:00:08. > :00:15.Welcome to BBC Parliament's live coverage from the House of Commons.
:00:16. > :00:20.The main business today is the remaining stages of the welfare
:00:21. > :00:27.make ?12 billion of welfare cuts and make ?12 billion of welfare cuts and
:00:28. > :00:30.apprentices. Member to join me for a apprentices. Member to join me for a
:00:31. > :00:44.round-up of the day in both Houses of Parliament at 11pm this evening.
:00:45. > :00:58.First, we have questions to George Osborne and his team of ministers.
:00:59. > :01:03.Order! Questions to Mr Chancellor of the Exchequer, -- Chancellor of the
:01:04. > :01:19.Exchequer. I would like to answer Exchequer. I would like to answer
:01:20. > :01:20.this question together with this question together with
:01:21. > :01:22.questions two, three and four. Last night, unelected Labour and Liberal
:01:23. > :01:26.peers voted down the financial measures on tax credits approved by
:01:27. > :01:31.the selected House of Commons, which raises clear constitutional issues,
:01:32. > :01:33.which we will deal with. We will continue to reform tax credits and
:01:34. > :01:40.save the money needed so that Britain lives within its means.
:01:41. > :01:44.While at the same time, lessening the impact on families during the
:01:45. > :01:50.transition. I will set out the plans in the Autumn Statement. We remain
:01:51. > :02:00.determined to build low tax, low welfare economy that written needs
:02:01. > :02:05.and the British people want to see. 6800 children in South Shields are
:02:06. > :02:09.growing up in families which rely on tax credits. One of my constituents
:02:10. > :02:14.told me tax credits at the moment only make it possible for families
:02:15. > :02:17.to feed and clothe their children as it is. If the government keeps
:02:18. > :02:23.making cuts to those who are the lowest paid, we may just give up
:02:24. > :02:30.hope. The public, experts, some of his MPs and the other place agree
:02:31. > :02:32.that he is victimising working parents and their children. So can
:02:33. > :02:43.he give my constituents some hope and shelf these ridiculous cuts. We
:02:44. > :02:45.will give her constituents support, and the constituents we all
:02:46. > :02:50.represent in the House, by delivering economic security.
:02:51. > :02:57.Economic security that has seen unemployment fall in her
:02:58. > :03:01.constituency by 44% since 2010. One of the ways we deliver economic
:03:02. > :03:04.security is by controlling the welfare bill and making sure the
:03:05. > :03:12.country lives within its means, that is what we will continue to do. The
:03:13. > :03:15.Chancellor has singularly failed to listen to the SNP and this House
:03:16. > :03:21.when we have said he needs to think again about tax credits. He sounds
:03:22. > :03:26.the peers than them. How about he the peers than them. How about he
:03:27. > :03:35.listens to the people and drop these plans once and for all? This House
:03:36. > :03:38.of Commons voted three times for the changes rejected in the House of
:03:39. > :03:42.Lords, and we look forward to the support of the SNP in that
:03:43. > :03:47.constitutional question. But I will make this point, we need to have a
:03:48. > :03:50.welfare system that works, we need to move to a lower welfare,
:03:51. > :03:52.wage economy, and we do that by wage economy, and we do that by
:03:53. > :03:54.introducing the National minimum introducing the National minimum
:03:55. > :03:58.wage and having a welfare bill that the country can afford, that is the
:03:59. > :04:05.best we can do for the security of the people. If the Chancellor had
:04:06. > :04:12.listened to the evidence from the outset, he would not be in this
:04:13. > :04:12.mess. If his backbenchers voted with their conscience, there would be
:04:13. > :04:23.alignment of the opinion with the alignment of the opinion with the
:04:24. > :04:26.other place. He needs to appreciate he needs to go back to the drawing
:04:27. > :04:33.board with his failed policy that his working -- hates working people
:04:34. > :04:41.the hardest. -- hits. We will deliver what we promised in this
:04:42. > :04:46.Parliament. I remember a time when the Labour Party used to support
:04:47. > :04:54.have abandoned that approach. We have abandoned that approach. We
:04:55. > :04:57.working people, who need controlled working people, who need
:04:58. > :05:10.welfare and a country that lives welfare and a country that lives
:05:11. > :05:19.within its means. He is not your. -- here. Does he agree that whatever
:05:20. > :05:27.our views on the tax credit dispute, our views on the tax credit dispute,
:05:28. > :05:28.in overturning the settled will of in overturning the settled will
:05:29. > :05:28.the elected chamber, the unelected the elected chamber, the
:05:29. > :05:28.Lords have exercised power of a Lords have exercised power of a
:05:29. > :05:29.chamber of parliament in the tax chamber of parliament in the tax
:05:30. > :05:36.it has been the established -- well it has been the established -- well
:05:37. > :05:42.established that they should only have the legitimacy of a
:05:43. > :05:49.consultative assembly? He makes an important point. On any five
:05:50. > :05:54.House of Lords blocked a statutory House of Lords blocked a statutory
:05:55. > :06:03.implement, and never on a financial matter. We had a range of opinions,
:06:04. > :06:09.telling us yesterday that this was unprecedented. It is something we
:06:10. > :06:12.have the address. The Prime Minister made that clear, and that is what we
:06:13. > :06:16.are going to do to make sure that the elected House of Commons is
:06:17. > :06:20.responsible for the tax and spend decisions affecting the people of
:06:21. > :06:31.the country? -- people of the country. I wrote to the Chancellor
:06:32. > :06:36.only earns ?11,000 a year, and says only earns ?11,000 a year, and says
:06:37. > :06:40.that ?31 a week has been cut from her budget. I know he will meet me
:06:41. > :06:46.and discuss this, but surely the point about this is that we should
:06:47. > :06:54.have conversations here, and he will listen. Ultimately we will be held
:06:55. > :07:04.not right is unelected people who not right is unelected people who
:07:05. > :07:07.how the people are tax asked and how how the people are tax asked and how
:07:08. > :07:09.to spend our money. I agree with my honourable friend on the
:07:10. > :07:14.constitutional point, which is a matter of the House of Commons will
:07:15. > :07:18.want to address. I take very seriously the point he raises about
:07:19. > :07:23.his constituent. I have made it clear that we will listen about how
:07:24. > :07:27.to make the transition on the lower welfare, higher wage economy, and we
:07:28. > :07:31.have introduced controversial changes in the last Parliament, for
:07:32. > :07:38.example removing child tax credit from higher earners. We make
:07:39. > :07:42.changes, listening to Parliament, to smooth the transition is to these
:07:43. > :07:46.reforms. So of course we will listen to the House of Commons in this
:07:47. > :07:50.respect. But the end goal is clear. This country cannot have an
:07:51. > :07:55.unlimited welfare budget squeezing out other areas of expenditure.
:07:56. > :07:59.at half 1% of the world's at half 1% of the world's
:08:00. > :08:06.population, 4% of the economy, but 7% of the welfare budget. Can the
:08:07. > :08:08.Chancellor stick to his guns on the issue of tax credits? Gordon Brown
:08:09. > :08:12.spent billions of pounds he did not spent billions of pounds he did not
:08:13. > :08:18.have on tax credits to try to buy votes at the 2010 election. Does he
:08:19. > :08:22.agree with me that there is no painful way out of huge debt, and he
:08:23. > :08:32.will do well to -- people will do well to remember that. I completely
:08:33. > :08:35.agree with my honourable friend, and spending on tax credits went up
:08:36. > :08:41.three times during the period of the last Labour government. Networking
:08:42. > :08:44.poverty increased during that period, so it had the opposite
:08:45. > :08:49.effect intended. When the country effect intended. When the country
:08:50. > :08:52.loses control, the people who suffer are indeed the low paid. They are
:08:53. > :08:59.the people who get turned out of work. It is not the richest in the
:09:00. > :09:04.country or the trade unions barons who lose their job. It is the
:09:05. > :09:09.broadest in the country. We can deliver economic security for them,
:09:10. > :09:12.but we're a to deliver controlled but we're a to deliver
:09:13. > :09:18.welfare and economic security for welfare and economic security for
:09:19. > :09:22.the working people of this country. The Children's Society estimate
:09:23. > :09:28.there are 10,000 children living in 5100 families in Robert who will be
:09:29. > :09:32.punished by the tax credit changes. Provisions will the Chancellor put
:09:33. > :09:38.transitional period? I will set out transitional period? I will set out
:09:39. > :09:44.in the Autumn Statement how we will do this. The people of Rotherham and
:09:45. > :09:47.the rest of the country want to see this. We have to make choices. Are
:09:48. > :09:51.we prepared to see the country we prepared to see the country
:09:52. > :09:56.decline, are we prepared to see the budget out of control? Are we
:09:57. > :10:00.prepared to see jobs lost or do we want to continue delivering economic
:10:01. > :10:04.security that sees a record number of people in work and has seen
:10:05. > :10:10.employment increase in Robert? The average taxpayer here now pays ?2000
:10:11. > :10:15.a year in extra tax just because of the government's debt interest
:10:16. > :10:18.payments. Is it not time we saw this tax on the payslips or that those
:10:19. > :10:28.who believe they can spend with impunity including the neglect --
:10:29. > :10:32.unelected chamber... He is right to call it that. One of the largest
:10:33. > :10:44.items of government spending is paying the creditors the owe, and
:10:45. > :10:47.that crowds out the money we could be paying into education. We have
:10:48. > :10:51.been taking forward and innovation put forward to a backbencher on this
:10:52. > :10:57.side of the House, and we now send attack statement to every taxpayer
:10:58. > :11:01.-- a tax statement to every taxpayer to see how much we spend an interest
:11:02. > :11:09.and how urgent it is to remove this deficit. On the constitutional
:11:10. > :11:13.point, will the Chancellor read out the specific sentence in the
:11:14. > :11:22.Conservative Party manifesto where he promised he will be cutting tax
:11:23. > :11:33.credits? I am very glad he has a copy of the Conservative manifesto.
:11:34. > :11:36.It is an excellent document that says we're going to deliver better
:11:37. > :12:21.schools for people, put more money into the National Health service,
:12:22. > :12:23.invest in transport, and it says on the document we will make ?12
:12:24. > :12:34.billion of welfare savings. We have introduced wage increases
:12:35. > :12:41.that matched what we were proposing to do by statute. We are already
:12:42. > :12:45.seeing the benefits of the national living wage coming into effect
:12:46. > :13:00.before it is even introduced. We know there are 500,000 more children
:13:01. > :13:07.in poverty since 2010... Half an million more children in poverty
:13:08. > :13:14.since 2010 and potentially 4 million children in poverty by the end of
:13:15. > :13:18.this Parliament if the Chancellor is in listening mode, knowing he does
:13:19. > :13:24.not need to make these cuts in order to balance the budget, why does he
:13:25. > :13:33.not listen to those who say start now with the policy of tax credit
:13:34. > :13:38.cuts? I'm afraid the honourable gentleman is just not correct on the
:13:39. > :13:44.numbers. Child poverty is down by 300,000 since 2010 and the number of
:13:45. > :13:51.children in workless households is half a million fewer that was when
:13:52. > :13:56.this government came to office. It is difficult to take lectures from
:13:57. > :13:58.the SNP about balancing the books. They made forecasts for oil revenues
:13:59. > :14:05.which would have left Scotland with a ?30 billion black hole if they had
:14:06. > :14:08.got their way. We will go on delivering economic security for the
:14:09. > :14:14.people of Scotland and the rest of the UK die taking the difficult
:14:15. > :14:21.decisions that his party ducks. The Chancellor is in denial. Is it not
:14:22. > :14:28.the case, Mr Speaker? Absolute denial that yesterday the 26th of
:14:29. > :14:33.October demonstrated to things. The Chancellor has lost his political
:14:34. > :14:44.touch and his chances of being Prime Minister have gone up in a puff of
:14:45. > :14:48.smoke. All they want to talk about this party political games rather
:14:49. > :14:56.than sorting out the mess that this country was in six or seven years
:14:57. > :15:03.ago as a result of the changes --. Six or seven years ago. As result of
:15:04. > :15:08.the changes we made things have improved and we will go on making
:15:09. > :15:11.the changes. He can go on praising the House of Lords that he has spent
:15:12. > :15:16.his whole life campaigning to abolish and I will go on delivering
:15:17. > :15:22.the reforms to our economy needed to help Scotland continue to grow. At
:15:23. > :15:25.the end of the last Labour government, nine out of ten families
:15:26. > :15:34.with children were eligible for tax credits. Some of them aren't up to
:15:35. > :15:38.?60,000. In other words, they were paying their taxes and getting some
:15:39. > :15:44.back. Isn't it better to reduce taxes in the first place so people
:15:45. > :15:55.keep more of their hard earned income? I think my honourable friend
:15:56. > :15:57.speaks for her Lincolnshire constituents and the whole United
:15:58. > :16:05.Kingdom in saying what we want to do is move to the lower tax, lower
:16:06. > :16:10.welfare higher wage society. We increased the personal allowance to
:16:11. > :16:12.?11,000 and cut taxes for business, reducing corporation tax, expanding
:16:13. > :16:14.employment allows some smaller employment allows some smaller
:16:15. > :16:21.businesses could take more people on. It is about continuing to
:16:22. > :16:29.deliver record levels of employment in our country and growing economy
:16:30. > :16:36.which today's GDP figures confirm. Can I remind the House that 3
:16:37. > :16:39.million people out there who have done everything asked of them,
:16:40. > :16:44.bringing up their children, going to work, this is not a constitutional
:16:45. > :16:48.matter. They will lose ?1300 per year. Given what happened in the
:16:49. > :16:53.other place last night, can I reassure the Chancellor that if he
:16:54. > :16:58.brings forward proposals to reverse the cuts to tax credits fairly and
:16:59. > :17:08.in full he will not be attacked by this side of the House. Indeed, he
:17:09. > :17:14.will be applauded. But can you assure us that whatever proposals he
:17:15. > :17:19.brings forward he will not support any that an independent assessment
:17:20. > :17:28.demonstrates will cause any child to be forced to live below the poverty
:17:29. > :17:33.line? I am of course happy to accept any proposals he puts forward but I
:17:34. > :17:38.would make this point. I am happy to listen to those proposals but let me
:17:39. > :17:41.make this point. There is a difference between those who say we
:17:42. > :17:46.want to make no savings to welfare at all, we want to abolish things
:17:47. > :17:50.like the benefit cap, we are not prepared to make savings at all to
:17:51. > :17:56.the tax credit system, and those who have said yes, we do want to move to
:17:57. > :18:00.a lower welfare society but we want help in the transition. If he has
:18:01. > :18:06.puzzles to help in the transition of course I will listen to them but if
:18:07. > :18:08.years promoting uncapped welfare and uncapped borrowing then I don't
:18:09. > :18:15.think the British people will listen to him. The Chancellor has a choice
:18:16. > :18:22.before him. He can push on with the tax giveaways to multinational
:18:23. > :18:28.corporations, press on with tax cuts to the wealthiest few in inheritance
:18:29. > :18:33.tax that he announced in the summer budget, or he can reverse those tax
:18:34. > :18:44.breaks for the few and instead go for a less excessive surplus target
:18:45. > :18:54.in 2019/20 and the end -- and be in a better position. Is he prepared to
:18:55. > :19:02.listen to reason? Is he or anyone on that site willing to step up and
:19:03. > :19:06.show some leadership on this issue? Let's remember, we inherited a tax
:19:07. > :19:11.system where city bankers were paying lower tax rates than the
:19:12. > :19:16.people who cleaned them. Multinationals were paying no tax at
:19:17. > :19:20.all. We have introduced a new tax to make sure multinationals to not
:19:21. > :19:26.divert their profits and we have increased capital gains tax to avoid
:19:27. > :19:29.that abuse of tax rates. We are not going to take lectures from the
:19:30. > :19:37.Labour Party on a fair tax system. I would say to him, he in a way
:19:38. > :19:45.reveals what he believes, which I respect, which is to abandon the
:19:46. > :19:51.surplus real and run at the -- run a deficit forever. If you borrow
:19:52. > :19:55.forever and don't make difficult decisions on welfare you will
:19:56. > :19:57.that means as a result people will that means as a result people will
:19:58. > :20:02.become unemployed and living standards will fall. That is not the
:20:03. > :20:08.Britain I would like to see. We will take difficult decisions to deliver
:20:09. > :20:15.lower welfare, lower tax and a higher wage economy. And this
:20:16. > :20:24.elected House of Commons will carry on with economic plan which delivers
:20:25. > :20:27.that. Mr Speaker, I am in discussions with the Scottish
:20:28. > :20:32.Government on the design of its new fiscal framework. We met on four
:20:33. > :20:39.occasions and a joint statement was released after each meeting. Talks
:20:40. > :20:46.have been constructive and we hope to come to a final agreement in due
:20:47. > :20:50.course. John Nicholson. Does the Chief Secretary remain committed to
:20:51. > :21:04.a funding formula based on Barnett, as promised in the vow? The
:21:05. > :21:09.Government is committed to the Barnett formula and delivering all
:21:10. > :21:17.aspects of this method agreement. -- the Smith agreement. Would the
:21:18. > :21:23.Minister think again on that answer? My constituents have ?2000
:21:24. > :21:26.less per person on public expenditure than constituents in
:21:27. > :21:33.Scotland and we pay the same taxes. How can that be fair? I think it is
:21:34. > :21:38.worth noting that the Barnett formula will continue but it will
:21:39. > :21:43.diminish in importance. For the first time, more than half of the
:21:44. > :21:46.Scottish Government's budget will come from Scottish taxpayers rather
:21:47. > :21:50.than a grant from the UK Government, which I think will add
:21:51. > :22:00.extra accountability to the Scottish Government. I should like to answer
:22:01. > :22:05.question number seven. We have a record number of people in work and
:22:06. > :22:08.the GD PDA to today shows Britain outperforms other western economies
:22:09. > :22:17.but there are global risks and much more can be done to fix our economy.
:22:18. > :22:20.Bottom statement will set out ways we can do this and make tough
:22:21. > :22:29.decisions for Britain to live within our means. The total number of
:22:30. > :22:35.unemployed in my constituency is 219 and youth unemployment is only 36.
:22:36. > :22:38.With my right honourable friend join me in praising institutions such as
:22:39. > :22:46.Henley College who are providing excellent apprenticeship training?
:22:47. > :22:50.It is good to hear about the success of the people in his constituency
:22:51. > :22:56.finding work over recent years, and the business confidence that exists
:22:57. > :23:01.in Oxfordshire. Henley College, which he has spoken about, does an
:23:02. > :23:05.excellent job making sure young people have the skills they need to
:23:06. > :23:10.take opportunities out there in the jobs market and we will go on
:23:11. > :23:20.helping institutions like that by increasing apprentices so we deliver
:23:21. > :23:25.the 3 million apprentices. Unemployment has fallen in my
:23:26. > :23:32.constituency since 2010 but we mustn't be complacent given recent
:23:33. > :23:38.news about difficulties in the West Midlands but would he agree that we
:23:39. > :23:42.should do more to invest in skills such as science and technology so we
:23:43. > :23:48.can equip local people with the skills they need to take future
:23:49. > :23:53.opportunities? I visited a number of the successful businesses in his
:23:54. > :23:56.constituency, exactly the kind of small and medium businesses that are
:23:57. > :24:05.the backbone of the British economy. They need help with training and
:24:06. > :24:13.hills on college -- Halesowen College can help them. As far as I
:24:14. > :24:17.can see has been afraid to publish impact assessments on changes to
:24:18. > :24:21.working tax credits on people taking up or remaining in work. Will he
:24:22. > :24:37.guaranteed that given the decision last night he will look at this and
:24:38. > :24:40.include an impact assessment? We published an impact assessment and
:24:41. > :24:45.equalities assessment distribution or analysis of the measures we
:24:46. > :24:50.produced in the budget. None of those were ever produced by any
:24:51. > :24:55.Labour Chancellor. We continue to provide the information people seek
:24:56. > :24:59.but what matters above all is getting the central judgment right
:25:00. > :25:01.about fixing the economy, dealing with the deficit and delivering
:25:02. > :25:10.economic security for the people she represents. The Chancellor is fond
:25:11. > :25:17.of telling us about 2 million more people in employment when he usually
:25:18. > :25:22.little facial lap of honour around the chamber. Has he is omitted how
:25:23. > :25:26.many of those 2 million people would be hit by the proposed tax credit
:25:27. > :25:34.changes and how many he would be comfortable still hitting with
:25:35. > :25:39.revised changes? We will help with the transition. The measures to do
:25:40. > :25:44.so come alongside the increase in national living wage, increases in
:25:45. > :25:51.personal allowance and action we have taken to cut social rents. It
:25:52. > :25:54.is part of a package to deliver security to people in Northern
:25:55. > :25:58.Ireland and the UK. He remembers what it was like five or six years
:25:59. > :26:02.ago in Northern Ireland with high unemployment, lack of business
:26:03. > :26:06.investment, people looking for work. Now jobs are being created and
:26:07. > :26:09.people are finding work. Has everything been done that needs to
:26:10. > :26:21.be? Absolutely not. Let's work together to make more jobs and
:26:22. > :26:28.investment in Northern Ireland. My local council keep talking about
:26:29. > :26:36.cats. But a management consultant company said there will be 10,000
:26:37. > :26:39.jobs in my constituency. Would do the Chancellor agree that his
:26:40. > :26:43.economic policies have put that on track and we are going forward in my
:26:44. > :26:44.area of the world and making it better for the people who live
:26:45. > :26:55.there? He is right. As a combination of him
:26:56. > :27:02.being in effect the local MP and the fact we have a conservative MP and
:27:03. > :27:08.government, we are delivering more jobs into his part of Lancashire.
:27:09. > :27:13.Remember working with him on the link road to the port, which they
:27:14. > :27:19.campaigned for four decades, but they were never delivered. It has
:27:20. > :27:28.now been built and delivered as part of his efforts. My party wants to
:27:29. > :27:34.deal with the deficit. We think he has gone about it the wrong way.
:27:35. > :27:41.We're worried about certain employment trends, for example a
:27:42. > :27:44.trade Association has warned 20,000 jobs could be at risk due to the
:27:45. > :27:50.announcement of withdrawal of support for solar energy schemes.
:27:51. > :27:53.What steps does the government proposed to take to avoid
:27:54. > :28:03.large-scale redundancies in the solar industry, and what support
:28:04. > :28:06.will the government offer to the industry? We are in constant
:28:07. > :28:13.dialogue, and use has decreased dramatically. We have reduced the
:28:14. > :28:18.be consistency on what Labour will be consistency on what Labour will
:28:19. > :28:23.argue for. On the one hand they ask to deal with the energy prices
:28:24. > :28:28.affecting the steel industry, reasonably, then they spokesman gets
:28:29. > :28:40.up and asks to add more cost to energy bills so we subsidise
:28:41. > :28:45.renewals. I recognise all job losses are concerning for those that.
:28:46. > :28:51.Regarding large-scale redundancies, the Jobcentre plus rapid response
:28:52. > :28:59.service can help. They provide support and are working at a
:29:00. > :29:01.colliery in his constituency. We may consider further intervention in
:29:02. > :29:09.other cases where the impact is significant. Thank you. I also
:29:10. > :29:14.welcome the support and retraining packages for steelworkers referred
:29:15. > :29:20.to earlier. There are several hundred workers at the colliery
:29:21. > :29:24.facing redundancy later this year. And a further 240 power station
:29:25. > :29:29.workers going through a consultation, who are very worried
:29:30. > :29:32.about their future. Will he meet with me urgently to discuss a
:29:33. > :29:39.similar support and retraining package for these workers? I
:29:40. > :29:43.recognise the difficulties faced by many people in his constituency. One
:29:44. > :29:48.thing I will say is that my honourable friend is a real champion
:29:49. > :29:53.for jobs in his constituency. Only last week he ran his fifth annual
:29:54. > :29:56.jobs fear for his constituents, which is part of the reason
:29:57. > :30:01.unemployment is down by more than 1000 since the last -- in the last
:30:02. > :30:03.Parliament. I would be happy to meet with him to discuss further what
:30:04. > :30:14.training is available for constituents affect the. 1700 people
:30:15. > :30:23.have lost their jobs in Redcar, and it is expected total job losses will
:30:24. > :30:33.be 9000. How long will it be for his measures to take effect and have
:30:34. > :30:36.jobs again? We're taking a number of measures, tackling unfair practices
:30:37. > :30:44.and speaking on that basis at EU summit. We are dealing with high
:30:45. > :30:51.energy bills and making sure the more -- that more public contracts
:30:52. > :30:54.go to UK steel producers. But the youth he government cannot deal with
:30:55. > :31:07.the world's deal price -- steel price. We're making sure that the
:31:08. > :31:14.situation is as good as it can be. This government has made a long-term
:31:15. > :31:19.science capital commitment investing 6.9 billion in the UK's research
:31:20. > :31:26.infrastructure. In the last Parliament we maintained the ring
:31:27. > :31:31.fenced science budget in cash terms, at ?4.6 billion per annum, and
:31:32. > :31:36.provided 1.75 billion of support in research and development tax credits
:31:37. > :31:37.in 2013. Further decisions to support research will be decided at
:31:38. > :31:46.the forthcoming Spending Review. The the forthcoming Spending Review. The
:31:47. > :31:49.record does not match the rhetoric. Only yesterday some of the leading
:31:50. > :31:52.companies in the UK were expressing concern that the government had a
:31:53. > :32:01.reported plan to replace research and development investments, could
:32:02. > :32:10.affect them and send them abroad. affect them and send them abroad.
:32:11. > :32:16.Could he reassure Parliament and business that support will remain
:32:17. > :32:24.available? Future plans for the tax credits are matter for the Spending
:32:25. > :32:49.Review, but where I disagree with him is what we have done on the last
:32:50. > :32:51.five years. For each ?1 of tax foregone on around the tax
:32:52. > :32:53.stimulates between ?1.53 and ?2.35 stimulates between ?1.53 and ?2.35
:32:54. > :32:53.credit scheme has been increased by credit scheme has been increased
:32:54. > :32:56.170 -- from 175% to 210%. We 170 -- from 175% to 210%. We
:32:57. > :33:28.in my constituency. Does he agree in my constituency. Does he agree
:33:29. > :33:41.academic and manufacturing world's academic and manufacturing world's
:33:42. > :33:42.are the way forward? I agree, particularly in areas
:33:43. > :33:43.innovation. We are ranked first for innovation. We are ranked first for
:33:44. > :33:43.research and first for research research and first for research
:33:44. > :33:43.productivity, 3.87 times the productivity, 3.87 times the
:33:44. > :33:43.average. By the end of the average. By the end of the
:33:44. > :33:44.Parliament, local authorities will Parliament, local authorities will
:33:45. > :33:44.be able to attend taxes to spend on services. Elected mayor 's will get
:33:45. > :33:45.greater flexibility over business greater flexibility over business
:33:46. > :33:47.rates. Each devolution deal will be spoke, but the deal agreed last
:33:48. > :33:49.Friday with the north-east, but the deal agreed last Friday with the
:33:50. > :33:57.North East commendable oddity includes a new ?30 million a year
:33:58. > :34:04.funding will programme of transferring arrangement in the
:34:05. > :34:06.region. The north-east is keen and determined to slip Whitehall's
:34:07. > :34:13.Alicia, but some people are concerned that hard-pressed civil
:34:14. > :34:18.servants will seek to devolve cuts while maintaining control of
:34:19. > :34:23.spending. To avoid this, will the Chancellor commit to complete
:34:24. > :34:27.devolved function, publishing the devolved function, publishing the
:34:28. > :34:35.full funding figures for the years before and after the Spending
:34:36. > :34:40.Review. Of course we will publish information, but the deal signed
:34:41. > :34:45.million of additional funding each million of additional funding each
:34:46. > :34:48.year going forward. If she does not think that is a good deal, she
:34:49. > :34:55.should listen to Simon Henning, who is the chairman from her own party,
:34:56. > :34:59.who said the agreement being signed today will bring significant
:35:00. > :35:02.economic benefits and opportunities for businesses and residents in the
:35:03. > :35:17.north-east. She should be welcoming it. Last week 's announcement of the
:35:18. > :35:24.new cluster of flights between China and Manchester. It is this
:35:25. > :35:29.government and this Chancellor who is delivering a clear vision for the
:35:30. > :35:36.North. We had an exceptionally successful visit last week,
:35:37. > :35:43.including the President's trip to Manchester. Important in relation to
:35:44. > :35:48.the Northern Powerhouse was the start of the first direct flight
:35:49. > :35:53.connecting Manchester and the Northern Powerhouse region to China,
:35:54. > :35:59.which will be vital for the connectivity and ensuring economic
:36:00. > :36:06.investment is brought into the region. Last week it was concluded
:36:07. > :36:11.that the Chancellor's decision to devolve business rates to local
:36:12. > :36:15.authorities will lead to an increased council debt levels,
:36:16. > :36:18.cancellation of creditworthiness of governments, and will leave many
:36:19. > :36:27.local councils including Lancashire County Council with your credit
:36:28. > :36:38.rating downgraded. What safeguards can he promised will be put in place
:36:39. > :36:49.to ensure that your -- poorer areas of the Northern Powerhouse do not
:36:50. > :36:51.many years, a large number of local many years, a large number of local
:36:52. > :36:56.authorities have been calling out for this kind of devolution of the
:36:57. > :36:57.tax base, so they have control over their own decisions and the funding
:36:58. > :37:04.given towards them. Many of the given towards them. Many of the
:37:05. > :37:08.local authorities have been calling for these additional powders, they
:37:09. > :37:14.are precisely the Labour authorities in those inner-city areas,
:37:15. > :37:16.particularly the north and Northern Powerhouse, and we intend to deliver
:37:17. > :37:26.on that to make sure there is devolution in the area. The
:37:27. > :37:29.government is fully committed to implementing the cost and effective
:37:30. > :37:36.ring fencing regime, and we remain firmly on track for the separation
:37:37. > :37:44.of banks by January 2019. We passed the last legislation and the ring
:37:45. > :37:48.fencing recommendations this year, and regulatory authority is
:37:49. > :37:56.consulting on second tranche of the roles before publishing the final
:37:57. > :37:59.rules this year. In 2012, the then government of -- Governor of the
:38:00. > :38:03.Bank of England said that unless these regulations were specified,
:38:04. > :38:08.there was a risk they would be watered down before implementation.
:38:09. > :38:11.We now see Barclay's Bank joining RBS and Lloyds in the questing
:38:12. > :38:16.significant waivers. Could he reconfirm the commitment and the
:38:17. > :38:23.legislation? The government remains legislation? The government remains
:38:24. > :38:25.committed to introducing a ring fencing regime as recommended in the
:38:26. > :38:32.independent commission on banking. I independent commission on banking. I
:38:33. > :38:38.will not comment on speculation on how individual banks would like to
:38:39. > :38:47.do it because that is the decision as long as they remain compliant to
:38:48. > :38:55.the restrict restrictions. Deadline is 2019. There was a lot of crying
:38:56. > :39:02.wolf. Is she aware of anything that will be sent to foreign parts
:39:03. > :39:06.because of it? The UK recently once again top the ball as the number one
:39:07. > :39:13.location for a global financial centre. We believe our legal system,
:39:14. > :39:14.language, geographic location, our brilliant skilled workforce and many
:39:15. > :39:20.other fact is contribute to the fact other fact is contribute to the fact
:39:21. > :40:07.that this is an excellent place to locate a global financial services
:40:08. > :40:08.fund. My honourable friend is right to highlight the importance of
:40:09. > :40:10.increased product vividly, which increased product vividly, which
:40:11. > :40:43.will drive growth, raise living standards and ensure a better
:40:44. > :40:43.range of reforms to make sure it range of reforms to make sure it
:40:44. > :40:44.remains a dynamic and enterprising remains a dynamic and enterprising
:40:45. > :40:44.public infrastructure. Does he agree public infrastructure. Does he
:40:45. > :40:45.that the recent report by the that the recent report by the
:40:46. > :40:45.Governor of the Bank of England highlighting the membership to the
:40:46. > :40:46.European Union in positive terms suggest that if we make sure we do
:40:47. > :40:46.protect our financial services, the protect our financial services, the
:40:47. > :40:47.prospects will be very good for the prospects will be very good for
:40:48. > :40:47.economy, dynamically and in terms of economy, dynamically and in terms
:40:48. > :40:48.growth? As the Chancellor has noted, growth? As the Chancellor has noted,
:40:49. > :40:48.is achieving reform over the EU. We is achieving reform over the EU. We
:40:49. > :40:49.want to have a leading role in this, want to have a leading role in this,
:40:50. > :40:49.delivering prosperity and security delivering prosperity and security
:40:50. > :40:51.for every country in the EU, particularly integrating the single
:40:52. > :40:53.insurance companies can invest in insurance companies can invest
:40:54. > :40:56.machinery. Our banks doing all they machinery. Our banks doing all they
:40:57. > :40:56.sure they can improve productivity sure they can improve productivity
:40:57. > :40:58.in the company? He is absolutely in the company? He is absolutely
:40:59. > :41:03.right to identify the importance of right to identify the importance of
:41:04. > :41:06.we have gotten the highest of we have gotten the highest of
:41:07. > :41:12.primary level of the investment primary level of the investment
:41:13. > :41:23.allowance, and we will develop these opportunities. Does he agree
:41:24. > :41:30.raising productivity is the route to raising productivity is the route to
:41:31. > :41:31.raising living standards, and the raising living standards, and the
:41:32. > :41:32.tax will all contribute to achieving tax will all contribute to achieving
:41:33. > :41:33.that? I do agree. Rising productivity increases living
:41:34. > :41:55.standards. Don't manufacture, or build enough.
:41:56. > :41:59.Too much of the economic activity is concentrated in London. The
:42:00. > :42:06.Chancellor may recognise his own words from a speech in July. Why was
:42:07. > :42:11.he so damning about his own record? My right honourable friend has been
:42:12. > :42:18.absolutely consistent in identifying the need to rebalance the economy
:42:19. > :42:22.and export more. Regarding product cavity, the productivity gap has
:42:23. > :42:26.existed for a long time. I can't even pin the blame on the last
:42:27. > :42:35.Labour government. We have to address the shortcomings and this
:42:36. > :42:46.government's programme is doing just that. I thank him for his answer.
:42:47. > :42:48.The Chancellor Institute have called his productivity plan fatally
:42:49. > :42:54.undermined by insufficient measures to improve the skills of the
:42:55. > :42:58.existence workforce. Could that be why the UK's productivity gap has
:42:59. > :43:02.widened to the largest since 1991 compared with other G-7 countries?
:43:03. > :43:08.She is right to identify the importance of skills. Skills and
:43:09. > :43:12.human development is at the heart of the productivity plan. The
:43:13. > :43:24.apprenticeship levy is a really important structural thing to
:43:25. > :43:28.improve. Excellent work is being done in the Department for
:43:29. > :43:41.Education. English and maths have a vital high value in the marketplace.
:43:42. > :43:46.Question 13. The Government is committed to raising their income
:43:47. > :43:54.tax personal allowance to 2005 at pounds by the end of the Parliament.
:43:55. > :44:00.This is also with our commitment to raise the higher level to ?50,000.
:44:01. > :44:07.Personal allowance will increase to ?11,000 next year and ?11,200 in
:44:08. > :44:10.2017/18. In raising personal allowance, one of them was
:44:11. > :44:19.powerfully progressive things we are doing to move towards a lower tax,
:44:20. > :44:27.higher pay society, income -- income tax means people in my constituency
:44:28. > :44:32.will be lifted out of paying income tax entirely. Does this not sure
:44:33. > :44:36.conservatives are on the side of working people? Those working 30
:44:37. > :44:40.hours per week on the national minimum wage will be taken out of
:44:41. > :44:46.income tax altogether and kept out of it and it contrasts with the
:44:47. > :44:53.position in 2010 when people owning just 6500 pounds were paying income
:44:54. > :44:59.tax and those people had recently seen an increase in their marginal
:45:00. > :45:03.rate from 10% to 20%. Raising the personal allowance on its own is not
:45:04. > :45:07.a panacea and will do nothing to address the deep levels of poverty
:45:08. > :45:13.which exist amongst the working poor. Is she concerned at the recent
:45:14. > :45:20.or N S statistics that show 6 million jobs pay less than the
:45:21. > :45:27.living wage? The best way we can address poverty is to ensure we have
:45:28. > :45:30.a strong economy with jobs growing, increasing productivity, making sure
:45:31. > :45:37.we have the business investment we need, he pro-business approach, good
:45:38. > :45:40.for job creation and that is why there are more people in work than
:45:41. > :45:52.we have seen before. Topical questions. Topical number one. It is
:45:53. > :45:58.to ensure the stability and prosperity of the country. The
:45:59. > :46:04.Government's defeat in the other place, 4000 families in East Hull
:46:05. > :46:08.would have lost thousands per year. Now that he is in listening mode,
:46:09. > :46:18.would he commit to dropping this vicious assault on hard-working
:46:19. > :46:24.families? In Kingston-upon-Hull, which he represents in this House,
:46:25. > :46:29.unemployment has fallen by 32% since this government came to office in
:46:30. > :46:31.2010. That is because we have delivered economic security and
:46:32. > :46:37.committed that Britain should live within our means. Yes we will listen
:46:38. > :46:43.to the transition we make to that law welfare higher wage economy that
:46:44. > :46:48.we must go on making savings in our welfare budget or else it will crowd
:46:49. > :46:52.out spending in our NHS and education system and it will mean
:46:53. > :47:00.Hull does not have the resources it needs to thrive and prosper. Wage
:47:01. > :47:05.increases reduce the burden of tax credits on the taxpayer. What
:47:06. > :47:11.assessment does the Chancellor make of wage increases in my constituency
:47:12. > :47:23.in the West Midlands and in the UK. --? The introduction of the national
:47:24. > :47:26.living wage is going to benefit around 300,000 people in the West
:47:27. > :47:30.Midlands, including her constituents. It is part of a
:47:31. > :47:32.package to support the working people she represents and gives the
:47:33. > :47:43.economic security to that West Midlands engine that we want to say.
:47:44. > :47:49.The Chancellor said he would listen. Confirm that he will not be writing
:47:50. > :47:53.to the 3 million families before Christmas telling them their tax
:47:54. > :47:57.credits will be slashed. Surely he doesn't want to go down in history
:47:58. > :48:04.as Scrooge delivering devastating news to millions of people, or does
:48:05. > :48:13.he? Obviously we will inform families once the changes we have
:48:14. > :48:17.made become law. The Channel Tunnel and the Port of Dover are very
:48:18. > :48:22.important pieces of infrastructure. When there are disruptions to
:48:23. > :48:26.services as we saw the summer it causes misery for people in Kent.
:48:27. > :48:37.Would he agree to meet with me and other MPs from Kent to discuss what
:48:38. > :48:46.funding can be available to manage freight in Kent? I would be willing
:48:47. > :48:56.to meet with them to discuss the traffic jams caused by disruption at
:48:57. > :49:02.the Channel Tunnel. We used Manston airport to relieve pressure. I know
:49:03. > :49:06.there is talk of a longer term solution and I'm happy to talk about
:49:07. > :49:14.it. Given the growing evidence that fixed odds betting terminals are
:49:15. > :49:17.being used to launder money, can the Chancellor Usher this as there will
:49:18. > :49:23.be a prominent focus on these machines in this upcoming
:49:24. > :49:26.anti-money-laundering action plan? I'd like to thank her for her
:49:27. > :49:32.question. She will be aware that we are in the process of considering
:49:33. > :49:35.how we implement the fourth anti-money-laundering directive and
:49:36. > :49:40.we will look closely at their evidence and I will encourage her to
:49:41. > :49:43.get in touch with me. The Black Country Local Enterprise Partnership
:49:44. > :49:48.did an excellent job bringing jobs and investment but would the
:49:49. > :49:54.Chancellor agree that the time has come for local enter should
:49:55. > :50:04.partnerships -- local enterprise partnerships to work together with
:50:05. > :50:11.local authorities? I hear the member for Wolverhampton and Worcestershire
:50:12. > :50:17.saying well said. I think in the West Midlands we have the potential
:50:18. > :50:26.for devolution with an elected mayor if we work with the local
:50:27. > :50:30.authorities and the local enters price -- enterprise partnerships and
:50:31. > :50:34.MPs and I think it will give people of the West Midlands control over
:50:35. > :50:37.decision-making, which we have given to people in South Yorkshire,
:50:38. > :50:44.Manchester, the north-east and quayside. In my constituency there
:50:45. > :50:51.are 9000 families with children claiming tax credits. 5500 of these
:50:52. > :50:54.people are working families. The Chancellor said he is listening but
:50:55. > :51:02.he has dismissed every proposal so far. Millions of families need them
:51:03. > :51:08.to change course and make work pay. Will he listen now and introduce
:51:09. > :51:15.transitional relief so these working families will not be out-of-pocket
:51:16. > :51:19.by ?1300? We are listening and we are in particular listen to what we
:51:20. > :51:25.can do to help with their transition to the law welfare higher wage
:51:26. > :51:29.economy we would like to see in her constituency and across the country.
:51:30. > :51:37.We will also take steps to help make sure work pays by increasing the
:51:38. > :51:40.personal allowance to ?12,500. And by introducing the national living
:51:41. > :51:44.wage which will help thousands of people in our constituency and by
:51:45. > :51:47.supporting the businesses in our constituency without which we
:51:48. > :51:56.wouldn't have the jobs employing local people. Since 2010, over
:51:57. > :52:01.37,000 of my constituents have had their taxes cut, enabling them to
:52:02. > :52:05.keep more of what they are and and some for the first time I been able
:52:06. > :52:11.to accumulate savings. Can the Chancellor assure them that the
:52:12. > :52:17.Government will continue to cut their taxes and support them with
:52:18. > :52:25.future saving? I can give my honourable friend who represents his
:52:26. > :52:33.constituency so well in Bolton, we will go on supporting his
:52:34. > :52:49.constituents and introducing savings and savings allowance and a help to
:52:50. > :52:54.buy Isa. Will he reflected on our thousands of my constituents feel at
:52:55. > :53:00.the prospect of losing thousands of pounds every year through his
:53:01. > :53:07.actions? The people who suffer most when the economy fails and the
:53:08. > :53:12.country feels are the people she talks about, the low paid. They will
:53:13. > :53:17.lose their jobs and they are the victims of economic insecurity. We
:53:18. > :53:22.are determined to deliver economic security and the controlled welfare
:53:23. > :53:25.bill that the people she represents have to pay for through their taxes
:53:26. > :53:32.and we will set out how to ease the transition. The call Ocean
:53:33. > :53:43.government freed pensioners from mandatory annuities and encouraged
:53:44. > :53:48.savings through ices and enrolment. Tax relief to pensions are expensive
:53:49. > :53:51.and favour higher rate taxpayers. Does he agree that sensible reform
:53:52. > :53:59.could be considered to help answer the budget without distance in
:54:00. > :54:03.devising saving? We have taken significant steps to encourage
:54:04. > :54:05.saving, not least giving pensioners control over their pension pots in
:54:06. > :54:13.retirement and trusting those who have saved all their lives without
:54:14. > :54:20.money they have earned to put aside. We are open to consultation on the
:54:21. > :54:26.system of taxation of pensions. It is an open consultation, a Green
:54:27. > :54:29.paper. We have had interesting suggestions about potential reform
:54:30. > :54:41.and we will respond to the filly in the budget. Can you confirm there is
:54:42. > :54:50.nothing in the passing of the charter which restricts the ability
:54:51. > :54:54.to borrow of Scotland? The deal we struck with the Scottish Government
:54:55. > :55:00.on capital borrowing remains intact. What we want to do is strike a new
:55:01. > :55:05.agreement, a new fiscal framework, and we are having a good discussion
:55:06. > :55:09.around capital borrowing powers, resource borrowing powers, and the
:55:10. > :55:14.mechanism to genuinely make sure that Scotland sees both the benefits
:55:15. > :55:18.and bears the costs of any decision taken by the Scottish Government,
:55:19. > :55:30.which I think is the true nature of devolution which I'm sure the SNP
:55:31. > :55:33.want to see. Would he agree with me that we simply must reform this
:55:34. > :55:40.crazy tax credits system that enforces Lope and that we take no
:55:41. > :55:47.lessons from the opposition which failed cities like mine. The tactic
:55:48. > :55:49.of bribing the lowest orders not to improve social mobility and help
:55:50. > :55:57.them but simply to win their votes must end in this country for good?
:55:58. > :56:02.He makes a powerful point that we created a welfare system which
:56:03. > :56:08.subsidises low pay and surely it is better to increase that pay? That is
:56:09. > :56:16.why we are introducing the national living wage. Under the devolution
:56:17. > :56:18.deal the Chancellor committed ?30 million a year for a new investment
:56:19. > :56:25.fund for the north-east. Will this be new money or will exist in grant
:56:26. > :56:36.speak at? Where is the guarantees he will not be robbing Peter to pay
:56:37. > :56:39.Paul? We couldn't have reached this agreement without the support of the
:56:40. > :56:43.local Labour council leaders who have come together through the
:56:44. > :56:47.combined authority to strike what I think is a really historic deal.
:56:48. > :56:50.There has been lots of conversation about devolving power to the
:56:51. > :56:55.north-east. Now we will have the leg could mirror with powers exercised
:56:56. > :57:02.in London exercise in the north-east and that is proper devolution.
:57:03. > :57:11.Last week a cider producer told the local press that cider is an
:57:12. > :57:13.agricultural lubricant, wine for the working man. Will he continue to
:57:14. > :57:27.support hard-working people and lubricate the Somerset economy by
:57:28. > :57:30.cutting tax is on cider? I very much remember my visit with the Prime
:57:31. > :57:34.Minister to a cider producer in his constituency before the election,
:57:35. > :57:43.which turned out to be extremely productive. He will know that in
:57:44. > :57:47.tax that was being proposed by the tax that was being proposed by the
:57:48. > :57:57.previous Labour government, and we have helped the producers. I will
:57:58. > :58:03.help support them in the future. The Resolution Foundation found that all
:58:04. > :58:08.tax and benefit measures announced, including the National minimum wage,
:58:09. > :58:17.will cost an additional 200 children into poverty. -- push those
:58:18. > :58:22.children. By 2020, there will be up to 600 further children pushed into
:58:23. > :58:27.poverty. Chancellor, you said you listened last night. Will you now
:58:28. > :58:29.share with the honourable members today what constructive action you
:58:30. > :58:37.will take to protect the poor wrist will take to protect the poor wrist
:58:38. > :58:46.of families and children? -- poorest. She raises her question in
:58:47. > :58:47.a perfectly fairway. I will listen to the concerns that have been
:58:48. > :58:52.raised about the transition in the welfare reforms we have it forward,
:58:53. > :58:58.so we can continue to help working families. Those families are best
:58:59. > :59:03.help when we have economic security, a controlled welfare budget, a
:59:04. > :59:07.system where we do not subsidise low paid, and we will make sure that in
:59:08. > :59:13.the Autumn Statement we help working families. I did not want to
:59:14. > :59:17.interrupt the question, and I understand why members like to put
:59:18. > :59:23.their enquiries directly to the Minister, but can I please appeal to
:59:24. > :59:33.members not to use the word you in your questions. We go through the
:59:34. > :59:40.cheer for good reasons. -- through the chair. In the past few years
:59:41. > :59:45.unemployment in Tamworth has fallen faster than anywhere else in the
:59:46. > :59:48.country. As my right honourable friend is listening, can he tell the
:59:49. > :59:52.House whether he has heard a sensible representation from the
:59:53. > :59:55.Shadow Chancellor or others about how to de-crease business taxation
:59:56. > :00:03.and regulation to create more jobs in the West Midlands? I am sorry to
:00:04. > :00:09.say I have not because the only proposals that have so far being put
:00:10. > :00:14.by the party opposite are for an increase in business taxation, which
:00:15. > :00:17.Chancellor was speaking about a Chancellor was speaking about a
:00:18. > :00:23.potential wealth tax being introduced in this country. To be
:00:24. > :00:31.fair to him, he has been entirely consistent on this for 30 years. --
:00:32. > :00:36.13 years. His proposals are for a high tax, big state economy, where
:00:37. > :00:43.role to play. I think that is the role to play. I think that is the
:00:44. > :01:20.wrong direction for the country. How much with the public purse be saved
:01:21. > :01:24.by abolishing the House of Lords? CHEERING That is a very decent
:01:25. > :01:24.which we will give proper which we will give proper
:01:25. > :01:25.consideration to! People who have consideration to! People who have
:01:26. > :01:25.been in Parliament with me for the last 14 years now my views,
:01:26. > :01:26.should have an elected House of should have an elected House of
:01:27. > :01:27.Lords, but that view has not prevailed in this chamber. But I do
:01:28. > :01:27.unelected House of Lords, it should unelected House of Lords, it should
:01:28. > :01:31.respect the constitutional election which has -- convention which has
:01:32. > :01:35.existed for 100 years. Order. Demand has exceeded supply. Point of order.
:01:36. > :01:37.The honourable gentleman is