08/12/2013

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:00:39. > :00:44.The morning, folks. Welcome to the Sunday Politics. First, some Sunday

:00:45. > :00:49.morning cheer, if you are an MP, that is. You are set to get an 11%

:00:50. > :00:55.pay rise. The Chancellor has gone from zero to hero for some, who

:00:56. > :01:00.credit him for turning the economy around. We will be taking a fine

:01:01. > :01:05.tooth comb to his Autumn Statement. Should this man get a pay rise?

:01:06. > :01:12.Complete denial about the central facts... And 11% pay rise for Ed

:01:13. > :01:16.Balls? He was certainly working hard to be heard last Thursday. We will

:01:17. > :01:24.be reviewing his performance. What about this man? We will be joined by

:01:25. > :01:32.In the South, water everywhere but in Berks,

:01:33. > :01:43.had on the capital, its politics and those who met him.

:01:44. > :01:49.With me, three scruffy eternal students. They would celebrate if

:01:50. > :01:53.they achieved a C+. But they are all we could afford and there will be no

:01:54. > :01:56.pay rise for them. They will be glued to an electronic device

:01:57. > :02:02.throughout the programme and if we are lucky they might stop there

:02:03. > :02:06.internet shopping and tweet something intelligent. But don't

:02:07. > :02:10.hold your breath. Janan Ganesh, Helen Lewis and Nick Watt. Last

:02:11. > :02:14.week, storms were battering Britain, the East Coast was hit by the worst

:02:15. > :02:17.tidal surge in more than a century, thousands of people had to be

:02:18. > :02:22.evacuated and Nelson Mandela died. The downed the news agenda was the

:02:23. > :02:28.small matter of George Osborne's Autumn Statement. His giveaways, his

:02:29. > :02:37.takeaways and his first opportunity to announce some economic cheer

:02:38. > :02:48.It might be winter outside, but in the studios it is awesome. Autumn

:02:49. > :02:51.Statement time. -- autumn. This is a moment of TV history. Normally when

:02:52. > :02:55.the Chancellor delivers these statements, he has to say the

:02:56. > :03:00.economy is actually a lot worse than everyone predicted. This time, he

:03:01. > :03:01.can stand up and say the economy is better than everybody predicted A

:03:02. > :03:06.better than everybody predicted. A lot better.

:03:07. > :03:15.Britain is currently growing faster than any other major advanced

:03:16. > :03:20.economy. Faster than France, which is contracting, faster than Germany,

:03:21. > :03:24.faster even than America. At this Autumn Statement last year, there

:03:25. > :03:28.were repeated predictions that borrowing would go up. Instead,

:03:29. > :03:32.borrowing is down, and down significantly more than forecast.

:03:33. > :03:38.But George Osborne said the good numbers still mean more tough

:03:39. > :03:42.decisions. We will not give up in giving in our country's debts. We

:03:43. > :03:45.will not spend the money from lower borrowing. We will not squander the

:03:46. > :03:54.harder and games of the British people. -- hard earned gains. In

:03:55. > :04:00.other news, further cuts to government departments. The state

:04:01. > :04:04.pension age will increase in the 2040s, affecting people in their 40s

:04:05. > :04:08.now. There were some goodies, like discounted business rates for small

:04:09. > :04:12.businesses, free school meals for infants, favoured by the Lib Dems,

:04:13. > :04:16.and those marriage tax breaks below that by the Tories. But, as with all

:04:17. > :04:21.big fiscal events, it takes a while for the details to sink in.

:04:22. > :04:27.The marriage tax allowance is a long-standing commitment that he

:04:28. > :04:32.could not abandon. It does help those families were only one goes

:04:33. > :04:36.out to work. It does not go to higher rate taxpayers, I don't

:04:37. > :04:39.think. Perhaps it does, I can't remember. It makes me feel guilty, I

:04:40. > :04:45.am taking them very seriously, but... Shall I give you them? There

:04:46. > :04:50.is the Autumn Statement. Have that, a free gift from the Sunday

:04:51. > :04:56.Politics. Is there no limit to the generosity of the BBC?

:04:57. > :05:02.In the meantime, Twitter was awash with unflattering pictures of a

:05:03. > :05:09.red-faced Ed Balls giving his response. Some pictures were more

:05:10. > :05:13.than flattering than others. Is Ed Balls OK? Should we be worrying

:05:14. > :05:18.about him? He looks very stressed. There is nothing to worry about in

:05:19. > :05:21.terms of Ed balls and his analysis. He and Ed Miliband have been setting

:05:22. > :05:28.the pace in terms of the focus on the living standards crisis. It was

:05:29. > :05:32.very telling that there was not a mention of living standards last

:05:33. > :05:37.time, we got 12 mentions this time. Never mind what he was saying, by

:05:38. > :05:43.now everybody has a copy of the all-important paperwork. Time to

:05:44. > :05:47.hand over to number cruncher extraordinaire Paul Johnson from the

:05:48. > :05:50.Institute for Fiscal Studies. Of course it means that things are

:05:51. > :05:54.significantly better this year and next than we thought they would be

:05:55. > :05:57.just nine months ago. That has got to be good news. But it is also

:05:58. > :06:01.worth looking at the growth figures a few years out. They have been

:06:02. > :06:10.revised down a little bit. The reason is, the view of the office of

:06:11. > :06:13.budget response ability is that the long run has not really changed very

:06:14. > :06:16.much. We are getting a bit more growth now, but their view is that

:06:17. > :06:19.it is at the cost of a little bit of the growth we will expect in the

:06:20. > :06:24.years after the next general election. As the day draws to a

:06:25. > :06:27.close, the one place there has definitely been no growth is the

:06:28. > :06:34.graphics budget of my colleague, graphics budget of my colleague

:06:35. > :06:39.Robert Preston. It's as good as it gets these days, I don't think the

:06:40. > :06:47.viewers will mind. It's very Sunday Politics, if I might say. That is

:06:48. > :06:52.very worrying. Was this a watershed for George

:06:53. > :06:56.Osborne? Was it a watershed for Ed Balls? We can all make the case that

:06:57. > :07:00.it is the wrong sort of recovery, a consumer led recovery. People are

:07:01. > :07:04.spending money they don't have. At the end of the day, it for George

:07:05. > :07:09.Osborne, it is growth, the first time he has been able to talk about

:07:10. > :07:13.growth. It allows him to control the baseline, the fiscal debate for the

:07:14. > :07:17.next generation. For Ed Balls, nearly not a good performance. But

:07:18. > :07:21.don't write this man off. Judging by Twitter, Iain Dale, no friend of it

:07:22. > :07:30.all is, said he did a good interview this morning on a rival TV channel.

:07:31. > :07:33.I feel the fact that the Tories hate Ed Balls so passionately is probably

:07:34. > :07:40.a good reason that they should hang onto him, in that Labour sends his

:07:41. > :07:46.effectiveness. May be the Tories hope that they hold on to him as

:07:47. > :07:49.well? A lot of people shouting at someone and mocking their speech

:07:50. > :07:52.impediment, that is politics that doesn't make me want to engage. The

:07:53. > :07:57.takeaway will be lots of people thinking that none of these people

:07:58. > :08:01.are people they like. Who is the main heckler on the Labour front

:08:02. > :08:06.bench West remarked I suppose he can't cast any stones. It would be

:08:07. > :08:09.easier to sympathise with him, if it were not that David Cameron went

:08:10. > :08:15.through a similar situation and John Bercow did not step in to stop the

:08:16. > :08:23.wall of noise. It was guaranteed a good happen to a Labour politician.

:08:24. > :08:30.It's painful to remove him because he had a Parliamentary following and

:08:31. > :08:35.he will kick up a fuss. I think he's much more pragmatic on issues like

:08:36. > :08:40.business than Ed Miliband. I'm told he wasn't keen on the energy price

:08:41. > :08:45.freeze. The problem with Ed Balls, to have the first words that you

:08:46. > :08:50.say, the Chancellor is in denial, after he is presiding over growth,

:08:51. > :08:54.it means nobody is listening to you. Who would replace him? Certainly not

:08:55. > :08:58.Alistair Darling, the side of the referendum and even afterwards. Ed

:08:59. > :09:01.Balls did get a roasting in the press and on Twitter. He seemed to

:09:02. > :09:05.disappear from public view following the Autumn Statement. But a little

:09:06. > :09:08.bird tells me he managed one interview this morning before he

:09:09. > :09:12.went off to an all-important piano recital this afternoon. Watch out,

:09:13. > :09:16.Jools Holland, he could be after your job. How bad was his

:09:17. > :09:22.performance on Thursday? Here is the Shadow Chancellor in action. The

:09:23. > :09:28.Chancellor is incomplete denial about the central facts that are

:09:29. > :09:38.defining this government in office. He used to say he would balance the

:09:39. > :09:44.books in 2015. Now he wants us to congratulate him for saying he will

:09:45. > :09:51.do it in 2019, Mr Speaker. With this government, it is clearly not just

:09:52. > :09:58.the badgers that move the goalposts. No mention of the universal credit

:09:59. > :10:07.in the statement. IDS, in deep shambles, Mr Speaker. Chris Leslie

:10:08. > :10:14.is the Shadow Chief Secretary to the Treasury. He is Ed Balls's deputy,

:10:15. > :10:19.in other words. Why do more and more of your Labour colleagues think that

:10:20. > :10:23.your boss is below the water line? I'm not sure I accept the premise of

:10:24. > :10:29.your suggestion. I don't think my colleagues believe that George

:10:30. > :10:32.Osborne has a superior argument. I think Ed Balls will certainly trying

:10:33. > :10:36.his best, loud and clear, to make the case there is a cost of living

:10:37. > :10:39.crisis in this country and the Chancellor doesn't understand this.

:10:40. > :10:44.That was essentially the heat of the debate on the Autumn Statement day.

:10:45. > :10:47.One leading Labour MPs said to me that Ed Balls is always looking

:10:48. > :10:53.back, fixated with the rear-view mirror, that was the exact quote. A

:10:54. > :10:57.Labour MP told Sky News, Labour has a strong argument to make,

:10:58. > :11:06.unfortunately it was not made well in the chamber today. Quoting the

:11:07. > :11:10.Daily Mail, this is two poor performances. A quote that I can't

:11:11. > :11:16.use because it uses too many four letter words. Baroness Armstrong,

:11:17. > :11:20.speaking at Progress, a former Labour Cabinet minister, we are not

:11:21. > :11:23.sufficiently concerned about public spending, how we would pay for what

:11:24. > :11:28.we are talking about. Quite a battering? There were two sets of

:11:29. > :11:34.quotes you were giving. The couple were about the strategy for tackling

:11:35. > :11:39.public expenditure. I think it's fair that we talk about that. The

:11:40. > :11:50.rest were pretty unattributed, nameless sources. You have never

:11:51. > :11:55.given and of the record briefing? We have conversations off camera, but I

:11:56. > :12:00.don't think you have a wealth of evidence to say that somehow Ed

:12:01. > :12:04.Balls's arguments were wrong. He was making the point that, ultimately,

:12:05. > :12:09.it is a government that does not have its finger on the pulse about

:12:10. > :12:12.what most of your viewers are concerned about, that wages are

:12:13. > :12:16.being squeezed and prices are getting higher and higher. You have

:12:17. > :12:23.had time to study the Autumn Statement. What part of it does

:12:24. > :12:28.Labour disagree with? It is a very big question. I think the overall

:12:29. > :12:32.strategy the Autumn Statement is setting out does not deal with the

:12:33. > :12:37.fundamental problems in the economy. What measures do you disagree with?

:12:38. > :12:39.A lot of it is the absence of measures we would have put in if we

:12:40. > :12:42.were doing the Autumn Statement. If were doing the Autumn Statement If

:12:43. > :12:45.you are going to deal with the cost of living crisis, you have got to

:12:46. > :12:47.get productivity levels up in our society. One of the best ways of

:12:48. > :12:51.doing that is on infrastructure We doing that is on infrastructure. We

:12:52. > :12:56.believe in bringing forward 's investment and housing, getting some

:12:57. > :13:04.of the fundamentals right in our economy. By planting, the business

:13:05. > :13:13.lending we have to do. We have seen a lamentable failing. There are big

:13:14. > :13:14.structural reforms that we need. Ultimately, the public are concerned

:13:15. > :13:19.about the cost of living crisis. about the cost of living crisis

:13:20. > :13:24.That has got to be childcare help, a 10p starting rate of tax. Above

:13:25. > :13:29.all, and energy price freeze, which still this government are refusing

:13:30. > :13:35.to do. On Friday, you told me you supported the principle of a welfare

:13:36. > :13:38.cap. But you change bling claim the Chancellor's cap included pensions.

:13:39. > :13:43.You have now seen the figures, and it does not include pensions,

:13:44. > :13:48.correct? We do want a welfare cap. The government have said they are

:13:49. > :13:52.going to put more detail on this in the March budget. But it does not

:13:53. > :13:58.include pensions? We think they have a short term approach to the welfare

:13:59. > :14:02.cap. They put in some pension benefits. The state pension is not

:14:03. > :14:08.in the short-term plan because, as we believe, a triple lock is a good

:14:09. > :14:11.idea. In the longer term, if you are talking about structural welfare

:14:12. > :14:14.issues, you do have to think about pensions because they have to be

:14:15. > :14:19.sustainable if we are living longer. I think that is about the

:14:20. > :14:25.careful management. Let me show you what Ed Balls said on this programme

:14:26. > :14:28.at the start of the summer. As for pensioners, I think this is a real

:14:29. > :14:32.question. George Osborne is going to announce his cap in two weeks time.

:14:33. > :14:37.I don't know if he will exclude pension spending or including. Our

:14:38. > :14:41.plan is to include it. Pension spending would be included in the

:14:42. > :14:46.welfare cap? That is our plan, exactly what I just said. Over the

:14:47. > :14:51.long-term, if you have a serious welfare cap structural welfare

:14:52. > :14:54.issues, over 20, 30, 40 year period, you can't say that we will

:14:55. > :15:02.not work and pensions as part of that. Pensions would be part of the

:15:03. > :15:09.Labour cap? In the longer term. What is the longer term? If you win 015?

:15:10. > :15:13.We want to stick with the triple lock on the pension, that is the

:15:14. > :15:16.Government approach to their short-term welfare cap. In the

:15:17. > :15:23.longer term, for example, on the winter fuel allowance, we should not

:15:24. > :15:26.necessarily be... There are lots of benefits... I understand that, I am

:15:27. > :15:27.talking about the basic state pension, is that part of your

:15:28. > :15:31.welfare cap or not? In a 20, 30, pension, is that part of your

:15:32. > :15:35.welfare cap or not? In a 20, 30 40 welfare cap or not? In a 20, 30, 40

:15:36. > :15:45.year frame... Even you will not be around in government, then. You are

:15:46. > :15:48.writing me off already. You have to focus on welfare changes, pensions

:15:49. > :15:52.have to be affordable as part of that. It's dangerous to say, well,

:15:53. > :15:55.if you are going to have a serious welfare cap, we should not look at

:15:56. > :16:02.pensions cost. It would be irresponsible. Will pensions be part

:16:03. > :16:07.of the cap from 2015 until 2020 if Labour is in power? In our long-term

:16:08. > :16:14.cap we have to make sure... I'm talking about 2015-16. We haven t

:16:15. > :16:15.talking about 2015-16. We haven't seen the proposition the Government

:16:16. > :16:28.has put before us. You claim people of ?1600 worse off

:16:29. > :16:33.under the coalition. That is true when you compare to pay and prices.

:16:34. > :16:38.Can you confirm that calculation does not include the ?700 tax cut

:16:39. > :16:44.from raising the income tax threshold, huge savings on mortgages

:16:45. > :16:47.because of low interest or the freezing of council tax? It doesn't

:16:48. > :16:53.include the tax and benefit changes. If you do want to look at

:16:54. > :16:55.those, last year, the ISS said they could be making people worse off. It

:16:56. > :16:59.might not include those factors. could be making people worse off. It

:17:00. > :17:08.might not include those factors The VAT increase, tax credit cuts, child

:17:09. > :17:10.benefit cuts, they all add up. My understanding is that the ISS

:17:11. > :17:16.figures have said people are ?891 figures have said people are ?8 1

:17:17. > :17:23.worse off if you look at the tax and benefit changes since 2010. You have

:17:24. > :17:27.to look at wages and prices. The ISS confirmed our approach was broadly

:17:28. > :17:33.the right way of assessing what is happening. The Chancellor was

:17:34. > :17:38.saying, real household disposable incomes are rising. He is completely

:17:39. > :17:43.out of touch. Can you sum up the macro economic policy for Labour?

:17:44. > :17:48.Invest in the future, make sure we have the right approach for the

:17:49. > :17:51.long-term politicking. Tackle the cost of living crisis people are

:17:52. > :17:54.facing. Now, let's talk to the Financial

:17:55. > :18:02.Secretary to the Treasury, Sajid Javid.

:18:03. > :18:08.Discovery, underpinned by rising house prices, increasing personal

:18:09. > :18:13.debt, do you accept that is unsustainable?

:18:14. > :18:19.I accept the OBE are also said the reason why this country is facing

:18:20. > :18:25.more these challenges -- OBR. That is because we went through a

:18:26. > :18:33.Labour recession, the worst we have seen in 100 years. But do you accept

:18:34. > :18:39.that a recovery underpinned by these things I have just read out isn't

:18:40. > :18:44.sustainable? We set out a long-term plan for recovery, and again this

:18:45. > :18:49.week. We have shown with the tough decisions we have made already, the

:18:50. > :18:54.country can enjoy a recovery. There are still a lot of difficult

:18:55. > :18:58.decisions. The biggest risk are Labour's plans. The March

:18:59. > :19:05.projections work at for those -- Labour's plans. The March

:19:06. > :19:09.projections work at for those - for both business investment and

:19:10. > :19:16.exports. Suddenly it is expected to rise 5% next year, a 10% turnaround

:19:17. > :19:20.in investment. How is it credible? I have been in business before

:19:21. > :19:24.politics. Any business person listening will know, when you have

:19:25. > :19:30.gone through a recession, the deepest in 100 years, it will hit

:19:31. > :19:34.investment, profits, you can't make plans again until you have

:19:35. > :19:42.confidence in the economy. That is what this country is seeing now

:19:43. > :19:49.under this government. This is an assumption made independently. The

:19:50. > :19:55.fall in business investment is because of the recession. The

:19:56. > :20:01.forecast increases, 5% next year, and so on, it is based on the

:20:02. > :20:07.independent forecast. Based on fact. If you look at the investment plans

:20:08. > :20:15.of companies, this week, the Chancellor went to JCB, Jaguar Land

:20:16. > :20:18.Rover has plans to create more jobs, these investment plans are

:20:19. > :20:22.coming through now because of the confidence generated by this

:20:23. > :20:28.government, such as the cut in corporation tax which Labour would

:20:29. > :20:33.increase. Are the export forecasts more credible? The 15 years, our

:20:34. > :20:41.share of world trade decline. Suddenly starting next year, it

:20:42. > :20:46.stops falling. That's not credible. I worked in finance the 20 years. I

:20:47. > :20:54.have yet to find any forecast which is fully right. Under Labour, we

:20:55. > :21:00.would have forecasts made by Gordon Brown who would announce he would

:21:01. > :21:05.hit all his targets. Now we have an independent system.

:21:06. > :21:11.Do you accept, if exports or business investment do not pick up,

:21:12. > :21:15.then a purely consumer led recovery is not sustainable? We need more

:21:16. > :21:23.than a consumer led recovery. We need consumer investment to go up.

:21:24. > :21:26.On Xbox, it is noticeable that experts are primarily down because

:21:27. > :21:30.the markets we trade with, the eurozone markets, are depressed.

:21:31. > :21:34.eurozone markets, are depressed Many have just come out of

:21:35. > :21:37.recession. Or they are still in recession. If you look at exports to

:21:38. > :21:47.non-EU countries, they are up 30%. non-EU countries, they are up 3 %.

:21:48. > :21:52.120% to China. 100% to Russia. Will you keep the triple lock for

:21:53. > :21:58.the state pension beyond 2015? Yes, long term. That's why it is not part

:21:59. > :22:03.of our welfare cap. Chris Leslie cannot answer that question. It is

:22:04. > :22:11.straightforward. House prices are now rising ten

:22:12. > :22:19.times faster than average earnings. That's not good. House prices are

:22:20. > :22:23.rising, partly reflecting recovery. Ten times faster than average

:22:24. > :22:28.earnings, how can people afford to buy homes if it carries on? What you

:22:29. > :22:32.would hope, this is the evidence, if you look at the plans of the month

:22:33. > :22:39.companies, they are planning new homes which will mean that, as this

:22:40. > :22:43.demand spurs that investment, more homes will come about. We need to

:22:44. > :23:27.give people the means to buy those homes. We have introduced the help

:23:28. > :23:37.to buy scheme. I accept the OBR says it will start rising again but as

:23:38. > :23:51.household debt rises again Petr Cech reduces, -- as household debt

:23:52. > :23:56.reduces, we need to make sure there are checks in place. Wages have not

:23:57. > :24:05.been rising in real terms for quite some time. Over the next five years,

:24:06. > :24:17.even as the economy grows, by about 15% according the OBR to the OBR --

:24:18. > :24:22.but people will not benefit. These hard-working families will not share

:24:23. > :24:28.in the recovery. What is the best way to help those families? The

:24:29. > :24:33.government doesn't set wages. What we can do is influence the overall

:24:34. > :24:43.economy. We don't have a magic lever. Wages have been stagnating

:24:44. > :24:48.for five years. When will people get a proper salary? The best way for

:24:49. > :24:53.wage growth is a growing economy, more jobs. We have more people

:24:54. > :25:00.employed in Britain today than at any time in our history. The biggest

:25:01. > :25:05.risk to recovery is if we let Labour into the Treasury with more spending

:25:06. > :25:09.and more debt. Which got us into this trouble. By whatever measure

:25:10. > :25:16.you care to choose, would people be better off come the 20 15th election

:25:17. > :25:23.than they were in 2010? Yes, they will be. Look at jobs. Already more

:25:24. > :25:27.people employed than at any other time in history. Will they be better

:25:28. > :25:32.off? The best way for anyone to raise their living standards is

:25:33. > :25:36.access to a growing job market. But will they be better off? I believe

:25:37. > :25:44.people will be. Compared to 2010. people will be. Compared to 201 .

:25:45. > :25:47.Yes. In terms of take-home pay. This is a credible measure.

:25:48. > :25:53.Now, what do you think the Education Secretary, Michael Gove, was like at

:25:54. > :25:56.school? Hard-working? Hand always up? Top of the class? Well, if he

:25:57. > :25:59.wasn't passionate about education then, he is now. In fact, since he

:26:00. > :26:06.took office, it seems he hasn't stopped working very hard indeed.

:26:07. > :26:10.When the coalition came to power, Michael Gove evoked Mao, saying they

:26:11. > :26:13.were on a long march to reform education. Just like Mao, they faced

:26:14. > :26:19.a baby boom, so pledged ?5 billion for new school places. They extended

:26:20. > :26:23.Labour's academy programme. There's now about 3,000 in England. But

:26:24. > :26:25.then, they marched even further creating free schools run by

:26:26. > :26:32.parents, funded by taxpayers. 174 parents, funded by taxpayers. 1 4

:26:33. > :26:35.have opened so far. The schools admission code was changed, to give

:26:36. > :26:38.parents more choice. And a pupil premium was introduced,

:26:39. > :26:41.currently, an extra ?900 funding for each disadvantaged child.

:26:42. > :26:45.An overhaul of the national curriculum provoked criticism.

:26:46. > :26:53.Chairman Gove mocked detractors as "bad academia". But exam reforms

:26:54. > :26:56.didn't quite go to plan. Although GCSEs got harder, plans to replace

:26:57. > :27:00.A-levels had to be abandoned. Ultimately, the true test of these

:27:01. > :27:05.reforms will be what happens in the classroom. The person in charge of

:27:06. > :27:08.making sure those classrooms are up to scratch in England is the Chief

:27:09. > :27:13.Inspector Of Schools, head of Ofsted, Michael Wilshaw, who joins

:27:14. > :27:18.me now. Over the past 15 years, we have

:27:19. > :27:22.doubled spending on schools even allowing for inflation. By

:27:23. > :27:28.international standards, we are stagnating, why? I said last year

:27:29. > :27:38.that mediocrity had settled into the system. Too many children were

:27:39. > :27:44.coasting in schools, which is why we changed the grading structure, we

:27:45. > :27:48.removed that awful word, satisfactory. Saying that good is

:27:49. > :27:52.now the only acceptable standard and schools had a limited time in which

:27:53. > :27:58.to get to that. We are seeing gradually, it is difficult to say

:27:59. > :28:03.this in the week we have had the OECD report. Things have gradually

:28:04. > :28:08.improved. I will come onto that in a minute. Explain this. International

:28:09. > :28:10.comparisons show us flat-lining or even falling in some subjects,

:28:11. > :28:16.including science. For 20 years, our including science. For 20 years our

:28:17. > :28:20.domestic exam results just got better and better. Was this a piece

:28:21. > :28:24.of fiction fed to us by the educational establishment, was there

:28:25. > :28:30.a cover-up? There is no question there has grade inflation. I speak

:28:31. > :28:36.as an ex-headteacher who saw that in examinations. Perceptual state is

:28:37. > :28:46.actually doing something about that. Most good heads will say that is

:28:47. > :28:51.about time. We have to be credible. Do politicians and educationalists

:28:52. > :28:55.conspire in this grade inflation? It might suit politicians to say things

:28:56. > :29:00.are going up every year. As a head, I knew a lot of the exams youngsters

:29:01. > :29:08.were sitting were not up to scratch. The latest OECD study places us 36th

:29:09. > :29:14.for maths, 23rd reading, slipping down to 21st in science. Yet,

:29:15. > :29:19.Ofsted, your organisation, designates 80% of schools as good or

:29:20. > :29:24.outstanding. That's another fiction. This year, we have. If we see this

:29:25. > :29:27.level of progress, it has been a remarkable progress over the last

:29:28. > :29:34.years since we changed our grading structure, then... In a year,

:29:35. > :29:39.absolutely. We have better teachers coming into our school system.

:29:40. > :29:43.Better leaders. Better schools. The big challenge for our country is

:29:44. > :29:44.making sure that progress is maintained which will eventually

:29:45. > :29:55.translate into better outcomes. These figures are pretty much

:29:56. > :29:59.up-to-date. Are you saying within a year 80% of the schools are good

:30:00. > :30:04.enough? All of the schools we upgraded have had better grades in

:30:05. > :30:09.GCSE and grade 2. We have to make sure that is maintained. The

:30:10. > :30:12.Government has based its reforms on similar reforms in Sweden. In

:30:13. > :30:16.opposition they were endlessly going to Stockholm to find out how it was

:30:17. > :30:24.done. Swedish schools are doing even worse than ours in the tables. Why

:30:25. > :30:28.are we copying failure? The secretary of state believes, and I

:30:29. > :30:33.actually believe, as somebody who has come from an academy model, that

:30:34. > :30:36.if you hand power and resources, you hand autonomy to the people on the

:30:37. > :30:42.ground, to the people in the classroom, in the corridors, in the

:30:43. > :30:46.playgrounds, things work. If you allow the great monoliths that used

:30:47. > :30:51.to have responsibility for education in the past to take control again,

:30:52. > :30:54.you will see a reverse in standards. You have got to actually empower

:30:55. > :31:00.those people that make the difference. That is why autonomy and

:31:01. > :31:03.freedom is important. We spent a lot of money moving what were local

:31:04. > :31:07.authority schools to become academies and new free school czar

:31:08. > :31:10.being set up as well. When the academies are pretty much the same

:31:11. > :31:14.level of autonomy, the free school is maybe a little bit more, the

:31:15. > :31:19.evidence we have had so far is that they don't really perform any better

:31:20. > :31:24.than local authority schools? Indeed, Encore GCSE subjects, they

:31:25. > :31:27.might even be doing worse? These are early days. We will say more about

:31:28. > :31:32.this on weapons they when we produce the annual report. The sponsored

:31:33. > :31:36.academies that took over the worst schools in the country, in the most

:31:37. > :31:41.difficult circumstances, in the most disadvantaged communities, are doing

:31:42. > :31:44.much better now. What about GCSE? They are doing GCSE equivalents, the

:31:45. > :31:50.They are doing GCSE equivalents the lass academic subjects question my

:31:51. > :31:54.cull OK, but they are doing better than previous schools. If you look

:31:55. > :32:07.at the top performing nations in the world, they focus on the quality of

:32:08. > :32:10.teaching. The best graduates coming to education. They professionally

:32:11. > :32:14.develop them. They make sure they spot the brightest talents and get

:32:15. > :32:18.them into positions as soon as possible. We have got to do the same

:32:19. > :32:24.if we are going to catch up with those jurisdictions. This isn't just

:32:25. > :32:28.a British problem. It seems to be a European problem. The East Asian

:32:29. > :32:31.countries now dominate the top of the tables. What's the most

:32:32. > :32:36.important lesson we should learn from East Asia? Attitudes to work.

:32:37. > :32:43.We need to make sure that we invest in good teachers, good leaders. We

:32:44. > :32:44.have to make sure that students have the right attitudes to work. It s

:32:45. > :32:44.have to make sure that students have the right attitudes to work. It's no

:32:45. > :32:49.the right attitudes to work. It s no good getting good people into the

:32:50. > :32:52.classroom and then seeing them part of teaching by bad behaviour,

:32:53. > :33:00.disaffected youngsters and poor leadership. We see young teachers

:33:01. > :33:05.doing well for a time and then being put off teaching and leaving from

:33:06. > :33:08.that sort of culture in our schools. Are you a cheerleader for government

:33:09. > :33:13.education policy rather than independent inspectors? I am

:33:14. > :33:19.independent, Ofsted is independent. I believe we are saying the right

:33:20. > :33:22.things on standards. The Association of teachers and lecturers say you

:33:23. > :33:27.are an arm of government. The NUT has called for your resignation.

:33:28. > :33:30.Another wants to abolish or Inspectorate. Have you become a

:33:31. > :33:36.pariah amongst teaching unions? If we are challenging schools to become

:33:37. > :33:41.better, that is our job, we will carry on doing that. I am not going

:33:42. > :33:44.to preside over the status quo. We will challenge the system to do

:33:45. > :33:48.better, we will challenge schools and colleges to do better. We will

:33:49. > :33:52.also challenge government when we think they are going wrong. Many

:33:53. > :33:56.people in the education establishment think your primary

:33:57. > :34:02.purpose is to do the Government's bidding by shepherding schools into

:34:03. > :34:07.becoming academies. Not true at all. You are a big supporter of

:34:08. > :34:11.academies? Yes, I believe the people that do the business in schools are

:34:12. > :34:15.the people that are free to do what is necessary to raise standards. I

:34:16. > :34:23.am a big supporter of autonomy in the school system. But where we see

:34:24. > :34:29.academies Vale, where we see free schools fail, we will say so. The

:34:30. > :34:35.study does not find much evidence that competition and choice raise

:34:36. > :34:37.standards, but it does go with you and say that strong school

:34:38. > :34:41.leadership, coupled with autonomy, can make a difference. Can somebody

:34:42. > :34:46.with no experience in education be in charge of a school? A lot of hot

:34:47. > :34:49.air has been expounded on the issue of whether teachers should be

:34:50. > :34:53.qualified or not. If qualified teacher status was the gold

:34:54. > :35:01.standard, why is it that one in three teachers, one in three lessons

:35:02. > :35:05.that will observe are not good enough. Taught by qualified

:35:06. > :35:09.teachers. I've not yet met a headteacher that has not appointed

:35:10. > :35:13.by qualified staff when they cannot get qualified teachers. Their job is

:35:14. > :35:17.to make sure they get accredited as soon as possible and come up to

:35:18. > :35:22.scratch in the classroom. Do you support the use of unqualified

:35:23. > :35:26.teachers? I do. I have done it. If I could not get a maths, physics or

:35:27. > :35:28.modern languages teacher and I thought somebody straight from

:35:29. > :35:31.university, without qualified teachers start this, that they could

:35:32. > :35:36.communicate well with youngsters, I would get that person into the

:35:37. > :35:40.classroom and get them accredited if they delivered the goods. If we are

:35:41. > :35:43.going to allow schools to have more autonomy and not be accountable to

:35:44. > :35:50.local authorities, free schools academies, don't you have to do...

:35:51. > :35:54.New entrants will be coming into the market, the educational marketplace.

:35:55. > :36:02.Do you not have to act more quickly when it is clear, and there has been

:36:03. > :36:06.examined recently, where it is clearly going badly wrong and

:36:07. > :36:09.children's education at risk? Absolutely. I made a point to the

:36:10. > :36:12.secretary of state and it is something I will talk more about

:36:13. > :36:15.over the coming year. We need to be in school is much more often. If a

:36:16. > :36:21.school fails at the moment, or underperforms, goes into this new

:36:22. > :36:26.category, Her Majesty 's inspectors stay with that institution until it

:36:27. > :36:28.improves. Sometimes we don't see a school for five or seven years. That

:36:29. > :36:32.improves. Sometimes we don't see a is wrong. My argument is that Ofsted

:36:33. > :36:35.should pay a much greater part in monitoring the performance of

:36:36. > :36:43.schools between those inspections. Are you enjoying it? It is a tough

:36:44. > :36:49.job. Are you enjoying it? This is a tough job, but I enjoy it.

:36:50. > :36:52.Sometimes. You are watching Sunday Politics.

:36:53. > :36:54.Coming up in just over 20 minutes, Diane Abbott will be joining us. And

:36:55. > :37:15.we will have Welcome to Sunday Politics. On

:37:16. > :37:21.today's shawl, just 10% of the water quality in Berks meets quality

:37:22. > :37:23.standards. The environment agency is responsible for bringing the

:37:24. > :37:35.remaining 90% up to scratch but it is losing one in six of its staff.

:37:36. > :37:39.We are joined by the Labour MP for Southampton and the Conservative MP

:37:40. > :37:50.for sale. It is all about money in your pocket. `` Fairham. It is about

:37:51. > :37:56.getting people into work because when people are in work it is better

:37:57. > :38:00.for them. We have seen the private sector creates jobs and you have the

:38:01. > :38:05.big picture and economy rise which will drive the prosperity of the

:38:06. > :38:10.whole economy. You admit there is no feel`good? There are significant

:38:11. > :38:16.challenges but what the government has been able to do is because of

:38:17. > :38:24.the long`term view we have taken, we are cutting tax bills. If you look

:38:25. > :38:34.at disposable income, it has actually risen. We have cancelled

:38:35. > :38:38.the next increase in fuel duty, 20p a litre lower than it would have

:38:39. > :38:46.been. These are the sort of things the government can do. Getting the

:38:47. > :38:50.economy growing as it is, and the projections are faster than it was

:38:51. > :38:56.in the budget, that is the right way to get the economy and Britain

:38:57. > :39:02.going. The Conservatives are resurgent in Parliament and it is

:39:03. > :39:06.all working? That is out of touch with the vast majority of people I

:39:07. > :39:10.represent. The Tories are cheering because we have a small bit of

:39:11. > :39:14.growth after the period where the economy did not grow because of

:39:15. > :39:20.their policies. For most people, times are tough and people are worse

:39:21. > :39:25.off than they were. The great danger as this will be a recovery that

:39:26. > :39:31.benefits the really well off, the people that have had the big tax

:39:32. > :39:35.cuts, not for ordinary families because they have not dealt with

:39:36. > :39:39.things like energy companies. There has been some recovery and that is

:39:40. > :39:47.good and for all Ed Balls has said... We said at the beginning, if

:39:48. > :39:53.you cut public spending too far and too fast the economy will flat line.

:39:54. > :39:57.It said that for three years and thank goodness there is growth, but

:39:58. > :40:03.we were told to tighten our belts and we would deal with the deficit.

:40:04. > :40:14.Now, another five years and then we will have dealt with it. It is not a

:40:15. > :40:20.success. It will take us long now to deal with the deficit as we were

:40:21. > :40:26.told in 2010. All that pain and the deficit is no better today. The

:40:27. > :40:34.reality is when we came into office there was a UK economic crisis going

:40:35. > :40:47.on. It is about external prices like oil going up. The eurozone crisis,

:40:48. > :40:50.big export problems. The reality is that plans we put into place to

:40:51. > :40:57.tackle the deficit are being to work. Labour said you are never

:40:58. > :41:03.going to see the increase in employment or CD private sector

:41:04. > :41:11.creating jobs. Ed Miliband has lost the arguments. You said he would

:41:12. > :41:16.have four times as much growth as we have now learned everything you said

:41:17. > :41:21.has failed completely. ?54 million is how much carers UK reckons is

:41:22. > :41:28.going unclaimed by carers in our region. They were recently had just

:41:29. > :41:34.`` produced a breakdown of people eligible but who are not claiming.

:41:35. > :41:45.In Southampton there are 1276 missing out on funding and 345

:41:46. > :41:56.people in your constituency. Joining me now as a representative of Carers

:41:57. > :42:00.UK. Why are people not claiming? The fundamental reason is that people do

:42:01. > :42:04.not consider themselves to be carers, they are just doing what

:42:05. > :42:11.families do. If a family member needs help, you help that person, or

:42:12. > :42:17.if your parents are starting to get frail and needing help, again,

:42:18. > :42:20.people do that and what they do not think of is how will I manage

:42:21. > :42:29.financially? Quite often they miss out. You are saying they ought to be

:42:30. > :42:34.encouraged in some way? We need everyone to do their sons friends

:42:35. > :42:40.and family recognise this but public services have a critical role to

:42:41. > :42:43.play. Your GP does not have to be benefits experts but if they are

:42:44. > :42:49.worried, they should be able to say, are you considering benefits? People

:42:50. > :42:53.can end up in often extreme poverty if they have missed out for a couple

:42:54. > :43:00.of years and the benefits also protect the pension. We have some

:43:01. > :43:05.real hardship out there. We have about one in ten people using credit

:43:06. > :43:10.cards just to make ends meet. We know that is storing up a lot of

:43:11. > :43:13.problems for the future, and a lot of the debates and the Autumn

:43:14. > :43:21.Statement are about the choice between heating and eating. What

:43:22. > :43:27.about the benefits changes? Are things going to get better or

:43:28. > :43:30.worse? It is a really complicated system and there are some changes

:43:31. > :43:38.which have happened already that are quite difficult. The changes that

:43:39. > :43:41.housing benefit and bedroom tax are heading carers particularly hard

:43:42. > :43:47.because of the way the rules are drawn. They do not really understand

:43:48. > :43:53.that people can need two bedrooms because if they have a hospital bed

:43:54. > :44:06.they cannot share the bed. Let's put these points. We are going through a

:44:07. > :44:15.whole process of benefit reform of one of the challenges is that if you

:44:16. > :44:18.claim for carers allowance, people are eligible for personal living

:44:19. > :44:24.allowance and independence payments and it is about joining up the dots

:44:25. > :44:28.for some people. If you have jobseeker's allowance you can get a

:44:29. > :44:31.carers premium but you have to know what is there, and we are trying to

:44:32. > :44:43.make sure people can get better information. It is trying to make it

:44:44. > :44:50.much more automatic. It is estimated that 10,000 people will lose these

:44:51. > :44:54.payments in that situation? There are some bad changes coming in the

:44:55. > :45:01.bedroom tax should be just scrapped because it is a badly designed to

:45:02. > :45:06.change, but the issue we should pick on, and when I led the Carers UK

:45:07. > :45:10.press release, most weeks and my advice surgery I will probably see

:45:11. > :45:17.somebody who is a carer. If they come to speak to me about financial

:45:18. > :45:23.circumstances, fact they are carer comes up by the by, do I always ask

:45:24. > :45:26.if they have the carers allowance? All of us who may come into contact

:45:27. > :45:32.with carers need to know enough to say, you should ask about this. Is

:45:33. > :45:39.it just the transition early change or a cultural thing, or what should

:45:40. > :45:44.we do differently? All those things. People on the whole do not want to

:45:45. > :45:46.claim benefits but it is a really important system that helps to

:45:47. > :45:54.support people who cannot work full`time. The government website is

:45:55. > :45:56.actually very good on benefit entitlement so I would just

:45:57. > :46:05.encourage people to think about it and spread the word and get advice.

:46:06. > :46:10.Only 27% of water bodies in the UK meet the beefed up EU water quality

:46:11. > :46:17.standards, and we have just 15 Stan `` 15 years to get BS to Mark. With

:46:18. > :46:30.the Environment Agency losing funding and staffing, that could be

:46:31. > :46:34.a problem. We are people that care about issues

:46:35. > :46:42.like Habitat and water quality and a lot of my is really about supporting

:46:43. > :46:46.Habitat enhancement schemes. Clean and clear water and make this

:46:47. > :46:56.stretch of the river a nirvana for anglers. This former MP, used to

:46:57. > :47:03.stalking the corridors of Westminster, he still wield some

:47:04. > :47:08.power in the world of fishing as the head of the angling trust. A river

:47:09. > :47:13.that supports a healthy fish population is likely to support a

:47:14. > :47:23.healthy water vole population and kingfishers and heavens. It is in

:47:24. > :47:28.everybody's interests. `` herons. The revellers getting cleaner by the

:47:29. > :47:34.year. It has two, tough targets have been set by the EU meaning our

:47:35. > :47:40.rivers have to be much less polluted and home to a greater variety of

:47:41. > :47:44.wildlife. We have until 2027 to meet the targets but there is an awfully

:47:45. > :47:49.long way to go as at the moment only 10% of this river and the

:47:50. > :47:54.contributing streams are meeting the targets.

:47:55. > :47:59.The buck stops with the Environment Agency but government cuts means has

:48:00. > :48:11.two shared 1500 jobs by next October, one in six of the

:48:12. > :48:16.workforce. `` to cut 1500 jobs. This is a real conservation species, a

:48:17. > :48:21.beautiful small fish. How clean does the lover have to be for them? It

:48:22. > :48:27.has to be very clean for them to thrive in the way they are clearly

:48:28. > :48:36.doing here. They are rarer sight in other parts of the lover. 90% is not

:48:37. > :48:45.up to scratch. Pinning the blame is not easy. It is down to different

:48:46. > :48:52.sorts of pressures. Pressure from development and agriculture and

:48:53. > :48:56.factory discharges, and also destruction in some places of

:48:57. > :49:04.habitats. Generally, the water is improving. Reducing pollution from

:49:05. > :49:09.farmers fields, industry and new housing development is essential.

:49:10. > :49:16.Some say it will all mean nothing unless we change our behaviour. We

:49:17. > :49:21.are producing a lot of the waste that ends up in the reverence,

:49:22. > :49:28.either through products that are farmed intensively, and also using

:49:29. > :49:33.products only domestic bases. As it as simple as not using as much or

:49:34. > :49:40.different types? Products that are much kinder for the environment,

:49:41. > :49:51.things that once they go through the system, the river levels can cope

:49:52. > :49:54.with the level of effluence. Losing 15% of the staff means the

:49:55. > :50:02.Environment Agency has to rely on an ever`growing army of volunteers.

:50:03. > :50:08.Local people want to take ownership of these issues and get stuck in. I

:50:09. > :50:16.am confident we can do what is required. They can be crucial in

:50:17. > :50:21.driving these changes in partnership with angling clubs and the Rivers

:50:22. > :50:26.trust and community groups and environmental organisations. It will

:50:27. > :50:34.be a challenge to get it anything near the level has to be by 2027.

:50:35. > :50:42.To make that water quality directive, one in six of the staff

:50:43. > :50:48.are getting rid of. It is a huge challenge and there is not a huge

:50:49. > :50:54.amount of public money. They are a great public organisations who have

:50:55. > :51:01.done fantastic things. The big question is, can you fill such a big

:51:02. > :51:04.gap with enough volunteers in all the right places, and it will be a

:51:05. > :51:11.huge challenge for the Environment Agency. People seem quite positive

:51:12. > :51:17.about it, people who really care about this. They have taken over the

:51:18. > :51:21.Titchfield canal from the Environment Agency who did not spend

:51:22. > :51:27.much time on it. They thought they would be much better looking after

:51:28. > :51:31.it and cleaning it out and preserving it than the Environment

:51:32. > :51:34.Agency. There's a huge interest they ran the a lot of people are out

:51:35. > :51:43.there who are keen to protect the environment. They wanted to do

:51:44. > :51:48.something about the environment to help them and help the community and

:51:49. > :51:54.the future. A lot more houses coming, haven't we? We can design

:51:55. > :51:59.these to be more environmentally friendly than they weren't the

:52:00. > :52:08.past. In Israel, 90% of the water is reuse, and that is something we can

:52:09. > :52:12.do. It is about technology and commitment and we cannot rely on the

:52:13. > :52:16.Environment Agency to do everything. It was billed as the biggest ever

:52:17. > :52:20.trade delegation we have sent overseas and joining the Prime

:52:21. > :52:32.Minister and his trip to China were a good number from our region. One

:52:33. > :52:40.of the 150 was Hugh Wales. `` Wells/ There he is in the picture of them

:52:41. > :52:47.leaving. Hopefully over the jet lag, did you have a good trip? What have

:52:48. > :52:50.you brought back? We do not do any business in China at the moment so

:52:51. > :52:55.what we have brought back is good knowledge of what China is about. We

:52:56. > :53:01.sell to Japan which is close but very different. We have come back

:53:02. > :53:05.with a much wider knowledge of what the market is like. What do you

:53:06. > :53:15.think it could be in the years ahead? In China at the moment, there

:53:16. > :53:22.are 600 million middle`class consumers coming up. At the moment,

:53:23. > :53:27.1% of imports into China are British. If that became 2% it would

:53:28. > :53:37.have the national deficit. That is why China is so important. `` half

:53:38. > :53:45.the national deficit. Are they taking us seriously? I think they

:53:46. > :53:50.are. The political climate has been a bit frosty but going in the with

:53:51. > :53:58.such a big delegation, it showed that in Britain we are open for

:53:59. > :54:03.business. We need to get some of that and make China work for us.

:54:04. > :54:09.There is a rebalancing between China being a producer and the consumer.

:54:10. > :54:13.As it becomes a consumer, we can try to get some of our high`quality

:54:14. > :54:23.British design goods in there. They are called luxury lines, that is the

:54:24. > :54:29.market you are aiming at? The rich Chinese are interested in some very

:54:30. > :54:36.expensive products but with this 600 million consumer base it is luxury

:54:37. > :54:47.like they are looking at. `` luxury light. We do signage and cladding

:54:48. > :54:51.for underground systems, and the building going on in China requires

:54:52. > :54:58.new and innovative building materials. As part of that, I spoke

:54:59. > :55:04.to numerous architects and said, how about looking at some of our stuff

:55:05. > :55:08.made on the Isle of Wight? It is a bit of a drop in the ocean taking

:55:09. > :55:10.150 people out but there's a drop in the ocean taking 150 people like but

:55:11. > :55:13.is changing the culture of companies? I think it is and it is

:55:14. > :55:17.making people think about the opportunities that are out there.

:55:18. > :55:29.Understanding more about the market and what it could mean. Huge support

:55:30. > :55:35.from the UK trade industry with businesses small and large looking

:55:36. > :55:42.to do business out there. It is a fantastic opportunity. In some of

:55:43. > :55:48.this window dressing? It is important to do it and do it well.

:55:49. > :55:56.The challenge is to say Britain is all very well but it is an old

:55:57. > :56:00.country. We do have to understand that we are also in a position where

:56:01. > :56:04.we want a nuclear power station and it has to be built by a French and

:56:05. > :56:08.Chinese company, sorry lot has to be done here to increase the number of

:56:09. > :56:16.companies that have the capacity to export. Much as much as possible we

:56:17. > :56:23.have to build up our core economic strength much better than it is at

:56:24. > :56:28.the moment. London taxis, why do they have to be moved to China? Why

:56:29. > :56:31.could we not have the investment to export them here?

:56:32. > :56:37.We must not miss opportunities. Thank you for coming in. Our regular

:56:38. > :56:47.round`up of the political week in the south.

:56:48. > :56:54.Hydroelectric power has come to the River Thames. The community or in

:56:55. > :57:00.scheme replaces a weir and low`power 60 homes.

:57:01. > :57:03.Sussex pesticides campaigner has claimed victory in her 12 year

:57:04. > :57:09.battle to get the government to tighten up on chemicals used in crop

:57:10. > :57:13.spraying. Hampshire police have been visiting scrap dealers enforce new

:57:14. > :57:17.regulations and buying and selling for cash is illegal.

:57:18. > :57:21.The Civil rights activist Jesse Jackson told the Oxford union

:57:22. > :57:34.University does not do enough to encourage ethnic minorities. They

:57:35. > :57:38.must be equipped to deal with multiracial multicultural world.

:57:39. > :57:43.The Christmas lights are up in Newbury but a plan to guarantee the

:57:44. > :57:47.homeless a hospital place was abandoned when people turned up from

:57:48. > :57:53.as far away as Birmingham. `` hostel place.

:57:54. > :57:59.It says something it was quite so popular. Jesse Jackson criticising a

:58:00. > :58:05.lack of diversity at Oxford University. In the week of Nelson

:58:06. > :58:10.Mandela's death, should we learn from his example? There are many

:58:11. > :58:14.extraordinary things about him but one of the most was when he became

:58:15. > :58:19.president, he could have easily said, we have been badly treated and

:58:20. > :58:25.now the majority will take everything. It was the magnanimity

:58:26. > :58:30.to say I want a country that is equal for everybody. When we look at

:58:31. > :58:35.our own country, the lesson should be to keep on working until we have

:58:36. > :58:42.true equality of opportunity. Do you take that lesson? I think it is a

:58:43. > :58:46.really good lesson. It would be very easy to come from Robben Island and

:58:47. > :58:51.be very better but he showed great humanity and was magnanimous. He

:58:52. > :58:54.reached out to people who disagreed with him and there is a lesson about

:58:55. > :59:01.how you deal with conflict and its resolution. A lesson for politicians

:59:02. > :59:06.everywhere, working on coalitions rather than opposition? The way he

:59:07. > :59:12.reached out to people demonstrates you can work together on these

:59:13. > :59:19.issues, it is important to agree and cooperate. We can be too much

:59:20. > :59:24.focused on division. That is, rather than where we can work together. It

:59:25. > :59:29.will be a huge memory for so many people? For somebody of my

:59:30. > :59:36.generation, apartheid was one of the first issues that made me think,

:59:37. > :59:40.what are my values? Do I take the world the way as it has or play a

:59:41. > :59:46.little part if I can in changing it? A huge number of people had that

:59:47. > :59:53.response to the issue and to heaven. Thank you both for being on the

:59:54. > :59:57.programme. That is all from us. `` and to him.

:59:58. > :00:22.Tomorrow, the House of Commons will pay its tributes to Nelson Mandela.

:00:23. > :00:42.Our nation has lost its greatest son. Our people have lost a father.

:00:43. > :00:49.The first thing I ever did that involved an issue or policy, or

:00:50. > :00:56.politics, was protest against apartheid.

:00:57. > :01:06.I think his greatest legacy, to South Africa and to the world, is

:01:07. > :01:16.the emphasis which he has always put on the need for a conciliation, on

:01:17. > :01:22.the importance of human rights. He also made us understand that we can

:01:23. > :01:25.change the world. We can change the world by changing attitudes, by

:01:26. > :01:31.changing perceptions. For this reason, I would like to pay him

:01:32. > :01:43.tribute as a great human being, who raised the standard of humanity.

:01:44. > :01:47.Thank you for the gift of Madiba. Thank you for what he has enabled us

:01:48. > :02:05.to know we can become. We are joined now by the Labour MP

:02:06. > :02:09.Diane Abbott. You met Mr Mandela not one after he was released from

:02:10. > :02:14.prison in 1990. He went as an election observer for the first one

:02:15. > :02:19.person, one-vote in South Africa. I would guess, of all the people you

:02:20. > :02:20.met in your life, you must have been the most impressive and biggest

:02:21. > :02:26.influence? He was extraordinary He influence? He was extraordinary. He

:02:27. > :02:29.had just come out of prison, 28 years in reason. He had seen a lot

:02:30. > :02:35.of his colleagues tortured, blown up and killed. He was entirely without

:02:36. > :02:41.bitterness. That is what came across. That was key to his

:02:42. > :02:42.achievement, to achieve a peaceful transition. Everybody thought that

:02:43. > :02:47.if you have black majority rule, you if you have black majority rule you

:02:48. > :02:52.might have a bloodbath. It's down to Nelson Mandela but didn't happen. I

:02:53. > :02:58.remember FW de Klerk saying that Mandela was the key to getting a

:02:59. > :03:05.peaceful transition. Absolutely the key, an amazing man. London was one

:03:06. > :03:09.of the centres, people talked about it as being the other centre of the

:03:10. > :03:13.anti-apartheid struggle. That anti-apartheid struggle in London,

:03:14. > :03:18.it had an effect on black politics in Britain? Oh, yes. If you were

:03:19. > :03:24.black and politically active at the time, the apartheid struggle, the

:03:25. > :03:27.struggle against white supremacy in South Africa, was very important.

:03:28. > :03:30.Whatever your colour, the anti-apartheid struggle, for our

:03:31. > :03:37.generation, was the political campaign. We have the 50th

:03:38. > :03:40.anniversary of Kennedy's assassination. Mr Mandela's death.

:03:41. > :03:45.We are kind of running out of people that inspired us? I will never

:03:46. > :03:50.forget where I was when I saw him come out of prison, hand-in-hand

:03:51. > :03:53.with the women, I might add. If you have spent your whole teenage years

:03:54. > :03:58.and 20 is boycotting, marching, picketing, to see him actually come

:03:59. > :04:06.out was amazing. Do you think it was more exciting to meet you or the

:04:07. > :04:13.Spice Girls? I think the Spice Girls. What did the Labour

:04:14. > :04:17.backbenchers think about Ed Balls's performance after the Autumn

:04:18. > :04:21.Statement? Luck, Ed Balls is a brilliant man, but I think even he

:04:22. > :04:25.would say that it was not his best performance. But if you look at the

:04:26. > :04:30.polls, the public liked the points he made. The backbenchers were

:04:31. > :04:37.quiet, there was something wrong? I noticed that. It was like a wall of

:04:38. > :04:39.sound, deliberately. They know that under pressure his stamina might

:04:40. > :04:44.come back and it is difficult for him. That is what they were trying

:04:45. > :04:48.to incite. I have had experience first hand, a look at all of these

:04:49. > :04:54.anonymous and sometimes not anonymous quotes in the media. The

:04:55. > :05:04.spinning has begun against him? This is the party of brotherly love, no

:05:05. > :05:09.matter what the Tories say, we can say worse about each other. How

:05:10. > :05:15.could it be that two former aides to Gordon Brown do not like each other?

:05:16. > :05:20.Far be it from me to say. If he wanted to do it, and I'm not saying

:05:21. > :05:25.he does, is Mr Miliband ruthless enough to get rid of Ed Balls? I

:05:26. > :05:30.mean, he got rid of you, he got rid of his brother? One thing you should

:05:31. > :05:33.not do is under estimate Ed Miliband's capacity for

:05:34. > :05:39.ruthlessness. If he feels it is the right thing to do, he will do it.

:05:40. > :05:42.It's not just a matter of... Ed Balls is a big, powerful

:05:43. > :05:46.personality. He's great to interview because he is across his subject,

:05:47. > :05:50.you can have a really good argument with him, a man that knows his

:05:51. > :05:57.brief, his facts. But it's not just about the personality. There is a

:05:58. > :06:02.kind of sense that Labour needs to look forwards more on economic

:06:03. > :06:05.policy. Of course, the standard of living has been hugely successful

:06:06. > :06:10.for Labour. But it needs more than that on economic policy? I think he

:06:11. > :06:15.has been one of the most effective member 's Shadow Cabinet, and he's

:06:16. > :06:19.always associated with the Brown years, where there is always an

:06:20. > :06:23.element about, you were the guys that got it wrong. I think Ed

:06:24. > :06:27.Miliband will be very tempted to replace him with Alistair Darling.

:06:28. > :06:30.The scenario goes like this, Alistair Darling saves the union and

:06:31. > :06:34.then in September he saves the Labour Party. Ultimately, I don't

:06:35. > :06:38.think he would do it. Talk about shifting tectonic plates, it would,

:06:39. > :06:45.wouldn't it? But it is a step too far. Ed Balls would not be too

:06:46. > :06:55.happy. It is not something you would want to do lightly. That sounds a

:06:56. > :07:00.bit of a threat. Not from you. I can't see Ed Balls magnanimously

:07:01. > :07:04.retreating and say, go on, Alistair Darling, take the job I have been

:07:05. > :07:07.after all career. Where do you put him? Do you make him a middle

:07:08. > :07:13.ranking business or welfare secretary? He wouldn't do that. If

:07:14. > :07:18.you sack him, he would retreat to the backbenchers. He might take up

:07:19. > :07:22.knitting and practices piano scales, or he might have a blood feud with

:07:23. > :07:28.Ed Miliband. I don't know which could be. You look back to when he

:07:29. > :07:31.was schools Secretary, you could feel he was constantly fuming. I

:07:32. > :07:35.think he is better inside the tent, looking out, than the other way

:07:36. > :07:39.around. The thing one Labour strategist said to me was that he is

:07:40. > :07:43.too much looking into the rear-view mirror, when it comes to economic

:07:44. > :07:49.policy. He needs to look ahead through the windscreen. That had

:07:50. > :07:53.some resonance? He was at the centre of Labour's economic policy-making

:07:54. > :07:58.from the mid-90s. So it's hard for him but he has to look forward.

:07:59. > :08:02.There is an interesting comparison with 2009. Gordon Brown got in

:08:03. > :08:05.trouble when he said the choice is between Labour investment and Tory

:08:06. > :08:09.cuts. Everybody knew it was between Labour cuts and Tory cuts. In other

:08:10. > :08:13.words, he was not acknowledging reality. With Ed Balls, OK, we can

:08:14. > :08:17.say it is the wrong sort of recovery, but there is a recovery.

:08:18. > :08:20.Does he not need to absorb that punch and say there is a recovery,

:08:21. > :08:27.then people will listen to him? Possibly. We know that the

:08:28. > :08:31.macroeconomics are looking better. We also know people are not

:08:32. > :08:36.experiencing it as a recovery in living standards. No one, not even

:08:37. > :08:40.Tories, really believe that David Cameron knows what it is like for

:08:41. > :08:44.middle-income people to live normal lives. Living standards is

:08:45. > :08:47.particularly powerful because of the composition of the government? Don't

:08:48. > :08:52.go away. This time last year we ambushed our political panel with a

:08:53. > :08:56.quiz. They didn't come out of it smelling of roses, but they did come

:08:57. > :09:02.out rather smelly. Will the coalition still be in place

:09:03. > :09:10.a year from now? Yes. Definitely. I say definitely as well. From now,

:09:11. > :09:17.one year, will we know the date of the European referendum? Yes. No. I

:09:18. > :09:23.say no as well. How much growth will there be? Less than 1%. Father

:09:24. > :09:30.Christmas is less qualified than me, but I will go for one. I will go for

:09:31. > :09:37.a quarter of that. 0.4%. Sorry, a third of that. I am with you, and

:09:38. > :09:42.1%. We didn't do too badly. What will growth be next year? I will

:09:43. > :09:46.remind you, the OBR has upgraded to 2.4%. Better stick with the OBR,

:09:47. > :09:46.remind you, the OBR has upgraded to 2.4%. Better stick with the OBR got

:09:47. > :09:52.2.4%. Better stick with the OBR, got it wrong last year. Well, they went

:09:53. > :09:56.down in March and then went back in December. I'm going to go under and

:09:57. > :10:03.claim credit where it's higher. I'm going to say 1%. Deliberately get it

:10:04. > :10:06.wrong. Given our record, if we say there is going to be spectacular

:10:07. > :10:09.growth, does it mean we're going to go into recession? There is

:10:10. > :10:15.incentive to be cautious. 2%. 2.4%, incentive to be cautious. 2%. 2 4%,

:10:16. > :10:22.because the housing market in London is rocketing. It would be closer to

:10:23. > :10:30.3% and 2.4, mark my words. We'll Ed Balls be Shadow Chancellor by this

:10:31. > :10:37.time next year? Yes. Yes. Yes. Yes, I value my life. Will UKIP mean the

:10:38. > :10:45.European elections, by which I mean have the highest percentage of the

:10:46. > :10:51.vote? Yes. Second behind Labour Second behind Labour. Will Alex

:10:52. > :10:57.Salmond win the independence referendum? No, but it will be

:10:58. > :11:00.closer than we think. No, unless they do something catastrophic like

:11:01. > :11:08.let Cameron debate him. Too close to call. Controversial. How many

:11:09. > :11:18.Romanians and Bulgarians will come to Britain in 2014? Far fewer than

:11:19. > :11:21.anyone thinks. The entire population of Romania and Bulgaria, like Nigel

:11:22. > :11:27.Farage thanks. I'll go with that, I'm confident. A change of tone for

:11:28. > :11:31.your magazine. Not many will come, but a lot here already will

:11:32. > :11:37.normalise and be counted into figures. Too many for most

:11:38. > :11:41.right-wing commentators. I think quite a few will come, but not the

:11:42. > :11:51.kind of numbers that made such a huge difference. This time,

:11:52. > :11:55.everybody is open. They do like to speak English, that is the reason

:11:56. > :12:01.they want to come. We'll all three of you still be here by this time

:12:02. > :12:08.next year? Yes. Would you recommend that? Yes, keep them. And he has

:12:09. > :12:15.lovely boots. Shiny red boots. If you can keep affording me, I will be

:12:16. > :12:21.here. I hope so, it sounds like you have a firing squad outside. I hope

:12:22. > :12:29.so, maybe you will find some true talent. Very pragmatic, aren't they?

:12:30. > :12:33.Let me put this to you, I think you will agree. The coalition will not

:12:34. > :12:39.break now, this side of the election next year? There will not be... They

:12:40. > :12:46.will not go their own ways by this time next year? Of next year, maybe

:12:47. > :12:53.just after. Early 2015. This side of the election? What is the UKIP view?

:12:54. > :12:58.I don't think there is an advantage to either of them. If the Lib Dems

:12:59. > :13:01.pulled out, they would look like there were a lodger in the Tory

:13:02. > :13:05.house of government. I think it would suit the Lib Dems to break

:13:06. > :13:09.just before the election. I think that is what Vince Cable wants to

:13:10. > :13:16.do. I don't think it is what Nick Clegg would like to do. The Tories

:13:17. > :13:19.would love it. They would have all of the toys to themselves. Yellow

:13:20. > :13:22.marker they would look like the grown-ups. The problem for Vince

:13:23. > :13:25.Cable is that he's not the force that used to be after his temper

:13:26. > :13:34.tantrum at the Conference. I will be back with the Daily

:13:35. > :13:39.Politics next week. If Santer gives you a diary in your stocking, pencil

:13:40. > :13:47.in Sunday the 20th of January, the first Sunday Politics of 2014.

:13:48. > :13:48.Remember, if it is Sunday, it is the Sunday Politics. Unless it is

:13:49. > :13:51.Christmas. And New Year.