investments limits for knowledge

1:25:06 > 1:25:11intensive companies while ensuring EI S is not used as a shelter for

1:25:11 > 1:25:15low risk capital preservation schemes. We stand ready to step in

1:25:15 > 1:25:21to replace European investment fund lending is necessary. There is

1:25:21 > 1:25:26perhaps no technology as symbolic of the Revolution gathering pace as

1:25:26 > 1:25:29driverless vehicles.

1:25:38 > 1:25:43They surely do not want me to make the joke about the Labour Party

1:25:43 > 1:25:47again, Mr Deputy Speaker? I know Jeremy Clarkson does not like them

1:25:47 > 1:25:52but there are many other good reasons to pursue this technology.

1:25:52 > 1:25:58Today, we step up support for it. I'm sorry, Jeremy, definitely not

1:25:58 > 1:26:07the first time you have been snubbed by Hammond and May. Allah future

1:26:12 > 1:26:19-- our future vehicles will be driverless but there they will be

1:26:19 > 1:26:23electric first and that is a change that needs to come as soon as

1:26:23 > 1:26:28possible for the planet. We will establish a £400 million structure

1:26:28 > 1:26:32fund and invest an extra hundred million per plug-in car Grant and

1:26:32 > 1:26:39more for R&D. I will clarify the law so that people who charge electric

1:26:39 > 1:26:43vehicles at work will not face a benefit in kind charge from next

1:26:43 > 1:26:49year. The tax system can play an important role in protecting our

1:26:49 > 1:26:53environment. We owe it to our children the air they breathe is

1:26:53 > 1:26:57clean and we published the air quality plan this year and said then

1:26:57 > 1:27:05we would fund it through taxes on new diesel cars. From April 2018,

1:27:05 > 1:27:07the first year rate for diesel cars that do not meet the latest

1:27:07 > 1:27:15standards will go up by £1 and the existing supplement in company car

1:27:15 > 1:27:18tax will increase by one percentage point and drivers buying a new car

1:27:18 > 1:27:24will avoid this charge as soon as manufacturers bring forward the next

1:27:24 > 1:27:28generation of cleaner diesels. We only apply this measure to cars.

1:27:28 > 1:27:35Before the headline writers start to limber up, let me be clear. No white

1:27:35 > 1:27:48van man or woman will be hit by these measures. This levy will fund

1:27:48 > 1:27:52a new £220 million cleaner fund to provide support for the

1:27:52 > 1:27:57implementation of local air quality plans, improving the quality of air

1:27:57 > 1:28:04in cities and towns in the UK. Our air quality is sadly not our only

1:28:04 > 1:28:11environmental challenge. Audiences in the country glued to Blue Planet

1:28:11 > 1:28:15have been reminded of the problems of plastics pollution. The UK lead

1:28:15 > 1:28:19the world on climate change agreements and pioneers protecting

1:28:19 > 1:28:24marine environment and I want us to be a world leader in tackling the

1:28:24 > 1:28:28scourge of plastic littering the planet and oceans. With my right

1:28:28 > 1:28:32honourable friend the Environment Secretary I will investigate how the

1:28:32 > 1:28:39tax system and charges on single use plastic items can reduce waste. We

1:28:39 > 1:28:43cannot keep our promise to the next generation to build an economy fit

1:28:43 > 1:28:51for the future unless we ensure our planet has a future. Meeting the

1:28:51 > 1:28:56challenge of change head on means giving our people the confidence to

1:28:56 > 1:29:00embrace it and the skills to reap the rewards and we have a plan to do

1:29:00 > 1:29:06so. We are delivering 3 million apprenticeships by 2020 thanks to

1:29:06 > 1:29:10the apprenticeship levy and I will review the flexibility levy payers

1:29:10 > 1:29:17have to spend this. We are introducing T levels and I am

1:29:17 > 1:29:22providing £20 million to support colleges to prepare for them.

1:29:22 > 1:29:28Knowledge of maths is key to the high-tech, cutting edge jobs in our

1:29:28 > 1:29:31digital economy. It is useful in less glamorous roles like front line

1:29:31 > 1:29:39politics! We will expand the teaching for mastery of maths

1:29:39 > 1:29:45programme to further 3000 schools and provide 40 million to train

1:29:45 > 1:29:50maths teachers and introduce a £600 maths premium for schools for every

1:29:50 > 1:29:59additional people who takes a level maths and invite proposals for new

1:29:59 > 1:30:03maths schools across England so highly talented young mathematicians

1:30:03 > 1:30:06can release their potential wherever they live and what ever their

1:30:06 > 1:30:12background.

1:30:12 > 1:30:16More maths for everyone. Don't let anyone say I don't know how to show

1:30:16 > 1:30:27the nation a good time! Computer science is also at the

1:30:27 > 1:30:33heart of this revolution. So we will ensure every secondary school pupil

1:30:33 > 1:30:38can study computing by tripling the number of trained computer science

1:30:38 > 1:30:44teachers to 12,000. And we will work with industry to create a new

1:30:44 > 1:30:47national centre for computing. But Mr Deputy Speaker, rapid

1:30:47 > 1:30:52technological change means we also need to help people we train during

1:30:52 > 1:30:55their working lives, ensuring our workforce is equipped with the

1:30:55 > 1:31:01skills they need for the workplace of the future. Today, my right

1:31:01 > 1:31:04honourable friend the Education Secretary and I are launching an

1:31:04 > 1:31:09historic partnership between government, the CBI and the TUC to

1:31:09 > 1:31:13set the strategic direction for a national retraining scheme. Its

1:31:13 > 1:31:17first priority will be to boost digital skills and support expansion

1:31:17 > 1:31:22of the construction centre. To make a start immediately, we will invest

1:31:22 > 1:31:26£30 million in the development of digital skills distance learning

1:31:26 > 1:31:29courses, so people can learn wherever they are and whenever they

1:31:29 > 1:31:33want. I'm pleased to be able to accept the representation that I

1:31:33 > 1:31:43have

1:31:45 > 1:31:48received from the TUC, to continue to fund union learn which I

1:31:48 > 1:31:54recognise as a valuable part of our support to workplace learning. Mr

1:31:54 > 1:32:05Deputy Speaker, I got an e-mail from Len asking me especially, backing

1:32:05 > 1:32:09skills is key to unlocking growth nationally, but far too much of our

1:32:09 > 1:32:13economic strength is concentrated in our capital city. If we are truly to

1:32:13 > 1:32:17build an economy that is fit for the future, then we have to get all

1:32:17 > 1:32:22parts of the UK firing on all cylinders, and that is what our

1:32:22 > 1:32:28modern industrial strategy is all about. Today, we back the Northern

1:32:28 > 1:32:31Powerhouse, the Midlands engine and elected mayors across the UK. We

1:32:31 > 1:32:39back them with a new 1.7 £1.7 billion transforming cities fund,

1:32:39 > 1:32:43half of it to be shared with the six areas with Metro mayors, to give

1:32:43 > 1:32:47them power to deal with transport priorities, and the remainder will

1:32:47 > 1:32:54be opened to competition in other cities in England. We are investing

1:32:54 > 1:32:57£300 million to assure HS2 infrastructure will incorporate

1:32:57 > 1:33:04Northern Powerhouse and Midland engine improvements. I am also

1:33:04 > 1:33:09providing money to trial digital solutions on the trans-Pennine

1:33:09 > 1:33:20route. We are developing a punch with Manchester and I'm pleased to

1:33:20 > 1:33:26announce a second devolution deal with Andy Street and we will find

1:33:26 > 1:33:30the replacement of the 40 old rolling stock on the Tyne at where

1:33:30 > 1:33:36Metro and a total investment of 337 million pounds. We will invest £123

1:33:36 > 1:33:49million in the Redcar steel steelwork sites to support the work

1:33:49 > 1:33:57of those leading the fight for prosperity in that area. Mr Deputy

1:33:57 > 1:34:01Speaker, we are piloting 100% business rates retention in London

1:34:01 > 1:34:06next year, and continuing to work with TFL on the funding and

1:34:06 > 1:34:12financing of Crossrail two. We will also make over £1 billion of

1:34:12 > 1:34:16discounted lending available to local authorities across the country

1:34:16 > 1:34:20to support high-value infrastructure projects. A Conservative government

1:34:20 > 1:34:27giving power back to the people of Britain, and driving prosperity and

1:34:27 > 1:34:30greater fairness across our United Kingdom.

1:34:30 > 1:34:35The decisions taken in this Budget also mean £2 billion more for the

1:34:35 > 1:34:44Scottish Government, £1.2 billion more for the Welsh Government, and

1:34:44 > 1:34:49156 mg more for the Northern Ireland Executive. I can confirm today

1:34:49 > 1:34:55progress is being made on the city 's deal for Terry and Stirling. I'm

1:34:55 > 1:35:02getting used to the experience of having my ear bent by 13

1:35:02 > 1:35:09Conservatives Scottish colleagues. Most recently on the issue of

1:35:09 > 1:35:17Scottish police and fire VAT. The SNP knew the rules, they knew the

1:35:17 > 1:35:19consequences of introducing these bodies and they ploughed ahead

1:35:19 > 1:35:30anyway. My Scottish Conservative colleagues have persuaded me that

1:35:30 > 1:35:35the Scottish people should not lose out just because of the obstinacy of

1:35:35 > 1:35:47the SNP government. So we will legislate to allow VAT refunds from

1:35:47 > 1:35:52April 20 18. And in response to yet more representations from my

1:35:52 > 1:35:55honourable Scottish friends, aided and abetted by my honourable friend

1:35:55 > 1:36:00for Waverley, from November 2018, we will introduce agile is there a tax

1:36:00 > 1:36:06history for transfers of gas in the North Sea, an innovative tax policy

1:36:06 > 1:36:10which will bring fresh investment to a base on which still holds up to 20

1:36:10 > 1:36:17billion barrels of oil. We will begin negotiations towards great

1:36:17 > 1:36:22deals the North Wales and mid Wales, and we will abolish tolls on the

1:36:22 > 1:36:27Severn Bridge as promised by the end of next year. We will deliver on our

1:36:27 > 1:36:32commitment to review the effect of VAT and APD on tourism in Northern

1:36:32 > 1:36:37Ireland, reporting on next year's Budget and we will open negotiations

1:36:37 > 1:36:41for a Belfast city deal as part of our commitment to an ambitious set

1:36:41 > 1:36:46of city deals across Northern Ireland. A Conservative government

1:36:46 > 1:36:55delivering for all parts of our United Kingdom. It is only by

1:36:55 > 1:36:59supporting our regions and nations, dealing with our debts and investing

1:36:59 > 1:37:03in skills and infrastructure for the long term, that we can build an

1:37:03 > 1:37:07economy fit for the future. But I recognise that many people are

1:37:07 > 1:37:11feeling pressure on their budgets now. And because we are all in

1:37:11 > 1:37:17politics to make people's lives better, in the short term as well as

1:37:17 > 1:37:21the long-term, we will take further measures in this Budget to help

1:37:21 > 1:37:27families and businesses where we can. The switch to Universal Credit

1:37:27 > 1:37:33is a long overdue and necessary reform. Replacing Labour's broken

1:37:33 > 1:37:38system that discouraged people from working more than 16 hours a week

1:37:38 > 1:37:43and trapped 1.4 million on out of work benefits for nearly a decade,

1:37:43 > 1:37:47Universal Credit delivers a modern welfare system where work always

1:37:47 > 1:37:56pays and people are supported to earn. But I recognise, Mr Deputy

1:37:56 > 1:37:59Speaker, the genuine concerns on both sides of the House at about the

1:37:59 > 1:38:01operational delivery of this benefit, and today we will act on

1:38:01 > 1:38:07those concerns. First, we will remove the seven-day waiting period

1:38:07 > 1:38:11applied at the beginning of a benefit claim, so that entitlement

1:38:11 > 1:38:16to Universal Credit will start on the day of the claim. To provide

1:38:16 > 1:38:20greater support during the waiting period, we will change the advance

1:38:20 > 1:38:24the system to ensure any household needs it can access a full month's

1:38:24 > 1:38:29payment within five days of applying. We will make it possible

1:38:29 > 1:38:35to apply for an advanced online. We will extend the repayment period for

1:38:35 > 1:38:40advances from six months to 12 months, and any new Universal Credit

1:38:40 > 1:38:44claimant in receipt of housing benefit at the time of the claim

1:38:44 > 1:38:49will continue to receive that housing benefit for a further two

1:38:49 > 1:38:55weeks, making it easier for them to pay their rent. This, Mr Deputy

1:38:55 > 1:38:59Speaker, is a £1.5 billion package to address concerns about the

1:38:59 > 1:39:07delivery of the benefit. My right honourable friend the Secretary of

1:39:07 > 1:39:09State for Work and Pensions will give further details in a statement

1:39:09 > 1:39:14to the House tomorrow. We also want to help low income households in

1:39:14 > 1:39:19areas where rents have been rising fastest. In the long run, of course,

1:39:19 > 1:39:24the answer lies in increasing the amount of housing available, a theme

1:39:24 > 1:39:28I shall return to. In the meantime, the best way to help them is by

1:39:28 > 1:39:32increasing the rate of support in those areas where rents are least

1:39:32 > 1:39:38affordable. We will increase targeted affordability funding by

1:39:38 > 1:39:44£125 million over the next two years, benefiting 140,000 people. We

1:39:44 > 1:39:49will always listen to genuine concerns and act where we can to

1:39:49 > 1:39:56help. Making work pay is core to the philosophy of this government. That

1:39:56 > 1:40:01is why we introduced the National Living Wage in 2016. In April, it

1:40:01 > 1:40:12will rise by 4.4%, from £7 50 an hour, to £7 83, handing full-time

1:40:12 > 1:40:16workers a further £600 pay increase, taking their total pay rise since

1:40:16 > 1:40:23its introduction to over £2000 a year. We also accept the low pay

1:40:23 > 1:40:27commission's recommendations on national minimum wage rates,

1:40:27 > 1:40:31supporting our young people with the largest increase in youth rates in

1:40:31 > 1:40:40ten years, delivering a pay rise for over 2 million minimum wage workers

1:40:40 > 1:40:43of all ages across the country. The facts are these. Income inequality

1:40:43 > 1:40:49today is at its lowest level in 30 years. The top 1% are paying a

1:40:49 > 1:40:54larger share of income taxes than at any time under the last Labour

1:40:54 > 1:40:59government. The poorest 10% in Britain have seen their real incomes

1:40:59 > 1:41:04grow faster than 2010 than the richest 10%, and the proportion of

1:41:04 > 1:41:12full-time jobs that are low paid is at its lowest level for 20 years. A

1:41:12 > 1:41:19Conservative government delivering a fairer Britain. But as well as

1:41:19 > 1:41:23making work pay, we want families to keep more of the money they earn.

1:41:23 > 1:41:29When we came into office, the personal allowance stood at £6,475 a

1:41:29 > 1:41:36year. From April, I will increase the personal allowance to £11,850,

1:41:36 > 1:41:44and the higher rate threshold to £46,350, making progress towards our

1:41:44 > 1:41:49manifesto commitments, which I reiterate today. The typical basic

1:41:49 > 1:41:54rate taxpayer will be £1075 a year better off than 2010, and a

1:41:54 > 1:41:59full-time worker on the National Living Wage will take home more than

1:41:59 > 1:42:04£3800 extra. This Conservative government delivering for Britain's

1:42:04 > 1:42:14workers. Mr Deputy Speaker, I turn now to duties. The tobacco duty

1:42:14 > 1:42:21escalator will continue with an extra 1% duty on hand-rolling duty

1:42:21 > 1:42:25this year and minimum excise duty on cigarettes will also rise. Excessive

1:42:25 > 1:42:30alcohol consumption and the most vulnerable people is all too often

1:42:30 > 1:42:34through cheap high-strength low quality products, especially

1:42:34 > 1:42:38so-called white ciders. I want to pay tribute to the campaign led by

1:42:38 > 1:42:43my honourable friend for Congleton on this issue, and so following our

1:42:43 > 1:42:48recent consultation, we will legislate to increase duty on these

1:42:48 > 1:42:51products from 2019. But recognising the pressure on household budgets,

1:42:51 > 1:42:56and backing our great British pubs, duties on other sliders, wines,

1:42:56 > 1:43:07spirits and on beer will be frozen. This will mean a bottle of whiskey

1:43:07 > 1:43:12will be £1.15 less in 2018 than if we had continued with Labour's

1:43:12 > 1:43:18plans, and a pint of beer 12p less. So Merry Christmas, Mr Deputy

1:43:18 > 1:43:25Speaker. The cost of travel is also an important factor for families and

1:43:25 > 1:43:30businesses. From April 2019, I will again freeze short-haul air

1:43:30 > 1:43:34passenger duty rates, and I will also frees long-haul economy rates,

1:43:34 > 1:43:39paid for by an increase on premium class tickets and on private jets.

1:43:39 > 1:43:46Sorry, Lewis. For those who do not stretch to a private jet, I can

1:43:46 > 1:43:52announce a new Railcard for those aged 26 to 30, giving 4.5 million

1:43:52 > 1:43:59more young people a third of their rail fares. And I will once again

1:43:59 > 1:44:04cancel the fuel duty rise for both petrol and diesel that is scheduled

1:44:04 > 1:44:13for April. Since 2010, we will have saved the average car driver £850,

1:44:13 > 1:44:19and the average van driver over £2100, compared to Labour's

1:44:19 > 1:44:24escalator plans. Fuel duty has now been frozen for the longest period

1:44:24 > 1:44:32in 40 years, at a total cost to the Exchequer of £46 billion, is since

1:44:32 > 1:44:372010. Mr Deputy Speaker, our NHS is one of our great institutions. An

1:44:37 > 1:44:43essential part of what we are as a nation. And a source of pride the

1:44:43 > 1:44:47length and breadth of the country. Its values are the values of the

1:44:47 > 1:44:53British people, and we will always back it. Dedicated NHS staff are

1:44:53 > 1:44:58handling the challenges of an ageing population and the rapidly advancing

1:44:58 > 1:45:02technology with skill and commitment and we salute them. Mr Deputy

1:45:02 > 1:45:06Speaker, although you would not think so to listen to the Leader of

1:45:06 > 1:45:13the Opposition, as he regularly talks down the achievements of the

1:45:13 > 1:45:17NHS, the number of patients being treated is at record levels, cancer

1:45:17 > 1:45:22survival rates are at the highest ever level, 17 million people are

1:45:22 > 1:45:26now able to access GP appointments in the evenings and weekends, and

1:45:26 > 1:45:31public satisfaction among hospital inpatients is at its highest level

1:45:31 > 1:45:36in more than 20 years.

1:45:36 > 1:45:41It is central to this government's vision everyone has access to the

1:45:41 > 1:45:48NHS free at the point of need which is why we endorsed and funded the

1:45:48 > 1:45:51five-year forward view in 2014 but even with this additional funding we

1:45:51 > 1:45:55acknowledge the service remains under pressure and today we respond.

1:45:55 > 1:46:01First, we will deliver an additional £10 billion package of capital

1:46:01 > 1:46:06investment in front line services over the course of this Parliament,

1:46:06 > 1:46:12to support the sustainability and transformation plans that will make

1:46:12 > 1:46:17our NHS more resilient, investing for an NHS fit for the future. We

1:46:17 > 1:46:23also recognise that the NHS is under pressure right now. I am therefore

1:46:23 > 1:46:26exceptionally and outside the spending review process making an

1:46:26 > 1:46:32additional commitment of resource funding of £2.8 billion to the NHS

1:46:32 > 1:46:39in England. £350 million immediately to allow trusts to plan for this

1:46:39 > 1:46:47winter. 1.6 billion in 2018-19 but the balance in 19-20, taking the

1:46:47 > 1:46:57extra resource into the NHS next year to £3.75 billion in total.

1:46:57 > 1:47:06Meaning, Mr Deputy Speaker, our NHS will receive a £7.5 billion increase

1:47:06 > 1:47:13to its resource budget over this year and next. Our nation's nurses

1:47:13 > 1:47:19provide invaluable support to us all in our time of greatest need and

1:47:19 > 1:47:23deserve our deepest gratitude for their tireless efforts. My right

1:47:23 > 1:47:27honourable friend the Health Secretary has begun discussions with

1:47:27 > 1:47:34health unions on pay structure modernisation for staff to improve

1:47:34 > 1:47:38recruitment and retention. He will submit evidence to the independent

1:47:38 > 1:47:43pay review body in due course. I want to assure NHS staff and

1:47:43 > 1:47:48patients and members that if the Health Secretary's talks bear fruit,

1:47:48 > 1:47:51I will protect patient services by providing additional funding for

1:47:51 > 1:48:01such a settlement. Just as our public services must be fit for the

1:48:01 > 1:48:06future, so too must our tax system. It must remain competitive to

1:48:06 > 1:48:10attract the brightest and best to establish and grow businesses of the

1:48:10 > 1:48:15future. It must raise revenue we need to fund public services and it

1:48:15 > 1:48:20must be robust against abuse so it is fair to all. We have heard talk

1:48:20 > 1:48:24recently from the party opposite about what they would do to crack

1:48:24 > 1:48:31down on tax avoidance and evasion, but the truth is, they did not. It

1:48:31 > 1:48:35is this government that has clamped down on avoidance and evasion, this

1:48:35 > 1:48:40government has seen the tax gap cut by a quarter to a record low and

1:48:40 > 1:48:47this government that has raked in an extra £160 billion over seven years

1:48:47 > 1:48:51for our public services by collecting taxes due so I will take

1:48:51 > 1:48:59no lectures, but I will take action and this budget continues the work

1:48:59 > 1:49:04of the last seven years with a further package of measures that is

1:49:04 > 1:49:11forecast to raise £4.8 billion by 2022-3, doing the job Labour failed

1:49:11 > 1:49:20to do for 13 years in office. Our long-term phased reduction of

1:49:20 > 1:49:24corporation tax has generated investment and jobs and raised £20

1:49:24 > 1:49:30billion extra for public services. We are committed to maintaining

1:49:30 > 1:49:33competitive corporation tax rates that there is a case for removing

1:49:33 > 1:49:39the anomaly of the index allowance for capital gains bringing the

1:49:39 > 1:49:43corporate tax system into line with personal capital gains tax system. I

1:49:43 > 1:49:47will freeze this allowance so companies receive relief for

1:49:47 > 1:49:53inflation up to January 2018 but not thereafter. I am grateful to the

1:49:53 > 1:49:58office for tax simplification on their report on VAT registration

1:49:58 > 1:50:06threshold. At £85,000 the UK VAT threshold is by far the highest in

1:50:06 > 1:50:13the OECD, by contrast in Germany it is £15,600. I note the conclusion

1:50:13 > 1:50:19that it distorts competition and dis- incentivise is business growth

1:50:19 > 1:50:23and note the Federation of Small Businesses concerns about the cliff

1:50:23 > 1:50:28edge of the threshold but such a high threshold has the benefit of

1:50:28 > 1:50:33keeping the majority of small businesses out of VAT altogether so

1:50:33 > 1:50:42I am not minded to reduce the threshold. I will consult on whether

1:50:42 > 1:50:46it -- its design could better incentivise growth and we will

1:50:46 > 1:50:51maintain it at the current level for the next two years. We cannot build

1:50:51 > 1:50:59an economy fit for the future without supporting its backbone, our

1:50:59 > 1:51:045.5 million small businesses, who are responsible for nearly half our

1:51:04 > 1:51:09private sector jobs. They give the economy its vibrancy and resilience.

1:51:09 > 1:51:15I recognise many are feeling under pressure. I know that it is hard

1:51:15 > 1:51:19work to get a business off the ground and get it to grow, so today

1:51:19 > 1:51:25I want to do what we can to ease that pressure. Business rates

1:51:25 > 1:51:31represent a high fixed cost for small businesses. At budget 2016 we

1:51:31 > 1:51:37introduced a package of business rate relief worth almost £9 billion

1:51:37 > 1:51:43with a further £435 million in the spring budget. Today I go further.

1:51:43 > 1:51:48We have listened to concerns about the potential costs of the annual up

1:51:48 > 1:51:53rating of business rates in April. Today I will accept the

1:51:53 > 1:51:57representation of the British Chambers of Commerce, CBI and others

1:51:57 > 1:52:05and bring forward the planned switch from RPI to CPI by two years to

1:52:05 > 1:52:09April 2018, a move that is worth £2.3 billion to business over the

1:52:09 > 1:52:16next five years. I have listened to businesses affected by the so-called

1:52:16 > 1:52:21staircase tax. We will change the law to ensure where a businesses

1:52:21 > 1:52:25impacted by the ruling, it can have its original bill reinstated if it

1:52:25 > 1:52:31chooses and backdated and I hope I can expect cross-party backing to

1:52:31 > 1:52:37speed that measure through Parliament. Three simple steps to

1:52:37 > 1:52:44solve the staircase tax. What do they expect, it is the tax section?

1:52:44 > 1:52:49To support the thousands of small pubs at the heart of many

1:52:49 > 1:52:53communities, we will extend the £1000 discount with the rateable

1:52:53 > 1:53:03value of less than the amount to March 20 19. I have heard the

1:53:03 > 1:53:06concerns about the five-year reevaluation system and shorter

1:53:06 > 1:53:10periods will reduce the size of changes in valuation that I can

1:53:10 > 1:53:15announce after the next revaluation future revaluation will take place

1:53:15 > 1:53:18every three years. This Conservative government is listening to small

1:53:18 > 1:53:25business. There is a wider concern across this House and in the

1:53:25 > 1:53:29business community about the tax system in the digital age. Along

1:53:29 > 1:53:35with innovation and growth it brings, digitalisation poses

1:53:35 > 1:53:39challenges for the sustainability and fairness of our tax system but

1:53:39 > 1:53:43this challenge can only properly be solved on an international basis and

1:53:43 > 1:53:49the UK is leading the charge in the OECD and G20 to find solutions.

1:53:49 > 1:53:54Today we publish a paper on the tax challenge posed by the digital

1:53:54 > 1:53:58economy, setting out emerging thinking about potential solutions,

1:53:58 > 1:54:05but in the meantime we will take what action we can. Multinational

1:54:05 > 1:54:08digital businesses pay billions in royalties to jurisdictions where

1:54:08 > 1:54:16they are not taxed and some of these royalties relate to UK sales. From

1:54:16 > 1:54:20April 2019 and in accordance with international obligations we will

1:54:20 > 1:54:24apply income tax to royalties relating to UK sales when those

1:54:24 > 1:54:29royalties are paid to a low tax jurisdiction, even if they do not

1:54:29 > 1:54:36fall to be taxed in the UK under current rules. This will raise about

1:54:36 > 1:54:42£200 million a year. It does not solve the problem, but it sends a

1:54:42 > 1:54:46signal of our determination and we will continue to work in the

1:54:46 > 1:54:50international arena to find a sustainable and fair long-term

1:54:50 > 1:54:53solution that properly taxes digital businesses that operate in

1:54:53 > 1:54:59cyberspace. Following representations from a number of

1:54:59 > 1:55:03honourable friends we are taking action to address online VAT fraud

1:55:03 > 1:55:09that costs the taxpayer £1.2 billion per year, by making all online

1:55:09 > 1:55:15marketplaces jointly liable with their sellers for VAT, ensuring

1:55:15 > 1:55:20sellers operating through them pay the right VAT just we expect

1:55:20 > 1:55:26retailers on the high street to do. I want to turn to the challenge of

1:55:26 > 1:55:31the housing market. Before I do, I want to touch on the aftermath of

1:55:31 > 1:55:36the appalling events at Grenfell Tower. We have provided financial

1:55:36 > 1:55:41support for victims of this terrible tragedy and today I announce we will

1:55:41 > 1:55:47provide Kensington and Chelsea Council with a further £28 million

1:55:47 > 1:55:51for mental health and counselling services, the generation support and

1:55:51 > 1:55:57to provide a new community space for residents. This tragedy should never

1:55:57 > 1:56:04have happened and we must ensure nothing like it ever happens again.

1:56:04 > 1:56:09All local authorities and housing associations must carry out any

1:56:09 > 1:56:14identified necessary safety work as soon as possible. If any local

1:56:14 > 1:56:18authority cannot access funding to pay for essential fire safety work,

1:56:18 > 1:56:23they should contact us immediately, and I have said before and will

1:56:23 > 1:56:28again today, we will not allow financial constraints to get in the

1:56:28 > 1:56:35way of essential fire safety work. I want to also address the issue of

1:56:35 > 1:56:41empty properties. It cannot be right to leave property empty when so many

1:56:41 > 1:56:46are desperate for a place to live. We will legislate to give local

1:56:46 > 1:56:51authorities the power to charge a 100% council tax premium on empty

1:56:51 > 1:56:57properties. We will also launch a consultation on barriers to longer

1:56:57 > 1:57:00tenancies in the private rented sector and how we might encourage

1:57:00 > 1:57:05landlords to offer them to tenants who want extra security. I want to

1:57:05 > 1:57:11say something about rough sleeping. It is not acceptable in 21st-century

1:57:11 > 1:57:17Britain people are sleeping on the streets. We will invest today £28

1:57:17 > 1:57:22million in three new housing first pilots in the West Midlands,

1:57:22 > 1:57:27Manchester and in Liverpool, and we will establish a task force as part

1:57:27 > 1:57:31of our commitment to halving rough sleeping by 2022 and eliminating it

1:57:31 > 1:57:39by 2027. I would like to thank the many colleagues who submitted ideas

1:57:39 > 1:57:44on how to tackle the challenge of the housing market, including my

1:57:44 > 1:57:47honourable friends for North East Hampshire, Eastleigh and

1:57:47 > 1:57:53Weston-Super-Mare in particular. By continuing to invest in Britain's

1:57:53 > 1:57:58infrastructure, skills and R&D, we will ensure productivity and

1:57:58 > 1:58:03economic growth that is the key to delivering a stronger, fairer and

1:58:03 > 1:58:08more balanced economy and the assurance to the next generation of

1:58:08 > 1:58:11their economic security, but however successful in that endeavour, there

1:58:11 > 1:58:16is an area where young people will rightly feel concerned about their

1:58:16 > 1:58:21future prospects and that is in the housing market. House prices are

1:58:21 > 1:58:26increasingly out of reach. It takes too long to save for a deposit and

1:58:26 > 1:58:33rents absorbed too high a portion of monthly income. The number of 25-34

1:58:33 > 1:58:39year old is owning their own home has dropped from 59% to 38% in 13

1:58:39 > 1:58:45years. Put simply, successive governments over decades have failed

1:58:45 > 1:58:50to build enough homes to deliver the homeowning dream this country has

1:58:50 > 1:58:56always been proud of, or indeed to meet the needs of those who rent. In

1:58:56 > 1:59:00Manchester a few weeks ago the Prime Minister made a pledge to the

1:59:00 > 1:59:04younger generation that she would dedicate her premiership to fixing

1:59:04 > 1:59:08this problem and today we take the next steps to delivering on that

1:59:08 > 1:59:14pledge. By choosing to build we send a message to the next generation

1:59:14 > 1:59:21that getting on the housing ladder is not just a dream of your parents

1:59:21 > 1:59:25passed, but a reality for your future. We have started with schemes

1:59:25 > 1:59:29like help to buy that has helped 320,000 people buy a home. We have

1:59:29 > 1:59:40increased the supply of homes. By more than 1.1 billion since 2010.

1:59:40 > 1:59:46Including almost 350,000 affordable homes -- by more than 1.1 million.

1:59:46 > 1:59:54The latest figures show that over 217,000 additional homes were added

1:59:54 > 1:59:59to the stock last year, that is a remarkable achievement, but we need

1:59:59 > 2:00:05to do better still if we are to see affordability improved. This is a

2:00:05 > 2:00:11complex challenge and there is no single magic bullet. If we don't

2:00:11 > 2:00:15increase the supply of land for new homes, more money will simply

2:00:15 > 2:00:20inflate prices and make matters worse. If we don't do more to

2:00:20 > 2:00:24support the growth of the SMT house-building sector that was all

2:00:24 > 2:00:31but wiped out by Labour's great recession, we will remain dependent

2:00:31 > 2:00:36on the major national house-builders that dominate the industry. --

2:00:36 > 2:00:44growth of the SME house-building sector. Solving this challenge will

2:00:44 > 2:00:49require money and it will require planning reform and it will require

2:00:49 > 2:00:54intervention. So today we set out an ambitious plan to tackle the housing

2:00:54 > 2:01:00challenge. Over the next five years we will commit a total of at least

2:01:00 > 2:01:05£44 billion of capital funding, loans and guarantees to support our

2:01:05 > 2:01:09housing market, to boost the supply of skills, resources and building

2:01:09 > 2:01:16land and to create the financial incentives to deliver 300,000 net

2:01:16 > 2:01:20additional homes on average by the mid-20 20s, the biggest annual

2:01:20 > 2:01:26increase in housing supply

2:01:26 > 2:01:33New money for the fund to get SME house-building began, a £30 million

2:01:33 > 2:01:39fund, a further £2.7 billion to more than double the housing

2:01:39 > 2:01:44infrastructure fund, £400 million more for a state regeneration, air

2:01:44 > 2:01:48£1.1 billion fund to unlock strategic sites, including new

2:01:48 > 2:01:56settlements and urban regeneration schemes, a listing of H R eight caps

2:01:56 > 2:01:59for councils in high demand areas to get them building again and £8

2:01:59 > 2:02:05billion of new financial guarantees to support house-building and the

2:02:05 > 2:02:08private rented sector. Because we need a workforce to build these new

2:02:08 > 2:02:12homes, we are providing an additional 30 formally in pounds to

2:02:12 > 2:02:17develop construction skills across the country. Mr Deputy Speaker,

2:02:17 > 2:02:20solving the housing challenge takes more than money, it takes planning

2:02:20 > 2:02:25reform. We will focus on the urban areas where people want to live, and

2:02:25 > 2:02:31where most jobs are created, making best use of our urban land and

2:02:31 > 2:02:39continuing the strong protection of our green belt. In particular,

2:02:39 > 2:02:42building high-quality high density homes in city centres and around

2:02:42 > 2:02:48major transport hubs. And to put the needs of our young people first, we

2:02:48 > 2:02:54will insure that councils in high demand areas permit more homes for

2:02:54 > 2:02:59first-time buyers and affordable renters. The Communities Secretary

2:02:59 > 2:03:03will set out more detailed in a statement to the House in due

2:03:03 > 2:03:08course. However, one thing is very clear, there is a significant gap

2:03:08 > 2:03:11between the number of planning permission is granted, and the

2:03:11 > 2:03:20number of homes built. In London alone, there are 270,000 residential

2:03:20 > 2:03:28planning permission is an built. We need to understand why -- not built.

2:03:28 > 2:03:33I'm establishing an urgent review to look at the gap between planning

2:03:33 > 2:03:37permissions and housing starts. It will be chaired by the member for

2:03:37 > 2:03:45West Dorset and will deliver an interim report in time for the

2:03:45 > 2:03:50spring statement next year. And if that report finds that fighter Lee

2:03:50 > 2:03:56needed land is being withheld from the market for commercial rather

2:03:56 > 2:04:00than technical reasons, we will intervene to change the incentives

2:04:00 > 2:04:05to ensure such land is brought forward for development, using

2:04:05 > 2:04:09direct intervention, compulsory purchase powers as necessary. My

2:04:09 > 2:04:14right honourable friend the Prime Minister has said we will fix this

2:04:14 > 2:04:21problem, and no one should doubt the Government's determination to do so.

2:04:21 > 2:04:27But the solution will not deliver itself. Local authorities will need

2:04:27 > 2:04:34help and support. Developers will need encouragement and persuasion.

2:04:34 > 2:04:38Infrastructure to facilitate higher density development must be funded

2:04:38 > 2:04:43undelivered. So the Homes and Communities Agency will expand to

2:04:43 > 2:04:48become homes England bringing together money, expertise and

2:04:48 > 2:04:52planning and compulsory purchase powers with a clear remit to

2:04:52 > 2:04:57facilitate delivery of sufficient new homes where they are most

2:04:57 > 2:04:59needed, to deliver a sustained improvement in housing

2:04:59 > 2:05:06affordability. The battle to achieve and sustain affordability will be a

2:05:06 > 2:05:11long-term one, so we also need to look beyond this Parliament, to

2:05:11 > 2:05:15long-term measures. We will use new town development corporations to

2:05:15 > 2:05:20kick-start five new locally agreed garden towns in areas of demand

2:05:20 > 2:05:25pressure, delivered through public-private partnerships,

2:05:25 > 2:05:26designed to attract long-term capital investment from around the

2:05:26 > 2:05:33world. Last week, the National in the structure commission published

2:05:33 > 2:05:37their report on the Cambridge Milton Keynes Oxford corridor. Today, we

2:05:37 > 2:05:43back their vision and commit to building up to 1 million homes by

2:05:43 > 2:05:472050, completing the road and rail infrastructure to support them. As a

2:05:47 > 2:05:52down payment on this plan, we have agreed an ambitious housing deal

2:05:52 > 2:05:59with Oxfordshire, to deliver 100,000 homes by 2031. Capitalising on the

2:05:59 > 2:06:04global reputations of our two most famous universities and Britain's

2:06:04 > 2:06:08biggest new town, to create a dynamic new growth corridor for the

2:06:08 > 2:06:1421st century. Mr Deputy Speaker, this is our plan to deliver on the

2:06:14 > 2:06:20pledge we have made to the next generation. That the dream of home

2:06:20 > 2:06:25ownership will become a reality in this country once again. But I also

2:06:25 > 2:06:30want to take action today to help young people who are saving to own a

2:06:30 > 2:06:35home. One of the biggest challenges facing young first-time buyers is

2:06:35 > 2:06:40the cash required upfront. We have put £10 billion more money into Help

2:06:40 > 2:06:46to Buy equity loan to help those saving for a deposit, but I want to

2:06:46 > 2:06:49do more still. I have received representations for a temporary

2:06:49 > 2:06:54stamp duty holiday to first-time buyers, but this would only help

2:06:54 > 2:06:59those who are ready to purchase now, and would offer nothing for the many

2:06:59 > 2:07:05who will need to save for years. So with effect from today, for all

2:07:05 > 2:07:10first-time buyer purchases up to £300,000, I am abolishing stamp duty

2:07:10 > 2:07:19altogether.

2:07:35 > 2:07:40If you want more, you are going to have to let the Chancellor finish!

2:07:40 > 2:07:46Chancellor of the Exchequer.And Mr Deputy Speaker, to ensure this

2:07:46 > 2:07:52release also helps first-time buyers in very high-priced areas like

2:07:52 > 2:07:56London, it will also be available on the first £300,000 on the purchase

2:07:56 > 2:08:04price of properties up to £500,000. Meaning an effective reduction of

2:08:04 > 2:08:11£5,000. Mr Deputy Speaker, that is a stamp duty cut for 95% of all

2:08:11 > 2:08:17first-time buyers who pay stamp duty, and no stamp duty at all of

2:08:17 > 2:08:2180% of first-time buyers from today. When we say we will revive the

2:08:21 > 2:08:26homeowning dream in Britain, we mean it. We do not underestimate the

2:08:26 > 2:08:31scale of the challenge, but today we have made a substantial down

2:08:31 > 2:08:38payment. Mr Deputy Speaker, one of the things that I love most about

2:08:38 > 2:08:43this country is its sense of opportunity. I have always felt it

2:08:43 > 2:08:48and I want young people growing up today to have that same sense of

2:08:48 > 2:08:53boundless opportunity. In this Budget, I have set out a vision for

2:08:53 > 2:08:58Britain's future, and a plan for delivering it. But by getting our

2:08:58 > 2:09:01debt down, by supporting British families and businesses, by

2:09:01 > 2:09:06investing in the technologies and the skills of the future, by

2:09:06 > 2:09:09creating the homes and infrastructure our country needs, we

2:09:09 > 2:09:15are at a turning point in our history, and we resolve to look

2:09:15 > 2:09:19forwards, not backwards. To build on the strengths of the British

2:09:19 > 2:09:24economy, to embrace change, not hide from it. To seize the opportunities

2:09:24 > 2:09:29ahead of us, and together, to build a Britain fit for the future. I

2:09:29 > 2:09:37commend this statement to the House. STUDIO: And the Chancellor was on

2:09:37 > 2:09:42his feet for just a little bit more than an hour there. He sits down. We

2:09:42 > 2:09:46will be back to the House to hear the response from Jeremy Corbyn, the

2:09:46 > 2:09:51Leader of the Opposition. Before we do, we have time to go through some

2:09:51 > 2:09:55of the main measures. A lot of this taking place in the context of the

2:09:55 > 2:09:58downgraded growth by the Office for Budget Responsibility for this year,

2:09:58 > 2:10:04next year and the year after that. There were a few rabbits he pulled

2:10:04 > 2:10:09out. Stamp duty now abolished for first-time buyers on properties up

2:10:09 > 2:10:15to £300,000. That will happen right away. 300,000 new homes a year. Now

2:10:15 > 2:10:20he is saying that is the target by the mid-20 20s. They are committed

2:10:20 > 2:10:29to building 200,000 new homes so I don't think it will take that long

2:10:29 > 2:10:33to get to 300,000. Fuel duty is frozen for another year. That seems

2:10:33 > 2:10:38to be a measure that is baked into every Budget we have a cover but

2:10:38 > 2:10:42there will be additional funding to provide for the next pay deal for

2:10:42 > 2:10:46NHS staff. In other words, the funding for any pay deal does not

2:10:46 > 2:10:50come out of existing budgets, there will be more money to be found.

2:10:50 > 2:10:55Let's just look at the economic forecast on which all of this

2:10:55 > 2:11:02spending is based. The OBR, the independent forecasting body the

2:11:02 > 2:11:04Chancellor relies on has downgraded economic growth for the next five

2:11:04 > 2:11:11years. Indeed, it is by about 2.5% in total that the economy will be

2:11:11 > 2:11:15smaller than what it thought in the March Budget over the next five-year

2:11:15 > 2:11:22period. Even so, borrowing does continue to fall over the five

2:11:22 > 2:11:26years, but at a slower rate than the Chancellor envisaged even in March.

2:11:26 > 2:11:31This means there is a fiscal loosening in this Budget. That is at

2:11:31 > 2:11:35the core of it. We will give you more forecasts in a minute but let's

2:11:35 > 2:11:40go back to the Chamber and hear Mr Corbyn.

2:11:40 > 2:11:45Test of the Budget is how it affects the reality of people's lives all

2:11:45 > 2:11:53around this country. I would submit that the reality...If somebody

2:11:53 > 2:11:59wants to go for an early cup of tea, please do so. I am told there are

2:11:59 > 2:12:04men despise waiting. But what I will have is the Leader of the Opposition

2:12:04 > 2:12:09listened to and quietly from this side in the same way I expected the

2:12:09 > 2:12:15other side of the House. Jeremy Corbyn.Thank you, Mr Deputy

2:12:15 > 2:12:20Speaker. The reality test of this Budget has to be how it affects

2:12:20 > 2:12:25ordinary people's lives, and I believe as the days go ahead and

2:12:25 > 2:12:30this Budget unravels, the reality will be a lot of people will be no

2:12:30 > 2:12:37better off and the misery many R.N. Will be continuing. Paid, Mr Speaker

2:12:37 > 2:12:45is now lower than it was in 2010 and wages are now falling again.

2:12:45 > 2:12:53Economic growth in the first three quarters of this year is the lowest

2:12:53 > 2:12:59since 2009, and the slowest of the major economies in the G7. It is a

2:12:59 > 2:13:06record of failure with the forecast of more to come. Economic growth has

2:13:06 > 2:13:12been revised down, productivity growth has been revised down,

2:13:12 > 2:13:15business investment revised down, people's wages and living standards

2:13:15 > 2:13:21revised down. What sort of strong economy is that? What sort of fit

2:13:21 > 2:13:29for the future is that? You may recall, Mr Deputy Speaker, the

2:13:29 > 2:13:41deficit was due to be eradicated by 2015. Then that moved to 2016. Then

2:13:41 > 2:13:51to 2017. Then 2020 and now we are looking at 2025. They are missing

2:13:51 > 2:13:58their major targets, but the failed and damaging policy of austerity

2:13:58 > 2:14:06remains. The number of people sleeping rough has doubled since

2:14:06 > 2:14:142010, and this Christmas, this Christmas 120,000 children will

2:14:14 > 2:14:20spend Christmas in temporary accommodation. Three new pilot

2:14:20 > 2:14:24schemes to look at rough sleeping across the whole country simply

2:14:24 > 2:14:30doesn't cut it. We want action now to help those poor people that

2:14:30 > 2:14:36forced to sleep on our streets and beg...Order. I think the whip know

2:14:36 > 2:14:47better. We do not need any more from you or leave the Chamber.The point

2:14:47 > 2:14:52I am making is three new pilot schemes for rough sleepers simply

2:14:52 > 2:14:56doesn't cut it. It is a disaster for those people sleeping on our

2:14:56 > 2:15:00streets, forced to beg for money for a night shelter. They are looking

2:15:00 > 2:15:04for action now from government to give them a roof over their heads.

2:15:04 > 2:15:10In some parts of the country, life expectancy is actually beginning to

2:15:10 > 2:15:14fall. The last Labour government lifted 1 million children out of

2:15:14 > 2:15:21poverty. It was an amazing achievement. Under this government,

2:15:21 > 2:15:24an extra 1 million children will be plunged into poverty by the end of

2:15:24 > 2:15:30this Parliament.

2:15:30 > 2:15:341.9 million pensioners, one in six of all pensioners living in poverty,

2:15:34 > 2:15:40the worst rate anywhere in Western Europe. It is falling pay, slow

2:15:40 > 2:15:46growth, rising poverty and this is what the Chancellor has the cheek to

2:15:46 > 2:15:53call a strong economy. His predecessor said they would put the

2:15:53 > 2:16:00burden on those with the broader shoulders. How has that turned out?

2:16:00 > 2:16:11The poorest tenth of households will lose 10% of their income by 2022

2:16:11 > 2:16:20while the richest will lose just 1%. So much for tackling burning

2:16:20 > 2:16:25injustices, this is a government tossing fuel on the fire. Personal

2:16:25 > 2:16:34debt levels are rising. 8.3 million people over indebted. If he wants to

2:16:34 > 2:16:40help people out of debt, he should back Labour's policy for a real

2:16:40 > 2:16:52living wage of £10 per hour by 2020. Working-class young people now

2:16:52 > 2:16:59leaving university with £57,000 of debt because this government, his

2:16:59 > 2:17:01government, troubled tuition fees and the new government policy is to

2:17:01 > 2:17:15win over young people by keeping fees at the same rate per year --

2:17:15 > 2:17:22trebled tuition fees. That is just one of the multitudes of injustices

2:17:22 > 2:17:27presided over by this government and another is Universal Credit which we

2:17:27 > 2:17:31called on ministers to pause and fix. That is the view of this House

2:17:31 > 2:17:39and the verdict of those on the front line.To shout out, keep

2:17:39 > 2:17:44going, he will, but you will be going out of the chamber.Jeremy

2:17:44 > 2:17:49Corbyn. I would rather people staged to listen, actually, Mr Deputy

2:17:49 > 2:18:05Speaker. To the reality.Silence! It will be in silence.Thank you, Mr

2:18:05 > 2:18:11Speaker. Maybe those opposite would like to listen to Martin's

2:18:11 > 2:18:20experience. A full-time worker on a minimum wage, he said, I get paid

2:18:20 > 2:18:26four weekly meeting my pay date is different each month and because

2:18:26 > 2:18:29under the Universal Credit system he was paid twice in a month and deemed

2:18:29 > 2:18:35to have earned too much Universal Credit was cut off and lead to rent

2:18:35 > 2:18:39arrears and he had to use a food bank for the first time in his life.

2:18:39 > 2:18:44That is the humiliation he and many others have gone through because of

2:18:44 > 2:18:48the problems of Universal Credit. Would it not be better to pause the

2:18:48 > 2:18:56whole thing and look at the problems it has caused? The Chancellor's

2:18:56 > 2:19:01solution to a failing system causing more debt is to offer a loan and the

2:19:01 > 2:19:07six-week wait with 20% waiting longer simply becomes a five-week

2:19:07 > 2:19:15wait. This system has been run down by £3 billion of cuts to work

2:19:15 > 2:19:23allowances, the two child limit and the perverse and appalling clause

2:19:23 > 2:19:27that caused evictions because housing benefit is not paid direct

2:19:27 > 2:19:31to the landlord. I say put this system on hold so it can be fixed

2:19:31 > 2:19:37and keep 1 million of our children out of poverty. For years, we have

2:19:37 > 2:19:43had the rhetoric of a long-term economic plan that never meets its

2:19:43 > 2:19:50targets. When all too many are experiencing long-term economic

2:19:50 > 2:19:56pain. And the hardest hit are disabled people, single parents and

2:19:56 > 2:20:02women. It is disappointing the Chancellor did not back the campaign

2:20:02 > 2:20:09by my honourable friend to end period poverty. He could have done

2:20:09 > 2:20:15that. Well done to her on the campaign, shame on him for not

2:20:15 > 2:20:19supporting it. The Conservative manifesto in the last election

2:20:19 > 2:20:24disappeared off its website after three days, and now some ministers

2:20:24 > 2:20:28opposite have put forward some half decent proposals, conspicuously

2:20:28 > 2:20:36borrowed from the Labour manifesto. Let me tell the Chancellor, as

2:20:36 > 2:20:41socialists we are happy to share ideas. The Communities Secretary is

2:20:41 > 2:20:46called the borrowing to invest in house-building presumably the Prime

2:20:46 > 2:20:50Minister slapped him down for wanting to bankrupt Britain. Where

2:20:50 > 2:20:55is the money to fund the pay rise if he says the pay cap is over? The

2:20:55 > 2:21:03Chancellor has not been clear for NHS workers, police, firefighters,

2:21:03 > 2:21:08teachers and assistants, bin collectors, Armed Forces personnel.

2:21:08 > 2:21:12Will the Chancellor listen to Claire, who says her mum works for

2:21:12 > 2:21:21the NHS and she goes above and beyond for her patients. Why does

2:21:21 > 2:21:23the government think it OK to underpay, over stress and under

2:21:23 > 2:21:30appreciate all those who work in the NHS? The NHS chief executive says

2:21:30 > 2:21:35the budget for the NHS next year is short of what is currently needed.

2:21:35 > 2:21:40From what the Chancellor has said, it is still going to be well short

2:21:40 > 2:21:49of what is needed. He said in 2015 they would fund another 5000 GPs. In

2:21:49 > 2:21:58the last year, 1200, we have had 1200 fewer GPs and we have lost

2:21:58 > 2:22:02community and mental health nurses. The Chancellor promised

2:22:02 > 2:22:0810,000,000,020 15 and delivered 4.5. If you don't mind, we will wait for

2:22:08 > 2:22:14the small print on the announcement but even what he said falls well

2:22:14 > 2:22:17short of the 6 billion Labour would have delivered from our June

2:22:17 > 2:22:23manifesto. Over 1 million of our elderly are not receiving the care

2:22:23 > 2:22:34they need. Over... Over 6 billion will have been cut from social care

2:22:34 > 2:22:39budgets by next March. I hope he begins to understand what it is like

2:22:39 > 2:22:44to wait for social care, stuck in a hospital bed, with other people

2:22:44 > 2:22:54having to give up work to care for them. The uncaring, uncouth attitude

2:22:54 > 2:23:07of certain members...Order. Carry on.

2:23:08 > 2:23:17Mr Speaker, that is why social care budgets are so important for so many

2:23:17 > 2:23:26desperate people in our country. Our schools will be 5% worse off by

2:23:26 > 2:23:292019, despite the Conservative manifesto promising no school would

2:23:29 > 2:23:40be worse off. 5000 headteachers from 25 counties wrote to the Chancellor

2:23:40 > 2:23:43saying, we are simply asking for the money that has been taken out of the

2:23:43 > 2:23:49system to be returned. A senior science technician wrote to me,

2:23:49 > 2:23:56Robert, saying, my pay has been reduced by over 30%. I have seen

2:23:56 > 2:24:01massive cuts at my school, good teachers and support staff leave.

2:24:01 > 2:24:08That is what does for the morale of both teachers and students.

2:24:08 > 2:24:13According to this government, 5000 headteachers are wrong, Robert is

2:24:13 > 2:24:20wrong, the IFS is wrong, everybody is wrong, except the Chancellor. And

2:24:20 > 2:24:25if the Chancellor bothered to listen to what local government is saying,

2:24:25 > 2:24:30they have been warning services for the most vulnerable children are

2:24:30 > 2:24:34under more demand than ever. More children being taken into care, more