13/03/2018 House of Commons


13/03/2018

Coverage of the Spring Statement in the House of Commons by chancellor Philip Hammond with responses from shadow chancellor John McDonnell.


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I will look carefully and seriously

consider that evidence.

The door is

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still open to the benefits of marine

energy so would he commit to see

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Charles Hendry, author of the review

which are still awaiting a response

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from the Government 14 months and,

as Chair of the party groups and

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representatives of tidal lagoon and

tidal stream?

We continue to commit

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to support our marine energy

industry. I referred the honourable

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gentleman to the answer my right

honourable friend gave at the start

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of questions, we continue to

exchange information with the Welsh

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Government, we need to understand

what is on offer and need to reach

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the right decision.

The county in

which I live have only two

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electronic charging points. If the

Minister able to set charging points

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for rural and urban areas?

It is

true that the charging network needs

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to extend right across the country

if people are to have the confidence

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that they will be able to recharge

their vehicle and the rural aspect

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is very much in mind.

According to

the press, the Secretary of State

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gave a presentation to the

subcommittee of the Cabinet about

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the automotive Section and how

important it was that we do not have

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a hard Brexit. It seems to have

persuaded those people of the

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Cabinet that it might be a good idea

for a hard Brexit that it would in

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fact be a very bad idea for British

business, notably the automotive

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sector. On that basis, could the

Secretary of State make it available

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to all members, honourable and right

honourable?

It would be wrong of me

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to disclose what's our conversations

are in Cabinet. She understands the

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collective responsibility but it is

no secret to anyone in this House

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that I regard the success of the

automotive sector depending on

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integrated supply chains as being

good evidence of what type of trade

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agreement is needed. It was

referenced, indeed highlighted, in

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the Speech by the Prime Minister at

the Mansion House.

Statement of the

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Chancellor of the Exchequer.

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I am pleased to introduce to the

House the first spring statement.

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The UK was the only major economy to

make hundreds of tax and spending

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changes twice a year and major

international organisations and UK

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professional bodies alike have been

pressing for change. In 2016, I took

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the decision to move to a single

physical event in the autumn, giving

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greater certainty to families and

businesses ahead of the new

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financial year and allowing more

time for stakeholder and

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parliamentary engagement on

potential fiscal changes. Today's

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statement will update the House on

the economic and fiscal perdition --

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position, report progress on the

budgets from last year and is... I

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will not be producing a red book

today, Mr Speaker, but I cannot

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speak for the right honourable

gentleman opposite.

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Mr Speaker, I am pleased to report

to date the House on a UK economy

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that has grown in every year since

2010. An economy which under

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Conservative leadership now has a

manufacturing sector enjoying its

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longest unbroken run of growth for

50 years. An economy which has added

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3 million jobs and seen every single

region of the UK with higher

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employment and lower unemployment

than in 2010, seen the wages of the

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lowest paid up by almost 7% above

inflation since April 2015 and

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income and equality lower than at

any time under the last Labour

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Government. Solid progress towards

building an economy that works for

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everyone. Mr Speaker, I reject the

party opposite's doom and gloom

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about the state of the nation. Every

Wednesday, we have to listen to the

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Leader of the Opposition

relentlessly talking Britain down.

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Every year since 2010, we have had

to listen to the right honourable

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member predicts a recession, none of

which has actually happened. If

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there are any Ee-aws in the Chamber,

they are over there. -- Eeore. Our

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language is the global language of

business. The legal system is the

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jurisdiction of choice for commerce.

We host the world's most global city

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and is international finance and

professional services capital. Our

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companies are at the vanguard of the

technological revolution while our

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work class -- world-class

universities... Britain's culture

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and talent to reduce huge audiences

across the globe and our technology

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centre is attracting skilled and

capital from the four corners of the

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earth with a new technology business

being founded somewhere in the UK

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every hour producing world class

products, including applications

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like city map and Matt Hancock.

Today, the OBR delivers its second

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report for the fiscal year 2017-18

and I thank the team for their work.

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More jobs, rising wages, declining

inflation, shrinking debt. The

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economy grew by 1.7% in 2017,

compared to 1.5% forecast at the

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Budget. The OBR have revised up the

forecast for 20 18th from 1.4% to

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1.5%. Forecast growth is then

unchanged at 1.3% in 2019 and 2020

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before picking up to 1.4% in 21 and

1.5% in 2022. That is the OBR's

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forecast, Mr Speaker. Forecasts are

there to be beaten. As a nation, we

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did it in 2017. We should make it

our business to do so again. Our

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remarkable job story is set to

continue with the OBR forecasting

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more jobs in every year of this

Parliament and over 500,000 more

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people enjoying the security of a

regular pay packets by 2022. I am

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pleased to report that the OBR

inspect inflation, which is

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currently above target at 3%, to

fall back to target over the next 12

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months. Meaning that real wage

growth is expected to be positive

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from the first quarter of 2018-19

and to increase steadily thereafter.

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I reported in the autumn that

borrowing was due to fall in every

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year of the forecast. And debt to

fall as a share of GDP from 2018-19,

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the OBR confirms this today and

further revises down debt and

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borrowing in every year. Borrowing

is now forecast to be £45.2 billion

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this year, 4.7 billion lower than

forecast in November. And 108

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billion lower than in 2010. Which

coincidentally, Mr Speaker, is

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almost exactly the total cost of the

additional spending pledges made by

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the party opposite since the General

Election in June last year. Mr

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Speaker, it has taken them just nine

months to work out a plan to

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squander the fruits of eight years

hard work. As a percentage of GDP,

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borrowing is forecast to be 2.2% in

2017 - 18, fallen to 1.8% in 18-19,

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one .6 in 19-20, 1.6%, 1.1% and 0.0%

in 22-23. Meaning in 18th-19th we

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will run a small surplus borrowing

only for capital investment. We are

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forecast to meet our adjusted

borrowing target in 2021 with £15.4

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billion of headroom to spend Bobby

has forecast that the Budget. The

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more favourable outlook for

borrowing means the death cab is 1%

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lower in November speaking at 85.6%

of GDP in 18/19 and falling... --

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debt cap. Finally 77.9% in 22-23.

The first sustained fall in debt in

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17 years. A turning point in this

nation's recovered from the

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financial crisis of a decade ago.

Light at the end of the tunnel.

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Another step on the road to

rebuilding public finances decimated

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by the party opposite. Mr Speaker,

one that they would again placed at

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risk. Because under the policies of

the party opposite, our debt would

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not fall over the next five years,

it would rise by over 350 billion

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pounds. To more than 100% of our

GDP. Undermining our recovery,

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threatening investment in British

jobs, burdening the Next Generation

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and wasting billions and billions of

pounds more on debt interest. Mr

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Speaker, there is indeed light at

the end of the tunnel but we have

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got to make absolutely sure that it

is in the Shadow Chancellor's train

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hurtling out of control in the other

direction towards Labour's next

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economic train wreck. In autumn

2016, I changed the fiscal rules to

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give us more flexibility to adopt a

balanced approach to repairing the

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public finances. Reducing debt, not

for some ideological reason but to

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secure our economy against future

shocks. We on this site are not so

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naive as to think that we have

abolished the economic cycle. We

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want to see taxpayers' money finding

our schools and hospitals, not

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wasted on debt interest. And because

we want to give the Next Generation

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a fair chance. But Mr Speaker I do

not agree with those who argue that

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every available penny must be used

to reduce the deficit. Nor do I

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agree with the fiscal fantasists

opposite to argue that every

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available penny should be spent

immediately. We will continue to

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deliver a balanced approach,

balancing debt reduction against the

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need for investment in Britain's

future, support hard-working

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families through lower taxes and

commitment to public services. Judge

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me by my record

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commitment to public services. Judge

me by my record. Judge me by my

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record. They will see, Mr Speaker,

if they have done their homework.

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Since the Autumn Statement 2016I

have committed to £60 billion of new

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spending, share between long-term

investment in Britain 's future and

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support for public services with

almost £9 billion extra for our NHS

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and social care system, £4 billion

going into the NHS in 2018-19 alone.

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As I promised that the autumn

Budget, more to come if, as I hope,

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management and unions reach an

agreement on a pay modernisation

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deal for our nations nurses and

agenda for change staff. Who have

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worked tirelessly since the autumn

in very challenging circumstances to

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provide the NHS care that we all

valued so highly. £2.2 billion more

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on education and skills, and £31

billion going to fund

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infrastructure, research and

development and housing to the

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national productivity investment

fund, taking public investment in

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our schools, hospitals and

infrastructure in this Parliament to

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its highest sustained level in 40

years. At the same time, we have cut

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taxes for a 31 million working

people by raising the personal

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allowance again in line with our

manifesto commitment, taking more

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than 4 million people out of tax

altogether since 2010. Freezing fuel

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duty four an eighth successive year,

taking the saving for a typical car

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driver to £850 campaign to Labour's

plans, and raising the national

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living ways to £7 83 from next month

giving the lowest paid in our

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society a well-deserved pay rise of

over £2000 for a full-time worker

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since 2015. Mr Speaker, since

becoming Chancellor, I have provided

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an extra £11 billion of funding for

2018-19 to help with short-term

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public spending pressures and to

invest in Britain's future. In the

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longer term, I can confirm that at

this years Budget, I will set an

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overall path for public spending for

2020 and beyond. With a detailed

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spending review to take place in 20

19th allocate funding between

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departments. That is how responsible

people Budget. First, you work out

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what you can afford, then you decide

what your priorities are, then you

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allocate between them. If in the

autumn the public finances continue

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to reflect the improvements that

today's reports hints at, then in

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accordance with our balanced

approach and using the flexibility

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provided by the fiscal rules, I

would have capacity to enable

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further increases in public spending

and investment in the years ahead.

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While continuing to drive value for

money to ensure that not a single

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penny of precious taxpayers money is

wasted.

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A balanced approach, Mr Speaker,

getting our debt down, supporting

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public services and investing in our

nation's future, keeping taxes low

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and building a Briton fit for the

future and an economy that works for

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everyone. -- Britain. Mr Speaker,

there is much still to do. Since

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autumn 2016 we have set out our plan

to back the enterprise and ambition

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of British business and the hard

work of the British people. A plan

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to unleash our creators and

innovators, in eventers -- inventors

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and discovers. To deliver the skills

we will need to benefit from them.

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To tackle our long-standing

productivity challenges and to save

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more loudly than ever that our

economy will remain open and outward

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looking, confidence to compete with

the best in the world. We choose to

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champion those who create jobs and

wealth on which our prosperity and

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our public services both depends,

not to demonise them. The Shadow

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Chancellor, Mr Speaker, is open

about his ideological desire to

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undermine the market economy. Which

is driven and unparalleled increase

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in our living standards over the

last 15 years. We on this side

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reject his approach out 50 years.

The market economy embraces talent

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and creates opportunity and provides

jobs for millions and the tax

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revenues that underpin our public

services. We will go on supporting

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British businesses. We are reducing

business rates by over £10 billion

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and we committed at autumn budget

2017 to move to triennial

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evaluations from 2022. Today I am

pleased to announce that we will

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bring forward the next business

rates and evaluation to 2021 and

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moved to triennial reviews from that

date. We will also launch a call for

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evidence to understand how best we

can help the UK's least productive

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businesses to learn from and catch

up with the most productive. And

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another on how we can eliminate the

continuing scourge of late payments,

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a key ask from small businesses.

Because, Mr Speaker, we are the

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party of small businesses and the

champions of the entrepreneur. Since

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the budget, we have made substantial

progress in our negotiations with

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the European Union. To deliver a

Brexit that supports British jobs,

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businesses and prosperity. And, Mr

Speaker, I look forward... I don't

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know what the honourable gentleman

does but I look forward to another

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important step forward at the

European Council next week. But we

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will continue to prepare for all

eventualities. And today, my right

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honourable friend the Chief

Secretary is publishing the

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departmental allocations of over

£1.5 billion of Brexit preparation

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funding for 2018-19 which I

announced at the autumn budget. Our

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modern industrial strategy sets out

our plan to keep Britain at the

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forefront of new technology with the

biggest increase in spending in four

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decades. Much of this new technology

depends on high-speed broadband and

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today I can make the first

allegations of the hundred £90

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million local full fibre challenge

fund announced at autumn budget and

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confirm £25 million for the first

five G test-beds. As our economy

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changes, we must ensure people have

the skills they need to seize the

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opportunities ahead. We have

committed over £500 million a year

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to the most ambitious post 16

reforms in many years. From next

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month, £50 million will be available

to help employers to prepare for

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this role out. Last week the

Education Secretary and I chaired

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the first meeting of the national

retraining partnership between the

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government, the TUC and the CBI. I

can reassure the House, Mr Speaker,

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there was no beer, no sandwiches,

not even a canape, but there was a

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clear and shared commitments to

training, to prepare the British

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people for a British future ahead.

Next month, are £29 million

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construction fund will open to bits

to open to 20 villages around the

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country. We are committed as a

government to delivering 3 million

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apprenticeship starts by 2020 with

the support of business through the

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apprenticeship levy but we recognise

the challenges the new system

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presents to some small businesses

looking to employ an imprint. So I

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can announce today that my right

honourable friend the Education

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Secretary will release up to £80

million of funding support those

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small businesses in engaging an

apprentice. We publish a

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consultation on improving the way

the tax system supports self-funded

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training by employees and the

self-employed and because we

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currently understand more about the

economic payback from investing in

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our infrastructure than we do about

investing in our people, I have

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asked the ONS to work with us on

developing a more sophisticated

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measure of human capital so that

future investment can be better

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targeted. Mr Speaker, we are

undertaking the largest

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road-building programme since the

1970s. As Transport Secretary, I

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gave the green light to fund the new

bridge across the River Mersey in

0:21:320:21:37

2011 and I was delighted to see it

opened late last year. The largest

0:21:370:21:43

infrastructure project in Europe,

Crossrail, is due to open in just

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nine months' time. We are making

progress on our plans to deliver the

0:21:470:21:53

Cambridge, Milton Keynes, Oxford

corridor. We are giving budgets to

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elected mayors over and over the

northern powerhouses. We are in

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negotiations for city deals in many

places, including Wales and Belfast.

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And today, we invite proposals from

cities across England for the £840

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million fund I announced that the

budget to deliver on their local

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transport priorities. As part of our

plans to spread growth and

0:22:210:22:25

opportunity to all parts of this

United Kingdom. At the heart of our

0:22:250:22:32

plan for building an economy that

works for everyone is our commitment

0:22:320:22:36

to tackle the challenges in our

housing market. With an investment

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programme of £44 billion to raise

housing surprise to 300,000 a year

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by the midst 20 20s and today I can

update the House. We're working

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currently with 44 authorities who

have bid into the £4.1 billion

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housing infrastructure fund to

unlock homes in areas of high

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demand. We are concluding housing

deals with ambitious authorities who

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have agreed to deliver above their

local housing needs. I can announce

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today that we have just agreed a

deal with the West Midlands who have

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committed to deliver 215,000 homes

by 203031 -- 20 30,001 -- 2030-2031.

0:23:160:23:35

We will more than double the size of

the housing growth partnership with

0:23:350:23:40

Lloyds banking group to £220 million

providing additional finance for

0:23:400:23:47

small builders. And London will

receive an additional £1.17 billion

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to deliver a further 26,000

affordable homes. Including homes

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for social rent taking total

affordable housing delivery in

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London to over 116,000 by the end of

21-22. Mr Speaker, the member for

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West Dorset has outlined his initial

findings on the gap between planning

0:24:110:24:16

permission granted and housing

completions in a letter which I have

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placed in the library of the House.

I look forward to his full report

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and budget. And I'm to inform the

House that an estimated 6000 --

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60,000 first-time buyers have

already benefited from the stamp

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duty relief that I announced in the

autumn budget. I remind the House

0:24:360:24:42

that the party opposite voted

against that. In the autumn, we

0:24:420:24:48

published a paper on taxing large

digital businesses in the global

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economy and today we follow up with

a publication that explores

0:24:540:24:58

potential solutions and I look

forward to discussing this issue

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with G20 finance minister in one

Surrey is at the weekend. We also --

0:25:020:25:09

Buenos Aires. We will consult on a

new VAT collection mechanism on

0:25:090:25:19

online sales to ensure that the VAT

that consumers pay actually reaches

0:25:190:25:23

the Treasury. We call for evidence

as well on how to do digital

0:25:230:25:33

payments whilst ensuring that cash

remains available to those who need

0:25:330:25:35

it. Mr Speaker, this government is

determined that our generation

0:25:350:25:40

should leave the natural environment

in a better state than what we found

0:25:400:25:43

it. And improve the quality of the

air that we breathe. So we will

0:25:430:25:48

publish a call for evidence on

whether the use of non-agricultural

0:25:480:25:52

red diesel tax relief contributes to

poor air quality in urban areas. And

0:25:520:26:00

following our successful

intervention to incentivise green

0:26:000:26:03

taxes, we will help the great

British white van driver to go green

0:26:030:26:08

with a consultation on reduced rates

on the cleanest lands and we will

0:26:080:26:15

follow up on the vital issue of

plastic littering and the threats to

0:26:150:26:18

our oceans with a call to evidence

for supporters on delivering on our

0:26:180:26:23

vow to tackle this complex issue. It

will look at the whole supply chain

0:26:230:26:27

for single use plastics, alternative

materials, reusable options and

0:26:270:26:34

recycling opportunities. It will

look at how the tax system can help

0:26:340:26:39

drive the technological progress and

behavioural change that we need. Not

0:26:390:26:41

as a way of raising revenue but as a

way of changing behaviour and

0:26:410:26:47

encouraging innovation. We will

commit to investing to develop new

0:26:470:26:52

greener products and processes

funded from the revenues that are

0:26:520:26:59

raised. And as a down payment, Mr

Speaker, we will award £20 million

0:26:590:27:05

now from existing departmental

budgets to businesses and

0:27:050:27:10

universities to stimulate new

thinking and rapid solutions in this

0:27:100:27:13

area during the call for evidence.

Mr Speaker, we are delivering on our

0:27:130:27:20

plan with a balanced approach,

restoring the public finances,

0:27:200:27:24

investing in our economy and public

services, raising productivity

0:27:240:27:28

through our modern strategy and

building the homes are people need,

0:27:280:27:35

tackling the environmental

challenges that threaten our future,

0:27:350:27:40

embracing technological change,

seizing the opportunities ahead as

0:27:400:27:43

we build our vision of a country

that works for everyone. An economy

0:27:430:27:48

where prosperity and opportunity are

in reach of all. Wherever they live,

0:27:480:27:54

whatever their gender, colour, creed

or background come up when talent

0:27:540:27:59

and hard work alone determines

success, a beacon of enterprise and

0:27:590:28:03

innovation. An outward looking free

trading nation. One that is

0:28:030:28:14

confident that our best days lie

ahead of us. A force for good in the

0:28:140:28:18

world's. A country we can all be

proud to pass on to our children and

0:28:180:28:26

I commend this statement to the

House.

John McDonnell!

Let me thank

0:28:260:28:36

the Chancellor for providing me with

an earlier sight of his statement. I

0:28:360:28:42

have to say to the Chancellor that

his complacency today is astounding.

0:28:420:28:46

We face in every public service a

crisis on a scale we have never seen

0:28:460:28:56

before. Has he not listens to the

doctors, the nurses, teachers, the

0:28:560:29:02

police officers, the carers and even

own councillors? They are telling

0:29:020:29:07

him they cannot wait for the next

budget. They are telling him to act

0:29:070:29:11

now. For eight years, they have been

ignored by this government and today

0:29:110:29:17

they have been ignored again. The

Chancellor has claimed today that

0:29:170:29:22

there is light at the end of the

tunnel. This shows just how cut off

0:29:220:29:26

from the real world hears. Last year

growth in our economy was one of the

0:29:260:29:33

lowest in the G-7. The slowest since

2012. The OBE are just predicted

0:29:330:29:39

that we will scrape along the bottom

for future years. Wages are lower

0:29:390:29:45

now in real terms than they were in

2010 and they are still falling.

0:29:450:29:54

The changes to benefits according to

the resolution foundation will leave

0:29:540:30:00

11 million families are worse off.

As always, the harshest cuts:

0:30:000:30:04

disabled people. -- fall on disabled

people. The gap in productivity

0:30:040:30:13

between this country and the rest of

the G-7 is the widest for a

0:30:130:30:17

generation, UK industry being 20 -

30% less productive. Investment by

0:30:170:30:25

this Government in real terms is

nearly 18 billion below its 2010

0:30:250:30:30

level. This is a Government that cut

research and development funding by

0:30:300:30:35

1 billion in real terms. Is this

investment, stagnated in the last

0:30:350:30:44

quarter of 2017. Despite the

promises the Government continues to

0:30:440:30:48

fail to address the regional

imbalances in investment. London

0:30:480:30:52

again will receive £5 more transport

investment than Yorkshire and

0:30:520:30:55

Humberside and the North. This is a

Government on climate change, how

0:30:550:31:01

dare they dart this is a Government

that single-handedly destroyed the

0:31:010:31:06

solar industry. 12,000 jobs lost as

a result of subsidy cuts. The

0:31:060:31:13

Chancellor talks about the fourth

industrial revolution, but Britain

0:31:130:31:20

has the lowest... The Chancellor

talks about the fourth industrial

0:31:200:31:28

revolution, but Britain has the

lowest rate of industrial robots use

0:31:280:31:33

in the ... They have put less than a

tenth into what the US is spending

0:31:330:31:42

in artificial intelligence. The

Chancellor... The Tory bully boys

0:31:420:31:53

can shout all they want...

0:31:530:32:05

A full opportunity for people to

contribute but the right honourable

0:32:080:32:12

gentleman must be heard.

They can

shout of a once, make their snide

0:32:120:32:18

remarks. People out there know the

crisis in our community. The

0:32:180:32:25

Chancellor has made great play of

reaching a turning point in reducing

0:32:250:32:28

the deficit in the debt. It is a bit

rich coming from a party that has

0:32:280:32:35

put 700 billion on the national debt

over the last eight years. It is

0:32:350:32:39

worth remembering that this is a

party that promises that the deficit

0:32:390:32:49

would be eliminated completely by

2015 - 16. Bizarrely, his

0:32:490:33:01

predecessor now ensconced in the

Evening Standard, Blackrock, or the

0:33:010:33:05

Washington speakers bureau, has been

tweeting about achieving three years

0:33:050:33:13

late a deficit target he abandoned

himself. The reality is the

0:33:130:33:17

Chancellor and his predecessor have

not tackle the deficit. What they

0:33:170:33:20

have done is they have shifted it

into the public services and his

0:33:200:33:27

colleagues are responsible for. He

has shifted it onto the Secretary of

0:33:270:33:32

State for Health, on the shoulders

of NHS managers, doctors, nurses

0:33:320:33:36

throughout the country. NHS trusts

will end this financial year 1

0:33:360:33:40

billion in deficit. Doctors and

nurses are struggling, being asked

0:33:400:33:46

to do more and ball while there is

100,000 NHS posts going unfilled.

0:33:460:33:52

Does the Chancellor really believe

the NHS can wait another eight

0:33:520:33:57

months for the life-saving funds it

needs? How many people have to die

0:33:570:34:01

waiting in an ambulance before he

Acts? He has mentioned the payoff

0:34:010:34:09

the NHS staff were expecting

shortly, which was forced upon him

0:34:090:34:12

by the Labour Party and trade unions

campaign, hence the pay cut. Let me

0:34:120:34:17

say this. Taking away a day 's

holiday from those dedicated staff

0:34:170:34:24

is mean-spirited. I ask him now,

will he dropped this miserly Acts?

0:34:240:34:36

The Chancellor has also shifted the

deficit on to the Secretary of State

0:34:360:34:40

for Education and headteachers with

the first per capita cut in schools

0:34:400:34:43

funding since the 1990s. Today, the

Government is even trying to provide

0:34:430:34:50

1 million children of a decent... I

am asking. I am asking the

0:34:500:35:04

Chancellor and every Conservative

MP...

Order. The House must come

0:35:040:35:13

down. There will be plenty of

opportunity for questions from

0:35:130:35:16

members in all parts of the House.

The right honourable gentleman must

0:35:160:35:20

be heard.

I am asking, appealing to

Tory MPs today, if they are serious

0:35:200:35:32

about ending asperity, to vote with

us this afternoon to give those

0:35:320:35:35

children the free school meals they

are entitled to. The Chancellor has

0:35:350:35:44

shifted the deficit onto the Home

Secretary and Justice Secretary was

0:35:440:35:47

that crime is rising. He has cut the

number of police officers by 21,500

0:35:470:35:55

the number of firefighters by 8500.

Our prisons and probation service

0:35:550:36:00

are in dangerous crisis. In a

shifting the deficit onto the

0:36:000:36:05

shoulders of the Secretary of State

for Communities and Local

0:36:050:36:09

Government, in reality he has

shifted the burden onto local

0:36:090:36:11

councillors. Labour, Lib Dem and

Conservative councillors alike. I

0:36:110:36:16

raise again the stark reality of

what this means for the most

0:36:160:36:20

vulnerable children in our society.

There has been a 40% cut in early

0:36:200:36:27

intervention to support families.

The result is the highest number of

0:36:270:36:29

children taken into care since the

1980s. Children's charities, not us,

0:36:290:36:37

children's charities are saying

this. This crisis could turn into a

0:36:370:36:41

catastrophe without further funding.

Also, last year, 400 women seeking

0:36:410:36:48

refuge were turned away because

there were no places available for

0:36:480:36:50

them in refuges. There are now

nearly 5000 of our fellow citizens

0:36:500:36:58

sleeping rough on our streets. More

than doubled was in 2010.

0:36:580:37:06

Tragically, tragically, one of our

homeless, citizens died only feet

0:37:060:37:13

away from the entrance to

Parliament. He has mentioned

0:37:130:37:18

additional housing funding. And as

for London is not a new

0:37:180:37:24

announcement, this was already

announced. Any new funding is

0:37:240:37:28

welcome but simply not enough and

represents a cut in London's Budget

0:37:280:37:31

can bet that the money Labour

allocated in 2010. There are 1

0:37:310:37:37

million vulnerable older people who

have no access to the social care

0:37:370:37:41

they need. Conservative councils are

going bust. Many will be forced to

0:37:410:37:44

hike up council tax. Councils are

running out of reserves as the

0:37:440:37:50

National Audit Office explain to us.

I ask Chancellor, will he listen to

0:37:500:37:59

Conservative council leaders? Like a

zone in Surrey who said, and I

0:37:590:38:03

quote, we are facing the most

difficult financial crisis in our

0:38:030:38:07

history. The Government cannot stand

idly by while Rome burns. I ask him,

0:38:070:38:15

how many more children have to come

into care, how many more councils

0:38:150:38:19

have to go bust, how many more run

out of reserves before he wakes up

0:38:190:38:23

to this crisis and Acts? Today's

statement could have been a genuine

0:38:230:38:28

turning point, but it is,

depressingly, another missed

0:38:280:38:32

opportunity. People know now that

austerity was a political choice,

0:38:320:38:37

not an economic necessity. THEY

SHOUT. Conservatives chose to cut

0:38:370:38:47

taxes for the super-rich, the

corporations and the bankers. It was

0:38:470:38:53

paid for by the rest of us in

society. They even cut the levy on

0:38:530:38:59

backers in last month's Finance Act.

We were never all in this together,

0:38:590:39:04

as they claimed, never. They cut

investment at the very time we

0:39:040:39:08

should have been developing the

skills and infrastructure needed to

0:39:080:39:13

raise productivity. And grass, yes,

the technological revolution with

0:39:130:39:17

both hands. And when they had a

responsibility to meet the challenge

0:39:170:39:23

of Brexit, we have a chance that

this weekend admitted he has not

0:39:230:39:26

even moderate the Government 's

options. Today, we have the

0:39:260:39:34

indefensible spectacle of a

Chancellor congratulating himself on

0:39:340:39:37

marginally improved economic

forecasts. While he refuses to lift

0:39:370:39:40

a finger as councils go bust, the

NHS and social care in crisis,

0:39:400:39:48

school budgets cut, homelessness

doubled, wages falling. This isn't a

0:39:480:39:53

Government preparing our country for

the future, it is a Government

0:39:530:39:55

setting us up to fail.

Mr Speaker,

the right honourable gentleman

0:39:550:40:07

supported the switch to a single

physical event, now he is

0:40:070:40:10

complaining I haven't delivered a

mini Budget today. I am not

0:40:100:40:19

surprised he cannot understand

anyone passing up the opportunity to

0:40:190:40:21

introduce new taxes, because that is

what a Labour Government would be

0:40:210:40:25

doing, not once or twice a year, but

every other week. He talks about

0:40:250:40:31

Tory bullyboys. I heard him refer to

some of my honourable friends as

0:40:310:40:37

Tory bullyboys. Can I remind the

House, this is the man who still

0:40:370:40:41

refuses to apologise...

0:40:410:40:43

Still refuses to apologise to my

right honourable friend the Work and

0:40:510:40:56

Pensions Secretary, so I don't want

to hear anything about bullying from

0:40:560:40:59

the benches opposite. He knows his

Lennon, the task is to win power.

0:40:590:41:08

That is why we see from the

honourable gentleman the smooth mien

0:41:080:41:13

of the bank manager -- Lenin. We get

the glimpse of the sinister ideology

0:41:130:41:23

lying beneath. Which would wreck our

economy if he gets anywhere near the

0:41:230:41:29

controls, threatening confiscation,

dismissing property rights,

0:41:290:41:32

undermining the cornerstones of our

economy and the basis of our freedom

0:41:320:41:35

and prosperity. He talks about

political choices. Let me tell him

0:41:350:41:44

the political choices we have made.

We have close the tax gap to one of

0:41:440:41:48

the lowest in the developed world.

We have raised £175 billion by 100

0:41:480:41:54

measures against tax evasion and

avoidance. We are collecting 28% of

0:41:540:41:59

all income tax from the richest 1%

in our country. A higher percentage

0:41:590:42:06

than in any year under Labour. He

said real wages are falling. I have

0:42:060:42:12

good news, the OBR expects real

wages to rise from quarter 12018,

0:42:120:42:17

which in case he has not worked it

out starts in two weeks. He talks

0:42:170:42:22

about disabled spending. Spending on

the disabled will be higher in every

0:42:220:42:28

year from this Parliament. He talks

about research and development to

0:42:280:42:34

support our economy. Spending is at

record highs. He reels out to the

0:42:340:42:42

same old bogus statistics on

regional distribution. I think he

0:42:420:42:46

has got the briefing from Russia

today. Let me tell him this. The

0:42:460:42:53

infrastructure authority has

published figures which clearly show

0:42:530:42:59

that the highest per capita spending

on transport infrastructure

0:42:590:43:03

investment is in the north-west

region, Mr Speaker. Not the last

0:43:030:43:09

time I checked one of the southern

regions. All regions have benefited

0:43:090:43:13

from the boom in employment. All

will end this Parliament with lower

0:43:130:43:19

unemployment and higher employment.

He talks about £700 million of

0:43:190:43:24

increased national debt. -- 700

billion. We have had to do with the

0:43:240:43:31

legacy of Labour's meltdown in 2009

because it didn't fix the roof while

0:43:310:43:37

the sun was shining. Our historic

function is to clean up Labour's

0:43:370:43:43

mess and my report today shows we

are doing it once again. It talks

0:43:430:43:46

about funding for the NHS. I've put

£9 billion into the NHS since Autumn

0:43:460:43:54

Statement 2016. He talks about

school budgets, which are increasing

0:43:540:43:59

per capita per pupil terms, real

terms. On children's services, he

0:43:590:44:07

must know the Department for

Education research shows spending on

0:44:070:44:10

the most vulnerable children has

increased by around £0.5 billion in

0:44:100:44:15

real terms since 2010. We have

committed £1 billion to tackle rough

0:44:150:44:20

sleeping and homelessness and made a

manifesto pledge to eliminate rough

0:44:200:44:25

sleeping by 2027 and have it by

2022. No one watching our exchanges

0:44:250:44:33

today can be in any doubt that

Britain faces a choice. We have a

0:44:330:44:38

plan to get our economy growing, the

Shadow Chancellor says it doesn't

0:44:380:44:42

matter whether GDP grows are not. We

have a plan to get people on the

0:44:420:44:46

housing ladder while the Shadow

Chancellor does not want to get

0:44:460:44:51

bogged down in property rights. We

have a plan to do with our debts,

0:44:510:44:57

the Shadow Chancellor wants to send

debt soaring because he fantasises

0:44:570:45:00

that he can borrow for free. The

choice is clear. Our vision of a

0:45:000:45:06

dynamic, modern economy, or the

party opposite's vision of an inward

0:45:060:45:10

looking narrow minded country.

Because we have to win this

0:45:100:45:14

argument. If we do not, it will be

ordinary people, not the rich and

0:45:140:45:20

powerful, globally mobile, but

ordinary people who will pay the

0:45:200:45:24

price as they always do for a

Labour's

0:45:240:45:26

Mr Kenneth Clarke.

I congratulate my

right honourable friend on his

0:45:330:45:40

statement based on competence

government and grown-up politics.

0:45:400:45:47

But when he comes to prepare his

budget for November, I'm sure he

0:45:470:45:53

will be looking for any new source

of taxation which may be needed to

0:45:530:45:58

put even more money than he already

has into the NHS and social care,

0:45:580:46:03

which are facing the vast increases

in demand. Can I suggest that he

0:46:030:46:08

looks at some of the extraordinary

tags anomalies he has inherited in

0:46:080:46:13

the tax treatment of older

prosperous people in full-time work

0:46:130:46:18

in this country. It cannot be right.

Declare your interest!

0:46:180:46:27

LAUGHTER

I think I am perfectly well placed.

0:46:270:46:34

I cannot be accused of personal

bias. It is absurd that older

0:46:340:46:44

employees actually pay less tax than

their younger colleagues on their

0:46:440:46:49

income because they don't pay

national insurance. It cannot be

0:46:490:46:54

right that people in large houses

enjoying capital gains from the

0:46:540:46:57

housing market has disregarded the

means test purposes if they ever

0:46:570:47:06

needs certain types of social care.

So as the early budget in the

0:47:060:47:11

Parliament are a time for tough and

difficult decisions, will my right

0:47:110:47:14

honourable friend let me know that

he will be looking at those much

0:47:140:47:19

overdue anomalies that need to be

addressed, some justice between the

0:47:190:47:25

generations I think is being

demanded by our constituents.

Well,

0:47:250:47:30

I am a great fan of the concept of

intergenerational fairness and as my

0:47:300:47:36

right honourable and learn it friend

will know as the former Chancellor

0:47:360:47:41

of the Exchequer, all chancellors

looked at all options in the run-up

0:47:410:47:42

to every budget and I can undertake

to him that I will do so in the

0:47:420:47:47

run-up to the budget in 2018. In the

meantime, Mr Speaker, I can tell my

0:47:470:47:53

right honourable friend that there

is a mechanism for voluntary

0:47:530:47:56

donations to Her Majesty's Treasury

and I am happy to send him a copy of

0:47:560:48:01

our bank details.

I have to say that

was much ado about nothing. The real

0:48:010:48:12

tragedy is that we are ten years on

from the financial crisis and

0:48:120:48:16

austerity is still with us and there

is a lack of hope given to the

0:48:160:48:20

people of the United Kingdom from

this statement today. Mr Speaker, at

0:48:200:48:25

the weekend we saw the honourable

member in his other job as a

0:48:250:48:34

linesman at a football match, waving

his flag enthusiastically calling

0:48:340:48:39

for a red card. If anybody deserves

a red card today and

0:48:390:48:52

assist we hear the Chancellor

complaining we have had consistent

0:48:540:48:56

economic growth and we can look

forward to consistent economic

0:48:560:49:01

growth over coming years but the

reality is that in 2019 when we're

0:49:010:49:06

supposed to be leaving European

Union that the OBR is predicting

0:49:060:49:10

that growth will be easily 1.3%. And

it is forecast to remain at

0:49:100:49:16

roundabout 1.5% over the coming

years. What is below the historic

0:49:160:49:23

growth in this country. When I hear

the Chancellor talk about wage

0:49:230:49:28

growth, he ought to reflect that we

have got lost decade of wage growth

0:49:280:49:33

in the United Kingdom. But let me

prick his balloon as far as this one

0:49:330:49:39

is concerned because the OBR book is

very clear, real earnings growth

0:49:390:49:45

will remain subdued for the next

five years. That is the reality and

0:49:450:49:50

perhaps the Chancellor should stop

this spinning and become honest with

0:49:500:49:56

people about what will happen. He

talks about light at the end of the

0:49:560:50:00

tunnel. Let me tell him that the

light at the end of the tunnel is a

0:50:000:50:05

hard Brexit and the impact of lower

growth which is going to cost jobs

0:50:050:50:09

and prosperity in this country. Mr

Speaker, slower earnings growth,

0:50:090:50:16

higher inflation and cuts to the

benefit system are resulting in

0:50:160:50:21

poorer incomes for the poorest

households and rising inequality.

0:50:210:50:25

Once again the Chancellor has failed

to bring his government's disastrous

0:50:250:50:30

austerity programme to an end and

worse still he has his high head

0:50:300:50:34

firmly in the sand over Brexit. Mr

Speaker, this government is going

0:50:340:50:39

ahead with a devastating cuts to

Scotland's's budgets. I hear the

0:50:390:50:50

Scottish Tories shouting rubbish but

perhaps what they can do is join

0:50:500:50:53

with us on these benches and

defender Scotland's interest.

0:50:530:50:58

Because let me explain a reality.

Over the decade 2010-11 to 2019-20,

0:50:580:51:08

Scotland's grant has been cut by

£2.6 billion in real terms. That is

0:51:080:51:14

an 8.1% cuts and the people of

Scotland should watch what is

0:51:140:51:17

happening with the Scottish Tory MPs

calling out once again, failing to

0:51:170:51:22

stand up for Scotland's interest.

Let me say respectfully that these

0:51:220:51:34

Tory MPs have been here for quite

some months and they should

0:51:340:51:38

understand that if they want to

speak they should try and catch the

0:51:380:51:41

Speaker 's eye. It is undignified to

call out the way they are doing.

0:51:410:51:52

Order! There is much excitable

gesticulation taking place on both

0:51:520:51:59

sides of the House. I urge members

to keep their order papers to

0:51:590:52:04

themselves and not lash out with

their hands gesticulating in all

0:52:040:52:10

sorts of directions. They are in

danger of becoming rather eccentric

0:52:100:52:14

Members of the House. Mr Ian

Blackford.

Thank you Mr Speaker,

0:52:140:52:19

these are serious matters. The

extent of the reduction is

0:52:190:52:26

highlighted by... Noted that by 2020

it will be five million pounds lower

0:52:260:52:37

than 2018. Mr Speaker, I paid

tributes to the honourable members

0:52:370:52:40

on these benches who fought so hard

on behalf of their constituents

0:52:400:52:48

to... VAT scrapped. That was a

fantastic result. However, the

0:52:480:52:56

reality is that Scotland has

suffered under this policy of the

0:52:560:52:58

last five years. Were the Chancellor

be bringing forward plans to return

0:52:580:53:03

175 million which has already been

paid? The ATV should never have been

0:53:030:53:08

charged. It was a vindictive measure

imposed on Scotland by a Tory

0:53:080:53:13

government. Give Scotland back the

hundred 75 to invest in our front

0:53:130:53:21

line services. Will the Tory MPs

join the SNP or will they remain

0:53:210:53:31

silent on the cash grab that we have

seen from Westminster? The austerity

0:53:310:53:38

policies disproportionately affect

the most disadvantaged individuals

0:53:380:53:41

while giving tax breaks to the

better off in society. The

0:53:410:53:46

resolution foundation recently

estimated that the government's

0:53:460:53:49

austerity programme will leave the

poorest third of households an

0:53:490:53:54

average of £750 a year worse off by

2022 - 23. Mr Speaker, in Scotland's

0:53:540:54:03

we have a new progressive tax

policy. I can see Conservatives

0:54:030:54:14

saying the reality is for most

people in Scotland's tax is lower.

0:54:140:54:18

The Scottish Government are able to

reverse this term real term budget

0:54:180:54:26

cut. And ensure that the majority of

taxpayers in Scotland's Payless and

0:54:260:54:31

in the rest of the UK. However,

Scotland's new taxation powers

0:54:310:54:36

should not exist simply to mitigate

against UK Government austerity. Mr

0:54:360:54:42

Speaker, in Scotland, the SNP

government gone further to support

0:54:420:54:45

those on low incomes. In the recent

budget at Holyrood, a package was

0:54:450:54:52

secured which raises the threshold

of a guaranteed 3% increase on those

0:54:520:54:57

earning up to £36,500 benefiting up

to three quarters of Scottish public

0:54:570:55:05

sector workers. A Scottish

Government on the side of

0:55:050:55:09

hard-working public sector workers.

Mr Speaker, as we near the EU summit

0:55:090:55:13

at the end of this month in

Brussels, the progress in this

0:55:130:55:19

government towards Brexit has been

nothing short of shameful. The UK

0:55:190:55:24

Government's own another analysis

shows that Scotland will suffer more

0:55:240:55:31

than the United Kingdom as a whole

with the economic output.

0:55:310:55:36

Threatening to reduce growth by a

massive 9% over 15 years. Make no

0:55:360:55:41

mistake that their hard Brexit is

going to hit the pockets of families

0:55:410:55:46

and is going to lead to a loss in

tax revenue expectations. It is

0:55:460:55:50

therefore going to affect spending

on public services and yet the

0:55:500:55:54

Chancellor is silent on the risks to

our economy. Risks to our economy

0:55:540:56:00

when the stresses and strains of a

mere decade of austerity is hurting.

0:56:000:56:04

The fact is, Mr Speaker, Scotland is

shackled to a sinking ship. The

0:56:040:56:10

Scottish budget passed last month

illustrates the real diversions in

0:56:100:56:15

critical choices across the UK. At

Scotland chosen to stand by our

0:56:150:56:21

outstanding public sector staff. We

continue to mitigate the worst

0:56:210:56:28

atrocities of this government's

ideological austerity agenda. We

0:56:280:56:33

will continue to press for for

nothing less then continued UK

0:56:330:56:36

membership of the single customs

union. We will never stop fighting

0:56:360:56:45

to get justice for 1950s women... In

conclusion, Mr Speaker, it is

0:56:450:56:58

obvious, the Chancellor must waken

up to the economic injustices he

0:56:580:57:02

oversees and tell the South as a

matter of urgency how the economy

0:57:020:57:04

will stand a hard Brexit.

Mr

Speaker, a matter of more immediate

0:57:040:57:14

urgency to the people of Scotland

will stand the highest rates of

0:57:140:57:18

taxation in the United Kingdom. An

economy that under the SNP

0:57:180:57:29

government is already growing more

slowly than the economy of the

0:57:290:57:34

United Kingdom. I don't know about

sinking ship, it's about keeping of

0:57:340:57:38

floats I would suggest to the right

Honourable gentleman. He talks about

0:57:380:57:44

earnings. I suggest that the right

honourable gentleman looks at real

0:57:440:57:48

household disposable income which as

I'm sure he knows, is now 4.4%

0:57:480:57:56

higher than at the start of 2010. We

have cut taxes for 31 million people

0:57:560:58:03

across this country at a time when

his government is putting taxes up.

0:58:030:58:07

We have taken 4 million people out

of taxation, improving the ability

0:58:070:58:12

of people to retain their hard

earned incomes. He talks about

0:58:120:58:18

Brexit spreading alarm. He knows

very well that my right honourable

0:58:180:58:22

friend the Prime Minister is working

tirelessly to deliver a Brexit that

0:58:220:58:27

will secure British jobs, British

businesses and British prosperity.

0:58:270:58:34

And we would be aided in that

enterprise if he and his government

0:58:340:58:37

would work closely with us to

deliver an outcome that is good for

0:58:370:58:42

the whole of the United Kingdom. He

talks about Scotland's budget but of

0:58:420:58:48

course Scotland now has its own

tax-raising power and the people of

0:58:480:58:52

Scotland know how he intends to use

them. Perhaps he is forgotten but I

0:58:520:58:55

will just try to help him with his

short-term amnesia, at the autumn

0:58:550:59:01

budget in 2017, just four months

ago, Scotland received an additional

0:59:010:59:05

£2 billion of funding as a result of

the measures announced then. As for

0:59:050:59:13

the VAT on police and Fire Services

measure being vindictive, the

0:59:130:59:20

Scottish National Party government

was told explicitly that it would

0:59:200:59:25

not be possible to refund VAT if it

went ahead with the police

0:59:250:59:31

organisation. It decided to do so

anyway. He may use the adjective

0:59:310:59:37

vindictive but I suspect my right

honourable friend 's would be able

0:59:370:59:40

to think of another adjective that

describes a government that pursued

0:59:400:59:45

such a ridiculous course of action.

Whatever impression may have been

0:59:450:59:52

given so far I gently remind the

House of this is not a debate but I

0:59:520:59:56

question and answer session

following a ministerial statement.

0:59:561:00:00

Nicky Morgan.

1:00:001:00:06

I want to congratulate the

Chancellor on the balanced approach

1:00:061:00:10

he has taken. He and the premise to

have rightly identifies housing as

1:00:101:00:15

an economic and social priority. He

will be aware that the Treasury and

1:00:151:00:19

Select Committee's report on his

Budget of 2017 mentioned the cap on

1:00:191:00:25

housing revenue accounts might be

lifted to allow local authorities --

1:00:251:00:30

authorities to pay to play their

part...

We have already relaxed the

1:00:301:00:39

borrowing cap in respect of local

authorities in areas with high

1:00:391:00:44

demands and low affordability. We

will carefully monitor the

1:00:441:00:48

consequences of that, how that

delivers, and keep it under

1:00:481:00:50

continuous review.

The lights the

Chancellor can see in the tunnel is

1:00:501:01:01

the Brexit locomotive barrelling

headlong towards him and our schools

1:01:011:01:04

and our hospitals. What is he going

to do to prevent that FTA style

1:01:041:01:14

scenario which is owned Treasury

officials say will lead a £55

1:01:141:01:17

billion train wreck in our public

services?

As he knows, I am

1:01:171:01:25

committed to delivering a Brexit

which protects British jobs, British

1:01:251:01:29

businesses and British prosperity. I

spent a very significant amount of

1:01:291:01:34

my working time ensuring that is the

route we follow, I expect we will

1:01:341:01:38

make further progress at the march

from European Council. I understand

1:01:381:01:43

the concerns that he expresses on

behalf of British business. I have

1:01:431:01:46

to tell him something. I talked to

businesses all day everyday. It is

1:01:461:01:50

my job. He says, so deceived

business is concerned about what the

1:01:501:01:58

consequence is of a bad Brexit deal.

Business is much more concerned

1:01:581:02:03

about the consequences of the

policies advanced by his right

1:02:031:02:08

honourable friend on the front

bench.

Can I say what a huge

1:02:081:02:15

pleasure it is to see the Chancellor

so upbeat even as he said Tiggerish.

1:02:151:02:25

He is right to be soaked with an

appointment at the lowest for 30

1:02:251:02:31

years... At the next Budget, given

we are about four months away from

1:02:311:02:40

official departure date from the EU,

would my right honourable friend

1:02:401:02:43

looked to put into the Red Book what

he plans to do with the money we are

1:02:431:02:47

no longer going to pay to the EU?

Always a pleasure to hear from my

1:02:471:02:54

right honourable friend. Luck, we

are absolutely not complacent. We

1:02:541:02:59

face many challenges as well as...

We have a plan to embrace the

1:02:591:03:06

opportunities and rise to the

challenges. This country has many

1:03:061:03:10

advantages that many of our

neighbours would give their right

1:03:101:03:14

arm to enjoy. We must go forward in

good heart, robust late, to seize

1:03:141:03:19

these opportunities and make the

best of our future opportunities. I

1:03:191:03:23

say to my right honourable friend on

the specific issue around tax and

1:03:231:03:27

spending, of course, in the

forthcoming Budget, we will look at

1:03:271:03:33

taxation and spending over the

future period. The OBR, of course,

1:03:331:03:39

will decide what it presents in its

report to the House and my right

1:03:391:03:45

honourable friend will have an

opportunity to question them about

1:03:451:03:47

their approach when they appear in

the House shortly after the Budget

1:03:471:03:52

statement.

Credit rose by 9% in the

last year. The House of debt ratio

1:03:521:04:02

to income is 138%, rapidly

approaching levels seen before the

1:04:021:04:08

financial crisis. With interest

rates now forecast by the OBR to

1:04:081:04:11

rise faster than we previously

envisaged, are we asking consumers

1:04:111:04:15

to keep the wheels on the road of

the economic recovery? Is that right

1:04:151:04:19

and sustainable?

She is right to

raise this issue. Something we keep

1:04:191:04:28

under constant review. I talked

regularly to the Governor of the

1:04:281:04:32

Bank of England about personal debt.

She probably will no personal House

1:04:321:04:36

of debt rose in all but one year of

the 13 year Labour Government and it

1:04:361:04:41

is now at a lower level than it was

pre-crisis. The judgment of the

1:04:411:04:48

authorities at the moment is that

household debt levels are

1:04:481:04:52

sustainable. She is right to draw

our attention to it, something we

1:04:521:04:57

keep under close review.

I wonder if

the Chancellor could give more

1:04:571:05:00

details on the announcement that the

O N S will work with Treasury on a

1:05:001:05:05

more sophisticated measure of human

capital. In a knowledge-based

1:05:051:05:09

economy this becomes more crucial

than ever for driving our economic

1:05:091:05:13

productivity. Could we have more

details of the timelines and the

1:05:131:05:17

nature of that work?

She gives me

the opportunity to thank for

1:05:171:05:24

sparking this line of enquiry. In a

letter she wrote to me. I did

1:05:241:05:28

challenge the Treasury with the

challenge that actually they are

1:05:281:05:33

more focused on the returns to

infrastructure investment than

1:05:331:05:37

skills investment. When we looked at

it in detail, we discovered the

1:05:371:05:41

metrics for measuring the returns to

investment in human capital are not

1:05:411:05:44

as well developed as they should be.

This is something the ONS has a big

1:05:441:05:53

fraud. As we move into a

knowledge-based economy with

1:05:531:05:58

technological changes ahead of us it

is important we are able to compare

1:05:581:06:05

objectively and appropriately human

infrastructure and human capital...

1:06:051:06:17

The OECD published their early

growth forecast putting us at the

1:06:171:06:25

bottom with forecast growth this

year of 1.3%. I think it is pretty

1:06:251:06:32

clear that there is no Brexit

dividend on the scene for British

1:06:321:06:36

economy. It is to be welcomed that

the deficit is getting back to a

1:06:361:06:42

manageable level. The Chancellor of

the Exchequer must know because even

1:06:421:06:45

his own backbenchers are telling him

that extra money is needed for our

1:06:451:06:51

hospitals, schools and police. That

money is not there because of the

1:06:511:06:54

previous decisions to make premature

cuts to capital gains tax and

1:06:541:07:01

inheritance tax. The Chancellor must

have heard the Institute for Fiscal

1:07:011:07:05

Studies calling for increased

capital investment in housing up to

1:07:051:07:10

3% of our economy. Why does not you

listen to the Institute for Fiscal

1:07:101:07:17

Studies?

He knows and I know that

our economy doesn't still face

1:07:171:07:22

uncertainty as we go through the

negotiation process with the

1:07:221:07:25

European Union. I am convinced from

every conversation I have with

1:07:251:07:32

business leaders, investors, that as

we deliver greater clarity about our

1:07:321:07:37

future arrangements, future

relationship with the EU over the

1:07:371:07:40

coming months, we will see business

investment increasing, consumer

1:07:401:07:45

confidence improving. We beat the

forecasting 2017, let's beat it

1:07:451:07:50

again in 2018. I do believe economic

growth matters. The right honourable

1:07:501:07:56

gentleman opposite says it does not

matter what the level of GDP is, I

1:07:561:07:59

don't agree because the level... I

will send him the quote a peak and

1:07:591:08:05

immediately recall what I said. I

believe it matters because it is

1:08:051:08:09

what drives living standards. We are

putting extra money into public

1:08:091:08:15

services, £11 billion in 2018-19

that I have put in since I happened

1:08:151:08:18

Chancellor. On his point about

housing investment, we agreed that

1:08:181:08:23

we have a major challenge in the

housing market. We have booked a

1:08:231:08:30

significant amount, £44 billion,

into doing with this challenge of

1:08:301:08:32

the remainder of the parliament. I

have to say that our significant

1:08:321:08:37

non-financial constraints in being

able to do more, there are physical

1:08:371:08:41

bottlenecks around skilled labour,

materials as well, but it is

1:08:411:08:44

something we will keep under review.

The present Conservative chance of

1:08:441:08:51

the Exchequer, perhaps he could

remind our right honourable friend

1:08:511:08:53

the previous chance of the Exchequer

given where our electorate support

1:08:531:08:59

comes from its might not be wise

politics to impose a targeted new

1:08:591:09:02

tax on our older supporters. He

could remind our right honourable

1:09:021:09:13

friend that we will be serving £12

billion a year in contributions to

1:09:131:09:17

the European Union.

I assume he is

referring to the previous

1:09:171:09:24

Conservative Chancellor up one. On

that assumption, I think he is

1:09:241:09:28

probably...

The winter crisis in the

NHS left us with cancelled

1:09:281:09:37

operations, patients sleeping on the

floor, ditched targets and public

1:09:371:09:42

apology from the Prime Minister.

Neither these bring or Spring

1:09:421:09:46

statement have provided easing on

these pressures. Given he knows that

1:09:461:09:52

logic is going to be too late to

provide any of the initial funding

1:09:521:09:55

for next year's winter crisis that

he knows both the NHS and social

1:09:551:10:01

care will need. He knows this in his

heart and in his spreadsheets. Will

1:10:011:10:06

he follow the Prime Minister and and

and a public apology to the staff

1:10:061:10:10

and patients to the NHS who are

going to have to endure next year's

1:10:101:10:14

crisis because of this failure?

I

have already made it clear that we

1:10:141:10:19

admire greatly the work of NHS staff

who have faced extremely difficult

1:10:191:10:25

circumstances cheering this winter

with the pressures of flu and

1:10:251:10:30

extreme winter weather. This is a

spring statement, not a physical

1:10:301:10:34

events. I said and I will say again

to the right honourable lady that we

1:10:341:10:39

are putting £4 billion additionally

into the NHS in 2018-19 and I have

1:10:391:10:44

committed to putting further money

in in 2018-19 to find a pay

1:10:441:10:51

settlement for nurses and agenda for

change that if the management and

1:10:511:10:55

unions reach agreement.

It is

welcome to hear from the Chancellor

1:10:551:11:01

such good news on debt and growth.

And in particular looking at the

1:11:011:11:06

effects of the real lives of people

in my Ashford constituency worsens

1:11:061:11:13

2010, unemployment, youth

unemployment, is down 48% and

1:11:131:11:17

apprenticeships are up 6850. In

continuing his successful, balanced

1:11:171:11:24

approach, will he commit to dealing

with the social care sector in

1:11:241:11:26

particular because without the act

is going to be an increasingly

1:11:261:11:30

important issue in the years and

decades ahead.

I am grateful. He has

1:11:301:11:37

done a great deal of work on this

issue. We are absolutely aware of

1:11:371:11:41

the pressures on the social care

system. They are not short-term

1:11:411:11:45

pressures. They are driven by

demographics, an ageing population.

1:11:451:11:50

We have to do three things. In the

short term, we have provided

1:11:501:11:55

additional money, £2 billion of

additional support in at Spring

1:11:551:11:57

Budget last year. The Minister for

Housing and community is put another

1:11:571:12:04

£150 million of social care grant in

at the local government set in just

1:12:041:12:09

eight a few weeks ago. In the medium

term, we have to work to get the

1:12:091:12:16

standards of the best. There is

excellent practice across the

1:12:161:12:18

country but it isn't everywhere. The

variation between delayed discharges

1:12:181:12:25

between different authorities is

completely unacceptable. Publishing

1:12:251:12:32

a green paper on social care, the

future of social care which we will

1:12:321:12:36

deliver to the House before the

summer recess.

The Chancellor says

1:12:361:12:41

forecasts are there to be beaten. I

agree with them. Can he explain to

1:12:411:12:47

me why since his Budget in November

the OBR have not been able to

1:12:471:12:52

increase the growth forecast in

2019, 2020, 2021 or 2022. It can't

1:12:521:13:03

be the negative impact of Brexit

because the OBR still don't have

1:13:031:13:07

information from Government in order

to forecast that. So what on earth

1:13:071:13:11

is his excuse?

Remind the honourable

lady, Mr Speaker, that the OBR's

1:13:111:13:18

autumn report in November was only

four months ago. In the normal

1:13:181:13:22

course of events one would not

expect in the absence of a shock to

1:13:221:13:28

the economy economic forecast to

change significantly. The front end

1:13:281:13:33

has changed because the outturn for

2017-18 has changed. The OBR focus

1:13:331:13:43

growth two percentage points lower

than it turned out in 17-18 and that

1:13:431:13:47

has a knock through a date which has

increased the growth projection.

1:13:471:13:54

Successful businesses drive growth.

How much is the corporate tax take

1:13:541:14:03

going up since corporation tax has

been cut? And will he do nothing to

1:14:031:14:08

hinder the internationally

competitive tax rates for corporate

1:14:081:14:13

in this country?

I can. I am happy

to tell my honourable friend that

1:14:131:14:18

since we reduced the rate of

corporate tax to 19%, the yields,

1:14:181:14:23

the amount of tax be raised for our

public services, hospitals, schools

1:14:231:14:27

has gone up by 54%. It is clear that

being one of the most competitive

1:14:271:14:33

tax jurisdictions in the T20 is one

of the determining factors in many

1:14:331:14:38

investment decisions coming to the

UK, creating the jobs and prosperity

1:14:381:14:43

we need for the future. -- G20.

The

Chancellor is right to talk up the

1:14:431:14:49

UK economy with good news. Plenty in

this House will rectify this play Dr

1:14:491:14:55

down. -- recklessly tottered down.

He did make a promised there would

1:14:551:15:00

be an enquiry into VAT on the

hospitality industry and a batch of

1:15:001:15:06

sport would be made in time for the

Budget in the autumn. When will he

1:15:061:15:11

make the announcement as to when

that enquiry will start and the

1:15:111:15:16

terms of its?

1:15:161:15:16

I have laid out today setting out

the review consultations and that is

1:15:201:15:28

amongst them so if he looks of it

after this statement is over he will

1:15:281:15:31

see that it is there.

Can I draw the

Chancellor's attention to the recent

1:15:311:15:37

research published by the

International monetary fund which

1:15:371:15:40

says that the choice we made in 2010

to deal with the deficit is

1:15:401:15:45

primarily by controlling spending

rather than tax rises as the

1:15:451:15:48

opposition would have was the right

choice meant that this economy grew

1:15:481:15:53

faster than our European competitors

and has put him in the position

1:15:531:15:56

where he can deliver more money for

our priorities whilst reducing the

1:15:561:16:02

debt in the balanced way that he

sets out.

I'm grateful to my right

1:16:021:16:06

honourable friend and he is right.

It was the right choice. Because we

1:16:061:16:10

made that choice throughout that

period we saw employment in this

1:16:101:16:14

country continuing to grow. We

avoided the very high levels of

1:16:141:16:20

unemployment that many of our

European neighbours suffer. We

1:16:201:16:23

avoided the catastrophic generation

blighting levels of youth

1:16:231:16:28

unemployment that many of our

European neighbours suffered and

1:16:281:16:32

that will be affecting their

economies and societies not just for

1:16:321:16:35

a few more years but for 30, 40, 50

years to come. It was the right

1:16:351:16:41

decision. We have executed our plan

and we should stick to it.

The

1:16:411:16:46

Chancellor has been very upbeat

today but why is he so upbeat when

1:16:461:16:52

the growth figures show that we have

gone from near the top of the G-7

1:16:521:16:59

and G20 growth lists the bottom of

both?

Well, Mr Speaker, I am clear

1:16:591:17:07

and I have alluded to this already

that one of the factors that is

1:17:071:17:12

depressing the forecast growth is

the uncertainty that still exists

1:17:121:17:16

around the economy. Now, if she

liked me expects that uncertainty to

1:17:161:17:22

dissipate over time then she should

look through it to the fundamentals

1:17:221:17:25

of our economy to the underlying

strength of our economy and this is

1:17:251:17:29

an economy that is in a

fundamentally good shape. Once we

1:17:291:17:35

can restore confidence uncertainty

about our future path, I am

1:17:351:17:39

confident those fundamental

strengths will deliver increased

1:17:391:17:40

economic growth.

My right honourable

friend made a fantastic statement.

1:17:401:17:49

Does he join me in welcoming the 65%

fall in youth unemployment since

1:17:491:17:55

2010 and does he agree with me that

whilst it is entirely right to

1:17:551:18:01

mention intergenerational fairness,

the worst form of that would be if

1:18:011:18:05

we allowed high youth unemployment

is to peak as it has done to suit

1:18:051:18:08

dangerous levels in the rest of

Europe.

Of course I welcome the very

1:18:081:18:12

large fall in youth unemployment in

his constituency but that will be

1:18:121:18:17

from a base that was very much lower

than has come to be considered

1:18:171:18:20

normal in many of our European

neighbours. As you rightly says,

1:18:201:18:25

that is not just an economic factor

but it is a societal factor.

1:18:251:18:30

Resistant high levels of youth

unemployment have a hugely damaging

1:18:301:18:35

affect as we have discovered in the

past in this country to our cost. If

1:18:351:18:39

someone is unemployed during those

formative years they are far more

1:18:391:18:44

likely to remain unemployed and

unemployable for the rest of their

1:18:441:18:46

working life.

It is astonishing that

Brexit which is the single biggest

1:18:461:18:52

risk to the economy merited only two

mentions in the Chancellor 's's

1:18:521:18:58

Spring Statement. If the economy and

economic outlook is so rosy perhaps

1:18:581:19:02

he can explain why almost every

school in my constituency is facing

1:19:021:19:07

school budget cuts, why my local NHS

Trust is in special measures and why

1:19:071:19:12

my constituents who crying out in

the face of a wave of burglary, one

1:19:121:19:16

of the worst we have seen, the

police will not respond because the

1:19:161:19:21

Metropolitan Police are subject to

real terms budget cuts. Is that not

1:19:211:19:24

the grim reality facing our country

and is it not set to get worse

1:19:241:19:27

because of the hard Brexit his

government is following?

No. The

1:19:271:19:32

government is issuing a Brecht said

that takes British jobs and British

1:19:321:19:39

businesses. -- Brexit. On the

question of schools, we have

1:19:391:19:45

protected schools funding so it will

rise in per-pupil real terms over

1:19:451:19:50

the next two years. As we move to

the fair funding formula for

1:19:501:19:57

schools, every school will receive a

cash increase. An police, the

1:19:571:20:01

settlement that has recently been

voted on by this House provides £450

1:20:011:20:09

million of additional resource

across this country. We have

1:20:091:20:12

protected police budget since 2015.

The OBR in its report and I refer to

1:20:121:20:23

table chart the four. Assumes that

Brexit will be recycled into

1:20:231:20:30

ordinary expenditure. Does the

Chancellor accepted this conclusion

1:20:301:20:34

and what thought the seat given to

spending this money and is the NHS

1:20:341:20:38

in the top of his list?

My right

honourable friend 's nose grow well,

1:20:381:20:43

this sums in that the -- knows very

well. The OBR have assumed that any

1:20:431:20:54

savings from another contributed to

the European Union will be recycled

1:20:541:20:59

to fun things that would have been

funded by the European Union and

1:20:591:21:05

will no longer burn so. How we

choose to use that money will of

1:21:051:21:08

course be an issue for this

parliament. But I would note to my

1:21:081:21:12

honourable friend that we have

already made certain commitments for

1:21:121:21:17

example to our agricultural

community to maintain the level of

1:21:171:21:19

spending at EU level is until the

end of this Parliament.

I have to

1:21:191:21:25

say that the levels of hypocrisy

from this government is quite hit

1:21:251:21:29

extraordinary. How can he pledged to

be improving air quality whilst

1:21:291:21:34

simultaneously boasting about

undertaking the largest road

1:21:341:21:38

building project since the 1970s?

How can he say that plastic

1:21:381:21:43

contamination is urgent... Ways the

deposit scheme? Where is the urgency

1:21:431:21:51

from this action? Why is there such

a gulf between the government

1:21:511:21:53

actions and their words.

The

honourable lady makes a fundamental

1:21:531:22:03

mistake linking the road building

programme to air quality. I would

1:22:031:22:10

urge the honourable lady to take at

least a medium-term view of the

1:22:101:22:12

world. The vehicle fleet is

decarbonising. Within her lifetime,

1:22:121:22:17

if not mine, we are going to have

fully electric vehicles, probably

1:22:171:22:25

autonomous vehicles as well. We

should not think as the road

1:22:251:22:29

building programme as a negative

feature. Which is think of it as an

1:22:291:22:33

enabler for a transformation in the

way our vehicle fleet works. We have

1:22:331:22:37

made announcements today and I hope

she will be pleased with the VAT on

1:22:371:22:43

vans consultation. This is a

much-needed approach to

1:22:431:22:48

incentivising van drivers to be able

to buy the cleanest and greenest

1:22:481:22:51

vehicles available.

I strongly

welcome what's my right honourable

1:22:511:23:00

friend has set out in the Spring

Statement, particularly with the

1:23:001:23:05

focus on the cost of living and

skills. Can I ask him with the

1:23:051:23:09

forthcoming budget that he continues

that focus on the cost of living

1:23:091:23:12

freezing the full duty -- fuel duty

and make sure is we meet the needs

1:23:121:23:23

of the forthcoming industrial

revolution?

I won't make a

1:23:231:23:26

commitment ahead of the next budget

on any specific tax but of course we

1:23:261:23:30

will maintain the focus on the cost

of living and living standards. He

1:23:301:23:34

will know and I certainly know that

one of the biggest problem is that

1:23:341:23:38

we face over the last year has been

the impact on real wages from high

1:23:381:23:45

levels of inflation. Getting that

inflation back down to target is a

1:23:451:23:48

crucial priority and I am delighted

that we are going to see a real wage

1:23:481:23:56

rise from next month as a result of

inflation falling and strong nominal

1:23:561:24:00

wage growth.

I cannot believe that

the Chancellor did not have more to

1:24:001:24:05

say on the NHS in his statement. The

NHS in my area is not just in

1:24:051:24:11

crisis, it is at breaking point.

Now, he refers to putting an extra

1:24:111:24:16

£4 million in this current financial

year to the NHS but if you

1:24:161:24:20

extrapolate what the OBR is saying

NHS will need just a kid K going

1:24:201:24:27

with the rising demand, we need at

least 30 billion extra going into

1:24:271:24:33

the NHS by 20-23. So will he meet

the demands that the member of

1:24:331:24:43

Parliament and others across both

parties have made for a proper party

1:24:431:24:47

convention and how we put the NHS on

a sustainable footing and secondly,

1:24:471:24:51

will you support the suggestion of

his former secretary on his

1:24:511:24:57

department for a proper NHS tax to

help give it the funding that it

1:24:571:25:00

needs?

I suspect now is not the

moment for a long debate on the

1:25:001:25:06

structural funding challenges of the

NHS but the honourable member is of

1:25:061:25:10

course right, we have an ageing

population, technology is driving an

1:25:101:25:14

ever wider array of interventions

that can and should be made to

1:25:141:25:18

support people with medical

conditions, particularly chronic

1:25:181:25:23

medical conditions and we do have to

look at how to ensure that our NHS

1:25:231:25:28

remains sustainable in the future.

Of course we're looking at that

1:25:281:25:32

issue. I am not going to give him a

commitment today at the dispatch box

1:25:321:25:36

at how we're going to do that but it

is absolutely something we need to

1:25:361:25:40

do. I very much hope as he suggests

that this could be done on a

1:25:401:25:46

cross-party basis on a serious

basis. But I fear that his front

1:25:461:25:49

bench will not be able to resist the

temptation to try to play politics

1:25:491:25:53

with any such serious discussion.

It

was excellent to hear the Chancellor

1:25:531:26:01

talk about educational investments

and human capital. Further to my

1:26:011:26:08

right honourable friend's comments

earlier will he explain further

1:26:081:26:11

whether the Treasury will create

standards that will value our human

1:26:111:26:16

capital across our government

departments which will then drive

1:26:161:26:19

decision-making so that taxpayers

money is best spent to maximise

1:26:191:26:23

human capital that in education and

training rather than wasted?

We've

1:26:231:26:31

asked the ONS to look at this and

look and metrics that we could use.

1:26:311:26:34

The objective is to be able to

assess clearly where the marginal

1:26:341:26:40

pounds of capital investment should

go to achieve the best effects on

1:26:401:26:44

the economy. I suspect that in the

future, without wanting to pre-empt

1:26:441:26:48

the outcome of that work, I suspect

that in the future in a very rapidly

1:26:481:26:53

changing economy we will find that

retraining and upskilling is going

1:26:531:26:58

to be a very large part of our

future investment requirement.

The

1:26:581:27:04

mouse the Chancellor, I sent him a

letter -- can I ask the Chancellor

1:27:041:27:14

and assist the UK Government that

has not yet committed to.

It will be

1:27:141:27:18

from my right honourable friend, the

Minister for Housing, communities

1:27:181:27:22

and local government to have that

meeting with him. I'm very happy to

1:27:221:27:26

pass on request.

As my right

honourable friend made any

1:27:261:27:31

assessment of the Venezuelan

economic model so favoured by the

1:27:311:27:34

Shadow Chancellor where I understand

the Venezuelan government has

1:27:341:27:38

made... Huge progress on reducing

income inequality. Unfortunately, as

1:27:381:27:50

socialism always does, it's done

this by pushing 80% of the

1:27:501:27:53

population into poverty.

Yes.

Actually I was watching Russia today

1:27:531:27:59

and I saw very interesting piece on

the Venezuelan economy. Apparently

1:27:591:28:02

every is going swimmingly.

In

response to my honourable friend for

1:28:021:28:09

Wallasey, the Chancellor suggested

that our economy will be stronger

1:28:091:28:15

when there is greater certainty over

Brexit but can he confirm that the

1:28:151:28:19

Treasury's own analysis published

last week showed that under all of

1:28:191:28:23

the government's Brexit options,

long-term growth will be lower than

1:28:231:28:26

it would otherwise have been and

does he not realise that that will

1:28:261:28:30

be the true legacy of his government

and his party that can no longer

1:28:301:28:38

claims act and the national economic

interest?

College is correct down a

1:28:381:28:43

couple of points? The report that

she refers to published by the EU

1:28:431:28:49

committee was not a report done by

HM Treasury. It was a report that

1:28:491:28:52

she knows prepared by a cross

departmental group of professionals.

1:28:521:28:59

In response to the criticism that

has been levied at the Treasury's

1:28:591:29:04

model that has been used before the

referendum. Of course, it didn't

1:29:041:29:09

model the government's preferred

outcome scenario. It model a couple

1:29:091:29:16

of standard models that the Prime

Minister has already rejected. We're

1:29:161:29:19

not going for a Norway model and

we're not going for Canada model. We

1:29:191:29:24

are negotiating with the EU for as

bespoke solution and we have made

1:29:241:29:28

progress in those negotiations we

will model the outcome that we

1:29:281:29:32

expect to get. And when parliament

comes to vote on this issue,

1:29:321:29:37

hopefully later this year,

Parliament will have in front of it

1:29:371:29:40

the output of that modelling.

Can I

congratulate my right honourable

1:29:401:29:46

friend for his upbeat performance

standing up for the economy and

1:29:461:29:52

standing up for our country? As a

former soldier may I just put in a

1:29:521:29:58

plug for the Armed Forces. There is

no doubt they need more money. We

1:29:581:30:02

live in dangerous times. Will my

right honourable friend take this

1:30:021:30:05

into account, the budget.

Well, Mr

Speaker, as a former Defence

1:30:051:30:11

Secretary I yield to no one in my

admiration for the Armed Forces and

1:30:111:30:14

I do understand the challenges that

the defence faces and the complexity

1:30:141:30:19

of the defence budget with many very

long-term projects operating at the

1:30:191:30:24

very cutting edge of technology.

1:30:241:30:30

But in case there is any

misapprehension, Mr Speaker, I would

1:30:301:30:34

like the House to be absolutely

clear, that defence will receive

1:30:341:30:37

more than £1 billion of additional

funding in each year of this

1:30:371:30:42

Parliament. It is the department

with the fastest-growing budget of

1:30:421:30:47

any budget across Whitehall. So

whilst we will of course continue to

1:30:471:30:52

look at the specific needs of

defence, I wouldn't like anyone to

1:30:521:30:55

have the impression as I have read

in some organs that the defence

1:30:551:31:02

budget is being cut. It is being

substantially increased.

Much as it

1:31:021:31:09

is not under the Chancellor's

control, but this question I am

1:31:091:31:13

about to ask actually is. A year ago

we were promised making tax digital

1:31:131:31:18

would-be put back, to help small

businesses. In the intervening time

1:31:181:31:22

since the election very little

progress has been made in the

1:31:221:31:25

countryside in broadband roll-outs

will the Chancellor please consider

1:31:251:31:28

putting this back for small

businesses by another year?

No, Mr

1:31:281:31:35

Speaker, we made our decision to do

there making tax digital mainly

1:31:351:31:38

because there was a need for more

awareness among businesses, and more

1:31:381:31:43

time to prepare with relevant

software and so on. We are confident

1:31:431:31:46

business will be able to roll this

programme out on current schedule.

1:31:461:31:52

I also confidently predict to the

honourable lady that although I

1:31:521:31:58

readily accept there is some

disquiet among potential business

1:31:581:32:02

users at the moment, once they are

using it, once they have got used to

1:32:021:32:05

it, they will find that this is

something which is hugely beneficial

1:32:051:32:08

Coverage of the Spring Statement in the House of Commons by chancellor Philip Hammond with responses from shadow chancellor John McDonnell, the SNP's economy spokesman Stewart Hosie and backbenchers.


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