The Budget 2017 Budget

It's 11:30, Wednesday

November the 22nd.

In 60 minutes, Chancellor Phillip

Hammond will deliver the first

Autumn Budget for over 20 years.

As we head towards life

outside the European Union,

can Spreadsheet Phil move

beyond the numbers and tell us

about the shape of things to come?

Good morning, live from Westminster.

Welcome to our special coverage

of this Autumn Budget of 2017.

The last Chancellor to deliver

a Budget as the leaves turned brown

was Kenneth Clarke back in 1996.

The following year, Labour's

new Chancellor, a young chap

called Gordon Brown,

delivered a summer Budget

following his party's

landslide election victory.

After that, Budgets took place

in the early spring and have

remained there ever since.

Until today.

Well, just a few minutes ago,

the Chancellor emerged from Number

11 Downing Street with the special

red box containing

the Budget speech.

The red box goes all the way back to

Gladstone when he was Chancellor.

The Chancellor was accompanied

by his Treasury team,

including Elizabeth Truss,

the Chief Secretary,

and his deputy in the department.

We'll be speaking to her once

the Budget has been revealed.

The Chancellor will have to sit

through PMQs at noon.

He'll be on his feet by 12:30,

assuming the Speaker sticks to time.

Stay with us as we bring

you the Budget in full,

expert analysis and reaction

from across the political spectrum.

I'm outside Parliament,

gauging reaction from leading

political figures and assessing how

Westminster will respond

to today's Budget.

I'm in Peterborough, at a leading

manufacturer of lorry trailers.

The Government has big plans

to promote growth in this area

so what will businesses in this

region

make of today's announcements?

And the Budget will have a big

impact on your personal finances.

I'll be taking your questions on how

it affects you and your family.

Keeping me company,

and keeping me right,

throughout today's four-hour

special, a trio of BBC expertise

at its finest.

Political editor Laura Kuenssberg,

economics editor Kamal Ahmed,

and business editor Simon Jack.

As well as their on-air comments,

they'll be providing plenty

of thoughts on social media

as the speech unfolds.

If you want to join the Twitter

conversation,

use the hashtag #Budget2017.

You can also email us

at [email protected].

We'll try and put some

of your tweets and emails

to our experts during the programme.

Well, the Treasury has given

this Budget a name -

it's called Building

a Britain Fit for the Future.

It just trips off the tongue!

Think of it as Philip

Hammond's version of

the long-term economic plan.

Remember that?

The Cabinet have been meeting

in Downing Street this morning

where the Chancellor

presented his Budget.

Of course, they can only

rubber-stamp it now. It is too late

to change anything. He told Cabinet

colleagues he would set out a vision

for post-Brexit Britain. That would

allow the country to grasp the

opportunities that leaving the EU

provides. A vision from Philip

Hammond. Stay tuned for that. Laura,

all budgets are political but this

one has a high political bar to

climb. It from what I see it is

meant to stabilise a shaky

government, stabilise a shaky Prime

Minister, but keep the Chancellor in

his job.

And as much as it has a

high bar of what it needs to

achieve, it has a pretty low bar in

terms of the scale of measures we

actually expect. I think the biggest

thing for Philip Hammond to do today

is not dropped the ball, not mess

up. Yes, the government is pretty

shaky, bit wobbly, fragile

certainly, probably the best word of

use -- the best word to use about

the state of affairs. There are

people in the Tory party, sitting on

the benches behind him, some of them

want to see him gone. And thirdly,

he has to try and show that he has

been able to go some way of

addressing the concerns among many

members of the public that meant the

Tories lost their majority. So a

very difficult cocktail of goals for

him to try and score today, but I

think today the main objective is

don't mess up. The last time he was

at the dispatch box he made a very

big mistake and then did a dramatic

screeching U-turn a week later.

So

the Tory backbenches are nervous

about this Budget and worried if he

is up to it?

They certainly are. One

Cabinet minister said to me last

week, things are very difficult. If

it is a difficult Budget things

could get very difficult. Talk about

understatement. The government has

gone from crisis to crisis in the

last few weeks, whether that was

over Cabinet resignations or whether

it was the ongoing drama and the

pretty public scrapping of what is

going on in the Brexit negotiations.

They have had to weather a series of

cyclones, if you like, and there is

a question of whether they are

holding on and a Budget to go wrong

could be extremely serious for them.

That said, as we have discussed on

many occasions, the fundamentals of

the Tory party have not really

changed. There is no one person who

wants to stick their hand up and

they move out, Theresa, my turn. I

think we should not overrate the

idea that somehow Philip Hammond is

auditioning today to keep his job. I

am not sure we are in that

territory.

We will see. Kamal,

budgets these days are all about

borrowing and financing the

deficits, this government has

borrowed a tonne more money, it is

going to borrow more, but there are

constraints?

Absolutely, Andrew.

Let's look at some of the economic

challenges. Let's start with the

all-important borrowing figures.

That is the money the government

used to cover the difference between

what it spends and what it raises in

taxes. Let's go back to March and

the Office for Budget

Responsibility, the official

government watchdog, and it forecast

for the last financial year,

borrowing would hit that big number,

£51.7 billion, then it would go

down. Go up a little bit this

financial year and then gently go

down to the end of 2022 down to

£16.8 billion. It looks like the

Chancellor wants to stick to that

target of balancing the books,

wiping out the deficit by the middle

of the next decade. But some good

news here for the Chancellor. Not a

lot of it about! The borrowing

figures are slightly more positive

than was expected. For the last

financial year, borrowing is

expected to come in at £45.7

billion. Under what they thought. If

that is reflected what is called the

forecast period up to 2022, that

means he could have a little more

wriggle room on what he can spend.

Said that undershoot could have an

impact in the current financial year

and the next one as well, but there

is another issue as well? We have

heard a lot about productivity. We

know our productivity growth in

recent years has been poor, it is a

dominant in the Western world, not

just Britain, but it has been

particularly bad here. But there has

now been talk in the run-up that

because of poor productivity growth,

that will impact on the deficit

reduction plans. How does that work?

All of the better news on borrowing,

all of that frankly over the longer

term could be blown out of the water

by this productivity problem.

Productivity is basically the way

the economy produces wealth. As you

say, it has been growing very slowly

since the financial crisis. That

matters because that hits economic

growth and that means that the

government simply does not receive

the tax revenues that it might have

expected, had the economy been

growing more rapidly. Now, the OBR

has suggested that it is minded to

substantially downgrade the

productivity forecast for the

future. If it does that, that could

add as much as 53 billion pounds to

the borrowing requirements of this

government.

That would completely

screw up the deficit reduction

plans.

Exactly. The Institute for

Fiscal Studies said last month if

the prospects for productivity of

very poor, that means by 2022, the

borrowing requirement would go up to

that big black bar on the far right

of that chart, £69.9 billion. That

is very gloomy.

It is pretty

extreme?

Yes, but what is important,

Andrew, it shows a small tweak on

that productivity number has a big

effect on the public finances.

The

problem is, the OBR will say because

of productivity growth not being

that good, it will have the

following bad impact on the deficit.

But we're not quite clear, it is a

bit of a stretch to know what it is?

That is true. It has an effect on

people's incomes as well. There has

been some better news in the last

three months. Productivity is up 1%

after two quarters of decline, so

maybe there is a bit of sunshine.

We

will see. It is a tricky one for the

Chancellor 's. For all chancellors,

all sorts of problems can be washed

away if the government grows

robustly because you get more tax

revenue. Our economy is growing but

not robust Lee, it would be fair to

say?

If we go back to what the OBR

forecast last March, they said

growth would be a pretty respectable

2%. That would help the public

finances. This year, that forecast

is likely to be downgraded. The Bank

of England suggested in its

inflation report, that figure 16%

for growth, we must expect that the

OBR will follow that lead from the

Bank of England, will degrade

growth, and alongside the

downgrading productivity, that means

that these are two substantial

headwinds that the government wants

to hit this balancing the books

target by the middle of the next

decade.

And the forecast on 2018 and

2019 growth were a bit gloomy

already, they were around the 1.6

mark so it does not look like a

booming growth is his get out of

jail card?

No, and it will be

adjusting to see what the OBR will

say about subsequent growth and also

what it will say about the possible

impact of Brexit.

Of course, they

are forecasts, and although they

don't like me mentioning it, the OBR

has been known to be wrong in the

past but we will see what happens

with the new ones. Simon, unusually

for a Tory government, a lot of

people in the business community

think this is an anti-business

government. They don't like a lot of

the rhetoric, they don't think the

government is doing much for

business. So what are their

expectations for today?

Businesses

don't like budgets. They think every

bit of tinkering by the Chancellor

means they have to go back and

change this. It is a lot of

administrative burden for them. They

have every reason to be suspicious

of the government. There was the

perceived attack on the

self-employed when they tried to

increase National Insurance. They

are dealing with auto enrolment for

pensions, they got a big revaluation

in parts of the country their

business rates so they are feeling a

bit dustup. And yet, the Chancellor

needs business to invest if he's

going to unlock the productivity

problem for the future. Businesses

are saying there is too much month

left at the end of the money.

I like

that!

It is very hard for us to

invest so help us to help you. They

are hoping there will be little

change. There are a couple of

measures which might come in today,

for example, business rates

evaluation going from RPI inflation

measure to a lower one. And then

bring it forward more quickly.

Things like that could help them but

basically they are saying, don't do

too much. The Chancellor will say in

2010 the corporation tax was 22% and

it is now 19% and headed down to 17.

They will say we are helping you

out.

We have just been clearing our

throats here. There will be plenty

more from Laura, Kamal and Simon

throughout this for our special. In

a moment, we will join Jo Coburn in

Peterborough but first to Jane Hill

on College Green.

Philip Hammond's last budget back in

March. Here we are again and it is

November and no longer the Autumn

Statement. Another budget. How much

has changed since then. We have had

the election, the government had a

reduced majority and Britain is on

its path to get out of the EU. Let's

have a reminder of how much has

changed.

The main rate for the self employed

will increase to 10%. I have decided

not to proceed with the class four

measures set out in the budget.

The

Article 50 process is under way and

in accordance with the wishes of the

British people the United Kingdom is

leaving the European Union. I have

just chaired a meeting of the

cabinet where we agreed the

government should call a general

election.

Labour will take our

railways back into public ownership

and put passengers first.

What is

Britain's deficit? Did somebody

passing a piece of paper? What is

our deficit.

Not at all. The first

ever proper plan to pay for and

provide social care. Nothing has

changed. We are offering a long-term

solution for the sustainability of

social care for the future.

What we

are saying is the Conservatives are

the largest party. Note they do not

have an overall majority at this

stage.

I hope you notice that, the

Chancellor giving something away

free.

LAUGHTER.

Just a reminder of what people at

Westminster and the country has been

living through the last few months.

We can discuss what Philip Hammond's

task is today. Debbie Abrahams is

with me for Labour and Theresa

Villiers for the Conservatives. As

Philip Hammond left number 11

journalist called out, is this a

make or break budget?

It is, isn't

it? It is an important budget, all

of them are, and Phillip faces a

difficult task, team needs to keep

is on the path to deal with debt but

also find investment for

people'spriorities.

Is there scope

for that with the backdrop of

Brexit?

He has limited headroom in

terms of money available,

Parliamentary majorities, but he has

headroom because of decisions he has

taken as Chancellor, including

adjustments to fiscal rules to

reflect where we are and the

emphasis, we have seen in terms of

investing in research, technology,

computer science, this is about

making it a competitive economy and

seizing opportunities not just as a

result of leaving the EU but in

terms of technology.

We will come

back to some of this. What is

Labour's role today? Your party is

behind in the opinion polls on trust

in the economy.

We should say it is

clear austerity over the last seven

years has failed dismally and it is

not just me saying that in the

Labour Party, it is the

International Monetary Fund, it is

economists, and others who have said

absolute failure. People will know

this. Let me finish, Jane.

They want

to know what you can pay for what

you want to do.

This is how we set

out in the general election how we

would pay for spending commitments,

fully costed. People know that they

are... Their living standards have

gone down and their wages are no

more than they were in 2008. What

changes should Philip Hammond may?

We have five priorities, first

around Social Security and Universal

Credit, pause and fix it. We know

this will push a million more

children into poverty as a result of

cuts. A house-building programme. We

just have to go to Westminster to

see people sleeping rough and it has

doubled in the last seven years.

120,000 children in temporary

accommodation. We need to make sure

the public sector workers get a fair

deal to stop the public sector pay

cap which we would not would

stimulate the economy.

Austerity

does not work. How do you respond to

that, Theresa Villiers? Do you see

an increase in rough slippers?

The

government is determined to tackle

this and we want an end to rough

sleeping and we have commitments in

the manifesto.

You have had seven

years and it has got worse.

The

trouble with Labour's plans is they

would involve a big increase in

taxation for ordinary working

families. Rubbish. They would

involve more borrowing. Leaving

future generations to pay for our

debt. We need a balanced approach

that recognises we still have not

cleared the deficit, but we need to

deal with debts at a pace that is

consistent and we doing everything

to support the economy and to fund

public services as generously as we

can.

On a political point, how vital

is this performance for Philip

Hammond? You are not going to be

best friends, you are on different

sides in the Brexit debate. Is it

make and break for his future?

I

would not say I am on a different

side to the Chancellor. I worked

with him in transport and I think he

is talented. There is pressure on

him today and there always is on the

Chancellor on budget day and I wish

him well.

They have not cleared the

deficit they promised in 2015.

Economic failure from this

government. The NHS is in crisis.

30,000 additional deaths according

to the British Medical Journal.

We

will discuss it after Philip Hammond

has stood up at lunchtime. More

passionate debate come from here.

Thanks, Jane.

Good to see the arguments breaking

out already. That bodes well for our

discussions. Budgets watched closely

by businesses and Joe Cockburn is at

a in Peterborough.

I am in Peterborough, a city the

Conservatives lost to Labour in the

election and I am at one of the

leading manufacturers of lorry

trailers. It is a company that has

expanded over the past years

significantly. They employ around

250 people and their biggest

concern, something they would like

to see the Chancellor address is

productivity. It has been a buzzword

over the past weeks. Who better to

talk to the company than the

managing director, welcome. And also

to a local recruitment consultant. I

talked about productivity, why is it

important?

We have invested heavily

in the last three years in

infrastructure, building some people

and we need it to continue. The

public have voted, Brexit is on us,

and we need breaks to carry out

investment.

What measures are you

talking about? If you have money to

spend why not invest?

We need

capital investment relief on

taxation and we have a great

workforce here, looking to grow with

us as a company grows in

Peterborough. We need signs to get

on with the situation we are in.

One

of the greatest barometers of

economic performance is recruitment

and job levels. What has it been

like the last six months?

We found

after the result of Brexit people

held their breath for briefly. We

had a couple of jobs that went on

hold but since then things have

picked up enormously and I think

people are moving on regardless. We

cannot hold still that long. We have

18 months to go. We are dealing with

entry-level and managerial positions

that are office-based and we find

business is good.

One big issue

people want a addressed is cost of

living. The government talked about

high employment levels but are those

jobs paying enough to deal with

rising inflation?

I think in this

area very much as across the country

the average pay with you comes at

2%. The cost of inflation is 3% so

there is a gap causing a problem. I

think a number of companies are

having to do interim pay reviews for

specific people to retain those

skills. We have an issue across the

country and in Peterborough with

digital and IT people because there

are not enough to go around. They

are not coming through.

That is a

problem. What would you like to see

the Chancellor do?

I would like to

see him make it easier for small

businesses. Peterborough has an

higher than average number and we

need those to boost the economy.

We

can catch up on some of the personal

finance issues with our expert.

Among the trucks and lorries there

is so much to watch out for and we

hope you will help us with your

questions and comments. Stamp duty,

will there be a holiday for

first-time buyers? Diesel, a tax on

diesel drivers, will it go up?

Income tax, will there be a trimming

of tax breaks for pensioners and

VAT, will small businesses have to

start charging it? And tax on

alcohol and cigarettes has gone up

already this year, will it happen

again? You should send your comments

to have your say. Back to you.

We can now talk to James Palmer, the

Metro Mayor in this region. If there

was one thing you would like the

Chancellor to do what would it be?

We need to improve infrastructure.

Investment by government to

infrastructure is investing in the

next generation and creates the

opportunity for housing growth, none

more so in Cambridgeshire and

Peterborough. We have businesses

like this that want to grow and we

need to improve infrastructure to

make sure they can deliver and bring

housing forward to feed employment

growth in this county.

How much

confidence do you have the

Chancellor will be radical enough?

He is under pressure to do something

dramatic, will he be able to deliver

within the tight constraints?

The

Chancellor by the nature of position

is under pressure from everybody. I

believe he can forge the right path

and going the right direction. He

can make the right decisions. It his

chance to be on -- to be honest, to

make sure devolved areas like

Cambridgeshire and Peterborough can

get on with the job. It is about

people like myself also and the

position I am in creating the

environment where we can manage

growth it comes to our area.

How

much a priority is the issue of pay

for public sector workers? Pay rise

for nurses and abuse to the NHS?

It

is key, that it is not just public

sector workers struggling with low

pay increases. The economy is

strong. We know we are creating

jobs. We know we are creating jobs

and being in work is better than

being out of work but we know that

people want more money and it is not

just public sector workers, it is

people across the board, people in

this kind of industry. We have to be

fair and look after the entire

population, not just portions of it.

That is it from us for the moment.

Obviously returned to us soon.

Thanks, Jo, and you can also take

advantage the BBC's range of expert

analysis and all the latest Budget

news on the BBC website -

that's bbc.co.uk/budget.

It's nearly midday

here at Westminster.

We can go back to the helicopter.

You know it is an important occasion

when there is a helicopter. We will

go to the House of Commons for Prime

Minister's Questions.

Will the pay cap be scrapped? It

already has been in a couple of

areas. I expect the Chancellor to

set out further reform particularly

for nurses but what I understand is

crucially there will not be extra

cash to go to public sector pay. If

the unions, Labour, people who are

going home to and from public sector

jobs thinking I have desperately

decided I need a pay rise, if they

think they will get it today, I

understand they will not. There will

be extra cash for the NHS but it is

not clear how much more, not as much

as the 4 billion they asked for. I

expect the NHS would say if the

people who decide nurses' pay, which

is not the NHS itself, so there

should be an increase all of that

extra money could be swallowed up

immediately. Not a big check for

public sector pay but further moves

towards say the era when it was held

down as a political promise, that is

gone. Jeremy Hunt said some time ago

in the Commons the pay cap had gone.

I understand he is at a hospital

somewhere today so there could be

money.

We are not sure if that is

the case. There will be some extra

money, not sure how much.

There are

a lot of bills in the Chancellor's

in trade. He haps to find 2 billion

on the U-turn on National Insurance

and the deal for Northern Ireland

worth one billion and 2 billion for

affordable homes, Mrs May told us,

public sector pay cap has to be paid

for. There have been other spending

commitments. I would suggest when

you add it up and look at the

difficulties he has with the

deficit, he will loosen his belt.

I have asked your question but you

have not got time to answer it! Hold

that thought and let's go to PMQs.

Members across the House will want

to join me in congratulating Sarah

Clark inherited when as Lady Usher

of the Black Rod. She will be the

first woman to hold this role in its

650 year history and we offer her

our best wishes.

This morning I had meetings with

ministerial colleagues and others.

In addition to my duties, I will

have further such meetings today.

Mr Speaker, the BBC are currently

broadcasting Drugsland, filmed in my

constituency, showing the

catastrophic impact of drugs laws on

innocent bystanders. We'll be Prime

Minister commit to watching

Drugsland and Royal commission on

our drugs laws which are plainly

failing?

I'm pleased to say that the

Home Office under my right

honourable friend the Home Secretary

launched the drugs strategy only a

matter of weeks ago. We recognise

the importance of this issue. Drugs

significantly affect people's lives,

and sadly we also see people driving

as a result of taking drugs but also

the criminal activity that takes

place around drugs. We take this

very seriously, that is why we have

launched our strategy.

Divorce and family breakdown takes

an emotional toll on all those

involved, but the finally dynamic

often overlooked is that between

grandparents and their

grandchildren. If access to

grandchildren is removed or blocked,

some grandparents call this a form

of living bereavement. Will the

Prime Minister join me, Dame Esther

Rantzen, and thousands of

grandparents across the country, to

call for a change in the law to give

access rights to grandchildren as is

the case in France?

My honourable

friend is absolutely right that of

course grandparents do play an

important role in the lives of their

grandchildren. We can all I'm sure

sympathise with those who suffer

anguish when they are prevented from

seeing their grandchildren. When

making decisions about a child's

future, the first consideration must

be the child's welfare. The law

already allows family courts to

order that a child should spend time

with their grandparents and I

understand my honourable friend has

recently seen the Minister for the

state of justice and I'm sure they

will consider the points carefully.

Jeremy Corbyn.

Thank you, Mr

Speaker. I joined the Prime Minister

in congratulating the new Usher of

the Black Rod and I am pleased it is

a woman who has got that position at

last. I hope the whole house will

join me in sending solidarity

following the atrocious suicide

bombing which killed 50 people in

eastern Nigeria. We should speak

with sympathy for those who have

lost loved ones and the obvious

trauma they are all going through.

Mr Speaker, the Irish Prime Minister

who has discussed Brexit with the

British government says sometimes it

doesn't seem like they have thought

all this through. So can the Prime

Minister reassure him by plainly

outlining the Government policy on

the Irish border?

First of all, I am

glad the right honourable gentleman

has welcomed the new Lady Usher of

the Black Rod. I hope it will not

take 650 years before the Labour

Party has a female leader.

On the second issue... On the second

issue that he raised, he referred to

the issue of the attack that had

taken place in eastern Nigeria, and

of course I'm sure the thoughts and

condolences of the whole House will

be with those affected by it. He

also asked me to outline our policy

between the border of an end and the

Republic of Ireland. I'm very happy

to do so. We have done so on a

number of occasions. We are very

clear first of all in relation to

the movement of people, the Common

travel area will continue to operate

as it has done since 1923, and on

trade and movement of goods and

services across-the-board, we will

not see a hard border being

introduced. We have been very clear.

Jeremy Corbyn.

Mr Speaker,

yesterday, the Foreign Secretary

said there can be no border, that

will be unthinkable. Maybe, but they

have had 17 months to come up with

an answer to this question, and

there is still no answered the

question because they have not

engaged with the negotiations

properly. There is another person

who doesn't think the negotiations

are going to and that is the right

honourable member for Woking, who it

was an ecclesiastic campaign for

Brexit, but also finds time to be

the chief global strategist for

Charles Stanley investments. And he

recently advised clients to invest

elsewhere as the UK is hitting the

brakes. Does the Prime Minister take

advice from the member for Woking

and does she agree with him? --

Wokingham.

We have been engaging

fully in the negotiations in

relation to Northern Ireland and

other issues with the negotiations,

and indeed, significant progress has

been made. That is why I have said

we have got agreement on the

operation of the Common travel area

for the future. He says we have not

put any ideas about the board out, I

have to say to him, we published a

paper back in the summer on the

hospital customs arrangements which

could take place -- the possible

customs arrangements which could

take place. We are happy to move to

further discussions of the customs

and trading relationship we will

have not just between Northern

Ireland and the Republic, but

between the United Kingdom and

European Union. That does mean

moving on to face two and the

question for the right honourable

gentleman, if he thinks it is so

important, why do his MEPs vote

against it?

Mr Speaker, the EU's

chief negotiator said this week the

UK financial sector will lose its

current rights to trade with Europe.

It seems neither EU negotiators or

the Government have any idea where

this is going. Last week, the Brexit

secretary said he would guarantee

free movement for bankers post

Brexit. Are there any other groups

to whom the Prime Minister believes

freedom of movement should apply,

nurses, doctors, teachers,

scientists, agricultural workers,

care workers?

I'm very interested

that the right honourable gentleman

has found that his appearances at

prime ministers questions have been

going so well, he has had to borrow

a question from the leader of the

Liberal Democrats, which he asked me

last week. Perhaps the Leader of the

Opposition should pay more attention

to what happens in prime ministers

questions. We have been absolutely

clear that we will be introducing

new immigration rules and as we

introduce them we will take account

of the needs of the British economy

in doing so. That is why the Home

Secretary has asked the migration

advisory committee to advise on base

areas where we need to pay the

killer attention to migration coming

into the United Kingdom. We want to

get on to deal with the question of

the future trading relationship, but

I am also optimistic about the

opportunities that will be available

to this country and about the deal

we can get from the negotiations we

are having. The right honourable

gentleman cannot even decide if he

wants to be in the customs union,

out of it, in the single market, out

of it. He needs to get his act

together.

In April, the Brexit

secretary was confident the European

banking authority would be staying

in London. Now he can't even

guarantee banks having a right to

trade with Europe. Last week, the

Government voted down Labour's

amendments to protect workers'

rights. The Foreign Secretary

described employment regulation as

and I quote: backbreaking. And

repeatedly promised to and I quote

again: scrap the social chapter. Why

when she guarantee workers' rights

order she agree with the Foreign

Secretary on these matters?

We have

guaranteed workers' rights. We have

introduced a bill in the House of

Commons to guarantee workers' rights

and the Labour Party voted against

it.

Mr Speaker, The Record is clear,

this government voted down our

amendment to protect workers'

rights. The Environment Secretary

said he wanted a green Brexit. Yet

again, Conservative MPs voted down

Labour's amendments to guarantee

environmental protection. On the 5th

of December, Mr Speaker, the

European financial summit takes

place to address the issue of tax

dodging as exposed by the Paradise

papers. There are three proposals on

the table, to blacklist tax havens

like Bermuda, nude transparency

rules to tax intermediaries, and

mandate three country by country

reporting for profit. Will the Prime

Minister back these proposals, or is

she is still threatening to turn

Britain into a tax haven?

I will

take no lectures from the Labour

Party on dealing with tax avoidance

and tax evasion. £160 billion more

taken as a result of action taken by

Conservatives in government. 75 new

measures to deal with tax avoidance

and tax evasion. And I am pleased to

say, recently, HMRC won an important

case on tax avoidance in the Supreme

Court, which means a further one

point £1 billion coming to the

United Kingdom. He may talk about

tax avoidance and tax evasion, it is

this government which takes action

and makes sure we collect it.

Her

predecessor block EU wide proposals

for a public register of trust and

again, the Conservative MPs have

voted down Labour's amendments to

deal with tax avoidance. Mr Speaker,

when it comes to Brexit, this

government is a shambles.

Order!

Order! Far too many members are

gesticulating on both sides of the

House in a frenetic and frankly,

outlandish fashion. I say to the

honourable member, he should seek to

imitate the Zen like calm and

statesmanship of the Father of the

House. Mr Jeremy Corbyn.

I have much in common with the

venom, Mr Speaker. -- I have much in

common with zen, Mr Speaker.

Mr Speaker. 17 months after the

referendum, they say there can be no

hard border but haven't worked out

how. They say they will protect

workers' rights and then vote

against it. They say they will

protect environmental rights and

then vote against it. They promised

action on tax avoidance and then

vote against it time and time again.

And, Mr Speaker, once again the

Foreign Secretary offers his

opinions, as does the Environment

Secretary saying, there is

insufficient energy going into these

Brexit negotiations. Their words, Mr

Speaker, not mine. Is it the truth

this government has no energy, no

agreed plan and no strategy to

deliver a good Brexit for Britain?

Can I say to the right honourable

gentleman, he talks about voting

against tax avoidance measures, it

was the Labour Party which refused

to allow tax avoidance measures to

go through in a bill before we

called the general election. So he

should look at his own record and he

talks about people taking different

opinions. I might remind him that on

Monday, and perhaps the Shadow

Chancellor would like to listen to

this? On Monday, when we were

putting through that important piece

of legislation in relation to

customs and taxation and Europe, 76

Labour MPs voted in a different

lobby than his front bench.

The party has no clue on Brexit in

this Commons is the Labour Party.

Week in and week out the right

honourable gentleman comes to this

House and talks down our country and

is pessimistic about our future. Let

me tell him, I am optimistic about

our future. I am optimistic about

the success we can make a Brexit and

I am optimistic about the well-paid

jobs that will be created, I am

optimistic about homes we will

build, that conservatives are

building a Briton fit for the

future. All he offers is a blast

from the past.

With the Prime Minister reassure

people this Conservative government

is committed to maintaining the

United Kingdom's strong commitment

to the highest standards of animal

welfare now and post Brexit.

I am

happy to give that commitment. We

already have some of the highest

animal welfare standards in the

world and as we leave the EU we

should enhance those standards. We

have set out proposals to introduce

mandatory CCTV in slaughterhouses

and increase sentences for animal

cruelty, ban microbeads that damage

marine life and banned the ivory

trade to bring an end to elephant

poaching and we recognise animals

are sentience beings and should be

treated accordingly. The animal

welfare act 2006 provides protection

for all animals capable of

experiencing pain or suffering under

the control of man. I reaffirmed to

my honourable friend we will ensure

we maintain and enhance animal

welfare standards when we leave the

EU.

Can the Prime Minister tell the

House how many jobs have been lost

this week with the departure of the

European medicines authority and

banking authority from London?

We

are seeing those two agencies leave

the United Kingdom and go elsewhere

in the European Union that when he

talks about the number of jobs being

created we have seen under this

government 3 million jobs created.

That is a record I would have

thought even he would welcome.

Of course, the Prime Minister

refused to answer the question. Let

me tell her, so she is aware of the

cost of the hard Tory Brexit, losing

the EMA and EBA means losing over

1000 jobs and the Bank of England

have told us the city will lose

75,000 jobs, jobs are already gone

and jobs are going, Brexit is

already biting. Will the Prime

Minister recognise that exiting the

EU is losing jobs and centres of

excellence from the United Kingdom?

I recognise that those agencies are

leaving the United Kingdom but the

right honourable gentleman talks

about numbers of jobs lost. Since

the Conservatives came into

government, 3 million jobs, 3

million more people in work, 3

million more people able to provide

an income for themselves and their

families.

Last year housing associations

generated 5.5 billion in cash

surplus which could be used to build

48,000 new homes. The accumulated

reserves or housing associations

come to 42 billion which would mean

36,500 properties a year for the

next ten years could be built. Would

my right honourable friend look at

ways we can make sure housing

associations use the money to build

the new homes people want rather

than having them sitting in the

bank.

He raises an important point

and the issue of housing and

homelessness is something he has

been a campaigner on. This is

already the approach taken by

housing associations. They are

nonprofit organisations and

surpluses of reinvested in the

business and in 2015, investment in

new and existing property was more

than double the surpluses they

generated. I have announced an

additional 2 billion funding for

affordable homes including social

rent and last week housing

associations were reclassified to

the private sector which takes 70

billion of debt off the balance

sheet which means greater certainty

for housing associations to get on

with the job of building more homes.

My thoughts are with the many

constituents who have friends and

family in Nigeria. The SNP has asked

140 times that the VAT paid by

police and Fire Services Amber

hundred and £40 million to be

refunded. The Chancellor said only

last month legally we would not be

able to recover that and the UK

Government is constrained by the

rules in place.

Was he misleading

us? The SNP may have answered a

number of questions but the SNP knew

when they took the decision to

create a single police and fire

authority this would be the VAT

treatment.

Given the revised housing proposals

that would force unprecedented

numbers to the equivalent of a new

town will the Prime Minister give me

and my constituents reassurances

unnecessary large-scale investment

which will need to be made to boost

public service infrastructure that

will have to cope with up to 100,000

more people?

This is of course an

important point for people. We want

to see more homes built because I

want young people to have the

prospect they are going to have the

future their parents and

grandparents had to own their own

homes and we will go further in

building more homes but she is

right, as we do that we need to make

sure the infrastructure is in place

and we are putting in billions for

economic infrastructure up to 2021

including issues like transport,

fibre broadband, but we recognise

the importance of making sure homes

are supported by the right

infrastructure.

I am proud the last Labour

government lifted more than 1

million children out of poverty.

This government seems committed to

doing the opposite. With the

Institute for Fiscal Studies

predicting an additional 1.2 million

children will be pushed into poverty

by 2021. That is on top of the

4,000,020 15-16. Is the Prime

Minister proud of her government's

record of failure on this and does

she think the worrying forecast is

acceptable?

Far from the way in which she has

portrayed the situation we have seen

since 2010 600,000 fewer people in

absolute poverty, a record low,

300,000 fewer working age adults in

absolute poverty, and 200,000

children fewer in absolute poverty.

200,000 fewer children in absolute

poverty. We have also seen families

getting into work, 1 million fewer

work less households.

As the Prime Minister is aware

Scotland is lagging behind the rest

of the UK in terms of superfast

broadband roll-out and in my

constituency even further behind. A

huge volume of my casework... A huge

volume of my casework from one of my

largest towns where 20,000

constituents reside, it is hardly

what you would deem a remote area,

can the Prime Minister confirm the

next generation of funding to

support the roll-out in Scotland

will bypass that... For businesses

and residents in my constituency get

the ball band a desire?

-- broadband

they desire. I am happy to confirm

that to my honourable friend and she

will know we are making progress in

Scotland but we need to go further.

So programmes such as five G will

allocate funding directly to local

projects based on the quality of

bids and my honourable friend the

minister for digital has confirmed

that their next generation of

technology, we will deliver it

directly to local authorities in

Scotland. Rather than going through

the Scottish Government because we

want to make sure that Scotland is

not left behind.

In 2014 and enquiry was set up to

look into a drug given to millions

of pregnant women in the 60s and 70s

that caused deformities and

documents showing a cover-up. Last

week a report was published

condemned by MPs in the house is

being white wash and misleading.

Will the Prime Minister meet the

victims and order a public inquiry

so justice can be done for these

people?

I know this is an issue number of

members have been concerned about

and recognise the result of the

review was not what some families

were hoping for. It was a

comprehensive independent review of

the available evidence by experts

and all the meetings of the working

were attended by an invited

independent expert at the request of

the patient group and the overall

conclusion is that the scientific

evidence does not support a causal

association but that does not

attract from the real suffering

experienced by the families and I

recognise these conclusions are hard

to accept. The Department of Health

is focused on implementing the

recommendations.

Does my right honourable friend

agreed the right revised offer to

the European Union far from throwing

money away would be worthwhile to

secure the future trading

relationship with our European

neighbours?

I say he raises an important issue

and I set out in my speech in

Florence the UK will honour

commitments we have made during our

membership. We do not want European

partners fearing they will receive

less or pay more. We can only

resolve the financial implications

of withdrawal finally as part of the

settlement of all issues I spoke

about in Florence but once that is

done in the days of Britain paying

vast sums of money to the EU every

year will end.

Every Prime Minister

since 1946 has successfully

appointed a British judge to the

international Court of Justice.

Why

has she not? Can I say to the

honourable gentleman the British

Prime Minister does not appoint

judges to the international Court of

Justice. There is a process

undertaken in the United Nations and

we wish all the judges who have been

appointed by votes through the UN to

the international Court of Justice

well.

My right honourable friend might be

aware in a debate last week members

of the Scottish National Party

declared if the Scottish Government

did not agree with the final Brexit

deal they would push for another

independence referendum. This

obsession with breaking up our

United Kingdom is damaging the

Scottish economy and causing

uncertainty. Will she Jomni in

asking the SNP to drop their

obsession with a second independence

referendum? -- will she join the?

The point raised is important.

Scotland had a referendum in 2014

that was legal and fair and the

result was decisive. The people of

Scotland voted to remain part of the

United Kingdom. I think that the

election they sent a second message

they didn't want a second referendum

on this issue so I say to the

Scottish Government, as we prepare

to leave the EU, they should work

with the UK Government to get the

right deal for the whole of the UK,

not taking Scotland back to these

divisive constitutional debates of

the past and I agree the SMP should

take the unwanted proposal off the

table once and for all.

Will the

Prime Minister support steel jobs in

Scunthorpe and elsewhere by

guaranteeing if the current

flexibility within the emissions

trading scheme is not retained until

2019, she will act immediately to

ensure British industry is not

financially penalise?

The honourable

gentleman raises an important point

and this government has done a

considerable amount to support the

steel industry in the United

Kingdom. I was pleased to be able to

earlier in the year make a visit and

meet with steelworkers and talk

about the prospects for steel in the

UK. We will look carefully to ensure

the arrangements in place of those

right for the national interest and

we have supported steel in the past.

Can I take my right honourable

friend back to the first question

asked by the honourable lady for

Bristol West and apart from

commending the quality of the BBC

programme she referred to, on the

issue of Prohibition of drugs

globally can I draw her attention to

the fact global policy is beginning

to change and in the face of the

evidential failure of policies since

the 1961 UN single convention on

prohibition of narcotics drugs, and

will she look at the evidence that

will emerge in the United States and

Canada on the legalisation of

cannabis markets there as well as

decriminalisation in Portugal and

elsewhere?

We are grateful. Quite

enough, we are grateful.

I can say to my honourable friend

that when I was Home Secretary a

piece of work was undertaken which

looked at the experience in a number

of countries and the ways they

approach this issue of drugs. I do

say to my right honourable friend

that I take a different opinion to

him in relation to drugs. I think

those who are dealing with those who

are affected by drugs would also do

so. I think of my constituent

Elizabeth Burdon Phillips who set up

Drug Fam after the suicide of her

son who was a drug addict. The work

she is doing because a member of the

family is on drugs and the

incredible damage that can do to

families and the individual

concerned. I'm sorry I say to my

honourable friend I take a different

view. I think it is right that we

continue to fight the war against

drugs.

The honourable member for

Chesterfield has migrated a

considerable way from his usual

place but we look forward to hearing

from him.

People with the most

serious disabilities find when they

move on to Universal Credit they are

£100 a week worse off, this is

because there is no severe

disability component in the payment.

Does the Prime Minister realise that

Universal Credit will continue to

shame had government, whilst it

pushes the most disabled into the

worst poverty?

I say to the

honourable gentleman that we spend

over £50 billion a year on benefits

to support disabled people and

people with health conditions. That

is increased by more than £7 billion

since 2010. Spending on disability

benefits will be higher in every

year to 2020 than it was in 2010.

And as regards Universal Credit, as

I have said in this chamber before,

Universal Credit is a simpler, more

straightforward system. But

crucially, Universal Credit is

helping people get into the

workplace and making sure they keep

more of the money that they earn.

So

David Amess.

Will my right

honourable friend join me in

congratulating the Lyon Sea branch

of the British Legion, local artist

Beth Hooper and Mary Lister, I'm

using a lottery grant for

schoolchildren in Southend to make

7500 Saran poppies and display them

on Southend's letters? And would she

agree with me it is a further good

reason to make Southend-on-Sea a

city?

IE congratulate the Leon C

branch of the British Legion and the

work they have done in

congratulating young people in

recognising the sacrifices made by

previous generations for our safety.

As for the last bit that is

interesting. I know he champions

Lee-On-Sea all the time and his bid

will be looked at carefully.

My constituent Haley Crawley is

having palliative care for bowel

cancer and she needs a specialist

drug. She waited months to hear that

her case for funding was rejected by

NHS England and we are now waiting

again to hear a reply for her

appeal. Please will be Prime

Minister right to NHS England and

ensured that her case is treated as

I priority.

Obviously, I wear this

will be causing distress to Haley

while she is waiting for this appeal

decision to come through and I am

sure the Secretary of State for

Health will look carefully at the

case the honourable lady has raised.

We were able to bring in the Cancer

Drugs Fund which has enabled some

patients to get access to drugs

which otherwise would not be

available, but I recognise the

concern and distress that her

constituent will be suffering from

while she awaits for this decision.

The Prime Minister will be aware

that under President Mugabe, British

citizens living in Zimbabwe,

especially land overs, suffered

considerably. Can she give an

assurance to the House that as we

seek a new regime coming into

Zimbabwe, the British government

will do all it can to persuade the

new regime to treat British citizens

living lawfully in that country,

treat them with respect and the

safety and security they should have

along with all other Zimbabwean

citizens.

My honourable friend does

raise an important point, as we see

this change taking place in

Zimbabwe. I have to say the

resignation of Robert Mugabe

provides Zimbabwe with an

opportunity to forge a new path,

free from the depression which has

characterised the past. We want to

see a democratic free secure

Zimbabwe, where people across

communities, and from communities

across Zimbabwe are able to

carry out their lives without fear,

without oppression and we want to

see that country rejoining the

international community. We have

obviously provided some support to

Zimbabwe in terms of UK aid, and as

their oldest friend, we will do

everything we can to support their

change into a country which is free

and democratic and free from

oppression from all communities.

Order.

STUDIO:

So Prime Minister's Questions

comes to an end and.

As is traditional at a Budget,

the Speaker makes way for the deputy

speaker, Lindsey Hoyle,

speaker, Lindsey Hoyle.

The Commons chamber now becomes the

committee of ways and Means, it is

called. That is the committee which

hears Budget and financial matters.

That is why Lindsey Hoyle the

Chairman of Ways and Means takes

over. Let's go back to the House and

I'm sure we will hear from the

Chancellor shortly.

I now call the Chancellor of the

Exchequer, the Right Honourable

Philip Hammond.

Mr Deputy Speaker, I report today on

an economy which continues to grow,

continues to create more jobs than

ever before, and continues to

confound those who seek to talk it

down. An economy is set on a path to

a new relationship with our European

neighbours and a new future outside

the European Union. A future that

will be full of change, full of new

challenges and above all, full of

new opportunities. And in this

Budget, we express our resolve to

look forwards, not backwards. To

embrace that change, to meet those

challenges head-on, and to seize

those for Britain. For negotiations

on a relationship with the EU are in

a critical phase. My right

honourable friend the Prime Minister

has been clear we seek a deep and

special partnership based on free

and frictionless trading goods,

close collaboration on security and

strong mutual respect and

friendship. As Chancellor, Mr Deputy

Speaker, I am clear that one of the

biggest boosts we can provide to

businesses and families, one of the

best ways to protect British jobs

and prosperity, as we build that new

future, is to make early progress in

delivering my right honourable

friend's vision. With an

implementation agreement that allows

businesses to plan and invest with

confidence. And this government will

make the pursuit of that progress is

a top priority in the weeks ahead.

But Mr Deputy Speaker, while we work

to achieve this deep and special

partnership, we are determined to

ensure that the country is prepared

for every possible outcome. We have

already invested almost £700 million

in Brexit preparations, and today, I

am setting aside over the next two

years, another £3 billion, and I

stand ready to allocate further sums

if and when needed. Mr Deputy

Speaker, no one should doubt our

resolve. But this Budget is about

much more than Brexit. The world is

on the brink of a technological

revolution, one that will change the

way that we work and live, and

transform our living standards for

generations to come. And we face a

choice. Either we embrace the

future, seize the opportunities that

lie within our grasp, and build on

Britain's great global success

story, or as the party opposite

advocates, rejects change and turn

inwards to the failed and irrelevant

dogmas of the past. Mr Deputy

Speaker, we have no doubt we choose

the future. We choose, we choose to

run towards change, not away from

it. To prepare our people to meet

the challenges ahead, not to hide

from them. And the prize will be

enormous. For the first time in

decades, Britain is genuinely at the

forefront of this technological

revolution. Not just in our

universities and research

institutes, but this time in the

commercial development labs of our

great companies and on factory

floors and business parks across

this land. But we must invest to

secure this bright future for

Britain, and that this Budget, that

is what we choose to do. But Mr

Deputy Speaker, we are listening,

and we understand the frustration of

families where real incomes or under

pressure. So at this Budget we

choose a balanced approach. Yes,

maintaining fiscal responsibility as

we last see our debt Peking.

Continuing to invest in the skills

and infrastructure that will support

the jobs of the future. Building the

homes that will make good on our

promise to the next generation. But

crucially, also helping families to

cope with the cost of living. Mr

Deputy Speaker, as we invest in our

country's future, I have a clear

vision of what that global Britain

looks like. A prosperous and

inclusive economy. Where everybody

has the opportunity to shine.

Wherever in these islands they live,

and whatever their background. Where

talent and hard work are rewarded.

Where the dream of home ownership is

a reality for all generations. A hub

of enterprise and innovation. A

beacon of creativity. A civilised

and tolerant place that cares for

the vulnerable and nurtures the

talented. And outward looking free

trading nation, a full good in the

world. That is the Britain that I

want to leave to my children, Mr

Deputy Speaker. A Britain we can be

proud of. A country fit for the

future. I know we will not build it

overnight, but in this Budget today

we will lay the foundations. I'm

being tempted with something a

little more exotic here, but I will

stick to plain water. I did take the

precaution... I did take the

precaution of asking my right

honourable friend to bring a packet

of cough sweets just in case.

LAUGHTER

Mr Deputy Speaker, Mr Deputy

Speaker...

Order, order. I think it

might be a hearing aid we all need

if this continues.

Mr Deputy

Speaker, I shall first report to the

House on the economic forecast of

the independent OBR. This is the bit

with the long economic words in it.

LAUGHTER

Once again, I thank Robert Chote and

his team for their hard work over

the last few weeks. I believe

passionately that the best way to

improve the lives of people across

the length and breadth of this

country is to help them get into

work. Mr Deputy Speaker, I am

acutely aware that 1.4 million

people out of work is 1.4 million to

many. So today... Today I welcome

the OBR forecast that there will be

another 600,000 people in work by

2022. And I am immensely proud of

this government's record in having

created over 3 million new jobs

since 2010.

A far cry from the 1.2 million job

losses the right honourable member

for Hayes and Harlington predicted

in 2011 but in no doubt this

government will continue its focus

on getting more people into work,

giving them security and peace of

mind of a regular wage. I want work

to be a good well-paid and

regrettably our productivity

performance continues to disappoint.

The OBR assumed at each of the last

16 fiscal events that productivity

growth would return to its precrisis

trend of about 2% per year, but it

has remained stubbornly flat. Today

they revised down the outlook for

productivity growth, business

investment and GDP growth across the

forecast period. They now expect to

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

2018, one .3 in 2019 and 2020,

before picking up to 1.5% and

finally 1.6% in 2022. With inflation

peaking at 3% in this quarter before

falling back to target in the next

year. I reaffirm the remit that the

Monetary Policy Committee and its

inflation target. We took over an

economy with the highest budget

deficit in peacetime history. Since

then, thanks to the hard work of the

British people, that deficit has

been shrinking. Next year, it will

be below 2%. Our debt is still too

high and we need to get it down. Not

for and ideological reason, but

because successive debt undermines

economic security leaving is

vulnerable to shocks. It passes the

burden unfairly to the next

generation. And because it simply

cannot be right to spend more on our

debt interest than on police and

Armed Forces combined. I am pleased

to tell the House OBR expects debt

to peak this year and then gradually

fall as a share of GDP. They turning

point in the recovery. Mr Deputy

Speaker, apparently, not everyone

shares the view that falling debt is

good news. I heard representations

from the party opposite suggesting

increasing the debt by £500 billion.

Taking us back to square one,

wasting an extra £7 billion a year

on debt interest. If they carry on

like that, there will be plenty of

others joining Kezia Dugdale saying,

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

Deputy Speaker, I have rejected

these representations and instead I

reaffirm our pledge of fiscal

responsibility and our commitment to

the fiscal rules set out last

autumn. Now I choose to use some of

the headroom I established then so

that as well as reducing debt, we

can also invest in Britain's future,

support key public services, keep

taxes low and provide a little help

to families and businesses under

pressure. A balanced approach that

will prepare Britain for the future,

not seek to hide from it. Today the

OBR confirmed we are on track to

meet our fiscal rules, borrowing is

forecast to be 49.9 billion this

year, 8.4 billion lower than

forecast at the spring budget. After

taking account of all decisions

since the spring budget, the GDP

revision and measures I will

announce borrowing will fall in

every year of the forecast from 39.5

billion next year, to 25.6 point

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

lowest level in 20 years. As a

percentage of GDP falls from 2.4% to

1.9% next year, then 1.6, 1.5, 1.3

and finally 1.1% in 22-3. The OBR

forecast the structural deficit to

be 1.3% of GDP in 2021, giving 14.8

billion of headroom against our 2%

target. Debt will peak at 86.5% of

GDP this year and then fall to 86.4,

then 86.1, 83.1, 79.3 and 79.1 in 22

- 23, the first sustained decline in

debt in 17 years. Under Conservative

led governments, the hard work of

the British people is steadily

clearing up the mess left behind by

Labour. At the heart of global

Britain must be a dynamic and

innovative economy. On Monday, the

Prime Minister set out key elements

of our modern industrial strategy,

which will raise productivity and

wages in all parts of the country

and guarantee a brighter future we

have promised to the next

generation. The Business Secretary

will present a White Paper in the

next few days. This is not just an

economic plan. It is a key part of

our vision for a fairer Britain, a

Britain where every one of our

citizens can contribute to and share

in the benefits of prosperity. And

the key to raising the wages of

British workers is raising

investment, public and we are

investing in Britain's future, half

£1 trillion since 2010, the biggest

rail programme since Victorian

times, the largest road-building

programme since the 1970s, the

biggest increase in science and

innovation funding in four decades

and the two largest infrastructure

projects in Europe, Crossrail and

HS2. When I took this job I

committed to make the battle to

raise Britain's productivity and the

nation's pay the central mission of

the Treasury. Last autumn, I

launched the national productivity

investment funds to provide an

additional £23 billion of investment

over five years, to upgrade the

economic infrastructure for the 21st

century. Today I announce I will

extend the fund a further year and

expand it to over £31 billion.

Meaning that public investment under

this government will on average be

£25 billion per year higher in real

terms than under the last Labour

government. We are allocating a

further £2.3 billion for investment

in R&B and will increase the main

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

drive up investment across the

economy to 2.4% of GDP. Britain is

the world's sixth-largest economy.

London is the number one

international financial services

sector and we have some of the

world's Best companies and a

commanding position in a raft of

tech and digital industries that

will form the backbone of the global

economy. Those who under estimate

Britain do so at their peril.

Because we will harness this

potential and turn it into the

high-paid, high productivity jobs of

tomorrow. Others may choose to

reject the future, we choose to

embrace it. A new tech business is

founded in Britain every hour. I

want that to be every half-hour.

Today, we invest over £500 million

in a range of initiatives from

artificial intelligence to five G

and four fibre broadband and support

regulation with the new Pioneer fund

and a new geospatial data commission

to develop... You should listen. To

develop a strategy for using the

government location data to support

economic growth and to help tech

start-ups reach scale we asked for a

review of availability of capital.

Today we are publishing an action

plan to unlock over £20 billion of

new investment in UK knowledge

intensive scale up businesses

including through a new fund in the

British business bank seeded with

£2.5 billion of public money by

facilitating pension-fund access to

long-term investment sum by doubling

investments limits for knowledge

intensive companies while ensuring

EI S is not used as a shelter for

low risk capital preservation

schemes. We stand ready to step in

to replace European investment fund

lending is necessary. There is

perhaps no technology as symbolic of

the Revolution gathering pace as

driverless vehicles.

They surely do not want me to make

the joke about the Labour Party

again, Mr Deputy Speaker? I know

Jeremy Clarkson does not like them

but there are many other good

reasons to pursue this technology.

Today, we step up support for it.

I'm sorry, Jeremy, definitely not

the first time you have been snubbed

by Hammond and May. Allah future

-- our future vehicles will be

driverless but there they will be

electric first and that is a change

that needs to come as soon as

possible for the planet. We will

establish a £400 million structure

fund and invest an extra hundred

million per plug-in car Grant and

more for R&D. I will clarify the law

so that people who charge electric

vehicles at work will not face a

benefit in kind charge from next

year. The tax system can play an

important role in protecting our

environment. We owe it to our

children the air they breathe is

clean and we published the air

quality plan this year and said then

we would fund it through taxes on

new diesel cars. From April 2018,

the first year rate for diesel cars

that do not meet the latest

standards will go up by £1 and the

existing supplement in company car

tax will increase by one percentage

point and drivers buying a new car

will avoid this charge as soon as

manufacturers bring forward the next

generation of cleaner diesels. We

only apply this measure to cars.

Before the headline writers start to

limber up, let me be clear. No white

van man or woman will be hit by

these measures. This levy will fund

a new £220 million cleaner fund to

provide support for the