27/11/2016 Sunday Politics East Midlands


27/11/2016

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It's Sunday morning and this is the Sunday Politics.

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Was Fidel Castro a revolutionary hero or a murderous dictator?

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After the Cuban leader's death, politicians divide over his legacy.

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Can the NHS in England find billions of pounds' worth of efficiency

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The Shadow Health Secretary joins me live.

:00:54.:00:59.

Should we have a second Brexit referendum on the terms

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of the eventual withdrawal deal that's struck with the EU?

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Former Lib Dem leader Paddy Ashdown and former Conservative cabinet

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What does the Autumn Statement mean? go head-to-head.

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And with me, Tom Newton Dunn, Isabel Oakeshott and Steve Richards.

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They'll be tweeting throughout the programme

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Political leaders around the world have been reacting to the news

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of the death of Fidel Castro, the Cuban revolutionary who came

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to power in 1959 and ushered in a Marxist revolution.

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Foreign Secretary Boris Johnson described the former leader

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as an "historic if controversial figure" and said his death marked

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Labour leader Jeremy Corbyn said Castro was "a champion of social

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justice" who had "seen off a lot of US presidents"

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President-elect Donald Trump described the former Cuban leader

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as a "brutal dictator", adding that he hoped his death

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would begin a new era "in which the wonderful Cuban people

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finally live in the freedom they so richly deserve".

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Meanwhile, the President of the European Commission,

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Jean-Claude Juncker, said the controversial leader

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was "a hero for many" but "his legacy will be judged

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I guess we had worked that out ourselves. What do you make of the

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reactions so far across the political divide? Predictable. And I

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noticed that Jeremy Corbyn has come in for criticism for his tribute to

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Castro. But I think it was the right thing for him to do. We all know he

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was an admirer. He could have sat there for eight hours in his house,

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agonising over some bland statement which didn't alienate the many

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people who want to wade into attacked Castro. It would have been

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inauthentic and would have just added to the sort of mainstream

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consensus, and I think he was right to say what he believed in this

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respect. Elsewhere, it has been wholly predictable that there would

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be this device, because he divided opinion in such an emotive way.

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Steve, I take your point about authenticity and it might have

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looked a bit lame for Jeremy Corbyn to pretend that he had no affection

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for Fidel Castro at all, but do you think he made a bit of an error

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dismissing Castro's record, the negative side of it as just a floor?

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He could have acknowledged in more elaborate terms the huge costs. He

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wanted to go on about the health and education, which if you actually

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look up the indices on that, they are good relative to other

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countries. But they have come at such a huge cost. He was not a

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champion of criminal justice. If he had done that, it would have been

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utterly inauthentic. He doesn't believe it. And he would have

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thought there would be many other people focusing on all the epic

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failings. So he focused on what he believed. There are times when

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Corbyn's prominence in the media world now as leader widens the

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debate in an interesting and important way. I am not aware of any

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criticisms that Mr Corbyn has ever announced about Mr Castro. There

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were four words in his statement yesterday which is spin doctor would

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have forced him to say, for all his flaws. He was on this Cuban

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solidarity committee, which didn't exist to criticise Castro. It

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existed to help protect Castro from those, particularly the Americans,

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who were trying to undermine him. And Corbyn made a big deal yesterday

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saying he has always called out human rights abuses all over the

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world. But he said that in general, I call out human rights abuses. He

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never said, I have called out human rights abuses in Cuba. In the weeks

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ahead, more will come out about what these human rights abuses were. The

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lid will come off what was actually happening. Some well authenticated

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stories are pretty horrendous. I was speaking to a journalist who was

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working there in the 1990s, who gave me vivid examples of that, and there

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will be more to come. I still go back to, when a major figure diet

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and you are a leader who has admired but major figure, you have to say

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it. That is the trap he has fallen into. He has proved every criticism

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that he is a duck old ideologue. But he is not the only one. Prime

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Minister Trudeau was so if uses that I wondered if they were going to

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open up a book of condolences. I think it reinforces Corbyn's failing

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brand. It may be authentic, but authentic isn't working for him.

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When I was driving, I heard Trevor Phillips, who is a Blairite, saying

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the record was mixed and there were a lot of things to admire as well as

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all the terrible things. So it is quite nuanced. But if you are a

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leader issuing a sound bite, there is no space for new ones. You either

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decide to go for the consensus, which is to set up on the whole, it

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was a brutal dictatorship. Or you say, here is an extraordinary figure

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worthy of admiration. In my view, he was right to say what he believed.

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There was still a dilemma for the British government over who they

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sent to the funeral. Do they sent nobody, do they say and Boris

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Johnson as a post-ironic statement? There is now a post-Castro Cuba to

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deal with. Trump was quite diplomatic about post-Castro Cuba.

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And Boris Johnson's statement was restrained. The thing about Mr

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Castro was the longevity, 50 years of keeping Marxism on the island.

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That was what made it so fascinating.

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Before the last election, George Osborne promised the NHS

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in England a real-terms funding boost of ?8 billion per year by 2020

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on the understanding that NHS bosses would also find ?22 billion worth

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Since last autumn, NHS managers have been drawing up what they're calling

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"Sustainability and Transformation Plans" to make these savings,

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but some of the proposals are already running into local

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opposition, while Labour say they amount to huge cuts to the NHS.

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Help is on the way for an elderly person in need in Hertfordshire.

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But east of England ambulance call operators

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they're sending an early intervention vehicle

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with a council-employed occupational therapist on board.

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It's being piloted here for over 65s with

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When they arrive, a paramedic judges if the patient can be

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treated immediately at home without a trip to hospital.

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Around 80% of patients have been treated this way,

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taking the strain off urgently-needed hospital beds,

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So the early intervention team has assessed the patient and decided

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The key to successful integration for Hertfordshire being able

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to collaboratively look at how we use our resources,

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to have pooled budgets, to allow us to understand

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where spend is, and to let us make conscientious decisions about how

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best to use that money, to come up with ideas to problems

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that sit between our organisations, to look at things collaboratively.

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This Hertfordshire hospital is also a good example of how

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You won't find an A unit or overnight beds here any more.

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The closest ones are 20 minutes down the road.

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What's left is nurse-led care in an NHS-built hospital.

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Despite a politically toxic change, this reconfiguration went

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through after broad public and political consultation

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with hospital clinicians and GPs on board.

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It's a notable achievement that's surely of interest to 60% of NHS

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trusts in England that reported a deficit at the end of September.

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It's not just here that the NHS needs to save money and provide

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The Government is going to pour in an extra ?8 billion into the NHS

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in England, but it has demanded ?22 billion

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worth of efficiencies across the country.

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In order to deliver that, the NHS has created 44 health

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and care partnerships, and each one will provide

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a sustainability and transformation plan, or STP, to integrate care,

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provide better services and save money.

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So far, 33 of these 44 regional plans, drawn up by senior people

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in the health service and local government,

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The NHS has been through five years of severely constrained spending

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growth, and there are another 4-5 years on the way at least.

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STPs themselves are an attempt to deal in a planned way

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But with plans to close some A units and reduce the number

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of hospital beds, there's likely to be a tough political battle

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ahead, with many MPs already up in arms about proposed

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This Tory backbencher is concerned about the local plans for his

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I wouldn't call it an efficiency if you are proposing to close

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all of the beds which are currently provided for those coming out

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of the acute sector who are elderly and looking

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That's not a cut, it's not an efficiency saving,

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All 44 STPs should be published in a month's time,

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But even before that, they dominated this week's PMQs.

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The Government's sustainability and transformation plans

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for the National Health Service hide ?22 billion of cuts.

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The National Health Service is indeed looking for savings

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within the NHS, which will be reinvested in the NHS.

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There will be no escape from angry MPs for the Health Secretary either.

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Well, I have spoken to the Secretary of State just this week

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about the importance of community hospitals in general,

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These are proposals out to consultation.

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What could happen if these plans get blocked?

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If STPs cannot be made to work, the planned changes don't come

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to pass, then the NHS will see over time a sort of unplanned

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deterioration and services becoming unstable and service

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The NHS barely featured in this week's Autumn Statement

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but the Prime Minister insisted beforehand that STPs

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are in the interests of local people.

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Her Government's support will now be critical for NHS England

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to push through these controversial regional plans,

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which will soon face public scrutiny.

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We did ask the Department of Health for an interview,

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I've been joined by the Shadow Health Secretary,

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Do you accept that the NHS is capable of making ?22 billion of

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efficiency savings? Well, we are very sceptical, as are number of

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independent organisations about the ability of the NHS to find 22

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billion of efficiencies without that affecting front line care. When you

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drill down into the 22 billion, based on the information we have

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been given, and there hasn't been much information, we can see that

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some of it will come from cutting the budget which go to community

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pharmacies, which could lead, according to ministers, to 3000

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pharmacies closing, which we believe will increase demands on A and

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GPs, and also that a lot of these changes which are being proposed,

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which was the focus of the package, we think will mean service cuts at a

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local level. Do they? The chief executive of NHS England says these

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efficiency plans are "Incredibly important". He used to work from

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Labour. The independent King's Fund calls them "The best hope to improve

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health and care services. There is no plan B". On the sustainable

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transformation plans, which will be across England to link up physical

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health, mental health and social care, for those services to

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collaborate more closely together and move beyond the fragmented

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system we have at the moment is important. It seems that the ground

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has shifted. It has moved into filling financial gaps. As we know,

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the NHS is going through the biggest financial squeeze in its history. By

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2018, per head spending on the NHS will be falling. If you want to

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redesign services for the long term in a local area, you need to put the

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money in. So of course, getting these services working better

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together and having a greater strategic oversight, which we would

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have had if we had not got rid of strategic health authority is in the

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last Parliament. But this is not an attempt to save 22 billion, this is

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an attempt to spend 22 billion more successfully, don't you accept that?

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Simon Stevens said we need 8 billion, and we need to find 22

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billion of savings. You have to spend 22 billion more efficiently.

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But the Government have not given that 8 billion to the NHS which they

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said they would. They said they would do it by 2020. But they have

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changed the definitions of spending so NHS England will get 8 billion by

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2020, but they have cut the public health budgets by about 4 million by

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20 20. The budget that going to initiatives to tackle sexually

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transmitted diseases, to tackle smoking have been cut back but the

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commissioning of things like school nurses and health visitors have been

:16:30.:16:33.

cut back as well. Simon Stevens said he can only deliver that five-year

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project if there is a radical upgrade in public health, which the

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Government have failed on, and if we deal with social care, and this week

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there was an... I understand that, but if you don't think the

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efficiency drive can free up 22 billion to take us to 30 billion by

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2020, where would you get the money from? I have been in this post now

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for five or six weeks and I want to have a big consultation with

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everybody who works in the health sector, as well as patients, carers

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and families. Though you don't know? I think it would be surprised if I

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had an arbitrary figure this soon into the job. Your party said they

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expected election of spring by this year, you need to have some idea by

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now, you inherited a portfolio from Diane Abbott, did she have no idea?

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To govern is to make choices and we would make different choices. The

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budget last year scored billions of giveaways in things like

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co-operating -- corporation tax. What I do want to do... Is work on a

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plan and the general election, whenever it comes, next year or in

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2020 or in between, to have costed plan for the NHS. But your party is

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committed to balancing the books on current spending, that is currently

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John McDonnell, the Shadow Chancellor's position. What we are

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talking about, this extra 30 billion, that is essentially current

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spending so if it doesn't come from efficiency savings, where does the

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money come from? Some of it is also capital. Mainly current spending. If

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you look at the details of the OBR, they have switched a million from

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the capital into revenue. Why -- how do you balance spending?

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That is why we need to have a debate. Every time we ask for

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Labour's policy, we are always told me a debate. Surely it is time to

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give some idea of what you stand for? There's huge doubts about the

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Government 's policy on this. You are the opposition, how would you do

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it? I want to work with John McDonnell to find a package to give

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the NHS the money it needs, but of course our Shadow Chancellor, like

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any Shadow Chancellor at this stage in the cycle, will want to see what

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the books look like a head of an election before making commitments.

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I am clear that the Labour Party has to go into the next general election

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with a clear policy to give the NHS the funding it needs because it has

:19:33.:19:35.

been going through the largest financial squeeze in its history.

:19:36.:19:40.

You say Labour will always give the NHS the money it needs, that is not

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a policy, it is a blank cheque. It is an indication of our commitment

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to the NHS. Under this Conservative government, the NHS has been getting

:19:51.:19:54.

a 1% increase. Throughout its history it has usually have about

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4%. Under the last Labour government it was getting 4%, before that

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substantially more. We think the NHS should get more but I don't have

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access to the NHS books in front of me. The public thinks there needs to

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be more money spent on health but they also think that should go cap

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in hand with the money being more efficiently spent, which is what

:20:22.:20:26.

this efficiency drive is designed to release 22 billion. Do you have an

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efficiency drive if it is not the Government's one? Of course we

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agree. We agree the NHS should be more efficient, we want to see

:20:38.:20:42.

productivity increased. Do know how to do that? One way is through

:20:43.:20:49.

investments, maintenance, but there is a 5 million maintenance backlog.

:20:50.:20:55.

One of the most high risk backlogs is something like 730 million. They

:20:56.:21:02.

are going to switch the capital spend into revenue spend. I believe

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that when you invest in maintenance and capital in the NHS, that

:21:07.:21:10.

contribute to increasing its productivity. You are now talking

:21:11.:21:14.

about 5 billion the maintenance, the chief executive says it needs 30

:21:15.:21:20.

billion more by 2020 as a minimum so that 35 billion. You want to spend

:21:21.:21:27.

more on social care, another for 5 billion on that so we have proper

:21:28.:21:30.

care in the community. By that calculation I'm up to about 40

:21:31.:21:34.

billion, which is fine, except where do you get the and balance the

:21:35.:21:39.

account at the same time? We will have to come up with a plan for that

:21:40.:21:44.

and that's why I will work with our Shadow Treasury team to come up with

:21:45.:21:47.

that plan when they head into the general election. At the moment we

:21:48.:21:51.

are saying to the NHS, sorry, we are not going to give you the

:21:52.:21:55.

investment, which is why we are seeing patient care deteriorating.

:21:56.:22:03.

The staff are doing incredible things but 180,000 are waiting in

:22:04.:22:09.

A beyond four hours, record levels of people delayed in beds in

:22:10.:22:12.

hospitals because there are not the beds in the community to go to save

:22:13.:22:16.

the NHS needs the investment. We know that and we know the

:22:17.:22:19.

Government's response to that and many think it is inadequate. What

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I'm trying to get from you is what your response would be and what your

:22:25.:22:27.

reaction will be to these efficiency plans. Your colleague Heidi

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Alexander, she had your job earlier this year, she warned of the danger

:22:33.:22:39.

of knee jerk blanket opposition to local efficiency plans. Do you agree

:22:40.:22:46.

with that? Yes. So every time a hospital is going to close as a

:22:47.:22:52.

result of this, and some will, it is Labour default position not just

:22:53.:22:56.

going to be we are against it? That is why we are going to judge each of

:22:57.:23:00.

these sustainability plans by a number of yardsticks. We want to see

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if they have the support of local clinicians, we want to see if they

:23:05.:23:08.

have the support of local authorities because they now have a

:23:09.:23:11.

role in the delivery of health care. We want to see if they make the

:23:12.:23:15.

right decisions for the long-term trends in population for local area.

:23:16.:23:19.

We want to see if they integrate social care and health. If they

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don't and therefore you will not bank that as an efficiency saving,

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you will say no, that's not the way to go, you are left then with

:23:29.:23:33.

finding the alternative funding to keep the NHS going. If you are

:23:34.:23:39.

cutting beds, for example the proposal is to cut something like

:23:40.:23:45.

5000 beds in Derbyshire and if there is the space in the community sector

:23:46.:23:48.

in Derbyshire, that will cause big problems for the NHS in the long

:23:49.:23:53.

term so it is a false economy. An example like that, we would be very

:23:54.:23:58.

sceptical the plans could work. Would it not be honest, given the

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sums of money involved and your doubts about the efficiency plan,

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which are shared by many people, to just say, look, among the wealthy

:24:08.:24:12.

nations, we spend a lower proportion of our GDP on health than most of

:24:13.:24:18.

the other countries, European countries included, we need to put

:24:19.:24:23.

up tax if we want a proper NHS. Wouldn't that be honest? I'm not the

:24:24.:24:28.

Shadow Chancellor, I don't make taxation policy. You are tempting me

:24:29.:24:35.

down a particular road by you or I smile. John McDonnell will come up

:24:36.:24:39.

with our taxation policy. We have had an ambition to meet the European

:24:40.:24:42.

average, the way these things are measured have changed since then,

:24:43.:24:46.

but we did have that ambition and for a few years we met it. We need

:24:47.:24:53.

substantial investment in the NHS. Everyone accepts it was

:24:54.:24:55.

extraordinary that there wasn't an extra penny for the NHS in the

:24:56.:24:59.

Autumn Statement this week. And as we go into the general election,

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whenever it is, we will have a plan for the NHS. Come back and speak to

:25:05.:25:09.

us when you know what you are going to do. Thank you.

:25:10.:25:11.

Theresa May has promised to trigger formal Brexit negotiations

:25:12.:25:13.

before the end of March, but the Prime Minister must wait

:25:14.:25:16.

for the Supreme Court to decide whether parliament must vote

:25:17.:25:19.

If that is the Supreme Court's conclusion, the Liberal Democrats

:25:20.:25:22.

and others in parliament have said they'll demand a second EU

:25:23.:25:25.

referendum on the terms of the eventual Brexit deal before

:25:26.:25:27.

And last week, two former Prime Ministers suggested

:25:28.:25:30.

that the referendum result could be reversed.

:25:31.:25:33.

In an interview with the New Statesman on Thursday,

:25:34.:25:37.

Tony Blair said, "It can be stopped if the British people decide that,

:25:38.:25:40.

having seen what it means, the pain-gain cost-benefit analysis

:25:41.:25:42.

John Major also weighed in, telling a meeting

:25:43.:25:49.

of the National Liberal Club that the terms of Brexit

:25:50.:25:51.

were being dictated by the "tyranny of the majority".

:25:52.:25:53.

He also said there is a "perfectly credible case"

:25:54.:25:55.

That prompted the former Conservative leader

:25:56.:25:59.

Iain Duncan Smith to criticise John Major.

:26:00.:26:03.

He told the BBC, "The idea we delay everything simply

:26:04.:26:05.

because they disagree with the original result does

:26:06.:26:07.

seem to me an absolute dismissal of democracy."

:26:08.:26:12.

So, is there a realistic chance of a second referendum on the terms

:26:13.:26:15.

of whatever Brexit deal Theresa May manages to secure?

:26:16.:26:20.

Lib Dem party leader Tim Farron has said, "We want to respect

:26:21.:26:23.

the will of the people and that means they must have their say

:26:24.:26:27.

in a referendum on the terms of the deal."

:26:28.:26:30.

But the Lib Dems have just eight MPs - they'll need Labour support

:26:31.:26:34.

One ally is former Labour leadership candidate Owen Smith.

:26:35.:26:39.

He backs the idea of a second referendum.

:26:40.:26:43.

But yesterday the party's deputy leader, Tom Watson, said that,

:26:44.:26:45.

"Unlike the Lib Dem Brexit Deniers, we believe in respecting

:26:46.:26:48.

To discuss whether or not there should be a second referendum

:26:49.:26:56.

on the terms of the Brexit deal, I've been joined by two

:26:57.:26:59.

In Somerset is the former Lib Dem leader Paddy Ashdown,

:27:00.:27:02.

and in Shropshire is the former Conservative cabinet minister

:27:03.:27:04.

Paddy Ashdown, let me come to you first. When the British people have

:27:05.:27:16.

spoken, you do what they command, either you believe in democracy or

:27:17.:27:22.

you don't. When democracy speaks, we obey. Your words on the night of the

:27:23.:27:29.

referendum, what's changed? Nothing has changed, Andrew, that's what I

:27:30.:27:32.

said and what I still believe in. The British people have spoken, we

:27:33.:27:37.

will not block Parliament debating the Brexit decision, Article 50, but

:27:38.:27:43.

we will introduce an amendment to say that we need to consult the

:27:44.:27:50.

British people, not about if we go out but what destination we would

:27:51.:27:57.

then achieve. There is a vast difference in ordinary people's

:27:58.:28:01.

lives between the so-called hard Brexit and soft Brexit. Soft Brexit,

:28:02.:28:05.

you remain in the single market, you have to accept and agree on

:28:06.:28:10.

immigration. Hard Brexit you are out of the single market, we have many

:28:11.:28:18.

fewer jobs... Why didn't you say before the referendum there would be

:28:19.:28:24.

a second referendum on the terms? Forgive me, I said it on many

:28:25.:28:28.

occasions, you may not have covered it, Andrew, but that's a different

:28:29.:28:33.

thing. In every speech I gave I said this, and this has proved to be

:28:34.:28:37.

true, since those who recommended Brexit refused to tell us the

:28:38.:28:40.

destination they were recommending, they refuse to give any detail about

:28:41.:28:46.

the destination, if we did vote to go out, it would probably be

:28:47.:28:50.

appropriate to decide which destination, hard Brexit or soft

:28:51.:28:54.

Brexit we go to. They deliberately obscure that because it made it more

:28:55.:28:59.

difficult to argue the case. It wasn't part of the official campaign

:29:00.:29:05.

but let me come to Owen Paterson. What's wrong with a referendum on

:29:06.:29:09.

the terms of the deal? We voted to leave but we don't really know on

:29:10.:29:13.

what conditions we leave so what's wrong with negotiating the deal and

:29:14.:29:16.

putting that deal to the British people? This would be a ridiculous

:29:17.:29:24.

idea, it would be a complete gift to the EU negotiators to go for an

:29:25.:29:29.

impossibly difficult deal because they want to do everything to make

:29:30.:29:33.

sure that Brexit does not go through. This nonsense idea of hard

:29:34.:29:38.

Brexit and soft Brexit, it was never discussed during the referendum

:29:39.:29:42.

campaign. We made it clear we wanted to take back control, that means

:29:43.:29:48.

making our own laws, raising and spending the money agreed by elected

:29:49.:29:51.

politicians, getting control of our own borders back, and getting

:29:52.:29:55.

control of our ability to do trade deals around the world. That was

:29:56.:29:59.

clear at all stages of the referendum. We got 17.4 million

:30:00.:30:05.

votes, the biggest vote in history for any issue, that 52%, 10% more

:30:06.:30:10.

than John Major got and he was happy with his record number of 14

:30:11.:30:15.

million, more than Tony Blair got, which was 43%, so we have a very

:30:16.:30:19.

clear mandate. Time and again people come up to me and say when are we

:30:20.:30:24.

going to get on with this. The big problem is uncertainty. We want to

:30:25.:30:27.

trigger Article 50, have the negotiation and get to a better

:30:28.:30:30.

place. OK, I need to get a debate going.

:30:31.:30:40.

Paddy Ashdown, the EU doesn't want us to leave. If they knew there was

:30:41.:30:44.

going to be a second referendum, surely there was going to be a

:30:45.:30:46.

second referendum, surely their incentive would be to give us the

:30:47.:30:48.

worst possible deal would vote against it would put us in a

:30:49.:30:53.

ridiculous negotiating position. On the contrary, the government could

:30:54.:30:58.

go and negotiate with the European Union and anyway, the opinion of the

:30:59.:31:01.

European Union is less important than the opinion of the British

:31:02.:31:05.

people. It seems to me that Owen Paterson made the case for me

:31:06.:31:09.

precisely. They refuse to discuss what kind of destination. Britain

:31:10.:31:15.

voted for departure, but not a destination. Because Owen Paterson

:31:16.:31:18.

and his colleagues refused to discuss what their model was. So the

:31:19.:31:23.

range of options here and the impact on the people of Britain is huge.

:31:24.:31:27.

There is nothing to stop the government going to negotiate,

:31:28.:31:30.

getting the best deal it can and go into the British people and saying,

:31:31.:31:36.

this is the deal, guys, do you agree? Owen Paterson? It is simple.

:31:37.:31:43.

The British people voted to leave. We voted to take back control of our

:31:44.:31:50.

laws, our money, our borders. But most people don't know the shape of

:31:51.:31:53.

what the deal would be. So why not have a vote on it? Because it would

:31:54.:32:00.

be a gift to the EU negotiators to drive the worst possible deal in the

:32:01.:32:05.

hope that it might be chucked out with a second referendum. The

:32:06.:32:09.

biggest danger is the uncertainty. We have the biggest vote in British

:32:10.:32:16.

history. You have said all that. It was your side that originally

:32:17.:32:20.

proposed a second referendum. The director of Leave said, there is a

:32:21.:32:25.

strong democratic case for a referendum on what the deal looks

:32:26.:32:31.

like. Your side. Come on, you are digging up a blog from June of 2015.

:32:32.:32:42.

He said he had not come to a conclusion. He said it is a distinct

:32:43.:32:50.

possibility. No senior members of the campaign said we would have a

:32:51.:32:55.

second referendum. It is worth chucking Paddy the quote he gave on

:32:56.:32:59.

ITV news, whether it is a majority of 1% or 20%, when the British

:33:00.:33:02.

people have spoken, you do what they command. People come up to me and

:33:03.:33:09.

keep asking, when are you going to get on with it? What do you say to

:33:10.:33:19.

that, Paddy Ashdown? Owen Paterson has obviously not been paying

:33:20.:33:22.

attention. You ask me that question at the start. Owen and his kind have

:33:23.:33:32.

to stick to the same argument. During the referendum, when we said

:33:33.:33:36.

that the Europeans have it in their interest to picket tough for us,

:33:37.:33:42.

they would suffer as well. And that has proved to be right. The European

:33:43.:33:46.

Union does not wish to hand as a bad deal, because they may suffer in the

:33:47.:33:51.

process. We need the best deal for both sides. I can't understand why

:33:52.:34:03.

Owen is now reversing that argument. Here is the question I am going to

:34:04.:34:07.

ask you. If we have a second referendum on the deal and we vote

:34:08.:34:16.

by a very small amount, by a sliver, to stay in, can we then make it

:34:17.:34:27.

best-of-3? No, Andrew! Vince Cable says he thinks if you won, he would

:34:28.:34:32.

have to have a decider. You will have to put that income tax, because

:34:33.:34:36.

I don't remember when he said that. -- you have to put that in context.

:34:37.:34:44.

Independent, 19th of September. That is a decision on the outcome. The

:34:45.:34:50.

central point is that the British people voted for departure, not a

:34:51.:34:55.

destination. In response to the claim that this is undemocratic, if

:34:56.:35:00.

it is democratic to have one referendum, how can it be

:35:01.:35:05.

undemocratic to have two? Owen Paterson, the British government, on

:35:06.:35:08.

the brink of triggering article 50, cannot tell us if we will remain

:35:09.:35:12.

members of the single market, if we will remain members of the customs

:35:13.:35:19.

union. From that flows our ability to make trade deals, our attitude

:35:20.:35:23.

towards freedom of movement and the rest of it. Given that the

:35:24.:35:26.

government can't tell us, it is clear that the British people have

:35:27.:35:30.

no idea what the eventual shape will be. That is surely the fundamental

:35:31.:35:35.

case for a second referendum. Emphatically not. They have given a

:35:36.:35:42.

clear vote. That vote was to take back control. What the establishment

:35:43.:35:50.

figures like Paddy should recognise is the shattering damage it would do

:35:51.:35:52.

to the integrity of the whole political process if this was not

:35:53.:36:00.

delivered. People come up to me, as I have said for the third time now,

:36:01.:36:03.

wanting to know when we will get article 50 triggered. Both people

:36:04.:36:09.

who have voted to Remain and to Leave. If we do not deliver this, it

:36:10.:36:13.

will be disastrous for the reputation and integrity of the

:36:14.:36:17.

whole political establishment. Let me put that you Paddy Ashdown. It is

:36:18.:36:25.

very Brussels elite - were ask your question but if we don't like the

:36:26.:36:29.

answer, we will keep asking the question. Did it with the Irish and

:36:30.:36:38.

French. It is... It would really anger the British people, would it

:36:39.:36:44.

not? That is an interesting question, Andrew. I don't think it

:36:45.:36:48.

would. All the evidence I see in public meetings I attended, and I

:36:49.:36:52.

think it is beginning to show in the opinion polls, although there hasn't

:36:53.:36:55.

been a proper one on this yet, I suspect there is a majority in

:36:56.:36:58.

Britain who would wish to see a second referendum on the outcome.

:36:59.:37:02.

They take the same view as I do. What began with an open democratic

:37:03.:37:07.

process cannot end with a government stitch up. Contrary to what Owen

:37:08.:37:11.

suggests, there is public support for this. And far from damaging the

:37:12.:37:18.

government and the political class, it showed that we are prepared to

:37:19.:37:22.

listen. We shall see. Paddy Ashdown, have you eaten your hat yet? Andrew,

:37:23.:37:32.

as you well know, I have eaten five hats. You cannot have a second

:37:33.:37:37.

referendum until you eat your hat on my programme. We will leave it

:37:38.:37:40.

there. Paddy Ashdown and Owen Paterson, thank you much. I have

:37:41.:37:47.

eaten a hat on your programme. I don't remember!

:37:48.:37:50.

It's just gone 11.35, you're watching the Sunday Politics.

:37:51.:37:52.

We say goodbye to viewers in Scotland, who leave us now

:37:53.:38:02.

In the East Midlands, never mind the just managing jams,

:38:03.:38:06.

what about those who are not managing at all?

:38:07.:38:09.

We have brought the Chancellor's Autumn Statement to the town

:38:10.:38:12.

that voted very heavily to leave the European Union.

:38:13.:38:16.

And more money from the Chancellor for housing.

:38:17.:38:18.

Will it be enough to cut the waiting list?

:38:19.:38:22.

I don't think we've had a really good consistent housing policy for

:38:23.:38:25.

Hello, I am Marie Ashby and my guests are the Conservative

:38:26.:38:32.

former Chancellor himself, and the Labour MP for Gedling

:38:33.:38:36.

Let's get your reaction to the Autumn Statement.

:38:37.:38:40.

The Chancellor painted a picture of growing debt and

:38:41.:38:44.

I was very reassured by the statement.

:38:45.:38:55.

At last, after all the madness of the last few months,

:38:56.:38:58.

there is the man who understands economic policy

:38:59.:39:00.

and there is a sound and

:39:01.:39:02.

tough guy when he needs to be talking about the real world.

:39:03.:39:06.

And getting us all to face up to the fact that the next few

:39:07.:39:09.

The global economy is in no great state either.

:39:10.:39:13.

He explained how he is going to stick

:39:14.:39:18.

to sensible economic policies and concentrate on what little money

:39:19.:39:22.

he has got to try and develop a modern, competitive

:39:23.:39:26.

economy to give people jobs for the future.

:39:27.:39:28.

He is going to have to stick to that as well and not be

:39:29.:39:38.

That infrastructure investment which has been promised is

:39:39.:39:41.

Your party is attacking the Chancellor,

:39:42.:39:44.

isn't it, for not tackling social care at all.

:39:45.:39:47.

The first thing to say about the Autumn Statement was,

:39:48.:39:51.

in or out of the EU, it was an admission of the failed

:39:52.:39:54.

We now have a Government that can't see anything

:39:55.:39:59.

about extra spending about on the NHS or social care

:40:00.:40:01.

and is having to borrow an extra 122 billion over the period

:40:02.:40:04.

of the next five years without a clear indication

:40:05.:40:07.

of when the budget will come into surplus at the same

:40:08.:40:10.

time as living standards are being squeezed.

:40:11.:40:14.

I think people out there will see it as

:40:15.:40:16.

an Autumn Statement that carries on the failed policies

:40:17.:40:19.

He should apparently have spent a lot more money and somehow get rid

:40:20.:40:26.

I think if you followed Vernon's remedy, the debt

:40:27.:40:30.

Back in the real world, the fact is the

:40:31.:40:39.

financial crash of 2006-2008 is the main cause of where

:40:40.:40:42.

we were and we haven't successfully here or in the rest of

:40:43.:40:45.

You predicted that there could be a recession.

:40:46.:40:52.

After the Brexit vote, you predicted there could be a recession.

:40:53.:40:56.

Could that still happen in your view?

:40:57.:40:58.

I think there is a real risk of a recession.

:40:59.:41:00.

I am usually quite a cheerful guy, as you will admit.

:41:01.:41:06.

Yes, I think there is a serious risk of a recession in the next year

:41:07.:41:10.

If that is the case, is it likely that Theresa May

:41:11.:41:13.

I'm asking do you think she could do that?

:41:14.:41:19.

The last Government that I was in that called

:41:20.:41:21.

because it could not think of what else to do

:41:22.:41:25.

What we need is a clear-headed man like Philip Hammond who is

:41:26.:41:33.

not going to play silly short-term politics.

:41:34.:41:38.

He knows you get lobbied for more money every time you go near the

:41:39.:41:41.

House of Commons if you are the Chancellor.

:41:42.:41:43.

A change of policy is

:41:44.:41:44.

He was keen to spend money on infrastructure with more

:41:45.:41:51.

than ?1 million for affordable housing.

:41:52.:41:53.

Will that be enough to tackle the region's housing shortage?

:41:54.:41:57.

Nottingham's new waterside neighbourhood is taking shape.

:41:58.:42:02.

45 homes have just been finished on old

:42:03.:42:04.

industrial land within spitting nistance of the city's sights.

:42:05.:42:08.

The idea of living here on the banks of the Trent is

:42:09.:42:11.

This development has taken 20 years to come about.

:42:12.:42:15.

There are many other brown field sites in

:42:16.:42:17.

Nottingham that have waited just as long to be built on.

:42:18.:42:20.

On the surface things seem to be picking up.

:42:21.:42:25.

In Nottingham, just over two and half thousand homes are

:42:26.:42:28.

in the pipeline, being built or recently completed.

:42:29.:42:32.

I guess the idea ultimately is that all of this land

:42:33.:42:34.

we see in front of us here will be developed?

:42:35.:42:37.

Yes, this is just the

:42:38.:42:38.

start of a huge regeneration project.

:42:39.:42:41.

There is economic uncertainty, however I think in

:42:42.:42:43.

Nottingham we are determined to make this work.

:42:44.:42:45.

We are determined to do

:42:46.:42:49.

what we can to work with developers to bring sites forward, to make

:42:50.:42:54.

development possible and to regenerate these areas.

:42:55.:42:56.

The developer behind this project believes

:42:57.:43:01.

successive governments could have done much more to help.

:43:02.:43:03.

Arguably, we are not producing enough homes of the right type.

:43:04.:43:11.

Clearly, the results show that we could doing better.

:43:12.:43:18.

What did you make of the Autumn Statement?

:43:19.:43:21.

The housing infrastructure fund is a step in the

:43:22.:43:23.

The new money, additional money for affordable housing is important.

:43:24.:43:30.

Some of the money announced on Wednesday's should

:43:31.:43:33.

trickle down to the East Midlands and perhaps to affordable housing

:43:34.:43:35.

Jordan has just moved into one of the new

:43:36.:43:40.

council houses in a generation in this Conservative run district.

:43:41.:43:43.

The local authority has paid for some of this

:43:44.:43:55.

under the Right to Buy scheme and derelict houses are also

:43:56.:43:59.

But money is tight and the extra cash on the Government is welcome.

:44:00.:44:04.

It is fantastic news and we will be able to build more houses

:44:05.:44:07.

We will be bidding for that money and building more developments

:44:08.:44:10.

and getting people off the waiting lists.

:44:11.:44:12.

45 families will have a new home here.

:44:13.:44:17.

That is out of the waiting list of around a thousand.

:44:18.:44:19.

The housing crisis will take some solving.

:44:20.:44:25.

Housing is part of the big push on infrastructure.

:44:26.:44:28.

What else is in it for the East Midlands?

:44:29.:44:30.

We're joined by Maria Machancoses, the programme directors of

:44:31.:44:33.

It is the body that has been set up to improve

:44:34.:44:38.

Very few mentions of the Midland Engine in the Autumn Statement.

:44:39.:44:43.

?5 million for a transport hub in Birmingham.

:44:44.:44:44.

This is in addition to the 12 million that was announced

:44:45.:44:52.

As you know, we are working very hard with the Trent eight

:44:53.:45:03.

authorities and businesses, universities and colleges to submit

:45:04.:45:09.

to Government our priorities. What this 5 million that we receive is to

:45:10.:45:15.

help us shape some of the projects that we have in mind and these

:45:16.:45:20.

projects will enable solutions to improve the east and west

:45:21.:45:24.

connectivity between the cities and the towns. Tell us about those

:45:25.:45:29.

projects. What will we see here in the Midlands? We will address some

:45:30.:45:34.

the bottlenecks. They are not allowing businesses to connect with

:45:35.:45:40.

each other in a faster and reliable way. There are a number of

:45:41.:45:44.

interventions around Birmingham and also in the south-west and into the

:45:45.:45:48.

East Midlands that would allow that connectivity to happen. That is what

:45:49.:45:53.

we are calling the Midlands rail harp. We heard from a Economist last

:45:54.:46:00.

week that says there are billions of pounds in cash for the Northern

:46:01.:46:08.

Powerhouse. He could do it is a Government behind this Midland

:46:09.:46:17.

engine? I believe in it strongly. We have got to spread the benefits of

:46:18.:46:23.

economic success across the country. Stop it being in London and the

:46:24.:46:27.

south-east. There is a limit to how far they can go down there. The

:46:28.:46:31.

Midlands and the north should be able to support a moderate economy.

:46:32.:46:37.

We have Rolls-Royce and hotel. Also a lot of smaller businesses. --

:46:38.:46:46.

Toyota. Political lobbying and we have a marginal seat you, can we

:46:47.:46:51.

have a bypass? We cannot afford that sort of stuff at the moment. I am

:46:52.:46:54.

glad that Philip did not produce a list of projects that Gordon and

:46:55.:47:01.

George did occasionally. What we need is for business people to focus

:47:02.:47:05.

on where we need to spend money and cut business costs. Links between

:47:06.:47:10.

Birmingham and Derby and Nottingham are attractive. Vernon Coker, can I

:47:11.:47:20.

bring in here, is a Government behind this? I think I agree with

:47:21.:47:26.

Ken about the need to secure economic growth. If we are talking

:47:27.:47:34.

about transport and links with the east and west are important but the

:47:35.:47:38.

big thing from our point of view is the lack that the Government is

:47:39.:47:44.

saying they will lecture via the Midlands rail line by 2023. Nothing

:47:45.:47:50.

is being said about that. Nottingham, Derby and Sheffield, the

:47:51.:47:56.

electrification of that is very crucial. That is what businesses did

:47:57.:47:59.

to me and the Government has not said anything at all. This is what

:48:00.:48:05.

you are about, Maria. How concerned are you that this all education is

:48:06.:48:11.

being delayed? It has been made clear that electrification on the

:48:12.:48:15.

Midlands is very important. We are also putting the all education in

:48:16.:48:22.

the context of high-speed rail to. It does seem sometimes that our

:48:23.:48:30.

region is being sidelined. We are a waiting for it here and we're going

:48:31.:48:38.

to be waiting long time for that. We had been talking about it for eight

:48:39.:48:41.

years and we have not seen every evidence of it. I quite agree but

:48:42.:48:48.

instead of going back to the usual political rows, equal to the West

:48:49.:48:51.

Country and there's not enough coming here at, Scotland is

:48:52.:48:56.

unfurling treated... Jobs are at stake. These are difficult times.

:48:57.:49:02.

Why does it take so long? I would like to see that I would like to see

:49:03.:49:07.

someone that electrified the Midlands rail line is the key

:49:08.:49:11.

business. Business going to London could travel more comfortably

:49:12.:49:15.

because it would be quieter. I want to see a good business case for what

:49:16.:49:20.

that would do to stimulate economic activity. Jobs and investment

:49:21.:49:30.

here... All of the big business leaders and people from the various

:49:31.:49:35.

and people who use the line would and people who use the line would

:49:36.:49:38.

all say the electrification make a big difference. When you have a

:49:39.:49:45.

second-class line, as we have at the moment, it does influenced

:49:46.:49:48.

investment decisions and the way people are talking about it.

:49:49.:49:51.

High-speed rail going ahead is going to make a big difference. We might

:49:52.:49:56.

as well have a moderate train. High-speed rail brings a new

:49:57.:50:01.

capacity. That is important. I am glad that is steaming ahead.

:50:02.:50:04.

Everyone else arguing what they would like to see in the real...

:50:05.:50:11.

Another delay means businesses are very concerned about it. The money

:50:12.:50:18.

you spend has got to be on something that has some immediate practical

:50:19.:50:23.

impact. The only one that is not a electrified north to south. It is

:50:24.:50:27.

the only one. It is a good service. It is not as good as it should be.

:50:28.:50:34.

It is important. It is very important to show the certainty to

:50:35.:50:37.

businesses and communities that we are doing our very best and planning

:50:38.:50:42.

for the future to provide them for a faster and better connections,

:50:43.:50:47.

north, south. What we are trying to do with the Midlands connect is that

:50:48.:50:51.

certainty and providing businesses and the clear voice to Government

:50:52.:50:57.

what it is we require in terms of infrastructure to support growth and

:50:58.:51:00.

put us at the global stage. When will we see evidence of that? We are

:51:01.:51:05.

submitting the final strategy in March and that will have a plan of

:51:06.:51:10.

action. We will require when and hopefully it will be starting to get

:51:11.:51:14.

the support from Government and getting them ready and starting now.

:51:15.:51:19.

These projects take a long time to implement. We can see that. It is a

:51:20.:51:26.

real thing and we are working with the Government of long-term planning

:51:27.:51:31.

and support. Thank you very much indeed for joining us. We have

:51:32.:51:35.

discussed some of the big policy ideas behind the Autumn Statement.

:51:36.:51:39.

What affect will have on people here in the East Midlands? Here is our

:51:40.:51:43.

political editor. We now know that Brexit means slow economic growth

:51:44.:51:50.

and higher inflation. We have brought the Autumn Statement to

:51:51.:51:54.

Mansfield, the town which voted 70% of all the European union -- leave

:51:55.:52:00.

the European Union. When we get everything together we will be our

:52:01.:52:03.

own country again and that is what we need. You do not think economic

:52:04.:52:08.

bad news is enough to put you off? No, it will get better. I did not

:52:09.:52:12.

think Brexit was a good idea but now we have gone that way it has to be

:52:13.:52:17.

in the best interest of the country. You would hope so anyway. Modest and

:52:18.:52:30.

medium term. Here in the final lounge it is all about people having

:52:31.:52:35.

the money to spend. Productivity means sales and it is also about

:52:36.:52:40.

getting here easily. That means spending money on transport

:52:41.:52:44.

infrastructure. We need people into spend money and we also attract

:52:45.:52:49.

people from further appeal to the field. People cannot get here, they

:52:50.:52:54.

are not going to come and do that. -- further afield. The Autumn

:52:55.:52:59.

Statement was trailed as one to help beat just about managing. There are

:53:00.:53:07.

a lot of in that than to please. They are going to dig it off of us

:53:08.:53:15.

-- to get off of us, the pensioners. There are people you lot worse off

:53:16.:53:23.

than we are. Two independent think tank said said those on low incomes

:53:24.:53:37.

face grim years. Credit unions use money to lend and encourage saving.

:53:38.:53:42.

My message is to look at your budget and then at what you have coming in

:53:43.:53:46.

and out and put something aside for a emergencies. Even a small amount

:53:47.:53:50.

can make a big difference. What about those who have nothing?

:53:51.:53:55.

Nowhere to sleep at night? The Government is going to spend ?10

:53:56.:54:00.

million over two years. Is it enough? We are now seeing 39 people

:54:01.:54:07.

sleeping rough in Nottingham on a single night. It was down to three

:54:08.:54:11.

at one stage. The situation has got worse and got worse quickly. What we

:54:12.:54:16.

need is not a ?10 million initiative, we need is a national

:54:17.:54:20.

strategy. The Government delegated the responsibility to local

:54:21.:54:25.

authorities. This is a national problem and not a local problem.

:54:26.:54:29.

Back to those managing, a group which accounts for the politicians.

:54:30.:54:33.

Does the Autumn Statement mean jam today and vote tomorrow? The

:54:34.:54:42.

Institute for Fiscal Studies said that prospects for PR dreadful.

:54:43.:54:47.

People on low wages may be earning less into thousand and 21 than in

:54:48.:54:54.

2007. It is a grim outlook, isn't it? It is a very difficult time.

:54:55.:55:00.

We... People have been badly hit by the fiscal collapse of a couple

:55:01.:55:05.

years ago which we have not fully recovered from. There is no strong

:55:06.:55:11.

economic growth taking place in any western country for very long. We

:55:12.:55:14.

are getting to the end of the economic cycle and people who voted

:55:15.:55:18.

to make themselves poor are believing the European Union, if

:55:19.:55:22.

we're not careful. It is very difficult to look ahead without

:55:23.:55:28.

telling yourself we have got to pull yourself together, pursue sensible

:55:29.:55:34.

policies and make sure the living standards to go back to getting back

:55:35.:55:40.

on a path. That means moderate businesses and moderate economy run

:55:41.:55:46.

sensibly with access to the markets. Any reasons to be cheerful? Raising

:55:47.:55:50.

the threshold in which people pay tax, increasing the living wage.

:55:51.:55:55.

That is going to help people in work. It is going to be a tough

:55:56.:56:00.

period. The choice of the Government have made are making that worse. If

:56:01.:56:07.

you look at the Institute for Fiscal Studies are saying, it points out

:56:08.:56:16.

the rise in the threshold is the freezing of work benefits has caused

:56:17.:56:21.

problems. What could be Government have done, in your view, to made a

:56:22.:56:29.

difference? It should not adopt look at the National insurance threshold.

:56:30.:56:33.

What they should not have done was the changes to the in work benefits

:56:34.:56:37.

which affect those people who are trying to do the right thing, going

:56:38.:56:42.

to work. They are having more money ticking off them when they are at

:56:43.:56:46.

work. That is a choice the Government has made. Some of the

:56:47.:56:49.

backbenchers are saying that is the wrong thing to have done. As the

:56:50.:56:54.

Government on the wrong thing? We were subsidising low pay, low

:56:55.:57:00.

productivity and long hours culture with vast in work benefits which

:57:01.:57:04.

have exploded over the last 20 years. We were running up debt and

:57:05.:57:09.

relying on the tightness of strangers. The deficit... It was a

:57:10.:57:16.

third of what it was in worst GDP ratio when Auden Brown went, thank

:57:17.:57:24.

heavens. It has been difficult. -- Gordon. The immediate outlook is

:57:25.:57:32.

worrying. The thing I would say is that if you go back to 2010 when

:57:33.:57:38.

Labour lost the election, the economy was growing. The deficit was

:57:39.:57:43.

falling and the economy was growing. It was the decisions made by the

:57:44.:57:46.

coalition Government that choked off that growth and we had the severe

:57:47.:57:54.

austerity imposed which turned out we were going to balance the books,

:57:55.:57:58.

that field. We have ditched that moved to something else. We have

:57:59.:58:04.

more people in work then we have before. We have created more than

:58:05.:58:08.

30,000 jobs in three months as here. There are reasons to be positive,

:58:09.:58:13.

are in there? You can point to that but what we point to is that living

:58:14.:58:18.

standards have fallen. Living standards are likely to fall and if

:58:19.:58:21.

you look at the analysis of the budget that has been made... The

:58:22.:58:28.

Autumn Statement, rather. It is the purist and those just above that to

:58:29.:58:34.

our paying the most. There are warnings that food inflation could

:58:35.:58:38.

rise. That is not going to help anybody. All inflation is going to

:58:39.:58:45.

rise a bit, I'm afraid. We have to minimise the impact. These are

:58:46.:58:49.

predictions. They have been wrong before. We voted for Brexit and we

:58:50.:58:54.

have had a crash in the value of sterling. People got the idea we

:58:55.:58:57.

were going to leave the single market and the custom union... The

:58:58.:59:04.

economy is growing. The economy is growing but it is slowing quite

:59:05.:59:09.

rapidly. The idea that all we have to do is spend more public money...

:59:10.:59:15.

All the people burning names are people I would love to be able to

:59:16.:59:20.

help but Gordon is to have two budget eight year handing the stuff

:59:21.:59:23.

out and he left us with the deepest recession... Time now for a round-up

:59:24.:59:29.

of some of the other blood cult stories. Here's Tony with 60

:59:30.:59:35.

seconds. -- the other political stories. The overnight closure of

:59:36.:59:42.

the A services is to be referred to the Health Secretary. Campaigners

:59:43.:59:47.

welcomed the move. The NHS as trust says it does not have enough doctors

:59:48.:59:52.

to cover the overnight shifts. Plans to change the way Derby City Council

:59:53.:59:57.

is elected have been rejected. Councillor voted against the planned

:59:58.:00:00.

to switch to elections every four years. They will stick with the

:00:01.:00:11.

current system of voting. Former striking miners and their families

:00:12.:00:13.

have released a Christmas single to say thank you to the people who

:00:14.:00:18.

provided food to help them through the 1984 strike. Proceeds of the

:00:19.:00:26.

single will be given to food banks. There is a lack of Christmas cheer

:00:27.:00:30.

in Leicester were some have said the city's tree is an embarrassment. The

:00:31.:00:35.

council says it has had excellent feedback. It is not even December

:00:36.:00:43.

yet. That is the Sunday politics here in the East Midlands. Thank you

:00:44.:00:48.

to Ken Clarke and then in Cork for joining us in the studio. We will be

:00:49.:00:54.

back next week. Now it is back to hand you back to Andrew

:00:55.:00:56.

have got to make sure London is open. Thank you. Andrew, back to

:00:57.:00:59.

you. Is Theresa May serious

:01:00.:01:05.

about curbing executive pay? Who will be crowned Nigel Farage's

:01:06.:01:07.

successor as Ukip leader? And can the Lib Dems pull off

:01:08.:01:11.

a by-election upset in Richmond? So,,, on pay talk about the

:01:12.:01:39.

executive of what executives get compared to the average worker in

:01:40.:01:42.

the company, giving shareholders real power to vote down pay rises if

:01:43.:01:46.

they don't like them, which is pretty much what Ed Miliband

:01:47.:01:49.

proposed in the general election in 2015. Is she serious about this? She

:01:50.:01:59.

is very serious, and the Tory party probably does owe Ed Miliband an

:02:00.:02:02.

apology for trashing his ideas and 2015 and then putting them all up

:02:03.:02:06.

for votes in November 20 16. She is very serious, and this all comes

:02:07.:02:10.

back to her desperate fear that unless capitalism reforms itself and

:02:11.:02:13.

becomes more acceptable to the just about managing or even 78% of the

:02:14.:02:20.

country who are not earning vast wealth at anywhere near the figures

:02:21.:02:23.

you see in the City, serious things will happen and the political sense

:02:24.:02:29.

of trust will implode. She has already been bartered down by her

:02:30.:02:33.

own Cabinet on this. She wanted to go further and make workers on the

:02:34.:02:35.

board mandatory. They have managed to stop that. What will her fallback

:02:36.:02:43.

position be on workers on the board if she is not able to get it into

:02:44.:02:51.

some claw? We would like to have workers on the board, but whatever

:02:52.:02:55.

they do on the board there will have no voting powers on the board. When

:02:56.:02:59.

you look at what was leaked out over the weekend, that we should know the

:03:00.:03:03.

ratio of the top to the average and that shareholders who own the

:03:04.:03:09.

company should determine, in the end, the highest-paid salaries, you

:03:10.:03:15.

kind of think, what could the possible objection be to any of

:03:16.:03:21.

that? Two things. One, I agree with Tom that she is deadly serious about

:03:22.:03:26.

this agenda and it comes under the banner, that sentence in the party

:03:27.:03:30.

conference speech about "It's time to focus on the good that government

:03:31.:03:35.

can do". She is by instinct more of an interventionist than Cameron and

:03:36.:03:39.

Osborne. But she is incredibly cautious, whether it is through the

:03:40.:03:42.

internal constraints of opposition within Cabinet, or her own small C

:03:43.:03:49.

Conservative caution in implementing this stuff. Part of the problem is

:03:50.:03:53.

the practicalities. George Osborne commission will Hutton to do a

:03:54.:03:58.

report which came out with similar proposals, which were never

:03:59.:04:01.

implemented. It is quite hard to enforce. It will antagonise business

:04:02.:04:07.

leaders when she's to woo them again in this Brexit furore. So there are

:04:08.:04:11.

problems with it. And judging by what has happened so far, my guess

:04:12.:04:16.

is that the aim will be genuinely bold and interesting, and the

:04:17.:04:19.

implementation incredibly cautious. Does it matter if she annoys some

:04:20.:04:24.

business leaders? Isn't that part of her brand? Will there be problems on

:04:25.:04:30.

the Tory backbenches with it? I think there will be and I think it

:04:31.:04:33.

does matter at this sensitive time for when we are positioning

:04:34.:04:36.

ourselves as a country and whether we are going to brand ourselves as a

:04:37.:04:41.

great city of business, implementing quite interventionist policies. Any

:04:42.:04:44.

suggestion that the government can control how much the top earners

:04:45.:04:49.

get, I think would be received in a hostile way. What would be wrong

:04:50.:04:53.

with the shareholders, who own the company, determining the pay of the

:04:54.:04:58.

higher hands, the executives? Morally, you can absolutely make

:04:59.:05:01.

that argument but to business leaders, they will not like it.

:05:02.:05:06.

Ultimately, this will not come down to more than a row of beans. There

:05:07.:05:09.

was a huge debate about whether there should be quotas of women on

:05:10.:05:12.

boards. In the end, that never happened. All we get is figures. But

:05:13.:05:19.

quotas of women, for which there is a case and a case against too, that

:05:20.:05:25.

was a government mandate. This is not, this is simply empowering

:05:26.:05:28.

shareholders who own the company to determine the pay of the people they

:05:29.:05:35.

hire. There is a strong moral argument for it. Strong economic

:05:36.:05:39.

argument. But the Tory backbenchers will not like this. The downside is

:05:40.:05:45.

that this is a world where companies are thinking about upping sticks to

:05:46.:05:49.

Europe. No, they say they are thinking of that. Not one has done

:05:50.:05:54.

it yet. Others have made massive investments in this country. But is

:05:55.:05:59.

it not an incentive for those making these threats to actually do it? In

:06:00.:06:06.

Europe, bankers' pay is now mandated by Brussels. It is a vivid way of

:06:07.:06:11.

showing you are addressing the issue of inequality. I think she will go

:06:12.:06:20.

with it, but let's move on to Ukip. I think we will get the result

:06:21.:06:25.

tomorrow. There are the top three candidates. Paul Nuttall, Suzanne

:06:26.:06:32.

Evans and on my right, John Reid Evans. One of them will be the next

:06:33.:06:36.

leader. Who is going to win? It is widely predicted to be Paul Nuttall

:06:37.:06:41.

and is probably the outcome that the Labour Party fears most. Paul

:06:42.:06:45.

Nuttall is a very effective communicator. He is not a household

:06:46.:06:49.

name, far from it, but people will begin to learn more about him and

:06:50.:06:55.

find that he is actually quite a strong leader. Can people Ukip

:06:56.:07:00.

together again after this shambolic period since the referendum? If

:07:01.:07:08.

anyone can, he can. And his brand of working collar, Northern Ukip is the

:07:09.:07:12.

thing that will work for them. Do you think he is the favourite? It

:07:13.:07:18.

would be amazing if he doesn't win. His greatest problem will be getting

:07:19.:07:22.

Nigel Farage off his back. He is going on a speaking tour of North

:07:23.:07:29.

America. A long speaking tour. Ukip won this EU referendum. They had the

:07:30.:07:32.

chance to hoover up these discontented Labour voters in the

:07:33.:07:37.

north, and all he has done is associated with Ukip with Farage.

:07:38.:07:41.

But Nigel Farage is fed up of Ukip and will be glad to be hands of it.

:07:42.:07:47.

The bigger problem is money. If it is Paul Nuttall, and we don't know

:07:48.:07:53.

the results yet, but he is the favourite, if it is him, I would

:07:54.:07:56.

suggest that that is the result Labour is frightened of most. To be

:07:57.:08:00.

honest, I think they are frightened of Ukip whatever the result.

:08:01.:08:04.

Possibly with good cause. The reason I qualify that is that what you call

:08:05.:08:11.

a shambles over the summer has been something that goes beyond Monty

:08:12.:08:14.

Python in its absurdity and madness. That calls into question whether it

:08:15.:08:20.

can function as a political party when you have what has gone on. The

:08:21.:08:25.

number of leaders itself has been an act of madness. In a context which

:08:26.:08:32.

should be fantastic for them. They have won a referendum. There is a

:08:33.:08:36.

debate about what form Brexit should take, it is a dream for them, and

:08:37.:08:40.

they have gone bonkers. If he can turn it around, I agree that he is a

:08:41.:08:44.

powerful media communicator, and then it is a threat to Labour. But

:08:45.:08:48.

he has got to show that first. Indeed. The by-election in Richmond

:08:49.:08:53.

in south-west London, called by Zac Goldsmith over Heathrow. Has it

:08:54.:08:58.

turned out to be a by-election about Heathrow, or has it turned into a

:08:59.:09:02.

by-election, which is what the Lib Dems wanted, about Brexit? We will

:09:03.:09:08.

know on Thursday. If the Lib Dems win, they will turn it into an EU

:09:09.:09:11.

referendum. It seems incredibly close now. The Lib Dems are swamping

:09:12.:09:17.

Richmond. They had 1000 activists there yesterday. That is getting on

:09:18.:09:20.

for 100th of the population of the place! If the Lib Dems don't manage

:09:21.:09:25.

to win on Thursday and don't manage to turn it into an EU referendum

:09:26.:09:29.

despite all their efforts, it will probably be a disaster for the

:09:30.:09:36.

party. What do you hear, Isabel? I hear that the Lib Dems have

:09:37.:09:41.

absolutely swamped the constituency, but this may backfire. I saw a bit

:09:42.:09:45.

of this myself, living in Witney, when the Lib Dems also swamped and

:09:46.:09:50.

people began to get fed up of their aggressive tactics. I understand

:09:51.:09:56.

that Zac Goldsmith is cautiously optimistic that he will pull this

:09:57.:10:02.

one off. Quick stab at the result? I don't know. But we are entering a

:10:03.:10:10.

period when by-elections are acquiring significant again. If the

:10:11.:10:14.

Lib Dems were to make a game, it would breathe life into that near

:10:15.:10:20.

moribund party like nothing else. Similarly, other by-elections in

:10:21.:10:23.

this shapeless political world we are in are going to become

:10:24.:10:28.

significant. We don't know if we are covering it live on Thursday night

:10:29.:10:31.

yet because we have to find at the time they are going to declare.

:10:32.:10:37.

Richmond are quite late in declaring, but if it is in the early

:10:38.:10:41.

hours, that is fine. If it is on breakfast television, they be not. I

:10:42.:10:46.

want to show you this. Michael Gove was on the Andrew Marr Show this

:10:47.:10:51.

morning. In the now notorious comment that I made, I was actually

:10:52.:10:55.

cut off in midstream, as politicians often. The point I made was not that

:10:56.:10:57.

all experts are that is nonsense. Expert engineers, doctors and

:10:58.:11:08.

physicists are not wrong. But there is a subclass of experts,

:11:09.:11:11.

particularly social scientists, who have to reflect on some of the

:11:12.:11:16.

mistakes they have made. And the recession, which was predicted that

:11:17.:11:19.

we would have if we voted to leave, has gone like a puff of smoke. So

:11:20.:11:26.

economic experts, he talks about. The Chancellor has based all of his

:11:27.:11:29.

forward predictions in this Autumn Statement on the economic expert

:11:30.:11:36.

forecasters. The Office for Budget Responsibility has said it is 50-50,

:11:37.:11:42.

which is the toss of a coin. But what was he supposed to do? You

:11:43.:11:46.

would ideally have to have a Budget that had several sets of scenarios,

:11:47.:11:52.

and that is impossible. Crystal ball territory. But you do wonder if

:11:53.:11:59.

governments are right to do so much of their fiscal projections on the

:12:00.:12:02.

basis of forecasts which turn out to be wrong. They have nothing else to

:12:03.:12:08.

go on. The Treasury forecast is to be wrong. No doubt the OBR forecast

:12:09.:12:13.

will prove not to be exact. As you say, they admitted that they are

:12:14.:12:16.

navigating through fog at the moment. But he also added that it

:12:17.:12:21.

was fog caused by Brexit. So Brexit, even if you accept that these

:12:22.:12:25.

forecasts might be wrong, is causing such a level of uncertainty. He put

:12:26.:12:32.

the figure at 60 billion. That could come to haunt him. He hasn't got a

:12:33.:12:43.

clue. He admitted it. He said, Parliament mandates me to come up

:12:44.:12:46.

with something, so I am going to give you a number. But I wouldn't

:12:47.:12:49.

trust it if I were you, he basically said. I agree with you. The man who

:12:50.:12:55.

borrowed 122 billion more off the back of a coin toss was Philip

:12:56.:12:58.

Hammond. It begs the question, what does that say about the confidence

:12:59.:13:02.

Philip Hammond has in his own government's renegotiation? Not a

:13:03.:13:08.

huge amount. I agree. Philip Hammond quoted the OBR figures. He basically

:13:09.:13:12.

said, this is uncertain and it looks bad, and on we go with it. It is a

:13:13.:13:18.

very interesting situation, he said. He was for Remain and he works in a

:13:19.:13:23.

department which regards it as a disaster, whatever everyone else

:13:24.:13:28.

thinks. I have just been told we are covering the by-election. We are

:13:29.:13:31.

part of the constitution. Jo Coburn will have more

:13:32.:13:33.

Daily Politics tomorrow And I'll be back here on BBC One

:13:34.:13:35.

next Sunday at 11. Remember - if it's Sunday,

:13:36.:13:39.

it's the Sunday Politics. to signify the Africans

:13:40.:14:13.

who were here. The story of Henry VIII

:14:14.:14:17.

and his six wives and into the private lives

:14:18.:14:43.

of Henry's six wives. My heart is filled with sorrow.

:14:44.:14:55.

I am not a fool.

:14:56.:14:59.

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