Browse content similar to 16/03/2014. Check below for episodes and series from the same categories and more!
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Morning folks. Welcome to the Sunday Politics. George Osborne's fifth | :00:37. | :00:44. | |
Budget will offer more tax relief for the lower paid but not for | :00:45. | :00:47. | |
middle income earners being thrust into the 40p tax bracket. That's our | :00:48. | :00:48. | |
top story. Ed Balls says millions of people | :00:49. | :00:53. | |
aren't feeling any benefit from the recovery. We'll discuss the economy | :00:54. | :00:56. | |
with big political beasts from Labour, the Conservatives, and the | :00:57. | :01:04. | |
Lib Dems. Now that Ed Miliband has effectively ruled out an in/out EU | :01:05. | :01:07. | |
referendum, how does UKIP deal with Tory claims that a vote for UKIP | :01:08. | :01:08. | |
means no chance And in the Midlands, we must build | :01:09. | :01:14. | |
more homes where people want them than not where they don't. So why | :01:15. | :01:17. | |
are brownfield sites overlooked by developers with designs on our green | :01:18. | :01:19. | |
spaces instead? restoring confidence in the safety | :01:20. | :01:23. | |
of cycling. The three areas of London getting a cash boost to try | :01:24. | :01:24. | |
something different. And with me as always our top | :01:25. | :01:36. | |
political panel - Nick Watt, Helen Lewis and Janan Ganesh. They'll be | :01:37. | :01:38. | |
tweeting their thoughts using the hashtag #bbcsp throughout the | :01:39. | :01:43. | |
programme. So, just three months after his last major financial | :01:44. | :01:46. | |
statement, George Osborne will be at the despatch box again on Wednesday, | :01:47. | :01:51. | |
delivering his 2014 Budget. The Chancellor has already previewed his | :01:52. | :01:54. | |
own speech, pledging to build what he calls a "resilient economy". The | :01:55. | :02:05. | |
message I will give in the Budget is the economic plan is working but the | :02:06. | :02:08. | |
job is far from done. We need to build resilient economy which means | :02:09. | :02:12. | |
addressing the long-term weaknesses in Britain that we don't export | :02:13. | :02:16. | |
enough, invest enough, build enough, make enough. Those are the things I | :02:17. | :02:19. | |
will address because we want Britain to earn its way in the world. George | :02:20. | :02:24. | |
Osborne's opposite number, Ed Balls, has also been talking ahead of the | :02:25. | :02:27. | |
Budget. He says not everyone is feeling the benefit of the economic | :02:28. | :02:29. | |
recovery, and again attacked the Government's decision to reduce the | :02:30. | :02:36. | |
top rate of tax from 50 to 45%. George Osborne is only ever tough | :02:37. | :02:40. | |
when he's having a go at the week and the voiceless. Labour is willing | :02:41. | :02:43. | |
to face up to people on the highest incomes and say, I'm sorry, | :02:44. | :02:47. | |
justifying a big tax cut at this time is not fair. We will take away | :02:48. | :02:53. | |
the winter allowance from the richer pensioners, and I think that's the | :02:54. | :02:57. | |
right thing to do. George Osborne might agree, but he's not allowed to | :02:58. | :03:03. | |
say so. That was the Chancellor and the shadow chancellor. Janan, it | :03:04. | :03:06. | |
seems like we are in a race against time. No one argues that the | :03:07. | :03:10. | |
recovery is not under way, in fact it looks quite strong after a long | :03:11. | :03:14. | |
wait, but will it feed through to the living standards of ordinary | :03:15. | :03:19. | |
people in time for the May election? They only have 14 months to do it. | :03:20. | :03:23. | |
The big economic variable is business investment. Even during the | :03:24. | :03:28. | |
downturn, businesses hoarded a lot of cash. The question is, are they | :03:29. | :03:32. | |
confident enough to release that into investment and wages? Taking on | :03:33. | :03:36. | |
new people, giving them higher pay settlements. That could make the | :03:37. | :03:40. | |
difference and the country will feel more prosperous and this time next | :03:41. | :03:46. | |
year. But come to think of it, it strikes me, that how anticipated it | :03:47. | :03:50. | |
is, it's the least talked about Budget for many years. I think that | :03:51. | :03:53. | |
is because the economy has settled down a bit, but also because people | :03:54. | :03:58. | |
have got used to the idea that there is no such thing as a giveaway. | :03:59. | :04:02. | |
Anything that is a tax cut will be taken away as a tax rise or spending | :04:03. | :04:07. | |
cut. That's true during the good times but during fiscal | :04:08. | :04:10. | |
consolidation, it's avoidable. - unavoidable. There is a plus and | :04:11. | :04:17. | |
minus for the Conservatives here. 49% of people think the government | :04:18. | :04:21. | |
is on roughly the right course, but only 16% think that their financial | :04:22. | :04:23. | |
circumstances will improve this year. It will be a tough one for the | :04:24. | :04:29. | |
Labour Party to respond to. I agree with Janan. Everyone seems bored | :04:30. | :04:35. | |
with the run-up to the Budget. The front page of the Sunday Times was | :04:36. | :04:40. | |
about fox hunting, the front page of the Sunday Telegraph was about EU | :04:41. | :04:45. | |
renegotiation. Maybe we are saying this because there have not been | :04:46. | :04:49. | |
many leaks. We have got used to them, and most of the George Osborne | :04:50. | :04:54. | |
chat on Twitter was about how long his tie was. Freakishly long. I | :04:55. | :04:59. | |
wouldn't dare to speculate why. Anything we should read into that? I | :05:00. | :05:06. | |
don't know. For a long while there was no recovery, then it was it is a | :05:07. | :05:13. | |
weak recovery, and now, all right, it's strong but not reaching | :05:14. | :05:16. | |
everyone in the country. That is where we are in the debate. That's | :05:17. | :05:21. | |
right, and the Conservative MPs are so anxious and they are making | :05:22. | :05:27. | |
George Osborne announcing the rays in the personal allowance will go | :05:28. | :05:32. | |
up, saying it might go up to 10 750 from next year, and Conservative MPs | :05:33. | :05:40. | |
say that that's OK but we need to think about the middle voters. | :05:41. | :05:43. | |
People are saying the economy is recovering but no one is feeling it | :05:44. | :05:47. | |
in their pocket. These are people snagged in at a 40p tax rate. The | :05:48. | :05:51. | |
Tories are saying these are our people and we have to get to them. | :05:52. | :05:56. | |
He has given the Lib Dems more than they could have hoped for on raising | :05:57. | :06:02. | |
the threshold. Why is he not saying we have done a bit for you, now we | :06:03. | :06:06. | |
have to look after our people and get some of these people out of that | :06:07. | :06:13. | |
40% bracket? Partly because the Lib Dems have asked for it so | :06:14. | :06:15. | |
insistently behind-the-scenes. Somebody from the Treasury this week | :06:16. | :06:19. | |
told me that these debates behind the scenes between the Lib Dems and | :06:20. | :06:22. | |
Tories are incredibly tenacious and get more so every year. The Lib Dems | :06:23. | :06:26. | |
have been insistent about going further on the threshold. The second | :06:27. | :06:31. | |
reason is that the Tories think the issue can work for them in the next | :06:32. | :06:37. | |
election. They can take the credit. If they enthusiastically going to | :06:38. | :06:41. | |
?12,000 and make it a manifesto pledge, they can claim ownership of | :06:42. | :06:45. | |
the policy. The Liberal Democrats want to take it to 12,500, which | :06:46. | :06:50. | |
means you are getting into minimum wage territory. It's incredibly | :06:51. | :06:54. | |
expensive and the Tories are saying that maybe you would be looking at | :06:55. | :07:00. | |
the 40p rate. The Tories have played as well. There have been authorised | :07:01. | :07:04. | |
briefings about the 40p rate, and Cameron and Osborne have said that | :07:05. | :07:07. | |
their priority was helping the lowest paid which is a useful | :07:08. | :07:10. | |
statement to make and it appeals to the UKIP voters who are the | :07:11. | :07:15. | |
blue-collar workers. And we are right, the economy will determine | :07:16. | :07:20. | |
the next election? You assume so. It was ever that is. It didn't in 992 | :07:21. | :07:24. | |
or 1987. It did in 1992. Ed Miliband's announcement last week | :07:25. | :07:34. | |
that a Labour government would not hold a referendum on Europe unless | :07:35. | :07:36. | |
there's another transfer of powers from Britain to Brussels has | :07:37. | :07:39. | |
certainly clarified matters. UKIP say it just shows the mainstream | :07:40. | :07:44. | |
parties can't be trusted. The Conservatives think it means UKIP | :07:45. | :07:47. | |
voters might now flock back to them as the only realistic chance of | :07:48. | :07:50. | |
securing a referendum. Giles Dilnot reports. | :07:51. | :07:53. | |
When it comes to Europe and Britain's relation to it, the | :07:54. | :07:58. | |
question is whether the answer is answered by a question. To be in or | :07:59. | :08:02. | |
not to be in, that is the question, and our politicians have seemed less | :08:03. | :08:05. | |
interested in question itself but whether they want to let us answer | :08:06. | :08:09. | |
it. Labour clarified their position last week. There will be no transfer | :08:10. | :08:21. | |
of powers without an in out referendum, without a clear choice | :08:22. | :08:24. | |
as to whether Britain will stay in the EU. That seems yes to a | :08:25. | :08:30. | |
referendum, but hold on. I believe it is unlikely that this lock will | :08:31. | :08:33. | |
be used in the next Parliament. So that's a no. The Conservatives say | :08:34. | :08:37. | |
yes to asking, in 2017, if re-elected, but haven't always. In | :08:38. | :08:47. | |
2011, 81 Tory MPs defied the PM by voting for a referendum on EU | :08:48. | :08:49. | |
membership: the largest rebellion against a Tory prime minister over | :08:50. | :08:52. | |
Europe. Prompted by a petition from over 100,000 members of the public. | :08:53. | :09:03. | |
The wrong question at the wrong time said the Foreign Secretary of a | :09:04. | :09:05. | |
coalition Government including selfie-conciously-pro European Lib | :09:06. | :09:08. | |
Dems, who had a referendum pledge in their 2010 manifesto, but only in | :09:09. | :09:11. | |
certain circumstances. So we have the newspapers, and the public | :09:12. | :09:14. | |
meeting leaflets. UKIP have always wanted the question put regardless. | :09:15. | :09:17. | |
But Labour's new position may change things and The Conservatives think | :09:18. | :09:25. | |
so. I think it does, because, you know, we are saying very clearly, | :09:26. | :09:31. | |
like UKIP, we want a referendum but only a Conservative government can | :09:32. | :09:36. | |
deliver it because most suffer largest would say it is possible in | :09:37. | :09:41. | |
the first past the post system to have a UKIP government -- | :09:42. | :09:50. | |
sophologists. And then it's easy for as to say that if a UKIP vote lets | :09:51. | :09:57. | |
in a Conservative government, then they won't hold a referendum. UKIP | :09:58. | :10:03. | |
seem undaunted by the clarifications of the other parties, campaigning | :10:04. | :10:06. | |
like the rest but with a "tell it how it is, just saying what you re | :10:07. | :10:09. | |
thinking, we aren't like them" attitude. They seem more worried | :10:10. | :10:16. | |
about us and what we want, and I don't see that in the other parties. | :10:17. | :10:20. | |
In parts of the UK, like South Essex, it's a message they think is | :10:21. | :10:27. | |
working. They are taking the voters for granted again and people have | :10:28. | :10:30. | |
had enough. People are angry, they see people saying they will get a | :10:31. | :10:37. | |
vote on the European Union, but then it just comes down the road. They | :10:38. | :10:42. | |
were quick to capitalise on the announcements, saying only the | :10:43. | :10:48. | |
Conservatives will give you say so does it change things? Not really. | :10:49. | :10:54. | |
We have been talking about a referendum and having a debate on | :10:55. | :10:57. | |
the European Union for years, and the other parties are playing catch | :10:58. | :11:02. | |
up. They have a trust issue. Nobody trusts them on the European Union | :11:03. | :11:06. | |
and that is why people come to us. Who the average UKIP voter is, or | :11:07. | :11:09. | |
how they voted before is complicated, and what dent they | :11:10. | :11:11. | |
might make on Conservative and Labour votes in 2015 is trickier | :11:12. | :11:14. | |
still, but someone's been crunching the numbers anyway. We reckon it is | :11:15. | :11:23. | |
between 25 and 30% of the electorate broadly share the UKIP motivation, | :11:24. | :11:26. | |
so to top out at that level would be difficult. That's an awful lot of | :11:27. | :11:30. | |
voters, but it's not the majority, and this is the reason why the main | :11:31. | :11:35. | |
parties can't afford to just openly appealed to the UKIP electorate too | :11:36. | :11:38. | |
hard because the elections are won and lost amongst the other 70%, the | :11:39. | :11:43. | |
middle-class, the graduate, the younger, ethnic minorities. An | :11:44. | :11:48. | |
appeal to the values of UKIP voters will alienate some of the other | :11:49. | :11:52. | |
groups, and they are arguably more significant in winning the election. | :11:53. | :11:55. | |
Whatever, the numbers UKIPers seem doggedly determined to dig away at | :11:56. | :11:58. | |
any support the other parties have previously enjoyed. | :11:59. | :12:02. | |
Giles Dilnot reporting. UKIP's leader, Nigel Farage, joins me now | :12:03. | :12:04. | |
for the Sunday Interview. Nigel Farage, welcome back. Good | :12:05. | :12:21. | |
morning. So the Labour Party has shot a fox. If Ed Miliband is the | :12:22. | :12:24. | |
next by Minister, there will not be a referendum customer there's a long | :12:25. | :12:29. | |
way between now and the next election, and Conservative party | :12:30. | :12:33. | |
jobs and changes. We had a cast iron guarantee of a referendum from | :12:34. | :12:36. | |
camera, then he three line whip people to vote against it, and now | :12:37. | :12:40. | |
they are for it. What the Labour Party has done is open up a huge | :12:41. | :12:44. | |
blank to us, and that is what we will go for in the European | :12:45. | :12:47. | |
elections this coming year in May. I think there is a very strong chance | :12:48. | :12:51. | |
that Labour will match the Conservative pledge by the next | :12:52. | :12:55. | |
general election. There may be, but at the moment he has ruled it out, | :12:56. | :13:00. | |
and if he does not change his mind and goes into the election with the | :13:01. | :13:03. | |
policy as it is, the only chance of a referendum is a Tory government. | :13:04. | :13:10. | |
If you think the Tories will form a majority, which I think is unlikely. | :13:11. | :13:14. | |
Remember, two thirds of our voters would never vote Conservative | :13:15. | :13:17. | |
anyway. There is still this line of questioning that assumes UKIP voters | :13:18. | :13:21. | |
are middle-class Tories. We have some voters like that, but most of | :13:22. | :13:25. | |
them are coming to us from Labour, some from the Lib Dems and a lot of | :13:26. | :13:30. | |
nonvoters. But it come the election you failed to change Mr Miliband's | :13:31. | :13:37. | |
line, I repeat, the only chance of a referendum, if you want a | :13:38. | :13:40. | |
referendum, if that is what matters, and the polls suggest it doesn't | :13:41. | :13:44. | |
matter to that many people, but if that is what matters, the only way | :13:45. | :13:47. | |
you can get one is to vote Conservative. No, because you have a | :13:48. | :13:52. | |
situation in key marginals, especially where all three parties | :13:53. | :13:56. | |
are getting a good share, where we will see, and this depends a lot on | :13:57. | :14:00. | |
the local elections and the European elections, there are target | :14:01. | :14:06. | |
constituencies where UKIP has a reasonably good chance of winning a | :14:07. | :14:10. | |
seat, and that will change the agenda. Every vote for UKIP makes a | :14:11. | :14:17. | |
Tory government less likely. Arab voters are not Tory. Only a third of | :14:18. | :14:20. | |
the UKIP boat comes from the Conservative party -- our voters are | :14:21. | :14:26. | |
not Tory. -- the UKIP vote. It was mentioned earlier, about blue-collar | :14:27. | :14:30. | |
voters. We pick up far more Labour Party and nonvoters than | :14:31. | :14:33. | |
conservatives. On the balance of what the effect of the UKIP boat | :14:34. | :14:37. | |
is, the Tories should worry about us, they should worry about the fact | :14:38. | :14:41. | |
they have lost faith with their own electorate. Even if there is a | :14:42. | :14:46. | |
minority Ed Miliband government it means no referendum. Labour and the | :14:47. | :14:49. | |
Liberal Democrats are now at one on the matter. The next election is in | :14:50. | :14:54. | |
a few weeks time, the European elections. What happens in those | :14:55. | :14:58. | |
elections will likely change the party stands and position on a | :14:59. | :15:01. | |
referendum. The fact that Ed Miliband has said this means, for | :15:02. | :15:06. | |
us, our big target on the 22nd of May will be the Labour voters in the | :15:07. | :15:10. | |
Midlands and northern cities, and if we do hammer into that boat and we | :15:11. | :15:14. | |
are able to beat Labour on the day, there's a good chance of their | :15:15. | :15:23. | |
policy changing. One poll this morning suggests Labour is close to | :15:24. | :15:30. | |
you at 28, the Conservatives down at 21, the Lib Dems down at eight. You | :15:31. | :15:37. | |
are taking votes from the Conservatives and the Liberal | :15:38. | :15:41. | |
Democrats. We are certainly taking votes from the Lib Dems but that is | :15:42. | :15:48. | |
comparing the poll with one year ago when I don't think most people knew | :15:49. | :15:54. | |
what the question really was. You seem to be in an impossible position | :15:55. | :15:59. | |
because the better you do in a general election, the less chance | :16:00. | :16:04. | |
there will be a referendum by 2 20. No, look at the numbers. Only a | :16:05. | :16:10. | |
third of our voters are Conservatives. When we have polled | :16:11. | :16:16. | |
voters that have come to us, we asked them if there was no UKIP | :16:17. | :16:20. | |
candidate who would you vote for, less than one in five said | :16:21. | :16:25. | |
Conservative. Less than one in five UKIP voters would be tempted to vote | :16:26. | :16:30. | |
Conservative under any circumstances so the arithmetic does not suggest | :16:31. | :16:35. | |
we are the Conservative problem it suggests we are hurting all of the | :16:36. | :16:38. | |
parties and the reason the Tories are in trouble is because they have | :16:39. | :16:44. | |
lost their traditional base. Why do you think Nick Clegg is debating | :16:45. | :16:50. | |
Europe? I think they are in trouble, at 8% they could be wiped | :16:51. | :16:59. | |
out, they could go from 12 to nothing and I think it is a chance | :17:00. | :17:03. | |
for Nick Clegg to raise their profile. They are fringe party with | :17:04. | :17:10. | |
respect to this contest so I see why he wants to do it. One of our big | :17:11. | :17:15. | |
criticisms is that we have not been able to have a full debate on | :17:16. | :17:19. | |
national television on the alternatives of the European Union | :17:20. | :17:24. | |
so I am looking forward to it. How are you preparing? I think you can | :17:25. | :17:37. | |
be over scripted with these things. Are you not doing mock debates? No, | :17:38. | :17:43. | |
I am checking my facts and figures and making sure that I can show the | :17:44. | :17:48. | |
British people that in terms of jobs, we would be far better off not | :17:49. | :17:53. | |
being within the European Union not being within its rule book, not | :17:54. | :17:58. | |
suffering from some of the green taxes they are putting on the | :17:59. | :18:04. | |
manufacturing industry. The idea that 3 million jobs are at risk I | :18:05. | :18:09. | |
want to show why that is nonsense. Who do you think is playing you in | :18:10. | :18:16. | |
their mock debates? They probably went to the pub and found someone! | :18:17. | :18:23. | |
We will see. You have promised to do whatever it takes to fund your | :18:24. | :18:27. | |
European election campaign, how much has been given so far? Just give it | :18:28. | :18:34. | |
a few weeks and you will see what Paul is planning to do. He has made | :18:35. | :18:40. | |
a substantial investment in the campaign already. How much? I'm not | :18:41. | :18:48. | |
answering that for now. We are well on our way to a properly funded | :18:49. | :18:53. | |
campaign and our big target will be the big cities and the working vote | :18:54. | :18:59. | |
in those communities. Your deputy chairman Neil Hamilton is another | :19:00. | :19:03. | |
former Tory, he says so far we haven't seen the colour of his | :19:04. | :19:09. | |
money. Exactly two weeks ago, and things have changed since then. Mr | :19:10. | :19:15. | |
Sykes has written a cheque since then? Yes. This morning's papers | :19:16. | :19:25. | |
saying you will be asking MEPs to contribute ?50,000 each, is that | :19:26. | :19:32. | |
true? Over the next five years, yes. Not for the European campaign. So | :19:33. | :19:38. | |
lack of money will not be an excuse. We will have a properly funded | :19:39. | :19:44. | |
campaign. How we raise the kind of money needed to fund the general | :19:45. | :19:48. | |
election afterwards is another question. What is UKIP's policy on | :19:49. | :19:58. | |
paying family members? We don't encourage it and I didn't employ any | :19:59. | :20:03. | |
family member for years. My wife ended up doing the job and paid for | :20:04. | :20:10. | |
the first seven years of my job She is paid now? Until May, then she | :20:11. | :20:17. | |
comes off the payroll am which leaves me with a huge problem. In | :20:18. | :20:25. | |
2004 you said, UKIP MEPs will not employ wives and there will be no | :20:26. | :20:31. | |
exceptions. An exception was made because I became leader of the | :20:32. | :20:35. | |
National party as well as a leader of the group in European | :20:36. | :20:39. | |
Parliament. Things do change in life, and you can criticise me for | :20:40. | :20:43. | |
whatever you like, but I cannot be criticised for not having a big | :20:44. | :20:48. | |
enough workload. No, but you didn't employ your wife when you had told | :20:49. | :20:58. | |
others not to do it your party. Nobody else in my party has a big | :20:59. | :21:01. | |
job in Europe and the UK. We made the exception for this because of | :21:02. | :21:06. | |
very unusual circumstances. It also looks like there was a monetary | :21:07. | :21:11. | |
calculation. Listen to this clip from a BBC documentary in 2000. It | :21:12. | :21:18. | |
is a good job. I worked it out because so much of what you get is | :21:19. | :21:24. | |
after tax that if you used the secretarial allowances to pay your | :21:25. | :21:27. | |
wife on top of the other games you can play, I reckon this job in | :21:28. | :21:35. | |
Stirling term is over a quarter of ?1 million a year. That is what you | :21:36. | :21:38. | |
would need to earn working for Goldman Sachs or someone like that. | :21:39. | :21:45. | |
I agree with that. More importantly the way you really make money in the | :21:46. | :21:48. | |
European Parliament is being their five days a week, because you sign | :21:49. | :21:53. | |
in every day, you get 300 euros every day, and that is how people | :21:54. | :21:59. | |
maxed out. The criticism of me is that I am not there enough so | :22:00. | :22:04. | |
whatever good or bad I have done in the European Parliament, financial | :22:05. | :22:08. | |
gain has not been one of the benefits. There have been | :22:09. | :22:12. | |
allegations of you also employing a former mistress on the same European | :22:13. | :22:18. | |
Parliamentary allowance, you deny that? I am very upset with the BBC | :22:19. | :22:23. | |
coverage of this. The ten o'clock news run this as a story without | :22:24. | :22:28. | |
explaining that that allegation was made using Parliamentary privilege | :22:29. | :22:32. | |
by somebody on bail facing serious fraud charges. I thought that was | :22:33. | :22:40. | |
pretty poor. You have a chance to do that and you deny you have employed | :22:41. | :22:48. | |
a former mistress? Yes, but if you look at many of the things said over | :22:49. | :22:52. | |
the last week, I think it is becoming pretty clear to voters that | :22:53. | :22:56. | |
the establishment are becoming terrified of UKIP and they will use | :22:57. | :23:03. | |
anything they can find to do us down in public. Is an MEP employs his | :23:04. | :23:10. | |
wife and his former mistress, that would be resigning matter, wouldn't | :23:11. | :23:16. | |
it? Yes, particularly if the assumption was that money was being | :23:17. | :23:20. | |
taped for work but was not being done. Who do you think is behind | :23:21. | :23:27. | |
these stories? It is all about negative, it is all about attacks, | :23:28. | :23:33. | |
but I don't think it is actually going to work because so much of | :23:34. | :23:37. | |
what has been said in the last week is nonsense. A reputable daily | :23:38. | :23:42. | |
newspaper said I shouldn't be trusted because I had stored six | :23:43. | :23:46. | |
times for the Conservative party, I have never even stored in a local | :23:47. | :23:50. | |
council election. I think if you keep kicking an underdog, it will | :23:51. | :23:56. | |
make the British people rally around us. Is it the Conservatives? Yes, | :23:57. | :24:07. | |
and the idea that all of our voters are retired colonels is simply not | :24:08. | :24:12. | |
true. We get some voters from the Labour side as well. Would you | :24:13. | :24:22. | |
consider standing in a Labour seat if you are so sure you are getting | :24:23. | :24:27. | |
Labour votes? Yes, but the key for UKIP is that it has to be marginal. | :24:28. | :24:35. | |
Just for your own future, if you fail to win a single soul -- single | :24:36. | :24:43. | |
seat in the general election, if Ed Miliband fails to win an outright | :24:44. | :24:48. | |
majority, will you stand down as UKIP leader? I would think within | :24:49. | :24:53. | |
about 12 hours, yes. I will have failed, I got into politics not | :24:54. | :24:58. | |
because I wanted a career in politics, far from it. I did it | :24:59. | :25:03. | |
because I don't think this European entanglement is right for our | :25:04. | :25:06. | |
country. I think a lot of people have woken up to the idea we have | :25:07. | :25:11. | |
lost control of our borders and now is the moment for UKIP to achieve | :25:12. | :25:18. | |
what it set out to do. Will UKIP continue without you if you stand | :25:19. | :25:24. | |
down? Of course it will. I know that everyone says it is a one-man band | :25:25. | :25:34. | |
but it is far from that. We have had some painful moments, getting rid of | :25:35. | :25:36. | |
old UKIP, new UKIP is more professional, less angry and it is | :25:37. | :25:40. | |
going places. Nigel Farage, thank you for being with us. | :25:41. | :25:46. | |
So, what else should we be looking out for in Wednesday's Budget | :25:47. | :25:49. | |
statement? We've compiled a Sunday Politics guide to the Chancellor's | :25:50. | :25:50. | |
likely announcements. Eyes down everyone, it's time for a | :25:51. | :25:54. | |
bit of budget bingo. Let's see what we will get from the man who lives | :25:55. | :25:58. | |
at legs 11. Despite some good news on the economy, George Osborne says | :25:59. | :26:01. | |
that this will be a Budget of hard truths with more pain ahead in order | :26:02. | :26:04. | |
to get the public finances back under control. But many in the | :26:05. | :26:07. | |
Conservative party, including the former chancellor Norman Lamont | :26:08. | :26:10. | |
want Mr Osborne to help the middle classes by doing something about the | :26:11. | :26:13. | |
4.4 million people who fall into the 40% bracket. Around one million more | :26:14. | :26:20. | |
people pay tax at that rate compared to 2010 because the higher tax | :26:21. | :26:23. | |
threshold hasn't increased in line with inflation. Mr Osborne has | :26:24. | :26:28. | |
indicated he might tackle the issue in the next Conservative manifesto, | :26:29. | :26:31. | |
but for now he is focused on helping the low paid. It's likely we will | :26:32. | :26:37. | |
see another increase in the amount you can earn before being taxed | :26:38. | :26:43. | |
perhaps up another ?500 to ?10, 00. The Chancellor is going to flesh out | :26:44. | :26:46. | |
the details of a tax break for childcare payments, and there could | :26:47. | :26:49. | |
be cries of 'house' with the promise of more help for the building | :26:50. | :27:06. | |
industry. The Help To Buy scheme will be extended to 2020 and there | :27:07. | :27:10. | |
could be the go-ahead for the first Garden City in 40 years. Finally, | :27:11. | :27:13. | |
bingo regulars could be celebrating a full house with a possible cut in | :27:14. | :27:15. | |
bingo tax. And I've been joined in the studio | :27:16. | :27:18. | |
by the former Conservative chancellor Norman Lamont, in Salford | :27:19. | :27:20. | |
by the former Labour Cabinet minister Hazel Blears, and in | :27:21. | :27:23. | |
Aberdeen by the Lib Dem deputy leader, Malcolm Bruce. Let me come | :27:24. | :27:26. | |
to Norman Lamont first, you and another former Tory Chancellor, | :27:27. | :27:33. | |
Nigel Lawson, have called in the fall in the threshold for the rate | :27:34. | :27:43. | |
at which the 40p clicks in. I would have preferred an adjustment in the | :27:44. | :27:47. | |
Budget but I agree with what you are saying, it sounds like the | :27:48. | :27:53. | |
Chancellor will not do that. My main point is that you cannot go on | :27:54. | :27:57. | |
forever and forever increasing the personal allowance and not | :27:58. | :28:01. | |
increasing the 40% tax threshold because you are driving more and | :28:02. | :28:07. | |
more people into that band. It is an expensive policy because in order to | :28:08. | :28:10. | |
keep the number of people not paying tax constant, you have to keep | :28:11. | :28:16. | |
adjusting it each year. When this was introduced by Nigel Lawson, it | :28:17. | :28:22. | |
applied to one in 20 people, the 40% rate, it now applies to one in six | :28:23. | :28:30. | |
people. By next year, there will be 6 million people paying base. Why do | :28:31. | :28:34. | |
you think your Tory colleagues seem happy to go along with the Lib Dems | :28:35. | :28:40. | |
and target whatever money there is for tax cuts rather -- on the lower | :28:41. | :28:54. | |
paid rather than the middle incomes? They are not helping the lowest | :28:55. | :29:00. | |
paid. If you wanted to really help the lowest paid people you would | :29:01. | :29:03. | |
raise the threshold for national insurance contributions, which is | :29:04. | :29:10. | |
around ?6,000. Is it the Lib Dems stopping any rise in the 40p | :29:11. | :29:19. | |
threshold? We are concentrating on raising the lower threshold because | :29:20. | :29:25. | |
we believe that is the way to help those on lower incomes. Whilst they | :29:26. | :29:31. | |
haven't benefited as much as the lower paid they have participated | :29:32. | :29:34. | |
and I think people understand right now, if you were going to prioritise | :29:35. | :29:39. | |
the high earners, when we are still trying to help those on lower and | :29:40. | :29:44. | |
middle incomes who haven't enjoyed great pay increases but have got the | :29:45. | :29:48. | |
benefit of these tax increases, that is why we would like to do it for | :29:49. | :29:53. | |
the minimum wage level. But the poorest will not benefit at all The | :29:54. | :29:59. | |
poorest 16% already don't pay tax. Why don't you increase the threshold | :30:00. | :30:04. | |
at which National Insurance starts? You only have two earned ?5,500 | :30:05. | :30:13. | |
before you start to pay it. You ve got to remember that the raising of | :30:14. | :30:18. | |
the threshold to ?10,000 or more was something the Tories said we could | :30:19. | :30:23. | |
not afford. Why are you continuing to do it? If you want to help the | :30:24. | :30:30. | |
working poor, the way would be to take the lowest out of national | :30:31. | :30:36. | |
insurance. The view we take is they are benefiting, and have benefited | :30:37. | :30:39. | |
from, the raising of the tax threshold. You now have to earn | :30:40. | :30:45. | |
?10,000, we hope eventually 12, 00, and that means only people on very | :30:46. | :30:49. | |
low wages. If you opt out of national insurance, you're saying to | :30:50. | :30:53. | |
people that you make no contribution to the welfare system, so there is a | :30:54. | :30:59. | |
general principle that people should participate and paying, and also | :31:00. | :31:03. | |
claim when they need something out. We thought raising the threshold was | :31:04. | :31:07. | |
simple and effective at a time of economic austerity and the right way | :31:08. | :31:10. | |
to deliver a helpful support to welcoming people. -- working people. | :31:11. | :31:17. | |
With the Labour Party continue to raise the threshold, or do they | :31:18. | :31:21. | |
think there is a case that there are too many people being dragged into | :31:22. | :31:27. | |
the 40p tax bracket? If Norman Lamont thinks this is the right time | :31:28. | :31:30. | |
to benefit people who are reasonably well off rather than those who are | :31:31. | :31:34. | |
struggling to make ends meet, then genuinely, I say it respectfully, I | :31:35. | :31:37. | |
don't think he's living in the world the rest of us are. Most working | :31:38. | :31:42. | |
people have seen their wages effectively reduced by about ?1 00 | :31:43. | :31:46. | |
because they have been frozen, so the right thing is to help people on | :31:47. | :31:53. | |
modest incomes. I also understand that if the 40% threshold went up, | :31:54. | :31:56. | |
the people who would benefit the most, as ever, are the people who | :31:57. | :32:01. | |
are really well off, not the people in the middle. The Conservatives | :32:02. | :32:05. | |
have already reduced the 50p tax on people over ?150,000 a year, and we | :32:06. | :32:10. | |
have to concentrate on the people going out to work, doing their best | :32:11. | :32:14. | |
to bring their children up and have a decent life and need a bit of | :32:15. | :32:17. | |
help. I think raising the threshold is a good thing. We would bring back | :32:18. | :32:21. | |
the 10p tax, which we should never have abolished, and do things with | :32:22. | :32:27. | |
regard to childcare. At the moment, childcare costs the average family | :32:28. | :32:31. | |
as much as their mortgage, for goodness sake. We would give 25 | :32:32. | :32:35. | |
hours free childcare for youngsters over three and four years old. That | :32:36. | :32:38. | |
would be a massive boost the working families. We are talking about | :32:39. | :32:46. | |
nurses, tube drivers, warrant officers in the army. There are many | :32:47. | :32:49. | |
people who are not well off but have been squeezed in the way everybody | :32:50. | :32:54. | |
has been squeezed and they are finding it continuing. I am stunned | :32:55. | :32:59. | |
by Malcolm's argument where everybody should pay something so | :33:00. | :33:02. | |
you should not take people out of national insurance, but the | :33:03. | :33:05. | |
principle doesn't apply to income tax. You can stand that argument on | :33:06. | :33:11. | |
its head and apply it to income tax. Most people don't see a difference | :33:12. | :33:14. | |
between income tax and national insurance, it's the same thing to | :33:15. | :33:19. | |
most people. It is true that it isn't really an insurance fund and | :33:20. | :33:22. | |
there is an argument from merging both of them. But we have | :33:23. | :33:28. | |
concentrated on a simple tax proposition. Norman is ignoring the | :33:29. | :33:34. | |
fact the people on the 40% rate have benefited by the raising of the | :33:35. | :33:38. | |
personal allowance. To say they have been squeezed is unfair. The | :33:39. | :33:40. | |
calculation is that an ordinary taxpayer will be ?700 better off at | :33:41. | :33:47. | |
the current threshold, and about ?500 better off at the higher rate. | :33:48. | :33:51. | |
It is misleading to say the better off we'll be paying more. I agree | :33:52. | :33:56. | |
with Hazel, if you go to the 40% rate, it's the higher earners who | :33:57. | :33:59. | |
benefit the most, and we won't do that when the economy is not where | :34:00. | :34:04. | |
it was before the crash. How much will the lower paid be better off if | :34:05. | :34:11. | |
you reintroduce the 10p rate? Significantly better off. I don't | :34:12. | :34:15. | |
have the figure myself, but they'd be significantly better off and the | :34:16. | :34:21. | |
Budget should be a mixture of measures to help people who work | :34:22. | :34:25. | |
hard. That is why I think the childcare issue has to be | :34:26. | :34:29. | |
addressed. ?100 a week of the people with childcare payments. It is a | :34:30. | :34:35. | |
massive issue. We want the job is guaranteed to get young people back | :34:36. | :34:38. | |
into work. There's been hardly any discussion about that, and we have | :34:39. | :34:41. | |
nearly 1 million people who have been out of work for six months or | :34:42. | :34:45. | |
more, and as a country we need to do something to help that. 350,000 | :34:46. | :34:52. | |
full-time students, so it is a misleading figure. It is not a | :34:53. | :34:55. | |
million including full-time students. All parties do this. It | :34:56. | :35:01. | |
sounds to me, Malcolm Bruce, you have more in common with the Labour | :35:02. | :35:05. | |
Party than you do with the Conservatives. You want an annual | :35:06. | :35:09. | |
levy on houses over ?2 million, so does Labour. A lot of your members | :35:10. | :35:13. | |
want to scrap the so-called bedroom tax and so does labour. You think | :35:14. | :35:17. | |
every teacher should have a teaching qualification, and so does Labour. | :35:18. | :35:21. | |
Your policy on the EU referendum is the same. Let me go on. And you want | :35:22. | :35:26. | |
to scrap the winter fuel allowance for wealthy pensioners. We want to | :35:27. | :35:31. | |
make sure we get the public finances in order and we have grave | :35:32. | :35:34. | |
reservations about the Labour Party promises. But they followed your | :35:35. | :35:44. | |
spending plans in the first year. The point we are making is we can | :35:45. | :35:47. | |
make a fairer society and stronger economy if you keep the public | :35:48. | :35:51. | |
finances moving towards balance. We don't think the Labour Party will | :35:52. | :35:55. | |
take a stand that track. It is interesting that the Labour Party | :35:56. | :35:58. | |
want to introduce the 10p rate that Gordon Brown abolished. We consider | :35:59. | :36:04. | |
that before we can -- committed to the 0% rate -- we considered that. | :36:05. | :36:10. | |
It makes a complicated system difficult and we think it's better | :36:11. | :36:16. | |
doing it that way. As a fiscal conservative, why are you talking | :36:17. | :36:20. | |
about any tax cuts when the deficit is over ?100 billion, and | :36:21. | :36:23. | |
effectively, anything you propose today can only be financed by more | :36:24. | :36:28. | |
borrowing. I totally agree with you. I said that this week. I thought the | :36:29. | :36:33. | |
best thing would have no Budget. The main thing is to get the deficit | :36:34. | :36:37. | |
down. My argument is is that you have an adjustment in tax rates it | :36:38. | :36:40. | |
should be shared between the allowances and the higher rate, but | :36:41. | :36:45. | |
I don't think that the progress on the deficit is something we can give | :36:46. | :36:51. | |
up on. This is still a very long way to go. We're only halfway through. | :36:52. | :36:57. | |
Hazel, does it make sense to borrow for tax cuts? I am reluctant to do | :36:58. | :37:01. | |
this, but I agree with both Norman and Malcolm. Malcolm Bruce wants to | :37:02. | :37:08. | |
borrow for tax cuts. We absolutely need to get the deficit down and get | :37:09. | :37:12. | |
finances on a strong footing. But we also have to think about having some | :37:13. | :37:16. | |
spending in the system that in the longer run saves us money. We all | :37:17. | :37:20. | |
know we need to build new homes. I don't think it's necessarily the | :37:21. | :37:25. | |
right priority to give people in London mortgage relief in terms of | :37:26. | :37:30. | |
?600,000. We have to get the balance right. Sometimes it is right to | :37:31. | :37:34. | |
spend to save. I'm afraid we have run out of time. There will be | :37:35. | :37:40. | |
plenty more discussion in the lead up to the Budget on Wednesday. | :37:41. | :37:43. | |
It's just gone 11:35am. You're watching the Sunday Politics. We say | :37:44. | :37:47. | |
goodbye to viewers in Scotland who leave us now for Sunday Politics | :37:48. | :37:51. | |
Scotland. Coming up here in 20 minutes, Frances O'Grady, the | :37:52. | :37:54. | |
General Secretary of the TUC, joins us discuss the | :37:55. | :38:05. | |
Hello once again from the Mhdlands. I'm Patrick Burns. And we'rd joined | :38:06. | :38:11. | |
today by a pair of radical reforming mavericks. A Labour MP who's | :38:12. | :38:14. | |
actually campaigned for electoral reform. And a Conservative LP who | :38:15. | :38:18. | |
wants all`women short lists. Caroline Spelman, Conservathve MP | :38:19. | :38:21. | |
for Meriden, and former Envhronment Secretary. And Richard Burddn, | :38:22. | :38:25. | |
Labour MP for Birmingham Northfield, is a Shadow Transport Minister. A | :38:26. | :38:32. | |
very warm welcome to you both. First of all today, let's t`lk about | :38:33. | :38:35. | |
what George Osborne's Budget briefcase might have in store for us | :38:36. | :38:39. | |
here. He was in our part of the country earlier this year, `t the | :38:40. | :38:42. | |
headquarters in Coleshill, Warwickshire, of the car parts maker | :38:43. | :38:45. | |
Sertec. 400 new jobs there were he said, a vote of confidence hn the | :38:46. | :38:50. | |
Midlands and in his economic plan. And all the signs are that, on | :38:51. | :38:54. | |
Wednesday, he'll be sticking to that plan. Plan A. And, Caroline, the | :38:55. | :39:00. | |
problems with Plan A is that, in the public mind, it is so often equated | :39:01. | :39:03. | |
to cuts, cuts, cuts. That mdans blame, blame, blame for your | :39:04. | :39:05. | |
government, especially health workers with a very stingy pay deal. | :39:06. | :39:11. | |
Let's be clear that Plan A has delivered the fastest rate of growth | :39:12. | :39:14. | |
of any economy in Europe. And I think it absolutely vindicates the | :39:15. | :39:19. | |
standards that George Osborne took. `` the stands. We inherited a | :39:20. | :39:22. | |
mammoth deficit from the last government. And we've still got the | :39:23. | :39:30. | |
job to finish off repairing the nation's finances. But | :39:31. | :39:32. | |
notwithstanding that, 1.6 mhllion jobs are being created in the | :39:33. | :39:35. | |
private sector. Many of thel here in the West Midlands. Huge success of | :39:36. | :39:41. | |
companies like Jaguar Land Rover. So let's not take away from thd success | :39:42. | :39:45. | |
of Plan A. No doubt that is an argument that he will put on | :39:46. | :39:49. | |
Wednesday. But what do you think should be in that briefcase on | :39:50. | :39:52. | |
Wednesday on budget day? Goodness knows. I mean, it is good to see | :39:53. | :39:58. | |
things looking up a bit. But it s frankly taken long enough. @nd I | :39:59. | :40:01. | |
think what this budget has got to address is what my constitudnts | :40:02. | :40:04. | |
said. What ordinary people feel You know, I was just told this lorning | :40:05. | :40:08. | |
about there being 1800 referrals to foodbanks, just in my area. Five | :40:09. | :40:11. | |
years ago, there was 20 young people long`term unemployed. Now, xou're | :40:12. | :40:17. | |
talking about 240. What we need we think, is a jobs guarantee for young | :40:18. | :40:21. | |
people, so we start to give young people the opportunities th`t they | :40:22. | :40:29. | |
deserve. More and more people, especially young people, ard feeling | :40:30. | :40:32. | |
disconnected from this recovery elsewhere. A couple of things. | :40:33. | :40:35. | |
People often misunderstand that it is the huge increase in energy | :40:36. | :40:38. | |
prices globally that has made it very hard for people with their | :40:39. | :40:41. | |
household budgets. You've got to keep the lights on. So you're going | :40:42. | :40:45. | |
to pay your electricity bill. That means, if there is food avahlable | :40:46. | :40:48. | |
that you can get from a foodbank, people will tend to go. And what | :40:49. | :40:51. | |
about the million apprenticdships that are being created to connect | :40:52. | :40:55. | |
young people at the end of their education with a job? I think that's | :40:56. | :40:58. | |
been a very successful policy. Briefly, Richard, I heard Ed Balls | :40:59. | :41:01. | |
in Birmingham saying that hd was daunted by the prospect of becoming | :41:02. | :41:05. | |
Chancellor. Should a British public welcome a Chancellor who fedls | :41:06. | :41:08. | |
daunted? I think it's perfectly realistic. I mean, when the next | :41:09. | :41:12. | |
general election comes along, you will have had five years of frankly | :41:13. | :41:16. | |
the wrong policies. So it's going to be a big, big task. But I think | :41:17. | :41:19. | |
Caroline's right. Energy prhces are an issue. That's why we want to see | :41:20. | :41:23. | |
a freeze. OK. Thank you. Still to come, the UKIP leader Nigel | :41:24. | :41:27. | |
Farage under attack. Ridiculed at the Liberal Democrat conferdnce in a | :41:28. | :41:30. | |
send`up that's gone viral on the internet. Then rounded on in the | :41:31. | :41:33. | |
European Parliament by a former colleague. We'll have much, much | :41:34. | :41:38. | |
more on all this coming up ` little later. | :41:39. | :41:44. | |
Well, now, "To build more homes in sensible places. Making the most of | :41:45. | :41:48. | |
every inch of brownfield land". That's the declared intent of the | :41:49. | :41:51. | |
Communities Secretary, Eric Pickles. And yet, time and time again, we | :41:52. | :41:55. | |
hear there's a dash by developers for greenfield sites, while | :41:56. | :41:57. | |
brownfield ones lie untouchdd. Here's our BBC Stoke Political | :41:58. | :41:59. | |
Reporter Phil McCann. It was all meant to look so | :42:00. | :42:12. | |
different. Where neighbours once lived, now dereliction. Thotsands of | :42:13. | :42:18. | |
terraced homes were meant to be knocked down across Stoke`on`Trent | :42:19. | :42:20. | |
under the national Pathfinddr programme. People come down here and | :42:21. | :42:27. | |
see these here. Then they sde that round the corner, and they don't | :42:28. | :42:31. | |
want to buy these. There is such an eyesore around the corner. This was | :42:32. | :42:35. | |
the vision of the future. A rejuvenated housing market that has | :42:36. | :42:38. | |
been realised in some parts of the city. But elsewhere, the terraces | :42:39. | :42:41. | |
have gone, but locals are still waiting for developers to move in. | :42:42. | :42:45. | |
It would make a lot of diffdrence, because it would make the area look | :42:46. | :42:49. | |
nice. And you would have a lot more people living around here. Hn 2 03, | :42:50. | :42:53. | |
leaders here in North Staffordshire hoped their renewal scheme would | :42:54. | :42:56. | |
lead to the demolition of around 14,500 houses. But when the | :42:57. | :43:00. | |
government scrapped the schdme three years ago, fewer than 2000 have | :43:01. | :43:03. | |
actually been knocked down. But they also hoped it would lead to the | :43:04. | :43:07. | |
rebuilding of around 12,500 homes. But by 2011, only a few hundred had | :43:08. | :43:13. | |
been completed. There is finally progress, though. | :43:14. | :43:18. | |
On this site, 140 homes are being built where once terraces stood We | :43:19. | :43:22. | |
are able to provide local investment in the economy. We are provhding | :43:23. | :43:29. | |
seven new apprentices. 50% of the labour on`site will be from local | :43:30. | :43:33. | |
community. We are investing in community projects. It helps | :43:34. | :43:37. | |
regenerate the area as well as providing good quality houshng. The | :43:38. | :43:40. | |
City Council in Stoke`on`Trdnt insists things are finally looking | :43:41. | :43:43. | |
up. But admits developing ddrelict brownfield land is difficult. We | :43:44. | :43:47. | |
know that there are more attractive sites, like the greenfield, but we | :43:48. | :43:50. | |
know that we've got lots of brownfield sites. It's about how we | :43:51. | :43:53. | |
make them more attractive to developers. The problem for places | :43:54. | :43:58. | |
like Stoke`on`Trent is placds like this in nearby Newcastle`under`Lyme, | :43:59. | :44:00. | |
where developers would rathdr build after the government changed | :44:01. | :44:03. | |
planning rules. A recent proposal here was refused. But the fdar is | :44:04. | :44:08. | |
the builders will just try `gain. There are significant numbers of | :44:09. | :44:11. | |
sites, both within the borotgh and more so in the city of | :44:12. | :44:19. | |
Stoke`on`Trent. But all brownfield sites that are begging for | :44:20. | :44:22. | |
redevelopment. Clearly, if xou go ahead and build on greenfields, | :44:23. | :44:25. | |
these sites will remain vac`nt and will be a blight on the landscape. | :44:26. | :44:28. | |
Developers applying for planning permission are represented by | :44:29. | :44:32. | |
companies like this one. So should the government intervene? The | :44:33. | :44:36. | |
government needs to have a programme over and above its affordable | :44:37. | :44:39. | |
programme, which is important. But a programme to get brownfield land | :44:40. | :44:42. | |
cracking again and get the balance of brownfield and greenfield that | :44:43. | :44:45. | |
currently isn't there. The government insists planning policies | :44:46. | :44:47. | |
prioritise brownfield development. But developers are finding ht easier | :44:48. | :44:55. | |
to prioritise the countryside. Yes, the challenges of building new | :44:56. | :44:58. | |
homes where they wanted and not where they are not. Phil McCann | :44:59. | :45:02. | |
reporting there. Let's get `n expert view on this from a leading | :45:03. | :45:05. | |
consultant on planning, regdneration and the preservation of the | :45:06. | :45:08. | |
countryside. Gerald Kells h`s long experience working with, among | :45:09. | :45:10. | |
others, the Campaign to Protect Rural England. We've seen there a | :45:11. | :45:14. | |
variety of explanations for this apparent shortfall of brownfield | :45:15. | :45:17. | |
development. As an expert in this field, what is your explanation for | :45:18. | :45:22. | |
what is happening? I think one of the bigger fundamental problems is | :45:23. | :45:25. | |
this obsession with very long` term housing numbers. That forces local | :45:26. | :45:28. | |
authorities to allocate large amounts of greenfield land. We had | :45:29. | :45:32. | |
it under the regional space strategy. We were supposed to get | :45:33. | :45:36. | |
rid of it. It still seems to linger on. The other issue that was raised | :45:37. | :45:42. | |
there was about where is thd money to support brownfield development? | :45:43. | :45:45. | |
We've seen in Stoke` on`Trent the loss of one form of funding. Places | :45:46. | :45:49. | |
like the Black Country despdrately need jobs for local people, building | :45:50. | :45:53. | |
local houses. We need to have that as well as the right planning rules. | :45:54. | :46:02. | |
I'm not sure we're at a point where we can say that really brownfield | :46:03. | :46:05. | |
land is getting prioritised over greenfield. And there are obvious | :46:06. | :46:08. | |
difficulties, from the point of view of developers, often the cost of | :46:09. | :46:11. | |
demolition. Sometimes this can involve contaminated land as well. | :46:12. | :46:16. | |
So, in a way, you can understand if there is a greater attraction in | :46:17. | :46:20. | |
simple greenfield development. Quite obviously, there are advant`ges in | :46:21. | :46:23. | |
developing on a greenfield site You have to incentivise develophng on | :46:24. | :46:26. | |
brownfield land. But it is not entirely that. There has bedn a long | :46:27. | :46:34. | |
history over the lobbying that has been done by house` building | :46:35. | :46:37. | |
interests to get greenfield land allocated. And once it is allocated, | :46:38. | :46:41. | |
to have the easier option. @nd that is something which is very worrying | :46:42. | :46:44. | |
with them the National Planning Policy Framework and the wax it is | :46:45. | :46:47. | |
actually working out in Loc`l Authorities. And the pressure they | :46:48. | :46:51. | |
are being put on to allocatd greenfield land. And yet, in | :46:52. | :46:58. | |
Caroline's constituency, in North Solihull. | :46:59. | :47:02. | |
In Richard's Longbridge, possibly one of the biggest brownfield sites | :47:03. | :47:09. | |
of all, there has been a lot of both new build and refurbishment of | :47:10. | :47:13. | |
existing stock. Yeah, some of that is hangovers from the past. But some | :47:14. | :47:18. | |
of that is new and very valtable. But we are also seeing other things | :47:19. | :47:22. | |
working against that. The government makes a very strong statement | :47:23. | :47:25. | |
recently about green belt. But greenfield land which is outside the | :47:26. | :47:28. | |
protected green belt has bedn very vulnerable. And you can see that | :47:29. | :47:32. | |
across areas like Staffordshire and Warwickshire. I mentioned | :47:33. | :47:33. | |
Longbridge, Richard, becausd in your constituency there, the govdrnment | :47:34. | :47:36. | |
policy clearly does appear to be working. Well, I mean, therd are | :47:37. | :47:39. | |
2000 houses being built there. And that is good news. But we rdally do | :47:40. | :47:43. | |
need to get house` building going faster. And I think there are | :47:44. | :47:46. | |
different ways we can do th`t. That's why we've set up this special | :47:47. | :47:50. | |
commission to look at this. But one of the things we've got to get | :47:51. | :47:53. | |
through to developers, something which Gerald was alluding to, is | :47:54. | :47:56. | |
there's got to be that they have to know that, in a sense, if they don't | :47:57. | :48:01. | |
use it, they are going to lose it. We've got to make sure that sites | :48:02. | :48:04. | |
that could be developed for housing, and are sustainable, and th`t is | :48:05. | :48:07. | |
important, actually are devdloped. Not just sitting there waithng for | :48:08. | :48:11. | |
the price to go up. Eric Pickles walks the walk, talks the t`lk. Says | :48:12. | :48:14. | |
he wants to see brownfield development. But under his watch, | :48:15. | :48:17. | |
the record shows that it's just not catching up with where it ndeds to | :48:18. | :48:21. | |
be, brownfield. Well, there is an enormous downtown in the hotsing | :48:22. | :48:24. | |
market. And one of the big problems is that people were overstrdtched | :48:25. | :48:27. | |
financially and the banks are reluctant to lend. But set `gainst | :48:28. | :48:30. | |
that, right through that financial crisis, we've been building | :48:31. | :48:32. | |
affordable homes in Solihull. Eric Pickles' department has givdn | :48:33. | :48:35. | |
Solihull Council ?9 million worth of loan to get this programme going. | :48:36. | :48:39. | |
But isn't it a drop in the bucket by comparison with the scale of the | :48:40. | :48:42. | |
problem we've got? There ard actually a thousand extra homes in a | :48:43. | :48:45. | |
borough where we've got housing waiting lists. The important point | :48:46. | :48:50. | |
about regenerating council dstates, and you can do it anywhere hn the | :48:51. | :48:54. | |
country, you can do that in Birmingham, is that the land values | :48:55. | :48:57. | |
are sufficiently low that you can deliver affordable housing. Of | :48:58. | :49:00. | |
course the developers want to build on greenfield, because they can sell | :49:01. | :49:03. | |
expensive homes with a lovely view in greenfield sites. But wh`t isn't | :49:04. | :49:08. | |
in place is no infrastructure. The advantage of a brownfield shte is | :49:09. | :49:13. | |
the infrastructure is already there. It is usually close to work, to | :49:14. | :49:16. | |
jobs, and a more sustainabld solution. Does that sound rdasonable | :49:17. | :49:20. | |
before we go back to Gerald? I think that is fair. It is important we | :49:21. | :49:24. | |
prioritise brownfield, but we got to be doing it in practice. And this is | :49:25. | :49:28. | |
where I think another thing Gerald said is right. House`building has | :49:29. | :49:31. | |
got to be linked to employmdnt creation. It's got to be linked to, | :49:32. | :49:34. | |
in the jargon, regeneration. If we do that, we can get things going. | :49:35. | :49:38. | |
But we haven't seen enough of that in the last few years. Quickly. And | :49:39. | :49:42. | |
councils who do build more homes for people get a new homes bonus. And | :49:43. | :49:46. | |
that is an incentive to regdnerate these sites. Final word on this to | :49:47. | :49:49. | |
you, Gerald. If you ruled the world, what is your position? GERALD | :49:50. | :49:53. | |
LAUGHS. The new homes bonus doesn't just go if they build on brownfield | :49:54. | :49:57. | |
land, it goes wherever they build. So that doesn't get us out of this | :49:58. | :50:01. | |
kind of conundrum. But one of the real issues is that if you go out to | :50:02. | :50:05. | |
some of our villages around the area, and they are being intndated | :50:06. | :50:08. | |
with applications to build, because of the allowances in the National | :50:09. | :50:10. | |
Planning Policy Framework. Clearly, we could proceed further. Btt very | :50:11. | :50:14. | |
briefly... Very important for all listeners is that, if a loc`l plan | :50:15. | :50:17. | |
is in place to protect the villages, that's the most important thing | :50:18. | :50:21. | |
That's it. Time is up. If they get it through. Thank you very luch | :50:22. | :50:24. | |
Particular thanks to you, Gdrald, for being here today. | :50:25. | :50:29. | |
Right, two months to go to the European elections. And, surprise | :50:30. | :50:32. | |
surprise, UKIP are having the heat turned up on them. First thd Lib | :50:33. | :50:35. | |
Dems attacked the "negative politics" of the smiling man | :50:36. | :50:38. | |
drinking a pint and smoking a cigarette. Then a local MEP, who | :50:39. | :50:42. | |
split from UKIP just months after being elected, rounded on Nhgel | :50:43. | :50:45. | |
Farage's use of taxpayers' loney in the European Parliament. Elhzabeth | :50:46. | :50:49. | |
Glinka explains. There now follows a partly satirical | :50:50. | :50:55. | |
broadcast by the Liberal Delocrats. Solihull MP, Lorely Burt, pdrformed | :50:56. | :50:58. | |
her own unique impersonation of the UKIP leader Nigel Farage at the | :50:59. | :51:02. | |
party's conference in York. Complete with mask, pint of beer and | :51:03. | :51:05. | |
obligatory cigarette. Hello, everybody. LAUGHTER. Nige hdre! | :51:06. | :51:14. | |
I'm looking for my mate Nick. The clip has gone viral, with | :51:15. | :51:18. | |
thousands of internet hits so far. Her Conservative opponent in next | :51:19. | :51:21. | |
year's general election, Julian Knight, described her efforts as | :51:22. | :51:23. | |
embarrassing. UKIP supporters called it petty. That was relatively gentle | :51:24. | :51:29. | |
compared to what followed from West Midlands MEP, Nikki Sinclaire, in | :51:30. | :51:40. | |
the European Parliament. Mr Farage, with unemployment still a problem | :51:41. | :51:43. | |
across Europe and indeed thd UK does Mr Farage think it's a fair use | :51:44. | :51:47. | |
of taxpayers' money, namely his secretarial allowance, to elploy not | :51:48. | :51:50. | |
only his wife Kirsten, but his former mistress Annabel Fuller? Is | :51:51. | :51:53. | |
this a responsible use of t`xpayers' money, Mr Farage? I don't sde any | :51:54. | :51:58. | |
need to answer that at all. UKIP later added the comments were | :51:59. | :52:02. | |
beneath contempt. Miss Fulldr said the allegations were false. Nikki | :52:03. | :52:06. | |
Sinclaire is also currently the subject of an inquiry by West | :52:07. | :52:09. | |
Midlands Police into accusations that she conspired to defratd the | :52:10. | :52:11. | |
European Parliament over her expenses. An accusation she denies. | :52:12. | :52:19. | |
Nikki Sinclaire, who'll be standing for her We Demand a Referendum Now | :52:20. | :52:24. | |
party in the European electhons And, Caroline, in a way, thhs | :52:25. | :52:27. | |
demonstrates that both Lorely and Nicki can go after Nigel Farage in a | :52:28. | :52:31. | |
way that maybe your party is reluctant to? Because it dods have a | :52:32. | :52:34. | |
habit of rebounding against the Tories when they go for UKIP in the | :52:35. | :52:38. | |
past? That is something important to go for here. Voters in the West | :52:39. | :52:42. | |
Midlands, in good faith, voted UKIP at the last set of European | :52:43. | :52:47. | |
elections. And both UKIP MEPs have split from their party, takhng the | :52:48. | :52:51. | |
funds of a member of the European Parliament to set up their own | :52:52. | :52:56. | |
party. `` of a European party. I think that's a betrayal of trust. | :52:57. | :53:02. | |
And I think people should think hard about that when they vote in the | :53:03. | :53:05. | |
next European election. UKIP is a protest party. It takes frol all the | :53:06. | :53:09. | |
parties. But I think the important point is, uniquely here in the West | :53:10. | :53:12. | |
Midlands, those UKIP MEPs pdople thought they voted for are no longer | :53:13. | :53:16. | |
UKIP. Well, there will be plenty of opportunity for UKIP and thd other | :53:17. | :53:19. | |
two parties we're talking about here to have their say in the cotrse of | :53:20. | :53:22. | |
the forthcoming campaign. Btt Richard, maybe you are not too keen | :53:23. | :53:26. | |
to have a go at UKIP too hard? Because it might be in your party's | :53:27. | :53:30. | |
interests for them to do re`sonably well this summer? It's cert`inly | :53:31. | :53:33. | |
true the Conservatives have got a UKIP problem. And that is why.. You | :53:34. | :53:37. | |
have as well. That is why you see the Prime Minister trying to play to | :53:38. | :53:41. | |
the party's right wing. But I think that, as far as UKIP is concerned, | :53:42. | :53:44. | |
we do need to understand wh`t they are. There was a councillor recently | :53:45. | :53:48. | |
that, for goodness sake, was blaming the winter floods on gay marriage. | :53:49. | :53:52. | |
It is a pretty weird party. If you are going to have a go at the Prime | :53:53. | :53:56. | |
Minister, I suppose maybe they can go back at you and say Ed Mhliband | :53:57. | :54:00. | |
is still on the fence. Becatse, in a way, what we have seen this week is | :54:01. | :54:03. | |
a compromise from Ed Miliband between those in the party who | :54:04. | :54:07. | |
really feel that they don't want to be distracted in government by the | :54:08. | :54:10. | |
European issue. And the othdrs that feel we've got to say something to | :54:11. | :54:14. | |
the electorate, because people think it is a metropolitan elite hn the | :54:15. | :54:17. | |
party that looks out of touch. Yes, what Ed Miliband did this wdek was | :54:18. | :54:22. | |
to tell it as it is. What wd said is that, if there is going to be a | :54:23. | :54:26. | |
transfer of powers to the Etropean Union, there would be a refdrendum. | :54:27. | :54:29. | |
Is that likely? Probably not. I mean, that is simply telling it as | :54:30. | :54:33. | |
it is and I think it is realistic policy. Interestingly as well, it's | :54:34. | :54:36. | |
been welcomed by most of thd wealth creators in this country. OK, | :54:37. | :54:39. | |
briefly, Caroline, ructions in your party if you come behind UKHP and | :54:40. | :54:43. | |
Labour in the summer election? I think it is going to be a dhfficult | :54:44. | :54:46. | |
set of European elections. We need to be clear about that. Bec`use | :54:47. | :54:50. | |
people tend to use it as a protest vote. But also, the turnout goes | :54:51. | :54:54. | |
right down, down below 10% hn some parts of my constituency. I would | :54:55. | :54:57. | |
just urge people to think h`rd about this. 50% of our exports ard to the | :54:58. | :55:01. | |
European Union. And to focus really on this question of who you want to | :55:02. | :55:05. | |
represent you. OK, thank yot. Well, suddenly it's "Greater | :55:06. | :55:08. | |
Birmingham" this. "Greater Birmingham" that. The Greatdr | :55:09. | :55:14. | |
Birmingham Chambers of Commdrce Greater Birmingham Professional | :55:15. | :55:16. | |
Services Academy. And most significantly, the Greater | :55:17. | :55:18. | |
Birmingham and Solihull Loc`l Enterprise Partnership. And it was | :55:19. | :55:21. | |
their chairman, Andy Street, who explained in the Telegraph on Sunday | :55:22. | :55:25. | |
why he wanted to get rid of that "second city" tag. | :55:26. | :55:36. | |
Richard, as a Birmingham MP, is Greater Birmingham going to fly as | :55:37. | :55:43. | |
an idea? I hear people in the Black Country say, "Hands off, Birmingham! | :55:44. | :55:48. | |
No more land grabs, thank you." I think the key thing is th`t, in | :55:49. | :55:52. | |
this region, we've got to work together. And I've got to s`y Andy | :55:53. | :55:56. | |
Street and the local enterprise partnership have been doing a good | :55:57. | :56:00. | |
job on that. And we maybe do need to get over something of a hang`up with | :56:01. | :56:03. | |
titles. If you look at Manchester, the fact that the city of M`nchester | :56:04. | :56:07. | |
geographically has got Salford as part of it. They don't see | :56:08. | :56:10. | |
themselves as rivals on that. They see themselves as part of a Greater | :56:11. | :56:13. | |
Manchester project. And I think we can do the same in this part of the | :56:14. | :56:18. | |
Midlands. Caroline, you are someone that's taken a long interest in | :56:19. | :56:21. | |
these local government structures thereof. Are we saying, in ` way, | :56:22. | :56:25. | |
maybe Birmingham is too big for some things? Like children's services | :56:26. | :56:30. | |
notoriously. Maybe too small for, say, Digby Jones' vision of the | :56:31. | :56:33. | |
wider West Midlands and the structural planning and transport | :56:34. | :56:36. | |
that looks at wider region? It's not easy for the surrounding sm`ller | :56:37. | :56:39. | |
local authorities to work together with such a huge local authority. | :56:40. | :56:44. | |
The largest in the land. But I think they've chosen to be part of the | :56:45. | :56:47. | |
Greater Birmingham and Solihull Local Economic Partnership | :56:48. | :56:49. | |
demonstrating they want to work together. But they will want to keep | :56:50. | :56:54. | |
their identities separate and clear. I mean, of the most important | :56:55. | :56:57. | |
regional, indeed national, `ssets are in Solihull. Birmingham Airport, | :56:58. | :57:00. | |
for example. The NEC. so wotld you support the idea in principle? A | :57:01. | :57:05. | |
quick idea from each of you on that? I think that it should be Greater | :57:06. | :57:08. | |
Birmingham and Solihull. Solihull is the engine room in the West Midlands | :57:09. | :57:12. | |
economy. I'm a Solihull Borough MP. You would expect me to say that | :57:13. | :57:15. | |
Richard? I think we can havd the title and we can still have the | :57:16. | :57:18. | |
identities for Solihull and elsewhere. Interestingly, the thing | :57:19. | :57:21. | |
about Birmingham's size. Th`t's why devolution inside Birminghal is | :57:22. | :57:25. | |
important. I say that as a Birmingham MP. Interesting stuff. | :57:26. | :57:28. | |
Thank you very much indeed for the moment. | :57:29. | :57:31. | |
Well, let's catch`up with more of the political developments that have | :57:32. | :57:34. | |
been making the news over the past seven days. Our regular round`up in | :57:35. | :57:38. | |
60 Seconds is brought to us this week by BBC Midlands Today's Sarah | :57:39. | :57:47. | |
Falkland. Medical professionals in Shropshire | :57:48. | :57:49. | |
are suggesting a brand`new hospital with a state`of`the art acchdent and | :57:50. | :57:53. | |
emergency unit could be built as part of changes to the NHS hn the | :57:54. | :57:55. | |
county. Around 20,000 new jobs could be | :57:56. | :57:58. | |
created in Staffordshire after a ?20 million City Deal was agreed between | :57:59. | :58:01. | |
the government and local authorities. | :58:02. | :58:03. | |
Plans for Muslim cemetery in Solihull have been withdrawn. More | :58:04. | :58:07. | |
than 160 objections were made about the application to build thd private | :58:08. | :58:11. | |
cemetery near Catherine`de`Barnes. 20mph speed limits are to bd rolled | :58:12. | :58:17. | |
out in parts of Birmingham. In keeping with the spirit of the | :58:18. | :58:19. | |
policy, it's being introducdd slowly, starting in the citx centre. | :58:20. | :58:24. | |
And a protest at Westminster as MPs again debated the Gloucestershire | :58:25. | :58:27. | |
and Somerset badger cull. It was deemed ineffective by indepdndent | :58:28. | :58:34. | |
scientific assessors. And this well`known Brummie bird`watcher | :58:35. | :58:38. | |
isn't impressed. I seriouslx think this government is one of the | :58:39. | :58:41. | |
biggest enemies of the Brithsh countryside and its wildlifd that | :58:42. | :58:47. | |
there has ever been. Bill Oddie clearly not a fan, | :58:48. | :58:51. | |
Caroline. If you were still Environment Secretary, would you | :58:52. | :58:54. | |
have done this badger cull differently from how Owen P`terson | :58:55. | :58:58. | |
is handling it? I made the original decision, because there are no easy | :58:59. | :59:02. | |
answers. There is no vaccind that will survive being consumed by the | :59:03. | :59:05. | |
badger to vaccinate it against TB. There is no easy answer. Me`nwhile, | :59:06. | :59:11. | |
we are putting down 28,000 cows a year at a cost to the taxpaxer of | :59:12. | :59:15. | |
?100 million. It's a very dhfficult one. Is there a serious risk here? | :59:16. | :59:22. | |
We have had the terrible history of the beef ban. Is there a danger of a | :59:23. | :59:26. | |
similar thing happening to dairy products? The problem is, if you | :59:27. | :59:30. | |
vaccinate cattle, we would not be able to export it, because ht masks | :59:31. | :59:34. | |
the disease. So really, my successor is between a rock and a hard place. | :59:35. | :59:38. | |
Nowhere else in the world h`s TB been eliminated from cattle without | :59:39. | :59:41. | |
also tackling it in the wildlife population. What would you say to | :59:42. | :59:44. | |
Bill Oddie, who thinks that your government's record on the | :59:45. | :59:47. | |
countryside generally is terrible? I wouldn't agree. That's a swdeping | :59:48. | :59:51. | |
statement and ignores the f`ct that they introduced the first n`tural | :59:52. | :59:54. | |
environment White Paper for 20 years. Biodiversity offsetthng, | :59:55. | :59:57. | |
which I'm sure Bill is all hn favour of. Nobody wants to kill badgers. We | :59:58. | :00:01. | |
love badgers. But we have also got to eradicate the disease. Briefly, | :00:02. | :00:05. | |
as a town MP, are you one of these urban MPs who know little and care | :00:06. | :00:08. | |
less about the badger cull, Richard? I am also on the fringe of the | :00:09. | :00:11. | |
countryside in Longbridge, of course. But TB is a dreadful | :00:12. | :00:15. | |
disease, TB in cattle, no qtestion. But the badger cull was not | :00:16. | :00:18. | |
effective, is not effective, and all too often can be cruel. And that is | :00:19. | :00:23. | |
why I voted against carrying on with the badger cull. OK, let's leave it | :00:24. | :00:26. | |
there. Thank you both very luch indeed. My thanks to Caroline | :00:27. | :00:32. | |
Spelman and Richard Burden. Coming up later this week, the man | :00:33. | :00:36. | |
responsible for health care across a great swathe of our area will be in | :00:37. | :00:40. | |
the hot seat. Neil Carr, Ch`irman of the South Staffordshire and | :00:41. | :00:42. | |
Shropshire NHS Trust, will be joining Jim Hawkins on BBC Radio | :00:43. | :00:45. | |
Shropshire. That's on Thursday morning from ten o'clock. I'm sure | :00:46. | :00:49. | |
there will be plenty to talk about on BBC Shropshire. This, though is | :00:50. | :00:52. | |
where we rejoin Andrew Neil. industrial action is a sign of | :00:53. | :01:00. | |
failure marked success. -- not success. Andrew, back to you. | :01:01. | :01:10. | |
Has George Osborne got a rabbit in his Budget hat? Will the Chancellor | :01:11. | :01:15. | |
find a way to help the squeezed middle? And how do Labour respond? | :01:16. | :01:16. | |
All questions for The Week Ahead. And joining Helen, Janan and Nick to | :01:17. | :01:27. | |
discuss the budget is the general secretary of the Trades Union | :01:28. | :01:30. | |
Congress Frances O'Grady. Welcome back to the programme. I know the | :01:31. | :01:35. | |
TUC has a submission, but if you could pick one thing that you wanted | :01:36. | :01:38. | |
the Chancellor to do above all, what would it be? We want a budget for | :01:39. | :01:45. | |
working people, which means we have to crack the long-term problem of | :01:46. | :01:49. | |
investment in the British economy. Certainly I would like the | :01:50. | :01:56. | |
Chancellor to merit that title they want of the new workers party, and | :01:57. | :02:00. | |
take action on living standards but if they're going to do that it's got | :02:01. | :02:09. | |
to be about unlocking investment. In the period where the economy has | :02:10. | :02:14. | |
been flat-lining there has been little business investment, but | :02:15. | :02:17. | |
there are signs towards the end of last year that it is beginning to | :02:18. | :02:23. | |
pick up. But a long way to go. The problem is we have key industries | :02:24. | :02:26. | |
like construction and manufacturing that are still smaller than they | :02:27. | :02:31. | |
were before the recession. The government itself, of course, has | :02:32. | :02:35. | |
slashed its own capital investment budget by half. There is plenty of | :02:36. | :02:41. | |
good and important work that needs to be done from building houses to | :02:42. | :02:45. | |
improving the transport system, to improving our schools. And the | :02:46. | :02:50. | |
government really needs to pick up that shovel and start investing in | :02:51. | :02:55. | |
our economy to get the decent jobs we need, the pay increases we need, | :02:56. | :02:59. | |
and that in itself will help stimulate demand. It was Alistair | :03:00. | :03:07. | |
Darling who cut in 2011, and it s interesting that Ed Balls in his | :03:08. | :03:10. | |
plans for the next parliament would run a current budget surplus by the | :03:11. | :03:14. | |
end of the parliament as opposed to George Osborne who would have an | :03:15. | :03:18. | |
overall budget surplus. That gives Ed Balls or -- more wriggle room to | :03:19. | :03:23. | |
do what you talk about, but he is reticent to talk about it. He does | :03:24. | :03:27. | |
not want to say that he has an opportunity to spend on investment | :03:28. | :03:30. | |
because he fears if he says it he will be attacked by the | :03:31. | :03:32. | |
Conservatives for being irresponsible. Why is business doing | :03:33. | :03:40. | |
this? The recession was deeper than any since the war and the recovery | :03:41. | :03:43. | |
was slower than almost any since the war. The lag, the time it takes to | :03:44. | :03:49. | |
get over that is longer than anyone expected. I read the same evidence | :03:50. | :03:56. | |
as you towards the end of last year pointing to money being released, | :03:57. | :03:58. | |
and it depends what it is released on, whether it is capital investment | :03:59. | :04:03. | |
or bringing in people on higher wages. The one surprise in the | :04:04. | :04:07. | |
downturn is how well the employment figures have done, but they have not | :04:08. | :04:12. | |
invested in new capacity and they are sitting on a lot of dosh. I | :04:13. | :04:15. | |
looked at one set of figures that said if you took the biggest company | :04:16. | :04:22. | |
in Britain, they have about 715 billion pounds in corporate treasury | :04:23. | :04:25. | |
-- the biggest companies. I think it's reduced a little but they are | :04:26. | :04:32. | |
sitting on a mountain in dash of skills. Yes, but they're not | :04:33. | :04:36. | |
investing in skills, wages, or sustainable jobs. The new jobs we | :04:37. | :04:40. | |
have seen created since 2010, the vast majority of them have been in | :04:41. | :04:46. | |
low paid industries, and they are often zero hours, or insecure, or | :04:47. | :04:51. | |
part-time. So it's not delivering a recovery for ordinary working | :04:52. | :04:56. | |
people. Government ministers, as you know when you lobby them, they are | :04:57. | :04:59. | |
anxious to make out that they know the job is not done and the recovery | :05:00. | :05:04. | |
has just begun, but the one bit they are privately proud of, although | :05:05. | :05:09. | |
they can't explain it, is how many private-sector jobs have been | :05:10. | :05:14. | |
created. A lot of unions have done sensible deals with employers to | :05:15. | :05:17. | |
protect jobs through this period, but it's not sustainable. The | :05:18. | :05:22. | |
average worker in Britain today is now ?2000 a year worse off in real | :05:23. | :05:27. | |
terms than they were. On a pay against price comparison? It doesn't | :05:28. | :05:36. | |
take into account tax cuts. The raising of the personal allowance is | :05:37. | :05:45. | |
far outweighed by the raising VAT. Does the raising of the threshold | :05:46. | :05:48. | |
which the Lib Dems are proud of and the Tories are trying to trade | :05:49. | :05:51. | |
credit for, does it matter to your members? -- take credit for. It | :05:52. | :05:57. | |
matters that it is eclipsed by the cuts in benefits and know what is | :05:58. | :06:01. | |
conned any more. We're going to hear a lot about the raising of the | :06:02. | :06:05. | |
allowance, but as long as the real value of work, tax credits, things | :06:06. | :06:11. | |
like that, people won't feel it in their pocket, and they will find it | :06:12. | :06:14. | |
harder and harder to look after their family. When you look at the | :06:15. | :06:17. | |
other things that could take over from consumer spending which has | :06:18. | :06:22. | |
driven the recovery, held by house price rising in the south, it is | :06:23. | :06:25. | |
exports and business investment and you look at the state of the | :06:26. | :06:28. | |
Eurozone and the emerging markets which are now in trouble, and the | :06:29. | :06:33. | |
winter seems to have derailed the US recovery. It won't be exports. | :06:34. | :06:38. | |
Indeed, the Obie Eich does not think that will contribute to growth until | :06:39. | :06:46. | |
2015 -- OBI. So the figures we should be looking at our business | :06:47. | :06:52. | |
investment. And also the deficit. The deficit is 111 billion, and that | :06:53. | :06:56. | |
is a problem, because we are not at the end of the cutting process, | :06:57. | :07:01. | |
there are huge cuts to be made. I understand we are only a third of | :07:02. | :07:05. | |
the way through. That will definitely affect business | :07:06. | :07:09. | |
confidence. It is clear that the strategy has failed. Borrowing has | :07:10. | :07:12. | |
gone up and it's not delivered improved living standards and better | :07:13. | :07:16. | |
quality jobs, so cutting out of the recession is not going to work. The | :07:17. | :07:22. | |
structural budget deficit was going to be eliminated three weeks today | :07:23. | :07:28. | |
under the original plan. They missed target after target. Every economist | :07:29. | :07:33. | |
has their own definition of that. I think Mark Carney is right when he | :07:34. | :07:37. | |
says that fundamentally the economy is unbalanced and it is not | :07:38. | :07:41. | |
sustainable, growth is not sustainable. But if it clicked on, | :07:42. | :07:49. | |
it would be more balanced. It is not just north and south and | :07:50. | :07:52. | |
manufacturing a way out with services, but it is also between the | :07:53. | :07:58. | |
rich and everybody else. What do you make of the fact that there will | :07:59. | :08:01. | |
effectively be another freezing public sector pay, or at least no | :08:02. | :08:06. | |
more than 1%? Not even that for nurses and health workers. But they | :08:07. | :08:14. | |
will get 3% progression pay. 70 of nurses will not get any pay rise at | :08:15. | :08:18. | |
all. They get no progression pay at all. I think this is smack in the | :08:19. | :08:24. | |
mouth. Smack in the mouth to dedicated health care workers who | :08:25. | :08:28. | |
will feel very, very discontented about the decision. Danny | :08:29. | :08:33. | |
Alexander, I saw him appealing to health workers do not move to strike | :08:34. | :08:38. | |
ballots and said they should talk to their department. But about what? Is | :08:39. | :08:44. | |
that real pay cut has been imposed, what are workers left with? So do | :08:45. | :08:50. | |
you expect as a result of yet more tough controls on public sector pay | :08:51. | :08:57. | |
that unrest is inevitable? I know some unions will be consulting with | :08:58. | :09:01. | |
their members, but ultimately it's always members who decide what to | :09:02. | :09:06. | |
do. It does seem to me insulting not to at least be honest and say that | :09:07. | :09:11. | |
we are cutting real pay of nurses, health care workers, on the back of | :09:12. | :09:18. | |
a ?3 billion reorganisation of the NHS that nobody wanted and nobody | :09:19. | :09:24. | |
voted for. Their long-term changes taking place here that almost talks | :09:25. | :09:29. | |
about -- there are long-term changes. It is how lower percentage | :09:30. | :09:37. | |
wages have become of GDP on how big the percentage of profits is. It | :09:38. | :09:40. | |
seems to me there is a strong case for some kind of realignment there. | :09:41. | :09:46. | |
The biggest event of my life, in this world, is the entry of a couple | :09:47. | :09:50. | |
of billion more people into the labour supply. At the end of the | :09:51. | :09:53. | |
Cold War, India and China plugged into the global economy. If there is | :09:54. | :09:58. | |
a greater supply of that factor of production, logically you conclude | :09:59. | :10:01. | |
that wages will fall or stagnate and that has been the story in this | :10:02. | :10:06. | |
country and America and large parts of Western Europe in the last | :10:07. | :10:09. | |
generation. What is not possible is for governments to do much about | :10:10. | :10:14. | |
it. They can ameliorate it at the margins, but the idea that the | :10:15. | :10:16. | |
government controls living standards, which has become popular | :10:17. | :10:20. | |
over the last six months, and the Labour Party have in establishing | :10:21. | :10:25. | |
that, and I don't think it's true. George Osborne's options are | :10:26. | :10:29. | |
astonishingly limited compared to public expectations. If wages have | :10:30. | :10:34. | |
reached a modern record low as percentage of GDP, who is going to | :10:35. | :10:40. | |
champion the wage earner? We have lost Bob Crow, Tony Benn passed | :10:41. | :10:46. | |
away, so who is the champion? The trade union movement is the champion | :10:47. | :10:51. | |
of ordinary workers. We need those larger-than-life figures that we | :10:52. | :10:57. | |
will mess. Have you got them yet? We have a generation of workers coming | :10:58. | :11:01. | |
through. One thing about the loss of Bob Crow is that the whole union | :11:02. | :11:05. | |
movement has responded strongly to that, and we want to say that we are | :11:06. | :11:09. | |
strong and united and here to stand up for working people and we will | :11:10. | :11:14. | |
fight as hard as Bob Crow did. Whoever replaces Bob Crow or Tony | :11:15. | :11:18. | |
Benn, we can be sure they will not come from Eton because they all have | :11:19. | :11:22. | |
jobs in the government. I want to put up on the screen what even | :11:23. | :11:25. | |
Michael Gove was saying about this coterie of Old Etonian 's. | :11:26. | :11:35. | |
He's right, is he not? He's absolutely right. We have the idea | :11:36. | :11:44. | |
of the manifesto being written by five people from Eton and one from | :11:45. | :11:50. | |
Saint Pauls. A remarkable example of social mobility that George Osborne, | :11:51. | :11:54. | |
who had the disadvantage of going to Saint Pauls has made it into that | :11:55. | :11:59. | |
inner circle. Here is the question, what is Michael Gove up to? If you | :12:00. | :12:04. | |
saw the response from George Osborne, there was no slap down and | :12:05. | :12:07. | |
they know this is an area they are weak on an David Cameron will not | :12:08. | :12:11. | |
comment on it. If this had been a Labour shadow minister making a | :12:12. | :12:15. | |
similarly disloyal statement, they might have been shot at dawn. But | :12:16. | :12:20. | |
there is a real tolerance from Michael Gove to go freelance which | :12:21. | :12:25. | |
comes from George Osborne. It's about highlighting educational | :12:26. | :12:27. | |
reforms that he wants to turn every school in to eat and so it won't | :12:28. | :12:31. | |
happen in the future. But it's also pointing out who did not go to Eton | :12:32. | :12:35. | |
school and who would be the best candidate to replace David Cameron | :12:36. | :12:38. | |
as leader, George Osborne, and who did go to Eton school, Boris | :12:39. | :12:42. | |
Johnson. Michael Gove is on manoeuvres to destroy Boris | :12:43. | :12:50. | |
Johnson's chances of being leader. It's a good job they don't have an | :12:51. | :12:54. | |
election to worry about. Hold on. I think they are out of touch with | :12:55. | :12:59. | |
businesses as well as working people. You ask about who is talking | :13:00. | :13:03. | |
about wage earners. Businesses are. They are worried that unless living | :13:04. | :13:06. | |
standards rise again there will be nobody there to buy anything. We are | :13:07. | :13:12. | |
running out of time, but the TUC, are enthusiastic about HS2? We | :13:13. | :13:18. | |
supported. We think it's the kind of infrastructure project that we need | :13:19. | :13:22. | |
to invest in long-term. He could, if we get it right, rebalance north and | :13:23. | :13:26. | |
south and create good jobs along the way -- it could. Thank you very much | :13:27. | :13:33. | |
tool. I have to say that every week -- thank you very much to you all. | :13:34. | :13:37. | |
That's all for today. I'll be back next Sunday at 11am, and Jo Coburn | :13:38. | :13:41. | |
will be on BBC Two tomorrow at midday with the Daily Politics. | :13:42. | :13:46. | |
Remember if it's Sunday, it's the Sunday Politics. | :13:47. | :13:48. |