13/03/2018

0:00:00 > 0:00:01I will look carefully and seriously consider that evidence.The door is

0:00:01 > 0:00:05still open to the benefits of marine energy so would he commit to see

0:00:05 > 0:00:10Charles Hendry, author of the review which are still awaiting a response

0:00:10 > 0:00:15from the Government 14 months and, as Chair of the party groups and

0:00:15 > 0:00:24representatives of tidal lagoon and tidal stream?We continue to commit

0:00:24 > 0:00:27to support our marine energy industry. I referred the honourable

0:00:27 > 0:00:32gentleman to the answer my right honourable friend gave at the start

0:00:32 > 0:00:36of questions, we continue to exchange information with the Welsh

0:00:36 > 0:00:39Government, we need to understand what is on offer and need to reach

0:00:39 > 0:00:50the right decision.The county in which I live have only two

0:00:50 > 0:00:54electronic charging points. If the Minister able to set charging points

0:00:54 > 0:00:59for rural and urban areas?It is true that the charging network needs

0:00:59 > 0:01:03to extend right across the country if people are to have the confidence

0:01:03 > 0:01:06that they will be able to recharge their vehicle and the rural aspect

0:01:06 > 0:01:13is very much in mind.According to the press, the Secretary of State

0:01:13 > 0:01:17gave a presentation to the subcommittee of the Cabinet about

0:01:17 > 0:01:23the automotive Section and how important it was that we do not have

0:01:23 > 0:01:27a hard Brexit. It seems to have persuaded those people of the

0:01:27 > 0:01:32Cabinet that it might be a good idea for a hard Brexit that it would in

0:01:32 > 0:01:36fact be a very bad idea for British business, notably the automotive

0:01:36 > 0:01:40sector. On that basis, could the Secretary of State make it available

0:01:40 > 0:01:48to all members, honourable and right honourable?It would be wrong of me

0:01:48 > 0:01:56to disclose what's our conversations are in Cabinet. She understands the

0:01:56 > 0:02:00collective responsibility but it is no secret to anyone in this House

0:02:00 > 0:02:03that I regard the success of the automotive sector depending on

0:02:03 > 0:02:09integrated supply chains as being good evidence of what type of trade

0:02:09 > 0:02:13agreement is needed. It was referenced, indeed highlighted, in

0:02:13 > 0:02:20the Speech by the Prime Minister at the Mansion House.Statement of the

0:02:20 > 0:02:22Chancellor of the Exchequer.

0:02:29 > 0:02:34I am pleased to introduce to the House the first spring statement.

0:02:34 > 0:02:39The UK was the only major economy to make hundreds of tax and spending

0:02:39 > 0:02:44changes twice a year and major international organisations and UK

0:02:44 > 0:02:48professional bodies alike have been pressing for change. In 2016, I took

0:02:48 > 0:02:52the decision to move to a single physical event in the autumn, giving

0:02:52 > 0:02:57greater certainty to families and businesses ahead of the new

0:02:57 > 0:02:59financial year and allowing more time for stakeholder and

0:02:59 > 0:03:05parliamentary engagement on potential fiscal changes. Today's

0:03:05 > 0:03:09statement will update the House on the economic and fiscal perdition --

0:03:09 > 0:03:20position, report progress on the budgets from last year and is... I

0:03:20 > 0:03:25will not be producing a red book today, Mr Speaker, but I cannot

0:03:25 > 0:03:26speak for the right honourable gentleman opposite.

0:03:35 > 0:03:41Mr Speaker, I am pleased to report to date the House on a UK economy

0:03:41 > 0:03:48that has grown in every year since 2010. An economy which under

0:03:48 > 0:03:54Conservative leadership now has a manufacturing sector enjoying its

0:03:54 > 0:04:00longest unbroken run of growth for 50 years. An economy which has added

0:04:00 > 0:04:063 million jobs and seen every single region of the UK with higher

0:04:06 > 0:04:11employment and lower unemployment than in 2010, seen the wages of the

0:04:11 > 0:04:18lowest paid up by almost 7% above inflation since April 2015 and

0:04:18 > 0:04:21income and equality lower than at any time under the last Labour

0:04:21 > 0:04:27Government. Solid progress towards building an economy that works for

0:04:27 > 0:04:33everyone. Mr Speaker, I reject the party opposite's doom and gloom

0:04:33 > 0:04:39about the state of the nation. Every Wednesday, we have to listen to the

0:04:39 > 0:04:45Leader of the Opposition relentlessly talking Britain down.

0:04:45 > 0:04:50Every year since 2010, we have had to listen to the right honourable

0:04:50 > 0:04:55member predicts a recession, none of which has actually happened. If

0:04:55 > 0:05:18there are any Ee-aws in the Chamber, they are over there. -- Eeore. Our

0:05:18 > 0:05:22language is the global language of business. The legal system is the

0:05:22 > 0:05:28jurisdiction of choice for commerce. We host the world's most global city

0:05:28 > 0:05:32and is international finance and professional services capital. Our

0:05:32 > 0:05:37companies are at the vanguard of the technological revolution while our

0:05:37 > 0:05:43work class -- world-class universities... Britain's culture

0:05:43 > 0:05:50and talent to reduce huge audiences across the globe and our technology

0:05:50 > 0:05:53centre is attracting skilled and capital from the four corners of the

0:05:53 > 0:05:58earth with a new technology business being founded somewhere in the UK

0:05:58 > 0:06:07every hour producing world class products, including applications

0:06:07 > 0:06:16like city map and Matt Hancock. Today, the OBR delivers its second

0:06:16 > 0:06:24report for the fiscal year 2017-18 and I thank the team for their work.

0:06:24 > 0:06:32More jobs, rising wages, declining inflation, shrinking debt. The

0:06:32 > 0:06:39economy grew by 1.7% in 2017, compared to 1.5% forecast at the

0:06:39 > 0:06:46Budget. The OBR have revised up the forecast for 20 18th from 1.4% to

0:06:46 > 0:06:521.5%. Forecast growth is then unchanged at 1.3% in 2019 and 2020

0:06:52 > 0:06:59before picking up to 1.4% in 21 and 1.5% in 2022. That is the OBR's

0:06:59 > 0:07:06forecast, Mr Speaker. Forecasts are there to be beaten. As a nation, we

0:07:06 > 0:07:13did it in 2017. We should make it our business to do so again. Our

0:07:13 > 0:07:16remarkable job story is set to continue with the OBR forecasting

0:07:16 > 0:07:22more jobs in every year of this Parliament and over 500,000 more

0:07:22 > 0:07:26people enjoying the security of a regular pay packets by 2022. I am

0:07:26 > 0:07:31pleased to report that the OBR inspect inflation, which is

0:07:31 > 0:07:35currently above target at 3%, to fall back to target over the next 12

0:07:35 > 0:07:40months. Meaning that real wage growth is expected to be positive

0:07:40 > 0:07:47from the first quarter of 2018-19 and to increase steadily thereafter.

0:07:47 > 0:07:51I reported in the autumn that borrowing was due to fall in every

0:07:51 > 0:07:59year of the forecast. And debt to fall as a share of GDP from 2018-19,

0:07:59 > 0:08:04the OBR confirms this today and further revises down debt and

0:08:04 > 0:08:11borrowing in every year. Borrowing is now forecast to be £45.2 billion

0:08:11 > 0:08:16this year, 4.7 billion lower than forecast in November. And 108

0:08:16 > 0:08:21billion lower than in 2010. Which coincidentally, Mr Speaker, is

0:08:21 > 0:08:25almost exactly the total cost of the additional spending pledges made by

0:08:25 > 0:08:31the party opposite since the General Election in June last year. Mr

0:08:31 > 0:08:36Speaker, it has taken them just nine months to work out a plan to

0:08:36 > 0:08:44squander the fruits of eight years hard work. As a percentage of GDP,

0:08:44 > 0:08:53borrowing is forecast to be 2.2% in 2017 - 18, fallen to 1.8% in 18-19,

0:08:53 > 0:09:08one .6 in 19-20, 1.6%, 1.1% and 0.0% in 22-23. Meaning in 18th-19th we

0:09:08 > 0:09:12will run a small surplus borrowing only for capital investment. We are

0:09:12 > 0:09:20forecast to meet our adjusted borrowing target in 2021 with £15.4

0:09:20 > 0:09:24billion of headroom to spend Bobby has forecast that the Budget. The

0:09:24 > 0:09:31more favourable outlook for borrowing means the death cab is 1%

0:09:31 > 0:09:45lower in November speaking at 85.6% of GDP in 18/19 and falling... --

0:09:45 > 0:09:55debt cap. Finally 77.9% in 22-23. The first sustained fall in debt in

0:09:55 > 0:09:5917 years. A turning point in this nation's recovered from the

0:09:59 > 0:10:06financial crisis of a decade ago. Light at the end of the tunnel.

0:10:06 > 0:10:10Another step on the road to rebuilding public finances decimated

0:10:10 > 0:10:18by the party opposite. Mr Speaker, one that they would again placed at

0:10:18 > 0:10:23risk. Because under the policies of the party opposite, our debt would

0:10:23 > 0:10:30not fall over the next five years, it would rise by over 350 billion

0:10:30 > 0:10:37pounds. To more than 100% of our GDP. Undermining our recovery,

0:10:37 > 0:10:40threatening investment in British jobs, burdening the Next Generation

0:10:40 > 0:10:46and wasting billions and billions of pounds more on debt interest. Mr

0:10:46 > 0:10:52Speaker, there is indeed light at the end of the tunnel but we have

0:10:52 > 0:10:56got to make absolutely sure that it is in the Shadow Chancellor's train

0:10:56 > 0:11:00hurtling out of control in the other direction towards Labour's next

0:11:00 > 0:11:09economic train wreck. In autumn 2016, I changed the fiscal rules to

0:11:09 > 0:11:14give us more flexibility to adopt a balanced approach to repairing the

0:11:14 > 0:11:19public finances. Reducing debt, not for some ideological reason but to

0:11:19 > 0:11:29secure our economy against future shocks. We on this site are not so

0:11:29 > 0:11:34naive as to think that we have abolished the economic cycle. We

0:11:34 > 0:11:38want to see taxpayers' money finding our schools and hospitals, not

0:11:38 > 0:11:46wasted on debt interest. And because we want to give the Next Generation

0:11:46 > 0:11:55a fair chance. But Mr Speaker I do not agree with those who argue that

0:11:55 > 0:12:01every available penny must be used to reduce the deficit. Nor do I

0:12:01 > 0:12:04agree with the fiscal fantasists opposite to argue that every

0:12:04 > 0:12:10available penny should be spent immediately. We will continue to

0:12:10 > 0:12:13deliver a balanced approach, balancing debt reduction against the

0:12:13 > 0:12:17need for investment in Britain's future, support hard-working

0:12:17 > 0:12:23families through lower taxes and commitment to public services. Judge

0:12:23 > 0:12:26me by my record

0:12:26 > 0:12:33commitment to public services. Judge me by my record. Judge me by my

0:12:33 > 0:12:38record. They will see, Mr Speaker, if they have done their homework.

0:12:38 > 0:12:44Since the Autumn Statement 2016I have committed to £60 billion of new

0:12:44 > 0:12:51spending, share between long-term investment in Britain 's future and

0:12:51 > 0:12:56support for public services with almost £9 billion extra for our NHS

0:12:56 > 0:13:03and social care system, £4 billion going into the NHS in 2018-19 alone.

0:13:03 > 0:13:08As I promised that the autumn Budget, more to come if, as I hope,

0:13:08 > 0:13:11management and unions reach an agreement on a pay modernisation

0:13:11 > 0:13:17deal for our nations nurses and agenda for change staff. Who have

0:13:17 > 0:13:22worked tirelessly since the autumn in very challenging circumstances to

0:13:22 > 0:13:30provide the NHS care that we all valued so highly. £2.2 billion more

0:13:30 > 0:13:35on education and skills, and £31 billion going to fund

0:13:35 > 0:13:38infrastructure, research and development and housing to the

0:13:38 > 0:13:41national productivity investment fund, taking public investment in

0:13:41 > 0:13:45our schools, hospitals and infrastructure in this Parliament to

0:13:45 > 0:13:53its highest sustained level in 40 years. At the same time, we have cut

0:13:53 > 0:13:57taxes for a 31 million working people by raising the personal

0:13:57 > 0:14:01allowance again in line with our manifesto commitment, taking more

0:14:01 > 0:14:07than 4 million people out of tax altogether since 2010. Freezing fuel

0:14:07 > 0:14:13duty four an eighth successive year, taking the saving for a typical car

0:14:13 > 0:14:18driver to £850 campaign to Labour's plans, and raising the national

0:14:18 > 0:14:24living ways to £7 83 from next month giving the lowest paid in our

0:14:24 > 0:14:31society a well-deserved pay rise of over £2000 for a full-time worker

0:14:31 > 0:14:37since 2015. Mr Speaker, since becoming Chancellor, I have provided

0:14:37 > 0:14:43an extra £11 billion of funding for 2018-19 to help with short-term

0:14:43 > 0:14:47public spending pressures and to invest in Britain's future. In the

0:14:47 > 0:14:52longer term, I can confirm that at this years Budget, I will set an

0:14:52 > 0:14:57overall path for public spending for 2020 and beyond. With a detailed

0:14:57 > 0:15:02spending review to take place in 20 19th allocate funding between

0:15:02 > 0:15:07departments. That is how responsible people Budget. First, you work out

0:15:07 > 0:15:12what you can afford, then you decide what your priorities are, then you

0:15:12 > 0:15:18allocate between them. If in the autumn the public finances continue

0:15:18 > 0:15:23to reflect the improvements that today's reports hints at, then in

0:15:23 > 0:15:27accordance with our balanced approach and using the flexibility

0:15:27 > 0:15:30provided by the fiscal rules, I would have capacity to enable

0:15:30 > 0:15:35further increases in public spending and investment in the years ahead.

0:15:35 > 0:15:39While continuing to drive value for money to ensure that not a single

0:15:39 > 0:15:42penny of precious taxpayers money is wasted.

0:15:46 > 0:15:51A balanced approach, Mr Speaker, getting our debt down, supporting

0:15:51 > 0:15:56public services and investing in our nation's future, keeping taxes low

0:15:56 > 0:15:59and building a Briton fit for the future and an economy that works for

0:15:59 > 0:16:09everyone. -- Britain. Mr Speaker, there is much still to do. Since

0:16:09 > 0:16:14autumn 2016 we have set out our plan to back the enterprise and ambition

0:16:14 > 0:16:19of British business and the hard work of the British people. A plan

0:16:19 > 0:16:25to unleash our creators and innovators, in eventers -- inventors

0:16:25 > 0:16:31and discovers. To deliver the skills we will need to benefit from them.

0:16:31 > 0:16:34To tackle our long-standing productivity challenges and to save

0:16:34 > 0:16:40more loudly than ever that our economy will remain open and outward

0:16:40 > 0:16:46looking, confidence to compete with the best in the world. We choose to

0:16:46 > 0:16:51champion those who create jobs and wealth on which our prosperity and

0:16:51 > 0:16:56our public services both depends, not to demonise them. The Shadow

0:16:56 > 0:17:01Chancellor, Mr Speaker, is open about his ideological desire to

0:17:01 > 0:17:05undermine the market economy. Which is driven and unparalleled increase

0:17:05 > 0:17:10in our living standards over the last 15 years. We on this side

0:17:10 > 0:17:16reject his approach out 50 years. The market economy embraces talent

0:17:16 > 0:17:22and creates opportunity and provides jobs for millions and the tax

0:17:22 > 0:17:27revenues that underpin our public services. We will go on supporting

0:17:27 > 0:17:32British businesses. We are reducing business rates by over £10 billion

0:17:32 > 0:17:38and we committed at autumn budget 2017 to move to triennial

0:17:38 > 0:17:41evaluations from 2022. Today I am pleased to announce that we will

0:17:41 > 0:17:46bring forward the next business rates and evaluation to 2021 and

0:17:46 > 0:17:53moved to triennial reviews from that date. We will also launch a call for

0:17:53 > 0:17:56evidence to understand how best we can help the UK's least productive

0:17:56 > 0:18:01businesses to learn from and catch up with the most productive. And

0:18:01 > 0:18:06another on how we can eliminate the continuing scourge of late payments,

0:18:06 > 0:18:11a key ask from small businesses. Because, Mr Speaker, we are the

0:18:11 > 0:18:15party of small businesses and the champions of the entrepreneur. Since

0:18:15 > 0:18:23the budget, we have made substantial progress in our negotiations with

0:18:23 > 0:18:27the European Union. To deliver a Brexit that supports British jobs,

0:18:27 > 0:18:33businesses and prosperity. And, Mr Speaker, I look forward... I don't

0:18:33 > 0:18:37know what the honourable gentleman does but I look forward to another

0:18:37 > 0:18:42important step forward at the European Council next week. But we

0:18:42 > 0:18:47will continue to prepare for all eventualities. And today, my right

0:18:47 > 0:18:50honourable friend the Chief Secretary is publishing the

0:18:50 > 0:18:56departmental allocations of over £1.5 billion of Brexit preparation

0:18:56 > 0:19:02funding for 2018-19 which I announced at the autumn budget. Our

0:19:02 > 0:19:04modern industrial strategy sets out our plan to keep Britain at the

0:19:04 > 0:19:10forefront of new technology with the biggest increase in spending in four

0:19:10 > 0:19:15decades. Much of this new technology depends on high-speed broadband and

0:19:15 > 0:19:20today I can make the first allegations of the hundred £90

0:19:20 > 0:19:26million local full fibre challenge fund announced at autumn budget and

0:19:26 > 0:19:30confirm £25 million for the first five G test-beds. As our economy

0:19:30 > 0:19:36changes, we must ensure people have the skills they need to seize the

0:19:36 > 0:19:40opportunities ahead. We have committed over £500 million a year

0:19:40 > 0:19:48to the most ambitious post 16 reforms in many years. From next

0:19:48 > 0:19:52month, £50 million will be available to help employers to prepare for

0:19:52 > 0:19:57this role out. Last week the Education Secretary and I chaired

0:19:57 > 0:20:00the first meeting of the national retraining partnership between the

0:20:00 > 0:20:08government, the TUC and the CBI. I can reassure the House, Mr Speaker,

0:20:08 > 0:20:13there was no beer, no sandwiches, not even a canape, but there was a

0:20:13 > 0:20:16clear and shared commitments to training, to prepare the British

0:20:16 > 0:20:25people for a British future ahead. Next month, are £29 million

0:20:25 > 0:20:30construction fund will open to bits to open to 20 villages around the

0:20:30 > 0:20:35country. We are committed as a government to delivering 3 million

0:20:35 > 0:20:38apprenticeship starts by 2020 with the support of business through the

0:20:38 > 0:20:42apprenticeship levy but we recognise the challenges the new system

0:20:42 > 0:20:47presents to some small businesses looking to employ an imprint. So I

0:20:47 > 0:20:50can announce today that my right honourable friend the Education

0:20:50 > 0:20:54Secretary will release up to £80 million of funding support those

0:20:54 > 0:20:59small businesses in engaging an apprentice. We publish a

0:20:59 > 0:21:04consultation on improving the way the tax system supports self-funded

0:21:04 > 0:21:06training by employees and the self-employed and because we

0:21:06 > 0:21:11currently understand more about the economic payback from investing in

0:21:11 > 0:21:15our infrastructure than we do about investing in our people, I have

0:21:15 > 0:21:21asked the ONS to work with us on developing a more sophisticated

0:21:21 > 0:21:24measure of human capital so that future investment can be better

0:21:24 > 0:21:29targeted. Mr Speaker, we are undertaking the largest

0:21:29 > 0:21:32road-building programme since the 1970s. As Transport Secretary, I

0:21:32 > 0:21:37gave the green light to fund the new bridge across the River Mersey in

0:21:37 > 0:21:432011 and I was delighted to see it opened late last year. The largest

0:21:43 > 0:21:47infrastructure project in Europe, Crossrail, is due to open in just

0:21:47 > 0:21:53nine months' time. We are making progress on our plans to deliver the

0:21:53 > 0:21:59Cambridge, Milton Keynes, Oxford corridor. We are giving budgets to

0:21:59 > 0:22:02elected mayors over and over the northern powerhouses. We are in

0:22:02 > 0:22:09negotiations for city deals in many places, including Wales and Belfast.

0:22:09 > 0:22:17And today, we invite proposals from cities across England for the £840

0:22:17 > 0:22:21million fund I announced that the budget to deliver on their local

0:22:21 > 0:22:25transport priorities. As part of our plans to spread growth and

0:22:25 > 0:22:32opportunity to all parts of this United Kingdom. At the heart of our

0:22:32 > 0:22:36plan for building an economy that works for everyone is our commitment

0:22:36 > 0:22:40to tackle the challenges in our housing market. With an investment

0:22:40 > 0:22:45programme of £44 billion to raise housing surprise to 300,000 a year

0:22:45 > 0:22:52by the midst 20 20s and today I can update the House. We're working

0:22:52 > 0:22:58currently with 44 authorities who have bid into the £4.1 billion

0:22:58 > 0:23:03housing infrastructure fund to unlock homes in areas of high

0:23:03 > 0:23:07demand. We are concluding housing deals with ambitious authorities who

0:23:07 > 0:23:12have agreed to deliver above their local housing needs. I can announce

0:23:12 > 0:23:16today that we have just agreed a deal with the West Midlands who have

0:23:16 > 0:23:35committed to deliver 215,000 homes by 203031 -- 20 30,001 -- 2030-2031.

0:23:35 > 0:23:40We will more than double the size of the housing growth partnership with

0:23:40 > 0:23:47Lloyds banking group to £220 million providing additional finance for

0:23:47 > 0:23:53small builders. And London will receive an additional £1.17 billion

0:23:53 > 0:23:57to deliver a further 26,000 affordable homes. Including homes

0:23:57 > 0:24:02for social rent taking total affordable housing delivery in

0:24:02 > 0:24:11London to over 116,000 by the end of 21-22. Mr Speaker, the member for

0:24:11 > 0:24:16West Dorset has outlined his initial findings on the gap between planning

0:24:16 > 0:24:19permission granted and housing completions in a letter which I have

0:24:19 > 0:24:23placed in the library of the House. I look forward to his full report

0:24:23 > 0:24:33and budget. And I'm to inform the House that an estimated 6000 --

0:24:33 > 0:24:3660,000 first-time buyers have already benefited from the stamp

0:24:36 > 0:24:42duty relief that I announced in the autumn budget. I remind the House

0:24:42 > 0:24:48that the party opposite voted against that. In the autumn, we

0:24:48 > 0:24:54published a paper on taxing large digital businesses in the global

0:24:54 > 0:24:58economy and today we follow up with a publication that explores

0:24:58 > 0:25:02potential solutions and I look forward to discussing this issue

0:25:02 > 0:25:09with G20 finance minister in one Surrey is at the weekend. We also --

0:25:09 > 0:25:19Buenos Aires. We will consult on a new VAT collection mechanism on

0:25:19 > 0:25:23online sales to ensure that the VAT that consumers pay actually reaches

0:25:23 > 0:25:33the Treasury. We call for evidence as well on how to do digital

0:25:33 > 0:25:35payments whilst ensuring that cash remains available to those who need

0:25:35 > 0:25:40it. Mr Speaker, this government is determined that our generation

0:25:40 > 0:25:43should leave the natural environment in a better state than what we found

0:25:43 > 0:25:48it. And improve the quality of the air that we breathe. So we will

0:25:48 > 0:25:52publish a call for evidence on whether the use of non-agricultural

0:25:52 > 0:26:00red diesel tax relief contributes to poor air quality in urban areas. And

0:26:00 > 0:26:03following our successful intervention to incentivise green

0:26:03 > 0:26:08taxes, we will help the great British white van driver to go green

0:26:08 > 0:26:15with a consultation on reduced rates on the cleanest lands and we will

0:26:15 > 0:26:18follow up on the vital issue of plastic littering and the threats to

0:26:18 > 0:26:23our oceans with a call to evidence for supporters on delivering on our

0:26:23 > 0:26:27vow to tackle this complex issue. It will look at the whole supply chain

0:26:27 > 0:26:34for single use plastics, alternative materials, reusable options and

0:26:34 > 0:26:39recycling opportunities. It will look at how the tax system can help

0:26:39 > 0:26:41drive the technological progress and behavioural change that we need. Not

0:26:41 > 0:26:47as a way of raising revenue but as a way of changing behaviour and

0:26:47 > 0:26:52encouraging innovation. We will commit to investing to develop new

0:26:52 > 0:26:59greener products and processes funded from the revenues that are

0:26:59 > 0:27:05raised. And as a down payment, Mr Speaker, we will award £20 million

0:27:05 > 0:27:10now from existing departmental budgets to businesses and

0:27:10 > 0:27:13universities to stimulate new thinking and rapid solutions in this

0:27:13 > 0:27:20area during the call for evidence. Mr Speaker, we are delivering on our

0:27:20 > 0:27:24plan with a balanced approach, restoring the public finances,

0:27:24 > 0:27:28investing in our economy and public services, raising productivity

0:27:28 > 0:27:35through our modern strategy and building the homes are people need,

0:27:35 > 0:27:40tackling the environmental challenges that threaten our future,

0:27:40 > 0:27:43embracing technological change, seizing the opportunities ahead as

0:27:43 > 0:27:48we build our vision of a country that works for everyone. An economy

0:27:48 > 0:27:54where prosperity and opportunity are in reach of all. Wherever they live,

0:27:54 > 0:27:59whatever their gender, colour, creed or background come up when talent

0:27:59 > 0:28:03and hard work alone determines success, a beacon of enterprise and

0:28:03 > 0:28:14innovation. An outward looking free trading nation. One that is

0:28:14 > 0:28:18confident that our best days lie ahead of us. A force for good in the

0:28:18 > 0:28:26world's. A country we can all be proud to pass on to our children and

0:28:26 > 0:28:36I commend this statement to the House.John McDonnell!Let me thank

0:28:36 > 0:28:42the Chancellor for providing me with an earlier sight of his statement. I

0:28:42 > 0:28:46have to say to the Chancellor that his complacency today is astounding.

0:28:46 > 0:28:56We face in every public service a crisis on a scale we have never seen

0:28:56 > 0:29:02before. Has he not listens to the doctors, the nurses, teachers, the

0:29:02 > 0:29:07police officers, the carers and even own councillors? They are telling

0:29:07 > 0:29:11him they cannot wait for the next budget. They are telling him to act

0:29:11 > 0:29:17now. For eight years, they have been ignored by this government and today

0:29:17 > 0:29:22they have been ignored again. The Chancellor has claimed today that

0:29:22 > 0:29:26there is light at the end of the tunnel. This shows just how cut off

0:29:26 > 0:29:33from the real world hears. Last year growth in our economy was one of the

0:29:33 > 0:29:39lowest in the G-7. The slowest since 2012. The OBE are just predicted

0:29:39 > 0:29:45that we will scrape along the bottom for future years. Wages are lower

0:29:45 > 0:29:54now in real terms than they were in 2010 and they are still falling.

0:29:54 > 0:30:00The changes to benefits according to the resolution foundation will leave

0:30:00 > 0:30:0411 million families are worse off. As always, the harshest cuts:

0:30:04 > 0:30:13disabled people. -- fall on disabled people. The gap in productivity

0:30:13 > 0:30:17between this country and the rest of the G-7 is the widest for a

0:30:17 > 0:30:25generation, UK industry being 20 - 30% less productive. Investment by

0:30:25 > 0:30:30this Government in real terms is nearly 18 billion below its 2010

0:30:30 > 0:30:35level. This is a Government that cut research and development funding by

0:30:35 > 0:30:441 billion in real terms. Is this investment, stagnated in the last

0:30:44 > 0:30:48quarter of 2017. Despite the promises the Government continues to

0:30:48 > 0:30:52fail to address the regional imbalances in investment. London

0:30:52 > 0:30:55again will receive £5 more transport investment than Yorkshire and

0:30:55 > 0:31:01Humberside and the North. This is a Government on climate change, how

0:31:01 > 0:31:06dare they dart this is a Government that single-handedly destroyed the

0:31:06 > 0:31:13solar industry. 12,000 jobs lost as a result of subsidy cuts. The

0:31:13 > 0:31:20Chancellor talks about the fourth industrial revolution, but Britain

0:31:20 > 0:31:28has the lowest... The Chancellor talks about the fourth industrial

0:31:28 > 0:31:33revolution, but Britain has the lowest rate of industrial robots use

0:31:33 > 0:31:42in the ... They have put less than a tenth into what the US is spending

0:31:42 > 0:31:53in artificial intelligence. The Chancellor... The Tory bully boys

0:31:53 > 0:32:05can shout all they want...

0:32:08 > 0:32:12A full opportunity for people to contribute but the right honourable

0:32:12 > 0:32:18gentleman must be heard.They can shout of a once, make their snide

0:32:18 > 0:32:25remarks. People out there know the crisis in our community. The

0:32:25 > 0:32:28Chancellor has made great play of reaching a turning point in reducing

0:32:28 > 0:32:35the deficit in the debt. It is a bit rich coming from a party that has

0:32:35 > 0:32:39put 700 billion on the national debt over the last eight years. It is

0:32:39 > 0:32:49worth remembering that this is a party that promises that the deficit

0:32:49 > 0:33:01would be eliminated completely by 2015 - 16. Bizarrely, his

0:33:01 > 0:33:05predecessor now ensconced in the Evening Standard, Blackrock, or the

0:33:05 > 0:33:13Washington speakers bureau, has been tweeting about achieving three years

0:33:13 > 0:33:17late a deficit target he abandoned himself. The reality is the

0:33:17 > 0:33:20Chancellor and his predecessor have not tackle the deficit. What they

0:33:20 > 0:33:27have done is they have shifted it into the public services and his

0:33:27 > 0:33:32colleagues are responsible for. He has shifted it onto the Secretary of

0:33:32 > 0:33:36State for Health, on the shoulders of NHS managers, doctors, nurses

0:33:36 > 0:33:40throughout the country. NHS trusts will end this financial year 1

0:33:40 > 0:33:46billion in deficit. Doctors and nurses are struggling, being asked

0:33:46 > 0:33:52to do more and ball while there is 100,000 NHS posts going unfilled.

0:33:52 > 0:33:57Does the Chancellor really believe the NHS can wait another eight

0:33:57 > 0:34:01months for the life-saving funds it needs? How many people have to die

0:34:01 > 0:34:09waiting in an ambulance before he Acts? He has mentioned the payoff

0:34:09 > 0:34:12the NHS staff were expecting shortly, which was forced upon him

0:34:12 > 0:34:17by the Labour Party and trade unions campaign, hence the pay cut. Let me

0:34:17 > 0:34:24say this. Taking away a day 's holiday from those dedicated staff

0:34:24 > 0:34:36is mean-spirited. I ask him now, will he dropped this miserly Acts?

0:34:36 > 0:34:40The Chancellor has also shifted the deficit on to the Secretary of State

0:34:40 > 0:34:43for Education and headteachers with the first per capita cut in schools

0:34:43 > 0:34:50funding since the 1990s. Today, the Government is even trying to provide

0:34:50 > 0:35:041 million children of a decent... I am asking. I am asking the

0:35:04 > 0:35:13Chancellor and every Conservative MP...Order. The House must come

0:35:13 > 0:35:16down. There will be plenty of opportunity for questions from

0:35:16 > 0:35:20members in all parts of the House. The right honourable gentleman must

0:35:20 > 0:35:32be heard.I am asking, appealing to Tory MPs today, if they are serious

0:35:32 > 0:35:35about ending asperity, to vote with us this afternoon to give those

0:35:35 > 0:35:44children the free school meals they are entitled to. The Chancellor has

0:35:44 > 0:35:47shifted the deficit onto the Home Secretary and Justice Secretary was

0:35:47 > 0:35:55that crime is rising. He has cut the number of police officers by 21,500

0:35:55 > 0:36:00the number of firefighters by 8500. Our prisons and probation service

0:36:00 > 0:36:05are in dangerous crisis. In a shifting the deficit onto the

0:36:05 > 0:36:09shoulders of the Secretary of State for Communities and Local

0:36:09 > 0:36:11Government, in reality he has shifted the burden onto local

0:36:11 > 0:36:16councillors. Labour, Lib Dem and Conservative councillors alike. I

0:36:16 > 0:36:20raise again the stark reality of what this means for the most

0:36:20 > 0:36:27vulnerable children in our society. There has been a 40% cut in early

0:36:27 > 0:36:29intervention to support families. The result is the highest number of

0:36:29 > 0:36:37children taken into care since the 1980s. Children's charities, not us,

0:36:37 > 0:36:41children's charities are saying this. This crisis could turn into a

0:36:41 > 0:36:48catastrophe without further funding. Also, last year, 400 women seeking

0:36:48 > 0:36:50refuge were turned away because there were no places available for

0:36:50 > 0:36:58them in refuges. There are now nearly 5000 of our fellow citizens

0:36:58 > 0:37:06sleeping rough on our streets. More than doubled was in 2010.

0:37:06 > 0:37:13Tragically, tragically, one of our homeless, citizens died only feet

0:37:13 > 0:37:18away from the entrance to Parliament. He has mentioned

0:37:18 > 0:37:24additional housing funding. And as for London is not a new

0:37:24 > 0:37:28announcement, this was already announced. Any new funding is

0:37:28 > 0:37:31welcome but simply not enough and represents a cut in London's Budget

0:37:31 > 0:37:37can bet that the money Labour allocated in 2010. There are 1

0:37:37 > 0:37:41million vulnerable older people who have no access to the social care

0:37:41 > 0:37:44they need. Conservative councils are going bust. Many will be forced to

0:37:44 > 0:37:50hike up council tax. Councils are running out of reserves as the

0:37:50 > 0:37:59National Audit Office explain to us. I ask Chancellor, will he listen to

0:37:59 > 0:38:03Conservative council leaders? Like a zone in Surrey who said, and I

0:38:03 > 0:38:07quote, we are facing the most difficult financial crisis in our

0:38:07 > 0:38:15history. The Government cannot stand idly by while Rome burns. I ask him,

0:38:15 > 0:38:19how many more children have to come into care, how many more councils

0:38:19 > 0:38:23have to go bust, how many more run out of reserves before he wakes up

0:38:23 > 0:38:28to this crisis and Acts? Today's statement could have been a genuine

0:38:28 > 0:38:32turning point, but it is, depressingly, another missed

0:38:32 > 0:38:37opportunity. People know now that austerity was a political choice,

0:38:37 > 0:38:47not an economic necessity. THEY SHOUT. Conservatives chose to cut

0:38:47 > 0:38:53taxes for the super-rich, the corporations and the bankers. It was

0:38:53 > 0:38:59paid for by the rest of us in society. They even cut the levy on

0:38:59 > 0:39:04backers in last month's Finance Act. We were never all in this together,

0:39:04 > 0:39:08as they claimed, never. They cut investment at the very time we

0:39:08 > 0:39:13should have been developing the skills and infrastructure needed to

0:39:13 > 0:39:17raise productivity. And grass, yes, the technological revolution with

0:39:17 > 0:39:23both hands. And when they had a responsibility to meet the challenge

0:39:23 > 0:39:26of Brexit, we have a chance that this weekend admitted he has not

0:39:26 > 0:39:34even moderate the Government 's options. Today, we have the

0:39:34 > 0:39:37indefensible spectacle of a Chancellor congratulating himself on

0:39:37 > 0:39:40marginally improved economic forecasts. While he refuses to lift

0:39:40 > 0:39:48a finger as councils go bust, the NHS and social care in crisis,

0:39:48 > 0:39:53school budgets cut, homelessness doubled, wages falling. This isn't a

0:39:53 > 0:39:55Government preparing our country for the future, it is a Government

0:39:55 > 0:40:07setting us up to fail.Mr Speaker, the right honourable gentleman

0:40:07 > 0:40:10supported the switch to a single physical event, now he is

0:40:10 > 0:40:19complaining I haven't delivered a mini Budget today. I am not

0:40:19 > 0:40:21surprised he cannot understand anyone passing up the opportunity to

0:40:21 > 0:40:25introduce new taxes, because that is what a Labour Government would be

0:40:25 > 0:40:31doing, not once or twice a year, but every other week. He talks about

0:40:31 > 0:40:37Tory bullyboys. I heard him refer to some of my honourable friends as

0:40:37 > 0:40:41Tory bullyboys. Can I remind the House, this is the man who still

0:40:41 > 0:40:43refuses to apologise...

0:40:51 > 0:40:56Still refuses to apologise to my right honourable friend the Work and

0:40:56 > 0:40:59Pensions Secretary, so I don't want to hear anything about bullying from

0:40:59 > 0:41:08the benches opposite. He knows his Lennon, the task is to win power.

0:41:08 > 0:41:13That is why we see from the honourable gentleman the smooth mien

0:41:13 > 0:41:23of the bank manager -- Lenin. We get the glimpse of the sinister ideology

0:41:23 > 0:41:29lying beneath. Which would wreck our economy if he gets anywhere near the

0:41:29 > 0:41:32controls, threatening confiscation, dismissing property rights,

0:41:32 > 0:41:35undermining the cornerstones of our economy and the basis of our freedom

0:41:35 > 0:41:44and prosperity. He talks about political choices. Let me tell him

0:41:44 > 0:41:48the political choices we have made. We have close the tax gap to one of

0:41:48 > 0:41:54the lowest in the developed world. We have raised £175 billion by 100

0:41:54 > 0:41:59measures against tax evasion and avoidance. We are collecting 28% of

0:41:59 > 0:42:06all income tax from the richest 1% in our country. A higher percentage

0:42:06 > 0:42:12than in any year under Labour. He said real wages are falling. I have

0:42:12 > 0:42:17good news, the OBR expects real wages to rise from quarter 12018,

0:42:17 > 0:42:22which in case he has not worked it out starts in two weeks. He talks

0:42:22 > 0:42:28about disabled spending. Spending on the disabled will be higher in every

0:42:28 > 0:42:34year from this Parliament. He talks about research and development to

0:42:34 > 0:42:42support our economy. Spending is at record highs. He reels out to the

0:42:42 > 0:42:46same old bogus statistics on regional distribution. I think he

0:42:46 > 0:42:53has got the briefing from Russia today. Let me tell him this. The

0:42:53 > 0:42:59infrastructure authority has published figures which clearly show

0:42:59 > 0:43:03that the highest per capita spending on transport infrastructure

0:43:03 > 0:43:09investment is in the north-west region, Mr Speaker. Not the last

0:43:09 > 0:43:13time I checked one of the southern regions. All regions have benefited

0:43:13 > 0:43:19from the boom in employment. All will end this Parliament with lower

0:43:19 > 0:43:24unemployment and higher employment. He talks about £700 million of

0:43:24 > 0:43:31increased national debt. -- 700 billion. We have had to do with the

0:43:31 > 0:43:37legacy of Labour's meltdown in 2009 because it didn't fix the roof while

0:43:37 > 0:43:43the sun was shining. Our historic function is to clean up Labour's

0:43:43 > 0:43:46mess and my report today shows we are doing it once again. It talks

0:43:46 > 0:43:54about funding for the NHS. I've put £9 billion into the NHS since Autumn

0:43:54 > 0:43:59Statement 2016. He talks about school budgets, which are increasing

0:43:59 > 0:44:07per capita per pupil terms, real terms. On children's services, he

0:44:07 > 0:44:10must know the Department for Education research shows spending on

0:44:10 > 0:44:15the most vulnerable children has increased by around £0.5 billion in

0:44:15 > 0:44:20real terms since 2010. We have committed £1 billion to tackle rough

0:44:20 > 0:44:25sleeping and homelessness and made a manifesto pledge to eliminate rough

0:44:25 > 0:44:33sleeping by 2027 and have it by 2022. No one watching our exchanges

0:44:33 > 0:44:38today can be in any doubt that Britain faces a choice. We have a

0:44:38 > 0:44:42plan to get our economy growing, the Shadow Chancellor says it doesn't

0:44:42 > 0:44:46matter whether GDP grows are not. We have a plan to get people on the

0:44:46 > 0:44:51housing ladder while the Shadow Chancellor does not want to get

0:44:51 > 0:44:57bogged down in property rights. We have a plan to do with our debts,

0:44:57 > 0:45:00the Shadow Chancellor wants to send debt soaring because he fantasises

0:45:00 > 0:45:06that he can borrow for free. The choice is clear. Our vision of a

0:45:06 > 0:45:10dynamic, modern economy, or the party opposite's vision of an inward

0:45:10 > 0:45:14looking narrow minded country. Because we have to win this

0:45:14 > 0:45:20argument. If we do not, it will be ordinary people, not the rich and

0:45:20 > 0:45:24powerful, globally mobile, but ordinary people who will pay the

0:45:24 > 0:45:26price as they always do for a Labour's

0:45:33 > 0:45:40Mr Kenneth Clarke.I congratulate my right honourable friend on his

0:45:40 > 0:45:47statement based on competence government and grown-up politics.

0:45:47 > 0:45:53But when he comes to prepare his budget for November, I'm sure he

0:45:53 > 0:45:58will be looking for any new source of taxation which may be needed to

0:45:58 > 0:46:03put even more money than he already has into the NHS and social care,

0:46:03 > 0:46:08which are facing the vast increases in demand. Can I suggest that he

0:46:08 > 0:46:13looks at some of the extraordinary tags anomalies he has inherited in

0:46:13 > 0:46:18the tax treatment of older prosperous people in full-time work

0:46:18 > 0:46:27in this country. It cannot be right. Declare your interest!

0:46:27 > 0:46:34LAUGHTER I think I am perfectly well placed.

0:46:34 > 0:46:44I cannot be accused of personal bias. It is absurd that older

0:46:44 > 0:46:49employees actually pay less tax than their younger colleagues on their

0:46:49 > 0:46:54income because they don't pay national insurance. It cannot be

0:46:54 > 0:46:57right that people in large houses enjoying capital gains from the

0:46:57 > 0:47:06housing market has disregarded the means test purposes if they ever

0:47:06 > 0:47:11needs certain types of social care. So as the early budget in the

0:47:11 > 0:47:14Parliament are a time for tough and difficult decisions, will my right

0:47:14 > 0:47:19honourable friend let me know that he will be looking at those much

0:47:19 > 0:47:25overdue anomalies that need to be addressed, some justice between the

0:47:25 > 0:47:30generations I think is being demanded by our constituents.Well,

0:47:30 > 0:47:36I am a great fan of the concept of intergenerational fairness and as my

0:47:36 > 0:47:41right honourable and learn it friend will know as the former Chancellor

0:47:41 > 0:47:42of the Exchequer, all chancellors looked at all options in the run-up

0:47:42 > 0:47:47to every budget and I can undertake to him that I will do so in the

0:47:47 > 0:47:53run-up to the budget in 2018. In the meantime, Mr Speaker, I can tell my

0:47:53 > 0:47:56right honourable friend that there is a mechanism for voluntary

0:47:56 > 0:48:01donations to Her Majesty's Treasury and I am happy to send him a copy of

0:48:01 > 0:48:12our bank details.I have to say that was much ado about nothing. The real

0:48:12 > 0:48:16tragedy is that we are ten years on from the financial crisis and

0:48:16 > 0:48:20austerity is still with us and there is a lack of hope given to the

0:48:20 > 0:48:25people of the United Kingdom from this statement today. Mr Speaker, at

0:48:25 > 0:48:34the weekend we saw the honourable member in his other job as a

0:48:34 > 0:48:39linesman at a football match, waving his flag enthusiastically calling

0:48:39 > 0:48:52for a red card. If anybody deserves a red card today and

0:48:54 > 0:48:56assist we hear the Chancellor complaining we have had consistent

0:48:56 > 0:49:01economic growth and we can look forward to consistent economic

0:49:01 > 0:49:06growth over coming years but the reality is that in 2019 when we're

0:49:06 > 0:49:10supposed to be leaving European Union that the OBR is predicting

0:49:10 > 0:49:16that growth will be easily 1.3%. And it is forecast to remain at

0:49:16 > 0:49:23roundabout 1.5% over the coming years. What is below the historic

0:49:23 > 0:49:28growth in this country. When I hear the Chancellor talk about wage

0:49:28 > 0:49:33growth, he ought to reflect that we have got lost decade of wage growth

0:49:33 > 0:49:39in the United Kingdom. But let me prick his balloon as far as this one

0:49:39 > 0:49:45is concerned because the OBR book is very clear, real earnings growth

0:49:45 > 0:49:50will remain subdued for the next five years. That is the reality and

0:49:50 > 0:49:56perhaps the Chancellor should stop this spinning and become honest with

0:49:56 > 0:50:00people about what will happen. He talks about light at the end of the

0:50:00 > 0:50:05tunnel. Let me tell him that the light at the end of the tunnel is a

0:50:05 > 0:50:09hard Brexit and the impact of lower growth which is going to cost jobs

0:50:09 > 0:50:16and prosperity in this country. Mr Speaker, slower earnings growth,

0:50:16 > 0:50:21higher inflation and cuts to the benefit system are resulting in

0:50:21 > 0:50:25poorer incomes for the poorest households and rising inequality.

0:50:25 > 0:50:30Once again the Chancellor has failed to bring his government's disastrous

0:50:30 > 0:50:34austerity programme to an end and worse still he has his high head

0:50:34 > 0:50:39firmly in the sand over Brexit. Mr Speaker, this government is going

0:50:39 > 0:50:50ahead with a devastating cuts to Scotland's's budgets. I hear the

0:50:50 > 0:50:53Scottish Tories shouting rubbish but perhaps what they can do is join

0:50:53 > 0:50:58with us on these benches and defender Scotland's interest.

0:50:58 > 0:51:08Because let me explain a reality. Over the decade 2010-11 to 2019-20,

0:51:08 > 0:51:14Scotland's grant has been cut by £2.6 billion in real terms. That is

0:51:14 > 0:51:17an 8.1% cuts and the people of Scotland should watch what is

0:51:17 > 0:51:22happening with the Scottish Tory MPs calling out once again, failing to

0:51:22 > 0:51:34stand up for Scotland's interest. Let me say respectfully that these

0:51:34 > 0:51:38Tory MPs have been here for quite some months and they should

0:51:38 > 0:51:41understand that if they want to speak they should try and catch the

0:51:41 > 0:51:52Speaker 's eye. It is undignified to call out the way they are doing.

0:51:52 > 0:51:59Order! There is much excitable gesticulation taking place on both

0:51:59 > 0:52:04sides of the House. I urge members to keep their order papers to

0:52:04 > 0:52:10themselves and not lash out with their hands gesticulating in all

0:52:10 > 0:52:14sorts of directions. They are in danger of becoming rather eccentric

0:52:14 > 0:52:19Members of the House. Mr Ian Blackford.Thank you Mr Speaker,

0:52:19 > 0:52:26these are serious matters. The extent of the reduction is

0:52:26 > 0:52:37highlighted by... Noted that by 2020 it will be five million pounds lower

0:52:37 > 0:52:40than 2018. Mr Speaker, I paid tributes to the honourable members

0:52:40 > 0:52:48on these benches who fought so hard on behalf of their constituents

0:52:48 > 0:52:56to... VAT scrapped. That was a fantastic result. However, the

0:52:56 > 0:52:58reality is that Scotland has suffered under this policy of the

0:52:58 > 0:53:03last five years. Were the Chancellor be bringing forward plans to return

0:53:03 > 0:53:08175 million which has already been paid? The ATV should never have been

0:53:08 > 0:53:13charged. It was a vindictive measure imposed on Scotland by a Tory

0:53:13 > 0:53:21government. Give Scotland back the hundred 75 to invest in our front

0:53:21 > 0:53:31line services. Will the Tory MPs join the SNP or will they remain

0:53:31 > 0:53:38silent on the cash grab that we have seen from Westminster? The austerity

0:53:38 > 0:53:41policies disproportionately affect the most disadvantaged individuals

0:53:41 > 0:53:46while giving tax breaks to the better off in society. The

0:53:46 > 0:53:49resolution foundation recently estimated that the government's

0:53:49 > 0:53:54austerity programme will leave the poorest third of households an

0:53:54 > 0:54:03average of £750 a year worse off by 2022 - 23. Mr Speaker, in Scotland's

0:54:03 > 0:54:14we have a new progressive tax policy. I can see Conservatives

0:54:14 > 0:54:18saying the reality is for most people in Scotland's tax is lower.

0:54:18 > 0:54:26The Scottish Government are able to reverse this term real term budget

0:54:26 > 0:54:31cut. And ensure that the majority of taxpayers in Scotland's Payless and

0:54:31 > 0:54:36in the rest of the UK. However, Scotland's new taxation powers

0:54:36 > 0:54:42should not exist simply to mitigate against UK Government austerity. Mr

0:54:42 > 0:54:45Speaker, in Scotland, the SNP government gone further to support

0:54:45 > 0:54:52those on low incomes. In the recent budget at Holyrood, a package was

0:54:52 > 0:54:57secured which raises the threshold of a guaranteed 3% increase on those

0:54:57 > 0:55:05earning up to £36,500 benefiting up to three quarters of Scottish public

0:55:05 > 0:55:09sector workers. A Scottish Government on the side of

0:55:09 > 0:55:13hard-working public sector workers. Mr Speaker, as we near the EU summit

0:55:13 > 0:55:19at the end of this month in Brussels, the progress in this

0:55:19 > 0:55:24government towards Brexit has been nothing short of shameful. The UK

0:55:24 > 0:55:31Government's own another analysis shows that Scotland will suffer more

0:55:31 > 0:55:36than the United Kingdom as a whole with the economic output.

0:55:36 > 0:55:41Threatening to reduce growth by a massive 9% over 15 years. Make no

0:55:41 > 0:55:46mistake that their hard Brexit is going to hit the pockets of families

0:55:46 > 0:55:50and is going to lead to a loss in tax revenue expectations. It is

0:55:50 > 0:55:54therefore going to affect spending on public services and yet the

0:55:54 > 0:56:00Chancellor is silent on the risks to our economy. Risks to our economy

0:56:00 > 0:56:04when the stresses and strains of a mere decade of austerity is hurting.

0:56:04 > 0:56:10The fact is, Mr Speaker, Scotland is shackled to a sinking ship. The

0:56:10 > 0:56:15Scottish budget passed last month illustrates the real diversions in

0:56:15 > 0:56:21critical choices across the UK. At Scotland chosen to stand by our

0:56:21 > 0:56:28outstanding public sector staff. We continue to mitigate the worst

0:56:28 > 0:56:33atrocities of this government's ideological austerity agenda. We

0:56:33 > 0:56:36will continue to press for for nothing less then continued UK

0:56:36 > 0:56:45membership of the single customs union. We will never stop fighting

0:56:45 > 0:56:58to get justice for 1950s women... In conclusion, Mr Speaker, it is

0:56:58 > 0:57:02obvious, the Chancellor must waken up to the economic injustices he

0:57:02 > 0:57:04oversees and tell the South as a matter of urgency how the economy

0:57:04 > 0:57:14will stand a hard Brexit.Mr Speaker, a matter of more immediate

0:57:14 > 0:57:18urgency to the people of Scotland will stand the highest rates of

0:57:18 > 0:57:29taxation in the United Kingdom. An economy that under the SNP

0:57:29 > 0:57:34government is already growing more slowly than the economy of the

0:57:34 > 0:57:38United Kingdom. I don't know about sinking ship, it's about keeping of

0:57:38 > 0:57:44floats I would suggest to the right Honourable gentleman. He talks about

0:57:44 > 0:57:48earnings. I suggest that the right honourable gentleman looks at real

0:57:48 > 0:57:56household disposable income which as I'm sure he knows, is now 4.4%

0:57:56 > 0:58:03higher than at the start of 2010. We have cut taxes for 31 million people

0:58:03 > 0:58:07across this country at a time when his government is putting taxes up.

0:58:07 > 0:58:12We have taken 4 million people out of taxation, improving the ability

0:58:12 > 0:58:18of people to retain their hard earned incomes. He talks about

0:58:18 > 0:58:22Brexit spreading alarm. He knows very well that my right honourable

0:58:22 > 0:58:27friend the Prime Minister is working tirelessly to deliver a Brexit that

0:58:27 > 0:58:34will secure British jobs, British businesses and British prosperity.

0:58:34 > 0:58:37And we would be aided in that enterprise if he and his government

0:58:37 > 0:58:42would work closely with us to deliver an outcome that is good for

0:58:42 > 0:58:48the whole of the United Kingdom. He talks about Scotland's budget but of

0:58:48 > 0:58:52course Scotland now has its own tax-raising power and the people of

0:58:52 > 0:58:55Scotland know how he intends to use them. Perhaps he is forgotten but I

0:58:55 > 0:59:01will just try to help him with his short-term amnesia, at the autumn

0:59:01 > 0:59:05budget in 2017, just four months ago, Scotland received an additional

0:59:05 > 0:59:13£2 billion of funding as a result of the measures announced then. As for

0:59:13 > 0:59:20the VAT on police and Fire Services measure being vindictive, the

0:59:20 > 0:59:25Scottish National Party government was told explicitly that it would

0:59:25 > 0:59:31not be possible to refund VAT if it went ahead with the police

0:59:31 > 0:59:37organisation. It decided to do so anyway. He may use the adjective

0:59:37 > 0:59:40vindictive but I suspect my right honourable friend 's would be able

0:59:40 > 0:59:45to think of another adjective that describes a government that pursued

0:59:45 > 0:59:52such a ridiculous course of action. Whatever impression may have been

0:59:52 > 0:59:56given so far I gently remind the House of this is not a debate but I

0:59:56 > 1:00:00question and answer session following a ministerial statement.

1:00:00 > 1:00:06Nicky Morgan.

1:00:06 > 1:00:10I want to congratulate the Chancellor on the balanced approach

1:00:10 > 1:00:15he has taken. He and the premise to have rightly identifies housing as

1:00:15 > 1:00:19an economic and social priority. He will be aware that the Treasury and

1:00:19 > 1:00:25Select Committee's report on his Budget of 2017 mentioned the cap on

1:00:25 > 1:00:30housing revenue accounts might be lifted to allow local authorities --

1:00:30 > 1:00:39authorities to pay to play their part...We have already relaxed the

1:00:39 > 1:00:44borrowing cap in respect of local authorities in areas with high

1:00:44 > 1:00:48demands and low affordability. We will carefully monitor the

1:00:48 > 1:00:50consequences of that, how that delivers, and keep it under

1:00:50 > 1:01:01continuous review.The lights the Chancellor can see in the tunnel is

1:01:01 > 1:01:04the Brexit locomotive barrelling headlong towards him and our schools

1:01:04 > 1:01:14and our hospitals. What is he going to do to prevent that FTA style

1:01:14 > 1:01:17scenario which is owned Treasury officials say will lead a £55

1:01:17 > 1:01:25billion train wreck in our public services?As he knows, I am

1:01:25 > 1:01:29committed to delivering a Brexit which protects British jobs, British

1:01:29 > 1:01:34businesses and British prosperity. I spent a very significant amount of

1:01:34 > 1:01:38my working time ensuring that is the route we follow, I expect we will

1:01:38 > 1:01:43make further progress at the march from European Council. I understand

1:01:43 > 1:01:46the concerns that he expresses on behalf of British business. I have

1:01:46 > 1:01:50to tell him something. I talked to businesses all day everyday. It is

1:01:50 > 1:01:58my job. He says, so deceived business is concerned about what the

1:01:58 > 1:02:03consequence is of a bad Brexit deal. Business is much more concerned

1:02:03 > 1:02:08about the consequences of the policies advanced by his right

1:02:08 > 1:02:15honourable friend on the front bench.Can I say what a huge

1:02:15 > 1:02:25pleasure it is to see the Chancellor so upbeat even as he said Tiggerish.

1:02:25 > 1:02:31He is right to be soaked with an appointment at the lowest for 30

1:02:31 > 1:02:40years... At the next Budget, given we are about four months away from

1:02:40 > 1:02:43official departure date from the EU, would my right honourable friend

1:02:43 > 1:02:47looked to put into the Red Book what he plans to do with the money we are

1:02:47 > 1:02:54no longer going to pay to the EU? Always a pleasure to hear from my

1:02:54 > 1:02:59right honourable friend. Luck, we are absolutely not complacent. We

1:02:59 > 1:03:06face many challenges as well as... We have a plan to embrace the

1:03:06 > 1:03:10opportunities and rise to the challenges. This country has many

1:03:10 > 1:03:14advantages that many of our neighbours would give their right

1:03:14 > 1:03:19arm to enjoy. We must go forward in good heart, robust late, to seize

1:03:19 > 1:03:23these opportunities and make the best of our future opportunities. I

1:03:23 > 1:03:27say to my right honourable friend on the specific issue around tax and

1:03:27 > 1:03:33spending, of course, in the forthcoming Budget, we will look at

1:03:33 > 1:03:39taxation and spending over the future period. The OBR, of course,

1:03:39 > 1:03:45will decide what it presents in its report to the House and my right

1:03:45 > 1:03:47honourable friend will have an opportunity to question them about

1:03:47 > 1:03:52their approach when they appear in the House shortly after the Budget

1:03:52 > 1:04:02statement.Credit rose by 9% in the last year. The House of debt ratio

1:04:02 > 1:04:08to income is 138%, rapidly approaching levels seen before the

1:04:08 > 1:04:11financial crisis. With interest rates now forecast by the OBR to

1:04:11 > 1:04:15rise faster than we previously envisaged, are we asking consumers

1:04:15 > 1:04:19to keep the wheels on the road of the economic recovery? Is that right

1:04:19 > 1:04:28and sustainable?She is right to raise this issue. Something we keep

1:04:28 > 1:04:32under constant review. I talked regularly to the Governor of the

1:04:32 > 1:04:36Bank of England about personal debt. She probably will no personal House

1:04:36 > 1:04:41of debt rose in all but one year of the 13 year Labour Government and it

1:04:41 > 1:04:48is now at a lower level than it was pre-crisis. The judgment of the

1:04:48 > 1:04:52authorities at the moment is that household debt levels are

1:04:52 > 1:04:57sustainable. She is right to draw our attention to it, something we

1:04:57 > 1:05:00keep under close review.I wonder if the Chancellor could give more

1:05:00 > 1:05:05details on the announcement that the O N S will work with Treasury on a

1:05:05 > 1:05:09more sophisticated measure of human capital. In a knowledge-based

1:05:09 > 1:05:13economy this becomes more crucial than ever for driving our economic

1:05:13 > 1:05:17productivity. Could we have more details of the timelines and the

1:05:17 > 1:05:24nature of that work?She gives me the opportunity to thank for

1:05:24 > 1:05:28sparking this line of enquiry. In a letter she wrote to me. I did

1:05:28 > 1:05:33challenge the Treasury with the challenge that actually they are

1:05:33 > 1:05:37more focused on the returns to infrastructure investment than

1:05:37 > 1:05:41skills investment. When we looked at it in detail, we discovered the

1:05:41 > 1:05:44metrics for measuring the returns to investment in human capital are not

1:05:44 > 1:05:53as well developed as they should be. This is something the ONS has a big

1:05:53 > 1:05:58fraud. As we move into a knowledge-based economy with

1:05:58 > 1:06:05technological changes ahead of us it is important we are able to compare

1:06:05 > 1:06:17objectively and appropriately human infrastructure and human capital...

1:06:17 > 1:06:25The OECD published their early growth forecast putting us at the

1:06:25 > 1:06:32bottom with forecast growth this year of 1.3%. I think it is pretty

1:06:32 > 1:06:36clear that there is no Brexit dividend on the scene for British

1:06:36 > 1:06:42economy. It is to be welcomed that the deficit is getting back to a

1:06:42 > 1:06:45manageable level. The Chancellor of the Exchequer must know because even

1:06:45 > 1:06:51his own backbenchers are telling him that extra money is needed for our

1:06:51 > 1:06:54hospitals, schools and police. That money is not there because of the

1:06:54 > 1:07:01previous decisions to make premature cuts to capital gains tax and

1:07:01 > 1:07:05inheritance tax. The Chancellor must have heard the Institute for Fiscal

1:07:05 > 1:07:10Studies calling for increased capital investment in housing up to

1:07:10 > 1:07:173% of our economy. Why does not you listen to the Institute for Fiscal

1:07:17 > 1:07:22Studies?He knows and I know that our economy doesn't still face

1:07:22 > 1:07:25uncertainty as we go through the negotiation process with the

1:07:25 > 1:07:32European Union. I am convinced from every conversation I have with

1:07:32 > 1:07:37business leaders, investors, that as we deliver greater clarity about our

1:07:37 > 1:07:40future arrangements, future relationship with the EU over the

1:07:40 > 1:07:45coming months, we will see business investment increasing, consumer

1:07:45 > 1:07:50confidence improving. We beat the forecasting 2017, let's beat it

1:07:50 > 1:07:56again in 2018. I do believe economic growth matters. The right honourable

1:07:56 > 1:07:59gentleman opposite says it does not matter what the level of GDP is, I

1:07:59 > 1:08:05don't agree because the level... I will send him the quote a peak and

1:08:05 > 1:08:09immediately recall what I said. I believe it matters because it is

1:08:09 > 1:08:15what drives living standards. We are putting extra money into public

1:08:15 > 1:08:18services, £11 billion in 2018-19 that I have put in since I happened

1:08:18 > 1:08:23Chancellor. On his point about housing investment, we agreed that

1:08:23 > 1:08:30we have a major challenge in the housing market. We have booked a

1:08:30 > 1:08:32significant amount, £44 billion, into doing with this challenge of

1:08:32 > 1:08:37the remainder of the parliament. I have to say that our significant

1:08:37 > 1:08:41non-financial constraints in being able to do more, there are physical

1:08:41 > 1:08:44bottlenecks around skilled labour, materials as well, but it is

1:08:44 > 1:08:51something we will keep under review. The present Conservative chance of

1:08:51 > 1:08:53the Exchequer, perhaps he could remind our right honourable friend

1:08:53 > 1:08:59the previous chance of the Exchequer given where our electorate support

1:08:59 > 1:09:02comes from its might not be wise politics to impose a targeted new

1:09:02 > 1:09:13tax on our older supporters. He could remind our right honourable

1:09:13 > 1:09:17friend that we will be serving £12 billion a year in contributions to

1:09:17 > 1:09:24the European Union.I assume he is referring to the previous

1:09:24 > 1:09:28Conservative Chancellor up one. On that assumption, I think he is

1:09:28 > 1:09:37probably...The winter crisis in the NHS left us with cancelled

1:09:37 > 1:09:42operations, patients sleeping on the floor, ditched targets and public

1:09:42 > 1:09:46apology from the Prime Minister. Neither these bring or Spring

1:09:46 > 1:09:52statement have provided easing on these pressures. Given he knows that

1:09:52 > 1:09:55logic is going to be too late to provide any of the initial funding

1:09:55 > 1:10:01for next year's winter crisis that he knows both the NHS and social

1:10:01 > 1:10:06care will need. He knows this in his heart and in his spreadsheets. Will

1:10:06 > 1:10:10he follow the Prime Minister and and and a public apology to the staff

1:10:10 > 1:10:14and patients to the NHS who are going to have to endure next year's

1:10:14 > 1:10:19crisis because of this failure?I have already made it clear that we

1:10:19 > 1:10:25admire greatly the work of NHS staff who have faced extremely difficult

1:10:25 > 1:10:30circumstances cheering this winter with the pressures of flu and

1:10:30 > 1:10:34extreme winter weather. This is a spring statement, not a physical

1:10:34 > 1:10:39events. I said and I will say again to the right honourable lady that we

1:10:39 > 1:10:44are putting £4 billion additionally into the NHS in 2018-19 and I have

1:10:44 > 1:10:51committed to putting further money in in 2018-19 to find a pay

1:10:51 > 1:10:55settlement for nurses and agenda for change that if the management and

1:10:55 > 1:11:01unions reach agreement.It is welcome to hear from the Chancellor

1:11:01 > 1:11:06such good news on debt and growth. And in particular looking at the

1:11:06 > 1:11:13effects of the real lives of people in my Ashford constituency worsens

1:11:13 > 1:11:172010, unemployment, youth unemployment, is down 48% and

1:11:17 > 1:11:24apprenticeships are up 6850. In continuing his successful, balanced

1:11:24 > 1:11:26approach, will he commit to dealing with the social care sector in

1:11:26 > 1:11:30particular because without the act is going to be an increasingly

1:11:30 > 1:11:37important issue in the years and decades ahead.I am grateful. He has

1:11:37 > 1:11:41done a great deal of work on this issue. We are absolutely aware of

1:11:41 > 1:11:45the pressures on the social care system. They are not short-term

1:11:45 > 1:11:50pressures. They are driven by demographics, an ageing population.

1:11:50 > 1:11:55We have to do three things. In the short term, we have provided

1:11:55 > 1:11:57additional money, £2 billion of additional support in at Spring

1:11:57 > 1:12:04Budget last year. The Minister for Housing and community is put another

1:12:04 > 1:12:09£150 million of social care grant in at the local government set in just

1:12:09 > 1:12:16eight a few weeks ago. In the medium term, we have to work to get the

1:12:16 > 1:12:18standards of the best. There is excellent practice across the

1:12:18 > 1:12:25country but it isn't everywhere. The variation between delayed discharges

1:12:25 > 1:12:32between different authorities is completely unacceptable. Publishing

1:12:32 > 1:12:36a green paper on social care, the future of social care which we will

1:12:36 > 1:12:41deliver to the House before the summer recess.The Chancellor says

1:12:41 > 1:12:47forecasts are there to be beaten. I agree with them. Can he explain to

1:12:47 > 1:12:52me why since his Budget in November the OBR have not been able to

1:12:52 > 1:13:03increase the growth forecast in 2019, 2020, 2021 or 2022. It can't

1:13:03 > 1:13:07be the negative impact of Brexit because the OBR still don't have

1:13:07 > 1:13:11information from Government in order to forecast that. So what on earth

1:13:11 > 1:13:18is his excuse?Remind the honourable lady, Mr Speaker, that the OBR's

1:13:18 > 1:13:22autumn report in November was only four months ago. In the normal

1:13:22 > 1:13:28course of events one would not expect in the absence of a shock to

1:13:28 > 1:13:33the economy economic forecast to change significantly. The front end

1:13:33 > 1:13:43has changed because the outturn for 2017-18 has changed. The OBR focus

1:13:43 > 1:13:47growth two percentage points lower than it turned out in 17-18 and that

1:13:47 > 1:13:54has a knock through a date which has increased the growth projection.

1:13:54 > 1:14:03Successful businesses drive growth. How much is the corporate tax take

1:14:03 > 1:14:08going up since corporation tax has been cut? And will he do nothing to

1:14:08 > 1:14:13hinder the internationally competitive tax rates for corporate

1:14:13 > 1:14:18in this country?I can. I am happy to tell my honourable friend that

1:14:18 > 1:14:23since we reduced the rate of corporate tax to 19%, the yields,

1:14:23 > 1:14:27the amount of tax be raised for our public services, hospitals, schools

1:14:27 > 1:14:33has gone up by 54%. It is clear that being one of the most competitive

1:14:33 > 1:14:38tax jurisdictions in the T20 is one of the determining factors in many

1:14:38 > 1:14:43investment decisions coming to the UK, creating the jobs and prosperity

1:14:43 > 1:14:49we need for the future. -- G20.The Chancellor is right to talk up the

1:14:49 > 1:14:55UK economy with good news. Plenty in this House will rectify this play Dr

1:14:55 > 1:15:00down. -- recklessly tottered down. He did make a promised there would

1:15:00 > 1:15:06be an enquiry into VAT on the hospitality industry and a batch of

1:15:06 > 1:15:11sport would be made in time for the Budget in the autumn. When will he

1:15:11 > 1:15:16make the announcement as to when that enquiry will start and the

1:15:16 > 1:15:16terms of its?

1:15:20 > 1:15:28I have laid out today setting out the review consultations and that is

1:15:28 > 1:15:31amongst them so if he looks of it after this statement is over he will

1:15:31 > 1:15:37see that it is there.Can I draw the Chancellor's attention to the recent

1:15:37 > 1:15:40research published by the International monetary fund which

1:15:40 > 1:15:45says that the choice we made in 2010 to deal with the deficit is

1:15:45 > 1:15:48primarily by controlling spending rather than tax rises as the

1:15:48 > 1:15:53opposition would have was the right choice meant that this economy grew

1:15:53 > 1:15:56faster than our European competitors and has put him in the position

1:15:56 > 1:16:02where he can deliver more money for our priorities whilst reducing the

1:16:02 > 1:16:06debt in the balanced way that he sets out.I'm grateful to my right

1:16:06 > 1:16:10honourable friend and he is right. It was the right choice. Because we

1:16:10 > 1:16:14made that choice throughout that period we saw employment in this

1:16:14 > 1:16:20country continuing to grow. We avoided the very high levels of

1:16:20 > 1:16:23unemployment that many of our European neighbours suffer. We

1:16:23 > 1:16:28avoided the catastrophic generation blighting levels of youth

1:16:28 > 1:16:32unemployment that many of our European neighbours suffered and

1:16:32 > 1:16:35that will be affecting their economies and societies not just for

1:16:35 > 1:16:41a few more years but for 30, 40, 50 years to come. It was the right

1:16:41 > 1:16:46decision. We have executed our plan and we should stick to it.The

1:16:46 > 1:16:52Chancellor has been very upbeat today but why is he so upbeat when

1:16:52 > 1:16:59the growth figures show that we have gone from near the top of the G-7

1:16:59 > 1:17:07and G20 growth lists the bottom of both?Well, Mr Speaker, I am clear

1:17:07 > 1:17:12and I have alluded to this already that one of the factors that is

1:17:12 > 1:17:16depressing the forecast growth is the uncertainty that still exists

1:17:16 > 1:17:22around the economy. Now, if she liked me expects that uncertainty to

1:17:22 > 1:17:25dissipate over time then she should look through it to the fundamentals

1:17:25 > 1:17:29of our economy to the underlying strength of our economy and this is

1:17:29 > 1:17:35an economy that is in a fundamentally good shape. Once we

1:17:35 > 1:17:39can restore confidence uncertainty about our future path, I am

1:17:39 > 1:17:40confident those fundamental strengths will deliver increased

1:17:40 > 1:17:49economic growth.My right honourable friend made a fantastic statement.

1:17:49 > 1:17:55Does he join me in welcoming the 65% fall in youth unemployment since

1:17:55 > 1:18:012010 and does he agree with me that whilst it is entirely right to

1:18:01 > 1:18:05mention intergenerational fairness, the worst form of that would be if

1:18:05 > 1:18:08we allowed high youth unemployment is to peak as it has done to suit

1:18:08 > 1:18:12dangerous levels in the rest of Europe.Of course I welcome the very

1:18:12 > 1:18:17large fall in youth unemployment in his constituency but that will be

1:18:17 > 1:18:20from a base that was very much lower than has come to be considered

1:18:20 > 1:18:25normal in many of our European neighbours. As you rightly says,

1:18:25 > 1:18:30that is not just an economic factor but it is a societal factor.

1:18:30 > 1:18:35Resistant high levels of youth unemployment have a hugely damaging

1:18:35 > 1:18:39affect as we have discovered in the past in this country to our cost. If

1:18:39 > 1:18:44someone is unemployed during those formative years they are far more

1:18:44 > 1:18:46likely to remain unemployed and unemployable for the rest of their

1:18:46 > 1:18:52working life.It is astonishing that Brexit which is the single biggest

1:18:52 > 1:18:58risk to the economy merited only two mentions in the Chancellor 's's

1:18:58 > 1:19:02Spring Statement. If the economy and economic outlook is so rosy perhaps

1:19:02 > 1:19:07he can explain why almost every school in my constituency is facing

1:19:07 > 1:19:12school budget cuts, why my local NHS Trust is in special measures and why

1:19:12 > 1:19:16my constituents who crying out in the face of a wave of burglary, one

1:19:16 > 1:19:21of the worst we have seen, the police will not respond because the

1:19:21 > 1:19:24Metropolitan Police are subject to real terms budget cuts. Is that not

1:19:24 > 1:19:27the grim reality facing our country and is it not set to get worse

1:19:27 > 1:19:32because of the hard Brexit his government is following?No. The

1:19:32 > 1:19:39government is issuing a Brecht said that takes British jobs and British

1:19:39 > 1:19:45businesses. -- Brexit. On the question of schools, we have

1:19:45 > 1:19:50protected schools funding so it will rise in per-pupil real terms over

1:19:50 > 1:19:57the next two years. As we move to the fair funding formula for

1:19:57 > 1:20:01schools, every school will receive a cash increase. An police, the

1:20:01 > 1:20:09settlement that has recently been voted on by this House provides £450

1:20:09 > 1:20:12million of additional resource across this country. We have

1:20:12 > 1:20:23protected police budget since 2015. The OBR in its report and I refer to

1:20:23 > 1:20:30table chart the four. Assumes that Brexit will be recycled into

1:20:30 > 1:20:34ordinary expenditure. Does the Chancellor accepted this conclusion

1:20:34 > 1:20:38and what thought the seat given to spending this money and is the NHS

1:20:38 > 1:20:43in the top of his list?My right honourable friend 's nose grow well,

1:20:43 > 1:20:54this sums in that the -- knows very well. The OBR have assumed that any

1:20:54 > 1:20:59savings from another contributed to the European Union will be recycled

1:20:59 > 1:21:05to fun things that would have been funded by the European Union and

1:21:05 > 1:21:08will no longer burn so. How we choose to use that money will of

1:21:08 > 1:21:12course be an issue for this parliament. But I would note to my

1:21:12 > 1:21:17honourable friend that we have already made certain commitments for

1:21:17 > 1:21:19example to our agricultural community to maintain the level of

1:21:19 > 1:21:25spending at EU level is until the end of this Parliament.I have to

1:21:25 > 1:21:29say that the levels of hypocrisy from this government is quite hit

1:21:29 > 1:21:34extraordinary. How can he pledged to be improving air quality whilst

1:21:34 > 1:21:38simultaneously boasting about undertaking the largest road

1:21:38 > 1:21:43building project since the 1970s? How can he say that plastic

1:21:43 > 1:21:51contamination is urgent... Ways the deposit scheme? Where is the urgency

1:21:51 > 1:21:53from this action? Why is there such a gulf between the government

1:21:53 > 1:22:03actions and their words.The honourable lady makes a fundamental

1:22:03 > 1:22:10mistake linking the road building programme to air quality. I would

1:22:10 > 1:22:12urge the honourable lady to take at least a medium-term view of the

1:22:12 > 1:22:17world. The vehicle fleet is decarbonising. Within her lifetime,

1:22:17 > 1:22:25if not mine, we are going to have fully electric vehicles, probably

1:22:25 > 1:22:29autonomous vehicles as well. We should not think as the road

1:22:29 > 1:22:33building programme as a negative feature. Which is think of it as an

1:22:33 > 1:22:37enabler for a transformation in the way our vehicle fleet works. We have

1:22:37 > 1:22:43made announcements today and I hope she will be pleased with the VAT on

1:22:43 > 1:22:48vans consultation. This is a much-needed approach to

1:22:48 > 1:22:51incentivising van drivers to be able to buy the cleanest and greenest

1:22:51 > 1:23:00vehicles available.I strongly welcome what's my right honourable

1:23:00 > 1:23:05friend has set out in the Spring Statement, particularly with the

1:23:05 > 1:23:09focus on the cost of living and skills. Can I ask him with the

1:23:09 > 1:23:12forthcoming budget that he continues that focus on the cost of living

1:23:12 > 1:23:23freezing the full duty -- fuel duty and make sure is we meet the needs

1:23:23 > 1:23:26of the forthcoming industrial revolution?I won't make a

1:23:26 > 1:23:30commitment ahead of the next budget on any specific tax but of course we

1:23:30 > 1:23:34will maintain the focus on the cost of living and living standards. He

1:23:34 > 1:23:38will know and I certainly know that one of the biggest problem is that

1:23:38 > 1:23:45we face over the last year has been the impact on real wages from high

1:23:45 > 1:23:48levels of inflation. Getting that inflation back down to target is a

1:23:48 > 1:23:56crucial priority and I am delighted that we are going to see a real wage

1:23:56 > 1:24:00rise from next month as a result of inflation falling and strong nominal

1:24:00 > 1:24:05wage growth.I cannot believe that the Chancellor did not have more to

1:24:05 > 1:24:11say on the NHS in his statement. The NHS in my area is not just in

1:24:11 > 1:24:16crisis, it is at breaking point. Now, he refers to putting an extra

1:24:16 > 1:24:20£4 million in this current financial year to the NHS but if you

1:24:20 > 1:24:27extrapolate what the OBR is saying NHS will need just a kid K going

1:24:27 > 1:24:33with the rising demand, we need at least 30 billion extra going into

1:24:33 > 1:24:43the NHS by 20-23. So will he meet the demands that the member of

1:24:43 > 1:24:47Parliament and others across both parties have made for a proper party

1:24:47 > 1:24:51convention and how we put the NHS on a sustainable footing and secondly,

1:24:51 > 1:24:57will you support the suggestion of his former secretary on his

1:24:57 > 1:25:00department for a proper NHS tax to help give it the funding that it

1:25:00 > 1:25:06needs?I suspect now is not the moment for a long debate on the

1:25:06 > 1:25:10structural funding challenges of the NHS but the honourable member is of

1:25:10 > 1:25:14course right, we have an ageing population, technology is driving an

1:25:14 > 1:25:18ever wider array of interventions that can and should be made to

1:25:18 > 1:25:23support people with medical conditions, particularly chronic

1:25:23 > 1:25:28medical conditions and we do have to look at how to ensure that our NHS

1:25:28 > 1:25:32remains sustainable in the future. Of course we're looking at that

1:25:32 > 1:25:36issue. I am not going to give him a commitment today at the dispatch box

1:25:36 > 1:25:40at how we're going to do that but it is absolutely something we need to

1:25:40 > 1:25:46do. I very much hope as he suggests that this could be done on a

1:25:46 > 1:25:49cross-party basis on a serious basis. But I fear that his front

1:25:49 > 1:25:53bench will not be able to resist the temptation to try to play politics

1:25:53 > 1:26:01with any such serious discussion.It was excellent to hear the Chancellor

1:26:01 > 1:26:08talk about educational investments and human capital. Further to my

1:26:08 > 1:26:11right honourable friend's comments earlier will he explain further

1:26:11 > 1:26:16whether the Treasury will create standards that will value our human

1:26:16 > 1:26:19capital across our government departments which will then drive

1:26:19 > 1:26:23decision-making so that taxpayers money is best spent to maximise

1:26:23 > 1:26:31human capital that in education and training rather than wasted?We've

1:26:31 > 1:26:34asked the ONS to look at this and look and metrics that we could use.

1:26:34 > 1:26:40The objective is to be able to assess clearly where the marginal

1:26:40 > 1:26:44pounds of capital investment should go to achieve the best effects on

1:26:44 > 1:26:48the economy. I suspect that in the future, without wanting to pre-empt

1:26:48 > 1:26:53the outcome of that work, I suspect that in the future in a very rapidly

1:26:53 > 1:26:58changing economy we will find that retraining and upskilling is going

1:26:58 > 1:27:04to be a very large part of our future investment requirement.The

1:27:04 > 1:27:14mouse the Chancellor, I sent him a letter -- can I ask the Chancellor

1:27:14 > 1:27:18and assist the UK Government that has not yet committed to.It will be

1:27:18 > 1:27:22from my right honourable friend, the Minister for Housing, communities

1:27:22 > 1:27:26and local government to have that meeting with him. I'm very happy to

1:27:26 > 1:27:31pass on request.As my right honourable friend made any

1:27:31 > 1:27:34assessment of the Venezuelan economic model so favoured by the

1:27:34 > 1:27:38Shadow Chancellor where I understand the Venezuelan government has

1:27:38 > 1:27:50made... Huge progress on reducing income inequality. Unfortunately, as

1:27:50 > 1:27:53socialism always does, it's done this by pushing 80% of the

1:27:53 > 1:27:59population into poverty.Yes. Actually I was watching Russia today

1:27:59 > 1:28:02and I saw very interesting piece on the Venezuelan economy. Apparently

1:28:02 > 1:28:09every is going swimmingly.In response to my honourable friend for

1:28:09 > 1:28:15Wallasey, the Chancellor suggested that our economy will be stronger

1:28:15 > 1:28:19when there is greater certainty over Brexit but can he confirm that the

1:28:19 > 1:28:23Treasury's own analysis published last week showed that under all of

1:28:23 > 1:28:26the government's Brexit options, long-term growth will be lower than

1:28:26 > 1:28:30it would otherwise have been and does he not realise that that will

1:28:30 > 1:28:38be the true legacy of his government and his party that can no longer

1:28:38 > 1:28:43claims act and the national economic interest?College is correct down a

1:28:43 > 1:28:49couple of points? The report that she refers to published by the EU

1:28:49 > 1:28:52committee was not a report done by HM Treasury. It was a report that

1:28:52 > 1:28:59she knows prepared by a cross departmental group of professionals.

1:28:59 > 1:29:04In response to the criticism that has been levied at the Treasury's

1:29:04 > 1:29:09model that has been used before the referendum. Of course, it didn't

1:29:09 > 1:29:16model the government's preferred outcome scenario. It model a couple

1:29:16 > 1:29:19of standard models that the Prime Minister has already rejected. We're

1:29:19 > 1:29:24not going for a Norway model and we're not going for Canada model. We

1:29:24 > 1:29:28are negotiating with the EU for as bespoke solution and we have made

1:29:28 > 1:29:32progress in those negotiations we will model the outcome that we

1:29:32 > 1:29:37expect to get. And when parliament comes to vote on this issue,

1:29:37 > 1:29:40hopefully later this year, Parliament will have in front of it

1:29:40 > 1:29:46the output of that modelling.Can I congratulate my right honourable

1:29:46 > 1:29:52friend for his upbeat performance standing up for the economy and

1:29:52 > 1:29:58standing up for our country? As a former soldier may I just put in a

1:29:58 > 1:30:02plug for the Armed Forces. There is no doubt they need more money. We

1:30:02 > 1:30:05live in dangerous times. Will my right honourable friend take this

1:30:05 > 1:30:11into account, the budget.Well, Mr Speaker, as a former Defence

1:30:11 > 1:30:14Secretary I yield to no one in my admiration for the Armed Forces and

1:30:14 > 1:30:19I do understand the challenges that the defence faces and the complexity

1:30:19 > 1:30:24of the defence budget with many very long-term projects operating at the

1:30:24 > 1:30:30very cutting edge of technology.

1:30:30 > 1:30:34But in case there is any misapprehension, Mr Speaker, I would

1:30:34 > 1:30:37like the House to be absolutely clear, that defence will receive

1:30:37 > 1:30:42more than £1 billion of additional funding in each year of this

1:30:42 > 1:30:47Parliament. It is the department with the fastest-growing budget of

1:30:47 > 1:30:52any budget across Whitehall. So whilst we will of course continue to

1:30:52 > 1:30:55look at the specific needs of defence, I wouldn't like anyone to

1:30:55 > 1:31:02have the impression as I have read in some organs that the defence

1:31:02 > 1:31:09budget is being cut. It is being substantially increased.Much as it

1:31:09 > 1:31:13is not under the Chancellor's control, but this question I am

1:31:13 > 1:31:18about to ask actually is. A year ago we were promised making tax digital

1:31:18 > 1:31:22would-be put back, to help small businesses. In the intervening time

1:31:22 > 1:31:25since the election very little progress has been made in the

1:31:25 > 1:31:28countryside in broadband roll-outs will the Chancellor please consider

1:31:28 > 1:31:35putting this back for small businesses by another year?No, Mr

1:31:35 > 1:31:38Speaker, we made our decision to do there making tax digital mainly

1:31:38 > 1:31:43because there was a need for more awareness among businesses, and more

1:31:43 > 1:31:46time to prepare with relevant software and so on. We are confident

1:31:46 > 1:31:52business will be able to roll this programme out on current schedule.

1:31:52 > 1:31:58I also confidently predict to the honourable lady that although I

1:31:58 > 1:32:02readily accept there is some disquiet among potential business

1:32:02 > 1:32:05users at the moment, once they are using it, once they have got used to

1:32:05 > 1:32:08it, they will find that this is something which is hugely beneficial