:00:00. > :00:11.Trump savages Obama for tapping his phone,
:00:12. > :00:19.though so far, not a shred of evidence.
:00:20. > :00:21.And who's Trump's new Middle East envoy?
:00:22. > :00:23.According to one paper, it's Tony Blair.
:00:24. > :00:31.And then, in Budget week, there's the small matter
:00:32. > :00:50.And on the eve of his first Budget, the Chancellor Philip Hammond,
:00:51. > :00:57.confronted by huge choices, joins me live.
:00:58. > :00:59.His shadow, John McDonnell, is also here to talk tax,
:01:00. > :01:02.spending and the big choices for the left.
:01:03. > :01:04.And in his first public appearance since the Stoke
:01:05. > :01:06.by-election drubbing, Ukip's leader, Paul Nuttall,
:01:07. > :01:18.Here to play us out this morning, the star of bluegrass,
:01:19. > :01:20.Alison Krauss - winner of 27 Grammy awards no less.
:01:21. > :01:30.It is knowing I am not shackled by forgotten words
:01:31. > :01:39.# And the ink stains... # Reviewing the papers this morning,
:01:40. > :01:41.on a mini-break from irritating President Trump, the BBC's
:01:42. > :01:44.North America editor, Jon Sopel. The New Statesman's deputy editor,
:01:45. > :01:47.Helen Lewis, and Stephanie Flanders All that after the news,
:01:48. > :01:50.read for us this The Chancellor has described
:01:51. > :01:56.as "reckless" calls for him to increase spending in his first
:01:57. > :02:00.Budget on Wednesday. Writing in the Sunday Times,
:02:01. > :02:02.Philip Hammond said the economy had proven to be robust,
:02:03. > :02:05.but there was still a need for discipline as the country
:02:06. > :02:08.prepares for Brexit. ?500 million of additional funding
:02:09. > :02:12.will be made available to help streamline training
:02:13. > :02:14.for teenagers in England in industries such as engineering
:02:15. > :02:17.and manufacturing. Philip Hammond will announce
:02:18. > :02:20.the plan as part of the biggest shake up of further
:02:21. > :02:22.education in 70 years. Here's our education
:02:23. > :02:26.editor, Branwen Jeffreys. Employers say more high-level,
:02:27. > :02:33.technical skills are needed, not just in manufacturing,
:02:34. > :02:36.but across the world of work. In the Budget this week,
:02:37. > :02:39.they will get a promise of support, extra money to back a shake-up
:02:40. > :02:42.in technical education - the biggest seen in
:02:43. > :02:46.England in a generation. 15 new routes into work
:02:47. > :02:48.from training, all including maths, Employers say it is welcome
:02:49. > :02:55.and should help more young people It is really, really
:02:56. > :03:01.important that those providing these courses,
:03:02. > :03:03.like colleges, are working closely with businesses in every local area
:03:04. > :03:08.to make sure the courses put on match what jobs are available in
:03:09. > :03:12.the local area because that is how young people will get the best
:03:13. > :03:16.pathways into skilled work. The Chancellor is expected
:03:17. > :03:22.to promise ?500 million a year by 2022-23 -
:03:23. > :03:25.that is when 15 new technical But further education has seen a 7%
:03:26. > :03:30.real terms cut per student Many colleges in England are facing
:03:31. > :03:38.tough financial times and spending on technical education has not grown
:03:39. > :03:40.as fast as in schools. The UK has fallen
:03:41. > :03:45.behind other countries. The hope is more young people
:03:46. > :03:48.with high-level skills. But there is a lot of catching up to
:03:49. > :03:52.do at a time when being competitive The Prime Minister is facing growing
:03:53. > :04:00.pressure to safeguard the rights of more than 3 million
:04:01. > :04:03.EU citizens living and A cross-party committee of MPs has
:04:04. > :04:09.called on Theresa May to clarify now whether the EU citizens will be
:04:10. > :04:12.allowed to stay after Brexit, rather than first waiting
:04:13. > :04:15.for the European Union to decide what will happen to British people
:04:16. > :04:20.living on the continent. Barack Obama has denied accusations
:04:21. > :04:24.by President Trump that he ordered phones at Trump Tower in New York
:04:25. > :04:27.to be tapped during last In a series of messages on social
:04:28. > :04:33.media, Donald Trump compared the alleged bugging to the Watergate
:04:34. > :04:37.scandal. China's annual parliamentary session
:04:38. > :04:40.has opened in Beijing, with the Communist Party leadership
:04:41. > :04:43.setting out its priorities High on the agenda will be the state
:04:44. > :04:47.of the Chinese economy, as well as major challenges
:04:48. > :04:49.the country faces in A memorial is to be built close
:04:50. > :04:56.to the beaches of the D-Day landings in northern France to honour
:04:57. > :04:58.the thousands of British soldiers and sailors who died
:04:59. > :05:02.during the operation in 1944. The Government has
:05:03. > :05:06.donated ?20 million towards the cost of the monument,
:05:07. > :05:34.which will be unveiled on the 75th Lots of Trump. He accuses Obama of a
:05:35. > :05:42.new Watergate plot. The Chancellor wants to talk about T levels. A
:05:43. > :05:51.rather unsettling picture, Donald Trump with his tie blowing up. ?60
:05:52. > :05:57.billion Brexit fighting fund, lots to talk about. The Observer,
:05:58. > :06:04.interesting story about a watchdog looking into claims, drilling down
:06:05. > :06:09.into voters, information and privacy laws not being broken. Trump again
:06:10. > :06:15.there, shouting. The Mail on Sunday, Tony Blair's secret White House
:06:16. > :06:22.summit. Before the programme opened, we work phoned by his office to say
:06:23. > :06:26.it was not true. -- we were phoned. Jon Sopel knows more about that.
:06:27. > :06:31.Starting with the overall picture of the economy just before Philip
:06:32. > :06:36.Hammond's first Budget and there is an impression yesterday and today in
:06:37. > :06:41.the papers he has got 12 billion extra to spend, a giveaway budget of
:06:42. > :06:47.some kind. The Treasury is keen to douse that impression. Dan Hodges in
:06:48. > :06:51.the Mail on Sunday saying the Budget come up batting down the hatches. It
:06:52. > :07:12.is not the first Brexit budget, it is the last three Brexit budget
:07:13. > :07:18.Which? -- it is the last pre-Brexit-macro budget. We still
:07:19. > :07:23.have a huge question mark about what happens to the economy as we see
:07:24. > :07:26.what the UK will look like after it leaves the EU. The metaphor is not
:07:27. > :07:32.that we will go into terrible times but the sky is a strange colour and
:07:33. > :07:38.we are failing towards it so get the cleats tied up. I suspect Mr Hammond
:07:39. > :07:41.would like a contrast between him and even George Osborne who was not
:07:42. > :07:47.beyond spending the money that came his way when he got nice forecasts
:07:48. > :07:52.and a year later coming back to it. Philip Hammond has been writing
:07:53. > :07:57.himself in the papers. A couple he has done for the Sun and also for
:07:58. > :08:03.the Sunday Times. Focusing on the T levels and on the fact that it is
:08:04. > :08:08.not just about having room for manoeuvre in public finances, we
:08:09. > :08:11.have problems with the economy, particularly low productivity growth
:08:12. > :08:14.which has been at the heart of our economic problems long before the
:08:15. > :08:19.Brexit vote and training and skills is one of the areas that keeps
:08:20. > :08:26.coming back. It will be another Budget that promises to do something
:08:27. > :08:30.about that. I think I would say I like the idea but I have been
:08:31. > :08:34.sharing and inclusive growth commission of the last year for the
:08:35. > :08:37.Royal Society of Arts, going around the country, taking evidence of what
:08:38. > :08:41.could solve some of these problems, they agree on training and skills,
:08:42. > :08:45.but it is not just about money, they say, we need more freedom to make it
:08:46. > :08:51.right. It has to be delivered locally. We need a new relationship
:08:52. > :08:54.between the centre and local, not just here, on social care, all of
:08:55. > :08:59.those things. Helen Lewis, former boss of the Treasury, Sir Nicholas
:09:00. > :09:04.MacPherson, he wades in with a U-turn on death taxes. It is really
:09:05. > :09:09.interesting. I think it is fascinating because he has worked on
:09:10. > :09:12.34 budgets and they have all have productivity and growth as the theme
:09:13. > :09:18.and in all that time, the growth rate has remained unchanged. We take
:09:19. > :09:23.our excitement where we can get it as political journalists. It tends
:09:24. > :09:27.to move around but often the story of budgets is how little changes. It
:09:28. > :09:35.is interesting. We have been talking about social care and the death tax,
:09:36. > :09:39.those big deflation -- decisions are still being kicked down the road.
:09:40. > :09:43.Those on the pension locks seem to be doing better. Everyone is as
:09:44. > :09:47.having a hard time. We are all ageing, we cannot help it, big
:09:48. > :09:53.problems for the Treasury. Labour's response. The interesting thing
:09:54. > :09:59.about John McDonnell's writing, individual policies that are
:10:00. > :10:05.popular, capping energy prices, the question is whether it adds up to a
:10:06. > :10:10.package people like. Let us talk about President Trump, Jon. What a
:10:11. > :10:13.storm. Extraordinary. It is hard to describe what it is like living in
:10:14. > :10:18.the US at the moment where you wake up and you think, I wonder what he
:10:19. > :10:22.has said now. Yesterday was an absolute classic. I thought it would
:10:23. > :10:27.be interesting to contrast the way the British press are covering it,
:10:28. > :10:34.Trump launches Twitter storm, Washington Post, Trump citing no
:10:35. > :10:42.evidence that users Obama of Watergate. Unsubstantiated claim
:10:43. > :10:54.Obama wiretapped. The Wall Street Journal owned by Rupert Murdoch. The
:10:55. > :10:58.New York Times, no evidence... It seems even the American media think
:10:59. > :11:03.they have to point out that, look, he has said the stuff, we will cover
:11:04. > :11:09.him, he is the leader of the free world after all, but evidence, there
:11:10. > :11:14.is none. He has called Obama sick, sad, bad, all the rest of it. Is
:11:15. > :11:18.this purely an attempt to deflect from his own problems with Jeff
:11:19. > :11:23.Sessions, the Attorney General, in trouble over Russian links. Then
:11:24. > :11:29.they will forget what was going on before. Possibly. He has used that
:11:30. > :11:33.to good effect in the past. But the problems come back to Russia and the
:11:34. > :11:38.links. A lot of circumstantial evidence, absolutely no evidence of
:11:39. > :11:41.any toward contacts, but it is so strange, the joke going around
:11:42. > :11:45.Washington at the moment, the Russian ambassador is the most
:11:46. > :11:50.boring man in the city. Because no one ever remembers meeting him! That
:11:51. > :11:53.is one of the narratives. Why are there so many meetings with the
:11:54. > :11:57.Russians and Jeff Sessions the Attorney General had two of them
:11:58. > :12:02.that he completely forgot to mention when he was under oath at his
:12:03. > :12:06.confirmation hearing? From the outside, somebody making that kind
:12:07. > :12:11.of, quote, mistake under oath in front of Congress, they would be
:12:12. > :12:23.out. To use the verb with currency this week, he has recused himself.
:12:24. > :12:29.To use a Scottish phrase, his coat is hanging by a shopkeeper. I do not
:12:30. > :12:33.think you can afford any more mishaps. Donald Trump is raging at
:12:34. > :12:38.the world, raging in Florida at the leaks taking place that the
:12:39. > :12:42.Washington Post newspaper managed to find about the Jeff Sessions meeting
:12:43. > :12:46.with the ambassador, raging at his officials for how they are handling
:12:47. > :12:53.it, at the media for how we are putting it, he is not a happy bunny.
:12:54. > :12:59.You have been following this too, we have never had a president behave
:13:00. > :13:03.like this. The Russia thing is a weak point. He is so far at odds
:13:04. > :13:09.with everybody in his party, in Washington, and it is hard to
:13:10. > :13:21.overestimate how is it Eric, how odd in the US context his support or
:13:22. > :13:25.favourable comments about Russia are -- esoteric. His own party finds
:13:26. > :13:29.hard to swallow it. The meetings keep coming back, you can see why it
:13:30. > :13:35.riles him. What we have not talked about enough at London news Central
:13:36. > :13:39.is the Northern Ireland elections because it has been a very important
:13:40. > :13:45.shift in Northern Ireland politics. Sinn Fein up, the DUP down. It is a
:13:46. > :13:49.huge omission, a big omission from the Brexit campaign. Northern
:13:50. > :13:53.Ireland got so little coverage. We worked on an edition with Gordon
:13:54. > :13:56.Brown and he said, I cannot believe this is not being discussed on the
:13:57. > :14:06.mainland. The Stormont assembly has gone down, a contraption, but the
:14:07. > :14:10.big story is the Unionists do not have a majority. Sinn Fein say, we
:14:11. > :14:14.do not want to work with the DUP leader, Arlene Foster, the scandal
:14:15. > :14:17.prompted the election. There is a possible 80 of another election in
:14:18. > :14:22.three weeks, the possible deal of direct rule from Westminster. As
:14:23. > :14:26.Adam Boulton says, all eyes on Scotland actually, Northern Ireland
:14:27. > :14:32.might have a referendum. Interesting piece. He says in due course,
:14:33. > :14:35.Northern Ireland might leave the union over this eventually and at
:14:36. > :14:40.that point, if Scotland goes too, England faces a Celtic union of
:14:41. > :14:43.Scotland and Ireland to the north and west, a completely different
:14:44. > :14:48.kind of country. Absolutely unintended and segments of Brexit
:14:49. > :14:55.might be that what you have to do is put in custom checks at ports on the
:14:56. > :14:58.island of Ireland. Something that got almost no discussion has become
:14:59. > :15:03.a huge critical issue. You mentioned the word Brexit, Stephanie,
:15:04. > :15:09.interesting piece here in the Observer. We have a lot of things
:15:10. > :15:12.building up but he makes a good point, we have ended up, Theresa
:15:13. > :15:17.May, she was supposed to have a reputation for being cautious,
:15:18. > :15:22.careful, Vicar's daughter, setting up quite a few gambles on the way
:15:23. > :15:25.she has positioned herself. There is a gamble the economy will stay OK
:15:26. > :15:31.and she does not need to have in election any time soon but the deal
:15:32. > :15:36.will somehow be politically tolerable, when in fact, we might
:15:37. > :15:39.have thought she would be lowering expectations around that deal,
:15:40. > :15:47.telling people, this is going to be difficult, reminding... Theresa May
:15:48. > :15:52.with a wild gambler's glint in her eye. We are not prepared for the
:15:53. > :15:58.idea it could cost us money and it could be a risky strategy.
:15:59. > :16:10.John, the other story of the day, Tony Blair, Donald Trump, peace
:16:11. > :16:13.envoy... Donald Trump's son-in-law is meeting experts as they try to
:16:14. > :16:17.formulate the Middle East policy that makes sense and you can watch
:16:18. > :16:21.the way they have been trying to formulate the policy. The embassy
:16:22. > :16:30.was going to move to Jerusalem, now it is not, and so it goes on. I'm
:16:31. > :16:34.not in favour of a one state or two state solution, and Tony Blair who
:16:35. > :16:37.was in Washington last week went in there and is a former head of the
:16:38. > :16:41.quarter grew to probably talk to them about this is a good guy, this
:16:42. > :16:45.is not so good, these are the people you should meet, but I don't think
:16:46. > :16:49.there's any prospect of him having a role. Also from what I understand
:16:50. > :16:52.his much more focused on trying to reinvigorate the centre ground and
:16:53. > :16:57.the new foundation in setting up and the last thing I suspect he feels he
:16:58. > :17:02.needs is to be seen holding hands with Donald Trump. I kind of think
:17:03. > :17:08.probably there were meetings, I don't think the rest of it is true.
:17:09. > :17:15.Helen, much on the Labour Party this week? It went quiet after the
:17:16. > :17:18.by-election. The idea of the zombie Labour Party, it is staggering on
:17:19. > :17:21.but it is not quite dead at the moment. It has come down to
:17:22. > :17:26.succession which is as much a problem for the Jeremy Corbyn
:17:27. > :17:32.sceptics as supporters. Nobody has an heir apparent animal. I'm told
:17:33. > :17:36.they are spending a lot of time under the radar trying to Green new
:17:37. > :17:41.successes, the Next Generation. The trouble is a lot of these people
:17:42. > :17:46.came in in 2015 so they might be talented but they are very green.
:17:47. > :17:52.The McDonnell amendment is coming up so you might remember from the
:17:53. > :17:55.excitement of leadership elections past, 15% MPs need to nominate you
:17:56. > :17:59.to get you onto the ballot, that are seen as another block from someone
:18:00. > :18:04.getting on, they want to reduce it to 5% so that is the next battle to
:18:05. > :18:07.come. The generation in the saddle in charge, thank you very much.
:18:08. > :18:12.It's March and you're living in the British Isles.
:18:13. > :18:18.If you need all the dots joined up, then here's Sarah Keith-Lucas
:18:19. > :18:24.We have a real mixture of weather types out there, reflected in the
:18:25. > :18:28.pictures from the weather watchers. In Scotland we have had a bit of
:18:29. > :18:33.snow falling and we also have some heavy downpours of rain. Here are
:18:34. > :18:40.the shower clouds in Wales captured in the morning. Certainly some
:18:41. > :18:47.showers in the south-west of England and Wales too. The weather front
:18:48. > :18:51.brings outbreaks of rain, slow to come across the north of Wales and
:18:52. > :18:54.the Pennines, but further north it is an improving story across
:18:55. > :18:58.Scotland and for Northern Ireland with showers easing away later in
:18:59. > :19:02.the day. As we had through this evening and overnight most of the
:19:03. > :19:06.showery rain clears away to the east saw more quiet and dry spell tonight
:19:07. > :19:10.with temperatures dropping down to around to or three degrees, even in
:19:11. > :19:15.the towns and cities, and mist and fog patches first thing on Monday.
:19:16. > :19:18.On Monday initially we see rain across the south-west of England and
:19:19. > :19:23.south Wales, but that clears away and then it is an improving day.
:19:24. > :19:29.Drier and lighter winds compared to today. Still some scattered showers
:19:30. > :19:33.and temperatures around 7 to 11 degrees.
:19:34. > :19:35.Ukip's leader, Paul Nuttall, has been called the "Purple Pinocchio"
:19:36. > :19:38.and he's been roundly derided on social media as a fantasist.
:19:39. > :19:40.One of the party's biggest donors, Arron Banks says his leadership
:19:41. > :19:43.is "weak" and the party is "thrashing around for a purpose".
:19:44. > :19:53.It was a very bruising by-election for you, and you then went on
:19:54. > :19:57.holiday. Where did you go? I disappeared somewhere in this
:19:58. > :20:01.country. I wanted to get away, I was being hounded by the press, my
:20:02. > :20:07.family were being hounded by the press as well. Frankly it was a
:20:08. > :20:11.long, difficult campaign and I am back in the saddle mouth. That is
:20:12. > :20:14.the main thing and Ukip will move forward. After all the things that
:20:15. > :20:21.were said about you during that campaign did you ever think I might
:20:22. > :20:25.step down as leader? I never thought I was the wrong guy, of course you
:20:26. > :20:31.do have moments of doubt. It was a highly personal campaign. My family
:20:32. > :20:34.were being hounded in a way that I think most politicians will never
:20:35. > :20:39.have to go through. When you're 86-year-old grandmother gets a
:20:40. > :20:43.camera shoved in her face, when your father is being followed to work,
:20:44. > :20:47.your wider family are being harassed, it is difficult but it has
:20:48. > :20:51.made me more determined because if it beats me then it beats Ukip and
:20:52. > :20:55.Ukip has a great future as long as it stays in the picture. The thing
:20:56. > :20:58.that was said about you again and again was simply that you were not
:20:59. > :21:03.telling the truth about important parts of your life so can we go
:21:04. > :21:09.through a few of those things? Yes. Why did you say you had lost someone
:21:10. > :21:12.close to you at Hillsborough? I want to go back because there was
:21:13. > :21:18.orchestrated smear campaign suggesting I wasn't at Hillsborough.
:21:19. > :21:24.Can I put this on the record... Who was smearing you? There was an
:21:25. > :21:33.orchestrated campaign done by a political party, I will leave it at
:21:34. > :21:39.that. Was it the Labour Party? Yes, they suggested I wasn't at
:21:40. > :21:43.Hillsborough, I have given evidence to Operation Resolve and I am
:21:44. > :21:48.prepared to stand in a court of law. As for the close, personal friends
:21:49. > :21:53.issue, it went on my website in 2011, I didn't put it there, my
:21:54. > :21:58.press officer offered to resign, I refuse to accept it because it is my
:21:59. > :22:02.responsibility. You accept responsibility? I didn't check but I
:22:03. > :22:06.have apologised to the people that matter. I want to make another point
:22:07. > :22:10.because people should get perspective on this, it's not as if
:22:11. > :22:16.I've lied on weapons of mass destruction, taken us into an
:22:17. > :22:21.illegal war. The way some of the media has portrayed this, it has
:22:22. > :22:24.been unfair. When you are asked about Hillsborough afterwards you
:22:25. > :22:29.said, I have lost someone who I know, come I ask who that was? No,
:22:30. > :22:34.because as a family we all lost someone we knew, it was a horrendous
:22:35. > :22:42.day, I was 12 and a half years of age, I have said everything I have
:22:43. > :22:47.to say to Operation Resolve. Were you surprised when Ukip officials
:22:48. > :22:51.walked out because of what you said? One of them said he walked out as a
:22:52. > :22:57.result of what Arron Banks said, and I have his complete support, but I
:22:58. > :23:00.am always sad when people leave Ukip, always, and I don't want
:23:01. > :23:06.people to leave Ukip at the top or the bottom of the party. Was this
:23:07. > :23:09.the same precipice who was responsible for saying you were a
:23:10. > :23:18.professional footballer for Tranmere Rovers, which you weren't? I played
:23:19. > :23:24.Tranmere Rovers from the age of 13 to 18. Not as professional. Yes, for
:23:25. > :23:28.the youth team, it was the same press officer and it was a mistake.
:23:29. > :23:33.Again, it was my website and I should have checked. Was she the
:23:34. > :23:38.same person who was the over enthusiastic researcher who claimed
:23:39. > :23:42.you had a Ph.D.? No, that is a lie. I have never claimed in my life that
:23:43. > :23:47.I had a Ph.D. And I'm on record in interviews time and time again
:23:48. > :23:52.saying I would like to finish my Ph.D., that came from a linked in
:23:53. > :23:55.page that wasn't even mine. Again on your website you claimed credit for
:23:56. > :24:02.being on the management board of Northwest training Council... No,
:24:03. > :24:12.what happened was they offered me... You told the Guardian, your
:24:13. > :24:15.spokesman said. At the time, they OK'd that press release, so
:24:16. > :24:20.everything was factual and I don't know what's happened in the
:24:21. > :24:28.meantime. They asked me verbally, they OK'd the press release in 2009,
:24:29. > :24:32.I don't know what happened between then and now. So when people say you
:24:33. > :24:36.are fantasist, and you have seen the stuff on social media, you are there
:24:37. > :24:43.with the Beatles, on the moon, at the coronation... It has become a
:24:44. > :24:48.joke and that means you have become a bit of a joke figure and I say
:24:49. > :24:51.again, are you therefore really the person to lead a party that is
:24:52. > :24:57.having a tough time at the moment? There is a narrative out there being
:24:58. > :25:00.spun by media outlets that want to see Ukip destroyed. Of course I am
:25:01. > :25:08.the right person to lead the party, I was the only person who could have
:25:09. > :25:12.unified the party, and brought it together. What Ukip has got to do
:25:13. > :25:16.now is it has got to hold its nerve. Politics will come back onto Ukip's
:25:17. > :25:20.turf in the near future when the Government starts to backslide on
:25:21. > :25:28.Article 50 and we have got to stay in the game. Arron Banks was your
:25:29. > :25:32.main founder... No, he wasn't. This is another media lie. Just because
:25:33. > :25:37.you tell a lie often enough, it doesn't make it the truth. He has
:25:38. > :25:43.never been Ukip's major donor and I have a commitment of a consortium of
:25:44. > :25:46.Ukip's biggest donors that we are financially secure going forward.
:25:47. > :25:52.Because in the last quarter you had ?33,000 raised, and way behind
:25:53. > :25:56.parties like the Lib Dems, which leads people to think maybe this is
:25:57. > :26:00.the beginning of the end for Ukip. That wasn't on my watch, only one
:26:01. > :26:06.month of that was on my watch, and would you give money to a party that
:26:07. > :26:10.had altercations in Strasbourg and two leadership elections? If you
:26:11. > :26:14.look at the next quarter there was a big improvement. When Arron Banks
:26:15. > :26:20.compares the warning of Ukip to running a Squash club or a jumble
:26:21. > :26:26.sale, what do you say to him? A lot of what he says, I tend to agree
:26:27. > :26:30.with, OK? And I get on with him. Ukip needs to professionalise, but I
:26:31. > :26:35.have only been in this role for 13 weeks, five of that spent fighting a
:26:36. > :26:40.by-election, two was the Christmas period. Give me time to sort out
:26:41. > :26:46.this mess. Trust me, politics will come back onto Ukip's turf and Ukip
:26:47. > :26:50.will prosper in the future but only if people stop infighting and hold
:26:51. > :27:04.their nerve. Sean Douglas Carswell remain as a Ukip MP? This is about
:27:05. > :27:07.the knighthood issue, it will go to the national Executive so let's see
:27:08. > :27:13.what happens. Do you personally think he should remain as a Ukip MP?
:27:14. > :27:18.If it is proven that Douglas lobbied for Nigel to get a knighthood, and
:27:19. > :27:23.let's not forget Nigel Farage deserves a knighthood or a peerage,
:27:24. > :27:28.if it is proven that Douglas has done that I don't see a problem.
:27:29. > :27:31.Paul Nuttall, not going anywhere. Thank you for talking to us.
:27:32. > :27:33.If Labour is to recover from the Copeland by-election
:27:34. > :27:36.defeat, the low poll ratings, the soft coup and the infighting,
:27:37. > :27:38.the party must persuade voters it can be trusted on the economy.
:27:39. > :27:41.John McDonnell, the Shadow Chancellor, who spent last week
:27:42. > :27:43.looking over a cliff, joins me now.
:27:44. > :27:50.What did you see at the bottom of the cliff? I saw it wasn't the way
:27:51. > :27:53.to go and I think most people in the party saw that as well and we need
:27:54. > :27:58.to unite and that's what's happening. Last week we were talking
:27:59. > :28:00.to Patrick McLoughlin and I put to him the Resolution Foundation
:28:01. > :28:05.figures for income distribution over the course of the rest of this
:28:06. > :28:09.Parliament. The bottom 60% have a really tough time coming as things
:28:10. > :28:16.are, what is the Labour Party's plan to help them. The latest prediction
:28:17. > :28:22.is that people lose about ?1100. We are the only economy in Europe that
:28:23. > :28:26.growing while wages are falling so it is clear what we have to do.
:28:27. > :28:31.Firstly people need a pay rise. We believe there is a squeeze on living
:28:32. > :28:36.standards and there should be a real living wage, that's ?10 per hour, we
:28:37. > :28:40.also help they should be capping energy costs and bringing rail back
:28:41. > :28:44.into public ownership which will help reduce fares but we also need
:28:45. > :28:48.to address the difference between men and women. We still have a
:28:49. > :28:52.gender pay gap in this country which is scandalous. All of those things
:28:53. > :28:56.can come about if we have a fair taxation system. We can tackle tax
:28:57. > :29:02.avoidance which is on an industrial scale in this country, and the tax
:29:03. > :29:03.cuts to the rich and to the corporations and invest and grow our
:29:04. > :29:19.economy. This is not rocket science, it is basic economics.
:29:20. > :29:23.Something slightly strange is going on which is that your messages on
:29:24. > :29:25.all of that and on the NHS and on social care are really popular but
:29:26. > :29:28.the party is not popular and that is probably because people don't think
:29:29. > :29:31.it adds up so can we go through some of the numbers and can I ask for the
:29:32. > :29:33.definitive John McDonnell answer to how much the NHS now needs. The
:29:34. > :29:39.independent estimates now on NHS and social care is between 8 and 12
:29:40. > :29:43.billion. We believe the Government put aside as is reported 60 billion
:29:44. > :29:49.increased tax receipts in January have contributed to this as well for
:29:50. > :29:54.a crisis in case of Brexit. The crisis is here, now, in our social
:29:55. > :29:57.care in the NHS. So you shouldn't repair for Brexit? We should, but
:29:58. > :30:02.some of that money needs to deal with the crisis in social care.
:30:03. > :30:10.The cuts for disabled people, you have attacked it as cruel.
:30:11. > :30:14.Presumably you would replace that? What George Osborne did, when he was
:30:15. > :30:20.reversed on PIP, he absorbed that money into the overall budget in
:30:21. > :30:28.contingencies, we would expect the Government to do that as well. This
:30:29. > :30:32.cut, remember what it is, 160,000 of the most disabled people in this
:30:33. > :30:36.country, the courts have ruled against the Government, they have
:30:37. > :30:41.got to address this issue. We cannot allow these people to suffer any
:30:42. > :30:43.more. You also want to reverse the cuts to universal credit and
:30:44. > :30:49.employment support allowance which your office suggests will cut you --
:30:50. > :30:58.cost you ?40.5 billion. We would look at making sure we reverse the
:30:59. > :31:05.tax cuts and a fairer system and we would be growing the economy as
:31:06. > :31:11.well. We will be publishing in detail all of our tax proposals. The
:31:12. > :31:15.overall principle about this is that we have got to have fairness in our
:31:16. > :31:19.economy. That is why I am saying, the wealthy and others and
:31:20. > :31:24.corporations should be publishing income tax returns. You said just
:31:25. > :31:32.now the country needs a pay rise, public sector workers, you will and
:31:33. > :31:37.the current freeze on public sector pay as you can end. How much are you
:31:38. > :31:43.going to lift the cap? That would be part of the negotiations. Presumably
:31:44. > :31:47.by inflation? We are looking to see what will come out of negotiations.
:31:48. > :31:53.We want to make sure living standards are not eroded like they
:31:54. > :31:58.are now. People get a pay rise, we have got at the moment 6 million
:31:59. > :32:03.people living below the living way, 4 million children in poverty, two
:32:04. > :32:09.thirds in families where people are at work. The wages are not coping
:32:10. > :32:14.with what people's needs are. You think the pay rise should be pegged
:32:15. > :32:21.to inflation? We believe it should make sure people are not losing out.
:32:22. > :32:25.That means, yes, matching inflation, but there are areas where
:32:26. > :32:31.negotiations will settle at pay rises that are fair. This example,
:32:32. > :32:35.in the 1990s, I can remember campaigning, saying the directors of
:32:36. > :32:39.FTSE 100 companies were earning 50 times the amount of the average
:32:40. > :32:45.employee. We thought it was a scandal. It is now 180 times. Huge
:32:46. > :32:47.inequalities to be addressed. I am going through the spending
:32:48. > :32:52.commitments because you want to restore maintenance grants for the
:32:53. > :32:58.poorest and bring back maintenance allowance for 18-year-olds. Another
:32:59. > :33:03.4.5 billion. It is going to add up. Let us talk about how much is being
:33:04. > :33:09.given to the corporations, billion. Where does that figure come from? If
:33:10. > :33:15.you restored the... If you did not cut corporation tax, that is 7
:33:16. > :33:20.billion. Between now and 2020, the reductions down to the levels the
:33:21. > :33:27.Government want is 70 billion. Sorry, it is 7 billion. If you add
:33:28. > :33:32.up the corporation tax cuts, the cuts to capital gains, the bank's
:33:33. > :33:38.Levy, inheritance tax, it comes to 70 billion. If you look at what
:33:39. > :33:44.Philip Hammond threatened, to go to a tax haven Britain, Irish levels of
:33:45. > :33:49.corporation taxes, 120 billion. It cannot be acceptable. Let me ask you
:33:50. > :33:56.about two other things. Scrapping tuition fees, Jeremy Corbyn talked
:33:57. > :34:03.about it in his campaigns. Is it still on the cards? Yes, it is. A
:34:04. > :34:06.big essence of this is if we start growing the economy again, start
:34:07. > :34:09.investing in it, we will grow the economy and we will be able to
:34:10. > :34:14.afford the public services we need. The problem at the moment, the
:34:15. > :34:18.economy is not growing on the scale we want. The rewards of the growth
:34:19. > :34:24.are not being distributed fairly. Cross your fingers and trust us, we
:34:25. > :34:29.will grow the economy so fast we will be able to pay for these? Not
:34:30. > :34:35.at all. We are saying we will have a fair taxation system, we will not
:34:36. > :34:38.have giveaways to the rich. We will invest in the economy and on that
:34:39. > :34:43.basis we will be able to afford the public services we need and we will
:34:44. > :34:51.also be able to afford fair wages. It is basic economics. Sound common.
:34:52. > :34:55.What was the soft coup? -- sound common-sense. A number of people
:34:56. > :35:01.stirring in advance of the by-election. You were clearly
:35:02. > :35:08.talking about more than Tony Blair and Peter Mandelson. Who are you
:35:09. > :35:12.talking about? Peter Mandelson said, everyday I do something to undermine
:35:13. > :35:18.Jeremy Corbyn. There must have been people on the end of that e-mail
:35:19. > :35:22.chain. What is interesting, I think we have all looked over the edge on
:35:23. > :35:27.Copland and we have decided we need to unite the party. I will be having
:35:28. > :35:31.a cup of tea with Peter Mandelson. There will be some disagreements.
:35:32. > :35:34.The most important thing we have is responsibility to the party and to
:35:35. > :35:40.the country. Would you have a cup of tea with Tony Blair? Of course. I am
:35:41. > :35:45.willing to talk to everybody. You are holding your hands out to
:35:46. > :35:51.progress and that wing of the party? Of course. I will talk to Progress
:35:52. > :35:57.at any stage. I was on a march yesterday with NHS workers, nurses,
:35:58. > :36:02.doctors and Jeremy Corbyn and we were there to listen to people. On
:36:03. > :36:07.social care, it is in crisis. The Government has cut 4.5 billion from
:36:08. > :36:11.social care. Elderly people are not getting the care they need and they
:36:12. > :36:16.are being treated on trolleys in hospitals and they cannot come out
:36:17. > :36:21.because social care is not Bell. We have to unite the party to provide
:36:22. > :36:25.an effective opposition. I think Tony Blair, Peter Mandelson, myself,
:36:26. > :36:28.Jeremy Corbyn, we recognise the responsibility on our shoulders and
:36:29. > :36:32.we will work together. All wings of the party looking towards next
:36:33. > :36:37.generations of leaders. You have talked about various people.
:36:38. > :36:43.Everyone is ruining people. How important is it a John McDonnell
:36:44. > :36:50.amendment, to lower the threshold... You try to stand for leader but you
:36:51. > :36:57.couldn't. Allowing more left-wing able to stand, how important is
:36:58. > :37:00.that? John McDonnell will not stand for leadership again. I have
:37:01. > :37:04.campaigned for lowering the threshold for years. But it is not
:37:05. > :37:08.that significant for me because Jeremy Corbyn will lead us into the
:37:09. > :37:11.next election. We are building up a succession for the long-term future
:37:12. > :37:14.and we have great young talent coming through but they need more
:37:15. > :37:20.experience before eventually succeeded. Jeremy will take us into
:37:21. > :37:24.the next election. This amendment will be decided at conference but it
:37:25. > :37:26.is not a big issue. What about the people on the other side of the
:37:27. > :37:32.party who would like to go back to the original selection system? I
:37:33. > :37:38.understand. Look, we have got a huge party now, half a million new
:37:39. > :37:42.members, largest political party in Western Europe, our members do not
:37:43. > :37:49.want to go back to a small group deciding the leader, they want a
:37:50. > :37:51.democratic say. We are a democratic party in gauging people. People do
:37:52. > :37:57.not want to go back to where decisions are made by a small elite
:37:58. > :37:58.group. John McDonnell, future leader or not, come back again, thank you
:37:59. > :38:01.for talking to us. Now for a look at what's coming up
:38:02. > :38:12.straight after this programme. We will be asking if pornography
:38:13. > :38:16.should be on the curriculum. Species doomed, climate change and, ever
:38:17. > :38:20.rising population, does the Vatican need to accept contraception? See
:38:21. > :38:23.you at 10am on BBC One. On Wednesday, Philip Hammond
:38:24. > :38:26.will deliver the famous red box from Downing Street to Parliament
:38:27. > :38:28.for his first Budget as Chancellor. Within a couple of weeks,
:38:29. > :38:31.the Prime Minister will trigger Article 50 and begin Britain's exit
:38:32. > :38:33.from the EU. And yes, the two
:38:34. > :38:40.things are connected. Can I start by asking about the
:38:41. > :38:45.reports you are going to do something big for training? I have
:38:46. > :38:48.been around for many years and every Chancellor announces he will do
:38:49. > :38:53.something about productivity and training and out there in the world,
:38:54. > :38:56.nothing happens. Why will it be different this time? Two big
:38:57. > :39:01.agendas, building an economy in the UK that works for everyone, making
:39:02. > :39:03.sure everybody has a chance to achieve their potential, and the
:39:04. > :39:09.other is, repairing Britain's economy for a local future after
:39:10. > :39:14.Brexit. Both of those imply we need to do significantly more in training
:39:15. > :39:21.and upscaling our young people so yes, it is a priority for me. In the
:39:22. > :39:23.Autumn Statement, we focused on capital investment in
:39:24. > :39:27.infrastructure. If you talk to anybody operating in the economy,
:39:28. > :39:32.they will tell you the other thing we need to address is skills. It is
:39:33. > :39:36.a high priority and I advise you to tune in on Wednesday to see what I
:39:37. > :39:41.have to say. Are we going to be talking about T levels? The
:39:42. > :39:49.important thing is we have got to establish genuine parity of esteem.
:39:50. > :39:52.Some people will study A-levels and school -- at school and go on to
:39:53. > :39:56.higher education and the academic route and others will take a
:39:57. > :40:00.technical route. What we need to do in this country that others, the US,
:40:01. > :40:06.Germany, have done years ago, we need to create a rigorous and clear
:40:07. > :40:12.technical route and is well understood by young people and
:40:13. > :40:16.employers as the academic route is. According to the papers, your
:40:17. > :40:22.spending ?500 million on this, not a great deal of money, to perform a
:40:23. > :40:27.huge revolution, transformation. Is it a big deal? As I know previous
:40:28. > :40:32.chancellors will have said to you, I am not going to set out the
:40:33. > :40:38.detail... They all tell me everything! I do acknowledge skills
:40:39. > :40:43.is one of the big issues that the Government needs to address. Are you
:40:44. > :40:46.concerned that, again, we are talking about briefing, economists,
:40:47. > :40:52.people think you have plenty of money to spend, higher than expected
:40:53. > :40:56.tax revenues, Philip Hammond has a fat lot of money in his wallet? It
:40:57. > :41:01.is not money in the wallet because we are borrowing a huge amount. We
:41:02. > :41:06.have over ?1.7 trillion worth of debt. We are spending over ?50
:41:07. > :41:11.billion a year just on paying the interest on our debt. More than we
:41:12. > :41:17.spend on defence and overseas aid together. This is not money in a
:41:18. > :41:21.pot. What is being speculated on is whether we might not have borrowed
:41:22. > :41:27.quite as much as was forecast. We will see the actual numbers on
:41:28. > :41:32.Wednesday. If your bank increases your credit card limit, I do not
:41:33. > :41:37.think you feel obliged to go out and spend every last penny immediately.
:41:38. > :41:42.It depends on your temperament. I regard my job as Chancellor is
:41:43. > :41:46.making sure the economy is resilient, we have got reserves in
:41:47. > :41:50.the tank, so as we embark on the journey we will be taking over the
:41:51. > :41:53.next couple of years, we are confident we have enough gas in the
:41:54. > :41:59.tent to see us through the journey. That seems a sensible approach --
:42:00. > :42:03.tank. Battening down the hatches, windfall money in the back pocket,
:42:04. > :42:08.should you need it, and in terms of the scale of the preparation fund,
:42:09. > :42:13.the Sunday Times is talking about ?60 billion, a lot of money, just in
:42:14. > :42:18.case things go wrong in the Brexit period. Is that right? I do not
:42:19. > :42:22.think it is about the Brexit period. Any Chancellor would be sensible to
:42:23. > :42:24.try to make sure he has enough flexibility to manage the economy on
:42:25. > :42:30.a day-to-day basis. As we go forward. What assumptions are you
:42:31. > :42:36.making about the divorce payment, as a result of Brexit? We hear huge
:42:37. > :42:39.figures from the continent, 60 billion, and here we have the House
:42:40. > :42:43.of Lords and your own legal adviser saying, we do not need to pay these
:42:44. > :42:49.people a penny? What is your feeling? My feeling is we are about
:42:50. > :42:53.to enter into a negotiation and very often you will have noticed that
:42:54. > :42:57.when you are about to start a negotiation with people, they set
:42:58. > :43:03.out very large demands and very stock positions ahead of that.
:43:04. > :43:07.Somewhere in the middle? -- Stark. It is a negotiating strategy in
:43:08. > :43:11.Brussels. The Prime Minister has been very clear. We are a nation
:43:12. > :43:15.that honours obligations and if we have any bills that need to be paid,
:43:16. > :43:20.we will deal with them in the proper way. What sort of area of money are
:43:21. > :43:24.you looking at in terms of preparing to pay bills to the EU? I will not
:43:25. > :43:31.speculate. Other than to say, we are a nation that abides by
:43:32. > :43:37.international obligations. We always have and always will. It is not just
:43:38. > :43:40.about obligations under law, it is a negotiation, as you said, and if we
:43:41. > :43:45.are going to get free access to the single market which we desperately
:43:46. > :43:48.want, we might have to pay for that, that would be part of the deal, we
:43:49. > :43:53.have the money, they have the market access. We will be leaving the
:43:54. > :43:57.European Union, we will be out of the single market and we do not
:43:58. > :44:00.expect to be making large payments in future, but we may choose to
:44:01. > :44:05.participate in some programmes, areas of activity with our European
:44:06. > :44:09.neighbours, and if we do so, we would expect to make a proper
:44:10. > :44:15.contribution to those activities. Slightly strange position, clearly
:44:16. > :44:19.the economy is doing better than a lot of people, including yourself,
:44:20. > :44:24.thought it would be doing after the referendum, and yet, across the
:44:25. > :44:28.public spending curve, people are screaming with pain at the moment.
:44:29. > :44:31.Can I ask you in particular about social care which has become a
:44:32. > :44:34.really big political problem, for the whole country, not just the
:44:35. > :44:40.Government? Will you do something for social care and do we need to
:44:41. > :44:45.think about it entirely differently? The economy is performing extremely
:44:46. > :44:49.well, much better than many people projected that it would and it is
:44:50. > :44:52.extremely good news, it gives the Prime Minister a very strong hand as
:44:53. > :44:57.she goes into the Brexit negotiations. But we recognise our
:44:58. > :45:03.public services are under pressure to deliver the efficiency agenda we
:45:04. > :45:08.have set out and I recognise in particular that social care and
:45:09. > :45:12.local authorities delivering social care are under some pressure. But it
:45:13. > :45:15.is not just about money. We should remember there are many authorities
:45:16. > :45:20.managing extremely well, many examples around the country of
:45:21. > :45:25.extremely good working between the NHS and social care authorities.
:45:26. > :45:30.Just 24 local authorities account for 50% of all the delayed
:45:31. > :45:36.discharges from the NHS. It is about good practice as well as budgets.
:45:37. > :45:42.Conservative councils are looking to put up council tax to meet the
:45:43. > :45:48.social care obligations so is this not something as a country we need
:45:49. > :45:52.to think again about how we fund? Because the country is getting
:45:53. > :45:57.older, the social care bill will rise, and sticking plaster solutions
:45:58. > :46:04.may not be enough. I think there is a case for taking a longer term view
:46:05. > :46:08.of how we fund service that is intrinsically linked to the
:46:09. > :46:11.demographic profile of the population and we know we are an
:46:12. > :46:16.ageing society said the demands of social care for the elderly will get
:46:17. > :46:21.greater in the future, and yes there is a very good case for taking a
:46:22. > :46:26.strategic look at how we deal with this problem over the longer term.
:46:27. > :46:30.Is that something you as a government can review? I think it's
:46:31. > :46:34.a separate issue from dealing with the short-term disparities occurring
:46:35. > :46:40.between areas that are coping very well at present and other areas
:46:41. > :46:45.which are struggling. Can I ask about progressive politics, and
:46:46. > :46:47.whether after this Budget has been delivered and the number crunchers
:46:48. > :46:52.have poured all over it, they will say yet again it is a regressive
:46:53. > :46:55.budget. You have seen the Resolution Foundation that shows people at the
:46:56. > :46:59.bottom of the heap that are just about managing will have a really
:47:00. > :47:04.tough time in terms of their incomes over the remaining years of this
:47:05. > :47:08.Parliament. Firstly I don't recognise these numbers. Various
:47:09. > :47:14.bodies publish various numbers which exclude certain things. What we look
:47:15. > :47:19.at is the effect overall of tax, spending, benefits, targeted public
:47:20. > :47:24.spending on different groups, and there are some huge... It has taken
:47:25. > :47:30.all that information into account, the Resolution Foundation. With
:47:31. > :47:37.respect, most don't take all these figures into account, for example
:47:38. > :47:41.the IMF doesn't include all areas of taxation, or all areas of government
:47:42. > :47:47.spending, but there are some very big steps about to happen as we go
:47:48. > :47:52.in to 2017/ 18. We have a further step of increase in the personal
:47:53. > :47:56.allowance which takes more people out of paying income tax, we have a
:47:57. > :47:58.big programme of investment in childcare. By the time this
:47:59. > :48:03.programme is rolled out the Government will be spending ?6
:48:04. > :48:09.billion per year on free and tax free childcare for families across
:48:10. > :48:12.Britain, that is a huge boost. The Resolution Foundation takes both of
:48:13. > :48:17.those things into account when it shows people at the bottom of the
:48:18. > :48:20.heap will get about 16% poorer during the course of this
:48:21. > :48:25.Government, isn't John McDonnell right to say there needs to be a
:48:26. > :48:29.national pay increase? With the greatest respect to John McDonnell
:48:30. > :48:33.we delivered the national living wage, and anybody who is on the
:48:34. > :48:39.national living wage over the last two years, by the time of the next
:48:40. > :48:44.increase, ?7 50 in April, will be receiving ?1400 per year if they are
:48:45. > :48:48.in full-time work more than they were burning two years ago so we
:48:49. > :48:52.have seen people at the bottom of the income distribution, the bottom
:48:53. > :48:58.fifth seeing the biggest increase in real wages in the last data that is
:48:59. > :49:02.available. The other thing you could do is reverse the cuts to universal
:49:03. > :49:06.credit. Iain Duncan Smith called for this and a lot of people think it is
:49:07. > :49:12.something that is not fair to people who are working very hard and they
:49:13. > :49:16.are yet being penalised by the Government quite hard. At the Autumn
:49:17. > :49:23.Statement you will remember we did reduce the taper rate in universal
:49:24. > :49:28.credit from 65% to 63%, and income boost for 3 million people on low
:49:29. > :49:32.income, but there was always this challenge, if you have a generous
:49:33. > :49:37.system of benefits for people as they move into work somehow you have
:49:38. > :49:41.to taper those benefits away and getting that right is always a
:49:42. > :49:45.challenge, but obviously it is something we will keep under review
:49:46. > :49:50.in the future. Same sort of question about the cuts to the disabled, the
:49:51. > :49:55.lack of increase for disability, a lot of people think it is
:49:56. > :50:00.particularly cruel, the ?3.7 billion shift. This isn't a shift at all,
:50:01. > :50:08.the Government was clear about the policy intention, a court has found
:50:09. > :50:12.the policy, the legislation lacking in clarity, and what the DWP
:50:13. > :50:16.Secretary of State has decided to do is legislate to be absolutely clear
:50:17. > :50:21.about the original intention of Parliament but nobody will lose any
:50:22. > :50:25.benefit here. There is nobody with a benefit who will lose it as a result
:50:26. > :50:29.of this, but this was a large amount of money which is part of the
:50:30. > :50:33.benefit reforms that we had already announced and we have said very
:50:34. > :50:36.clearly we have no plans for further benefit reforms during this
:50:37. > :50:40.Parliament. But in order to make that statement we do have to be
:50:41. > :50:44.clear that we have to deliver the benefit reforms that have been
:50:45. > :50:47.announced. You have talked a bit about Brexit, can I ask about
:50:48. > :50:53.something you said in Germany about what might happen if we don't get a
:50:54. > :50:56.deal, he talked about you want to remain in a recognisably European
:50:57. > :51:01.style economy with European style taxation, but if we are forced to
:51:02. > :51:05.take something different then we will become something different. We
:51:06. > :51:09.could be forced to change or economic model, the British people
:51:10. > :51:13.are not going to lie down and say too bad, we have been wounded. What
:51:14. > :51:18.is the alternative economic model you are talking about? I'm very
:51:19. > :51:22.clear that we want to do a deal with the European Union, we expect to do
:51:23. > :51:26.a deal with the European Union that will allow us to continue trading
:51:27. > :51:33.together and allow our economy to remain recognisably in the European
:51:34. > :51:36.mainstream. The point I was making is that if there is anybody in the
:51:37. > :51:40.European Union who thinks that if we don't do a deal with the European
:51:41. > :51:46.Union, if we don't continue to work closely together written will simply
:51:47. > :51:50.slink off as a wounded animal, that is not going to happen. The British
:51:51. > :51:54.people have a great fighting spirit and we will forge new trade deals
:51:55. > :51:57.around the world, we will build our business globally, we will go on
:51:58. > :52:02.from strength to strength and we will do whatever we need to do to
:52:03. > :52:06.make the British economy compared to to and make sure this country has a
:52:07. > :52:11.great and successful future. When you say we will do whatever we need
:52:12. > :52:17.to do, a lot of people read that as we will slash corporation tax, go to
:52:18. > :52:20.a Singaporean style of economy. People can read what they like into
:52:21. > :52:26.it, I'm not going to speculate on how the UK would respond to what I
:52:27. > :52:31.don't expect to be the outcome, but we are going into a negotiation and
:52:32. > :52:35.we expect to be able to achieve a comprehensive free trade deal with
:52:36. > :52:39.our European Union partners, but they should know that the
:52:40. > :52:43.alternative is not Britain slinking away into a corner. A lot of this is
:52:44. > :52:46.about the tone of the negotiation, don't you believe the Government
:52:47. > :52:50.would be wiser to accept what the Lords has done on the status of EU
:52:51. > :52:57.nationals and allow that to be on the face of the bill? Because that's
:52:58. > :53:00.the way you could get goodwill. We already have goodwill and we have
:53:01. > :53:06.been clear with our European partners that we are willing to
:53:07. > :53:12.settle this issue right up front in the negotiation. It isn't us that
:53:13. > :53:15.has refused to deal with this matter reciprocally at an early stage, it
:53:16. > :53:20.is other members of the European Union that didn't want to deal with
:53:21. > :53:25.it separately. We are very clear, we want a deal on citizens and we want
:53:26. > :53:31.a deal that is fair to EU citizens in the UK and British citizens in
:53:32. > :53:34.Europe. How worried are you that Northern Ireland will break away
:53:35. > :53:39.from the UK as a result of the elections and as a result of their
:53:40. > :53:45.enthusiasm for staying inside the single market, like Scotland? The
:53:46. > :53:48.union is extremely important to all of us but Northern Ireland in
:53:49. > :53:53.particular benefit hugely from the union of the United Kingdom.
:53:54. > :53:59.Northern Ireland has four times as much trade with the UK as it does
:54:00. > :54:01.with the Republic of Ireland so the union is vitally important
:54:02. > :54:07.economically, but it is much more than just an economic issue. This
:54:08. > :54:12.union has made us strong and successful over many years and the
:54:13. > :54:14.union of England, Scotland, Wales and Northern Ireland will go on
:54:15. > :54:20.driving that strength and success in the future. Channel 4 News have done
:54:21. > :54:23.sterling work in pursuing the Conservative Party about election
:54:24. > :54:28.irregularities, do you think you will face by-elections as a result
:54:29. > :54:32.of that? The party has acknowledged we made an administrative error in
:54:33. > :54:37.the way some of the returns were made, in fact we drew that era to
:54:38. > :54:41.the attention of the Electoral Commission and the due process has
:54:42. > :54:46.to be followed through and we will cooperate fully with the Electoral
:54:47. > :54:51.Commission. John McDonnell wants you to publish your tax return, will
:54:52. > :54:55.you? No, just for the record might tax affairs are regular and
:54:56. > :55:01.up-to-date but I think... David Cameron did it. This demonstration
:55:02. > :55:04.politics isn't helping create a better atmosphere in British
:55:05. > :55:09.politics and I know the Labour Party is now proposing a policy that
:55:10. > :55:14.anybody earning over ?1 million, which I am certainly not, will have
:55:15. > :55:20.to publish their tax returns, make them public. That is likely to drive
:55:21. > :55:23.away talent and investors that Britain needs to create the global
:55:24. > :55:25.future we are trying to build. Philip Hammond, thank you for
:55:26. > :55:27.talking to us. Later this morning,
:55:28. > :55:29.Andrew Neil will be talking to the Leader of the House
:55:30. > :55:32.of Commons, David Lidington, about when Theresa May will be able
:55:33. > :55:35.to trigger Brexit and examining a major report on Islamist
:55:36. > :55:37.terrorism in the UK. That's the Sunday Politics
:55:38. > :55:42.at 11 here on BBC One. For now, we leave you with the woman
:55:43. > :55:55.who has to her name more Grammy Alison Krauss celebrated
:55:56. > :55:58.for her musical collaborations with Robert Plant, and great
:55:59. > :56:00.bluegrass albums with From her new album, Windy City,
:56:01. > :56:04.this is that classic number, # It's knowing that your
:56:05. > :56:13.door is always open # That makes me tend
:56:14. > :56:21.to leave my sleeping bag # Rolled up and stashed
:56:22. > :56:28.behind your couch # And the ink stains that
:56:29. > :56:41.are dried upon some line # That keeps you ever
:56:42. > :56:55.gentle on my mind # It's not clinging
:56:56. > :56:57.to the rocks and ivy # Planted on their columns
:56:58. > :57:04.now that bind me # Because they thought
:57:05. > :57:13.we fit together walking # It's just knowing that the world
:57:14. > :57:17.will not be cursing # Or forgiving when I walk along
:57:18. > :57:22.some railroad track and find # That you're moving
:57:23. > :57:28.on the backroads # And for hours you're
:57:29. > :57:39.just gentle on my mind # Though the wheat fields
:57:40. > :57:41.and the clothes lines # And the junkyards
:57:42. > :57:48.and the highways come between us # And some other woman's
:57:49. > :57:52.cryin' to her mother # I still might run in silence tears
:57:53. > :58:04.of joy might stain my face # And the summer sun might
:58:05. > :58:12.burn me 'til I'm blind # By the rivers flowing
:58:13. > :58:25.gentle on my mind # You dip your cup of soup
:58:26. > :58:27.back from a gurglin' # Cracklin' caldron
:58:28. > :58:34.in some train yard # And your dirty hat pulled
:58:35. > :58:44.low across your face # Through cupped hands
:58:45. > :58:47.round the tin can # I pretend to hold
:58:48. > :58:54.you to my breast and find # That you're waiting
:58:55. > :58:57.from the backroads # Ever smilin' ever
:58:58. > :59:06.gentle on my mind