05/03/2017 Sunday Politics


05/03/2017

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

:00:37.:00:42.

The Chancellor says that to embark on a spending spree

:00:43.:00:45.

in Wednesday's Budget would be "reckless".

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But will there be more money for social care and to ease

:00:48.:00:50.

The UK terror threat is currently severe,

:00:51.:00:56.

but where is that threat coming from?

:00:57.:00:59.

We have the detailed picture from a vast new study of every

:01:00.:01:01.

Islamist related terrorist offence committed over the last two decades.

:01:02.:01:06.

What can we learn from these offences to thwart future attacks?

:01:07.:01:12.

The government was defeated in the Lords on its

:01:13.:01:14.

We'll ask the Leader of the House of Commons what he'll do if peers

:01:15.:01:19.

In London this week a shake-up in education funding could lead

:01:20.:01:24.

to 70% of schools losing money in the capital.

:01:25.:01:27.

All that coming up in the next hour and a quarter.

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Now, some of you might have read that intruders managed

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to get into the BBC news studios this weekend.

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Well three of them appear not to have been ejected yet,

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so we might as well make use of them as our political panel.

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Tom Newton Dunn, Isabel Oakeshott and Steve Richards.

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They'll be tweeting throughout the programme.

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Philip Hammond will deliver his second financial

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statement as Chancellor and the last Spring Budget

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for a while at least - they are moving to the Autumn

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There's been pressure on him to find more money

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for the Health Service, social care, schools funding,

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But this morning the Chancellor insisted that he will not be

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using the proceeds of better than expected tax receipts to embark

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What is being speculated on is whether we might not have borrowed

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quite as much as we were forecast to borrow. You will see the numbers on

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Wednesday. But if your bank increases your credit card limit, I

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do not think you feel obliged to go out and spent every last penny of it

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He is moving the budget to the autumn, he told us that in his

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statement, so maybe on Wednesday it will be like a spring statement

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rather than a full-blown budget. Tinkering pre-Brexit and in November

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he will have a more clear idea of the impact of Brexit and I suspect

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that will be the bigger event than this one. It looks as if there will

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be a bit of money here and there, small amounts, not enough in my

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view, for social care and so on, possibly a review of social care

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policy. A familiar device which rarely get anywhere. I think he has

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got a bit more space to do more if he wanted to do now because of the

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politics. They are miles ahead in the polls, so he could do more, but

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it is not in his character, he is cautious. So he keeps his powder dry

:03:46.:03:51.

on most things, he does some things, but he keeps it dry until November.

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But also, as Steve says, he will know just how strong the economy has

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been this year by November and whether he needs to do some pump

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priming or whether everything is fine. He said it is too early to

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make those sorts of judgments now. What is striking is the amount of

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concern there is an Number ten and in the Treasury about the tone of

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this budget, so less about the actual figures and more about what

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message this is sending out to the rest of the world. I think some

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senior MPs are calling it a kind of treading water budget and Phil

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Hammond has got quite a difficult act to perform because he is

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instinctively rather cautious, or very cautious, and instinctively

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slightly gloomy about Brexit. He wanted to remain. But he does not

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want this budget to sounded downbeat and he will be mauled if he makes it

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sound downbeat, so he has to inject a little bit of optimism and we may

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see that in the infrastructure spending plans. He has got some room

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to manoeuvre. The deficit by the financial year ending in April we

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now know will not be as big as the OBR told us only three and a half

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months ago that it would be. They added 12 billion on and they may

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take most of that off again. He is under pressure from his own side to

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do something on social care and business rates and I bet some Tory

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backbenchers would not mind a little bit more money for the NHS as well.

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He is on a huge pressure to do a whole lot on a whole load, not just

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social care. There is also how on earth do we pay for so many old

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people? There is the NHS, defence spending, everything. But his words

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this morning, which is I am not going to spend potentially an extra

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30 billion I might have by 2020 because of improved economic growth

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was interesting. You need to hold something back because Brexit might

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go back and he was a bit of a remain campaign person. If you think

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Britain is going to curl up into a corner and hideaway licking its

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wounds, you have got another think coming. That 30 billion he might

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have extra in his pocket could be worth deploying on building up

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Britain with huge tax cuts in case there is no deal, a war chest if you

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like. He will have more than 27 billion. He may decide 27 billion in

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the statement, the margin by which he tries to get the structural

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deficit down, he will still have 27 billion. If the receipts are better

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than they are forecast, some people are saying he will have a war chest

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of 60 billion. That money, as Mr Osborne found out, can disappear. He

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clearly is planning not to go on a spending spree this Wednesday. It is

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interesting in the FTB and the day, David Laws who was chief Secretary

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for five minutes, was also enthusiastic about the original

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George Osborne austerity programme and he said, we have reached the

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limits to what is socially possible with this and a consensus is

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beginning to emerge that he will have to spend more money than he

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plans to this Wednesday. This is not just from Labour MPs, but from a lot

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of Conservative MPs as well. People will wonder when this austerity will

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end because it seems to be going on for ever. We will have more on the

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budget later in the programme. Now, the government was defeated

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last week in the House of Lords. Peers amended the bill that

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will allow Theresa May to trigger Brexit to guarantee the rights of EU

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nationals currently in the UK. The government says it will remove

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the amendment when the bill returns But today a report from

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the Common's Brexit committee also calls for the Government to make

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a unilateral decision to safeguard the rights of EU

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nationals living here. If the worst happened,

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are we actually going to say to 3 million Europeans here,

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who are nurses, doctors, serving us tea and coffee in restaurants,

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giving lectures at Leeds University, picking and processing vegetables,

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"Right, off you go"? No, of course we are not

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going to say that. So, why not end the

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uncertainty for them now? will help to create the climate

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which will ensure everyone gets to say because that's

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what all of us want. That is why we have unanimously

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agreed this recommendation that the government should make unilateral

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decision to say to EU citizens here, yes, you can stay, because we think

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that is the right and fair thing to do.

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And we're joined now from Buckinghamshire by the leader

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of the House of Commons, David Lidington.

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Welcome back to the programme. The House of Lords has amended the

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Article 50 bill to allow the unilateral acceptance of EU

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nationals' right to remain in the UK. Is it still the government was

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my intention to remove that amendment in the comments? We have

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always been clear that we think this bill is very straightforward, it

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does nothing else except give the Prime Minister the authority that

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the courts insist upon to start the Article 50 process of negotiating

:09:23.:09:26.

with the other 27 EU countries. On the particular issue of EU citizens

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here and British citizens overseas, the PM did suggest that the December

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European summit last year that we do a pre-negotiation agreement on this.

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That was not acceptable to all of the other 27 because they took the

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view that you cannot have any kind of negotiation and to Article 50 has

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been triggered. That is where we are. I hope with goodwill and

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national self interest on all sides we can tackle this is right that the

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start of those negotiations. But it is not just the Lords. We have now

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got the cross-party Commons Brexit committee saying you should now make

:10:08.:10:13.

the unilateral decision to safeguard the rights of EU nationals in the

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UK. Even Michael go, Peter Lilley, John Whittington, agree. So why are

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you so stubborn on this issue? I think this is a complex issue that

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goes beyond the rise of presidents, but about things like the rights of

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access to health care, to pension ratings and benefits and so on...

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But you could settle back. It is also, Andrew, because you have got

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to look at it from the point of view of the British citizens, well over 1

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million living elsewhere in Europe. If we make the unilateral gesture,

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it might make us feel good for Britain and it would help in the

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short term those EU citizens who are here, but you have got those British

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citizens overseas who would then be potential bargaining chips in the

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hands of any of the 27 other governments. We do not know who will

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be in office during the negotiations and they may have completely

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extraneous reasons to hold up the agreement on the rights of British

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citizens. The sensible way to deal with this is 28 mature democracies

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getting around the table starting the negotiations and to agree to

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something that is fair to all sides and is reciprocal. What countries

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might take on UK nationals living in the EU? What countries are you

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frightened of? The one thing that I know from my own experience in the

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past of being involved in European negotiations is that issues come up

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that maybe have nothing to do with British nationals, but another issue

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that matters a huge amount to a particular government, it may not be

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a government yet in office, and they decide we can get something out of

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this, so let's hold up the agreement on British citizens until the

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British move in the direction we want on issue X. I hope it does not

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come to that. I think the messages I have had from EU ambassadors in

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London and from those it my former Europe colleague ministers is that

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we want this to be a done deal as quickly as possible. That is the

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British Government's very clear intention. We hope that we can get a

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reciprocal deal agreed before the Article 50 process. That was not

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possible. I understand that, you have said that already. But even if

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there is no reciprocal deal being done, is it really credible that EU

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nationals already here would lose their right to live and work and

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face deportation? You know that is not credible, that will not happen.

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We have already under our own system law whereby some people who have

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been lawfully resident and working here for five years can apply for

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permanent residency, but it is not just about residents. It is about

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whether residency carries with it certain rights of access to health

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care. I understand that, but have made this point. But the point is

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the right to live and work here that worries them at the moment. The Home

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Secretary has said there can be no change in their status without a

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vote in parliament. Could you ever imagine the British Parliament

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voting to remove their right to live and work here? I think the British

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Parliament will want to be very fair to EU citizens, as Hilary Benn and

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others rightly say they have been overwhelmingly been here working

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hard and paying taxes and contributing to our society. They

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were equally want to make sure there is a fair deal for our own citizens,

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more than a million, elsewhere in Europe. You cannot disentangle the

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issue of residence from those things that go with residents. Is the

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Article 50 timetabled to be triggered before the end of this

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month, is it threatened by these amendments in the Lords? I sincerely

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hope not because the House of Lords is a perfectly respectable

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constitutional role to look again at bills sent up by the House of

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commons. But they also have understood traditionally that as an

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unelected house they have to give primacy to the elected Commons at

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the end of the day. In this case it is not just the elected Commons that

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sent the bill to be amended, but the referendum that lies behind that. It

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is not possible? We are confident we can get Article 50 triggered by the

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end of the month. One of the other Lords amendments

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will be to have a meaningful vote on the Brexit deal when it is done at

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the end of the process, what is your view on that? What would you

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understand by a meaningful vote? The Government has already said there is

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going to be a meaningful vote at the end of the process. What do you mean

:15:33.:15:38.

by a meaningful vote? The parliament will get the opportunity to vote on

:15:39.:15:41.

the deal before it finishes the EU level process of going to

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consideration by the European Parliament. Parliament will be given

:15:45.:15:51.

a choice, as I understand, for either a vote for the deal you have

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negotiated or we leave on WTO rules and crash out anyway, is that what

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you mean by a meaningful choice? Parliament will get the choice to

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vote on the deal, but I think you have put your finger on the problem

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with trying to write something into the bill because any idea that the

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PM's freedom to negotiate is limited, any idea that if the EU 27

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were to play hardball, that somehow that means parliament would take

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fright, reverse the referendum verdict and set aside the views of

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the British people, that would almost guarantee that it would be

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much more difficult to get the sort of ambitious mutually beneficial

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deal for us and the EU 27. Your idea of a meaningful vote in parliament

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is the choices either to vote to accept this deal or we leave anyway,

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that is your idea of a meaningful vote. The Article 50 process is

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straightforward. There is the position of both parties in the

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recent Supreme Court case that the Article 50 process once triggered is

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irrevocable. That is in the EU Treaty already but we are saying

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very clearly that Parliament will get that right to debate and vote. I

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think the problem with what some in the House of Lords are proposing, I

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hope it is not a majority, is that the amendments they would seek to

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insert would tie the Prime Minister's hands, limit and

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negotiating freedom and put her in a more difficult position to negotiate

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on behalf of this country than should be the case. One year ago you

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said it could take six to eight years to agree a free-trade deal

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with the EU. Now you think you can do it in two, what's changed your

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mind? There is a very strong passionate supporter of Remain, as

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you know. I hope very much we are able to conclude not just the terms

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of the exit deal but the agreement that we are seeking on the long-term

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trade relationship... I understand that, but I'm trying to work out,

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what makes you think you can do it in two years when only a year ago

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you said it would take up to wait? The referendum clearly makes a big

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difference, and I think that there is an understanding amongst real the

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other 27 governments now that it is in everybody's interests to sort

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this shared challenge out of negotiating a new relationship

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between the EU 27 and the UK because European countries, those in and

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those who will be out of the EU, share the need to face up to massive

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challenges like terrorism and technological change. All of that

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was pretty obvious one year ago but we will see what happens. Thank you,

:19:10.:19:12.

David Lidington. Now, the Sunday Politics has had

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sight of a major new report The thousand-page study,

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which researchers say is the most comprehensive ever produced,

:19:17.:19:22.

analyses all 269 Islamist telated terrorist offences

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committed between 1998-2015. Most planned attacks were,

:19:28.:19:30.

thankfully, thwarted, but what can we learn

:19:31.:19:32.

from those offences? For the police and the intelligence

:19:33.:19:34.

agencies to fight terror, Researchers at the security think

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tank The Henry Jackson Society gave us early access to their huge

:19:44.:19:51.

new report which analyses every Islamism related attack

:19:52.:20:00.

and prosecution in the UK since 1998, that's 269 cases

:20:01.:20:03.

involving 253 perpetrators. With issues as sensitive

:20:04.:20:07.

as counterterrorism and counter radicalisation, it is really

:20:08.:20:09.

important to have an evidence base from which you draw

:20:10.:20:12.

policy and policing, This isn't my opinion,

:20:13.:20:14.

this the facts. This chart shows the number

:20:15.:20:18.

of cases each year combined with a small number

:20:19.:20:21.

of successful suicide attacks. Notice the peak in the middle

:20:22.:20:25.

of the last decade around the time of the 7/7 bombings

:20:26.:20:28.

in London in 2005. Offences tailed off,

:20:29.:20:31.

before rising again from 2010, when a three-year period accounted

:20:32.:20:35.

for a third of all the terrorism cases since the researchers

:20:36.:20:38.

started counting. What we are seeing is a combination

:20:39.:20:43.

of both more offending, in terms of the threat increasing,

:20:44.:20:46.

we know that from the security services and police statements,

:20:47.:20:49.

but also I believe we are getting more efficient in terms

:20:50.:20:52.

of our policing and we are actually A third of people were found to have

:20:53.:20:55.

facilitated terrorism, that's providing encouragement,

:20:56.:21:03.

documents, money. About 18% of people

:21:04.:21:06.

were aspirational terrorists, 12% of convictions were related

:21:07.:21:09.

to travel, to training And 37% of people were convicted

:21:10.:21:16.

of planning attacks, although the methods have

:21:17.:21:24.

changed over time. Five or six years ago,

:21:25.:21:28.

we saw lots of people planning or attempting pipe bombs and most

:21:29.:21:32.

of the time they had Inspire magazine in their possession,

:21:33.:21:35.

that's a magazine, an Al-Qaeda English-language online

:21:36.:21:37.

magazine that had specific More recently we have seen

:21:38.:21:39.

Islamic State encouraging people to engage in lower tech knife

:21:40.:21:44.

beheading, stabbings attacks and I think that's why we have

:21:45.:21:47.

seen that more recently. Shasta Khan plotted with her

:21:48.:21:50.

husband to bomb the Jewish In 2012 she received

:21:51.:21:54.

an eight-year prison sentence. She's one of an increasing

:21:55.:21:59.

number of women convicted of an Islamism related offence

:22:00.:22:04.

although it is still overwhelmingly a crime carried out

:22:05.:22:07.

by men in their 20s. Despite fears of foreign terrorists,

:22:08.:22:10.

a report says the vast Most have their home in London,

:22:11.:22:12.

around 43% of them. 18% lived in the West Midlands,

:22:13.:22:21.

particularly in Birmingham, and the north-west is another

:22:22.:22:24.

hotspot with around 10% Richard Dart lived in Weymouth

:22:25.:22:26.

and tried to attend a terrorist He was a convert to Islam, as were

:22:27.:22:33.

60% of the people in this report. He was a convert to Islam, as were

:22:34.:22:43.

16% of the people in this report. Like the majority of cases,

:22:44.:22:46.

he had a family, network. What's particularly interesting

:22:47.:22:48.

is how different each story is in many ways,

:22:49.:22:52.

but then within those differences So your angry young men,

:22:53.:22:55.

in the one sense inspired to travel, seek training and combat experience

:22:56.:23:03.

abroad, and then the older, recruiter father-figure types,

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the fundraising facilitator types. There are types within

:23:11.:23:11.

this terrorism picture, but the range of backgrounds

:23:12.:23:15.

and experiences is huge. And three quarters of those

:23:16.:23:20.

convicted of Islamist terrorism were on the radar of the authorities

:23:21.:23:22.

because they had a previous criminal record, they had

:23:23.:23:26.

made their extremism public, or because MI5 had them

:23:27.:23:29.

under surveillance. To discuss the findings of this

:23:30.:23:35.

report are the former Security Minister Pauline Neville-Jones,

:23:36.:23:42.

Talha Ahmad from the Muslim Council of Britain, and Adam Deen

:23:43.:23:44.

from the anti-extremist group The report finds the most segregated

:23:45.:23:59.

Muslim community is, the more likely it is to incubate Islamist

:24:00.:24:05.

terrorists, what is the MCB doing to encourage more integrated

:24:06.:24:10.

communities? Its track record on calling for reaching out to the

:24:11.:24:14.

wider society and having a more integrated and cohesive society I

:24:15.:24:18.

think is a pretty strong one, so one thing we are doing for example very

:24:19.:24:23.

recently I've seen we had this visit my mosque initiative, the idea was

:24:24.:24:28.

that mosques become open to inviting people of other faiths and their

:24:29.:24:30.

neighbours to come so we were encouraged to see so many

:24:31.:24:36.

participating. It is one step forward. Is it a good thing or a bad

:24:37.:24:43.

thing that in a number of Muslim communities, the Muslim population

:24:44.:24:48.

is over 60% of the community? I personally and the council would

:24:49.:24:51.

prefer to have more mixed communities but one of the reason

:24:52.:24:54.

they are heavily concentrated is not so much because they prefer to but

:24:55.:24:59.

often because the socio- economic reality forces them to. But you

:25:00.:25:05.

would like to see less segregation? Absolutely, we would prefer more

:25:06.:25:08.

diverse communities around the country. What is your reaction to

:25:09.:25:13.

that? Will need more diverse communities but one of the

:25:14.:25:17.

challenges we have right now with certain organisations is this

:25:18.:25:21.

pushback against the Government, with its attempts to help young

:25:22.:25:25.

Muslims not go down this journey of extremism. One of those things is

:25:26.:25:30.

the Prevent strategy and we often hear organisations like the MCB

:25:31.:25:33.

attacking the strategy which is counter-productive. What do you say

:25:34.:25:39.

to that? Do we support the Government have initiatives to

:25:40.:25:44.

counteract terrorism, of course we do. Do you support the Prevent

:25:45.:25:50.

strategy? We don't because it scapegoats an entire community. The

:25:51.:25:56.

report shows that contrary to a lot of lone wolf theories and people

:25:57.:25:59.

being radicalised in their bedrooms on the Internet that 80% of those

:26:00.:26:03.

convicted had connections with the extremist groups. Indeed 25% willing

:26:04.:26:23.

to Al-Muhajiroun. I think this report, which is a thorough piece of

:26:24.:26:29.

work, charts a long period and it is probably true to say that in the

:26:30.:26:34.

earlier stages these organisations were very important, of course

:26:35.:26:38.

subsequently we have had direct recruiting by IS one to one over the

:26:39.:26:44.

Internet so we have a mixed picture of how people are recruited but

:26:45.:26:48.

there's no doubt these organisations are recruiting sergeants. You were

:26:49.:26:52.

once a member of one of these organisations, are we doing enough

:26:53.:27:00.

to thwart them? If we just focus on these organisations, we will fail.

:27:01.:27:09.

We -- the question is are we doing enough to neutralise them? The

:27:10.:27:13.

Government strategy is in the right place, but where we need to focus on

:27:14.:27:18.

is the Muslim community or communities. The Muslim community

:27:19.:27:24.

must realise that these violent extremists are fringe but they share

:27:25.:27:28.

ideas, a broad spectrum of ideas that penetrate deeply within Muslim

:27:29.:27:32.

communities and we need to tackle those ideas because that is where it

:27:33.:27:36.

all begins. Are you in favour of banning groups like Al-Muhajiroun?

:27:37.:27:43.

Yes, it was the right thing to do and I can tell you the community has

:27:44.:27:48.

moved a long way, Al-Muhajiroun does not have support. Do you agree with

:27:49.:27:56.

that? Yes, but it is very simplistic attacking Al-Muhajiroun. ISIS didn't

:27:57.:28:03.

bring about extremism, extremism brought about ISIS, ISIS is just the

:28:04.:28:07.

brand and if we don't deal with the ideological ideas we will have other

:28:08.:28:12.

organisations popping up. The report suggests that almost a quarter of

:28:13.:28:19.

Islamist the latest offences were committed by individuals previous

:28:20.:28:25.

unknown to the security services. And this is on the rise, these

:28:26.:28:29.

numbers. This would seem to make an already difficult task for our

:28:30.:28:31.

intelligence services almost impossible. Two points. It is over

:28:32.:28:39.

80% I think were known, but it shows the intelligence services and police

:28:40.:28:47.

have got their eyes open. But the trend has been towards more not on

:28:48.:28:51.

the radar. That has been because the nature of the recruitment has also

:28:52.:28:57.

changed and you have much more ISIS inspired go out and do it yourself,

:28:58.:29:05.

get a knife, do something simple, so we have fewer of the big

:29:06.:29:10.

spectaculars that ISIS organised. Now you have got locally organised

:29:11.:29:19.

people, two or three people get together, do something together,

:29:20.:29:23.

very much harder actually to get forewarning of that. That is where

:29:24.:29:30.

intelligence inside the community, the community coming to the police

:29:31.:29:35.

say I'm worried about my friend, this is how you get ahead of that

:29:36.:29:41.

kind of attack. Should people in the Muslim community who are worried

:29:42.:29:45.

about individuals being radicalised, perhaps going down the terrorist

:29:46.:29:48.

route, should they bring in the police? Absolutely and we have been

:29:49.:29:54.

consistent on telling the community that wherever they suspect someone

:29:55.:29:59.

has been involved in terrorism or any kind of criminal activity, they

:30:00.:30:02.

should call the police and cooperate. As the so-called

:30:03.:30:10.

caliphate collapses in the Middle East, how worried should we be about

:30:11.:30:12.

fighters returning here? Extremely worried. They fall into

:30:13.:30:25.

three categories. You have ones who are disillusioned about Islamic

:30:26.:30:29.

State. You have ones who are disturbed, and then you have the

:30:30.:30:32.

dangerous who have not disavowed their ideas and who will have great

:30:33.:30:37.

reasons to perform attacks. What do we do? Anyone who comes back, there

:30:38.:30:44.

should be evidence looked into if they committed any crimes. But all

:30:45.:30:50.

those categories should all be be radicalised. You cannot leave them

:30:51.:30:55.

alone. Will we be sure if we know when they come back? That is

:30:56.:31:01.

difficult to say. They could come in and we might not know. There is a

:31:02.:31:07.

watch list so you have got a better chance. And you can identify them?

:31:08.:31:15.

This is where working with other countries is absolutely crucial and

:31:16.:31:17.

our border controls need to be good as well. I am not saying and the

:31:18.:31:22.

government is not saying that anyone would ever slip through, but it is

:31:23.:31:27.

our ability to know when somebody is coming through and to stop them at

:31:28.:31:32.

the border has improved. An important question. Given your

:31:33.:31:36.

experience, how prepared are away for a Paris style attack in a

:31:37.:31:44.

medium-size, provincial city? The government has exercised this one.

:31:45.:31:48.

It started when I was security minister and it has been taken

:31:49.:31:52.

seriously. The single biggest challenge that the police and the

:31:53.:31:56.

Army says will be one of those mobile, roving attacks. You have to

:31:57.:31:59.

take it seriously and the government does. All right, we will leave it

:32:00.:32:04.

Now, Brexit may have swept austerity from the front pages,

:32:05.:32:08.

but the deficit hasn't gone away and the government is still

:32:09.:32:11.

Just this week Whitehall announced that government departments have

:32:12.:32:14.

been told to find another ?3.5bn worth of savings by 2020.

:32:15.:32:18.

Last November the Independent office for Budget Responsibility

:32:19.:32:21.

said the budget deficit would be ?68 billion in the current

:32:22.:32:24.

It would still be ?17 billion by 2021-22.

:32:25.:32:29.

On Wednesday the Chancellor is expected to announce

:32:30.:32:32.

that the 2016-17 deficit has come in much lower than the OBR forecast.

:32:33.:32:38.

Even so, the government is still aiming for the lowest level

:32:39.:32:41.

of public spending as a percentage of national income since 2003-4,

:32:42.:32:46.

coupled with an increase in the tax burden to its highest

:32:47.:32:50.

So spending cuts will continue with reductions in day-to-day

:32:51.:32:55.

government spending accelerating, producing a real terms cut of over

:32:56.:32:59.

But capital spending, investment on infrastructure

:33:00.:33:05.

like roads, hospitals, housing, is projected to grow,

:33:06.:33:09.

producing a 16 billion real terms increase by 2021-22.

:33:10.:33:15.

The Chancellor's task on Wednesday is to keep these fiscal targets

:33:16.:33:19.

while finding some more money for areas under serious

:33:20.:33:22.

pressure such as the NHS, social care and business rates.

:33:23.:33:29.

We're joined now by Paul Johnson of the Institute for Fiscal Studies.

:33:30.:33:34.

Welcome back to the programme. In last March's budget the OBR

:33:35.:33:41.

predicted just over 2% economic growth for this year. By the Autumn

:33:42.:33:45.

Statement in the wake of the Brexit vote it downgraded back to 1.4%. It

:33:46.:33:50.

is now expected to revise that back around to 2% as the Bank of England

:33:51.:33:56.

has again. It is speculated on the future. It looks like we will get a

:33:57.:34:01.

growth forecast for this year not very different from where it was a

:34:02.:34:06.

year ago. What the bank did was upgrade its forecast for the next

:34:07.:34:09.

year or so, but not change very much. It was thinking about three or

:34:10.:34:14.

four years' time, which is what really matters. It looked like the

:34:15.:34:19.

OBR made a mistake in downgrading the growth in the Autumn Statement

:34:20.:34:24.

three months ago. It was more optimistic than nearly all the other

:34:25.:34:28.

forecasters and the Bank of England. It was wrong, but not as wrong as

:34:29.:34:35.

everybody else. We don't know, but if it significantly upgraded its

:34:36.:34:39.

growth forecast for the next three or four years, I would be surprised.

:34:40.:34:46.

It also added 12 billion to the deficit for the current financial

:34:47.:34:49.

year in the Autumn Statement, compared with March. It looks like

:34:50.:34:55.

that deficit will probably be cut again by about 12 billion compared

:34:56.:35:00.

to the last OBR forecast. It is quite difficult to make economic

:35:01.:35:04.

policy on the basis of changes of that skill every couple of months.

:35:05.:35:09.

That is one of the problems about having these two economic event so

:35:10.:35:14.

close together. My guess is the number will come out somewhere

:35:15.:35:17.

between the budget and the Autumn Statement numbers. There was a nice

:35:18.:35:21.

surprise for the Chancellor last month which looked like tax revenues

:35:22.:35:26.

were coming in a lot more strongly than he expected. But again the real

:35:27.:35:30.

question is how much is this making a difference in the medium run? Is

:35:31.:35:35.

this a one-off thing all good news for the next several years? If

:35:36.:35:41.

growth and revenues are stronger, perhaps not as strong as the good

:35:42.:35:44.

news last month, but if they are stronger than had been forecast in

:35:45.:35:48.

the Autumn Statement, what does that mean for planned spending cuts? It

:35:49.:35:54.

probably does not mean very much. Let's not forget the best possible

:35:55.:35:58.

outcome of this budget will be that for the next couple of years things

:35:59.:36:02.

look no worse than they did a year ago and in four years out they will

:36:03.:36:07.

still look a bit worse, and in addition Philip Hammond did increase

:36:08.:36:11.

his spending plans in November. However good the numbers look in a

:36:12.:36:16.

couple of days' time, we will still be borrowing at least 20 billion

:36:17.:36:21.

more by 2020 than we were forecasting a year ago. Still quite

:36:22.:36:28.

constrained. George Osborne wanted to get us to budget surplus by 2019.

:36:29.:36:34.

That has gone. Philip Hammond is quite happy with a big deficit and

:36:35.:36:39.

is not interested in that. But what he is thinking to a large extent, as

:36:40.:36:45.

you have made clear, there is a lot of uncertainty about the economic

:36:46.:36:49.

reaction over the next three or four years. He says he wants some

:36:50.:36:53.

headroom. If things go wrong, I do not want to announce more spending

:36:54.:36:58.

cuts or more tax rises to keep the deficit down. I want to say things

:36:59.:37:02.

have gone wrong for now and we will borrow. And I have got some money in

:37:03.:37:08.

the kitty. He will not spend a lot of it now. I understand the

:37:09.:37:13.

Chancellor is worried about the erosion of the tax base and it is

:37:14.:37:18.

hard to put VAT up by more than 20%, millions have been taken out of

:37:19.:37:24.

income tax, only 46% of people pay income tax, fuel duty is frozen for

:37:25.:37:29.

ever, corporation tax has been cut, the growth in self-employed has

:37:30.:37:33.

reduced revenues, is that a real concern? These are all worries for

:37:34.:37:38.

him. We have as you said in the introduction to this, got a tax

:37:39.:37:43.

burden which is rising very gradually, but it is rising to its

:37:44.:37:49.

highest level since the mid-19 80s, but is not doing it through

:37:50.:37:52.

straightforward increases to income tax. Lots of bits of pieces of

:37:53.:37:57.

insurance premium tax is here and the apprenticeship levied there, and

:37:58.:38:03.

that is higher personal allowance of income tax and a freeze fuel duty,

:38:04.:38:07.

but at some point we will have to look at the tax system as a whole

:38:08.:38:12.

and ask if we can carry on like this. We will have to start increase

:38:13.:38:19.

fuel duties again, or look to those big but unpopular taxes to really

:38:20.:38:26.

keep that money coming in to keep the challenges we will have over the

:38:27.:38:32.

next 30 years. He is going to set up a commission on social care. He has

:38:33.:38:37.

had quite a few commissions on social care. Thank you for being

:38:38.:38:39.

with us. It's just gone 11.35,

:38:40.:38:41.

you're watching the Sunday Politics. We say goodbye to viewers

:38:42.:38:43.

in Scotland who leave us now Coming up here in twenty

:38:44.:38:45.

minutes, the Week Ahead. First though, the Sunday

:38:46.:38:49.

Politics where you are. This week, London schools get

:38:50.:38:58.

the best results in the country. A little later on today we will be

:38:59.:39:03.

looking at the shake-up of the way schools are funded which is set

:39:04.:39:09.

to see 70% of them in With me this week is Labour MP

:39:10.:39:12.

for Hammersmith, Andy Slaughter, and the Conservative MP

:39:13.:39:19.

for Twickenham, Tanya Mattias. Let's kick off by asking

:39:20.:39:21.

about the budget on Wednesday. Let's kick off by asking

:39:22.:01:50.

need Crossrail as well. We will be poring over the entrails of the

:01:51.:01:53.

budget next week. Thank you very much indeed.

:01:54.:01:59.

So the Brexit Bill is back in the Lords next week and the Lib Dems

:02:00.:02:05.

They've ordered pizza and camp beds to encourage their peers

:02:06.:02:08.

to keep talking all night, only to be told by the Lord's

:02:09.:02:11.

authorities that their plans fall foul of health and safety laws.

:02:12.:02:18.

Laws that they probably voted for. What did you make of David

:02:19.:02:25.

Liddington's remarks on the Lords amendments, particularly not just

:02:26.:02:30.

the one on EU nationals, but on what is regarded as a meaningful vote at

:02:31.:02:35.

the end of the process? Let's be clear, as ministers like to say, the

:02:36.:02:40.

meaningful vote vote is by far the biggest thing that will happen in

:02:41.:02:45.

Parliament. It puts EU citizens into a tiny corner. It will decide not

:02:46.:02:51.

just who is going to have the final say on this, but who the EU is

:02:52.:02:56.

negotiating with. Is it directly with Theresa May or is it with

:02:57.:03:01.

Parliament? Who will decide the shape of Brexit, Parliament or

:03:02.:03:05.

Theresa May? The Lords amendment is just the first chapter. They have

:03:06.:03:13.

voiced Theresa May to give them a veto on everything she does, and

:03:14.:03:15.

there is a possible chance in the Commons could uphold this amendment.

:03:16.:03:23.

The meaningful vote amendment? The meaningful vote amendment. But is it

:03:24.:03:29.

a meaningful vote if the choice is to either back the deal or crash out

:03:30.:03:36.

of the deal? That is what the remain supporting MPs or hardline people

:03:37.:03:40.

who want to remain fear. What they want is the power to be able to send

:03:41.:03:44.

Theresa May back to the negotiating table. Why is that anathema to many

:03:45.:03:51.

Brexit supporters? They believed it would crucially and critically

:03:52.:03:55.

undermine Theresa May's negotiating hand and also create a long period

:03:56.:04:00.

of uncertainty for business. There is already great uncertainty and

:04:01.:04:04.

this could extend it. The government's position is in there

:04:05.:04:08.

was a proper, meaningful vote which Parliament could reject what was on

:04:09.:04:14.

offer, that would be an incentive to the EU to give us a bad deal? I

:04:15.:04:20.

think that is the fear. If you are saying to the people you are

:04:21.:04:23.

negotiating with that that is another authority and Theresa May

:04:24.:04:28.

will have to go back and have all of this approved, I think it would have

:04:29.:04:31.

a very significant undermining effect on her negotiating hand.

:04:32.:04:38.

Things change from day to day. We are talking about 2019 and 2018 at

:04:39.:04:44.

the earliest, but if the government lost a vote on the Brexit deal,

:04:45.:04:52.

would he not have to call in someone else? That is why the vote will be

:04:53.:04:57.

meaningful even if the amendment on this meaningful vote will be lost.

:04:58.:05:02.

You cannot do a deal on something as historic as Brexit and have

:05:03.:05:08.

Parliament against you. So, whatever form this vote takes, whenever it

:05:09.:05:13.

happens, it will be hugely meaningful. Whatever label that is

:05:14.:05:22.

given and if she lost it she would call a general election. She could

:05:23.:05:28.

not impose it. To call a general election now you need a majority of

:05:29.:05:32.

MPs which she will not have, so maybe she will not get her election

:05:33.:05:37.

after all. It would be very unlike Labour not to vote for an election.

:05:38.:05:41.

It would be very unlike Labour not to vote for an election.

:05:42.:05:44.

The elections to Stormont have given a boost to the republicans and put

:05:45.:05:47.

the long term status of Northern Ireland in some doubt.

:05:48.:05:49.

Sinn Fein's leader Gerry Adams spoke to reporters

:05:50.:05:52.

Yesterday was in many, many ways a watershed election,

:05:53.:05:57.

and we have just started a process of reflecting what it all means,

:05:58.:06:01.

but clearly the union's majority in the Assembly has been ended,

:06:02.:06:17.

and the notion of a permanent or a perpetual unionist majority

:06:18.:06:19.

Is he right? Is this a watershed? The nationalist vote in the assembly

:06:20.:06:32.

will now come to 39 and the Unionists 38. It is only one member,

:06:33.:06:38.

but it is significant. This is a very serious moment and because of

:06:39.:06:42.

everything else going on with Donald Trump and Brexit it is taking a

:06:43.:06:45.

while for people here to realise just how significant this is.

:06:46.:06:51.

Talking to someone who only recently left a significant role in Northern

:06:52.:06:54.

Ireland politics last night, they said they were very worried about

:06:55.:06:59.

what this means. It is likely there will be a call for some kind of

:07:00.:07:03.

international figure to chair the talks to try and see if there is a

:07:04.:07:08.

way of everybody working together. All sides will probably try to

:07:09.:07:11.

extract more money from the Treasury, but it is a very dangerous

:07:12.:07:16.

moment. Should we regard Michelle O'Neill, who has replaced Mr

:07:17.:07:21.

McGuinness as the leader, it is she the First Minister death probably

:07:22.:07:29.

not quite. An interesting thought. Indeed, the daughter of an IRA man,

:07:30.:07:36.

a fascinating concept in itself. But there are are still a large amount

:07:37.:07:41.

of MLAs who will not give Sinn Fein what they need. But what effect does

:07:42.:07:45.

this have on the legacy of the prosecutions and the great

:07:46.:07:48.

witchhunts which the British Government has vowed to end. There

:07:49.:07:54.

is a majority left on the Stormont assembly to end those. But some

:07:55.:08:00.

would keep them going for time continuing, which is a headache for

:08:01.:08:06.

Theresa May. You have now got 27 Sinn Fein members, 28 DUP, then the

:08:07.:08:12.

SDLP bumps up the numbers a little bit. You have got the British

:08:13.:08:18.

Government transfixed with Brexit which has huge implications for the

:08:19.:08:21.

border between North and South in Ireland, and the Irish government is

:08:22.:08:29.

pretty wavering as well and if there is an election there, Sinn Fein

:08:30.:08:32.

could do well in the Dublin parliament as well. There are a lot

:08:33.:08:37.

of moving pieces. There are and there is a danger that we look at

:08:38.:08:41.

everything through the prism of Brexit, but I found Friday and this

:08:42.:08:46.

weekend fascinating. Theresa May and Scotland were Nicola Sturgeon is

:08:47.:08:50.

framing Brexit entirely through an argument to have a second referendum

:08:51.:08:54.

on independence which she wants to hold it she possibly can. And the

:08:55.:08:59.

Irish situation with the prospect of a hard border with Northern Ireland

:09:00.:09:08.

voting majority to remain, quite a substantial majority, again a few of

:09:09.:09:17.

the instability at the moment. That is on both sides. We will be keeping

:09:18.:09:18.

We will be keeping an eye on it for sure.

:09:19.:09:23.

Yesterday, US President Donald Trump tweeted allegations

:09:24.:09:24.

that his predecessor, Barack Obama, had ordered

:09:25.:09:27.

his phones to be tapped during the election campaign.

:09:28.:09:29.

"Terrible!", Trump wrote, "Just found out that Obama

:09:30.:09:32.

had my "wires tapped" in Trump Tower just before the victory.

:09:33.:09:36.

I'm not quite sure what McCarthyism that is.

:09:37.:09:49.

He followed up with a series of tweets comparing it to Watergate.

:09:50.:09:52.

"How low has President Obama gone to tap my phones during the very

:09:53.:09:58.

The sacred election process, I think at one stage he said it was a dodgy

:09:59.:10:12.

election process, but now it is sacred.

:10:13.:10:13.

You are frightened to go to bed at night, you do not know what you are

:10:14.:10:26.

going to wake up to. Completely uncharted territory here. Little

:10:27.:10:30.

more than a month ago at the inauguration they were making the

:10:31.:10:33.

veneer of small talk and politely shaking hands. He saw Barack Obama

:10:34.:10:41.

and Michelle off on the helicopter. You do not know what is coming next.

:10:42.:10:47.

Is there a scintilla of evidence to back up Donald Trump's claims? Yes,

:10:48.:10:53.

there is, although he is very muddled about it all. I will

:10:54.:10:57.

explain. Remember what happened to Mike Flynn, talking to the Russian

:10:58.:11:09.

and Ambassador will stop they were listening. Barack Obama does not

:11:10.:11:14.

sign of warrants, but somebody else did. So why on earth would you not

:11:15.:11:18.

want to listen to the president elect himself in case he might also

:11:19.:11:26.

be breaking the law. Does that sound to you like convincing evidence or

:11:27.:11:30.

just a supposition? I think Tom should go and work for him, that is

:11:31.:11:35.

the most credible interpretation I have heard for a long time. Start

:11:36.:11:41.

tweeting the case for the tweet. What is interesting about this is my

:11:42.:11:46.

theory is he does not really like the idea of being a president. That

:11:47.:11:50.

wild press conference he gave a couple of weeks ago there was one ad

:11:51.:11:56.

lib that did not get repeated which was, I suppose I am a politician

:11:57.:12:02.

now, as if he was humiliated at the idea of being a president. He likes

:12:03.:12:06.

being the businessman with a swagger tweeting around the clock. And

:12:07.:12:11.

campaigning again. He keeps going to what looked like campaign rallies. I

:12:12.:12:16.

disagree with you about him not liking being president. I think he

:12:17.:12:20.

loves the idea of being the president, but the reality is so

:12:21.:12:24.

frustrating on every level, finding he does not have unlimited room for

:12:25.:12:27.

manoeuvre and so many things have been put in place to stop them doing

:12:28.:12:32.

things he would do in the business environment. We have had two more

:12:33.:12:35.

tweets from him this morning, I guess when he woke up. Who was it

:12:36.:12:41.

who secretly said to the Russian president, tell Vladimir that after

:12:42.:12:44.

the election I will have more flexibility? Who was that? Possibly

:12:45.:12:52.

Hillary Clinton. Is it true the Democratic National committee would

:12:53.:12:56.

not allow the FBI access to check server or other equipment after

:12:57.:13:01.

learning it was hacked? Can that be possible? This was all an issue in

:13:02.:13:05.

the campaign. He is now a president. Shall I point out the flaw in Tom's

:13:06.:13:10.

theory. They were not bugging Michael Flynn's phone, it was the

:13:11.:13:14.

Russian Ambassador's telephone they were barking. Mr Neil, I would never

:13:15.:13:24.

contradict you on this programme. But if you suspect there was

:13:25.:13:27.

criminal activity going on, as there was by Michael Flynn, why would you

:13:28.:13:34.

not want to put on a tap? I don't know. That is it for today.

:13:35.:13:39.

I'll be back next week here on BBC One at 11am as usual.

:13:40.:13:42.

The Daily Politics is back tomorrow at midday on BBC Two.

:13:43.:13:45.

But remember - if it's Sunday, it's the Sunday Politics.

:13:46.:13:53.

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