25/03/2012 Sunday Politics London


25/03/2012

Similar Content

Browse content similar to 25/03/2012. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

Afternoon, folks. Welcome to the Sunday Politics.

:00:41.:00:44.

A senior Tory Party treasurer quits, after the Sunday Times says he

:00:45.:00:49.

offered access to David Cameron in return for cash donations. We'll

:00:49.:00:54.

put the claims to the Tory Party's Deputy Chairman, in our Top Story.

:00:54.:01:01.

How did George Osborne's big day go so wrong? We hear worries from the

:01:01.:01:03.

Tory backbenches about the granny tax Budget.

:01:03.:01:07.

And, how long will this man make political hay out of the

:01:07.:01:09.

coalition's budget woes, before attention turns to Labour's own

:01:09.:01:16.

economic credibility problem? Well, not long actually. We'll be testing

:01:16.:01:25.

Ed Balls, on that in the Sunday And our political panel of the best

:01:25.:01:29.

and the brightest, here to deliver their Budget verdict, look at The

:01:29.:01:38.

Week Ahead. And tweet selflessly An allegation of sexual assault is

:01:38.:01:44.

made every three days in London by patients using London's mental

:01:44.:01:51.

health services, why is it so All that coming up over the next

:01:51.:01:54.

hour. But first, the news, with Adam Parsons.

:01:54.:01:57.

The Conservative Party's chief fundraiser has resigned, after he

:01:57.:02:00.

was secretly filmed offering access to the Prime Minister, in exchange

:02:00.:02:05.

for a substantial donation. Peter Cruddas made the remarks to

:02:05.:02:08.

undercover reporters from the Sunday Times. In the last hour,

:02:08.:02:11.

David Cameron said the way Mr Cruddas behaved was "totally

:02:11.:02:21.
:02:21.:02:27.

unacceptable". Mike Sergeant reports. �200,000. This led to the

:02:27.:02:34.

swift read in -- swift resignation of Peter Cruddas, it appeared to

:02:34.:02:39.

show him offering access to the heart of government. We will listen

:02:39.:02:43.

to you and we will put it into the policy committee at Number Ten.

:02:43.:02:47.

said he deeply regretted what he called his bluster, and said there

:02:47.:02:53.

was no question of donors influencing policy. What happened

:02:53.:02:58.

is completely unacceptable, this is not the way we look -- we raise

:02:58.:03:03.

money in the Conservative Party. It is quite right Peter Cruddas has

:03:03.:03:08.

resigned. Drawing a line under these headlines may not be easy

:03:08.:03:11.

with questions remaining about which donors may have been

:03:11.:03:20.

entertained by David Cameron. have been for Denner -- dinner in

:03:20.:03:23.

the Prime Minister's private apartment. Labour wants a full list

:03:23.:03:28.

of any donors who may have tried to influence policy committees.

:03:28.:03:33.

idea that policy is for sale is grotesque. I think that David

:03:33.:03:39.

Cameron is going to have to publish the list of policies that have been

:03:39.:03:48.

sent from these dinners, sent to this Cameron Committee. The Liberal

:03:48.:03:52.

Democrats say talks will begin soon on reforming the party system. Yet

:03:52.:03:58.

another attempt to reduce the role of big money in politics.

:03:58.:04:02.

The BBC has learned that relatives of the 17 people, allegedly killed

:04:02.:04:07.

compensation. Afghan officials and tribal elders told the BBC that

:04:08.:04:10.

families were paid $46,000 per person killed, and 10,000 dollars

:04:10.:04:13.

per person injured. The families have been told that some witnesses

:04:13.:04:17.

would be flown to the US, to give evidence against US Army Staff

:04:17.:04:20.

Sergeant Robert Bales, who was charged with 17 counts of murder on

:04:20.:04:24.

Friday. The prospect of strike by petrol

:04:25.:04:27.

tanker drivers has prompted the government to announce that

:04:27.:04:31.

soldiers are to be trained to take over their roles in the event of

:04:31.:04:34.

industrial action. The results of a strike ballot of 2,000 members of

:04:34.:04:39.

the Unite trade union are expected tomorrow.

:04:39.:04:42.

The former world darts champion, Jocky Wilson, has died at the age

:04:42.:04:45.

of 62, after suffering from a lung condition. Wilson dominated the

:04:45.:04:49.

world of darts in the 1980s, winning the world title twice, and

:04:49.:04:56.

was British champion four times. That's it. There's more news here

:04:57.:05:03.

on BBC One, at 6.35pm this evening. So, the Tory Party's top bagman,

:05:03.:05:06.

Peter Cruddas, resigned in the early hours of this morning, after

:05:06.:05:09.

The Sunday Times revealed that he offered wealthy lobbyists access to

:05:10.:05:13.

David Cameron and George Osborne, in return for large cash donations

:05:13.:05:18.

to Tory Party funds. Serious stuff. I'm joined by Michael Fallon,

:05:18.:05:23.

Deputy Chairman of the Conservative Party.

:05:23.:05:28.

Four access to the Prime Minister, his wife and the Chancellor, and

:05:28.:05:33.

the opportunity to raise issues with the Downing Street policy unit,

:05:33.:05:38.

or for donations. How long has this been going on? He was wrong to

:05:38.:05:42.

boast that it could happen, it is unacceptable anyone should have

:05:42.:05:47.

special access to the Prime Minister. That hasn't happened. We

:05:47.:05:51.

have made it absolutely clear we will look at any of the evidence

:05:51.:05:59.

the Sunday Times has and see if our rules have to be tightened further.

:05:59.:06:03.

But big donors to get the chance of to dine with the Prime Minister and

:06:03.:06:08.

Chancellor. They meet ministers, I am sure they will seek Ed Balls,

:06:08.:06:12.

but the big change now, what we have changed since the Labour

:06:12.:06:17.

government, is any meeting with a minister it is not only recorded

:06:17.:06:24.

but published. A big donor to the Tory Party can dine with the Prime

:06:24.:06:31.

Minister in his private quarters, can that the public? Yes, lists are

:06:31.:06:37.

published of guests at Chequers. Every minister has had to publish

:06:37.:06:41.

who they have had meetings with. That is a huge step forward from

:06:41.:06:46.

the days when Bernie Ecclestone gave the Labour Party �1 million,

:06:46.:06:50.

got the rules on a Formula One tobacco sponsorship changed. We

:06:50.:06:55.

have claimed that up. We hear her that the location of Downton Abbey

:06:55.:06:59.

is one of the venues for this kind of dinner. Ed Miliband was wrong

:06:59.:07:09.
:07:09.:07:13.

when he said... Look, meetings between the Prime Minister and

:07:13.:07:16.

businessmen are published quarterly. There is transparency now when

:07:16.:07:20.

there wasn't before. There is something called a leaders' group

:07:20.:07:26.

in your party, if you donate �50,000, you get access to leading

:07:26.:07:30.

figures from the Prime Minister down. Are these meetings

:07:30.:07:34.

documented? If meetings with ministers are documented and

:07:34.:07:40.

published. The Prime Minister? a businessman, yes that is

:07:40.:07:45.

published quarterly. For all political parties, they have

:07:45.:07:50.

dinners. Businessmen have meetings with ministers or the Prime Minster,

:07:50.:07:56.

that is published quarterly. All political parties meet businessmen,

:07:56.:08:05.

charities. Are these dinners, with major donors of the Tory Party, are

:08:05.:08:10.

they in the public domain? David Cameron is the first Prime Minister

:08:10.:08:13.

who has published lists of those who have been to stay with him at

:08:13.:08:22.

Chequers, who have had his was pitilessly -- hospitality. It is a

:08:22.:08:27.

matter of public record. If you are the deputy chair then, but you have

:08:28.:08:36.

never met the party's third biggest donor, and this chief fundraiser?

:08:36.:08:40.

Up I don't meet all of the donors. Donors don't have access to

:08:40.:08:45.

everybody at the top of the Tory Party. Peter Cruddas is a

:08:45.:08:51.

relatively new treasurer. He made a mistake. He has accepted that, he

:08:51.:08:56.

has resigned. We are looking at our rules and will tighten them up if

:08:56.:09:04.

necessary. I'm still not clear if I go see these names of donors. If

:09:04.:09:08.

you give us the details of how to find it, we will put it on our

:09:08.:09:13.

website. It wasn't supposed to be like this. After weeks of briefing

:09:13.:09:16.

and leaking, George Osborne's Budget should have been a carefully

:09:16.:09:19.

calibrated piece of political theatre. As it turned out, the

:09:19.:09:22.

combination of a controversial tax cut, and a measure quickly dubbed

:09:22.:09:25.

the "granny tax", delivered the worst press the coalition has

:09:25.:09:28.

received since its formation a little under two years ago. So, how

:09:28.:09:34.

did that happen? Giles Dilnot reports.

:09:34.:09:37.

Chancellor George Osborne clearly didn't anticipate the red box he

:09:37.:09:40.

was holding contained, amongst many measures, a political stink bomb.

:09:40.:09:45.

Had he, he might have held it even further from him. But now, the so-

:09:45.:09:49.

called "granny tax" has left a bad smell that's lingering. Why didn't

:09:49.:09:52.

a man with the reputation as a superb political strategist not see

:09:52.:10:00.

it coming? All roads lead to George Osborne.

:10:01.:10:05.

He is involved in every aspect of government policy and Tory decision

:10:05.:10:10.

making. And he is only a man capable of working 24 hours, seven

:10:10.:10:14.

days a week, they are not enough hours in the day for someone to

:10:14.:10:17.

undertake all the jobs he did. And he took his eye off the ball, I

:10:17.:10:22.

think. It is a balanced budget, but clearly there have been leaks, and

:10:22.:10:27.

those parts which haven't been beat will be very newsworthy. That is

:10:28.:10:33.

politics and news. Every Budget has its down side but in the helter-

:10:33.:10:36.

skelter of getting a budget for growth and jobs, something was lost

:10:36.:10:41.

in the detail. Over time, we will simplify the tax system for

:10:41.:10:44.

pensioners... Perhaps, trying to explain it better than what

:10:44.:10:47.

appeared to be disguising it, might have helped. It's left to

:10:47.:10:51.

backbenchers this weekend to have to reassure their older voters.

:10:51.:10:56.

None of us yesterday saw that coming. This morning, to wake up to

:10:56.:11:00.

that was a shock for everybody. Certainly for me. I have had some

:11:00.:11:04.

angry people on the phone this morning and had to deal with them.

:11:04.:11:11.

I hope they are happier now. perception is such, pensioners are

:11:12.:11:15.

going to be barely a king about this for quite a while and I would

:11:15.:11:22.

have preferred him to get the money from reduced public spending than

:11:22.:11:26.

raise this niggling amount of tax on pensioners. In Conservative-held

:11:26.:11:30.

Croydon Central, there's been a market for 730 years. And, when it

:11:30.:11:34.

comes to money, customers have a gut instinct for how good or bad

:11:34.:11:42.

something feels. All of the Conservative MPs we have

:11:42.:11:46.

spoken to have been at pains to point out this tax exemption is and

:11:46.:11:50.

stealing from your granny, that helping the highest paid with a tax

:11:50.:11:56.

cut isn't just gifts too rich friends. But it's a perception

:11:56.:12:01.

problem, the juxtaposition of these two items has caused bad news

:12:01.:12:06.

headlines, which can hurt in marginal seats and cost votes.

:12:06.:12:10.

I have actually voted Tory all my life and I decided, in view of what

:12:10.:12:14.

they have done in this Budget, I will have to look for an

:12:14.:12:20.

alternative. They always seem to do it to the poorer people. The people

:12:20.:12:25.

with less money. Pensioners. Disabled people. Which I think is

:12:25.:12:31.

unfair. I think it is a bit harsh. As well as this pensioner's tax, it

:12:31.:12:35.

is not good. I voted for this government and I feel betrayed.

:12:35.:12:38.

There's no general election tomorrow, but people here will help

:12:38.:12:42.

choose a London Mayor soon. And may lose sympathy with any party that

:12:42.:12:46.

gives an appearance of standing above their ordinary concerns.

:12:46.:12:54.

Michael Fallon is still with me. Justified to the 700,000 people who

:12:54.:13:00.

will retire next year, why they will be �323 worse off because of

:13:00.:13:05.

this Budget? No Budget is popular with everybody. We are lifting 24

:13:05.:13:11.

million people, raising their tax allowance, taking two million

:13:11.:13:17.

people out of tax altogether. Increasing the... Let me finish.

:13:17.:13:21.

Increasing the pension by over 5% this year. The biggest cash

:13:21.:13:26.

increase ever in the pension. When we are protecting all pensioners,

:13:26.:13:32.

whether they are better off or not, from prices, increases in earnings,

:13:32.:13:37.

it is not unreasonable to ask the better-off pensioners to know

:13:37.:13:42.

longer expect an increase in their higher allowance after April next

:13:42.:13:48.

year. The average increase will be around �80 a year. People are still

:13:49.:13:55.

�323 worse off. This is linked to Owen pen -- took inflation, the

:13:55.:14:01.

increase. This is a bad time to retire under this coalition. You

:14:01.:14:07.

lose �323 a year. You will not qualify for the new pension

:14:07.:14:12.

guaranteeing �140 a week which doesn't come in, until 2016. Your

:14:12.:14:17.

message is, don't retire under this government. That is not right. The

:14:17.:14:22.

new pension is coming in. We are the first government ever to give

:14:22.:14:26.

pensioners a guarantee that the pension each year will rise by the

:14:26.:14:32.

hire of prices, earnings or 2.5%. That has given them the biggest

:14:32.:14:36.

increase they have ever had. In addition, they keep their free

:14:36.:14:43.

benefits, TV licence, but travel, free prescriptions. Pensioners

:14:43.:14:47.

understand that their children, their grandchildren, R Strudwick at

:14:47.:14:54.

the moment, trying to make ends meet. We are helping 23 million

:14:54.:15:04.
:15:04.:15:05.

The government claims it will cost �100 million, cutting the top rate

:15:05.:15:13.

tax. Enormously uncertain estimates, agreed? No, because the claim we

:15:13.:15:20.

made is verified by the Independent office of budget responsibility.

:15:20.:15:23.

That office of budget responsibility said these are

:15:23.:15:27.

uncertain estimates. The also said it is a reasonable estimate. The

:15:27.:15:33.

direct cost is 100 million but we will get five times that back in

:15:33.:15:39.

things Labour never did by clamping down on stamp duty evasion and

:15:39.:15:46.

making sure the rich pay more. five times figure, it only comes to

:15:46.:15:54.

500 million because you assume there will only hundred million be

:15:54.:16:02.

100 million better off. There is no way you're measures will result in

:16:02.:16:06.

the rich paying more, they could be paying a lot less. These are big

:16:06.:16:11.

measures. There was a big increase in stamp duty, we are capping tax

:16:11.:16:19.

reliefs, we want the rich to pay more. The top rate of 50p didn't

:16:19.:16:23.

bring in the income it was supposed to bring in and there was a lot of

:16:23.:16:27.

evasion. This is the first government to crack down on evasion.

:16:27.:16:32.

They will only pay more if you're 100 million figure it is right. Why

:16:32.:16:37.

is a Tory lead government, which speaks for Middle Britain, allowing

:16:37.:16:44.

more and more people to be trapped into the 40p tax band? Over 3

:16:44.:16:49.

million when you came into power, over 5 million by the next general

:16:49.:16:55.

election - why? People will be earning more. The you are cutting

:16:55.:17:04.

the bound. No, that is not true. You are reducing the band. Yes.

:17:04.:17:08.

said no. Overall, it will be growing as the economy grows. We

:17:08.:17:15.

have to watch the effect of moving to the top band, but this Budget

:17:15.:17:22.

improves incentives at the bottom, those on the 20p band. Most people

:17:22.:17:26.

are at the bottom. Most people pay the bottom rate of tax. You are

:17:26.:17:32.

talking about the top 15%. I accept there is a problem when they move

:17:32.:17:37.

across the line, but we believe in cutting taxes. Just not if you are

:17:37.:17:42.

in the middle. Who has benefited most from the

:17:42.:17:47.

George Osborne budget, politically it looks like Labour, but will that

:17:47.:17:55.

turn into a transformation of the party's economic reputation? Labour

:17:55.:18:05.
:18:05.:18:06.

laid into the Budget would relish this week. The Chancellor is not

:18:06.:18:10.

Robin hoard, he is the Sheriff of Nottingham. As for jobs and growth,

:18:10.:18:18.

he could not give a Friar Tuck. party has a wider problem. The

:18:18.:18:22.

public still blames Labour more than the Coalition for the current

:18:22.:18:31.

spending cuts. Going into the Budget, Ed Miliband and Ed balls

:18:31.:18:40.

trailed the Tories in the balls. There is still some way to go in

:18:40.:18:44.

restoring Labour's reputation on the economy. The shadow chancellor

:18:44.:18:54.
:18:54.:18:55.

Ed Balls joins me now for the Sunday interview. You have been

:18:55.:18:59.

trooping round the TV studios since the Budget saying the Court of the

:18:59.:19:04.

50 pence rate will cost the Treasury �3 billion. You know as

:19:04.:19:10.

well as I do that is not true. it is completely true. It is in

:19:10.:19:19.

page 51 of the HMRC report. Face- saver 300,000 legitimate top rate

:19:19.:19:25.

payers will be given a tax cut, they get �40,000. They say they

:19:25.:19:30.

believe that if you cut taxes by 3 billion for those taxpayers, or the

:19:30.:19:35.

people currently avoiding tax will pay �2.9 billion, people from the

:19:35.:19:41.

Cayman Islands or whatever, that is your net figure. That latter is

:19:41.:19:46.

highly uncertain but it is a fact the legitimate talked -- top rate

:19:46.:19:53.

taxpayer will get a tax cut. the cost to the Treasury is not 3

:19:53.:19:59.

billion, it is accepted that when you change up and down the rate of

:19:59.:20:05.

tax, it changes people's behaviour. There is an argument of how much.

:20:05.:20:11.

For you to be right, you assume zero behaviour. What I said was, in

:20:11.:20:16.

the days after, the legitimate taxpayers currently paying tax are

:20:16.:20:21.

given, according to this report, a tax cut of �3 billion. The

:20:21.:20:29.

government hopes that is offset by this big behavioural effect. The

:20:29.:20:34.

behavioural effect is uncertain, as you just said to Michael Fallon.

:20:34.:20:40.

The money may come in. The there is one, so there for your 3 billion

:20:40.:20:47.

figure it is nonsense. It may be 2.5, it may be two. It is not my

:20:47.:20:54.

figure. The 3 billion figure next year it is the HMRC figure of the

:20:54.:21:01.

static cost. The static cost? they say other people paying tax

:21:01.:21:09.

may cough up. If it is such a good idea and you think the behavioural

:21:09.:21:13.

implications are zero. I didn't say that. What stop Jews from

:21:13.:21:21.

introducing a top rate tax on income on the super-rich? The thing

:21:21.:21:24.

which happened was the global financial crisis which opened up

:21:24.:21:29.

the deficit. Taxes have to go up and they were done in a fair way,

:21:29.:21:36.

including the top rate, which the government admitted was �3 billion.

:21:36.:21:41.

Why didn't you take it up? I would rather every tax rate was lower if

:21:41.:21:45.

we could afford it but it depends on your priorities. At a time when

:21:45.:21:50.

you have got to get the deficit down and the government is raising

:21:50.:21:57.

taxes, the middle class paying more tax, while the Tories gambling that

:21:57.:22:05.

a �3 billion tax cut to existing taxpayers will reap revenues?

:22:05.:22:10.

Filthy rich when you work in labour - why didn't you introduce a tax on

:22:10.:22:19.

the higher rate? People on higher incomes, incomers were going up, we

:22:19.:22:28.

raised stamp duty. We did it in the global financial crisis. You did it

:22:28.:22:37.

at the end of government, you were in power for years! Tax going up

:22:37.:22:42.

needs to be done in a fair way. The judgment was it was not the right

:22:42.:22:47.

thing to do at the time, then the world changed. You identified the

:22:47.:22:55.

problem when you were a minister. This is what you said. You said,

:22:55.:23:05.
:23:05.:23:12.

It is why it is very important to make sure on all the things you do,

:23:12.:23:17.

on financial regulation, on taxation, you do things in a way

:23:17.:23:22.

which does not undermine Britain's reputation in the world. The way in

:23:22.:23:26.

which David Cameron announced to the Daily Mail the stripping of

:23:26.:23:31.

Fred Goodwin's Night Hawk, the right decision, but that sent a

:23:31.:23:35.

terrible signal around the world. You were talking about not putting

:23:35.:23:39.

up salaries too much. You are saying they are very mobile people,

:23:39.:23:44.

and now you are saying that there is no behavioural impact when you

:23:44.:23:50.

put up taxes. I never said that. That is what you said. There at me

:23:50.:23:56.

say it again - There is a �3 billion tax cut to the richest

:23:56.:24:01.

300,000, 10,000 each on average. How much behavioural effect will

:24:01.:24:11.
:24:11.:24:13.

be? If it is zero, the net cost is 3 billion. The danger is the cost

:24:13.:24:20.

will be billions of pounds, which could have been used, if they

:24:20.:24:26.

haven't done this now, not to have the tax rise, which as you said is

:24:26.:24:28.

on middle and lower income pensioners. This is about

:24:28.:24:35.

priorities. Do you think this is a priority now when pensioners are

:24:35.:24:42.

being hit? The depends how much it costs. Exactly. It might not be

:24:42.:24:47.

your 3 billion but let's move on. Due to this Budget, the number of

:24:47.:24:54.

taxpayers paying 40p in the pound will reach 5 million by 2014, up

:24:54.:25:00.

from 3.7 now. It incorporates a lot of the squeeze to middle. How much

:25:00.:25:06.

should somebody burn before they start on the 40p? I don't think

:25:06.:25:11.

Michael Fallon really explain what is going on. A what should the 40

:25:11.:25:18.

pence band be? The 40 pence band that Labour will set out in our

:25:18.:25:24.

manifesto, we have set out for the hour tax rates and I will not pick

:25:24.:25:29.

out one in particular here three years out when I don't know the

:25:29.:25:33.

economic circumstances. So you don't know when the squeeze Middle

:25:33.:25:38.

should move into the higher tax band? I am worried when people are

:25:38.:25:42.

moving into that at �50,000 when they are about to lose their child

:25:42.:25:48.

benefit. Families who will lose potentially 50% of their disposable

:25:48.:25:53.

income because George Osborne has told them they are rich. Let's move

:25:53.:26:02.

on to pensions, you put great stock on the wisdom of the IFS. They

:26:02.:26:12.
:26:12.:26:15.

You have been scaremongering, haven't you? You have been

:26:15.:26:20.

frightening pensioners. What that quote does not reveal his it is

:26:20.:26:26.

actually the person who is currently in their late 50s, early

:26:26.:26:33.

60s, who lose five times more. They lose of the �300 a year because

:26:33.:26:37.

their lances removed entirely. I think people looked at the budget

:26:37.:26:42.

and said to George Osborne, why do you think pensioners should be hit

:26:42.:26:47.

in this way now? In few are poor pensioner, you are not affected.

:26:47.:26:52.

Most pensioners don't pay tax. you are a well-off pensioner, it

:26:52.:26:57.

doesn't affect you either. Even if you are an existing pensioner, it

:26:57.:27:04.

is only about �83 a year. You can agree or disagree but you have been

:27:04.:27:07.

scaring people and it is not threatening to ordinary pensioners

:27:07.:27:13.

at the moment. New pensioners, about to be pensioners, will be hit

:27:13.:27:20.

by �300. Existing pensioners will be hit by an average of about �83

:27:20.:27:27.

the year. He you're the man who put pensions or by 75p, you are part of

:27:27.:27:34.

the team who did it. I will admit my mistakes. Will George Osborne?

:27:34.:27:39.

The 75p was colossal mistake but we have much bigger real-terms

:27:40.:27:44.

increases in the pensions. The government is this assembling the

:27:44.:27:51.

pensions. They are cutting pensioners' incomes, and when the

:27:51.:27:55.

top rate tax has been cut for the richest, why are families and

:27:55.:28:01.

pensioners paying the price? government's case is that long-term

:28:01.:28:04.

interest rates are the best measure of monetary and fiscal policy

:28:04.:28:12.

credibility, do you agree? No, I don't. Why did you say this in

:28:12.:28:22.
:28:22.:28:26.

I made that speech in 2003. In a normal economy, that is true. As

:28:26.:28:30.

you know, when you get into a liquidity trap, when you have the

:28:30.:28:37.

kind of Japan or 1930s problems we have at the moment, when the

:28:37.:28:41.

government is resorting to quantitative easing, the interest

:28:41.:28:46.

rate becomes sticky. You can't go any lower but it is reflecting the

:28:46.:28:52.

weak state of the economy. I read the whole of your speech in 2004

:28:52.:28:59.

and you put no caviar at at all on that. He boasted about how our

:28:59.:29:04.

long-term rates were lower than Germany's for a period. And what

:29:04.:29:10.

were they at the time? Have you changed your mind? At the time,

:29:10.:29:17.

rates were at about 5%. If I had known we were about to be facing

:29:17.:29:20.

this global financial crisis, I would have made a difference beach.

:29:20.:29:24.

Governments around the world might have taken different decisions, so

:29:24.:29:29.

you are right to say in hindsight we didn't see this catastrophe. My

:29:29.:29:33.

argument with Dutch-born is he doesn't even understand it now.

:29:33.:29:37.

That is why he is not seeing these low-interest rates are the product

:29:37.:29:42.

of an economy not growing, stagnating. People wonder if you

:29:43.:29:47.

have learnt any lessons about spending because you spend more in

:29:47.:29:51.

the boom years and you want to spend more now as we are teetering

:29:51.:29:57.

on stagnation. Part of the problem is that George Osborne is spending

:29:57.:30:02.

more on unemployment. Wouldn't it be better on spending money into

:30:03.:30:07.

getting young people backing to work? The global financial crisis

:30:07.:30:11.

did not happen because... Is there any time when you would not spend

:30:11.:30:16.

more? When I was the Secretary of State for Education after the

:30:16.:30:23.

global financial crisis, I set out a billion pounds of spending cuts

:30:23.:30:26.

which Michael Gove attacked me for. If we were back in the good times

:30:26.:30:29.

again, would you still increase spending by more than the growth

:30:29.:30:33.

rate of the economy? That depends upon the priorities facing the

:30:33.:30:39.

country. People will look at a education system, transport

:30:39.:30:46.

system... So you would? At in some areas you would but in other areas

:30:46.:30:50.

you would spend less. What do you say to some Labour people who said

:30:50.:30:56.

to me, Ed Balls is a great shadow minister, he should definitely be

:30:56.:31:00.

in the shadow cabinet but he is tainted by being at the centre of

:31:00.:31:10.
:31:10.:31:14.

The opinion poll in the Daily Mail puts me ahead of George Osborne in

:31:14.:31:21.

public confidence at this stage of the economic and political cycle.

:31:21.:31:24.

There was one in the Evening Standard a few days ago. It is not

:31:24.:31:29.

about polls but whether you make the right arguments and people

:31:29.:31:33.

think you are tough enough to make the right decisions. For pensions,

:31:33.:31:40.

families and jobs, we have better arguments than George Osborne. In

:31:40.:31:45.

January, up I said in a fair way, stick to the public sector pay

:31:45.:31:51.

restraint, that was tough and the right thing to do. Different

:31:51.:31:55.

priorities for George Osborne. approaching 12.30. You're watching

:31:55.:32:01.

the Sunday Politics. Coming up in 20 minutes: I'll be looking at the

:32:01.:32:05.

week ahead with our political panel. Until then, the Sunday Politics

:32:05.:32:15.
:32:15.:32:23.

Hello and welcome from us. In the capital, an allegation of sexual

:32:23.:32:28.

assault is made every three days involving patients using London's

:32:28.:32:31.

mental health services. We he claims not enough is being done to

:32:31.:32:36.

protect them. With us for the duration, David

:32:36.:32:46.
:32:46.:32:49.

Lambie, MP for Tottenham. And Conservative MP for Chelsea Greg

:32:49.:32:56.

Hands. . The mayor of London is an

:32:56.:33:00.

effective champion for the city he runs so well. We will work with him

:33:00.:33:05.

on plans this summer to go on investing in London Transport,

:33:05.:33:09.

lengthening commuter trains, extending the Underground and

:33:09.:33:15.

exploring new river crossings in east London. The blocks of Norway's

:33:15.:33:19.

from the Chancellor over what he is doing for London. What does it add

:33:19.:33:24.

up to? The is a very good Budget for

:33:24.:33:31.

London, good for business and jobs and tax payers. The 3 million

:33:31.:33:37.

taxpayers in London will be getting a tax cut. 97,000 Londoners will be

:33:37.:33:42.

taken entirely out of the income tax system. A very good Budget for

:33:42.:33:51.

London. It is a good budget -- Budget for some, but not for

:33:51.:33:56.

pensioners, not for the unemployed, there was very little for them. And

:33:56.:34:03.

I think people will recognise, yes, the personal allowance is good news.

:34:03.:34:07.

But if you see inflation going up, the cost of living going up, travel

:34:08.:34:13.

fares going up, this is a bad Budget. The background is in

:34:13.:34:18.

dealing with Labour's appalling economic legacy which has a massive

:34:18.:34:24.

impact on the Londoners. The worst Budget deficit in the G20, the

:34:24.:34:30.

deepest recession since the 1930s. This Budget should be seen in

:34:30.:34:37.

context. Fiscally neutral, as well. I have got to say that is wearing

:34:37.:34:43.

thin. Boris made eight interventions to get that tax

:34:43.:34:48.

reduced from 50% for the very richest Londoners, to 45%. He has

:34:48.:34:56.

made no intervention on tax credits, the NHS, unemployment. We see where

:34:56.:35:04.

his priorities are. Why is he taking fares up by 44%? The problem

:35:05.:35:09.

is Ken Livingstone is not credible on fares or on anything, nobody

:35:09.:35:18.

trusts him. Going back to the 50% - - 50p tax rate. It is important

:35:18.:35:27.

that London is competitive. And London has had a higher rate of top

:35:27.:35:35.

tax rate. We have to compete as an open, international city. Was Boris

:35:35.:35:40.

Johnson right, he kept on saying, bring this tax break down. So was

:35:40.:35:45.

he right? And number of voices are calling for the 50 pence rate to be

:35:45.:35:50.

brought down, Boris was one of them. He recognises London needs to be

:35:50.:35:56.

competitive. Boris also intervened on making sure there is funding for

:35:56.:36:00.

infrastructure in London. Another big announcement George Osborne

:36:00.:36:05.

made on Wednesday. Extra money for the Enterprise Zone, extra money

:36:05.:36:13.

for cycling. There is �80 million, money is tight, that money has been

:36:13.:36:20.

found, public Bunny, to unlock private money in the east end. If

:36:20.:36:30.
:36:30.:36:32.

focusing on jobs and growth -- public money. We have real poverty

:36:32.:36:37.

in north east London. Nothing in this Budget, no interventions from

:36:37.:36:43.

the london mayor. And stamp duty going up on these properties?

:36:43.:36:48.

is a good thing. To spend your effort on reducing a tax for the

:36:48.:36:53.

very richest seems to me to be bizarre, when Londoners are facing

:36:53.:37:02.

rising inflation. The Institute of Fiscal Studies has said all this.

:37:02.:37:07.

That is not valid. Actually, it is 3 million plunders getting a tax

:37:07.:37:14.

cut, due to the increase in personal allows up to �9,200. That

:37:14.:37:20.

is the big news in this Budget for London. Pensioners know they will

:37:20.:37:29.

be a lot poorer. We have learnt an allegation of rape or sexual

:37:29.:37:32.

assault involving patients using mental health services in the

:37:32.:37:36.

capital is made every three days. Those involved are victims and

:37:36.:37:41.

perpetrators. Mental health charities say this is likely to be

:37:41.:37:45.

an underestimate. Genevieve Butler suffered from

:37:45.:37:49.

serious mental health problems, she was admitted to Gordon Hospital in

:37:49.:37:55.

her mid-twenties. She was sexually assaulted and physically assaulted

:37:55.:37:59.

while at the hospital, by other patients. I know remarkably little

:37:59.:38:08.

about it, because when I was told about it by my daughter, I thought,

:38:08.:38:16.

I thought she was potty. And politely disbelieved her. It was

:38:16.:38:22.

only later that I realised it was actually true. Genevieve went on to

:38:22.:38:26.

kill herself, jumping from a 4th floor walkway in another London

:38:26.:38:31.

hospital. I think it is fair to say the Gordon Hospital was the origin

:38:31.:38:35.

of her suicidal thoughts. approached the trust which runs the

:38:35.:38:41.

hospital but they declined to comment. Sunday politics has learnt

:38:41.:38:47.

similar allegations of abuse are far from uncommon. We have obtained

:38:47.:38:50.

figures from nine mental health trusts. In the last four years,

:38:50.:38:55.

they have been 500 allegations of sexual assault. The trust says it

:38:55.:39:04.

knows of at least over 100 allegations actually happened. Only

:39:04.:39:12.

two cases resulted in prosecution. Particularly if people have a

:39:12.:39:17.

history of psychiatric issues, may be learning disabilities, it is

:39:17.:39:22.

tougher for their voices to be heard and for the CPS to believe

:39:22.:39:26.

they have a solid case which will stand up if it comes to court.

:39:26.:39:31.

Problems commonly cited for low conviction rates may also mean the

:39:31.:39:35.

victims of abuse involving mental health patients do not come forward.

:39:35.:39:42.

There may be many more cases than reported. All sorts of things like

:39:42.:39:46.

shame and guilt. People may feel was possible for the actions of

:39:46.:39:50.

others. They may be embarrassed. A difficult hurdle to get over it in

:39:50.:39:54.

talking to someone. That is true with sexual abuse issues anyway

:39:55.:39:59.

even outside of institutional settings. Doubly difficult if you

:39:59.:40:04.

are going through a psychiatric crisis. Could a lack of data be

:40:04.:40:08.

symptomatic of a culture where complaints by patients are not

:40:08.:40:13.

taken seriously? In a case of Genevieve Butler, although her case

:40:13.:40:19.

has been looked at by officials and NHS management, it has not been to

:40:19.:40:22.

the family satisfaction. They have been asking for an independent

:40:22.:40:29.

investigation. They are acting with total impunity at the moment. And I

:40:29.:40:36.

think that if we want an NHS that we can rely on, we have got to

:40:36.:40:41.

speak out, and make those NHS managers properly accountable.

:40:41.:40:47.

Order, order. The health service was big news this week as the NHS

:40:47.:40:50.

Bill finally passed through Parliament. What impact will it

:40:50.:40:53.

have on this issue of accountability? But other parts of

:40:53.:40:59.

the NHS, mental health will now be offered to more private providers,

:40:59.:41:04.

bad news for some. The issue is to do with multiple providers coming

:41:04.:41:09.

in, many of whom are going to have a commercial imperative as well as

:41:10.:41:14.

a health imperative. And so the likelihood of transparency is going

:41:14.:41:20.

to be much reduced. Professionals however moral and ethical they

:41:20.:41:24.

might be barred going to have organisations which have got

:41:24.:41:28.

particular views about how they are going to move forward. It will be

:41:28.:41:32.

much more in the interests of these organisations to keep things in

:41:32.:41:37.

House and not to be open about serious problems. The Department of

:41:37.:41:47.
:41:47.:42:18.

Joining me, the chief executive of the charity, mine. -- Mind. Are

:42:18.:42:23.

those figures is a prize it to you? It is extremely concerning there is

:42:23.:42:27.

such a high level of numbers being reported. It is incredibly

:42:27.:42:31.

important for people who are extremely vulnerable, to be in a

:42:31.:42:35.

place where they can be treated. They can only be treated if they

:42:35.:42:42.

feel safe. Any number above zero is a number too high. I think it is

:42:42.:42:47.

worth recognising trusts have done a lot of work. But we don't seem to

:42:47.:42:52.

be seen these figures on a routine and regular basis, and that would

:42:52.:42:58.

help to understand the scale of the problem. Publicised? So we can

:42:58.:43:03.

tell? Do think they should routinely publish? Yes, it would

:43:03.:43:08.

make a lot of sense for these figures to be me -- to be made

:43:08.:43:16.

readily available, so that patients and their families can be confident

:43:16.:43:22.

that their loved ones are being treated in a safe area. Would you

:43:22.:43:26.

accept that this was happening more and more? Is there any evidence for

:43:26.:43:31.

that? Is this an increase? I can only speak about what is happening

:43:31.:43:36.

in our trust. From the information, there hasn't been an increase in

:43:36.:43:41.

recent years. What has changed his hour reporting structures have

:43:41.:43:45.

changed significantly. We have encouraged a culture within the

:43:45.:43:50.

organisation whereby staff are encouraged to report instances

:43:50.:43:53.

which are properly investigated. If that happens in all other mental

:43:53.:43:59.

health trusts across the country. I would gigawatt Paul has said, to

:43:59.:44:09.
:44:09.:44:11.

ensure our hospital wards are safe -- I would echo what. What

:44:11.:44:16.

difficulties are faced here, about being able to prove an allegation

:44:16.:44:22.

is true? Is it the suggestion, or is it the case that many

:44:22.:44:26.

allegations may not be, or there is a presumption they might not be, it

:44:26.:44:33.

is a complex area. In the past, there were times when it was

:44:33.:44:37.

presumed if a patient was unwell and made an allegation, that

:44:37.:44:42.

allegation was probably not made on fact. There has been a shift and we

:44:42.:44:48.

now take allegations seriously no matter the condition of the patient.

:44:48.:44:54.

It will be investigated and reported. Many trusts have employed

:44:54.:44:57.

police liaison officers in conjunction with the Metropolitan

:44:57.:45:03.

Police. Police officers working in- patient units to actually meet the

:45:03.:45:07.

patients very quickly and investigate allegations promptly.

:45:07.:45:13.

That has seen big benefits. that been going far enough? The

:45:13.:45:16.

criminal justice system and police are dealing with these issues. Is

:45:16.:45:26.
:45:26.:45:32.

that been done more sensitively and It is proving difficult, and a

:45:32.:45:36.

greater degree of understanding is important. We know that when people

:45:37.:45:40.

with mental health problem report as a victim of crime, they are much

:45:40.:45:45.

less likely to be taken seriously and believed. The criminal justice

:45:45.:45:53.

system is taking this more have moved far enough to be able to

:45:53.:45:56.

make sure prosecutions can probably take place. Have you got the

:45:56.:46:06.

guidance and support from the NHS on how to deal with it? There is a

:46:06.:46:11.

lot of pressure from the NHS. There is a requirement we report these

:46:11.:46:18.

when it happens. We know NHS London had a backlog of such things until

:46:18.:46:22.

recently so perhaps were not learning the lessons quickly enough.

:46:23.:46:27.

That was the case but things have improved significantly. Now there

:46:27.:46:32.

are strict timescales and we need to submit comprehensive report to

:46:32.:46:37.

NHS London for them to look at and consider. If those reports are not

:46:37.:46:43.

up to scratch, we are told so and we investigate. You will not have

:46:43.:46:46.

been aware of the detail and we can't compare these figures with

:46:46.:46:50.

the previous years, but does it raise concerns the you about the

:46:50.:46:56.

safety of people receiving help either in institutions or in the

:46:56.:47:03.

community? I think it does raise concerns. Can recommend Sunday

:47:03.:47:06.

politics for doing the investigation because this is an

:47:06.:47:13.

area which is not in the public eye as much as it should be. I happen

:47:13.:47:18.

to know West London Trust, where I represent in Fulham, is introducing

:47:18.:47:23.

reforms and it is looking at things. That is to be welcome, so I think

:47:23.:47:33.
:47:33.:47:37.

it needs to be taken seriously. Your mental health trust?

:47:37.:47:42.

economically pressed times, you do see more mental health, and it

:47:42.:47:45.

remains in our country the Cinderella service without the

:47:45.:47:49.

focus and without the investment needed. Some of what we are seeing

:47:49.:47:55.

here is quite old health stock, certainly that is the case in my

:47:55.:47:59.

part of London, where you don't quite have the appropriate

:47:59.:48:03.

facilities so that people can feel private and comfortable in this

:48:03.:48:09.

therapeutic environment. Thank you for coming in. What else has been

:48:09.:48:17.

happening in the City this week? He was a round of in 60 seconds. --

:48:17.:48:22.

here is a round-up. The race for City Hall started this

:48:22.:48:27.

week with all the main candidate out and about across town on the

:48:27.:48:32.

first lap of the election campaign. Outer London is the potential motor

:48:32.:48:38.

of the economy. There are hundreds of thousands of businesses here.

:48:38.:48:42.

it can be a clear choice. We have someone like myself with a long-

:48:42.:48:46.

term commitment as opposed to someone else who was using it as a

:48:47.:48:51.

stepping-stone to being the leader of the Tory party. I don't want

:48:51.:48:56.

that, I want to do what is right London. I want to talk about the

:48:56.:49:01.

policies that will make London a much better place. It is important

:49:01.:49:05.

there are a lot of candidates, and particularly the Green Party

:49:05.:49:09.

because we discuss things that have long-term consequences for London

:49:09.:49:16.

and everybody living here. Opinion polls show Boris Johnson leading

:49:16.:49:24.

Ken Livingstone by eight percentage points.

:49:24.:49:30.

David Lambie very closely involved with Ken Livingstone's campaigned -

:49:30.:49:33.

do you think claims about his own tax arrangements have damaged him?

:49:33.:49:39.

A lot of the last few weeks has been dominated by Celia coming from

:49:39.:49:43.

the Conservative team. I suspect over the next six weeks, Londoners

:49:43.:49:51.

will be concentrating hard on the issues, on crime, mainstream things.

:49:51.:49:55.

Will you attribute claims to how Boris Johnson appears to have

:49:55.:50:00.

pulled away again in the polls? suspect the polls will be up-and-

:50:00.:50:10.
:50:10.:50:16.

down. Most Londoners would say this is close. He should not have been

:50:16.:50:21.

taking checks and banking them on his behalf. We should not be having

:50:21.:50:26.

a conversation about Ken Livingstone's tax. We should be

:50:26.:50:32.

talking about why Londoners are paying high fares, crime, policing.

:50:32.:50:36.

Why are you having conversations and the prime minister talking

:50:37.:50:40.

about personal tax arrangements? is saying one thing and doing

:50:40.:50:45.

another. Ken Livingstone over the years has attacked aggressive tax

:50:45.:50:49.

avoidance, yet that is precisely what he has been doing by setting

:50:50.:50:58.

up this company to channel his earnings to avoid paying income tax.

:50:58.:51:03.

You said about overseas companies, this is paying a lesser rate

:51:03.:51:08.

through the corporation. It is tax avoidance. He has attacked people

:51:08.:51:14.

for avoiding tax, very clearly, yet he himself has run his own affairs

:51:14.:51:18.

to avoid paying income tax and instead booking it through a

:51:18.:51:25.

company. I think he continues to have serious questions to answer. I

:51:25.:51:28.

think Ken Livingstone will continue to have very serious questions to

:51:28.:51:38.

answer. I said this is a side issue. The issue is Boris taking 250,000

:51:38.:51:43.

from the Telegraph. Let's get back to what London has care about,

:51:44.:51:48.

which is rising inflation, about whether it is right to spend your

:51:48.:51:56.

effort on a 50% cut for the richest. About crime, about what Boris...

:51:56.:52:02.

I'm afraid we are running out of time. Thank you to both of you. You

:52:02.:52:07.

can C-list of everyone who has been declared so far, but now back to

:52:07.:52:17.
:52:17.:52:21.

Andrew. A looming strike, who cares if the

:52:21.:52:27.

MPs are rough on their break this week, there are juicy issues to

:52:27.:52:35.

savour in the week ahead. Isabel, political journalist of the year,

:52:35.:52:40.

which I know you got after you started appearing on this programme.

:52:40.:52:46.

Where does this cash for access story go? That is clearly dire for

:52:46.:52:52.

the Tories. Peter Cruddas sounds like a barrow boy. A few weeks ago,

:52:52.:52:57.

Nick Clegg launched a new bid to sort out party funding no one took

:52:57.:53:01.

any notice, but there is a process under way and I think that will be

:53:01.:53:09.

taken a lot more seriously. We had cash for higher, cash for

:53:09.:53:17.

amendments, Peers, cash in secret from the Labour donor Mr Abrams,

:53:17.:53:22.

and now we have got this, which is huge. It is bad all round, isn't

:53:22.:53:27.

it? Absolutely, and it raises questions for both sides on party

:53:27.:53:32.

funding. What is interesting with this one is the emotional intensity

:53:32.:53:37.

when you can see the bigger picture. That will spread on YouTube in a

:53:37.:53:42.

way that it won't in other areas. am still interested to know if the

:53:42.:53:47.

names of these dinners are really published, are you? The response

:53:47.:53:54.

was ambiguous as it went on. The problem is not a lack of will, it

:53:54.:53:59.

is that they genuinely can't agree what to do about it. In November,

:53:59.:54:04.

Sir Christopher Kelly suggested state support for the parties, and

:54:04.:54:09.

even the Lib Dems thought that was a bad idea. Let's move on to the

:54:09.:54:14.

Budget because we are short of time today. The worst headlines any

:54:14.:54:19.

Chancellor has had in recent memory, bad again this week, and the polls

:54:19.:54:25.

giving him a hit as well. What happened to this great political

:54:25.:54:29.

tactician called George Osborne? has been a tactical failure, and he

:54:29.:54:32.

could have made the case for getting more money out of

:54:32.:54:38.

pensioners and it would have worked but he didn't. Not only would

:54:38.:54:44.

independent experts have backed him, but many pensioners have kids and

:54:44.:54:50.

they would have backed him. The idea is you take a hit now so you

:54:50.:54:58.

don't take the hit closer to 2015. A There is more mileage in this for

:54:58.:55:04.

Labour, isn't there? Absolutely, but I agree first of all that this

:55:04.:55:09.

is the government that is prepared to take tough decisions and there

:55:09.:55:12.

is a real question about pensions in this country. They are

:55:12.:55:15.

completely unaffordable and it would have been a bold decision to

:55:15.:55:21.

say we need to have a conversation about pensioners but let's not

:55:21.:55:29.

present it as an over- simplification. By existing

:55:29.:55:33.

pensioners, they lose but it is just a little bit and they are not

:55:33.:55:38.

the poorest. The actual loss for individual pensioners is pretty

:55:38.:55:43.

negligible. Many don't pay tax at all and the saving for the

:55:43.:55:47.

government is something like 3 billion. I think this was a

:55:47.:55:52.

presentational failure rather than an economic political failure.

:55:52.:55:57.

King back, what do you think people will say? We are in the heat of the

:55:57.:56:02.

moment and we get wrapped up on things like the granny tax, none of

:56:02.:56:08.

which may be playing. What do you think we will be talking about?

:56:08.:56:14.

this the Budget we will remember for growth, or will we remember it

:56:14.:56:18.

for the 45p tax cut? There are some questions Labour should be asking -

:56:18.:56:22.

the issue is not just about whether we can get growth back but what

:56:22.:56:27.

type of growth will we get back? Ed Balls presided over time when it

:56:27.:56:32.

was growth that was just City-based, not for people in the middle, just

:56:32.:56:37.

at the top, and how well they do things differently? Let's move on

:56:37.:56:42.

to the final thing we are talking about, it looks like the tanker

:56:42.:56:47.

drivers will be voting to go on strike tomorrow. Is this government,

:56:47.:56:53.

whose members are entirely on bloodied in industrial disputes -

:56:53.:56:57.

the winter of discontent is as far back for them as the general strike

:56:57.:57:04.

- are they capable of taking on powerful union? They have trained

:57:04.:57:08.

up 400 army personnel to make sure there are no queues at petrol

:57:08.:57:12.

forecourts and the contingency planning has been meticulous. There

:57:12.:57:16.

was some internal debate about whether to publicise this plant of

:57:16.:57:19.

bringing in the army because they don't want to prompt panic-buying

:57:20.:57:25.

but I don't think this will descend into scenes of chaos. Will they run

:57:25.:57:32.

at the Sir -- the first signs of gunfire? They do have memories of

:57:32.:57:40.

the fuel protests in 2000 and they have done that repertory work.

:57:40.:57:45.

Labour will be asked if they backed this strike. At absolutely, and

:57:45.:57:48.

there is a question about whether we will see a series of strikes

:57:49.:57:55.

going ahead, is this going to set a precedent about what will happen in

:57:56.:58:00.

the future? If you show any sign of weakness, they hold the government

:58:00.:58:06.

in contempt. Let's talk about it next weekend, if we can make it to

:58:06.:58:11.

the studio. That is all for this week. Jo Coburn will be back

:58:11.:58:17.

Download Subtitles

SRT

ASS