The Spending Review Daily Politics


The Spending Review

Andrew Neil presents live coverage of George Osborne's Spending Review and Autumn Statement, plus live coverage of Prime Minister's Questions.


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Transcript


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George Osborne wants Britain to live within its means.

:00:07.:00:08.

His critics say he's cutting public services to the bone.

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We'll find out what the Chancellor has in store for us all

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in an hour when he tells us how he's going to spend our money over

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Welcome to this BBC News special on the Chancellor's combined

:00:19.:00:52.

Spending Review and Autumn Statement for 2015, which will help define tax

:00:53.:00:56.

and spend in this country for the rest of the decade.

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He wants to spend more on health, defence, security and now housing,

:01:01.:01:07.

all while balancing the books - which means big cuts

:01:08.:01:10.

That's not to mention the little matter of rowing back

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I'm here at this brand new shopping centre in Birmingham, the city

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at the heart of what the chancellor calls the Midlands Engine.

:01:27.:01:29.

We'll be getting reaction from businesses, local government,

:01:30.:01:31.

We'll also be in our virtual Treasury courtyard to look

:01:32.:01:38.

at where the chancellor can find the ?20 billion of savings he says

:01:39.:01:41.

I'll be here outside Parliament getting reaction from from

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across the political spectrum to a speech that could define

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And you can follow the story and find all the best analysis

:01:57.:02:00.

on the BBC news website, throughout the day.

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Did I mention best analysis? Of course I did.

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for the next four hours by the BBC's political editor Laura Kuenssberg,

:02:27.:02:30.

our business editor Kamal Ahmed and, in his farewell lap before he

:02:31.:02:33.

leaves the BBC, our outgoing economics editor Robert Peston.

:02:34.:02:35.

We'll be frisking him before he leaves

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the studio to check he's not running off with any of the stationery.

:02:38.:02:40.

So it's a big day for the Chancellor - and for the country.

:02:41.:02:43.

It's Mr Osborne's thirrd Spending Review since he entered

:02:44.:02:45.

At its core, he will set how much is to be spent on Government

:02:46.:02:51.

departments and public services over the next four financial years.

:02:52.:02:56.

Cumulatively, we're talking about well over ?3 trillion.

:02:57.:03:01.

And if that's not enough excitement for one day, this year he's combined

:03:02.:03:04.

his Spending Review with his annual Autumn Statement, which sets out

:03:05.:03:07.

the latest official forecasts for inflation, employment, borrowing and

:03:08.:03:11.

other key indicators for the course of our economy through 2016.

:03:12.:03:18.

So a lot riding on today for the economy,

:03:19.:03:26.

our public services, our national and economic security -

:03:27.:03:29.

and, of course, for George Osborne himself.

:03:30.:03:35.

We have seen George Osborne leave the Treasury a few minutes ago. He

:03:36.:03:42.

made the trip safely. But the Prime Minister's car had a nasty prank

:03:43.:03:46.

this morning outside Number Ten Downing St.

:03:47.:03:52.

Do you think the Prime Minister was inside? I'm sure government

:03:53.:03:58.

ministers will be hoping that is not a harbinger of things to come.

:03:59.:04:06.

Laura, the Chancellor is under particular financial pressure, he

:04:07.:04:09.

has promised to get us into surplus by the end of the decade. Every time

:04:10.:04:13.

he turns a corner someone says, I want more money for this?

:04:14.:04:21.

Absolutely. Today is where the rhetoric smashes up with reality and

:04:22.:04:25.

their big aspiration is also their big faculty. How do you make a set

:04:26.:04:30.

of hard-fought decisions, hefty cuts to many departments, look like they

:04:31.:04:35.

are a programme, a coherent programme that matches the

:04:36.:04:39.

priorities of the millions of voters in the middle, the floating voters

:04:40.:04:43.

the Conservatives did not just want to get in this year, but want to

:04:44.:04:47.

secure with an even bigger majority next time round. That is what it is

:04:48.:04:57.

all about. The difficulties, with more money for health and housing,

:04:58.:05:00.

less money to local council, cuts to social care and cuts to the police.

:05:01.:05:04.

The most acute demonstration to this dilemma of all, what on earth will

:05:05.:05:08.

he do to tax credits? Significant cuts to people who are already in

:05:09.:05:15.

work. He had to signal a humiliating U-turn. The detail will be crucial

:05:16.:05:23.

today. And he is a Chancellor only halfway through his deficit

:05:24.:05:26.

reduction strategy which he started in 2010, he should have finished it

:05:27.:05:32.

by now. And yet on health, security, tax credits, defence, he is being

:05:33.:05:35.

asked to spend more money. lopsided approach to actually

:05:36.:05:55.

balancing the books, which lopsided approach to actually

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significant. There are people in lopsided approach to actually

:05:57.:06:03.

Conservative Party think the ring-fencing of health and other

:06:04.:06:07.

departments was fundamental strategic mistake. Instead of

:06:08.:06:11.

looking at the books starting from zero, they are looking at the books

:06:12.:06:15.

in a way which makes it completely lopsided and therefore making the

:06:16.:06:18.

sums add up in a way they have lopsided and therefore making the

:06:19.:06:22.

promised to do, it makes it almost impossible. OK.

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promised to do, it makes it almost We should point out no one was

:06:25.:06:29.

injured in the making of that crash, if crash is

:06:30.:06:32.

Today's statement is fundamentally about finding

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the further ?20 billion of savings the Chancellor says is needed to

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eliminate the deficit and move into modest surplus by 2019-20.

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We'll look in a moment at where he might find those savings.

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First, Robert take us through the Osborne plan.

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First, Robert take us through this school rules. Let's look at the

:06:59.:07:01.

deficit he forecast for this this school rules. Let's look at the

:07:02.:07:06.

in the July budget. -- famous fiscal rules. We already know he's going to

:07:07.:07:21.

miss the deficit of ?70 billion. Over the course of the parliament in

:07:22.:07:29.

the last budget, he saw that deficit declining and actually achieving a

:07:30.:07:32.

surplus, I think you have already mentioned, of ?10 billion in

:07:33.:07:40.

2019-20. My expectation is that surplus will be revised down,

:07:41.:07:41.

because of the sort of surplus will be revised down,

:07:42.:07:44.

have been talking to Laura about, the pressure just Ben Moore on

:07:45.:07:48.

priorities like security and housing. So, let's put that now into

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the context of the national debt, a whopping ?1.5 trillion in round

:07:57.:08:01.

numbers. In percentage terms, that began the last Parliament just under

:08:02.:08:09.

70% of GDP, or national income. It has risen progressively, painfully

:08:10.:08:16.

since then, and is currently a bit over 80% of GDP. In that last

:08:17.:08:20.

budget, the Chancellor made a big thing about how this would be the

:08:21.:08:25.

peak year for debt as a percentage of GDP. He might not achieve that.

:08:26.:08:34.

Let's see what the OBR says and we will have to wait until April am

:08:35.:08:37.

frankly, to find out the truth of that. Borrowing is not going quite

:08:38.:08:40.

as well as he would want. That said, he will make a priority of trying to

:08:41.:08:44.

get the debt down significantly over the parliament. The last set of

:08:45.:08:49.

forecasts saw the debt falling as a share of GDP to about 72% of our

:08:50.:08:55.

national income. The background to all of this, it matters to him and

:08:56.:08:59.

all of us, it is what happens to the economy in the round. He started the

:09:00.:09:04.

last Parliament with very weak growth. It was 0.7% at its weakest

:09:05.:09:13.

in the last Parliament. But then it grew progressively. It accelerated

:09:14.:09:16.

progressively to 2.9% last year. That was the fastest GDP growth of

:09:17.:09:21.

the big developed economies, almost back to where we were before the

:09:22.:09:25.

crash, but growth has weakened since then. We expect it to be about 2.4%

:09:26.:09:32.

this year, and actually, we don't expect it frankly to accelerate much

:09:33.:09:36.

from that in the coming years. It could even weaken the bit. Why?

:09:37.:09:40.

Because of what is happening on the other side of the world. You and I

:09:41.:09:45.

have talked a lot about the slowdown in China. It is the big economic

:09:46.:09:52.

event right now. We cannot rule out a Chinese crash. If that were to

:09:53.:09:56.

happen, of course, everything we hear today becomes irrelevant. The

:09:57.:10:00.

shock to the global economy in those circumstances would be significant.

:10:01.:10:04.

He is making great play of making friends with China. He is assuming

:10:05.:10:10.

the slowdown in China will be gradual and manageable. We will have

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to wait and see. We will indeed. Thank you.

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Today's Spending Review will set spending limits for every Whitehall

:10:18.:10:19.

department for each of the next four financial years.

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The Chancellor has been locked in discussions with his Cabinet

:10:25.:10:27.

colleagues for weeks to agree the figures.

:10:28.:10:28.

The meetings have taken place at the Treasury, just across the

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The Chancellor claimed on Sunday the negotiations have been amicable.

:10:32.:10:35.

That's not the word ministers whose departments

:10:36.:10:36.

We'll find out who is bruised, bloodied or unbowed today.

:10:37.:10:42.

At the heart of the Treasury is a circular courtyard - you might

:10:43.:10:46.

recognise it because it's often used as a location for filming, including

:10:47.:10:50.

the latest James Bond, which means it's now famous across the globe.

:10:51.:10:56.

Now, we couldn't get Jo Coburn inside the real courtyard, despite

:10:57.:11:00.

her being pretty famous - but here she is to tell us more about

:11:01.:11:03.

Welcome to our virtual Treasury courtyard.

:11:04.:11:10.

Now, they don't have one of these in the real courtyard,

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but it represents everything that the Government is due to spend this

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I'm going to start by highlighting a few of the most significant parts

:11:18.:11:25.

You can see the ?217 billion that goes on social security.

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That includes everything from jobseeker's allowance

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And there's the ?35 billion the UK is due to spend this year

:11:40.:11:44.

George Osborne says that's a figure he's is determined to bring down.

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Now, the focus of today's statement is the money that goes on

:11:52.:11:55.

administering and delivering public services - departmental spending.

:11:56.:11:58.

You can see it's just under half of the total the Government spends.

:11:59.:12:06.

Now, we're going to delve into the budgets of a few of the most

:12:07.:12:09.

It's the NHS that accounts for the biggest chunk

:12:10.:12:17.

Now, the Chancellor isn't going to find any of his savings here,

:12:18.:12:23.

because he has promised to increase NHS funding in England

:12:24.:12:27.

The Government has also promised a real-terms increase

:12:28.:12:33.

That's part of its commitment to meeting the Nato target of spending

:12:34.:12:40.

The Government has also committed to spending 0.7% of GDP

:12:41.:12:49.

on overseas aid, meaning that budget is also protected.

:12:50.:12:55.

So, the Chancellor is not going to find any of his ?20 billion

:12:56.:12:59.

of savings says he he needs to make from either health, defence or aid.

:13:00.:13:02.

So, where could it come from instead?

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Well, what about from the education budget, a big part of what the state

:13:07.:13:10.

Here, the Conservatives have promised

:13:11.:13:15.

a cash increase per pupil in schools.

:13:16.:13:18.

That means savings from here would be limited, although

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the rest of the budget doesn't have any guaranteed protection.

:13:23.:13:27.

Here is the money that goes to English local authorities.

:13:28.:13:30.

This was one of the first departments to agree to big savings

:13:31.:13:34.

The Home Office, on the other hand, took longer

:13:35.:13:39.

The single biggest thing Theresa May's department spends

:13:40.:13:45.

money on is the grant it gives to police forces in England and Wales,

:13:46.:13:49.

although they also get some of their money from other sources, including

:13:50.:13:53.

Some of the other departments that are going to have to find

:13:54.:14:03.

big savings over the next four years are

:14:04.:14:05.

the Departments of Business, Transport and Justice.

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Let's go back to that big part of Government spending I mentioned

:14:08.:14:11.

Of course, that is where a lot of the focus has been in the weeks

:14:12.:14:18.

Now, again, here there is plenty the Chancellor won't touch.

:14:19.:14:23.

The state pension is a massive part of the Budget.

:14:24.:14:27.

But the Government has a long-standing promise not to cut it,

:14:28.:14:32.

The other areas of big spending the Government has had to look to

:14:33.:14:40.

are housing benefit, disability benefits and incapacity benefits.

:14:41.:14:45.

And you can see that big sum of money, ?30 billion,

:14:46.:14:50.

that is due to be spent on personal tax credits this year -

:14:51.:14:53.

an area where the Chancellor has found that making savings can prove

:14:54.:14:56.

Net speak to the BBC business editor now. One business that seems to be

:14:57.:15:12.

very happy because of what was leaked by the Treasury, the

:15:13.:15:16.

apparently 400,000 affordable homes, as the Chancellor calls them. This

:15:17.:15:21.

morning, house-building shares went through the roof? They did indeed.

:15:22.:15:25.

Listening to Laura and Robert, what is interesting is how it much the

:15:26.:15:29.

Government need the private sector to support delivery. The strategic

:15:30.:15:35.

purpose of George Osborne is to take pressure off microstate provision,

:15:36.:15:38.

give it to the private sector and say, go on, help us provide the kind

:15:39.:15:45.

of country and economy we want. In house-building, the centrepiece of

:15:46.:15:49.

David Cameron's Conference speech, he said he didn't want Generation

:15:50.:15:53.

Rent, he wanted to help people into affordable homes, that is an example

:15:54.:15:57.

of that. The Government have struggled with the supply-side

:15:58.:16:00.

problem. The issue they have had is that they have been constantly

:16:01.:16:05.

increasing demand. So, the help to buy policy increases demand, the

:16:06.:16:09.

support that we are hearing will be in the Autumn Statement that will

:16:10.:16:13.

help people buy affordable homes, that increases demand. They are also

:16:14.:16:17.

going to put some direct money into housing companies for them to build

:16:18.:16:20.

affordable homes. The problem is that housing new-builds are down

:16:21.:16:27.

slightly. That is because there is a real skill shortage in housing. Go

:16:28.:16:30.

country, they can't find enough country, they can't find enough

:16:31.:16:38.

in London, it had closed down by Thursday night, the builders had

:16:39.:16:42.

their money for the week and they took Friday off. House-building

:16:43.:16:48.

companies are building as many houses as they feel comfortable

:16:49.:16:51.

with, and their profits are up hugely, 40%. The other thing to

:16:52.:16:55.

watch for is how will social care changes, moving taxes down to local

:16:56.:17:02.

authorities to provide support for social care, how will that have an

:17:03.:17:05.

impact? The private sector provide the bulk of social care homes, they

:17:06.:17:10.

have been complaining about the rise to the National Living Wage

:17:11.:17:13.

affecting their business. They are being squeezed by having to pay more

:17:14.:17:17.

for workers, a lot of them on minimum wage, and getting less money

:17:18.:17:22.

from local authorities? Yes, those things, companies like Four

:17:23.:17:27.

Seasons, the biggest provider in the UK, has been saying it is no longer

:17:28.:17:36.

profitable to provide social care. It has become difficult. Sajid

:17:37.:17:44.

Javid, the Business Secretary, one of the unprotected departments, how

:17:45.:17:47.

much of an attack on his department will there be?

:17:48.:17:52.

If you've just joined us on BBC2 and the BBC News Channel,

:17:53.:17:55.

you're watching our coverage of the Spending Review and Autumn

:17:56.:17:58.

Let's join Jane Hill now, who's outside the House of Commons.

:17:59.:18:04.

Good morning, thank you very much. Let's get the thoughts of two of the

:18:05.:18:12.

new intake of MPs. With us in a blustery House of Commons, Oliver

:18:13.:18:15.

Dowden for the Conservatives and Rebecca longline for Labour. It is a

:18:16.:18:23.

Spending Review, are we going to be looking at headlines about cats? Are

:18:24.:18:26.

those the headlines that George Osborne is comfortable with? The

:18:27.:18:29.

headlines he will be comfortable Osborne is comfortable with? The

:18:30.:18:35.

with, remember we are still in a situation where the Government is

:18:36.:18:36.

spending far more situation where the Government is

:18:37.:18:40.

That means we are borrowing, and every pound of that is

:18:41.:18:41.

future generations. We are determined to get that under

:18:42.:18:45.

control, run a surplus by the determined to get that under

:18:46.:18:48.

the parliament so that when the next crisis hits, we are spending less

:18:49.:18:53.

than we earn and we are in a better position to deal with that. I think

:18:54.:18:57.

that will be the central thrust. We know that is the thrust, but there

:18:58.:19:00.

are plenty of economists, including the very respected IFS, who say that

:19:01.:19:04.

the Chancellor has locked himself into a corner, and given the date,

:19:05.:19:10.

he has boxed himself in? It's important we have a date, by 2019,

:19:11.:19:15.

when we aim to run the surplus, the economy, hopefully, will have been

:19:16.:19:20.

growing for ten years. If the economy has been growing for ten

:19:21.:19:22.

years and we can't grow a surplus, how would we be able to cope when

:19:23.:19:27.

the economy, inevitably, falls into another recession? We don't believe

:19:28.:19:32.

boom and bust has been abolished. So it is just our custody, that has to

:19:33.:19:37.

be cuts for those reasons? I agree with Oliver on the fact that we need

:19:38.:19:40.

to reduce the deficit, but it needs to be done in a long term,

:19:41.:19:46.

sustainable way. He has missed his financial targets time and again. He

:19:47.:19:50.

referred the IFS making comments about it. They have stated in order

:19:51.:19:54.

to meet its targets this time, he has to make cuts of an unprecedented

:19:55.:19:58.

scale. The cuts are no doubt going to fall on areas of key economic

:19:59.:20:04.

growth, such as education, skills, business investment. We need to

:20:05.:20:08.

start planning the infrastructure, investment, manufacturing strategy.

:20:09.:20:12.

I doubt we will have any of that from the Chancellor today. Our

:20:13.:20:16.

business editor was just saying that share prices are up in

:20:17.:20:19.

house-building companies, if we get lots of positive news about

:20:20.:20:23.

house-building, is that going to be the one positive that even your

:20:24.:20:26.

party would agree with, the desperate need for housing? I think

:20:27.:20:32.

that the Chancellor is definitely a shrewd political operator, he will

:20:33.:20:35.

offer some sweeteners to lessen the blow. In terms of house-building,

:20:36.:20:40.

the devil is always in the detail. I welcome the pledge to build 400,000

:20:41.:20:44.

more houses. We want to see where those houses are going to be and if

:20:45.:20:48.

they are going to be put in the social rented sector. A quick

:20:49.:20:51.

thought about a more political side to it, this is about George

:20:52.:20:56.

Osborne's personal ambitions, he's got to shake things so that the pain

:20:57.:20:59.

comes soon, so by the time he has his eyes on a even bigger job, the

:21:00.:21:09.

bulk of the cuts have gone? I think his ambition is on turning his

:21:10.:21:12.

country around. It is interesting what Rebecca was saying about

:21:13.:21:15.

investment. One of the decisions he has taken is to protect things like

:21:16.:21:19.

investment in schools, so it is maintained every year, per pupil. On

:21:20.:21:23.

housing, the massive investment in housing to make sure young people

:21:24.:21:26.

get on the housing ladder. The Chancellor wants to make sure that

:21:27.:21:29.

everybody gets the best start in life, investment in schools, housing

:21:30.:21:34.

in young people or for old people, so when they have worked hard all

:21:35.:21:37.

their lives, they get dignity and security in retirement, which is why

:21:38.:21:41.

there has been a big increase in the state pension. That is where his

:21:42.:21:44.

efforts are focused. We must leave it there, thank you very much. Much

:21:45.:21:49.

more from the once we have heard from the Chancellor.

:21:50.:21:53.

George Osborne's going to be talking a lot

:21:54.:21:55.

We'll hear a lot about his Northern Powerhouse and, now,

:21:56.:22:00.

At the heart of that is the city of Birmingham.

:22:01.:22:06.

Jo Coburn has left her virtual Treasury courtyard and is already

:22:07.:22:09.

Who needs HS2 when you have the magic of television?

:22:10.:22:21.

Yes, I am at Grand Central. Not New York, but the shiny new shopping

:22:22.:22:31.

centre in Birmingham. I'm here to talk about the Autumn Statement and

:22:32.:22:36.

George Osborne's five-year spending plan. First to talk to us, a

:22:37.:22:43.

representative from Unison and from the Taxpayers' Alliance. The

:22:44.:22:46.

announcement that extra cash to the NHS would be front loaded, welcome

:22:47.:22:52.

news? Any extra money is to be welcomed, but it is too little, too

:22:53.:22:58.

late. The real issue is the chronic underfunding of social care. It

:22:59.:23:01.

means elderly patients cannot be discharged quickly enough back into

:23:02.:23:03.

their homes, which means they are taking up beds and we are definitely

:23:04.:23:08.

going to end up with a real crisis in A this winter. There will be a

:23:09.:23:12.

lot of focus on savings and cuts that George Osborne has pledged to

:23:13.:23:16.

make in the Spending Review and over the course of the parliament. Does

:23:17.:23:19.

he really want to be known as the Chancellor of austerity? He ought to

:23:20.:23:23.

be known as the Chancellor that balances the nation 's books. If

:23:24.:23:27.

he's to do that, he has to make savings. This year, the Government

:23:28.:23:34.

is spending ?70 billion more than it raised in revenue. That means

:23:35.:23:36.

borrowing and the national debt is going up and we are paying more debt

:23:37.:23:39.

interest payments and we are spending on defending the nation,

:23:40.:23:44.

the defence Budget. That is unacceptable. He needs to balance

:23:45.:23:47.

the books, get the nation living within its means to ensure future

:23:48.:23:51.

prosperity. Lets get a little bit more about growing the economy.

:23:52.:23:57.

Let's talk to somebody from the Greater Birmingham Chamber Of

:23:58.:24:01.

Commerce. We were talking about austerity against growth. What is

:24:02.:24:06.

more important to businesses? Got to be a mix. We recognise that the UK

:24:07.:24:11.

deficit is out of control, the Government spending more than the

:24:12.:24:13.

defence Budget servicing the interest on the debt. It really does

:24:14.:24:20.

need to be put in line, but it can't be at the expense of facilitating

:24:21.:24:23.

business growth. That is what we are looking for today, how the

:24:24.:24:25.

Chancellor was going to help businesses, which helps grow jobs

:24:26.:24:29.

and, in turn, helps increase the tax receipts to get the deficit down.

:24:30.:24:33.

What particularly would you like to see him do? We would like some

:24:34.:24:37.

clarity on a number of points, the apprenticeship levy, how it is going

:24:38.:24:41.

to work. Businesses are really keen to boost the skills and

:24:42.:24:45.

employability of youngsters in the region, but we don't know how the

:24:46.:24:48.

funding is going to work. Clarity would be fantastic. We would like to

:24:49.:24:51.

see further announcements on business rates. The Chancellor was

:24:52.:24:57.

going to devolve spending on that, but we need reform and more

:24:58.:25:00.

certainty on whether there will be small business rates relief into

:25:01.:25:03.

next year. Henrietta, thank you. One of the things that will be most

:25:04.:25:06.

important to people as they are starting to think about Christmas

:25:07.:25:12.

shopping is personal finances. Their financial security. So, who better

:25:13.:25:16.

to talk to than our personal finance expert, Annie Shaw? One thing is

:25:17.:25:21.

people were worried about is cuts to tax credits. George Osborne run into

:25:22.:25:24.

problems with those plans, and there are expectations he will soften that

:25:25.:25:28.

in some way. If he does, where else could he get savings? This is the

:25:29.:25:32.

big question. Is he going to go back to the same people and try to get

:25:33.:25:36.

the money out of them in other ways? Things like cuts to housing benefit,

:25:37.:25:41.

that would be affected by cuts to their tax credits. Is he going to go

:25:42.:25:48.

around the periphery? I think I would be slightly worried about

:25:49.:25:56.

these pensions... Pension scene. He said he won't do any major pension

:25:57.:25:59.

reforms until after the Budget, but I think there could be some measures

:26:00.:26:03.

stopping the buy now while stocks last, people doing last-minute

:26:04.:26:07.

avoidance things like stuffing pensions now. I would watch out for

:26:08.:26:15.

tinkering with pension issues. If you have any questions to put to our

:26:16.:26:19.

guests saw any stories, if you are in Birmingham, you can e-mail us,

:26:20.:26:30.

tweet us or you can send us a text message. It's too much for me to

:26:31.:26:38.

remember without my Hundi -- handy iPad.

:26:39.:26:40.

And you can also take advantage the BBC's range of expert analysis

:26:41.:26:44.

and all the latest developments on the BBC website.

:26:45.:26:53.

It's coming up midday here at Westminster -

:26:54.:26:55.

very soon we'll go over to the House of Commons

:26:56.:26:57.

and that will be followed by the Chancellor's statement.

:26:58.:27:11.

First, let's look at some of the measures that have been

:27:12.:27:14.

already announced, and others we're expecting to hear today.

:27:15.:27:20.

The biggest was the announcement earlier this week, we were told the

:27:21.:27:27.

NHS in England, equivalent spending will be for Scotland, Wales and

:27:28.:27:32.

Northern Ireland, it needs to get an extra ?4 billion above inflation

:27:33.:27:36.

next year, part of the frontloading that the NHS has been asking for to

:27:37.:27:39.

get the money in now as it rises towards an extra ?8 billion towards

:27:40.:27:43.

the end of the parliament. Schools and foreign aid are protected

:27:44.:27:49.

departments, so no cuts expected in these areas. Defence was not

:27:50.:27:53.

protected, it is now, indeed, it got an extra ?12 billion earlier this

:27:54.:27:57.

week to spend on defence equipment over the next five years, taking the

:27:58.:28:02.

total on defence equipment to 178 billion. Locked in, like foreign

:28:03.:28:11.

aid, as a percentage of GDP, 2%. Tax credits, the Chancellor came out

:28:12.:28:14.

with a number of cuts in the July Budget. It is only November, but

:28:15.:28:18.

he's already having to roll back on that. It will cost him money and we

:28:19.:28:22.

will look to see how he does it. We expect tax credit changes to be

:28:23.:28:28.

eased. The latest thing to be leaked by the Treasury leak machine is the

:28:29.:28:32.

idea that the Government will encourage, preside over the building

:28:33.:28:38.

of 400,000 affordable homes at a cost of ?7 billion. There

:28:39.:28:40.

of 400,000 affordable homes at a an alert on these, a warning, the

:28:41.:28:45.

Government often set is kind of targets, whether they meet them is

:28:46.:28:49.

another matter. Because central government spending and local

:28:50.:28:51.

government spending has been squeezed, the Chancellor will allow

:28:52.:28:56.

local authorities to raise council tax by 2%, provided the money, and

:28:57.:29:02.

only if the money, goes to social care, because of the move from NHS

:29:03.:29:08.

hospitals and so on into care in the community. Whether that will be

:29:09.:29:11.

enough is another matter. Whether those areas that need social care

:29:12.:29:14.

most, it tends to be the poorer areas, we'll get that much from a 2%

:29:15.:29:18.

rise in council tax, those are all things we will be keeping an eye on

:29:19.:29:26.

and discussing as this three and a half hours goes on. Laura, we have a

:29:27.:29:30.

pretty fair idea what he's going to do, they have helpfully leaked a lot

:29:31.:29:31.

of it! do, they have helpfully leaked a lot

:29:32.:29:38.

is the rabbit? I'm not do, they have helpfully leaked a lot

:29:39.:29:40.

going to be a rabid today. There will be surprises, I'm

:29:41.:29:48.

understanding, but I don't think, or I have

:29:49.:29:58.

understanding, but I don't think, or be led back to their

:29:59.:29:58.

constituencies... Which he has been be led back to their

:29:59.:30:04.

famous for? Indeed he has, I don't think we will see it. There will be

:30:05.:30:07.

surprises, cunning wheezes, but I'm not too sure about that. May be like

:30:08.:30:13.

a little mouse, rather than a rabbit? He has an astute political

:30:14.:30:22.

as well as economic brain. On this occasion, the judgments are similar

:30:23.:30:27.

for him personally. We are still relatively early in Parliament.

:30:28.:30:34.

Personally, he has had a bit of a popularity dip as a result of the

:30:35.:30:40.

tax credit debacle. I think he will be thinking what I need to do is to

:30:41.:30:43.

make some quite tough decisions, because the last thing he wants is

:30:44.:30:47.

for things to go wrong when he is running for the Tory party

:30:48.:30:49.

leadership. Everyone in this House and everyone

:30:50.:31:06.

watching at home know from Yes, Prime Minister, the central role

:31:07.:31:11.

that Bernard plays in the life of the Prime Minister and Number Ten

:31:12.:31:16.

Downing St. This morning, my Bernard, my principal private sector

:31:17.:31:21.

we died of cancer. Chris Martin was only 42. He was one of the most

:31:22.:31:26.

loyal, hard-working, dedicated public servants I have come across.

:31:27.:31:31.

I have no idea what his politics were but he would go to the ends of

:31:32.:31:35.

the Earth and back again, for his Prime Minister, for ten and the team

:31:36.:31:41.

we work for. Today, we are leaving the seat where he used to sit empty,

:31:42.:31:45.

as a mark of respect to him. We think of his wife, Zoe, his family,

:31:46.:31:50.

the wider Number Ten family, because it is like a family, and we feel

:31:51.:31:54.

like we have lost someone between a father and brother to all of us, and

:31:55.:31:58.

whatever happens, we will never forget him.

:31:59.:32:01.

Mr Speaker, this morning I had meetings with ministerial colleagues

:32:02.:32:28.

and others, and in addition to the duties of the House, I will have

:32:29.:32:30.

further meetings today. Can I firstly echoed the prime Mr's

:32:31.:32:32.

sentiments regarding the passing of Chris Martin. I'm sure all members

:32:33.:32:34.

will have heartfelt thoughts and prayers today and we would be

:32:35.:32:37.

grateful if they could be conveyed to the family at this time. The

:32:38.:32:42.

Prime Minister is a champion of family life, so could he confirm

:32:43.:32:48.

that the announcements he will make today will pass the family test for

:32:49.:32:58.

vulnerable people? Can I thank the honourable member for her words.

:32:59.:33:03.

Families are the best welfare state we have. They teach us the right

:33:04.:33:07.

Phileas, they bring up our children and they care for us when they are

:33:08.:33:15.

sick and unwell. We will boost the national Living Wage, delivered tax

:33:16.:33:21.

cuts and crucially help with childcare. All of these policies

:33:22.:33:25.

should pass the test of helping Britain's families.

:33:26.:33:31.

Jeremy Corbyn. Thank you, Mr Speaker. On the half of the

:33:32.:33:36.

opposition, could I also express my condolences regarding Chris Martin.

:33:37.:33:42.

The Prime Minister told me how it will he was on Remembrance Sunday

:33:43.:33:46.

and I'm glad he could visit him at that time. Many members of

:33:47.:33:50.

government appreciates the work he did in the very highest and best

:33:51.:33:54.

traditions in the civil service of this country. If our condolences

:33:55.:33:56.

could be passed on, I think that would be very helpful.

:33:57.:34:01.

This week, 55 Labour councils has made a commitment for their areas to

:34:02.:34:06.

be running entirely on green energy by 2050. With the Paris climate

:34:07.:34:10.

talks just days away, with the Prime Minister commend those councils? I

:34:11.:34:21.

certainly commend councils for wanting to promote green energy and

:34:22.:34:27.

we have had green tariffs and other measures to help, particularly solar

:34:28.:34:31.

power and also wind power. We will be taking part in the Paris climate

:34:32.:34:35.

talks because it is absolutely vital to get that global deal, but we have

:34:36.:34:40.

to make sure we take action locally as well as globally. I would make

:34:41.:34:43.

the point that if you compare the last Parliament, to the previous

:34:44.:34:49.

parliament, we saw something like a trebling of the installation of

:34:50.:34:54.

renewable electricity. The commitment of those Labour

:34:55.:34:58.

councils is a bit of a contrast to the Prime Minister's performance. He

:34:59.:35:03.

used to tell us that his was the greenest government ever. Does he

:35:04.:35:07.

remember those days? Does he agree with the Energy Secretary that

:35:08.:35:11.

Britain is likely to miss its target of getting 15% of our energy from

:35:12.:35:17.

renewables by 2020? First of all, I believe that the

:35:18.:35:20.

last government does rightly claim that record, the world's first green

:35:21.:35:26.

investment bank, pioneered in Britain. The trebling of renewable

:35:27.:35:31.

energy, a meeting of all our climate change targets contributing to an EU

:35:32.:35:36.

deal that means we go to the climate change conference in Paris, with a

:35:37.:35:40.

very strong European record and the ability to say to other countries

:35:41.:35:44.

that they should step up to the plate. It was in the last

:35:45.:35:48.

Parliament, we spent record sums helping developing countries to go

:35:49.:35:51.

green, and in the next five years, we will be spending $9 billion on

:35:52.:35:56.

helping other countries, which will be crucial to building the Paris

:35:57.:36:00.

deal next week. The problem with the prime and is

:36:01.:36:05.

the's answer is, the gap between Britain's 2020 target and our

:36:06.:36:09.

current share of renewable energy, is the biggest in the European

:36:10.:36:12.

Union. Some of his decisions he has made recently, such as cutting

:36:13.:36:17.

support for solar panels on home and industrial projects, scrapping the

:36:18.:36:21.

green deal, cutting support for wind turbines, putting a new tax of

:36:22.:36:27.

renewable energy, increasing subsidy for diesel generators, is it any

:36:28.:36:30.

wonder that the chief scientists of the United Nations environment

:36:31.:36:33.

programme has criticised Britain for going backwards on renewable energy?

:36:34.:36:39.

The facts paint a different picture. As I said, trebling of wind power in

:36:40.:36:44.

the last Parliament. That is an enormous investment. Also, he makes

:36:45.:36:48.

the point about solar panels. Of course, when the cost of

:36:49.:36:52.

manufacturing solar panels plummets as it has, it is right to reduce the

:36:53.:36:56.

subsidy. If we don't reduce the subsidy, we ask people to pay higher

:36:57.:37:01.

energy bills, something I seem to remember the Labour Party in the

:37:02.:37:05.

last Parliament making a lot of. I think if you look for the

:37:06.:37:09.

secretaries climate change's speech, you can make the right

:37:10.:37:13.

balance between affordable energy and making sure we meet our green

:37:14.:37:15.

targets. That is what we are committed to. In addition to that,

:37:16.:37:20.

building the first new clip power station for decades in our country,

:37:21.:37:25.

something the Labour Party talked about a lot in government but we are

:37:26.:37:29.

putting into action now we are in government -- first new nuclear

:37:30.:37:33.

power station. In the past weeks, thousands have

:37:34.:37:37.

been lost in solar companies in Britain as they have gone bust. I

:37:38.:37:42.

have a question from some apprentices solar fitters. They say

:37:43.:37:49.

cutting feed in tariffs means you are stopping solar projects that

:37:50.:37:53.

they need to help our environment give us jobs. They asked the Prime

:37:54.:37:58.

Minister this: Wide you want to throw all this away? We are doubling

:37:59.:38:03.

investment in renewable energy in this Parliament and as for solar

:38:04.:38:07.

panels, I think I am right in saying, in the last Parliament, over

:38:08.:38:11.

a million homes were fitted with solar panels. It is right we go on

:38:12.:38:16.

supporting that industry, but we should do it recognising that the

:38:17.:38:21.

cost of manufacturing solar panels has plummeted, and so therefore the

:38:22.:38:24.

subsidy should be what is necessary to deliver solar power, not as what

:38:25.:38:28.

is necessary to pump up the bills of hard-working families.

:38:29.:38:34.

That is not much help to those who are losing their jobs in the solar

:38:35.:38:38.

industry at the present time. However, I would like to ask the

:38:39.:38:43.

Prime Minister something else. Today is the International Day for the

:38:44.:38:46.

elimination of violence against women. On average, two women a week

:38:47.:38:52.

are killed by a current or former partner, and domestic violence

:38:53.:38:55.

accounts for a quarter of all violent crime. Can the Prime

:38:56.:38:58.

Minister explain why one third of those referred to women's refuges in

:38:59.:39:02.

England are now being turned away? We have put more money into refuges

:39:03.:39:07.

and the Chancellor will have something to say about funding

:39:08.:39:15.

women's charities in his Autumn Statement today. The fact is, when

:39:16.:39:18.

it comes to rape crisis centres that we protect or domestic violence

:39:19.:39:22.

centres that we fund, this government has a good record on

:39:23.:39:25.

helping women and making sure that the crime of domestic violence is

:39:26.:39:30.

properly investigated by the police and prosecuted in our courts. 20, Mr

:39:31.:39:41.

Speaker. The late Denise Marshall who was chair of a domestic violence

:39:42.:39:46.

charity put this throw well when she said, if you are a woman who has

:39:47.:39:49.

experienced some form of violence, I believe you have the right to the

:39:50.:39:55.

very best service and the community owes you a right to recover. In

:39:56.:40:00.

2012, the Prime Minister's government signed the Istanbul

:40:01.:40:04.

convention on preventing and combating violence against women.

:40:05.:40:07.

This would make women's support services statutory and would have

:40:08.:40:13.

stopped the closure of Eve's. Will the primers to tell the House when

:40:14.:40:16.

he will ratify the Istanbul convention. We are going further

:40:17.:40:23.

than that. We will be putting more money into women's charities,

:40:24.:40:28.

including charities which fight domestic violence, which fight rape

:40:29.:40:31.

and make sure we cut out these appalling crimes in our country. In

:40:32.:40:36.

addition to that, we have also done more than any previous government,

:40:37.:40:40.

in terms of preventing forced marriage and preventing the horrors

:40:41.:40:44.

of FGM which do not just happen in Nigeria and countries in North

:40:45.:40:47.

Africa, they happen here in our country as well. I don't think any

:40:48.:40:54.

government before this one has a stronger record on those grounds.

:40:55.:40:59.

Thank you, Mr Speaker. I have many constituents and Lewis who come to

:41:00.:41:02.

my surgery desperate to end their own home. Many of them are on a low

:41:03.:41:07.

income and they recognise that a monthly mortgage payment would be

:41:08.:41:12.

significantly lower than that current monthly rental payments.

:41:13.:41:15.

Does my right honourable friend share in the excitement of any of my

:41:16.:41:19.

constituents, towards the starter homes initiative contained in the

:41:20.:41:23.

housing bill which will see affordable housing lower than the

:41:24.:41:26.

monthly outgoings of many people in this country?

:41:27.:41:32.

I do share my honourable friend's enthusiasm for that. Clearly there

:41:33.:41:36.

are lots of individual interventions like help by which has basically put

:41:37.:41:41.

buying homes in the of many more people by reducing the deposits they

:41:42.:41:44.

need. We can help people to save which we do with our Help to Buy ISA

:41:45.:41:50.

will stop our biggest contribution we can make is by building more

:41:51.:41:55.

housing which we will be doing during this Parliament, and

:41:56.:41:57.

crucially by maintaining during this Parliament, and

:41:58.:42:01.

secure and stable economy with low interest rates so people can afford

:42:02.:42:06.

to take out a mortgage. May I begin by associating the

:42:07.:42:10.

Scottish National Party with the condolences of the Prime Minister.

:42:11.:42:11.

Having spoken to him last condolences of the Prime Minister.

:42:12.:42:15.

aware of how much a personal loss it is to him and also to

:42:16.:42:19.

aware of how much a personal loss it Martin's family and friends. The

:42:20.:42:21.

fatal dangers of Martin's family and friends. The

:42:22.:42:24.

consequences and escalation in Syria, are clear for everybody to

:42:25.:42:29.

consequences and escalation in see in these days. It is agreed that

:42:30.:42:32.

an air campaign alone will not lead to the ultimate defeat of Daesh on

:42:33.:42:36.

the ground and ground forces will be needed. How many troops and from

:42:37.:42:39.

which countries does the Prime Minister having his plan for Syria?

:42:40.:42:44.

Firstly, can I thank the right honourable gentleman for his

:42:45.:42:50.

comments on Chris Martin who I know helped all members of this House

:42:51.:42:53.

when they had enquiries. Let me deal with the issue of Syria.

:42:54.:42:58.

I am not for one moment arguing that action from the air alone can solve

:42:59.:43:03.

the very serious problem we have with Isil. Clearly we need a

:43:04.:43:07.

political settlement in Syria and government in Syria which can act on

:43:08.:43:12.

pensively with us against Isil. The question for the House that we need

:43:13.:43:17.

to address tomorrow and in the to come, can we afford to wait for that

:43:18.:43:21.

political settlement before we act? My view is, we cannot wait for that

:43:22.:43:26.

political settlement. Should we should work as hard as we can for it

:43:27.:43:29.

but we should be acting now with our allies, because it is about keeping

:43:30.:43:34.

our own people and our own country safe. He asked specifically about

:43:35.:43:39.

ground troops. There are troops in Syria. The three Syrian army and the

:43:40.:43:41.

Kurdish forces that would work Syria. The three Syrian army and the

:43:42.:43:45.

us to help eliminate Isil, but the full range of ground troops will

:43:46.:43:55.

only be a valuable when there is a political settlement in Syria. The

:43:56.:43:57.

question is simple, can we wait for that political settlement before

:43:58.:43:59.

taking action to keep our people safe at home, and my answer is, we

:44:00.:44:02.

cannot afford to wait. The United Kingdom spent 13 times more bombing

:44:03.:44:07.

Libya then investing in its reconstruction after the overthrow

:44:08.:44:11.

of the Gaddafi regime. We construct in Syria will be essential to

:44:12.:44:16.

of the Gaddafi regime. We construct restore stability and allow refugees

:44:17.:44:18.

to return. How much does the Prime Minister estimate this will cost and

:44:19.:44:23.

how much has he allocated from the UK?

:44:24.:44:25.

We have one of the largest development budgets anywhere in the

:44:26.:44:29.

world as is the support that we have given to Syrian refugees which

:44:30.:44:32.

stands at one of the largest development budgets anywhere in the

:44:33.:44:34.

world as is the support that we have given to Syrian refugees which

:44:35.:44:36.

stands at ?1.2 billion in demonstrates. Part of our plan will

:44:37.:44:39.

be to help fund the reconstruction and rebuilding of Syria alongside

:44:40.:44:44.

the political deal that we believe is necessary. I would far rather

:44:45.:44:48.

frankly spend the money reconstructing Syria, than in

:44:49.:44:52.

supporting people kept away from their homes, kept away from their

:44:53.:44:59.

country, who do you want to return. I know that my right honourable

:45:00.:45:03.

friend was aware of the growing cause of concern surrounding the

:45:04.:45:08.

conviction of Alexander Blackman, the former Royal Marine

:45:09.:45:15.

non-commissioned officer who shot an insurgent in 2011. If there is

:45:16.:45:19.

indeed new evidence and many feel that has been a miscarriage of

:45:20.:45:23.

justice, would my right honourable friend agree with me that it is

:45:24.:45:27.

right that this matter should be looked into again? This is exactly

:45:28.:45:36.

what the Criminal Cases Review Commission is there to look at,

:45:37.:45:39.

where there may have been a miscarriage of justice. We gave the

:45:40.:45:43.

internal report of the Naval services to Sergeant Blackman's

:45:44.:45:46.

legal advisers. There is proper disclosure in this case and the

:45:47.:45:50.

legal team have said they look at the option of applying to the

:45:51.:45:52.

Criminal Cases Review Commission. Let me say while we are on this

:45:53.:45:56.

point that our Royal Marines have a worldwide reputation as one of the

:45:57.:46:01.

world's elite fighting forces. They have made an success, and incredible

:46:02.:46:06.

conservation to our country and we should pay tribute to them. The

:46:07.:46:14.

Government's handle of child sexual abuse inquiries has done little to

:46:15.:46:18.

instil public confidence so far. The Gothard inquiry announced they had

:46:19.:46:23.

accidentally and permanently deleted all of the victim testimony

:46:24.:46:26.

submitted through the website over an 18 day period, without anyone

:46:27.:46:32.

from the inquiry ever reading now. These victims deserve justice, and

:46:33.:46:35.

for their voices to be heard. Can the Prime Minister please tell the

:46:36.:46:39.

House what independent investigation has taken place to establish the

:46:40.:46:44.

cause of the data loss and to establish whether or not there was

:46:45.:46:48.

any criminality behind it? I am sure the whole House will welcome the

:46:49.:46:56.

fact that the Goddard inquiries about running. The best way to get

:46:57.:46:59.

justice for these victims is to make sure we have the full independent

:47:00.:47:05.

inquiry. The specific issue she raises, it is a matter for the

:47:06.:47:09.

inquiry, if there is further details, I will write to her, what

:47:10.:47:12.

matters is that it is up and running. 3000 jobs in Newark were

:47:13.:47:22.

lost and a Labour. This month, we celebrate the 10,000 new job in

:47:23.:47:32.

Newark since 2010. Does the Prime Minister agree that once again

:47:33.:47:35.

Newark leads the way to a strong economy, high employment, higher

:47:36.:47:43.

wages and lower welfare? I'm delighted to hear that Newark has

:47:44.:47:47.

met this landmark and it is worth remembering that these 10,000

:47:48.:47:50.

figures, they are 10,000 people, each with a job, with a livelihood,

:47:51.:47:55.

with the chance to support their families. I well remember visiting

:47:56.:47:59.

my honourable friend's constituency. I can't promise to visit as many

:48:00.:48:03.

times in this Parliament as the last, but I do recognise a business

:48:04.:48:12.

that we visited announced the creation of over 200 jobs. I am sure

:48:13.:48:16.

others will follow. Has the Prime Minister ever heard of Alan

:48:17.:48:25.

Cartwright, Stefan Appleton? Teenagers that were stabbed to death

:48:26.:48:28.

on the streets of Islington last year. Vaso was murdered just two

:48:29.:48:39.

days ago. Given the growing culture of drugs, guns and violence in my

:48:40.:48:42.

borough and many others like it, does the Prime Minister really think

:48:43.:48:46.

it is in the interests of my constituents, for their safety and

:48:47.:48:49.

security, to cut the Metropolitan Police? First of all, every life

:48:50.:48:53.

lost in a way that she talks about is a tragedy. Many of these lives

:48:54.:48:57.

have been lost because of drugs, gangs and because of my crime.

:48:58.:49:01.

Overall, knife crime has come down over the last few years, which is

:49:02.:49:08.

welcome. There are still too many people carrying a knife and not

:49:09.:49:11.

recognising that not only is it against the law, it is also an

:49:12.:49:14.

enormous danger to themselves and others. We will continue with the

:49:15.:49:17.

tough approach on knife crime, with the work we're doing to disband and

:49:18.:49:20.

break of gangs and the work to try to deal with the problems of drugs.

:49:21.:49:24.

When it comes to policing, what we have seen in London is an increase

:49:25.:49:28.

in neighbourhood policing. The Metropolitan Police have done a good

:49:29.:49:32.

job at cutting back-office costs and putting police on streets. After

:49:33.:49:41.

many years of neglect under Labour, Cornwall is once again seeing

:49:42.:49:44.

investment in roads, railways, airport and in tourism. But Cornwall

:49:45.:49:50.

is ambitious to diversify its economy and become a centre for the

:49:51.:49:55.

UK aerospace industry. Indeed, Newquay airport is to be the

:49:56.:50:02.

forerunner for the creation of a UK spaceport. Could the Prime Minister

:50:03.:50:05.

provide an update on the decision, and does he agree with me that

:50:06.:50:09.

Newquay would be the perfect place for it? It is good in this

:50:10.:50:13.

Parliament we have such strong voices for Cornwall speaking up for

:50:14.:50:20.

that county and making sure that it makes the resources it needs. I'm a

:50:21.:50:24.

strong supporter of the airport, not just as a user, but also I think it

:50:25.:50:28.

provides the opportunity for a hope of great businesses in Cornwall. We

:50:29.:50:32.

want to become the European hub for space flight, which will attract

:50:33.:50:35.

further investment into the UK and create jobs. There are a number of

:50:36.:50:39.

other airports in the running, I wish them all well and I can tell

:50:40.:50:42.

him we are aiming to launch selection process next year. The

:50:43.:50:50.

Government and I disagree on much of what constitutes progress on gender

:50:51.:50:55.

equality, but I agreed with the Prime Minister when he pledged to

:50:56.:50:59.

change the law to include mothers on marriage certificates. I have heard

:51:00.:51:02.

nothing since. I wondered if the Prime Minister agreed with me that,

:51:03.:51:08.

with the fast approaching birth of my daughter, I would like to be

:51:09.:51:11.

valued as equally in her life as my husband. Will the Prime Minister

:51:12.:51:16.

take this important, symbolic step to ensure that mothers are not

:51:17.:51:22.

written out of history? This is an area where the honourable lady and I

:51:23.:51:27.

agree. My understanding is that the proposals for legislation have gone

:51:28.:51:31.

to the relevant committee in Government and she has made a very

:51:32.:51:34.

articulate case for why that bill should be included in the next

:51:35.:51:42.

session. Will the Prime Minister join with me in commending the

:51:43.:51:46.

French government for facing down terror are continuing with the

:51:47.:51:50.

climate summit in Paris next week, and will acknowledge the important

:51:51.:51:54.

role of legislators such as at the Globe Summit on the fourth and 5th

:51:55.:51:58.

of December, does he agree with me that his personal presence in Paris

:51:59.:52:01.

sends a message out to the world about our continuing commitment to a

:52:02.:52:07.

lasting climate deal? I am grateful for what my honourable friend says.

:52:08.:52:10.

I will certainly be going to Paris to the start of this vital

:52:11.:52:14.

Conference, to set out what Britain and the European Union will be doing

:52:15.:52:17.

to bring about this deal. What we put on the table in terms of climate

:52:18.:52:21.

finance, nearly $9 billion over the next five years, is one of the most

:52:22.:52:24.

generous offers made by any country anywhere in the world. The good news

:52:25.:52:30.

about the Paris Conference is that we are going to see China and

:52:31.:52:34.

America as signatories to a deal. That means that much more of the

:52:35.:52:37.

world's emissions are going to be covered by the deal. What we have to

:52:38.:52:42.

make sure we achieve is to make sure it is a proper deal with proper

:52:43.:52:48.

review clauses, to make sure we keep to 2 degrees. Nobody should be in

:52:49.:52:52.

any doubt that Britain is playing a leading role, and has lead by

:52:53.:52:57.

example and with money. Mr Speaker, there will never be a future where

:52:58.:53:00.

we do not need steel, but the Government is spending millions of

:53:01.:53:06.

pounds to compensate for the use of you... -- loss of UK steel-making.

:53:07.:53:10.

Guy Aston Prime Minister he will send a clear signal that he will do

:53:11.:53:13.

whatever it takes to back a sustainable, cutting-edge UK steel

:53:14.:53:21.

future? We want to see more steel across the world stamped with made

:53:22.:53:25.

in Britain. I completely agree with the honourable lady. We want to

:53:26.:53:29.

support the steel business, which is why we are taking action on

:53:30.:53:34.

procurement. When we look at what we have done through the Royal Navy,

:53:35.:53:39.

what we can do through Railtrack and other organisations, we can back

:53:40.:53:42.

British Steel. We are also going to be exempting users like British

:53:43.:53:49.

Steel from energy usage charges. It does go to the questions asked by

:53:50.:53:57.

the leader of the position. If we endlessly pressure builds for

:53:58.:54:00.

everybody else, it costs more to exempt the high users. Everything we

:54:01.:54:04.

can do to help British Steel, including a very clear

:54:05.:54:06.

infrastructure plan you will be hearing about in a minute, is all to

:54:07.:54:08.

the good. In 2010, unemployment in my

:54:09.:54:22.

constituency stood at 5% of the population. It has now dropped to

:54:23.:54:27.

just 1.6%. I am sure my honourable friend agrees with me, to help those

:54:28.:54:32.

people still unemployed and boost productivity and wages in places

:54:33.:54:36.

like wire forest, we need to offer more opportunities for skills

:54:37.:54:39.

training. Does my right honourable friend agree with that, and what

:54:40.:54:45.

more can the Government offer in order to help places like Wyre

:54:46.:54:51.

Forest? All young people should have a real choice of being able to take

:54:52.:54:57.

on in chilly an apprenticeship, or to be able to go to a university. We

:54:58.:55:01.

don't want everybody left behind. Everybody should have that choice.

:55:02.:55:04.

He is right that unemployment has fallen in his constituency, as

:55:05.:55:11.

around the company. The fact is, Britain, over those five years, has

:55:12.:55:15.

grown as fast as any other G-7 country in terms of economic

:55:16.:55:18.

performance. You can now look back and see that the decisions made in

:55:19.:55:23.

2010, 2011, 2012, difficult decisions, but they laid the

:55:24.:55:25.

platform for decisions, but they laid the

:55:26.:55:31.

growth and jobs. Education in Bradford is facing a funding and

:55:32.:55:37.

school places crisis and we remain at the bottom of the league tables.

:55:38.:55:42.

Bradford's children cannot be failed any longer. Will the Prime Minister

:55:43.:55:47.

support my call for a Bradford Challenge, based on the highly

:55:48.:55:52.

successful London Challenge? Will he stop the dangerous changes to the

:55:53.:55:57.

schools funding formula that will drag the children Bradford further

:55:58.:56:02.

into the land of inequality, despair and neglect? We made commitments at

:56:03.:56:10.

the last election about funding our schools, funding school places. We

:56:11.:56:15.

will be keeping all of those commitments, not just the revenue

:56:16.:56:19.

that we provide for schools, where we will not be reducing the amount

:56:20.:56:21.

per pupil, but also spending much we will not be reducing the amount

:56:22.:56:25.

more on new school places in this Parliament than in the Parliament

:56:26.:56:27.

that preceded Parliament than in the Parliament

:56:28.:56:31.

Minister. We are also helping with building new academy chains and free

:56:32.:56:35.

schools, they are available for his constituency, as for others. Does my

:56:36.:56:40.

right honourable friend the Prime Minister agree with me that the

:56:41.:56:44.

turmoil in northern Iraq and Syria gives opportunities to resolve

:56:45.:56:47.

long-standing international disputes, not least with Russia?

:56:48.:56:51.

Does he agree with me that the attack on the Russian bomber,

:56:52.:56:54.

something that never happened in the whole of the duration of the Cold

:56:55.:56:59.

War, was disproportionate, and we need to make sure absolutely that we

:57:00.:57:03.

do not get into conflict with Russia over Syria? What I would say to my

:57:04.:57:09.

honourable friend is, look, I think there are opportunities for sensible

:57:10.:57:12.

discussions with Russia about the agenda in Syria, which is about a

:57:13.:57:17.

political transition, so there can be a Government that represents all

:57:18.:57:21.

of the people of Syria. I have that conversation with President Putin

:57:22.:57:26.

last week. He mentions the issue of the downed Russian jet. The facts on

:57:27.:57:29.

this not yet clear. I think we should respect Turkey's right to

:57:30.:57:35.

respect its airspace, as we defend our own. I think we have to get to

:57:36.:57:42.

the bottom of what happened. The Prime Minister very often tells us

:57:43.:57:46.

that the first duty of any government is to protect the

:57:47.:57:49.

public. Will he give an undertaking to restore the cuts to the police

:57:50.:57:54.

and emergency services to ensure that the public in this country are

:57:55.:57:59.

protected? I think this Government has a good record of protecting the

:58:00.:58:03.

public, not least because we protected counterterrorism policing

:58:04.:58:07.

and we had a funding situation with the police that enabled them to help

:58:08.:58:11.

in a cut of crime of 31% since I became Prime Minister.

:58:12.:58:17.

Thank you, Mr Speaker. John Wharton, a good driver, destroyed the lives

:58:18.:58:25.

of Amy Baxter and Hayley Jones, with Miss Baxter being so severely

:58:26.:58:28.

injured she is paralysed from the neck down and in hospital 16 months

:58:29.:58:35.

later. He was sentenced to just a 3 month driving ban, a fine and a 20

:58:36.:58:40.

week tag. Weeks later he successfully applied to Bolton

:58:41.:58:43.

Magistrates' Court for his type to be removed so he could go on holiday

:58:44.:58:47.

to a stag party. Would my right honourable friend looked to issue

:58:48.:58:51.

guidance to magistrates that a tag, when part of a sentence, should

:58:52.:58:55.

never be removed to allow criminals to go on holiday? I think my

:58:56.:58:58.

honourable friend makes a very powerful point and I will look at

:58:59.:59:02.

this very carefully. Let me first of all express my sympathy to the

:59:03.:59:08.

victim and her family, in what is, undoubtedly, a very distressing

:59:09.:59:12.

case. It is always very difficult to comment on specific cases, I was not

:59:13.:59:16.

sitting in the courthouse and here all the arguments that were made,

:59:17.:59:20.

but the point he makes seems to be very sensible, a punishment as a

:59:21.:59:26.

punishment and he's making a case. The Middle East is increasingly

:59:27.:59:30.

resembling the central Europe of a century ago, minorities, linguistic,

:59:31.:59:35.

religious or sexual, find themselves under more pressure than ever. I, my

:59:36.:59:39.

constituents and the Scottish National Party understand the threat

:59:40.:59:46.

posed to these groups by Daesh. How is the Prime Minister planning to

:59:47.:59:48.

prosecute a bombing campaign that does not alter the demographic map

:59:49.:59:58.

of the Middle East, preventing Ross Hill becoming the new Budapest? We

:59:59.:00:03.

will set up the items tomorrow, but there is a clear and present danger

:00:04.:00:10.

to the United Kingdom of Isil, based in Syria, planning attacks against

:00:11.:00:13.

our country today. We don't live in a perfect world and we can't deliver

:00:14.:00:18.

a perfect strategy, but we can deliver a clear, long-term strategy

:00:19.:00:22.

that can work. He talks about the lessons we learned from the last

:00:23.:00:25.

century. One of the lessons I say we should learn from the last century

:00:26.:00:28.

is when your country is under threat, when you face aggression

:00:29.:00:34.

against your country, you cannot endlessly sit around and dream about

:00:35.:00:37.

a perfect world, you need to act in the world we are in. Will my right

:00:38.:00:54.

honourable friend join me in congratulating all the staff at a

:00:55.:01:00.

local birthing unit. They scored 100% on their friends and family

:01:01.:01:05.

survey for satisfaction and care. The commitment of midwives is only

:01:06.:01:10.

matched by the Conservatives' commitment to the NHS. With two

:01:11.:01:15.

elections in a row, we have promised and delivered greater investment in

:01:16.:01:19.

our National Health Service than Labour.

:01:20.:01:23.

Can I say to my honourable friend, she is absolutely right to highlight

:01:24.:01:28.

the friends and family test. It is a simple way of measuring whether our

:01:29.:01:31.

hospitals are delivering great care. As well as good schemes to make sure

:01:32.:01:35.

you would want your friends and family treated in a hospital, we

:01:36.:01:39.

need to provide the resources for that hospital and that is what we

:01:40.:01:42.

are doing with the spending figures announced today. Crucially on

:01:43.:01:46.

childbirth, it is not often I stand here" the Daily Mirror, but it is

:01:47.:01:50.

worth looking at what they are raising about the importance of a

:01:51.:02:03.

seven-day NHS and making sure we have high standards across our NHS

:02:04.:02:06.

every day of the week. As well as the extra money this government is

:02:07.:02:08.

putting into the NHS, a seven-day NHS would also mean a much stronger

:02:09.:02:10.

NHS. The big lottery fund supports local

:02:11.:02:13.

projects in my constituency, including the Gate, a small children

:02:14.:02:22.

was a playground and a women's project which plays a vital role in

:02:23.:02:26.

supporting the vulnerable people this Parliament has left behind.

:02:27.:02:31.

Would-be Prime Minister join me in congratulating these local projects

:02:32.:02:33.

on their work, and reassure the House that this government will

:02:34.:02:39.

protect the lottery funding earmarked for charity and community

:02:40.:02:44.

projects? We will certainly protect the big

:02:45.:02:49.

lottery fund. It does an excellent job. One of the things the United

:02:50.:02:55.

Kingdom brings is a bigger National Lottery, a bigger pot which can

:02:56.:02:57.

support Scottish charities and let me just make this point, following

:02:58.:03:06.

what has happened to the oil price, if there was a Scottish November

:03:07.:03:10.

Autumn Statement, it would be a statement that was about cuts, cuts,

:03:11.:03:15.

cuts, taxes, taxes, taxes and no relief from the National Lottery.

:03:16.:03:32.

Order. Order. Mr Brendan McNeill. Mr Angus Brendan McNeill. Calm

:03:33.:03:37.

yourself. You may be a cheeky chappie, but you also an

:03:38.:03:42.

exceptionally noisy one. Statement, the Chancellor of the Exchequer.

:03:43.:03:48.

Mr Speaker. This Spending Review delivers on the commitment we made

:03:49.:03:57.

to the British people that we would put security first. To protect our

:03:58.:04:02.

economic security by taking the difficult decisions to live within

:04:03.:04:08.

our means, and bring down our debt. And to protect our national security

:04:09.:04:13.

by defending our country's interests abroad and keeping our citizens safe

:04:14.:04:18.

at home. Economic and national security provide the foundations for

:04:19.:04:23.

everything we want to support. Opportunity for all. The aspirations

:04:24.:04:28.

of families, the strong country we want to build. Five years ago, when

:04:29.:04:32.

I presented our first Spending Review, our economy was in crisis,

:04:33.:04:37.

and as their letter said, there was no money left. We were borrowing ?1

:04:38.:04:44.

in every forward is spent, and our job then was to rescue Britain.

:04:45.:04:50.

Today, as we present this Spending Review, our job is to rebuild

:04:51.:04:56.

Britain, build our finances, build our defences, build our society, so

:04:57.:05:01.

that Britain becomes the most prosperous and secure of all the

:05:02.:05:05.

major nations of the world. And so we leave to the next generation a

:05:06.:05:09.

stronger country than the one we inherited. That is what this

:05:10.:05:12.

government was elected to do, and today we set out the plan to deliver

:05:13.:05:18.

on that commitment. Mr Speaker, we have committed to running a

:05:19.:05:23.

surplus. Today, I can confirm that the four-year public spending plans

:05:24.:05:27.

I have set out are forecast to deliver that surplus, so we don't

:05:28.:05:31.

borrow forever, and are ready for whatever storms lie ahead. We

:05:32.:05:38.

promise to bring our debts down. Today, the forecast I present shows

:05:39.:05:42.

that after the longest period of rising debt in our modern history,

:05:43.:05:47.

this year, our debt will fall and keep falling in every year that

:05:48.:05:56.

follows. We promised to move Britain from being a high welfare low-wage

:05:57.:06:01.

economy, to being a lower welfare are higher wage economy. Today I can

:06:02.:06:05.

tell the House that the ?12 billion of welfare savings we committed to

:06:06.:06:10.

at the election will be delivered in full, and delivered in a way that

:06:11.:06:19.

helps families as we make the transition to our national Living

:06:20.:06:21.

Wage. We promised that we would strengthen our national defences,

:06:22.:06:25.

take the fight to our nation's enemies, and protect our country's

:06:26.:06:30.

influence abroad. Today, this Spending Review delivers the

:06:31.:06:33.

resources to make sure Britain, unique in the world, will meet its

:06:34.:06:38.

twin obligations to spend 7% of its income on development, and 2% on the

:06:39.:06:43.

defence of the realm. At this Spending Review not only ensures the

:06:44.:06:47.

economic and national security of our country, it builds on it. It

:06:48.:06:51.

sets out far-reaching changes to what the state does and how it does

:06:52.:06:56.

it. It reforms our public services so we truly extend opportunity to

:06:57.:07:01.

all, whether it is the way we educate our children, train our

:07:02.:07:05.

workforce, rehabilitate our prisoners, provide homes for our

:07:06.:07:08.

families, deliver care for our elderly and sick, or the way we hand

:07:09.:07:13.

back power to local communities, this is a big Spending Review by a

:07:14.:07:17.

government that does big things. It is a long-term economic plan for our

:07:18.:07:24.

country's future. Mr Speaker, nothing is possible without the

:07:25.:07:28.

foundations of a strong economy. Let be turned to the new forecast

:07:29.:07:33.

provided by the independent Office for Budget Responsibility and let me

:07:34.:07:37.

thank Robert choked and his team for their work. Since the summer budget,

:07:38.:07:42.

new economic data has been published which confirms this, since

:07:43.:07:46.

new economic data has been published economy in the G7 has grown faster

:07:47.:07:50.

than Britain -- Robert Chote. We have grown three times faster than

:07:51.:07:54.

Japan, twice as fast as France, faster than Germany and the same

:07:55.:07:59.

rate as the United States. That growth has not been fuelled by an

:08:00.:08:02.

irresponsible banking boom such as in the last decade.

:08:03.:08:04.

irresponsible banking boom such as investment has grown twice as fast

:08:05.:08:06.

as consumption. Exports faster than imports and the North

:08:07.:08:14.

has grown faster than the south. We are determined that this will be an

:08:15.:08:19.

economic recovery felt in all parts of our nation. That is already

:08:20.:08:24.

happening. In which area of the country are we seeing the strongest

:08:25.:08:29.

jobs growth? Not just in our capital city, the Midlands is creating jobs

:08:30.:08:33.

three times faster than London and the south-east. In the past year we

:08:34.:08:38.

have seen more feeble in work in the Northern Powerhouse than ever

:08:39.:08:41.

before. And where do we have the highest employment rate of any pout

:08:42.:08:46.

of our country? In the south-west of England. Our long-term economic plan

:08:47.:08:53.

is working. But the OBR reminds us today of the huge challenges we

:08:54.:08:57.

still face at home and abroad. Our debts are too high and our deficit

:08:58.:09:02.

remains. Productivity is growing but we still lag behind most of our

:09:03.:09:07.

competitors. I can tell the House that in today's forecast, the

:09:08.:09:11.

expectations for world growth and world trade have been revised down

:09:12.:09:17.

again. The weakness of the eurozone remains a persistent problem. There

:09:18.:09:21.

are rising concerns about debts in emerging economies. These are yet

:09:22.:09:24.

more reasons why we are determined to take the necessary steps to

:09:25.:09:30.

protect our economic security. That brings me to the forecast for our

:09:31.:09:36.

own GDP. Even with the weaker global picture, our economy this year is

:09:37.:09:41.

predicted to grow by 2.4%. Growth is then revised up from the Budget

:09:42.:09:44.

forecast in the next two years, to two years, and two x 5%. If then

:09:45.:09:54.

starts to return to its long-term trend with growth of 2.4% in 2018

:09:55.:10:02.

and 2.3% in 2019 and 2020. That growth this more balanced than in

:10:03.:10:06.

the past. Whole economy investment is set to grow faster in Britain

:10:07.:10:10.

than in any other major advanced economy in the world, this year, the

:10:11.:10:15.

next year, and the year after that. Mr Speaker, when I presented my

:10:16.:10:22.

first Spending Review in 2010, I set this country on the path of living

:10:23.:10:26.

within its means. Our opponents claimed the growth would be choked

:10:27.:10:30.

off, and million jobs would be lost and inequality would rise. Every

:10:31.:10:36.

single one of those projections has proved to be completely wrong --

:10:37.:10:44.

predictions. So too did the claim that Britain had to choose between

:10:45.:10:47.

sound public finances and great public services. It is a false

:10:48.:10:54.

choice. If you are bowled with your reforms, you can have both. That is

:10:55.:10:58.

why when we have been reducing government spending, crime has

:10:59.:11:01.

fallen, and million more children have been educated in good and

:11:02.:11:06.

outstanding schools and public satisfaction with our local services

:11:07.:11:11.

has risen. That is the exact opposite of what our critics

:11:12.:11:15.

predicted. And yet now, the same people are making similar claims

:11:16.:11:18.

about this Spending Review, as we seek to move Britain out of deficit

:11:19.:11:22.

and into surplus. They are completely wrong again. The OBR has

:11:23.:11:27.

seen our public expenditure plans, analysed our effect on our economy.

:11:28.:11:32.

Forecast today is that the economy will grow robustly every year,

:11:33.:11:36.

living standards will rise every year, and more than a million extra

:11:37.:11:40.

jobs will be created over the next five years. That is because sound

:11:41.:11:47.

public finances are not the enemy of sustained growth, they are its

:11:48.:11:52.

precondition. Our economic plan puts the security of working people

:11:53.:11:56.

first, so we are prepared for the inevitable storms that lie ahead.

:11:57.:12:01.

That is why our charter for budget responsibility commits us to

:12:02.:12:05.

reducing the debt to GDP ratio in each and every year of Parliament,

:12:06.:12:10.

reaching a surplus in 2019-20, and keeping that surplus at normal

:12:11.:12:14.

times. I can confirm that the OBR has certified that the economic plan

:12:15.:12:18.

we present delivers on our commitment. Mr Speaker, that brings

:12:19.:12:24.

me to the forecast for debt and deficit. As usual, the OBR has had

:12:25.:12:29.

access to published and unpublished data and has made its own assessment

:12:30.:12:34.

of our public finances. Since the summer budget, housing associations

:12:35.:12:38.

in England have been reclassified by our independent Office for National

:12:39.:12:42.

Statistics, and their borrowing and debts have been brought on to the

:12:43.:12:46.

public balance sheet and that change will be backdated to 2008. This is a

:12:47.:12:53.

statistical change and therefore, the OBR has recalculated its

:12:54.:12:59.

previous budget forecast to include housing associations, so we can

:13:00.:13:04.

compare like with like. On that new measure, debt was forecast in July

:13:05.:13:10.

to be 83.6% of national income this year. Now today in the sort and

:13:11.:13:15.

statement, we forecast debt to be lower at 82.5% -- now today in this

:13:16.:13:20.

Autumn Statement. It then falls every year... Order, order. Mr

:13:21.:13:30.

Lewis, get a grip of yourself, man! Calm, take up yoga, you will find it

:13:31.:13:36.

beneficial, man. The Record shows that the Chancellor stays for a very

:13:37.:13:40.

considerable period after his statement, to respond to questions,

:13:41.:13:45.

and members will always find the chair a friend if they wish to

:13:46.:13:50.

question the Minister. Yes, they will. Those who have questions to

:13:51.:13:59.

ask will be heard. Meanwhile, the Chancellor will be heard. The

:14:00.:14:04.

Chancellor of the Exchequer. Mr Speaker, I am looking forward to

:14:05.:14:08.

it. Now, on that new measure, debt was forecast in July to be 83.6% of

:14:09.:14:15.

national income. Now today in this Autumn Statement they forecast debt

:14:16.:14:20.

to be lower at it then falls every year down to 81.7% next year, down

:14:21.:14:32.

to 77.9%, then 77.3%, reaching 71.3% in 2020, 2021. In every single year,

:14:33.:14:39.

the national debt as a share of national income is lower than when I

:14:40.:14:45.

presented the Budget for months ago. And this improvement in the

:14:46.:14:49.

nation's finances is due to two things. First, the OBR expects tax

:14:50.:14:56.

receipts to be stronger, a sign that our economy is healthier than

:14:57.:15:01.

thought. Second, debt interest payments are expected to be lower,

:15:02.:15:05.

reflecting the further fall in the rates we paid to our creditors.

:15:06.:15:10.

Combine the effects of better tax receipts and lower debt interest,

:15:11.:15:16.

overall the OBR calculates, aiming to 27 7p improvement in our public

:15:17.:15:20.

finances over the forecast period compared to where we were at the

:15:21.:15:28.

Budget. This improvement in the nation's finances allows me to do

:15:29.:15:33.

the following. First, we will borrow ?8 billion less than we forecast,

:15:34.:15:36.

making faster progress towards eliminating the deficit and paying

:15:37.:15:40.

down the debt, fixing the roof when the sun is shining. Second, we will

:15:41.:15:53.

spend ?12 billion more on capital investments, making faster progress

:15:54.:15:57.

to building the infrastructure our country needs. Third, the improved

:15:58.:16:03.

public finances allow us to reach the same goal of a surplus, while

:16:04.:16:08.

cutting less in the early years. We can smooth the path to the same

:16:09.:16:13.

destination. That means we can help on tax credits. I have been asked to

:16:14.:16:21.

to help in the transition as we move to the higher wages, lower welfare

:16:22.:16:26.

society that the country wants to see. I have heard representations

:16:27.:16:29.

that these changes to tax credits should be phased in. I have listened

:16:30.:16:33.

to the concerns, I hear and understand them, and because I have

:16:34.:16:37.

been able to announce today an improvement in the public finances,

:16:38.:16:39.

the simple thing to do is not to phase them in, but to avoid them

:16:40.:16:47.

altogether. Tax credits are being phased out anyway as we introduce

:16:48.:16:51.

Universal Credit. What that means is that the tax credit tabor rate and

:16:52.:16:59.

threshold remain unchanged, the disregard will be ?2500. I propose

:17:00.:17:05.

no further changes to the Universal Credit taper or the work allowances,

:17:06.:17:09.

beyond those passed through Parliament last week. The minimum

:17:10.:17:13.

income floor in Universal Credit will rise with the National Living

:17:14.:17:17.

Wage. I set a lower welfare cap in the Budget. The House should know

:17:18.:17:21.

that helping with the transition obviously means we will not be

:17:22.:17:25.

within that lower welfare cap in the first years, but the House should

:17:26.:17:29.

also know that, thanks to the welfare reforms, we meet the cap in

:17:30.:17:35.

the later part of this Parliament, indeed, on the figures published

:17:36.:17:37.

today, we still achieve indeed, on the figures published

:17:38.:17:40.

billion per year of welfare savings we promised. Now, that is because of

:17:41.:17:48.

the permanent savings we have already made, and the further

:17:49.:17:52.

long-term reforms we announced today. The rate of housing benefit

:17:53.:17:55.

in the social sector will be capped at the relevant local housing

:17:56.:17:59.

allowance, in other words, the same rate paid to those in the private

:18:00.:18:03.

rented sector who receive the same benefit. That will apply to new

:18:04.:18:08.

tenants is only. It will also stop paying housing benefit and pension

:18:09.:18:13.

credit payments for people that have left the country more than a month.

:18:14.:18:17.

The welfare system should be fair to those that need it, and fair to

:18:18.:18:21.

those who pay for it as well. Improved public finances our

:18:22.:18:24.

continued commitment to form mean we continue to be on target for a

:18:25.:18:28.

surplus. The House will want to know the level of that surplus. Let me

:18:29.:18:32.

give the OBR forecast for deficit and borrowing. In 2010,

:18:33.:18:36.

give the OBR forecast for deficit we inherited was estimated to be

:18:37.:18:38.

11.1% of we inherited was estimated to be

:18:39.:18:43.

it is set to be almost a third of that, 3.9%. Next year, it falls to

:18:44.:18:48.

less than a quarter of what we inherited, 2.5%.

:18:49.:18:52.

less than a quarter of what we down again to

:18:53.:18:55.

less than a quarter of what we to just 0.2% a year after that,

:18:56.:18:56.

before moving to just 0.2% a year after that,

:18:57.:19:02.

of national income in 1919-20, rising to 0.6% the following year.

:19:03.:19:06.

Let me turn to the cash borrowing figures. With house borrowing

:19:07.:19:10.

figures included, the OBR predicted at the time of the Budget that

:19:11.:19:15.

Britain would borrow ?74.1 billion this year. They now forecast we will

:19:16.:19:19.

borrow less than that, at 73.5 billion. Borrowing them falls to

:19:20.:19:24.

49.9 billion next year. It continues to fall, and falls to lower than was

:19:25.:19:28.

forecast in the Budget in every single year after that, to 24.8

:19:29.:19:32.

billion next year. It continues to fall, and falls to lower than was

:19:33.:19:34.

forecast in the Budget in every single year after that, to 24

:19:35.:19:40.

2018-19, in 2019-20, we reach a surplus of ?10.1 billion. That is

:19:41.:19:47.

higher than was forecast in the Budget. Britain out of the red and

:19:48.:19:55.

into the black. Surplus rises to 40.7 billion a year after that. So,

:19:56.:20:00.

Mr Speaker, the deficit falls every year. The debt share is lower in

:20:01.:20:05.

every year than previously forecast. We are borrowing ?8 billion less

:20:06.:20:09.

than we expected overall and we reach a bigger surplus. We have

:20:10.:20:13.

achieved this, well, the same time, helping working families as we move

:20:14.:20:21.

to a higher wage, lower welfare economy, and we have the security of

:20:22.:20:24.

knowing our country is paying its way in the world. Mr Speaker, that

:20:25.:20:29.

brings me to our plans for public expenditure and taxation. I want to

:20:30.:20:34.

thank my right honourable friend the Chief Secretary, other ministerial

:20:35.:20:36.

colleagues at the Treasury and the brilliant officials that have

:20:37.:20:39.

assisted us for the long hours and hard work they have put into

:20:40.:20:44.

developing these plans. We said ?5 billion would come from the measures

:20:45.:20:48.

on tax avoidance, evasion and imbalances. Those measures were

:20:49.:20:52.

announced in the Budget. Together, we go further today with new

:20:53.:20:56.

penalties for the general anti-abuse rule that the Government

:20:57.:20:59.

introduced, action on the Government introduced, action undisguised

:21:00.:21:02.

numeration schemes and Stamp Duty avoidance, and we will stop abuse of

:21:03.:21:07.

the intangible fixed assets regime and capital allowances. We also

:21:08.:21:10.

exclude energy generation from the venture capital schemes, to ensure

:21:11.:21:15.

they remain well targeted at high risk companies. HMRC is making

:21:16.:21:19.

efficiencies of 18% in its own Budget. In the digital age, we do

:21:20.:21:25.

not need taxpayers to pay for paper processing or 170 separate tax

:21:26.:21:29.

offices around the country. Instead, we are reinvesting some of those

:21:30.:21:31.

savings with an extra ?800 million in the fight against tax evasion,

:21:32.:21:38.

with a return of almost ten times the additional tax collected. We are

:21:39.:21:42.

going to build one of the most digitally advanced tax

:21:43.:21:44.

administrations in the wilderness Parliament so that every individual

:21:45.:21:48.

and every small business will have their own digital tax account by the

:21:49.:21:51.

end of the decade to manage their tax online. From 2019, once the

:21:52.:21:57.

accounts are up and running, we require Apple gains tax to be paid

:21:58.:22:03.

within 30 days of completion of any disposal of residential property.

:22:04.:22:05.

Together, these form part of the digital revolution that we're

:22:06.:22:09.

bringing to Whitehall that the Spending Review. The court Cabinet

:22:10.:22:17.

Office Budget will be cut by 26%, matching a 24% cut in the Budget of

:22:18.:22:22.

the Treasury. The cost of all Whitehall administrations will be

:22:23.:22:27.

cut by ?1.9 billion. These form part of the ?12 billion of savings to

:22:28.:22:30.

government departments I am announcing today. In 2010,

:22:31.:22:36.

Government spending took up 45% of national income. This was a figure

:22:37.:22:40.

we could not sustain because it was neither practical sensible to raise

:22:41.:22:43.

taxes high enough to pay for that. We ended up with a massive

:22:44.:22:47.

structural deficit. Today, the state accounts for just under 40% of

:22:48.:22:50.

national income and it is forecast to reach 36.5% by the end of the

:22:51.:22:55.

Spending Review. The structural spending this represents is at a

:22:56.:23:00.

level that a competitive, modern, developed economy can sustain and it

:23:01.:23:04.

is a level that the British people are prepared to pay their taxes for.

:23:05.:23:09.

It is precisely because this Government believes in decent public

:23:10.:23:13.

services and a properly funded welfare state that we are insistent

:23:14.:23:17.

that they are sustainable and affordable. To simply argue all the

:23:18.:23:21.

time that public spending must always go up, never be cut, is

:23:22.:23:25.

irresponsible and lets down the people that rely on public services

:23:26.:23:31.

most. To fund the things we want the Government to provide in the modern

:23:32.:23:34.

world, we have to be prepared to provide the resources. Mr Speaker, I

:23:35.:23:39.

am setting the limits for total managed expenditure as follows. This

:23:40.:23:43.

year, public spending will be ?756 billion. 773 billion next year, 780

:23:44.:23:52.

billion a year after, 801 billion, before reaching 821,000,000,020

:23:53.:23:57.

19-20, the year we are forecast to eliminate the deficit and a surplus.

:23:58.:24:03.

After this, the focus of public spending rises broadly in line with

:24:04.:24:06.

the growth of the economy and will be at 857 in 2020-21. The figures

:24:07.:24:13.

from the OBR show over the next five years, welfare spending falls as a

:24:14.:24:19.

percentage of national income, while departmental capital income is

:24:20.:24:23.

maintained and is higher at the end of the period. That is the right

:24:24.:24:28.

switch for a country that is serious about investing in long-term

:24:29.:24:31.

economic success. People will want to know what the levels of public

:24:32.:24:34.

spending mean in practice, and the scale of the cuts we are asking

:24:35.:24:38.

government departments to undertake. In this Spending Review, the

:24:39.:24:41.

day-to-day spending of Governor departments is set to fall by an

:24:42.:24:45.

average of 0.8% per year in real terms. That compares to an average

:24:46.:24:49.

fall of 2% over the last five years. So, the savings we need are

:24:50.:24:53.

considerably smaller. This reflects the improvement in the public

:24:54.:24:57.

finances and the progress we have already made. Indeed, the overall

:24:58.:25:02.

rate of annual cuts I set out in today's Spending Review are less

:25:03.:25:04.

than half of those delivered over the last five years. So, Britain is

:25:05.:25:09.

spending a lower proportion of money on welfare and a higher proportion

:25:10.:25:12.

on the structure. The Budget balanced, with cuts half what they

:25:13.:25:17.

were in the last Parliament, making the savings we need, no less and no

:25:18.:25:21.

more, and providing economic security so the working people of a

:25:22.:25:27.

country with a surplus lives within its means. This does not mean that

:25:28.:25:34.

the decisions required to deliver the savings are easy. Nor should we

:25:35.:25:38.

lose sight of the the Spending Review commits ?4 trillion over the

:25:39.:25:42.

next five years. It is a huge amendment of the hard earned cash of

:25:43.:25:45.

British tax payers and all those that dedicate their lives to public

:25:46.:25:49.

service will want to make sure it is well spent. Our approach is not

:25:50.:25:53.

simply retrenchment, it is to reform and rebuild. These reforms will

:25:54.:25:58.

support our objectives for the country. First, to develop a modern,

:25:59.:26:03.

integrated health and social care system that supports people at every

:26:04.:26:06.

stage in their lives. Second, to spread economic power and wealth

:26:07.:26:11.

through a devolution revolution and invest in long-term infrastructure.

:26:12.:26:16.

Third, to extend opportunity by tackling the big social failures

:26:17.:26:19.

that for too long have helped people back in our country. Fourth, to

:26:20.:26:22.

reinforce national security with the resources to protect us at home and

:26:23.:26:27.

project our values abroad. The resources allocated by this Spending

:26:28.:26:30.

Review are driven by these four goals. The first priority of this

:26:31.:26:34.

government is the first priority of the British people, the National

:26:35.:26:41.

Health Service. The Health Service was cut by the Labour administration

:26:42.:26:47.

in Wales, but we, the Conservatives, have been increasing health spending

:26:48.:26:52.

in England. In this Spending Review, we do so again. We will work with

:26:53.:26:55.

our health professionals to deliver the very best value for that money.

:26:56.:27:00.

That means ?22 billion of efficiency savings across the service, it means

:27:01.:27:04.

a 25% cut in the Whitehall Budget for the Department of Health, it

:27:05.:27:11.

means modernising the way we fund students of health care. Today,

:27:12.:27:15.

there is a cap on student nurses. Over half of all applicants are

:27:16.:27:18.

turned away and it leaves hospital is relying on agencies and overseas

:27:19.:27:22.

staff. We will replace direct funding with loans for new students

:27:23.:27:27.

so we can abolish this self-defeating cap and creativity

:27:28.:27:30.

10,000 new training places in this Parliament. Alongside these reforms,

:27:31.:27:36.

we will give the NHS the money it needs. We made a commitment to a ?10

:27:37.:27:40.

billion real increase in the health service Budget. We fully deliver

:27:41.:27:45.

that today with the first ?6 billion delivered up front, next year. It

:27:46.:27:52.

fully funds the five-year plan that the NHS put forward as its plan for

:27:53.:27:55.

its future, as the chief executive of NHS England, Simon Stephen, said,

:27:56.:28:01.

the NHS has been heard and actively supported. Let me explain what that

:28:02.:28:08.

means in cash. The NHS Budget will rise from ?101 billion today to ?120

:28:09.:28:18.

billion by 2020-21. This is a half ?1 trillion commitment to the NHS

:28:19.:28:22.

over this Parliament, the largest investment in the health service

:28:23.:28:29.

since its creation. So, we have a clear plan for improving the NHS. We

:28:30.:28:34.

fully funded it and, in return, patients will see more than ?5

:28:35.:28:41.

billion of health research in everything from genome is to

:28:42.:28:43.

antimicrobial resistance, to a new dimension Institute and a new

:28:44.:28:48.

world-class public health facility in Harlow, and more. 800,000 more

:28:49.:28:54.

elective hospital admissions. 5 million more outpatient

:28:55.:28:58.

appointments. 2 million more diagnostic tests. New hospitals

:28:59.:29:02.

funded in Cambridge, Sandwell and Brighton. Cancer testing within four

:29:03.:29:06.

weeks and a brilliant NHS available seven days a week. Mr Speaker, there

:29:07.:29:16.

is one part of our NHS that has been neglected too long, and that is

:29:17.:29:19.

mental health. I want to thank the all-party group, led by my right

:29:20.:29:22.

honourable friend for Sutton Coldfield, the right honourable

:29:23.:29:25.

member for North Norfolk and Alistair Campbell, for their work in

:29:26.:29:29.

this vital area. In the last Parliament we made a start by laying

:29:30.:29:32.

the foundations for equality of treatment with the first-ever

:29:33.:29:35.

waiting time standards for mental health. Today we are building on

:29:36.:29:45.

that with ?600 million of additional funding, meaning that by 2020

:29:46.:29:47.

significantly more people will have access to talking therapies,

:29:48.:29:49.

perinatal mental health services and crisis care. It is all possible

:29:50.:29:52.

because we made a promise to the British people to give our NHS the

:29:53.:29:56.

funding it needs. In this Spending Review, we have delivered. Mr

:29:57.:30:02.

Speaker, the Health Service cannot function effectively without good

:30:03.:30:07.

social care. Many local authorities are not going to be able to meet the

:30:08.:30:11.

growing social care needs unless they have new sources of funding.

:30:12.:30:16.

That, in the end, comes from the taxpayer. In future, those local

:30:17.:30:20.

authorities who are responsible for social care will be able to levy a

:30:21.:30:24.

new social care precept of up to 2% of council tax. The money raised

:30:25.:30:29.

will have to be spent exclusively on adult social care and if all

:30:30.:30:34.

authorities make full use of it it will bring almost ?2 billion more

:30:35.:30:39.

into the care system. It is part of a major reform we are undertaking to

:30:40.:30:43.

integrate health and social care by the end of this decade,

:30:44.:30:45.

integrate health and social care by achieve that I am today

:30:46.:30:50.

integrate health and social care by the Better Care Fund to support that

:30:51.:30:53.

integration, with local authorities able to access an extra ?1.5 billion

:30:54.:30:57.

by 2019-20. The steps taken able to access an extra ?1.5 billion

:30:58.:31:14.

will have risen in real terms. A civilised and prosperous society

:31:15.:31:18.

like ours should support its vulnerable citizens and that

:31:19.:31:21.

includes a decent income in retirement. Many people have already

:31:22.:31:27.

been auto enrolled into a pension thanks to our reforms in the last

:31:28.:31:36.

Parliament. A booster will align contributions with the tax years.

:31:37.:31:40.

The best way to reform pension benefits is to raise the pension age

:31:41.:31:46.

as we are set to do in the next parliament. That allows us to

:31:47.:31:49.

maintain a triple lock on the value of the state pension, so never again

:31:50.:31:56.

do Britain's pensioners received a derisory increase of 75p. As a

:31:57.:32:02.

result of our commitment to those who have worked hard all their lives

:32:03.:32:07.

and contributed to our six IT, I can confirm that next year the basic

:32:08.:32:11.

state pension will rise to ?119 30 a week. That is the biggest increase

:32:12.:32:20.

to the basic state pension in 15 years. Taking all of our increases

:32:21.:32:24.

together, over the next five years pensioners will be 1000 ?100 better

:32:25.:32:31.

off year than when we came to office. We are also undertaking the

:32:32.:32:34.

biggest change in the state pension for 40 years, to make it simpler and

:32:35.:32:48.

fairer, to introduce a new pension. It will be higher than the current

:32:49.:32:58.

meantime -- means tested benefits and an example of a progressive

:32:59.:33:03.

government in action. Instead of cutting the savings credit, it will

:33:04.:33:07.

be frozen at its current level where income is unchanged. The first

:33:08.:33:12.

objective of this Spending Review is to give unprecedented support to

:33:13.:33:15.

health, social care and to our pensioners. The second is to spread

:33:16.:33:20.

economic power and wealth across our nation. In recent weeks, great

:33:21.:33:24.

metropolitan areas such as Sheffield, Liverpool, the Tees

:33:25.:33:31.

Valley and the North Midlands has joined Greater Manchester in

:33:32.:33:38.

creating mayors. It's the most determined effort to change the

:33:39.:33:42.

geographical imbalance which has bedevilled the British economy over

:33:43.:33:48.

half a century. We are setting aside ?12 billion for the local growth

:33:49.:33:53.

fund and I am announcing the creation of 26 new or extended

:33:54.:33:57.

enterprise zones including 15 zones in towns and rural areas from

:33:58.:34:03.

Carlisle to Dorset and Ipswich. If we really want to shift power in our

:34:04.:34:07.

country, we have to give all local councils the tools to drive business

:34:08.:34:11.

growth in their area and the rewards that come when you do so. I can

:34:12.:34:15.

confirm today, that as we set out last month, we will abolish the

:34:16.:34:20.

uniform business rate. By the end of the parliament, local government

:34:21.:34:22.

will keep all of the revenues from business rates, will give councils

:34:23.:34:26.

the power to cut rates and make their area more attractive to

:34:27.:34:48.

business and elected mayors will be able to raise rates provided they

:34:49.:34:50.

are used to fund specific infrastructure projects, supported

:34:51.:34:52.

by the local business community. Because the amount we raise in

:34:53.:34:55.

business rates is in total much greater than the rates we give to

:34:56.:34:57.

councils through the local government grants, we will phase

:34:58.:34:59.

that grant out entirely over this Parliament. We will also devolve

:35:00.:35:01.

additional responsibilities. The temporary management fee will no

:35:02.:35:03.

longer be paid through the benefit system. Instead, councils will

:35:04.:35:05.

receive ?10 billion a year up front to provide more help for homeless

:35:06.:35:07.

people, alongside savings in the public health grant, we will consult

:35:08.:35:11.

on transferring new powers and the responsibility for its funding and

:35:12.:35:15.

elements of the administration of housing benefit. Local government is

:35:16.:35:24.

sitting on property worth a quarter of a quarter of ?1 trillion. We will

:35:25.:35:27.

let councils spend 100% of the receipts of the assets they sell to

:35:28.:35:29.

improve local services. Councils increase their reserves by nearly

:35:30.:35:33.

?10 billion over the last Parliament. We will encourage them

:35:34.:35:38.

to draw on their reserves as they undertake reforms. Mr Speaker, this

:35:39.:35:43.

amounts to a big package of new powers, but also new

:35:44.:35:47.

responsibilities for local councils. It is a revolution in the way we

:35:48.:35:51.

govern this country, and if you take into account both the falling grant

:35:52.:35:55.

and rising counselling comes, it means by the end of this Parliament,

:35:56.:35:59.

local government will be spending the same in cash terms as it does

:36:00.:36:06.

today. Mr Speaker, the devolved administrations of the United

:36:07.:36:10.

Kingdom will also have available to them unprecedented new powers to

:36:11.:36:13.

drive their economies. The conclusion last week of the

:36:14.:36:17.

political talks in Northern Ireland means additional spending power for

:36:18.:36:23.

the executive to ensure the full implementation of the Stormont House

:36:24.:36:28.

agreement. But opens the door to the devolution of corporation tax which

:36:29.:36:31.

the parties confirmed have said they wished to set at 12.5%. That is huge

:36:32.:36:36.

prize for business in Northern Ireland and the onus is on the

:36:37.:36:39.

Northern Ireland Executive to play their part and deliver sustainable

:36:40.:36:44.

budget so we can move forward on that. Northern Ireland's block grant

:36:45.:36:50.

will be over ?11 billion and funding for new capital in will rise over

:36:51.:36:54.

five years, ensuring Northern Ireland can invest in its long-term

:36:55.:36:59.

future. For years, Wales has asked for a slender in -- funding floor to

:37:00.:37:08.

protect spending. Now this Conservative government is answering

:37:09.:37:12.

that call and providing that historic funding guarantee for

:37:13.:37:15.

Wales. I can announce today we will introduce the new funding floor and

:37:16.:37:21.

set it for this Parliament at the Welsh Secretary and I have also

:37:22.:37:25.

confirmed that we will legislate so the devolution on income tax can

:37:26.:37:29.

take place without a referendum. We will also help fund a new Cardiff

:37:30.:37:34.

City deal. The Welsh block grant will reach ?15 million by 2019-20

:37:35.:37:41.

while the capital spending will rise over ?900 million over five years.

:37:42.:37:44.

As Lord Smith confirmed, the Scotland Bill meets the vow made by

:37:45.:37:57.

the parties... Mr Speaker, it must be underpinned by a fiscal framework

:37:58.:38:02.

that is fair to all taxpayers and we are ready now to reach an

:38:03.:38:06.

agreement. The ball is in the Court of the Scottish government. Let's

:38:07.:38:10.

have a deal that is fair to Scotland, said the UK and is built

:38:11.:38:14.

to last. We are and entering the city deal for Glasgow and

:38:15.:38:18.

negotiating deals with Aberdeen and Inverness as well. If Scotland had

:38:19.:38:23.

voted for independence, they would have had their own Spending Review

:38:24.:38:28.

this autumn. With world oil prices falling, and revenues from the North

:38:29.:38:33.

Sea forecast by the OBR today to be down 94%, we would have seen

:38:34.:38:40.

catastrophic cuts in Scottish public services. Thankfully, Scotland

:38:41.:38:45.

remains a strong part of a stronger United Kingdom. So the Scottish

:38:46.:38:57.

block grant will be over ?30 million and 2019-20, while capital spending

:38:58.:39:03.

available will rise by ?1.9 billion through to 2021. UK government

:39:04.:39:08.

giving Scotland the resources to invest in its long-term future. For

:39:09.:39:14.

the UK government, the funding of the Scotland, Wales and Northern

:39:15.:39:18.

Ireland offices, we'll all be protected in real terms. Mr Speaker,

:39:19.:39:22.

we are devolving power across our country and will also spending on

:39:23.:39:25.

economic infrastructure that connects our nation. That is

:39:26.:39:29.

something Britain has not done enough for a generation. Now by

:39:30.:39:32.

making the difficult decisions to save on day-to-day costs, we can

:39:33.:39:37.

invest in new roads, roadways, signs and flood defences that Britain

:39:38.:39:45.

needs. We made a start in the last and in the last year, Britain topped

:39:46.:39:49.

a league table of the best places in the world to invest in

:39:50.:39:54.

infrastructure. The Department for transport's operational budget will

:39:55.:39:59.

fall by 37%. Transport capital spending will increase by 50% to a

:40:00.:40:06.

total of ?61 billion, the biggest increase for a generation. That

:40:07.:40:11.

funds the largest road investment programme since the 1970s, for we

:40:12.:40:21.

are the builders. It means the construction of High Speed Two, to

:40:22.:40:26.

link the Northern Powerhouse to the south can begin. The electrification

:40:27.:40:29.

of lines like the trans-Pennine, the Midland mainline and the great

:40:30.:40:34.

Western can go ahead. We will fund our new transport for the North to

:40:35.:40:40.

get it up and running. London will get an ?11 billion investment in its

:40:41.:40:44.

transport infrastructure, and having met with my honourable member for

:40:45.:40:48.

Folkestone and other Kent MPs, I will relieve the roads in

:40:49.:40:52.

Folkestone and other Kent MPs, I operation Stack with the new quarter

:40:53.:40:55.

of the billion pound investment in new facilities there. We are making

:40:56.:40:59.

a new ?300 million commitment to cycling that we promised, and we

:41:00.:41:03.

will be spending over ?5 million on roads maintenance in this

:41:04.:41:07.

Parliament. Thanks to the incessant lobbying from my Honourable friend

:41:08.:41:14.

from Northampton North, Britain now has a permanent pothole fund.

:41:15.:41:24.

Mr Speaker, we are investigating in the transport we need and the flood

:41:25.:41:33.

defences as well. DEFRA's day-to-day budget. 15% in this Spending Review,

:41:34.:41:39.

but we are committing ?2 billion to protect 300,000 homes from flooding.

:41:40.:41:43.

Our commitment to farming and the countryside is reflected in the

:41:44.:41:47.

protection of funding for our national parks and our forests. We

:41:48.:41:49.

will not national parks and our forests. We

:41:50.:41:55.

again! I can tell the House that in recognition of the higher cost they

:41:56.:42:02.

face, we will continue to provide ?50 of the water bills of Southwest

:42:03.:42:08.

water customers for the rest of this Parliament, a Conservative promise

:42:09.:42:14.

made to the south-west and a promise kept. Mr Speaker, investing in the

:42:15.:42:18.

long-term economic infrastructure of this country is a goal of our

:42:19.:42:22.

spending reviewed and there is no more important infrastructure than

:42:23.:42:26.

energy. We are doubling our spending on energy research with a commitment

:42:27.:42:29.

to Smallman modular nuclear reactors. Also supporting the shale

:42:30.:42:35.

gas industry to assure that communities benefit from a shell

:42:36.:42:39.

wealth fund which could be worth up to ?1 billion. Support for low

:42:40.:42:42.

carbon energy and renewables will more than double. The sale of

:42:43.:42:46.

ultralow emission vehicles will continue to be supported. In light

:42:47.:42:56.

of the slower than expected and the introduction of emissions testing,

:42:57.:43:05.

we will remove the testing of diesel vehicles until 2021. We are

:43:06.:43:07.

increasing our support for vehicles until 2021. We are

:43:08.:43:12.

finance. Day-to-day resource urge it will fall I20 2%. We will reform the

:43:13.:43:18.

renewable heat incentive to will fall I20 2%. We will reform the

:43:19.:43:36.

our energy industries such as steel to keep them here. We will introduce

:43:37.:43:43.

a cheaper energy efficiency scheme. This will save ?30 a year from the

:43:44.:43:48.

energy bills of 24 million households. This government believes

:43:49.:43:53.

going green should not cost the earth. We are putting other builders

:43:54.:44:00.

of. We will bring reforms to the compensation culture around minor

:44:01.:44:05.

motor accident injuries. We expect the industry to pass on the savings

:44:06.:44:10.

are most see an average saving of 40 to ?50 every year of their insurance

:44:11.:44:15.

bills. Mr Speaker, this is a government that backs all our

:44:16.:44:19.

businesses, large and small, and we on this side of

:44:20.:44:23.

businesses, large and small, and we that there is no growth, no jobs

:44:24.:44:28.

without a vibrant private sector and successful entrepreneurs. This

:44:29.:44:31.

Spending Review delivers what business needs. Business needs

:44:32.:44:36.

competitive taxes. I have already announced a reduction in our

:44:37.:44:44.

corporation tax rate to 18%. Our overall view of business rates will

:44:45.:44:46.

report in the Budget but I am helping 600,000 of our smallest is

:44:47.:44:50.

Mrs by extending our rate relief scheme for another year. Businesses

:44:51.:44:56.

also need an active and sustained industrial strategy and that

:44:57.:44:59.

strategy launched in the last Parliament continues in this one. We

:45:00.:45:05.

commit to the same level of support for our aerospace and automotive

:45:06.:45:08.

industries, not just for the next five years, but for the next decade.

:45:09.:45:13.

Spending on our new catapult centres will increase. We will support the

:45:14.:45:18.

cash support we give through Innovate UK, something we can afford

:45:19.:45:24.

to do by offering ?165 million of new loans to companies, instead of

:45:25.:45:27.

grants, as France has successfully done for many years. It is one of

:45:28.:45:35.

the figures that has helped us reduce the Budget by 17%. In the

:45:36.:45:39.

modern world, one of the best ways you can back business is by backing

:45:40.:45:43.

science. That is why in the last Parliament hide protected the

:45:44.:45:48.

resource Project for science in cash terms. In this Parliament I am

:45:49.:45:52.

protecting it in real terms, so it rises to ?4.7 billion. That is ?500

:45:53.:45:58.

billion more by the end of the decade, alongside the capital

:45:59.:46:02.

Budget. We are funding the new Institute in Manchester and the new

:46:03.:46:07.

centres in Shropshire, York, Bedfordshire and Edinburgh and we

:46:08.:46:10.

are going to commit ?75 billion to a transformation of the famous

:46:11.:46:16.

Cavendish laboratories in Cambridge, where our knowledge of the universe

:46:17.:46:19.

was expanded, to make sure we get the most from our investment in

:46:20.:46:25.

science. I asked another Nobel laureate, Paul nurse, to conduct a

:46:26.:46:27.

review of the research councils. I want to thank him for the excellent

:46:28.:46:31.

report he has published and we will complement his recommendations.

:46:32.:46:35.

Britain is not just brilliant at science, it is brilliant at culture

:46:36.:46:38.

as well. One of the best investments we can make as a nation is in our

:46:39.:46:44.

extraordinary arts, museums, heritage and sport. ?100 million per

:46:45.:46:51.

year in grants and a quarter of a billion pounds into our economy. The

:46:52.:46:59.

core administration Budget will fall by 20%, but I am increasing the cash

:47:00.:47:03.

that will go to the Arts Council, our national museums and galleries.

:47:04.:47:09.

We will keep free museum entry and look at a new tax credit to support

:47:10.:47:14.

that exhibitions. I will help UK Sport, which has been living on

:47:15.:47:18.

diminishing reserves, with a 29% increase in their Budget, so we go

:47:19.:47:28.

for gold in Rio and Tokyo. Mr Speaker, the right honourable

:47:29.:47:31.

member, the former Home Secretary, the Member for whole west and

:47:32.:47:37.

hassle, has personally asked me to support his city's year of culture.

:47:38.:47:42.

I'm happy to do so with a grunt. His city has contributed to the arts,

:47:43.:47:47.

while his front bench contributes to comedy. The money for Hull is part

:47:48.:48:00.

of a package for the Northern Powerhouse which includes funding

:48:01.:48:06.

the iconic new Factory Manchester. In Scotland we will support the

:48:07.:48:09.

world famous Burrell collection, in London we will help the British

:48:10.:48:14.

Museum, science Museum and the Victoria and Albert move their

:48:15.:48:20.

collections into display. We are increasing the funding for the BBC

:48:21.:48:24.

World Service so British values of freedom and free expression I heard

:48:25.:48:30.

around the world. All of this can be achieved without raiding, as the

:48:31.:48:36.

Prime Minister said, the big lottery fund, some had feared. It will

:48:37.:48:38.

continue to support the work of hundreds of small charities across

:48:39.:48:43.

Britain. So will the ?20 million per year of new support for social

:48:44.:48:47.

impact bonds. There are many great charities that work to support

:48:48.:48:51.

vulnerable women. A point that was raised in Prime Minister's

:48:52.:48:56.

Questions, indeed. The Member for Colchester has proposed a brilliant

:48:57.:48:59.

way to give them more help. 300,000 people have signed a petition

:49:00.:49:03.

arguing that no VAT should be charged on sanitary products. We

:49:04.:49:08.

already charge the lowest 5% rate allowable under European law and we

:49:09.:49:11.

are committed to cutting the EU to change its rules. Until that

:49:12.:49:15.

happens, I am going to use the ?15 million per year raised to fund

:49:16.:49:21.

women's health charities and support charities. The first ?5 million, Mr

:49:22.:49:34.

Speaker... The first ?5 million will be distributed to the Eve Appeal,

:49:35.:49:47.

Safe Lives, and I invite bids from other worthy causes. We will support

:49:48.:49:53.

a host of military charities, from guide dogs for military veterans, to

:49:54.:50:04.

Karanka Combat. From the museums of Portsmouth, to the National Museum,

:50:05.:50:09.

to the aerodrome and the former HQ of fighter command at Bentley. In

:50:10.:50:13.

the Budget, I funded one of these bunkers, more have emerged since

:50:14.:50:18.

then. At the suggestion of my right honourable friend for Mid Sussex, we

:50:19.:50:21.

will support the fellowships awarded in the name of his grandfather by

:50:22.:50:24.

funding the Winston Churchill Memorial trust. We will fund the

:50:25.:50:34.

Commonwealth War Graves Commission, so it can tend to the graves of

:50:35.:50:38.

those that died fighting for our country, and we will contribute to a

:50:39.:50:42.

memorial for the victims of terrorism who died on the bus at

:50:43.:50:45.

Tavistock Square ten years ago. It is a reminder that we have always

:50:46.:50:49.

faced threats to our way of life and we have never allowed them to defeat

:50:50.:50:54.

us. We deliver security so we can spread opportunity. That is the

:50:55.:50:58.

third objective that drives the Spending Review. We showed in the

:50:59.:51:02.

last five years that sound public finances and bold public service

:51:03.:51:07.

reform can help the most disadvantaged in our society. That

:51:08.:51:10.

is why inequality is down, child poverty is down, the gender pay gap

:51:11.:51:18.

is at a record low and the richest fifth now pay more in taxes than the

:51:19.:51:23.

rest of the country put together. The other side talks of social

:51:24.:51:29.

justice. This side delivers it. We are all in this together. In the

:51:30.:51:37.

next five years, we will be even bolder in social reform. It starts

:51:38.:51:43.

with education. That is the door to opportunity in our society. This

:51:44.:51:50.

permits us to reform and the weight is provided from childcare to

:51:51.:51:52.

college. We start with the largest ever investment in free childcare so

:51:53.:51:55.

working families get the help they need. From 2017 we will fund 30

:51:56.:51:59.

hours of free childcare for working families with three and four year

:52:00.:52:04.

olds. We will support ?10,000 of childcare costs tax free. To make it

:52:05.:52:08.

affordable, the extra support will only be available to parents working

:52:09.:52:11.

more than 16 hours a week and with incomes of less than ?100,000. We

:52:12.:52:22.

will maintain the free places to parents, we will increase the

:52:23.:52:26.

funding to the sector by ?300 million. Taken together, it is a ?6

:52:27.:52:29.

billion childcare commitment to the working families of Britain. Next,

:52:30.:52:35.

schools. We build our far-reaching reforms of the last Parliament that

:52:36.:52:38.

have seen school standards rise, even as exams become more rigorous.

:52:39.:52:43.

We will maintain funding for free infant school meals, protect rates

:52:44.:52:45.

for the Pupil Premium and increase the cash in the dedicated school

:52:46.:52:51.

grant. We will maintain the current national base rate of funding for

:52:52.:52:55.

our 16-19 year-old students for the whole Parliament. We are going to

:52:56.:53:00.

open 500 new free schools and university technical colleges,

:53:01.:53:04.

invest ?23 billion in school building and 600,000 new school

:53:05.:53:08.

places. To help all of our children make the transition to adulthood and

:53:09.:53:12.

learn not just about their rights but their responsibilities to, we

:53:13.:53:15.

will expand the national citizen service. Today, 80,000 students go

:53:16.:53:30.

on National Citizen Service. Five years ago, 200 schools were

:53:31.:53:37.

academies. Today, 5000 schools are. Our goal is to complete this school

:53:38.:53:41.

revolution and help every secondary school become an academy. We will

:53:42.:53:44.

announce that we will allow sixth form colleges to become academies as

:53:45.:53:48.

well, so they no longer have to pay VAT. We will make local authorities

:53:49.:53:52.

running schools a thing of the past and this will help us save around

:53:53.:53:56.

?600 million from the education services ground. Mr Speaker, I can

:53:57.:54:00.

tell the House that, as a result of the Spending Review, not only is the

:54:01.:54:04.

schools Budget protected in real terms, but the total financial

:54:05.:54:09.

support for education, including childcare and our extended further

:54:10.:54:13.

and higher education loans will increase by ?10 billion. That is a

:54:14.:54:19.

real terms increase for education as well. We are going to phase out the

:54:20.:54:24.

arbitrary and unfair school funding system that has systematically

:54:25.:54:30.

underfunded schools in whole swathes of the country. The current

:54:31.:54:33.

arrangements, a child from a disadvantaged background in one

:54:34.:54:36.

school can receive half as much funding as a child an identical

:54:37.:54:40.

circumstances in another school. In its place, we will introduce a new

:54:41.:54:44.

national funding formula. I commend to the many MPs from all parties who

:54:45.:54:48.

have campaigned for many years to see this day come. It will start to

:54:49.:54:54.

be introduced from 2017. My right honourable friend the Education

:54:55.:54:56.

Secretary will consult in the New Year. Education continues in our

:54:57.:55:00.

further education colleges and universities, and so do our reforms.

:55:01.:55:04.

We will not come as many predicted, cut for adult skills funding for

:55:05.:55:10.

colleges. Instead, we will protected in cash terms. In the Budget, I

:55:11.:55:14.

announce we will replace an affordable student maintenance

:55:15.:55:17.

grants with larger student loans that saves us over ?2 billion each

:55:18.:55:21.

year in the Spending Review. It means we can extend support to

:55:22.:55:24.

students who have never before had government help. Today I can

:55:25.:55:28.

announce that part-time students will be able to receive maintenance

:55:29.:55:31.

loans helping some of our poorest students which, will for the first

:55:32.:55:38.

time, provide tuition fee loans for those pursuing higher skills in

:55:39.:55:42.

further education. Almost 250,000 extra students will benefit from all

:55:43.:55:45.

this new support I am announcing today. Mr Speaker, there is then the

:55:46.:55:53.

apprenticeship programme, the flagship of our commitment to

:55:54.:55:56.

skills. In the last Parliament we more than doubled the number of

:55:57.:56:00.

apprenticeships to 2 million. By 2020, we want to see 3 million

:56:01.:56:02.

apprentices. To make sure they 2020, we want to see 3 million

:56:03.:56:08.

will increase the funding per place. My right honourable friend the

:56:09.:56:10.

Business Secretary will create a new business led body to set the

:56:11.:56:14.

standards. As a result will be spending twice as much on

:56:15.:56:17.

apprenticeships by 2020 compared to when we to office. To ensure large

:56:18.:56:22.

businesses share the cost of training and workforce, I announced

:56:23.:56:26.

in the Budget we will introduce a new apprenticeship levy from April

:56:27.:56:31.

2017. Today I am setting the rate at 0.5% of an employer's pay bill.

:56:32.:56:36.

Every employer will receive a ?15,000 allowance to offset against

:56:37.:56:40.

the levy, which means 98% of all employers and all businesses who pay

:56:41.:56:44.

bills of less than ?3 billion will pay no levy at all. It means the

:56:45.:56:49.

apprentice ships levy will raise ?3 billion per year, and will fund 3

:56:50.:56:52.

million apprentice ships. With those paying is able to get more than they

:56:53.:56:57.

put in, it is a huge reform to raise the skills of the nation and address

:56:58.:57:00.

one of the enduring weaknesses of the British economy. Mr Speaker,

:57:01.:57:07.

education and skills are the foundation of opportunity in our

:57:08.:57:10.

country. Next we need to help people into work. The number claiming

:57:11.:57:15.

unemployment benefits has fallen to just 2.3%, the lowest rate since

:57:16.:57:21.

1975. But we are not satisfied that the job is done. We want to see full

:57:22.:57:26.

employment. Today, we confirm we will extend the same support and

:57:27.:57:30.

conditionality we currently expect of those on JSA 2/1 million more

:57:31.:57:34.

benefit claimants. Those signing on will have to attend a Jobcentre

:57:35.:57:37.

every week for the first three months and will increase, in real

:57:38.:57:42.

terms, they help we provide for those with disabilities to get them

:57:43.:57:45.

into words. This will all be delivered within the 14% savings we

:57:46.:57:50.

make to the resource Budget for the Department for Work and Pensions,

:57:51.:57:52.

including by reducing the side of their estate and co-locating job

:57:53.:57:56.

centres with local authority buildings. It is the way to save

:57:57.:58:00.

money while improving the front-line service we offer people and

:58:01.:58:03.

providing more support for those that are the most vulnerable and

:58:04.:58:11.

most in need of our help. You cannot say you are fearlessly tackling the

:58:12.:58:13.

most difficult social problems if you turn a blind eye to what goes on

:58:14.:58:17.

in our prisons and criminal justice system. My right honourable friend

:58:18.:58:21.

the Lord Chancellor has worked with the Lord Chief Justice and others to

:58:22.:58:24.

put forward a typically bold and radical plan to transform our courts

:58:25.:58:29.

so they are fit for the modern age. Underused courts will be closed. I

:58:30.:58:32.

can announce today the money saved will be used to fund a ?700 million

:58:33.:58:38.

investment in new technology that will bring further and permanent

:58:39.:58:41.

long-term savings and speed up the process of justice. Old Victorian

:58:42.:58:48.

prisons in our cities that are not suitable for rehabilitating

:58:49.:58:52.

prisoners will be sold. This will also bring long-term savings and

:58:53.:58:55.

means we can spend over ?1 billion in this Parliament building nine

:58:56.:59:00.

modern new prisons. Today, the transformation gets under way, with

:59:01.:59:02.

the announcement that the Justice Secretary has just made. I can tell

:59:03.:59:07.

the House that Holloway prison, the biggest women's jail in Western

:59:08.:59:11.

Europe, will close. In the future, women prisoners will serve sentences

:59:12.:59:15.

in more humane additions, better designed to keep them away from

:59:16.:59:21.

crime. -- conditions. By selling these old prisons, we will create

:59:22.:59:24.

more space for housing in inner cities, for another of the great

:59:25.:59:28.

social failures of our age has been the failure to build enough houses.

:59:29.:59:32.

In the end, spending reviews like this come down to choices about what

:59:33.:59:37.

your priorities are. I am clear in the Spending Review that we choose

:59:38.:59:42.

to build. Above all, we choose to build the homes that people can buy,

:59:43.:59:46.

for there is a growing crisis of home ownership in our country. 15

:59:47.:59:52.

years ago around 60% of people under 35 own their own home. Next year it

:59:53.:00:01.

is said to be half that. We made a start on tackling this in the last

:00:02.:00:02.

Parliament. With schemes like help to buy, the number of first-time

:00:03.:00:06.

buyers rose by nearly 60%. But we haven't done nearly enough yet, so

:00:07.:00:10.

it is time to do much more. Today we set out our bold plan to back

:00:11.:00:14.

families that aspire to buy their own home. First, I am doubling the

:00:15.:00:17.

housing Budget. Doubling the housing Budget. Dublin yet to ?2 billion a

:00:18.:00:23.

year. -- doubling it. We will deliver, with government help,

:00:24.:00:26.

400,000 affordable new homes by the end of the decade. Affordable means

:00:27.:00:30.

not just affordable to rent, but affordable to buy as well. That is

:00:31.:00:41.

the biggest house-building programme by any government since the 1970s.

:00:42.:00:42.

Almost half of them will be our starter homes sold

:00:43.:00:53.

at 20% of the market value from new buyers. We will remove many of the

:00:54.:00:59.

restrictions on shared ownership, who can buy them and who they can be

:01:00.:01:04.

sold on to. The second part of our housing plan delivers on the

:01:05.:01:10.

manifesto commitment. I can tell the House this starts with the new pilot

:01:11.:01:15.

and from midnight tonight, tenants of five housing associations will be

:01:16.:01:20.

able to start the process of buying their own home. The third element of

:01:21.:01:24.

the plan involves accelerating housing supply, announcing further

:01:25.:01:29.

reforms to our planning system so that it delivers more homes more

:01:30.:01:32.

quickly. We are releasing public land suitable for homes and we said

:01:33.:01:39.

-- designating commercial land for homes. We will regenerate more

:01:40.:01:46.

rundown estates and deliver the first new garden city in nearly a

:01:47.:01:50.

century. The Government will help address the housing crisis in our

:01:51.:01:56.

capital city with the new scheme, London helped to buy. Londoners with

:01:57.:02:02.

a 5% deposit will be able to get an interest-free loan. My honourable

:02:03.:02:09.

friend for Richmond Park has been campaigning on affordable home

:02:10.:02:12.

ownership for London. Today we back him all the way. And the fifth part

:02:13.:02:18.

of our housing plan addresses the fact that more and more homes are

:02:19.:02:23.

being bought as buy to lets or second homes. Many are cash purses

:02:24.:02:33.

his -- purchases which are not restricted by the Budget when many

:02:34.:02:37.

are bought by people not in this country. People buying at home to

:02:38.:02:40.

let should not be squeezing out families who cannot afford a home to

:02:41.:02:47.

buy. I am introducing a new Stamp Duty which will be 3% higher on

:02:48.:02:52.

additional homes. It will be introduced from April next year and

:02:53.:02:56.

will consult on the details so that corporate property development is

:02:57.:03:02.

not affected. This will raise nearly ?1 billion by 2021 and we will

:03:03.:03:06.

reinvest some of that money in local communities in London and places

:03:07.:03:09.

like Cornwall which are being priced out of home ownership. The funds we

:03:10.:03:15.

will rose will help build these new homes. This Spending Review delivers

:03:16.:03:20.

a doubling of the House and budget, 400,000 new homes with extra support

:03:21.:03:25.

for London, estates regenerated, Right to Buy rolled out, paid for by

:03:26.:03:31.

attacks on buy to lets and second homes, delivered by a Conservative

:03:32.:03:34.

government committed to helping working people who want to buy their

:03:35.:03:40.

own home, for we are the builders. Mr Speaker, the fourth and final

:03:41.:03:48.

objective of this Spending Review is national security. On Monday, the

:03:49.:03:52.

Prime Minister set out to the House the strategic defence and Security

:03:53.:03:56.

review. It commits Britain to spending 2% of our income on defence

:03:57.:04:00.

and it details how these resources will be used to provide new

:04:01.:04:07.

equipment from war fighting military, new defences for our

:04:08.:04:14.

cyberspace and you just meant -- investment in our intelligence

:04:15.:04:16.

agencies. The single intelligence account will reach 2.8 billion and

:04:17.:04:20.

the defence budget will rise from ?34 billion a day. Britain also

:04:21.:04:31.

commits to spend zero x seven centre of a -- 0.7% of our commitment to

:04:32.:04:41.

the overseas budget. It is overwhelmingly in our national

:04:42.:04:49.

interest that we recommit our borders. Britain is unique in the

:04:50.:04:52.

world to making these twin commitments to funding both the hard

:04:53.:04:57.

power of military might and the soft power of international development.

:04:58.:05:01.

It enables us to project our -- protect ourselves, project our

:05:02.:05:11.

prosperity. We are supported by our outstanding diplomatic service. I'm

:05:12.:05:17.

protecting in real terms the Budget of the Foreign and Commonwealth

:05:18.:05:23.

Office. Security starts at home. Our police are on the front line of the

:05:24.:05:28.

fight to keep us safe. In the last Parliament we made savings in police

:05:29.:05:33.

budgets but thanks to the reforms of my right honourable friend the Home

:05:34.:05:35.

Secretary and the hard work of police officers, crime fell and the

:05:36.:05:39.

number of neighbourhood offices increased. That reform must continue

:05:40.:05:45.

in this Parliament. We must invest in new state-of-the-art mobile

:05:46.:05:49.

communications for our emergency services, it increased new

:05:50.:05:52.

technology at the border and increase the counterterrorism budget

:05:53.:05:57.

by 13%. We should allow policing crime commission is greater

:05:58.:06:03.

flexibility and further savings can be made in the police as different

:06:04.:06:08.

forces merge their back-office and share their expertise and we will

:06:09.:06:11.

provide a new fund to help with this reform. Mr Speaker, I have had

:06:12.:06:16.

representations from the Shadow Home Secretary that the police budget

:06:17.:06:22.

should be cut by 10%. But now is not the time for further police cuts.

:06:23.:06:27.

Now is the time to back our police and give them the tools to do the

:06:28.:06:31.

job. I am today announcing that there will be no cuts in the police

:06:32.:06:40.

budget at all. It will mean real terms protection for police funding.

:06:41.:06:50.

Mr Speaker, the police protect us and we are going to protect the

:06:51.:07:01.

police. Five years ago, when I presented my first Spending Review,

:07:02.:07:03.

the country was on the presented my first Spending Review,

:07:04.:07:08.

bankruptcy and our economy was in crisis. We took the

:07:09.:07:12.

bankruptcy and our economy was in decisions back them and five years

:07:13.:07:15.

later I report on an economy growing faster than its competitors and we

:07:16.:07:18.

are set to reach a faster than its competitors and we

:07:19.:07:23.

billion. Today we have set out the further decisions necessary to build

:07:24.:07:28.

this country's future. Some science difficult, yes. -- sometimes

:07:29.:07:36.

difficult, yes. To build the homes people need, stronger defences

:07:37.:07:39.

against those who threaten our life and build the strong public finances

:07:40.:07:44.

on which all these things depend. We were elected as a 1 nation

:07:45.:07:49.

government. Today, we delivered the Spending Review of a 1 nation

:07:50.:07:55.

government. The guardians of economic security, protectors of

:07:56.:08:00.

national security, the builders of our better future, this government,

:08:01.:08:06.

the mainstream representatives of the working people of Britain.

:08:07.:08:23.

Opposition who responds. Here is Opposition who responds. Here is

:08:24.:08:29.

Mr Speaker, like me, you will Opposition who responds. Here is

:08:30.:08:33.

witnessed many Autumn Statement and statements from the Chancellor of

:08:34.:08:38.

fixed. And you will know that there is such a thing as the iron roar of

:08:39.:08:42.

Chancellor's statements. And the iron law of Chancellor's statements

:08:43.:08:47.

Chancellor's statements. And the is the louder the cheers for the

:08:48.:08:50.

Chancellor's statements. And the the disappointment by the weekend

:08:51.:08:54.

when the analysis goes in. From what we have heard today, we do not need

:08:55.:08:59.

until the weekend for this statement to fall apart. Over the last five

:09:00.:09:05.

until the weekend for this statement years, that has barely been a target

:09:06.:09:10.

the Chancellor has set, hasn't missed or has ignored. Five years

:09:11.:09:15.

ago, the newly elected Chancellor and the Prime Minister came to this

:09:16.:09:19.

House and warned us that because of the dire economic situation our

:09:20.:09:26.

country faced, what was needed was a five-year programme of austerity

:09:27.:09:31.

measures. Job cuts, wage freezes and cuts in public services. But we were

:09:32.:09:39.

promised specifically by this Chancellor, that by today, the

:09:40.:09:49.

deficit would be eliminated. And debts would be under control. And

:09:50.:09:55.

that would be under control and falling dramatically. People put

:09:56.:10:00.

their trust in that commitment. Order. I said earlier, the Prime

:10:01.:10:07.

Minister would be heard. The Shadow Chancellor will be heard, too. If

:10:08.:10:14.

people think they are being clever shouting their heads off, don't

:10:15.:10:19.

bother trying to ask a question. Try at least to have the sense to

:10:20.:10:23.

realise the conflict between the two. Mr John McDonnell.

:10:24.:10:28.

The Prime Minister also assured us, Mr Speaker, that there would be hard

:10:29.:10:34.

earned sacrifices to be made. We were all in it together. Five years

:10:35.:10:43.

on. Can I just say today, this Chancellor has got some front to

:10:44.:10:46.

come to this House and talk about deficit and let -- lecture us about

:10:47.:10:56.

deficit reduction. Today is the day when the Chancellor was supposed to

:10:57.:11:02.

announce austerity was over, the deficit was cleared. From what we

:11:03.:11:06.

have heard today, I think they will feel betrayed. The reality is this,

:11:07.:11:12.

after five years, the deficit has not been eliminated and this year it

:11:13.:11:19.

is predicted to be over ?17 billion. Instead of taking five years to

:11:20.:11:21.

eliminate the deficit as he promised, it will take ten. And debt

:11:22.:11:28.

to GDP will not be the 69% he promised five years ago. As he said

:11:29.:11:37.

today, it would be 82.5%. We are now potentially to be quite to our

:11:38.:11:44.

children a debt of 1.5 trillion. -- to bequeath to our children. Their

:11:45.:12:01.

debt. The Chancellor continues... Both sides are still shouting their

:12:02.:12:06.

heads off. It is very down-market. It is Rory low-grade. It is Bray

:12:07.:12:11.

widely deprecated by the public. How it is that people think it is

:12:12.:12:15.

legitimate to behave in that way and reconnect with the electorate

:12:16.:12:20.

disillusioned with politics is bizarre. If some people are so

:12:21.:12:23.

unintelligent they still cannot grasp the point, I pity them. John

:12:24.:12:29.

McDonnell. After five years as Chancellor with that level of debt,

:12:30.:12:33.

there is nobody else for him to blame. There is only so long you can

:12:34.:12:38.

blame past governments. There is no more excuses for this Chancellor

:12:39.:12:44.

after five years. And we were also promised it sacrifices had to be

:12:45.:12:48.

made to tackle the deficit, not to worry, we were all in this together.

:12:49.:12:54.

No we are not. 85% of the money saved from tax and benefit cuts in

:12:55.:12:57.

the last parliament came directly out of women's pockets. Disabled

:12:58.:13:04.

people were hit 18 times harder than anybody else. 4.1 children now live

:13:05.:13:15.

in absolute poverty, an increase of 500,000 from 2009-10. And the fiasco

:13:16.:13:24.

over tax credits demonstrated once and for all that we were not in this

:13:25.:13:30.

together. At the same time as the Chancellor was planning to cut tax

:13:31.:13:35.

credits to working families, he cut inheritance tax is for some of the

:13:36.:13:40.

wealthiest families in this country. When the Chancellor and the Prime

:13:41.:13:44.

Minister were first elected to their current positions, they were

:13:45.:13:47.

attacked for being posh boys. I disagreed with that strongly. It was

:13:48.:13:52.

unfair. People don't choose what class they are born into all the

:13:53.:13:56.

wealth they inherit. Nevertheless, if you are fortunate enough to have

:13:57.:14:01.

wealth or good incomes, as with all MPs, the onus is upon us to take

:14:02.:14:08.

particular care when taking decisions for people with lives less

:14:09.:14:11.

fortunate than ourselves. What angered many in this House and

:14:12.:14:16.

across the country is the way there was no attempt by the Chancellor to

:14:17.:14:20.

understand the effects of the decision to cut tax credits. For

:14:21.:14:28.

many families it would have been a choice between children being able

:14:29.:14:34.

to go on that school trip like other children or having a decent

:14:35.:14:40.

Christmas or a winter coat. Today, the Chancellor has been forced into

:14:41.:14:46.

a U-turn on his tax credits. And I want to congratulate the members of

:14:47.:14:51.

this House on all sides who make this happen. I want to congratulate

:14:52.:14:56.

the members in the other House as well. I am glad he has listened to

:14:57.:15:01.

Labour and seen sense. But as ever, with this Chancellor, we await

:15:02.:15:08.

further clarification on the details, particularly the limit --

:15:09.:15:13.

if the limit to two children remains, and we are aware of the

:15:14.:15:18.

impact on Universal Credit. It appears the 14,000 families already

:15:19.:15:22.

on Universal Credit will still suffer the full cut. And all

:15:23.:15:27.

families who would newly qualify for tax credits in 2018 will suffer the

:15:28.:15:32.

full cut under Universal Credit. So this is not a full and fair reversal

:15:33.:15:37.

as we pleaded for. And the Chancellor remains committed to ?12

:15:38.:15:43.

billion of welfare cuts over the course of this Parliament. And we

:15:44.:15:46.

know where they will fall, on the most vulnerable, the poorest and

:15:47.:15:52.

those just struggling to survive. Some believe that the Chancellor is

:15:53.:15:58.

using the deficit and austerity to reshape the role of the British

:15:59.:16:02.

state. That this is some well thought through Machiavellian

:16:03.:16:11.

scheme. I don't any more. I am convinced this is sheer economic

:16:12.:16:14.

illiteracy, built upon incompetence and poor judgment. Today, only four

:16:15.:16:24.

weeks ago, only four weeks ago he brought to this House a charter for

:16:25.:16:31.

fiscal responsibility. A central part of that was adherence to his

:16:32.:16:37.

welfare cap, which we supported. Today, he has broken his own welfare

:16:38.:16:43.

cap. Let me say what he said before. He said himself, introducing the cap

:16:44.:16:49.

last year, breaking it would be, and I quote the Chancellor, a failure of

:16:50.:16:55.

public expenditure control. On his own terms, his own language,

:16:56.:17:02.

condemned. The Government is putting today and not invest in the future.

:17:03.:17:06.

-- cutting. He is putting us all that future risk. I want to

:17:07.:17:16.

congratulate the honourable member who campaigned on policing cuts,

:17:17.:17:25.

which has caused a U-turn. We don't forget, though... Mr Speaker, we

:17:26.:17:32.

don't forget that we faced the highest level of risk from terrorist

:17:33.:17:37.

attack in a generation. But we have already lost 17,000 police officers

:17:38.:17:46.

undercuts under this Government. We know the first line of intelligence

:17:47.:17:49.

collection, prevention and response are the local police officers in the

:17:50.:17:54.

community. So we claim today, as another Labour gain and victory. Let

:17:55.:18:05.

me say also, there are concerns now about the impact

:18:06.:18:09.

me say also, there are concerns now council cuts and bruises in

:18:10.:18:12.

expenditure on other emergency services. -- cuts and freezes. We

:18:13.:18:21.

fear for safety as more firefighters jobs are cut and fire stations

:18:22.:18:24.

closed as a result of the settlement today. In health, the Chancellor has

:18:25.:18:29.

announced he is frontloading part of the additional ?8 billion worth of

:18:30.:18:33.

funding. In reality, this will only plug some of the gap in the huge

:18:34.:18:37.

deficits health trusts are reporting. But the Government is

:18:38.:18:41.

also relying upon ?22 billion worth of unrealistic savings to be found.

:18:42.:18:49.

The extra money seems to be coming from nurse training, the public

:18:50.:18:55.

health Budget and other aspects of Local Authority Support around care.

:18:56.:18:58.

This would be a false economy that would simply cause more burdens to

:18:59.:19:03.

fall on the NHS. All the signs are that we are facing a massive winter

:19:04.:19:08.

crisis in our NHS and, yet again, we will have to rely on our

:19:09.:19:12.

professional dedication of our staff. The Health Secretary,

:19:13.:19:20.

refusing to go to ACAS to settle the junior doctors dispute is no way to

:19:21.:19:25.

maintain the morale amongst our NHS professionals. One of the greatest

:19:26.:19:37.

scandals and list -- under this to cancel has been the attack on social

:19:38.:19:43.

care. 3000 beds have been lost already. According to the

:19:44.:19:48.

Association of directors of adult services, the care preset, the 2%

:19:49.:19:52.

announced by the Chancellor, is not nearly enough to fill the funding

:19:53.:19:56.

gap this Government has created. The result is that some of the most

:19:57.:20:00.

vulnerable people in our society will be at risk and more people will

:20:01.:20:04.

be forced to resort to their local hospital for their care. We also

:20:05.:20:08.

know much more hospital for their care. We also

:20:09.:20:13.

people suffering from mental health problems and we welcome the

:20:14.:20:18.

additional funding today devoted to mental health. But it is no use of

:20:19.:20:23.

funding through the Health Service for mental health support, when

:20:24.:20:25.

Local Authority Support is being cut as a result of this settlement. More

:20:26.:20:32.

people will be left vulnerable. In education, the Government claims

:20:33.:20:35.

that school budgets will be protected. Let me say this, we fear

:20:36.:20:39.

that the Government will use the new funding formula to take away from

:20:40.:20:43.

the pupils who most need it, the most deprived. We will monitor the

:20:44.:20:53.

funding carefully to ensure equity. In today's statement, the Chancellor

:20:54.:21:05.

has announced that for further education, there will be a

:21:06.:21:08.

settlement that restricted to cash. That means that sixth form and

:21:09.:21:12.

education colleges around the country will be at threat of

:21:13.:21:17.

closure. Just at a time when the economy is crying out for a

:21:18.:21:20.

skilled, educated workforce, the Government was denying access to

:21:21.:21:24.

young people for the local courses they need. With regard to childcare,

:21:25.:21:29.

announced today, we noted his yet again, another two years, another

:21:30.:21:36.

delay in a commitment. The Chancellor's much vaunted pledge on

:21:37.:21:42.

house-building is cobbled together from reheated promises from the

:21:43.:21:46.

past, the vast majority have already been announced. The Tories should be

:21:47.:21:51.

judged by their actions, not their words. The Chancellor's first act in

:21:52.:21:55.

office was to slash housing investment by 60%. His plans today

:21:56.:22:02.

could still mean 40% less to build the homes we need, compared to the

:22:03.:22:05.

investment programme he inherited from Labour. House-building now, as

:22:06.:22:13.

a result, remains at the lowest peacetime level since the 1920s. As

:22:14.:22:18.

my honourable member for Wakefield said this morning, if hot-air built

:22:19.:22:23.

homes, Conservative Ministers would have sold our housing crisis. I

:22:24.:22:31.

worry that the vast majority of young people hoping for new homes

:22:32.:22:36.

will be disappointed by the Chancellor's failure to deliver. His

:22:37.:22:40.

record on building anything so far does not inspire confidence at all.

:22:41.:22:46.

Over the last year, the Chancellor has forced himself on to building

:22:47.:22:49.

sites all around the country, to obtain a photo with a high viz

:22:50.:22:54.

jacket. When the Chancellor did his Bob the Builder speech at Tory party

:22:55.:22:56.

Conference, what he didn't tell delegates was that his abysmal

:22:57.:23:04.

investment record, only 9% of the project started and his

:23:05.:23:07.

infrastructure pipeline in two years. In 2012, he announced a ?40

:23:08.:23:13.

billion guarantee scheme. Three years on, only 9% has been signed

:23:14.:23:21.

up. In 2011, he announced a ?20 billion pensions infrastructure

:23:22.:23:24.

platform. Four years on, only ?1 billion of commitment has been

:23:25.:23:29.

secured. The construction industry is actually shrinking and going into

:23:30.:23:32.

recession. He has also failed to invest in schools. The Royal

:23:33.:23:36.

Institute of chartered surveyors has said that the biggest infrastructure

:23:37.:23:40.

programmes could grind to a halt unless the Government adopts new

:23:41.:23:44.

measures to tackle skills and funding. The most ironic cut of all

:23:45.:23:51.

must be the virtual closure of large sections for the Department for

:23:52.:23:56.

Business, Innovation and Skills. There are 46,000 unfilled vacancies

:23:57.:24:01.

due to the lack of a skilled workforce. Naturally, the Government

:24:02.:24:05.

solution is to move to effectively close the one department tasked with

:24:06.:24:11.

improving skill levels. On the environment, the Government has

:24:12.:24:13.

announced today various measures. Let's be very clear. Government

:24:14.:24:19.

Ministers can go to the Paris summit on climate change with the proud

:24:20.:24:22.

record of nearly killing off our once flourishing solar and renewable

:24:23.:24:29.

energy sector. On international aid, let me caution, the Budget is

:24:30.:24:34.

supposedly protected, that is now to be raided for defence spending. In

:24:35.:24:42.

defence, the Government has previously commissioned an aircraft

:24:43.:24:44.

carrier, and have at least woken up to the fact that it needed aircraft

:24:45.:24:50.

as well. The funding of the defence review is to come from ?11 billion

:24:51.:24:53.

worth of cuts, with the inevitable loss of thousands of defence worker

:24:54.:24:58.

jobs, whose specialist skills will be lost for ever. Alongside these

:24:59.:25:05.

cuts, and many more, do help dig himself out of the financial hole he

:25:06.:25:09.

has got himself into, the Chancellor is selling off whatever public

:25:10.:25:16.

assets he can. This is no longer the family silver. . This is the

:25:17.:25:19.

furniture, the fixtures and fittings. We know who is first in

:25:20.:25:28.

line to buy. I never envisaged when it came to nationalising I would be

:25:29.:25:32.

egged on by a Conservative Chancellor. The only difference

:25:33.:25:34.

between us is that I would like to bring services like rail back into

:25:35.:25:38.

the ownership of the British people, the Chancellor wants to sell them to

:25:39.:25:44.

the People's Republic of China. Nationalisation is OK for him, as

:25:45.:25:47.

long as it is by any other state but ours. To assist Conrad Osborn in his

:25:48.:25:54.

dealings with new-found comrades, I have brought him along Mao's Little

:25:55.:26:06.

Red Book. Let me quote, Mr Speaker. Order! I want to hear about the

:26:07.:26:14.

contents of the book! I think you will find this invaluable. Order,

:26:15.:26:29.

you are rather an excitable one! I thought this would help him, Mr

:26:30.:26:37.

Speaker. Let's quote from Mao. The quote is this. Behave! We must learn

:26:38.:26:47.

to do economic work from all who know how, no matter who they are. We

:26:48.:26:51.

must esteem them as teachers, learning from them respectively and

:26:52.:26:56.

conscientiously. But we must not pretend to know what we do not

:26:57.:27:00.

know. I thought it would come in handy for him in his new

:27:01.:27:09.

relationship. Mr Speaker, I am sure in this debate... I am sure, Mr

:27:10.:27:19.

Speaker that Tory backbenchers will be under instruction to shoehorn

:27:20.:27:23.

into their speeches at every opportunity references to the

:27:24.:27:29.

mythical long-term economic plan. What we have been presented with

:27:30.:27:34.

today is not an economic plan for a political fix, it is not a plan when

:27:35.:27:39.

you ridiculously commit yourself to an achievable policies and leave

:27:40.:27:43.

yourself no room to manoeuvre. It is not a plan when you sell off every

:27:44.:27:48.

long-term asset you have for short-term gain. It is not a plan

:27:49.:27:51.

when you leave important industry is going to the wall, as they have done

:27:52.:27:55.

with steel. It is not a plan when you cut the support for those in

:27:56.:27:59.

work and the working families, leaving them to rely on food banks.

:28:00.:28:05.

It is not a plan when you force councils to close the very services

:28:06.:28:09.

people depend upon. It is not a plan when you invest so little in schools

:28:10.:28:13.

and infrastructure that you put our future at risk. Instead, what we

:28:14.:28:19.

have seen today is the launch of a manifesto for the Conservative

:28:20.:28:24.

leadership election. Our long-term economic security has been

:28:25.:28:26.

sacrificed for the benefit of one man's career. But I say to the

:28:27.:28:36.

honourable member for Maidenhead, and my neighbour, he is gone, the

:28:37.:28:40.

honourable member for Uxbridge, don't worry, the economic reality

:28:41.:28:44.

that is emerging in our economy will mean that this will be seen as the

:28:45.:28:51.

apex of the Chancellor's career. The honourable member for Goddard

:28:52.:29:07.

Inquiry will recognise in the Chancellor Icarus, the boy who flew

:29:08.:29:13.

too close to the sun and burned and cracked. I fear for the Chancellor

:29:14.:29:17.

it is all downhill from here. On this side of the House, we will do

:29:18.:29:21.

all we can to ensure he does not take this economy and country down

:29:22.:29:25.

with him. In the end, this debate is about what sort of society we want

:29:26.:29:33.

to live in. In the end, this debate is about what sort of society we

:29:34.:29:36.

want to live in. The Government is systematically dismantling all those

:29:37.:29:42.

aspects of society that make our community with living in and

:29:43.:29:43.

celebrating. The Chancellor is not community with living in and

:29:44.:29:57.

eliminate the deficit, but we will do it fairly and effectively. We

:29:58.:30:05.

will do it by ensuring that we end the tax cuts to the rich, we tackle

:30:06.:30:13.

tax avoidance, we invest to grow. We will grow our economy and

:30:14.:30:19.

investments in skills and infrastructure. We will become an

:30:20.:30:23.

addition to the financial centre of Europe with a research in science

:30:24.:30:27.

and technology. We will become the technology centre of Europe under a

:30:28.:30:34.

Labour government. That means high skills, high investment, high wages.

:30:35.:30:38.

That is what we are committed to on this side, this is what we will

:30:39.:30:39.

secure when we and Autumn Statement continues

:30:40.:30:56.

in the Chamber - if you want But let's take

:30:57.:31:07.

a moment now to take you through The main headline today, clearly, is

:31:08.:31:10.

Review and Autumn Statement. The main headline today, clearly, is

:31:11.:31:22.

that tax credit cuts are The main headline today, clearly, is

:31:23.:31:29.

have not been ameliorated, have not been changed, not been reformed, not

:31:30.:31:32.

been delayed, they have been avoided been changed, not been reformed, not

:31:33.:31:36.

altogether. They did been changed, not been reformed, not

:31:37.:31:40.

year, even though he only announced them in July. He also announced that

:31:41.:31:44.

education funding would be protected in real terms which takes it beyond

:31:45.:31:53.

the earlier protection he gave it in the March budget. And the other

:31:54.:31:56.

the earlier protection he gave it in headline that we got is there will

:31:57.:32:01.

be no cuts to police budgets in England and Wales. Police

:32:02.:32:07.

be no cuts to police budgets in devolved matter for Scotland, Wales

:32:08.:32:09.

and Northern Ireland. The Chancellor has decided he will not cut the

:32:10.:32:12.

police budget at all has decided he will not cut the

:32:13.:32:17.

talk beforehand. And the NHS budget in England with consequent rises in

:32:18.:32:21.

other parts of the UK will rise from its current ?101 billion a year to

:32:22.:32:32.

?120 billion by the new parliament, 2020 - 21. Housing featured large in

:32:33.:32:37.

the Chancellor's Autumn Statement as well. He has doubled the housing

:32:38.:32:42.

budget. His aim is to provide 400,000 new homes. That was leaked

:32:43.:32:47.

to the papers this morning. It is an extension of giving people a

:32:48.:32:50.

discount to buy homes provided they are under a certain value, and the

:32:51.:32:56.

share of home ownership as well. Not for rent. The apprenticeship levy is

:32:57.:33:05.

set at 0.5% of an employer's wage bill. It is designed for large

:33:06.:33:10.

employers. It is to encourage them to do their own apprenticeships,

:33:11.:33:14.

because the more people they train and give skills, the less they will

:33:15.:33:17.

have to pay this levy or they will get bits of it back. Capital

:33:18.:33:23.

spending on transport is to increase by a substantial amount to ?61

:33:24.:33:29.

billion. It is a 50% rise by 2019-20. Small business rate relief

:33:30.:33:40.

will be extended for another year. The Chancellor had to give some new

:33:41.:33:45.

economic forecasts. The first one is that public spending will rise to

:33:46.:33:52.

?821 billion by 2019-20. In other words, by the end of the Parliament.

:33:53.:33:58.

Despite what was quite a substantial rise in public spending between now

:33:59.:34:02.

and the end of the decade, the Chancellor is still predicting that

:34:03.:34:05.

as a percentage of our GDP, our national wealth, the country's

:34:06.:34:11.

national debt will start to fall now. He aims to get us into a budget

:34:12.:34:15.

surplus of just over ?10 billion by 2020. There had been a lot of

:34:16.:34:19.

speculation that he might not be able to meet that figure given the

:34:20.:34:24.

demands on extra spending, but he has added ?100 billion to show he

:34:25.:34:34.

has done a little bit better. Growth forecast for 2016 and 2017 are

:34:35.:34:40.

revised up, but only by a smidgen. Then they are down little bit

:34:41.:34:43.

later. Essentially, the OBR thinks this economy is going to grow at

:34:44.:34:49.

about 2.5% for the rest of the decade. So, what does all this mean

:34:50.:34:54.

for borrowing? He has still got quite a lot to borrow. But he aims

:34:55.:35:00.

to get it down, as he did promising in the first parliament in 2010.

:35:01.:35:05.

This year he is expecting to borrow ?73.5 billion, a little bit up on

:35:06.:35:10.

what was planned before. Next year, he hopes to get that down to ?50

:35:11.:35:15.

billion. Then another big cut, he wants to get it down to 25 billion

:35:16.:35:19.

and then he hopes to see an enormous cut down to 4 billion. By the final

:35:20.:35:28.

year of this Parliament he produces his promised ?10 billion surplus.

:35:29.:35:33.

Now, to do that, he has had to make a number of cuts but he also plans

:35:34.:35:37.

to spend a lot of money in this budget. We will have to look at how

:35:38.:35:43.

these figures work. There will be a lot of number crunching to test what

:35:44.:35:46.

the Chancellor has been saying today. On the face of it, some of it

:35:47.:35:51.

does not add up. The business department takes a cut of 17% by the

:35:52.:35:57.

end of the decade. Environment is down by 15%, energy by 22%, and the

:35:58.:36:05.

Cabinet Office by 26%. A number of departments have taken cuts, often

:36:06.:36:10.

in the administration rather than their capital investment. In

:36:11.:36:14.

transport, there is a big increase in capital investment but admin

:36:15.:36:19.

costs are slashed. On welfare, the tax credit, the police cuts will no

:36:20.:36:24.

longer go ahead. But there will be ?12 billion of welfare savings to be

:36:25.:36:29.

delivered. As this Parliament goes on, other welfare cuts will have to

:36:30.:36:33.

click into meat that 12 billion figure. The welfare cap, which the

:36:34.:36:38.

Chancellor introduced himself as a result of him deciding not to

:36:39.:36:42.

proceed with his tax credit cuts and reforms, he will breach that cap in

:36:43.:36:47.

the first year of this Parliament. He said he will fall in the cap,

:36:48.:36:52.

after that, we will see. New social housing tenants are to have their

:36:53.:36:56.

housing benefit capped, to make up for the loss in savings from not

:36:57.:37:02.

proceeding with the tax credit reforms. The NHS budget in England

:37:03.:37:13.

will rise ?101 billion to ?120 billion by 2021. The Department of

:37:14.:37:18.

health's Administration budget will see a 25% cut. They will expect the

:37:19.:37:23.

department to get a lot more efficient. Loans will replace grants

:37:24.:37:27.

for student nurses. That is something that will have to be

:37:28.:37:31.

looked at carefully as well. And local authorities which have

:37:32.:37:34.

suffered massive cuts from central funding and central government, yet

:37:35.:37:38.

have not been allowed to increase their council tax, they will now be

:37:39.:37:44.

able to raise their council tax by 2%, provided all the money they

:37:45.:37:49.

raise for that is dedicated for social care, to caring the

:37:50.:37:54.

community. And then another big government spending area, education.

:37:55.:37:58.

There will be a ?10 million increase in total education funding during

:37:59.:38:03.

this Parliament. The free 30 hours of childcare is to be limited to

:38:04.:38:07.

parents who work more than 16 hours a week, part of the Government's

:38:08.:38:14.

attempt to get part-time people to work more hours. Funding for further

:38:15.:38:17.

education colleges will be protected in cash terms, not in real terms,

:38:18.:38:22.

but when inflation is very low cash is close to real anyway. Sixth form

:38:23.:38:29.

colleges will be allowed to become academies and as a result, they will

:38:30.:38:34.

therefore no longer pay VAT and that will be quite a saving. This is a

:38:35.:38:40.

massive Autumn Statement and Spending Review. A huge amount of

:38:41.:38:45.

detail. The paperwork is only now coming into this studio. We are

:38:46.:38:50.

getting some of it online. There is a lot to pore over. The devil will

:38:51.:38:54.

be in the detail and things the Chancellor has put into the

:38:55.:38:58.

paperwork but did not bother to tell us in his announcement. He would not

:38:59.:39:00.

be the first Chancellor to do that. Now we've been joined

:39:01.:39:03.

in the studio by a man who has variously been described

:39:04.:39:06.

the "real Chancellor", "the most important man in government you've

:39:07.:39:08.

never heard of", or even "one half of George

:39:09.:39:11.

Osborne's brain". He's Rupert Harrison, and he used to

:39:12.:39:18.

be George Osborne's chief of staff. He now works for

:39:19.:39:25.

the massive fund managers Blackrock, and he's joined us for what I

:39:26.:39:27.

believe is his first TV interview. It is. Come out from behind the

:39:28.:39:35.

curtain! But first let's get some reaction

:39:36.:39:39.

to the speech from our editors. George Osborne wants to see this as

:39:40.:39:52.

after the rescue of the economy to the rebuilding of the economy. We

:39:53.:39:55.

should not lose sight of something he said at the beginning of the

:39:56.:40:01.

speech, by 2020 the state will make up nearly 30% of national income,

:40:02.:40:06.

compared to 50% when he took office as Chancellor. That is a very

:40:07.:40:11.

significant reshaping of the balancing of the economy. The huge

:40:12.:40:15.

cheers from the Conservative benches today don't hide that there were big

:40:16.:40:20.

climb downs in their, that were not about his political ideology and

:40:21.:40:25.

rhetoric but reality. Most importantly on tax credits. Not

:40:26.:40:30.

tinkering, not tweaking but dropping those cuts altogether. There will be

:40:31.:40:33.

cuts to Universal Credit, the replacement. That is a big victory

:40:34.:40:38.

for the House of Lords, the Labour Party, some Tory backbenchers

:40:39.:40:43.

including Boris Johnson. The second big climb down was not cutting the

:40:44.:40:49.

police budget at all. Many people believe in the last few days in

:40:50.:40:53.

Westminster, after what happened in Paris, it was just not politically

:40:54.:40:56.

possible to go ahead with the kind of cuts that had been expected.

:40:57.:41:04.

Interestingly, two very big changes. Labour will claim them as

:41:05.:41:09.

victories. Rather conveniently from George Osborne, that kills off

:41:10.:41:14.

Labour's two strongest attacks on the Government at a time when they

:41:15.:41:18.

have not been very effective of putting him under pressure. I want

:41:19.:41:22.

to come to Robert Peston in a minute. Before I do, Kamal Ahmed,

:41:23.:41:31.

what is the takeaway for business? How George Osborne can balance those

:41:32.:41:36.

books is a huge movement of costs in pretty significant ways. Firstly,

:41:37.:41:42.

there is the social care issue. A new tax-raising power will be given

:41:43.:41:45.

to local authorities to pay for social care. Private care providers

:41:46.:41:49.

who complain about the cost of social care will

:41:50.:41:52.

who complain about the cost of raised from that will not

:41:53.:41:55.

who complain about the cost of enough. There will still be a ?1

:41:56.:41:56.

billion shortfall. enough. There will still be a ?1

:41:57.:42:04.

billion to be raised on the enough. There will still be a ?1

:42:05.:42:12.

million apprentices he says by 2020. Again, putting the duty on the

:42:13.:42:15.

private sector to deliver on things like skills, so vital to our

:42:16.:42:20.

economy, and of course on housing. Direct funding support for housing

:42:21.:42:26.

businesses, building companies, to build houses themselves, again

:42:27.:42:32.

saying private sector, it is up to you to solve the supply-side problem

:42:33.:42:38.

in housing. As I said before, there are lots of questions about whether

:42:39.:42:42.

the housing industry can deliver and actually want to deliver and has the

:42:43.:42:44.

skills to deliver. actually want to deliver and has the

:42:45.:42:50.

this will be a monotonous repetition over the next few weeks, the whole

:42:51.:42:54.

issue of announcing big numbers on capital investment, on transport.

:42:55.:42:58.

issue of announcing big numbers on They are only announcements, they

:42:59.:42:59.

are not delivery. The Government has They are only announcements, they

:43:00.:43:05.

big scheme is the Chancellor says we need to make sure our economy is

:43:06.:43:07.

thriving in the future. I need to make sure our economy is

:43:08.:43:13.

the Autumn Statement was delivered, is there was a big move from

:43:14.:43:17.

responsibility on local is there was a big move from

:43:18.:43:21.

devolved powers and the private sector to deliver. Robert,

:43:22.:43:31.

the Budget, that he is not increasing any

:43:32.:43:32.

the Budget, that he is not there are tax rises built

:43:33.:43:35.

the Budget, that he is not he is spreading money around all

:43:36.:43:37.

over the place, yet he still says he will reach the surplus. Is there

:43:38.:43:43.

something going on here that we don't yet

:43:44.:43:47.

something going on here that we out by the Office for Budget

:43:48.:43:54.

Responsibility, the agency he created,

:43:55.:43:56.

Responsibility, the agency he higher tax revenues than it was

:43:57.:44:02.

expecting only in July, and a significant reduction in interest

:44:03.:44:04.

payments on the significant reduction in interest

:44:05.:44:10.

debt. And so just to be clear, that is not to do with new taxes imposed

:44:11.:44:17.

today, that is just the OBR being more optimistic and it says the

:44:18.:44:21.

reason it is more optimistic is because it has new data on the rate

:44:22.:44:23.

at which taxes are because it has new data on the rate

:44:24.:44:29.

which has allowed it to make what it thinks is a rational judgment. Let's

:44:30.:44:36.

be clear, these are judgments. They are not unbelievably

:44:37.:44:38.

be clear, these are judgments. They scientific forecasts. The OBR might

:44:39.:44:42.

get it wrong. But George Osborne is banking that windfall. You can see

:44:43.:44:49.

that in perhaps the most important statement in the OBR's enormous book

:44:50.:44:54.

it publishes, when it says the direct effect of

:44:55.:44:57.

it publishes, when it says the policy decisions, has been to push

:44:58.:45:04.

borrowing higher between 2016-17 and 2019-20. What that means is the

:45:05.:45:09.

things he has done today, reversing, for example, the cuts in tax

:45:10.:45:15.

credits, for example, freezing the Budget for the police, and actually

:45:16.:45:22.

limiting cuts in individual departments, cuts in departments are

:45:23.:45:27.

significantly less than we expected or that he outlined. They will be 12

:45:28.:45:32.

billion versus the 20 billion he was talking about only a few weeks ago.

:45:33.:45:36.

So the direct effect of all of that is to push are being higher, but

:45:37.:45:42.

borrowing actually comes down, because the OBR things that the

:45:43.:45:48.

economy's ability to generate taxes is better than it was. Just to

:45:49.:45:58.

reinforce the point that Kamal Ahmed makes, it is a big shift. It's

:45:59.:46:05.

terribly important, in terms of shifting costs, from doing quite a

:46:06.:46:11.

lot of the stuff that we expect the state to do, to the private sector.

:46:12.:46:15.

Let me get to Rupert Harrison. How is it credible to suddenly produced

:46:16.:46:21.

a ?27 billion underlying improvement in the nation's finances between

:46:22.:46:27.

July and November? Well, it is an interesting pattern. If you think

:46:28.:46:31.

about George Osborne's period being Chancellor, in a sense, the first

:46:32.:46:35.

few years were a period where we saw downgrades to the growth forecast,

:46:36.:46:38.

we had the eurozone crisis. The second half of the last Parliament

:46:39.:46:42.

was the period when the economy looked to be picking up, but tax

:46:43.:46:45.

receipts were not picky about the same rates. It looks like we are

:46:46.:46:49.

possibly into a third phase where, finally, the tax receipts have

:46:50.:46:54.

started to come through. Think the OBR are moving from what was quite a

:46:55.:46:57.

cautious view on that, perhaps because the economy is growing, they

:46:58.:47:00.

are a bit more confident about earnings. The OBR is saying during

:47:01.:47:06.

this Parliament there will be ?47 billion in extra tax, without

:47:07.:47:10.

putting tax up, because of tax buoyancy. Where is the evidence for

:47:11.:47:15.

that? If you look at the October borrowing figures, the October

:47:16.:47:19.

borrowing figures were the worst since October 2009 and that was

:47:20.:47:24.

partly because tax receipts underperformed, in every major

:47:25.:47:30.

category. Corporation tax, income tax, national insurance. How does it

:47:31.:47:35.

suddenly produce an extra ?47 billion? There are for that, we

:47:36.:47:41.

always told to not put too much onto one month's data. For the whole of

:47:42.:47:46.

the financial year it is still bad. The OBR have seen those figures last

:47:47.:47:50.

week, but they will not have had a chance to radically change their

:47:51.:47:52.

forecast because of them, and probably nor should they. You should

:47:53.:47:58.

always evaluate these big events by the hand the Chancellor was dealt

:47:59.:48:02.

and how he chose to play at. He was dealt, by a growing economy and more

:48:03.:48:07.

tax receipts, a better hand than he expected. Interestingly, he chose to

:48:08.:48:11.

play that hand by essentially taking risks off the table. Instead of

:48:12.:48:16.

snazzy, new tax cuts or giveaways, he has essentially taken the tax

:48:17.:48:20.

credit issue of the table completely, he's taken police cuts

:48:21.:48:25.

off the table. That is a sign that first of all we are early in the

:48:26.:48:28.

Parliament, it is a phase where any money you have, you are about

:48:29.:48:31.

reducing risks, and a reflection of the fact that we have a government

:48:32.:48:37.

now that does not have a majority in the House of Lords and a very small

:48:38.:48:41.

majority in House of Commons. But he is taking risks, he is spending the

:48:42.:48:46.

tax buoyancy the are predicting. The OBR is assuming that the extra

:48:47.:48:51.

growth is going to produce more tax receipts. But the increase in the

:48:52.:48:58.

OBR forecasts are infinitesimal, 0.1 of a percentage. You were in the

:48:59.:49:02.

Treasury. The OBR has no idea if the economy is going to go and grow by

:49:03.:49:11.

2.2%, or 2.4%, but the Chancellor has banked it? They are not his

:49:12.:49:17.

numbers, they are independent numbers he gets given. I think the

:49:18.:49:20.

OBR has been at the gorgeous end of the spectrum. Their growth forecast

:49:21.:49:24.

is still relatively cautious compared to other forecasters like

:49:25.:49:32.

the anchoring them. Not for 18-19, 17-18. Well, if you look at

:49:33.:49:39.

independent forecasters... Well, the city... Well, they have been at the

:49:40.:49:44.

more cautious end. The main criticism from the Chancellor's

:49:45.:49:47.

opponents has always been, you are cutting too much, there is no need

:49:48.:49:52.

to run a surplus. The main accusation is that he is too

:49:53.:50:00.

cautious and you don't need a ?10 billion surplus. So it's hard to

:50:01.:50:03.

believe he's taking risks on that front. I want to ask you one

:50:04.:50:07.

question, why did he make such a complete Horlicks of tax credits?

:50:08.:50:17.

Well, we mustn't lose side of the party still making ?12 million of

:50:18.:50:22.

savings... Why did he allow the Tory party to be branded as the workers

:50:23.:50:27.

party, the next thing he does is smash the working poor? It's

:50:28.:50:31.

difficult to save money. You've got to see this in the context of a

:50:32.:50:35.

consolidation that is over ?100 billion. That has not been done in

:50:36.:50:39.

this country in living memory. You're not going to get everything

:50:40.:50:43.

right. In the last Parliament, probably lost in the midst of

:50:44.:50:47.

political history now, we proposed after being on jobseeker's allowance

:50:48.:50:53.

for a year it will be cut by 10%. It didn't go down well, we dropped it.

:50:54.:50:56.

We dropped it. Would take child benefit away from higher rate

:50:57.:51:00.

taxpayers, it didn't go down well, we changed the threshold from

:51:01.:51:05.

42,000, to between 50,000 and 60,000. When you are making 100

:51:06.:51:09.

billion plus savings, you're not go to get everything right. He's

:51:10.:51:12.

decided, when you have a problem, fix it properly so you don't have to

:51:13.:51:16.

come back to down the line. He has to Dennis -- listened to Dennis

:51:17.:51:25.

Healey. But one of the things that wasn't answered is why it took the

:51:26.:51:28.

Chancellor so long to recognise the size of the problem. For weeks and

:51:29.:51:32.

weeks, the Treasury were digging themselves further in. They were

:51:33.:51:35.

determined there would be no mitigation. When he finally

:51:36.:51:39.

realised, or perhaps it was pointed out to him by Number 10, just how

:51:40.:51:42.

bad this might have been around the time just before the Lords defeat,

:51:43.:51:46.

in the end he saw he would have to change course. But what someone

:51:47.:51:50.

described to me as that moment, when he really decided he wanted to be

:51:51.:51:54.

Prime Minister, rather than a successful Chancellor, and that is

:51:55.:51:58.

when he doubled down. I think that is a little unfair. The thing about

:51:59.:52:02.

Government, the policy is the policy until the policy changes. You can't

:52:03.:52:07.

go hinting you might be changing. After today, what people are going

:52:08.:52:10.

to remember is that he ditched the tax credit cuts. They are not going

:52:11.:52:15.

to remember that he spent months with people speculate on. We will!

:52:16.:52:21.

You will, Andrew... I suspect you are not representative of most

:52:22.:52:28.

voters. That's an outrageous suggestion to make! What people will

:52:29.:52:34.

get is that he ditched it and listened. There are some

:52:35.:52:39.

counterintuitive issues here, raised by the OBR. One is that you have

:52:40.:52:49.

growth remaining pretty robust, in a global economy, which is quite a lot

:52:50.:52:53.

weaker than we thought it was going to be a few months ago. You are also

:52:54.:52:58.

increasing the costs that are being imposed on the private sector and

:52:59.:53:04.

yet expecting the private sector to increase its investment, not to lay

:53:05.:53:10.

people off. Just intuitively, one wonders whether actually this is

:53:11.:53:15.

going to work out quite as the OBR and the Chancellor assumes. I think

:53:16.:53:19.

you've got to put what are relatively small tweaks today in the

:53:20.:53:22.

context of the big picture. He still public spending, as a share of GDP,

:53:23.:53:28.

down towards 36%. That is merely historical lows in recent history. A

:53:29.:53:34.

quick question from you? Rupert, has the housing supply issue, which has

:53:35.:53:38.

been a big boots in 2010, how much has that been an issue around the

:53:39.:53:43.

house-building companies simply not having the energy or the desire to

:53:44.:53:51.

deliver on housing? If you speak to executives in the house-building

:53:52.:53:54.

sector, their profits are already up 40%. They feel full stretch to, they

:53:55.:53:58.

have a massive skills shortage and they don't seem to be convinced,

:53:59.:54:02.

although they will make warm noises about the announcement is the

:54:03.:54:04.

Chancellor made, how much of a problem was that for you and how can

:54:05.:54:09.

it be solved? It's a good question, it is one of the biggest economic

:54:10.:54:12.

issues we face as a country. House-building rates are beginning

:54:13.:54:15.

to pick up. There are two big factors, one is the one you're

:54:16.:54:20.

talking about. One is planning, and I think it is a bit better and

:54:21.:54:23.

planning is easier to get. There was an issue that if we go back to the

:54:24.:54:27.

boom years, when more houses were being built, about half of the

:54:28.:54:30.

houses were being built by the big guys that people are talking about.

:54:31.:54:34.

There was a whole other sector in the market, the small builder that

:54:35.:54:38.

would build three or four, sell them, and move on and build another

:54:39.:54:41.

one, a lot of them got wiped out or they are still in debt and the banks

:54:42.:54:52.

won't lend to them. Skills shortage is a huge issue. It has been since I

:54:53.:54:55.

was in short trousers. Do getting into politics after this?

:54:56.:55:01.

I'm very happy doing what I am doing.

:55:02.:55:04.

I'm very happy doing what I am learned not to answer questions, you

:55:05.:55:06.

should try learned not to answer questions, you

:55:07.:55:12.

doing. Thank you for being with us. Enough comment from Westminster,

:55:13.:55:15.

let's go back to Birmingham and Jo Coburn.

:55:16.:55:18.

So much to chew over and digest after the Autumn Statement on

:55:19.:55:25.

Spending Review. The improved state of public finances has given George

:55:26.:55:28.

Osborne a little more wriggle room, hence he announced he would not go

:55:29.:55:30.

ahead with some big planned hence he announced he would not go

:55:31.:55:35.

be known as the building Chancellor, not just the cutting

:55:36.:55:38.

Chancellor. With that in mind, my guest here, the Conservative leader

:55:39.:55:41.

of Solihull Council, Bobsleigh. guest here, the Conservative leader

:55:42.:55:46.

now we have the Midlands Engine, is it as good as it sounds? The new

:55:47.:55:51.

unlocks it as good as it sounds? The new

:55:52.:55:59.

investment. He is devolving the skills Budget, and there are other

:56:00.:56:08.

funds available for the future. It will transfer into real growth in

:56:09.:56:09.

this region? ?36.5 million a will transfer into real growth in

:56:10.:56:19.

utilise to create The big headline, the thing he faced

:56:20.:56:30.

most opposition to was the cuts to tax credits. He says they are not

:56:31.:56:34.

going to go ahead, but Labour have already said it is not a fool of

:56:35.:56:39.

their reversal of the planned cuts. Is that how you see it as well? Many

:56:40.:56:45.

working families would have struggled to cope with a cut to tax

:56:46.:56:50.

credits, it is welcome news that is to be avoided. Working families will

:56:51.:56:58.

be relieved to hear that. It is important that people prepare for

:56:59.:57:08.

the future. We already see people struggling with debt, balancing

:57:09.:57:12.

bells and childcare. If you have worries about your finances or

:57:13.:57:16.

questions, come to court to citizens advice, get advice and we will help

:57:17.:57:19.

you think things through. Was your first impression that these families

:57:20.:57:28.

will now have more time for transition in the hope that they

:57:29.:57:33.

will get higher wages? Absolutely, it is important that people have

:57:34.:57:36.

time to prepare and come to citizens advice to help them do that. One of

:57:37.:57:42.

the other big announcements is the councils councils will be allowed to

:57:43.:57:46.

put on council tax, up to 2%, as long as it is hypothecated

:57:47.:57:49.

specifically for social care. At higher council tax bills, what will

:57:50.:57:56.

that mean for your customers? Council tax issues is one of the

:57:57.:58:00.

biggest issues we help people with at citizens advice. It's so people

:58:01.:58:03.

can have advice to manage those changes. For shoppers, just weeks

:58:04.:58:09.

before Christmas, they will be thinking about the money in their

:58:10.:58:12.

back pocket and how it is going to affect their personal finances. One

:58:13.:58:17.

of the big announcements was also about the state pension. With us is

:58:18.:58:20.

our personal finance expert, Danny Shaw. Pensions are going to go up?

:58:21.:58:28.

We knew this, there wasn't a lot in the Autumn Statement, something we

:58:29.:58:32.

didn't know, we had already worked out how much the state pension was

:58:33.:58:37.

going to be, because of the triple lock. We knew, as soon as the

:58:38.:58:40.

inflation and earning figures came out, how much that was going to be.

:58:41.:58:46.

It is going up by ?3.35, up to ?119.30. That is what they call the

:58:47.:58:56.

old state pension, the one before the April 2016 changes. The key

:58:57.:58:59.

thing that is new, which we know because George Osborne announced it

:59:00.:59:03.

for the first time, this new state pension, the flat rate pension, not

:59:04.:59:08.

flat rate when you look at the nitty-gritty of it, it will be

:59:09.:59:13.

?135.65. George Osborne has always said it would be above the level of

:59:14.:59:18.

pension credit, under the old system. It is a measly 5p. He has

:59:19.:59:24.

kept his promise, but not by a great deal. We will leave it there, keep

:59:25.:59:30.

your questions coming in and we will try to get some of those the next

:59:31.:59:35.

time we come on. Thanks, as they were saying in

:59:36.:59:38.

Birmingham, the state pension is going up to over ?119. If you were

:59:39.:59:44.

worried about losing tax credits as a result of the July Budget, that

:59:45.:59:54.

will now not happen. You will not see a reduction in welfare until

:59:55.:59:58.

Universal Credit comes in. If you are worried that the Government come

:59:59.:00:01.

at a time of heightened security threat, was going to cut police

:00:02.:00:05.

numbers further than the Chancellor said, he is not going to do so.

:00:06.:00:09.

Those are some of the issues that affect everybody in the country,

:00:10.:00:12.

rather than just a great number crunching. The number crunching is

:00:13.:00:17.

important, because it tells us whether or not the Chancellor's

:00:18.:00:37.

predictions are credible. We are puzzled by how the Chancellor,

:00:38.:00:39.

determined to get a surplus by the end of the Parliament, has so much

:00:40.:00:43.

money to do so many things. Is it credible? He has got a bit lucky

:00:44.:00:55.

because he will be spending less on debt increase. He has increased

:00:56.:01:00.

taxes reasonably significantly. There is a 3 billion impost on

:01:01.:01:03.

business to pay for the new apprentice ship. Was it in the

:01:04.:01:09.

Labour manifesto? I do know. I think it might have been! Carry on. It was

:01:10.:01:15.

not in the figures in July. There are increases council tax as well.

:01:16.:01:23.

He has increased taxes a bit and he is going to use most of that money

:01:24.:01:29.

to damp down the cuts in spending. Because those cuts and spending were

:01:30.:01:36.

on a relatively limited part of government, the effect of a bit of

:01:37.:01:41.

extra money is to significantly reduce the overall level of cuts.

:01:42.:01:47.

But we knew, everyone is assuming the economy will grow by roughly

:01:48.:01:52.

2.5% a year until the end of the decade, that is the assumption the

:01:53.:01:56.

projections are based on, we knew that interest rates were staying low

:01:57.:02:01.

for another while yet and that would affect the debt interest, the

:02:02.:02:05.

service on the national debt that he had to pay. We know that if an

:02:06.:02:09.

economy is growing there is a certain buoyancy at some stage in

:02:10.:02:14.

tax revenues. So if we knew all that, why does all this come as a

:02:15.:02:20.

surprise? Therein lies the risk. The changes in the OBR's forecast are

:02:21.:02:25.

pretty small. They are five years out in terms of tax revenue. They

:02:26.:02:32.

are genuinely small changes. The Chancellor has used most of those

:02:33.:02:37.

changes essentially to add a bit to the spending, to reduce the spending

:02:38.:02:42.

cuts he otherwise would have done. The risk for him, if that turns a

:02:43.:02:45.

little bit again as they may well do, he will either have to do more

:02:46.:02:50.

in terms of tax increases or go back to those departments and cut them

:02:51.:02:54.

further. Remember in the last Parliament, when things looked

:02:55.:02:58.

worse, he did not increase spending cuts to meet his target. This time,

:02:59.:03:02.

when things are looking a bit better, he is not using that to have

:03:03.:03:06.

a bigger surplus or have tax cuts, he is using it to protect public

:03:07.:03:17.

services. This is the Chancellor's third Budget this year. We had the

:03:18.:03:20.

March budget, the July Budget and now the autumn Spending Review. If

:03:21.:03:26.

it is a 27 billion difference in the underlying improvement in revenues

:03:27.:03:30.

in July of this year and mid-November when this was put

:03:31.:03:36.

together, he probably should have a Budget of every three months now if

:03:37.:03:43.

the figures are so wrong! Please, don't wish for such a thing! 27

:03:44.:03:46.

billion is one of the silly numbers. It has accumulated over three or

:03:47.:03:51.

four years will stop it only comes up to four or 5 billion at the end,

:03:52.:03:57.

plus the has about 6 billion of tax increases at the end. The reason it

:03:58.:04:02.

makes such a big difference is that he is actually only playing with

:04:03.:04:07.

quite a small bit of public spending. The whole of welfare is

:04:08.:04:13.

separate. Health, MOD and so on. Why did you not see this coming? We

:04:14.:04:19.

don't do anything unless you tell us. We have always said there is a

:04:20.:04:25.

lot of risk around. There is gearing between the small amount of spending

:04:26.:04:30.

and small changes on borrowing and interest rates which may result. If

:04:31.:04:34.

you look at the numbers, there are still big cuts in departments. There

:04:35.:04:40.

is a 15% cut for justice. There are big cuts day-to-day spending for

:04:41.:04:46.

transport. There is 12 billion of cuts for the unprotected

:04:47.:04:49.

departments, which is still a big number. It is a big and substantial

:04:50.:04:52.

additional cut. It is not quite as big as it would have been on the

:04:53.:04:57.

July budget numbers, because the Chancellor has decided to use the

:04:58.:05:01.

extra money he has, not to cut taxes or to increase the surplus at the

:05:02.:05:05.

end, but to protect public services. To that extent, in a way,

:05:06.:05:14.

given the political strategy was to move the Conservatives on to the

:05:15.:05:17.

centre ground, as they saw Labour moving to the left, and there were a

:05:18.:05:20.

lot of things in the July budget which had been in the Labour

:05:21.:05:24.

manifesto, this budget, including the U-turns on tax credits and

:05:25.:05:29.

police numbers, is a kind of continuation of that strategy? It

:05:30.:05:34.

certainly using the money not to do the very conservative things like

:05:35.:05:38.

cut taxes and increased spending. He has used it to increase spending. On

:05:39.:05:43.

the tax credit point, it is terribly important to be clear that he has

:05:44.:06:08.

changed nothing in the long run. In the long run, the cuts to Universal

:06:09.:06:11.

Credit that were announced in the July budget, which are of a similar

:06:12.:06:14.

scale to the cuts in the tax credits will come in. In the long run, he is

:06:15.:06:17.

saving just as much and politically, he has got through that and that is

:06:18.:06:20.

through... It is a matter of time and phasing. To summarise, the kind

:06:21.:06:22.

of cuts that were envisaged in the July tax credit statement, do

:06:23.:06:24.

eventually come down in a different way by the time Universal Credit

:06:25.:06:27.

comes in? People on tax credits should realise that? No one will

:06:28.:06:30.

face the tax losses they will face. Even as you go on to Universal

:06:31.:06:32.

Credit, you are protected relative to what you are on. In the long run,

:06:33.:06:36.

every new claimant will get the new lower amount. Mr Osborne is

:06:37.:06:39.

achieving what he wants to achieve on the welfare state which is in the

:06:40.:06:46.

long run... He has postponed it. What point would you like to make,

:06:47.:06:53.

Robert? I think if you look at all the managed government spending, it

:06:54.:06:58.

is now flat in real terms adjusted for inflation throughout Parliament,

:06:59.:07:04.

in other words, actually, this is not a government which is any longer

:07:05.:07:08.

cutting. This is probably the moment when one can say austerity, in the

:07:09.:07:14.

extreme form certainly, is over. Within that, because there are a

:07:15.:07:18.

number of departments which get useful increases, so defence up 2.3%

:07:19.:07:25.

adjusting for inflation, that is reasonable increase. Health, up a

:07:26.:07:30.

little bit more 3.3% adjusting for inflation, because of these

:07:31.:07:35.

protected departments, there are reasonably big cuts elsewhere. And

:07:36.:07:38.

one should not underestimate it, this will be painful for those who

:07:39.:07:45.

depend on the services provided by those departments, but this is not

:07:46.:07:47.

the kind of Armageddon those departments, but this is not

:07:48.:07:50.

were talking about before those departments, but this is not

:07:51.:07:56.

shift. Laura, do we see this budget, now that Paul

:07:57.:08:04.

shift. Laura, do we see this budget, cut taxes, to increase public

:08:05.:08:08.

spending, not to cut the police, is it a continuation of the

:08:09.:08:12.

Chancellor's strategy to put his tanks on the centre ground?

:08:13.:08:16.

Chancellor's strategy to put his no question about it. Dick Lee after

:08:17.:08:20.

George Osborne's speech at the conference, that was an attempt to

:08:21.:08:27.

roll his tanks onto the lawn -- particularly after George Osborne's

:08:28.:08:33.

speech. We four years away from a general election with the Labour

:08:34.:08:36.

opposition who have not found a groove yet. I think that may well

:08:37.:08:44.

all be part of the story today. We have so much to pack in, even in

:08:45.:08:50.

four hours, I have to be ruthless. Paul Johnson, we look forward to

:08:51.:08:56.

seeing you. The press conference tomorrow? Of course. Excellent. One

:08:57.:09:11.

of the tomorrow? Of course. Excellent. One

:09:12.:09:15.

announcement was he decided there would be no further cuts to police

:09:16.:09:19.

budgets in England and Wales. There has been a meeting of chief

:09:20.:09:26.

constables and an elected police and crime commission is taking place in

:09:27.:09:27.

Manchester Town Hall today. This was a very unexpected

:09:28.:09:47.

announcement. We were all expecting cuts of 2225% in England and Wales.

:09:48.:09:51.

At the Chancellor would pull a rabbit out of the hat to soften the

:09:52.:09:59.

blow. Instead, he said no cuts to policing until 2020. To join me,

:10:00.:10:04.

first of all Kevin Hurley, the police and crime commission for

:10:05.:10:07.

Surrey. You were in the hall watching the announcement. What was

:10:08.:10:14.

the response? It was almost euphoria if your team had scored a goal. We

:10:15.:10:20.

should remember we were already in the process of implementing cuts. So

:10:21.:10:26.

all is not well in the world. We will see further reductions in

:10:27.:10:29.

policing on the earlier cuts, but this is good news. Fair play on the

:10:30.:10:33.

Chancellor. He has listened and we are happy with what has happened so

:10:34.:10:39.

far. Can you explain why you have to make further cuts? Should it not

:10:40.:10:48.

stop in 2016? No, because the budgets are decided upstream. Some

:10:49.:10:52.

forces will be significant. In Surrey, it is not so bad. The good

:10:53.:10:56.

news we are hearing is the Chancellor will also allow us to

:10:57.:11:00.

take some extra money on the council tax precept for police, which means

:11:01.:11:06.

some forces like mine in view wealthier south can be completely

:11:07.:11:11.

cosseted from all of this. It will not be quite as good in the North.

:11:12.:11:17.

Professor Steve Davis, what do you think has brought about this shift

:11:18.:11:22.

in George Osborne's thinking? I think he has got better than

:11:23.:11:25.

expected figures for the annual growth rates. He thinks the higher

:11:26.:11:31.

tax receipts will save him the political pain of having to make

:11:32.:11:35.

such large cuts. Just to add something to what Kevin said, there

:11:36.:11:45.

was a 31% real increase in spending between 2001 and 2010, the cuts we

:11:46.:11:50.

have now have taken us back to where we were in 2003 and 2004. I do not

:11:51.:11:56.

remember there being a collapse in policing at that time. If the

:11:57.:12:01.

expected cuts had taken place it would take us back to where wearing

:12:02.:12:14.

2001. They will be changing a lot of plans but there are some things

:12:15.:12:18.

which have already been put through. They should think about how they

:12:19.:12:22.

might reorganise the way they work, provide policing perhaps in

:12:23.:12:26.

different ways. Do we really need 43 police forces, for example? Why do

:12:27.:12:31.

we have each police force buying its own equipment and own kit? It makes

:12:32.:12:34.

a lot of sense to do that nationally. You should always be

:12:35.:12:40.

thinking about that. Private-sector businesses typically look to reduce

:12:41.:12:45.

their costs by 4% every year. There is no why people in the public

:12:46.:12:50.

sector should not also look to spend money more effectively. A final word

:12:51.:12:55.

for Kevin. News about extra funding for firearms capabilities? That is

:12:56.:13:04.

good news. But I share the point, 43 police forces is a silly business

:13:05.:13:09.

model. I would like to be the first police and crime commission to be

:13:10.:13:13.

redundant. I don't patrol the beat, other people do. If George Osborne

:13:14.:13:19.

and Theresa May are listening, I'm sure they will take note for the

:13:20.:13:23.

next round of budget cuts and budget plans. That is the view from

:13:24.:13:27.

Manchester. Thank you, Danny, that is the first

:13:28.:13:35.

voluntary redundancy offer we have had! Let's go to Jane Hill.

:13:36.:13:44.

Thank you. Baroness Susan Kramer is with me and Douglas Carswell,

:13:45.:13:49.

Ukip's MP. We were just listening to that interesting segment and you

:13:50.:13:53.

made some strident point about what is going on here. On the face of it,

:13:54.:13:59.

positive of course, no cuts to the police in England and Wales. George

:14:00.:14:03.

has said no cuts to the police budget, but in the small print we

:14:04.:14:08.

will see a massive increase in the police precept. The Government in

:14:09.:14:12.

Whitehall will not get blamed for that but local Police and Crime

:14:13.:14:15.

Commissioners will get it in the net. George has been clever in

:14:16.:14:21.

shifting responsibility to find finance for the police. Clever

:14:22.:14:26.

politics? It is good politics. I am not sure it is great for the

:14:27.:14:30.

country. We need a Chancellor who understands what we need at this

:14:31.:14:34.

time. This is the first year that the Home Office budget will be less

:14:35.:14:38.

than the overseas aid budget. I do not think it is clever policy at

:14:39.:14:44.

all. This will be really tough on deprived communities. There will be

:14:45.:14:48.

a charge turning up to pay for the police, a charge turning up to pay

:14:49.:14:53.

for old people, that is the social care budget, and it will fall

:14:54.:14:59.

hardest on the deprived communities. At the same time, they

:15:00.:15:02.

will get less money on their business rates if they are deprived

:15:03.:15:06.

communities. If you are Kensington and Chelsea you can go home laughing

:15:07.:15:11.

but if you are deprived community you got whacked today. There is more

:15:12.:15:16.

pressure and responsibility put on local councils? I worry about the

:15:17.:15:21.

bus network as well. We just heard the central Department for transport

:15:22.:15:24.

will have its operational budget slashed. Does that mean paying for

:15:25.:15:29.

buses outside the big cities, that that will all fall on councils as

:15:30.:15:33.

well? I think there are a lot of issues we need to be worried about.

:15:34.:15:38.

I think she is basically right. If I could sum it up, this is a Blairite

:15:39.:15:46.

Budget. The Labour Party has lurched so to the extreme left, it has

:15:47.:15:51.

created the space for a Blairite Budget. Like the Blairite budgets of

:15:52.:15:55.

the past, it sounds a lot better than it turns out to be. There is a

:15:56.:15:59.

lot in the small print I think we are going to find quite unpalatable.

:16:00.:16:03.

Susan, do you understand how he has done it? Still talking about welfare

:16:04.:16:08.

cuts, and yet a U-turn on tax credits, which I assume, as a

:16:09.:16:11.

Liberal Democrat, makes you very happy? We still have ?12 billion in

:16:12.:16:20.

welfare cuts, so it is coming. There has been some nudging about what is

:16:21.:16:23.

going to come in in terms of tax receipts and borrowing to offset

:16:24.:16:25.

some of the changes. We still have ?12 billion in cuts to welfare. I'm

:16:26.:16:30.

delighted he stop the cuts to tax credits forwarding families. One of

:16:31.:16:34.

the ironies is, had George Osborne been a House of Lords, he would have

:16:35.:16:38.

voted for the Democrat motion to absolutely kill those cuts in tax

:16:39.:16:41.

credits stone dead. He would not have voted with the Labour Party or

:16:42.:16:46.

the Conservatives. Interesting. Susan Kramer and Douglas Carswell,

:16:47.:16:47.

thank you for your reactions. It looks like the sun has come out

:16:48.:16:58.

there. We are always kept in the dark, we never know what is

:16:59.:17:00.

happening. We were grateful for that feature. A moment ago, we went

:17:01.:17:07.

through a number of issues that came up in the Budget. Let's go through

:17:08.:17:11.

them again. Here are the main measures announced in the Autumn

:17:12.:17:16.

Statement and Spending Review. Tax credits, announced only in the July

:17:17.:17:23.

post-election Budget, they have been cancelled in their entirety. There

:17:24.:17:29.

will still be Universal Credit coming in which will embody some of

:17:30.:17:32.

what the tax credit cuts had involved. We will talk about that in

:17:33.:17:37.

a moment. There will be no cuts to the police Budget in England and

:17:38.:17:43.

Wales. It was thought the Chancellor was under pressure to reduce the

:17:44.:17:47.

cuts he was planning. The result is that there are no cuts at all. I

:17:48.:17:50.

think the word Paris comes to mind when you look at that. NHS Budget in

:17:51.:18:03.

England will rise, and the consequent rises for the help

:18:04.:18:10.

budgets in Scotland, Wales and Northern Ireland as well. As local

:18:11.:18:14.

authorities are squeezed, in one of their main roles in the community,

:18:15.:18:17.

to provide social care, as that money gets squeezed there will be

:18:18.:18:22.

allowed to increase council tax by 2% to pay for social care. And only

:18:23.:18:31.

social care, too. We have a ?10 billion increase for education and

:18:32.:18:34.

childcare. That is through the life of the Parliament, over a 4-5 year

:18:35.:18:39.

period. There is an apprenticeship levy set at 0.5% of the employer's

:18:40.:18:47.

wage bill. This is mainly designed for major employers, to encourage

:18:48.:18:50.

them to do more to give people apprenticeship some skills. If they

:18:51.:18:53.

do that, they get some of that levy back. It's not a new idea, it was

:18:54.:18:59.

introduced by the Wilson government in the 1960s. There it is, round

:19:00.:19:05.

again. 400,000 new homes, the story that was leaked overnight to the

:19:06.:19:14.

broadcasters, 400,000 new homes. The Government getting into the property

:19:15.:19:17.

development business. It seems to have a pot of money of about ?7

:19:18.:19:27.

billion to be able to do it. Capital spending on transport is to rise by

:19:28.:19:32.

50%, by the end of this decade, even as the administrative bill for the

:19:33.:19:36.

transport Department is cut. We spoke a little while ago to the

:19:37.:19:42.

former advisor for George Osborne, giving his first interview on

:19:43.:19:45.

television. We are joined by another former adviser, Matt Hancock,

:19:46.:19:51.

television. We are joined by another definitely not his first TV

:19:52.:19:53.

interview and probably will not be his last

:19:54.:19:56.

interview and probably will not be judge of that! A Minister

:19:57.:20:01.

interview and probably will not be Department of honesty and admit that

:20:02.:20:03.

if it hadn't been for the attacks in Paris, we would not be seeing a

:20:04.:20:09.

freeze in any further cuts to the police Budget? The Spending Review

:20:10.:20:14.

has been in the planning for several months, I don't know exactly when

:20:15.:20:16.

the decision was taken. Crucially, the whole purpose of the Spending

:20:17.:20:23.

the decision was taken. Crucially, Review is centred around national

:20:24.:20:27.

the decision was taken. Crucially, goes back to the manifesto. We

:20:28.:20:30.

the decision was taken. Crucially, out the manifesto, it was about

:20:31.:20:30.

national and out the manifesto, it was about

:20:31.:20:33.

National Security includes all of the defence items we outlined

:20:34.:20:35.

earlier this week. It is the defence items we outlined

:20:36.:20:41.

safety closer to home. Before the defence items we outlined

:20:42.:20:44.

Paris, the Home Secretary was digging in his heels to try to avoid

:20:45.:20:49.

cuts to police budgets. The Treasury was pushing them to come up with

:20:50.:20:54.

more for the departmental cuts. Now there are to be no cuts. What

:20:55.:20:59.

happened in between? It is Paris. It would seem crazy,

:21:00.:21:01.

happened in between? It is Paris. It think, for a Conservative

:21:02.:21:05.

government, or any government, to proceed with cuts to the police

:21:06.:21:08.

Budget beyond what you have introduced? That is the truth of the

:21:09.:21:13.

situation? I don't know exactly when the decision was taken. The question

:21:14.:21:17.

is, what do you do over a four year Spending Review? How do you spend

:21:18.:21:23.

the ?4 trillion worth of taxpayer money? As national security and

:21:24.:21:30.

economic security are the bedrock of what we feel that we were elected

:21:31.:21:33.

on, I think it is perfectly reasonable to make sure the police

:21:34.:21:37.

are protected. At a time when this country faces the greatest terrorist

:21:38.:21:42.

threat in its history, terrorist threat, not the greatest threat, the

:21:43.:21:46.

Nazis beat that one, but the greatest terrorist threat, bigger

:21:47.:21:51.

even than the 30 year terrorist threat from the IRA, in what way

:21:52.:21:54.

does it make sense for the overseas aid Budget to be bigger than the

:21:55.:21:57.

Home Office Budget, as Douglas Carswell just said? Well, hold on,

:21:58.:22:01.

look at what we are going to be doing with the aid Budget. Of

:22:02.:22:04.

course, you have to be working right around the world. We have a moral

:22:05.:22:11.

obligation to the world's poor. We also redirecting the aid Budget to

:22:12.:22:21.

support those on Europe's borders. It might work down the road, but you

:22:22.:22:25.

have been following the news in Paris and Belgium, you will be aware

:22:26.:22:28.

that a lot of bad guys are already here. Overseas aid is for future

:22:29.:22:36.

years, they are here or heading here now, and yet you are spending more

:22:37.:22:39.

on overseas aid and you are on the Home Office, does that make sense?

:22:40.:22:44.

The whole package makes sense. We are protecting the police budget,

:22:45.:22:51.

increasingly counterterror element of the budget by 20%. We are

:22:52.:22:56.

increasing conventional defence with the defence review. I'm talking

:22:57.:23:00.

about the terrorist threat. Crucially, we are making sure when

:23:01.:23:04.

we spend aid money we are spending it at source, try to stop the

:23:05.:23:10.

terrorist threat that source. But my point is that these people, that

:23:11.:23:14.

might stop them... My point is that might stop them coming in five

:23:15.:23:18.

years' time, what a couple of hundred million will do in Somalia,

:23:19.:23:25.

Sudan Syria is another matter, I'm talking about the ones that are

:23:26.:23:29.

already here. We need to tackle both, you are absolutely right. We

:23:30.:23:35.

had to support police domestic, we have to support counterterrorism

:23:36.:23:38.

officers and agencies, but we also have to do everything we can to stop

:23:39.:23:43.

failed states and to make sure that, in those refugee camps, people do

:23:44.:23:47.

not come here with the risk attached, especially if foreign

:23:48.:23:52.

fighters come, of bringing terrorism with them. I think an overall

:23:53.:23:57.

package that includes protection at home and trying to support failed

:23:58.:24:02.

states on Europe's borders makes sense. You have to look at the whole

:24:03.:24:08.

thing as a package. What kind of government comes up with a major

:24:09.:24:11.

change to tax credit in July and then abandons it in November? Well,

:24:12.:24:16.

we've got an improved set of forecasts, these forecasts said

:24:17.:24:21.

there was ?27 billion extra, and that allows us to bring the debt

:24:22.:24:27.

down faster than we were planning to in the July Budget, and also to

:24:28.:24:30.

spend more on capital infrastructure, which is important,

:24:31.:24:34.

I think he would probably agree. Where you wrong to introduce them in

:24:35.:24:38.

the first place? I thought they were sensible measures. Why are you not

:24:39.:24:43.

proceeding with them? Obviously we lost in the House of Lords. You

:24:44.:24:47.

could have gone back. The difference between then and now, in the new

:24:48.:24:52.

forecasts, the OBR, who are independent, said they expect ?27

:24:53.:24:56.

billion extra. I think it is a reasonable use of some of that money

:24:57.:24:58.

to mitigate the impact of the change. The key point is this, on

:24:59.:25:05.

benefits, we were elected on a Monday to find ?12 billion worth of

:25:06.:25:09.

benefits savings. -- on a mandate. You never told us what they would

:25:10.:25:15.

be. We didn't specifically say what they would be. We are going to meet

:25:16.:25:18.

the 12 billion, but do it in a different way to how we set out at

:25:19.:25:21.

the previous Budget. But we've got the money to do it. Can we stay in

:25:22.:25:26.

the Department Of Honesty and be clear that although the tax credit

:25:27.:25:30.

cuts are not going to get people now, when Universal Credit comes in,

:25:31.:25:33.

elements of what you were planning to do in tax credits will be

:25:34.:25:37.

introduced, you will limit the child element to two children from April

:25:38.:25:42.

17, you will abolish the family element in tax credits with ?425 per

:25:43.:25:48.

year. This is some pain for the poorest families postponed, not

:25:49.:25:54.

eliminated? That's not quite right, we are still making the ?12 billion

:25:55.:25:58.

worth of savings that we said we would in the manifesto. We are

:25:59.:26:01.

meeting the ?10 billion surplus by the end of the Parliament we set out

:26:02.:26:06.

in July. The difference is, when people move on to Universal Credit,

:26:07.:26:11.

unless their circumstances change they are protected and so they do

:26:12.:26:15.

not lose cash, in cash terms. That means that you can make this

:26:16.:26:22.

transition in a far more sensible way, and make sure that we get the

:26:23.:26:27.

savings, the benefits of the spending by the end of the

:26:28.:26:29.

Parliament that are just as big as we planned. And, crucially, it is

:26:30.:26:34.

delivering on what we promised in the manifesto. We are up against it,

:26:35.:26:38.

not just in terms of time, but we have to deal parts of the great BBC

:26:39.:26:43.

multifarious empire that we are broadcasting to. It's interesting

:26:44.:26:52.

when you go to the detail, an accountancy firm has come up with

:26:53.:26:56.

analysis of what it means, this is actually a tax-raising Autumn

:26:57.:26:59.

Statement, the tax-raising on businesses. You have the

:27:00.:27:02.

apprenticeship levy, you have the Stamp Duty increase that we have

:27:03.:27:07.

spoken about. You also have a lot of transference of grants for research

:27:08.:27:12.

and development support being changed into loans. But they are cut

:27:13.:27:17.

in corporation tax? They are, but when you go to the detail, I'm

:27:18.:27:20.

looking at the business department, the Government will reduce the

:27:21.:27:25.

teaching grant by ?120 million. They are changing student maintenance

:27:26.:27:29.

grants to loans. There are a lot of cuts that are small scale, there

:27:30.:27:33.

will be overwhelmed by the amounts on tax credits, by the announcements

:27:34.:27:39.

on security, but in here is a lot of tax-raising power that actually

:27:40.:27:42.

means that this is not a giveaway Autumn Statement in the slightest,

:27:43.:27:45.

but is raising large amounts of money, as well as all of the

:27:46.:27:51.

issues. What other bits are hidden in the small print? Loads and loads

:27:52.:27:55.

of changes, because we are reforming the way the stage works. You have

:27:56.:27:59.

hidden loads of changes in the small print? No, the Chancellor set out

:28:00.:28:03.

the big things in the statement, then we published the book. On the

:28:04.:28:10.

business changes, the Chancellor said that there is a 17% saving in

:28:11.:28:14.

the business Department. Of course there is. There do have to be

:28:15.:28:18.

savings. They are not as big, about half as big as the last Parliament,

:28:19.:28:23.

but there are savings. You spend most of the last Parliament

:28:24.:28:27.

attacking Labour for being far too optimistic in forecasting rises in

:28:28.:28:30.

tax revenues when it was in power and then spending on the back of

:28:31.:28:34.

that. Some would say there is a shift, some would describe it as a

:28:35.:28:39.

bit of hypocrisy that here we have a Chancellor that always said he is

:28:40.:28:46.

conservative, banking on these huge forecasts in increases in tax

:28:47.:28:53.

revenues, which may be illusory. The last figures, which were terrible

:28:54.:28:59.

for that, were not included in the figures. This is the independent

:29:00.:29:05.

Office for Budget Responsibility, I'm glad that politicians no longer

:29:06.:29:10.

do it themselves and it is done independently by experts. Thank you,

:29:11.:29:14.

Matthew Hancock, probably not your last interview. We are here on BBC

:29:15.:29:20.

Two until 3:30pm. It is time to say goodbye to viewers on the BBC News

:29:21.:29:21.

Channel. Now the Government has promised to

:29:22.:29:24.

continue to protect the English NHS budget, but that doesn't mean there

:29:25.:29:27.

aren't still tough times ahead Our health editor Hugh Pym

:29:28.:29:29.

is outside UCLH in London. Yes, Andrew, we learned a lot about

:29:30.:29:49.

the funding for the NHS in England yesterday, with quite a significant

:29:50.:29:53.

increase for next year, and then going through to 2020. The

:29:54.:29:58.

settlements for Scotland, Wales and Northern Ireland will become clearer

:29:59.:30:01.

with the detail of the Spending Review documents. Today we have also

:30:02.:30:04.

learned that there will be cuts in other areas of health. There will be

:30:05.:30:06.

reductions in public health, other areas of health. There will be

:30:07.:30:09.

local authorities, and student nurses and midwives will have to

:30:10.:30:15.

start paying tuition fees and for their own maintenance, and borrow

:30:16.:30:21.

money. That actually could result in more training places. I am joined

:30:22.:30:24.

here at UCLH by Andrew Haldenby from the think-tank Reform, and Rob

:30:25.:30:28.

Webster of the NHS Federation. What do you make the overall picture? I

:30:29.:30:39.

think the Chancellor has taken a gamble. He will try and make the NHS

:30:40.:30:45.

more productive to cope with tighter money later on. I am not confident

:30:46.:30:49.

that the NHS will become more efficient and productive in order to

:30:50.:30:54.

help in the later years of the parliament. Efficiency savings are

:30:55.:30:57.

still needed and we have not heard a lot more detail on that at all, have

:30:58.:31:03.

we? The Chancellor's big pitch today was more money. I think the NHS

:31:04.:31:07.

needs more productivity and more reform. Our work indicates that the

:31:08.:31:19.

progress on that is slow. Rob Webster, what do you make about the

:31:20.:31:22.

specific issue of student nurses and midwives having to pay for their own

:31:23.:31:25.

tuition? Will that deter people? The universities have been lobbying for

:31:26.:31:26.

more time to open this up. universities have been lobbying for

:31:27.:31:34.

workforce which is committed to the NHS as it goes through this change

:31:35.:31:41.

is a fundamental issue for the future. We should welcome the

:31:42.:31:44.

upfront investment to help us do that. It does not make the need for

:31:45.:31:51.

that to go away though. Big change is coming over the next five years.

:31:52.:31:56.

Do you think public health budgets being cut will make it harder for

:31:57.:32:02.

the NHS? Both public health and social care remain a concern for us.

:32:03.:32:06.

A good shiny NHS cog in a broken machine will not work for patients.

:32:07.:32:15.

We need to focus on prevention will stop fundamentally, we need to

:32:16.:32:16.

ensure that social care is stop fundamentally, we need to

:32:17.:32:19.

because older people need joined up services, whether it is their care

:32:20.:32:23.

needs or their health needs. Quick word on the social care issue. What

:32:24.:32:28.

have we learned today? The Government is worried about social

:32:29.:32:33.

care. It will let governments raise taxes to pay more for social care.

:32:34.:32:37.

It is not changing the services. A bit of extra money is not a

:32:38.:32:43.

long-term solution. There were no long-term solutions. Thank you both

:32:44.:32:48.

at UCL eight in central London, thank you for joining us. Back to

:32:49.:32:52.

you, Andrew -- UCLH. thank you for joining us. Back to

:32:53.:32:57.

The health service will be going over all that Frey carefully. It is

:32:58.:33:00.

a lot of money for the health service but it is still under huge

:33:01.:33:04.

pressure. Social care we see as part of our overall health service. Local

:33:05.:33:12.

authorities will have some tax leeway. I guess the problem is, the

:33:13.:33:17.

places where social care is most needed to be provided by the state,

:33:18.:33:19.

the inner cities, are probably the needed to be provided by the state,

:33:20.:33:24.

places where a 2% rise on council tax does not get you very much. This

:33:25.:33:29.

is the sort of thing which puts the fear of God into places like

:33:30.:33:35.

Liverpool where I was recently. It is a very interesting line in here

:33:36.:33:39.

which shows that the transfer from central government to local

:33:40.:33:45.

authorities is shrinking to almost nothing. At the moment, it is more

:33:46.:33:53.

than ?11 billion. It jinxed almost ?5 billion over the course of the

:33:54.:33:57.

parliament, because one of the Chancellor's big ideas is to

:33:58.:34:02.

transfer much more revenue raising to the local authorities themselves,

:34:03.:34:07.

which is brilliant, if you are in a wealthy constituency, or in a

:34:08.:34:13.

wealthy local authority, but it is a disaster if you have got not support

:34:14.:34:18.

people. I think we are at the beginning of a fairly big debate on

:34:19.:34:21.

this. There are lots of people across the political spectrum who

:34:22.:34:26.

think devolution of powers is a good thing in principle, because you want

:34:27.:34:32.

local people to connect much more closely with local politicians and

:34:33.:34:37.

local services, but if it means a massively widening gap between

:34:38.:34:40.

services available in a poor region compared to a rich region, then

:34:41.:34:44.

there are going to be a lot of very unhappy people out there. It is a

:34:45.:34:49.

very interesting big idea, but it could be very painful and parts of

:34:50.:34:53.

the country and there may be parts of the country which the Tories are

:34:54.:34:58.

just writing off as places that could ever win.

:34:59.:35:02.

I have just been told we have to go to College Green. Let's go back to

:35:03.:35:07.

College Green where it is not Jane Hill, it is me, I have to do

:35:08.:35:15.

everything on this programme! Let's go to Leanne Wood, the head of Plaid

:35:16.:35:21.

Cymru. Good to see you. The Welsh block ground is going to go up, the

:35:22.:35:26.

Chancellor has introduced a new funding formula for Wales and you

:35:27.:35:29.

will be able to have your own income tax if you want it, you must be over

:35:30.:35:35.

the moon with this? No, I am not! There are some snippets of good news

:35:36.:35:39.

in the announcement today but overall I think people are Wales

:35:40.:35:44.

will feel worse off as a result. The impact potentially on local

:35:45.:35:48.

government and all of those areas that are not health risks, in some

:35:49.:35:53.

cases, some of our local services collapsing altogether, and of

:35:54.:35:57.

course, household budgets are likely to take a squeeze, despite the

:35:58.:36:01.

announcement on tax credits, because what we don't know is the impact on

:36:02.:36:05.

other benefits like housing benefit and that will hit the same people.

:36:06.:36:12.

So I am not feeling joyful about this announcement today. I would

:36:13.:36:16.

like to have seen a reverse of the cuts and investment in

:36:17.:36:18.

infrastructure and investment in people. Caroline Lucas, I don't

:36:19.:36:24.

think you will be over the moon about anything! That is quite

:36:25.:36:31.

unfair! For me, I think it is a major missed opportunity. We are a

:36:32.:36:34.

few days before the Paris climate talks and I would love to have seen

:36:35.:36:38.

a massive investment in energy efficiency and home insulation, not

:36:39.:36:43.

just because that will get our climate emissions down, but it will

:36:44.:36:47.

tackle fuel poverty and people who cannot afford to keep their houses

:36:48.:36:50.

warms and it would have created thousands of jobs as well. It is a

:36:51.:36:56.

real wasted opportunity that he has not done it. Leanne Wood, you have

:36:57.:37:01.

the Welsh Assembly elections coming up, the Greens could do well and

:37:02.:37:05.

Plaid Cymru, if you had your own income tax powers in Wales, what

:37:06.:37:09.

would you make of the basic interest rate and the top rate. I am not in a

:37:10.:37:14.

point to give you that information at this point in time. We have not

:37:15.:37:21.

got the power yet. You must have thought about it and dreamt of it.

:37:22.:37:26.

And our priority would be to maximise the amount of money in the

:37:27.:37:32.

Budget. Would you increased tax? There are different rates of tax. We

:37:33.:37:36.

would look at what we want to do with each of those. Regardless of

:37:37.:37:41.

even if we kept the tax rates as they are, the fact that you are

:37:42.:37:45.

investing in job creation and then able to realise the benefits from

:37:46.:37:52.

that is the purpose of having income tax powers. Would you like the Welsh

:37:53.:37:58.

Assembly to increase tax, Caroline Lucas? Our Wales Green Party is

:37:59.:38:03.

independent and it is up to them but the Green Party is not shy on saying

:38:04.:38:06.

people on higher incomes should pay more tax. Meanwhile, talking about

:38:07.:38:12.

this Autumn Statement right now, what we are concerned about is the

:38:13.:38:19.

way that it is really falling on the way the vulnerable people are making

:38:20.:38:23.

those cuts. In Brighton and there are more cuts to children's centres

:38:24.:38:27.

and some of the real resources people depend on, and at the same

:38:28.:38:31.

time, we are seeing a really dismissive attitude to nurses in the

:38:32.:38:35.

NHS. On the one hand, George Osborne is trying to pretend this is

:38:36.:38:38.

something positive about ensuring they can have loans, but actually,

:38:39.:38:43.

they are cutting their bursaries. This is bad news for the NHS. Thank

:38:44.:38:50.

you, we thank you for joining us on this BBC News special on the

:38:51.:38:54.

Spending Review. Let's go now to Northern Ireland and

:38:55.:39:00.

our political editor Mark Devenport. What is the view from Belfast on

:39:01.:39:04.

what is happening? I think there is a general welcome on the

:39:05.:39:08.

Chancellor's U-turn on the tax credits. Northern Ireland is one of

:39:09.:39:13.

the places in the UK with the lowest incomes and the estimate that more

:39:14.:39:17.

than 100,000 households would have been very seriously affected by the

:39:18.:39:22.

original tax credit changes. The political deal we had last week at

:39:23.:39:28.

Stormont including ?240 million that the local executive set aside for

:39:29.:39:33.

mitigating the tax credit cuts. They have got a nice headache now. They

:39:34.:39:37.

have to work out what they will spend the money on. Mark, we will

:39:38.:39:42.

leave it there. Thank you. So, as we zoom around the

:39:43.:39:47.

country from Belfast to Birmingham, we are only going to places

:39:48.:39:48.

beginning with the. Let's go back to Jo Coburn

:39:49.:39:50.

in Birmingham now. Did the Chancellor's figures add

:39:51.:40:03.

up? It is all about the numbers driving forward a city like

:40:04.:40:06.

Birmingham. He said he will be able to eliminate the deficit and still

:40:07.:40:13.

have a ?10 billion surplus at the end of this Parliament. So, Jonathan

:40:14.:40:20.

Isaby from the taxpayers Alliance, do the figures add up? The devil is

:40:21.:40:24.

in the detail. We certainly welcome that commitment. It is the right

:40:25.:40:29.

thing to do. But the OBR's economic forecast which was more positive

:40:30.:40:33.

than expected, gave him far more room for manoeuvre but I feel it is

:40:34.:40:38.

a missed opportunity, this Spending Review. Rather than expand deficit

:40:39.:40:41.

reduction at a faster pace, he seems to have found more ways to spend

:40:42.:40:46.

that money. Wouldn't it be better to spend that money on public services,

:40:47.:40:58.

rather than pay down the deficit at this point in the parliamentary

:40:59.:41:00.

cycle? There are things the state has to do. Reshaping and redefining

:41:01.:41:03.

the whole role of the state. This is the very moment when he had a big

:41:04.:41:07.

opportunity to do some big robust and radical things, when there is a

:41:08.:41:12.

frankly weak opposition against him. So in your mind, a bit of a

:41:13.:41:20.

missed opportunity. There will be those who will welcome his

:41:21.:41:23.

announcement that he will not go ahead with the cuts to tax credits

:41:24.:41:27.

or not yet. And there was more money going into health. We can speak to a

:41:28.:41:32.

representative from the health union Unison. The Taxpayers' Alliance said

:41:33.:41:40.

was a missed opportunity. The money that George Osborne has announced so

:41:41.:41:46.

far is a drop in the ocean. When I speak to our members they say

:41:47.:41:49.

they're worried and still worried about crisis in the winter. The 2%

:41:50.:41:57.

that George Osborne announced is a small amount compared to what is

:41:58.:42:00.

required. How small amount compared to what is

:42:01.:42:04.

often hear about there being a winter crisis. It has not happened

:42:05.:42:08.

in quite the way it has been predicted in recent years, thank

:42:09.:42:15.

goodness, and we'll say here that more money has to be put in. It has

:42:16.:42:18.

been chronically underfunded for a number of years. We will need

:42:19.:42:21.

several billion pounds more going into social care. Social care, if we

:42:22.:42:25.

don't have the right social care in place for older people, when they

:42:26.:42:29.

are coming out of hospital, what happens is they stay in hospital

:42:30.:42:33.

until the social care provision can be found and they are preventing

:42:34.:42:36.

other people from using those hospital beds and then we will get a

:42:37.:42:41.

crisis in A There will be an increase in trips and falls and I

:42:42.:42:44.

think we will see a real problem in A George Osborne did not just

:42:45.:42:49.

want to be known as the cutting Chancellor. Let's talk to a business

:42:50.:42:58.

here in Birmingham, and interiors business run by Rob. Thank you for

:42:59.:43:03.

coming onto the programme. The house-building programme George

:43:04.:43:07.

Osborne was talking about will be good news for you? Fantastic news

:43:08.:43:12.

for us and our clients building new homes across the country. Is it

:43:13.:43:17.

enough in terms of providing the number of homes that are needed

:43:18.:43:23.

after we have had a housing crisis? I think time will tell. I think it

:43:24.:43:26.

is building the right homes in the right places for the right people.

:43:27.:43:32.

What about Stamp Duty? It has had quite a big effect on our business

:43:33.:43:37.

and our clients. They have significantly increased Stamp Duty

:43:38.:43:41.

and I think they thought it would generate more tax. I think it has

:43:42.:43:46.

done the opposite. People have stopped moving and stopped buying

:43:47.:43:51.

over ?1 million. Thank you, back to you, Andrew. Thank you.

:43:52.:43:57.

We are joined now by Stewart you, Andrew. Thank you.

:43:58.:44:04.

the deputy leader of the SNP. The Chancellor has announced ?4 billion

:44:05.:44:09.

for the health service, Scotland will get a consequent increase as

:44:10.:44:13.

well, will the Scottish government spend that increase on health? Yes,

:44:14.:44:17.

the Scottish government have been clear that the money will be spent

:44:18.:44:22.

on the health service and that is good news for people in Scotland.

:44:23.:44:26.

Why have you not kept pace with health spending in Scotland compared

:44:27.:44:33.

to England over the last five years? There has been a real terms increase

:44:34.:44:39.

over the last Parliament. I think the increase was ?450 million.

:44:40.:44:45.

Without -- we are now spending more than ?12 billion a year on the NHS

:44:46.:44:50.

in Scotland and it is the most successful part of the NHS in the

:44:51.:44:55.

UK. Were doing the right thing in very straitened times and I think it

:44:56.:45:00.

has been a very good result but the challenges the NHS has had to face.

:45:01.:45:05.

You must be very grateful not having to sit in Edinburgh and thinking

:45:06.:45:08.

about having to put together a Scottish budget, given that oil

:45:09.:45:14.

revenues are 95% below what you were forecasting them to be by this

:45:15.:45:15.

stage? Scotland isn't responsible for North

:45:16.:45:24.

Sea oil. Unfortunately, that was one of the areas that was not devolved.

:45:25.:45:32.

With one of the business taxes that we could craft real solutions for

:45:33.:45:37.

Scotland, they have not been delivered. The package set by the UK

:45:38.:45:42.

includes the softening and yield from the softening oil price. It is

:45:43.:45:47.

not softening in yield, it is a collapse of 95%. In the second

:45:48.:45:52.

quarter of this year, oil revenues were negative, the taxpayer

:45:53.:45:57.

subsidise the industry. If you had voted for independence, you would

:45:58.:46:01.

have had the power, and you would have had an ?8 billion black hole in

:46:02.:46:06.

your fiscal plans. We heard the statement today, we see that the

:46:07.:46:11.

national debt is still forecast to reach ?1.6 trillion. I think any

:46:12.:46:14.

short-term or cyclical issue with taxi yield from one source or

:46:15.:46:19.

another, however difficult it may be over short or medium term, is as

:46:20.:46:23.

nothing compared to the UK black hole, approaching 90%... And

:46:24.:46:29.

independent Scotland would have inherited 10% of that national debt.

:46:30.:46:35.

That would have been your share. On top of that, you would have an ?8

:46:36.:46:39.

billion shortfall in oil revenues. You would have been cutting

:46:40.:46:43.

hospitals, you would have been closing schools, you would really

:46:44.:46:47.

have been the party of austerity. The good news is that we are

:46:48.:46:50.

actually building schools, opening hospitals. Sure, because you lost

:46:51.:46:56.

the referendum. We are investing a record amount to the NHS. Because

:46:57.:47:04.

you lost! The fact you are trying to reframe the referendum... Not at

:47:05.:47:08.

all! It shows the obsession you have. We have just had a Spending

:47:09.:47:13.

Review, where the Chancellor boasted he still plans to cut ?42 billion a

:47:14.:47:20.

year out of the Budget, more than he needs to to run a balanced economy.

:47:21.:47:24.

I think we should focus on the impact that will have for real

:47:25.:47:26.

people, rather than the hypotheticals you want to keep

:47:27.:47:34.

posting. Well, cutting hospitals and schools have an impact on people

:47:35.:47:40.

beyond the Westminster bubble. But the Scottish Government will have

:47:41.:47:42.

some substantial tax-raising powers, are you going to use them? We will

:47:43.:47:49.

have modest powers, if the UK Government and Scottish Government

:47:50.:47:51.

agree on a fiscal framework that works for the people of Scotland. I

:47:52.:47:56.

am more than happy to say this again, we will use every power we

:47:57.:47:59.

can to the very best of our ability. Let nobody be under any

:48:00.:48:04.

illusion, this is not a substantial package of powers, it is a modest

:48:05.:48:08.

group of powers. I am still not sure if you're going to use them or not,

:48:09.:48:12.

but no doubt we will have an opportunity to return to that.

:48:13.:48:15.

Stewart Hosie, thanks for being with us. What are you thinking now? How

:48:16.:48:24.

is this going to develop? Kamal is going through the detail. There is a

:48:25.:48:28.

lot of detail, when you add the small numbers up, there is plenty to

:48:29.:48:31.

keep the papers and the broadcaster is busy between now and the weekend?

:48:32.:48:36.

There are cuts in here. George Osborne has made the political

:48:37.:48:38.

choice to try to stick to the centre and slow them down, using that

:48:39.:48:44.

sunnier outlook of the economy. But there are cuts in here. What we

:48:45.:48:47.

often find with big set piece statements like today, it is the

:48:48.:48:52.

cuts that might seem like rounding errors, or a margin on a Treasury

:48:53.:48:56.

spreadsheet here or there that do blow up into real political

:48:57.:49:00.

embarrassments. Don't forget, back in 2012, this Government got

:49:01.:49:04.

themselves into trouble over pasties and sausage rolls. And caravans!

:49:05.:49:10.

Don't forget caravans. Things that seem small end up being problems.

:49:11.:49:13.

There will be areas that will be very significant for members of the

:49:14.:49:16.

public. There are further changes to housing benefit that will be

:49:17.:49:20.

difficult for some people. There are changes to the Employment and

:49:21.:49:23.

Support Allowance, sick pay, as most people would call it. There are

:49:24.:49:27.

changes in Universal Credit that will replace tax credit. Frank

:49:28.:49:31.

Field, a prominent opponent of tax credit changes, is already saying

:49:32.:49:35.

this afternoon, and a Universal Credit, families with two children

:49:36.:49:41.

will still stand to lose ?2500 a year. Some of the problems are still

:49:42.:49:46.

there? Yes, and while I think George Osborne will be pretty content with

:49:47.:49:49.

the overall political picture, does that mean that today he is somehow

:49:50.:49:55.

away scot-free from everything in this statement? Not a bit of it.

:49:56.:50:02.

Give us just a quick taste? I would suggest to anybody that can be

:50:03.:50:07.

bothered to go through these documents, and Efficiency And

:50:08.:50:10.

Reform, I think that will be the key to start swapping some of the

:50:11.:50:15.

numbers. I have gone through the business department, I'd love that

:50:16.:50:19.

transport, picking a couple. Reduce the teaching grant by ?120 million

:50:20.:50:27.

in cash terms. What they call ?360 million of efficiency and savings

:50:28.:50:34.

from the adult skills budget, a massive issue for people trying to

:50:35.:50:39.

retrain. In transport, we have a cut to the transport for London budget,

:50:40.:50:46.

which will mean a grand reduction of ?700 million by 2020. A big impact

:50:47.:50:53.

on transport on the city that we are in today. The little speckles of

:50:54.:50:59.

cuts, and also the big issue, always a bit slippery, digitisation. Big

:51:00.:51:02.

government computer schemes will save loads of money. That has always

:51:03.:51:09.

been the case in the past(!) How often have we heard that will be the

:51:10.:51:14.

case, for these systems to blow up in the Government's face and cost

:51:15.:51:22.

more money than expected. Just like the better economic schemes and tax

:51:23.:51:25.

receipts, they have banked some of the money early. They have said that

:51:26.:51:28.

the Department for Transport digitisation will save ?94 million.

:51:29.:51:33.

Well, they haven't done it yet, so let's watch those numbers. Given the

:51:34.:51:37.

BBC record of computerisation, we might just move on from that issue.

:51:38.:51:45.

Here is the political rub, I would suggest, if the rosy scenario should

:51:46.:51:49.

turn out to be a false goddess, it will start to blow just about the

:51:50.:51:55.

time, say 2018, when the Chancellor will be measuring the curtains, he

:51:56.:51:58.

would hope, for Number 10 Downing Street? That is what is slightly odd

:51:59.:52:03.

about the decisions he has made today. As I said, given that

:52:04.:52:11.

actually he is less popular than he was, I would have thought the would

:52:12.:52:17.

want to get the bad news out early in this Parliament, and then build

:52:18.:52:21.

from there, instead of which, he has tried, with his U-turn on tax

:52:22.:52:27.

credits, he is trying to do a U-turn in terms of opinion about him. He's

:52:28.:52:33.

trying to make himself loved again. There is a risk that the OBR is too

:52:34.:52:40.

optimistic on tax revenues. If it turns out that way, he will have a

:52:41.:52:48.

bit of egg on his face. May be a whole omelette! As you have heard

:52:49.:52:52.

from Laura, apart from his personal ambition, a huge political judgment

:52:53.:52:57.

here. George Osborne wants the Tories to win from the centre, not

:52:58.:53:03.

the right. This is his big strategic shift, to move the Tory party into

:53:04.:53:08.

ground that was Tony Blair's ground. He was a huge admirer of Tony Blair.

:53:09.:53:14.

He has seen Labour moved to the left and he wants Tony Blair's space. On

:53:15.:53:19.

the Labour response, I would guess from the early commentator

:53:20.:53:22.

responds, that Mr McDonnell's reaction is not going to be too

:53:23.:53:27.

kindly treated, even in the centre-left papers tomorrow? I don't

:53:28.:53:30.

think standing up and waving around a copy of the Little Red Book and

:53:31.:53:37.

quoting Chairman Mao will go down as being a wise decision for a

:53:38.:53:39.

politician whose great criticism has been made of over the fact of how

:53:40.:53:45.

left-wing he is. Many people in the Labour Party will look at that. We

:53:46.:53:50.

had hoped we would be able to speak to the Shadow Chancellor, John

:53:51.:53:53.

McDonnell, this point. He has been detained in the Conference chamber,

:53:54.:53:57.

we are told. The Shadow Chief Secretary to the Treasury can join

:53:58.:54:01.

us. What has happened to Mr McDonnell? Why can't we speak to

:54:02.:54:05.

him? We are delighted to have you, of course, why can't we speak to

:54:06.:54:09.

him? I understand he is still in the chamber and has other commitments.

:54:10.:54:13.

As you know, it is a pretty busy afternoon. Ed Balls always found

:54:14.:54:18.

time. Never mind, we are delighted to have you. Mr McDonnell criticised

:54:19.:54:23.

the Chancellor for racking up too much debt, ?1.6 trillion, for the

:54:24.:54:29.

deficit being too high. I thought was his position, your position,

:54:30.:54:33.

your party's position, that the original plans to cut the deficit

:54:34.:54:37.

were too Draconian? Surely, in the end, the Chancellor did roughly what

:54:38.:54:42.

he wanted him to do? What John was saying is that we have a Chancellor

:54:43.:54:46.

that has failed on his own terms. He has set his own targets and he has,

:54:47.:54:51.

step-by-step, failed them. He has come back to the House of Commons

:54:52.:54:55.

with four fiscal charters. So, what we said is that you have to be

:54:56.:54:59.

accountable, also, for what you have said in Parliament. Aren't you glad

:55:00.:55:07.

he has failed? Isn't it a good thing, from

:55:08.:55:12.

he has failed? Isn't it a good the fiscal consolidation is only 50%

:55:13.:55:15.

of what he said? It is a failure on his own terms. He has failed in

:55:16.:55:19.

investing in the country for the future. He has failed on

:55:20.:55:23.

productivity, which is flat-lining. He has failed to really invest in

:55:24.:55:27.

infrastructure, were only 9% of his projects have actually started.

:55:28.:55:29.

infrastructure, were only 9% of his have seen house-building

:55:30.:55:32.

infrastructure, were only 9% of his slow under him, while

:55:33.:55:37.

Chancellor. The Chancellor, even now,

:55:38.:55:37.

Chancellor. The Chancellor, even surplus, in the figures he outlined

:55:38.:55:42.

today, the Chancellor will still borrow another ?155 billion, which

:55:43.:55:45.

will be added to the national borrow another ?155 billion, which

:55:46.:55:51.

before he hits the surplus. Is that too much, too little? Or about

:55:52.:55:56.

right? Well, we have to look at the detail of what he's doing, which

:55:57.:56:00.

will come through when we managed to study the documents. Should he

:56:01.:56:01.

borrow more than not? What is going to happen as a

:56:02.:56:07.

result of this spending statement not? What is going to happen as a

:56:08.:56:11.

today, what is it that we not? What is going to happen as a

:56:12.:56:14.

to see in terms of the impact on our public services, people's family

:56:15.:56:18.

income, we know that he has said that he has reversed the tax credits

:56:19.:56:25.

cuts that he proposed, but there is still ?1 billion that is unaccounted

:56:26.:56:26.

for, which looks like it will come still ?1 billion that is unaccounted

:56:27.:56:30.

from Universal Credit. So, you will still have families that are working

:56:31.:56:31.

very hard to still have families that are working

:56:32.:56:34.

be hit by that. This is a smoke still have families that are working

:56:35.:56:38.

mirrors a statement. What you see is not necessarily what you are going

:56:39.:56:40.

to get. I understand, let me not necessarily what you are going

:56:41.:56:45.

back to my question. Is the fiscal stance of this Government, in your

:56:46.:56:54.

view, or about right? Should they be borrowing more or less? We have said

:56:55.:56:58.

that what we have seen in George Osborne's decisions is that he makes

:56:59.:57:02.

the wrong choices. I'm not asking you that, with respect, I'm asking

:57:03.:57:06.

if his fiscal stance is right, should he borrow more or less? We

:57:07.:57:11.

would support borrowing for investment. Investment where you

:57:12.:57:14.

would see growth coming out from that investment where you would say

:57:15.:57:17.

savings coming out from that, housing being one example. You won't

:57:18.:57:22.

cut the housing benefit bill sustainably unless you build houses

:57:23.:57:26.

and we have seen that what he has promised before has not been

:57:27.:57:30.

delivered. Given what Mr McDonnell did today, are you a regular reader

:57:31.:57:35.

of the thoughts of Chairman Mao, again? Of the Chancellor was

:57:36.:57:41.

doing... I'm asking what you read! Why did you last read the thoughts

:57:42.:57:46.

of Chairman Mao? He was holding George Osborne to account... With

:57:47.:57:52.

Chairman Mao? He was making a statement that George Osborne should

:57:53.:57:56.

not be selling of his assets to foreign countries when he will not

:57:57.:58:04.

invest in his own. That is it on BBC Two, after four hours of public

:58:05.:58:08.

service coverage at its finest, I'm sure you will agree, of the Spending

:58:09.:58:15.

Review and Autumn Statement. Debate continues on BBC Parliament and the

:58:16.:58:21.

news channel will have more. The Daily Politics will be back tomorrow

:58:22.:58:27.

at noon. How could you miss that? Goodbye, Robert! Goodbye everybody.

:58:28.:58:30.

Andrew Neil presents live coverage of George Osborne's Spending Review and Autumn Statement. With Laura Kuenssberg, Robert Peston, Kamal Ahmed and Jo Coburn in Birmingham. Includes live Prime Minister's Questions.


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