Browse content similar to 06/12/2012. Check below for episodes and series from the same categories and more!
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Tonight as winter arrives, This Week takes to the political slopes. | :00:17. | :00:21. | |
Chancellor George Osborne navigates a treacherous economic black run | :00:21. | :00:26. | |
and spls out just how bad things are looking. It is a hard road, but | :00:26. | :00:31. | |
we are getting there, and Britain is on the right track. The BBC's | :00:31. | :00:38. | |
Robert Peston steps out of the cold to enjoy a bit of apres ski. | :00:38. | :00:43. | |
There's a chill wind blowing through the economy and the | :00:43. | :00:46. | |
Chancellor didn't exactly open his wallet and buy us all a drink, | :00:46. | :00:51. | |
which is why the bill for this one Andrew is being passed back to you. | :00:51. | :00:56. | |
Cheers! As the snowy conditions reached the UK, is austerity | :00:56. | :01:01. | |
leading to a freeze in social mobility? Author Tony Parsons feels | :01:01. | :01:07. | |
chill. My cockles were warmed by the news that Kate and William's | :01:07. | :01:11. | |
baby will be the first British monarch with working class blood. | :01:11. | :01:19. | |
But are the Middleton as one-off? And with hoax callers using their | :01:19. | :01:25. | |
slalom skills to fool Kate's nurses, how easy is it to make it and fake | :01:25. | :01:29. | |
it? Cool comedy customer Miles Jupp slides into our studio. I've | :01:29. | :01:37. | |
blagged my way on to various things, including as part of the press Corp | :01:37. | :01:41. | |
on the England tour of India. But the most impressive thing I've | :01:41. | :01:48. | |
blagged my way on to is the This Week sofa. Wrap up warm, it's all | :01:48. | :01:58. | |
:01:58. | :02:02. | ||
Evenin' all. Welcome to This Week, the show that promises so much and | :02:02. | :02:04. | |
delivers so little, leaving gullible viewers feeling conned and | :02:04. | :02:11. | |
out of pocket. Think of us as the Nigerian email scam of BBC current | :02:11. | :02:15. | |
affairs, or the Autumn Statement. Of course, we're not alone in our | :02:15. | :02:20. | |
tendency to commit fraud. In fact, it's been a week of prank calls and | :02:20. | :02:23. | |
cruel hoaxes. Yet something's clearly wrong when an Australian DJ | :02:23. | :02:25. | |
can impersonate the Queen and sound more believable than a forecast | :02:25. | :02:31. | |
from the Office for Budget Responsibility. Although the OBR | :02:31. | :02:33. | |
has form when it comes to misleading impressions, dodgy | :02:33. | :02:35. | |
predictions and dubious soothsaying, as if the nation's economic | :02:35. | :02:44. | |
forecasts have been out-sourced to Doris Stokes. Oooohhhh, the voices | :02:44. | :02:51. | |
are strong tonight. I'm picking up "expansionary fiscal contraction". | :02:51. | :02:55. | |
No, no, that's fading. I'm now hearing "no growth"... "bigger | :02:55. | :02:59. | |
borrowing"... "missing the debt target"... "bye-bye Triple A". What | :02:59. | :03:07. | |
can it mean? Not that I'm bothered by AAA - I'm in the RAC! Boom-boom. | :03:07. | :03:10. | |
Anyway, with the UK's AAA rating now in doubt and a triple-dip | :03:10. | :03:12. | |
recession now likely, it looks like the era of "triple-down economics" | :03:13. | :03:21. | |
will soon be with us. Did you see what I did there? | :03:21. | :03:24. | |
Speaking of those whose credibility is shot to pieces, I'm joined on | :03:24. | :03:27. | |
the sofa tonight by two Westminster scatter cushions with the stuffing | :03:27. | :03:30. | |
knocked out. The off-trend and off- colour soft furnishings of late | :03:30. | :03:33. | |
night political chat. I speak of course of #jacqu.i.am Jacqui Smith, | :03:33. | :03:43. | |
:03:43. | :03:46. | ||
and #sadmanonatrain Michael "choo- choo" Portillo. Your moment of the | :03:46. | :03:49. | |
week. Hello Andrew. There was a meeting of the parliamentary | :03:49. | :03:55. | |
committee on banking standards and it featured Lord Lawson, Nigel | :03:55. | :04:04. | |
Lawson, Chancellor of the Exchequer in the 1980s, interviewing the | :04:04. | :04:10. | |
chairman of Halifax Bank of Scotland when it went down the due. | :04:10. | :04:15. | |
He had written a few letters say his bank was in brilliant condition. | :04:15. | :04:22. | |
Lord Lawson said if he believed that when he wrote it, he must have | :04:23. | :04:28. | |
been deluded. It reminded me of what a formidable force he is,ant | :04:29. | :04:35. | |
how all of this mess began. It was whole lot of greedy bank traders in | :04:35. | :04:45. | |
banks and managers supposed to have been minding them. Jacqui? | :04:45. | :04:48. | |
Starbucks have woken up and smelled the coffee today. I wonder whether | :04:49. | :04:58. | |
this is people power or whether it's the first manifestation of a | :04:58. | :05:03. | |
big corporate or because they are facing the risk of some sort of | :05:03. | :05:07. | |
demo and difficulty. It's a PR stunt. Well, but it's interesting | :05:07. | :05:13. | |
isn't it that a company like that has been forced into doing this? | :05:13. | :05:19. | |
This is why... I would like to make up a figure and pay my tax that way. | :05:19. | :05:25. | |
It is just a PR stunt to get them through. Will it come out of the PR | :05:25. | :05:30. | |
budget. But they obviously think it is important that they respond. | :05:30. | :05:34. | |
go to Starbucks and I get them to do my tax return. | :05:34. | :05:38. | |
Now, the Blue Nun screw tops have been cracking open up and down the | :05:38. | :05:46. | |
land, as Her Majesty's loyal plebs toast a future royal baby. -- wee | :05:46. | :05:49. | |
bairn. Boy or girl, Kate and Will's offspring will be the future | :05:49. | :05:52. | |
monarch and will undoubtedly lead a gilded life. But what about the | :05:52. | :05:56. | |
babies not born to rule? Can they expect even a fraction of the same | :05:56. | :05:59. | |
life chances? We've asked author and journalist Tony Parsons to give | :05:59. | :06:09. | |
:06:09. | :06:11. | ||
This week most of us rejoiced at the news of the new royal baby. Now, | :06:11. | :06:17. | |
take it from me, the worst thing about having a baby is that you're | :06:17. | :06:21. | |
never truly free again. And the best thing about having a baby is | :06:21. | :06:27. | |
that you never have a better reason to be alive. Shall we get them some | :06:27. | :06:32. | |
flowers? The best thing about a royal baby - they guarantee the | :06:32. | :06:36. | |
survival of the monarchy for another 100 years, ensuring we | :06:36. | :06:40. | |
don't have some greedy, grasping fly-by-night politician Lording it | :06:41. | :06:50. | |
over us as head of state. And the worst thing about a royal baby? You | :06:50. | :06:56. | |
get all these pundits associating significance to the royal might | :06:56. | :07:01. | |
that don't exist. I wonder if there is anything fit for a King or a | :07:01. | :07:11. | |
Queen. We're told that Kate and William's baby will be our first | :07:11. | :07:14. | |
classless sovereign. And nothing could be further from the truth. | :07:14. | :07:19. | |
Yes Kate comes from humble working stock - miners and car penters. | :07:19. | :07:24. | |
Even a generation ago kit's mother was serving tea or coffee as a | :07:24. | :07:28. | |
flight attendant while legions of flunkies were checking the | :07:28. | :07:38. | |
:07:38. | :07:41. | ||
temperature of Prince Charles' soft-boiled eggs. | :07:41. | :07:45. | |
The Middleton family are is gold medal winners of social mobility, | :07:45. | :07:49. | |
and good luck to them, but the Middletons are the exception that | :07:49. | :07:54. | |
proved the rule. Kate and William's baby will be born into a country | :07:54. | :07:58. | |
where it has never been more difficult to get ahead. A land | :07:59. | :08:08. | |
:08:09. | :08:10. | ||
where social mobility is not poorly or dying, but dead. Kate and | :08:10. | :08:14. | |
William's baby will be born into a land that has heavy been more class | :08:14. | :08:19. | |
ridden in my lifetime. A land where the gap between the have not and | :08:20. | :08:27. | |
the have lots is big and getting bigger. Applications for university | :08:27. | :08:33. | |
are down. Soup kitchens are sprouting up everywhere. | :08:33. | :08:37. | |
Homelessness is becoming an epidemic. Even the modest | :08:37. | :08:42. | |
aspirations of the recent past, a higher education for your children, | :08:42. | :08:46. | |
buying your first home, starting a family, are starting to seem like | :08:47. | :08:56. | |
impossible dreams. But this baby will be born into a | :08:56. | :09:02. | |
realm where the people are divided by wealth, by privilege and, above | :09:02. | :09:08. | |
all, by opportunity. Our first classless sovereign? I'll believe | :09:08. | :09:16. | |
that one when Kate and William send their kid to a comprehensive. | :09:16. | :09:21. | |
Red, white and blue always looks good. | :09:21. | :09:25. | |
Tony Parsons from the Flowerstalk in Hampstead to our own little | :09:25. | :09:30. | |
flower shop in Westminster. Tony, welcome. Thank you. You say social | :09:30. | :09:33. | |
mobility isn't dying or feeling rather poorly but you are saying it | :09:33. | :09:39. | |
is dead. A bit of an exaggeration? I don't think so. It is remarkable | :09:39. | :09:44. | |
we've got this baby coming along that has the blood of miners and | :09:44. | :09:48. | |
core penters and flight attendants and does come from workinging class | :09:48. | :09:55. | |
stock. A couple of generations back. But they've completely moved from | :09:55. | :09:59. | |
digging coal in Cumbria to the Crown in a few generations, with | :09:59. | :10:06. | |
the things that always are the engine of social moct - hard work, | :10:06. | :10:12. | |
education, working class decency and charm, niceness, beauty, love. | :10:12. | :10:16. | |
But I think that that baby is the exception rather than the rule. I | :10:16. | :10:20. | |
don't think lit ever happen again. When I was growing up there were | :10:20. | :10:24. | |
five British Prime Ministers in a row that were educated by the state. | :10:24. | :10:33. | |
I don't think that, from 1946 to 1997. I don't think that can happen | :10:33. | :10:37. | |
again. If it is broken down, if it is as bad as you say, what or who | :10:37. | :10:42. | |
is to blame? I think the politicians that kicked away | :10:42. | :10:46. | |
ladders for bright working class kids should take a lot of the blame. | :10:46. | :10:52. | |
The ones that did it in the 1960s and the ones that continue to do it | :10:52. | :10:57. | |
today. Grammar schools are despised from David Cameron to Ed Miliband. | :10:57. | :11:04. | |
They all hate the idea of them. There'll always be people that slip | :11:04. | :11:09. | |
through the net, people that somehow make it, but education is | :11:09. | :11:13. | |
the great driving force of social mobility. It is not just the | :11:14. | :11:17. | |
working class but the middle class too. It is people from ordinary | :11:18. | :11:24. | |
homes. When that's taken away, you will always, we will forever be | :11:24. | :11:30. | |
ruled by unexceptional men who had exceptional educations. Is social | :11:30. | :11:35. | |
mobility in decline? Evidently it is and I entirely agree with Tony's | :11:35. | :11:38. | |
point about education. I think social engineering in education, | :11:38. | :11:42. | |
the destruction of the grammar schools a really important part of | :11:42. | :11:46. | |
this. Another misguided social policy, the expansion of welfare, | :11:46. | :11:51. | |
which has trapped many people into dependency and destroyed what Tony | :11:52. | :11:54. | |
just described as working class decency. Now it is possible for | :11:55. | :12:01. | |
people to get on the welfare early, to live off welfare and to create | :12:01. | :12:05. | |
subsequent generations of people who live on welfare. I don't | :12:05. | :12:10. | |
entirely agree that we are a more class-divided society. There is an | :12:10. | :12:13. | |
extraordinary expansion of the bourgeoisie. If you see the habits | :12:13. | :12:18. | |
that people adopt in the has been that its people aspire to, it is | :12:18. | :12:23. | |
largely now around food and wine bars and the kind of middle class | :12:23. | :12:28. | |
set of values and enjoyment. On the other hand, what used to be working | :12:28. | :12:33. | |
class sports, they've become largely bourgeoisiified. Even rock | :12:33. | :12:36. | |
concerts have become bourgeoisiified. The ticket prices | :12:36. | :12:41. | |
have gone through the roof. I think the middle class is expanding and | :12:41. | :12:44. | |
expanding but I do believe people at the bottom of society, it is | :12:44. | :12:50. | |
nigh on impossible to get to the top. Do you think it is in decline? | :12:50. | :12:54. | |
I think there are serious problems and I think education is the answer, | :12:54. | :12:57. | |
although I disagree with Michael and Tony about grammar schools. I | :12:57. | :13:01. | |
don't think we can afford to have a society nowadays which only lifts | :13:01. | :13:06. | |
up, if it lifts up at all, 20% of people. Everybody through a | :13:06. | :13:11. | |
comprehensive system has to are the opportunity to get on. 20% would be | :13:11. | :13:17. | |
better than 0, which is the public schools. I do note this week a | :13:17. | :13:24. | |
little spat between Andrew Adonis and the new regulator of Fair | :13:24. | :13:29. | |
Access to Universities. It was reported that he said it doesn't | :13:29. | :13:33. | |
matter if kids in comprehensive schools are encouraged to go to | :13:33. | :13:37. | |
Oxford or Cambridge. In my view there is not enough aspiration for | :13:37. | :13:40. | |
enough young people. Having an expectation that large numbers of | :13:40. | :13:45. | |
people will go to the very best universities is at the very least | :13:45. | :13:49. | |
what we need to do in our schools. One of the problems, I think, one | :13:49. | :13:53. | |
of the big political issues at the moment for Labour is not to back | :13:53. | :13:58. | |
off the reforms to education that we started. So not to back off the | :13:58. | :14:02. | |
academies programme, which we put in place. Possibly even to see some | :14:02. | :14:05. | |
of the benefits of free schools, where those exist. And to support | :14:06. | :14:10. | |
those, but not to move away from the idea that education has to be a | :14:10. | :14:20. | |
:14:20. | :14:21. | ||
There is an implication there that because only 20% went to grammar | :14:21. | :14:25. | |
schools, it was better that 0% should get that education. That is | :14:25. | :14:29. | |
exactly where we have ended up. It is about 0% of people who do not go | :14:29. | :14:37. | |
to public school who can make it to the top -- 0%, all people who go to | :14:37. | :14:43. | |
public school. That is just not true. You cannot simply have this | :14:44. | :14:47. | |
very artificial, at age 11, division between those who will be | :14:47. | :14:53. | |
academic and those who will not. understand your argument, and we | :14:53. | :15:00. | |
have the benefit of the policy. It is its bark macro -- it is exactly | :15:00. | :15:03. | |
what Tony was saying. The gap between rich and poor has got wider | :15:03. | :15:10. | |
as well. Cognitive skills, in an information economy become much | :15:10. | :15:13. | |
more important, so the well-paid skilled, blue-collar workers in the | :15:13. | :15:18. | |
past. For there to be social mobility, don't we all need to | :15:18. | :15:22. | |
start at least a little bit closer together than we are at the moment? | :15:22. | :15:29. | |
We do. It is not just about the education of white working-class | :15:29. | :15:34. | |
kids in grammar schools. My mother had six brothers, and most of them | :15:35. | :15:38. | |
worked in the print. They served apprenticeships, which have died | :15:38. | :15:42. | |
out as well as grammar schools. It is giving people a body of skills. | :15:42. | :15:49. | |
I understand what Jackie is saying, that at 11 you're making tough, | :15:50. | :15:54. | |
unfair choices. In some ways, it is unfair. I lost a lot of my friends, | :15:54. | :15:58. | |
my best friend, when I went to a grammar school and they went to a | :15:58. | :16:03. | |
secondary modern. But life is tough and unfair and it makes choices all | :16:03. | :16:08. | |
the time. It would not necessarily have to be 11. You could not call | :16:08. | :16:12. | |
them grammar schools anyway. If they ever came back, we have to | :16:12. | :16:17. | |
call them something else. Part of the problem with social mobility is | :16:17. | :16:20. | |
that the tough choices are made before you get to 11, before you | :16:20. | :16:23. | |
get to school, in terms of whether people come from families where | :16:23. | :16:27. | |
they have been supported to be able to read and be ready to go to | :16:27. | :16:33. | |
school. That is why I think this Government is right to be expanding | :16:33. | :16:36. | |
education for two year-olds, but I think they are wrong to limit the | :16:36. | :16:40. | |
availability of Sure Start centres to people, because that makes the | :16:40. | :16:45. | |
difference at the earliest stage. The Miliband brothers went to a | :16:45. | :16:49. | |
comprehensive. I have been to that school and a surprise that Ed | :16:49. | :16:52. | |
Miliband made it through his first play time because it is quite a | :16:52. | :16:56. | |
tough school. And a very mixed school. But they come from a home | :16:57. | :17:00. | |
it was full of books, and a home where ideas were discussed at the | :17:00. | :17:07. | |
dinner table. So they had a rich cultural life. There is no denying | :17:07. | :17:10. | |
that they are comprehensive Boys, but they came from an exceptional | :17:10. | :17:14. | |
home, with an exceptional father, where there was a level of debate | :17:14. | :17:21. | |
which you would not get in many homes. You know the middle classes | :17:21. | :17:23. | |
invented some grammar schools by making little properties it owns, | :17:23. | :17:28. | |
where property prices are very high, so their comprehensive is | :17:28. | :17:31. | |
outstanding. I would not be too surprised if this royal baby goes | :17:31. | :17:38. | |
to a comprehensive like that. have to say, I think public schools | :17:38. | :17:43. | |
are fantastic schools. But what is interesting about that golden | :17:43. | :17:48. | |
period of meritocracy, five Prime Ministers in a row from Wilson to | :17:48. | :17:53. | |
to John Major, is that they were competing, when Eton and | :17:53. | :17:56. | |
Westminster and St Paul's were still great schools. They were | :17:56. | :18:01. | |
fantastic schools them, but these quirky, strange characters, John | :18:01. | :18:05. | |
Major, Jim Callaghan, Margaret Thatcher and Harold Wilson coming | :18:05. | :18:10. | |
from the back of beyond, were competing with them. So if | :18:10. | :18:16. | |
politicians broke it, can they put it together again? Yes, they can. | :18:16. | :18:20. | |
But it is not going to happen. It is just one of those things. They | :18:21. | :18:26. | |
are all against it. Major parties, for some reason. I think you are | :18:26. | :18:30. | |
wrong about that. Out of the free schools, we are going to find such | :18:30. | :18:34. | |
diversity of schooling emerging that we will find something like | :18:34. | :18:39. | |
the old grammar schools coming through. If the crackdown on | :18:39. | :18:43. | |
welfare continues in the direction it is continuing, you are going to | :18:43. | :18:48. | |
put the family back at the centre of society, rather than having the | :18:48. | :18:53. | |
state as the father of so many children. An optimistic note. Let's | :18:53. | :18:58. | |
leave it there. Thank you very much. Now, it's late, and our viewing | :18:58. | :19:00. | |
figures are lower than a Frenchman's sperm count. Down a | :19:01. | :19:04. | |
third in recent years, apparently. The sperm count, not the viewing | :19:04. | :19:09. | |
figures. But for those of you still up, you're in luck. Because waiting | :19:09. | :19:11. | |
in the, wings fresh from the National Theatre tonight, actor, | :19:12. | :19:19. | |
comedian, writer, Miles Jupp, here to talk about the art of faking it. | :19:19. | :19:23. | |
And you too can pretend to be somebody you're not, as you do most | :19:23. | :19:29. | |
weeks, on the Twitter, the Fleecebook, and the interweb. | :19:29. | :19:31. | |
Now, we love big days, when everyone's focused on exciting | :19:32. | :19:37. | |
Westminster occasions. No, not the visit to Downing Street of gangsta | :19:37. | :19:40. | |
rapper Dr Dre, I kid ye not, but the Autumn Statement by financial | :19:40. | :19:44. | |
rapper Boy George. Yesterday, he stood at the despatch box and | :19:44. | :19:47. | |
claimed he was on course, despite being, well, totally off course, | :19:47. | :19:54. | |
not to say lost in a sea of red ink. Since then, there's been a lot of | :19:55. | :19:58. | |
wondering about what it all means. So we turned to the best in the | :19:58. | :20:01. | |
business, the BBC's business editor, Robert Peston. He's been taking a | :20:02. | :20:11. | |
:20:12. | :20:28. | ||
well-deserved breather with his Another huge week for this | :20:28. | :20:32. | |
Government. George Osborne had to admit he is going to miss one of | :20:32. | :20:36. | |
his important debt targets, and tried to convince us in his Autumn | :20:36. | :20:39. | |
Statement that he has a plan to get some momentum behind the economy. | :20:39. | :20:44. | |
It has been a pretty gruelling week for me because I have to try and | :20:44. | :20:48. | |
make sense of it all. Thank goodness, after these exhausting | :20:48. | :20:56. | |
days, I can come to my club. Only the best are Loudon. But there is | :20:56. | :20:59. | |
obviously nothing AAA about this place, because if there was, they | :20:59. | :21:03. | |
would not let you in. When the Chancellor goes on and on about AAA | :21:03. | :21:09. | |
in relation to debt, what does he mean? Well, it means investors have | :21:09. | :21:13. | |
confidence, confidence that the Government can repay its debts. | :21:13. | :21:16. | |
That allows the Government to borrow very cheaply, so maintaining | :21:16. | :21:22. | |
that AAA badge has been desperately important to George Osborne. In | :21:22. | :21:28. | |
fact, trying to retain that triple- A rating underpinned pretty much | :21:28. | :21:32. | |
everything he said in the House of Commons. The tougher economic | :21:32. | :21:37. | |
conditions mean that while our deficit is forced -- forecast to go | :21:37. | :21:45. | |
on falling, instead of taking three years, it is going to take four. | :21:45. | :21:49. | |
Confronted with this news, some say we should abandon our deficit plan | :21:49. | :21:53. | |
and try to borrow more. We are not taking that road to ruin. It may | :21:53. | :21:57. | |
not be the road to ruin but it certainly looks like a pretty hard | :21:57. | :22:00. | |
road. The Chancellor says that austerity, tax increases and | :22:00. | :22:10. | |
spending cuts, now has to go on all the way to 2018. So I am always | :22:10. | :22:13. | |
hearing the Chancellor going on about how we are all in it together. | :22:13. | :22:17. | |
Is there anything to that? Well, the pain is not being imposed on | :22:17. | :22:22. | |
everybody equally by the Chancellor. Actually, the super rich are pretty | :22:22. | :22:26. | |
much left off. But if you are a doctor or a civil servant, saving | :22:26. | :22:30. | |
for a pension, you are going to be worse off. And if you are | :22:30. | :22:34. | |
unemployed or on very low earnings, you will be worse off. What is | :22:34. | :22:38. | |
interesting to me is that the people who have probably done all | :22:38. | :22:42. | |
right are those right in the middle, people who you might see as swing | :22:42. | :22:47. | |
voters, desperately important for the next election. There are no | :22:47. | :22:52. | |
quick fixes to these problems. But they want to know that we are | :22:52. | :22:56. | |
making progress. And the message from today's Autumn Statement is | :22:56. | :23:01. | |
that we are making progress. It is a hard road, but we're getting | :23:01. | :23:09. | |
there. With the Government missing its numbers, it looked like an open | :23:09. | :23:13. | |
goal for Labour, but they do not have -- they do not seem to have | :23:13. | :23:17. | |
scored. What went wrong? There was some fancy footwork from the | :23:17. | :23:22. | |
Chancellor which caught the shadow jobs were, Ed Balls, off guard. He | :23:22. | :23:27. | |
suffers from a stutter and what came out was not what he wanted. | :23:27. | :23:31. | |
The House of Commons showed no sympathy. The national deficit is | :23:31. | :23:41. | |
:23:41. | :23:42. | ||
not rising. It is rising, not falling. I will say it again. Our | :23:43. | :23:47. | |
economy is contracting this year. Government borrowing and the | :23:47. | :23:51. | |
deficit is revised up this year, next year and every year, and the | :23:51. | :23:56. | |
national debt is rising. It is not falling. This is obviously going to | :23:56. | :24:01. | |
be a long game. How will Labour try to fight back? Ed Balls will | :24:01. | :24:05. | |
continue to point out that George Osborne is failing his own test of | :24:05. | :24:08. | |
credibility, in that the national debt is going up and up as far as | :24:08. | :24:12. | |
the eye can see. He will say it is unfair that so much of the squeeze | :24:12. | :24:18. | |
is falling on the working poor. But the Chancellor has set a trap for | :24:18. | :24:21. | |
Labour. Cuts in unemployment benefits are popular with many | :24:21. | :24:27. | |
voters. How will Labour vote on that? Cutting taxes for the rich, | :24:27. | :24:32. | |
while struggling families and pensioners pay the price, unfair, | :24:32. | :24:41. | |
incompetent and completely out of touch. Many would say Labour has | :24:41. | :24:45. | |
not launched a significant economic policy for some time. Its strategy | :24:45. | :24:48. | |
appears to be to sit back on the assumption that it will fall apart | :24:48. | :24:52. | |
and there are certainly plenty of economists who fear that the UK may | :24:52. | :24:57. | |
lurch back into recession. If that were to happen, there would | :24:57. | :25:01. | |
certainly be tensions, new tensions in the coalition. A senior Lib Dem | :25:01. | :25:05. | |
minister recently said to me that if there were a so-called triple | :25:05. | :25:09. | |
dip, he would start to put pressure on George Osborne for a change of | :25:09. | :25:12. | |
strategy, which is why the Chancellor may have taken something | :25:12. | :25:20. | |
of a risk in so publicly pooh- poohing the Lib Dems cherished | :25:20. | :25:26. | |
mansion tax. In my view, it would be intrusive, expensive to levy, | :25:26. | :25:29. | |
would raise little and be a temptation for future Chancellors | :25:29. | :25:33. | |
to bring ever more homes into its net. So we are not having a new | :25:33. | :25:43. | |
:25:43. | :25:43. | ||
homes tax. There are huge pressures of -- on the British economy. If | :25:43. | :25:48. | |
the recovery fails to materialise in the way George Osborne hopes and | :25:48. | :25:55. | |
expects, the UK would then lose that glistening AAA credit rating, | :25:55. | :25:58. | |
which would be a huge political embarrassment for the Chancellor | :25:58. | :26:05. | |
and also for the Prime Minister. I say, old chap, I think it is time | :26:05. | :26:14. | |
you left. My goodness, they let anybody in these days. | :26:14. | :26:18. | |
That was Robert Peston, taking five at the Sir Richard Steele Pub in | :26:18. | :26:21. | |
Belsize Park. And the music, of course, our little homage to the | :26:21. | :26:31. | |
:26:31. | :26:37. | ||
wonderful jazz pianist and composer Dave Brubeck, who died this week. | :26:37. | :26:45. | |
Yes, I was a fan of Dave Brubeck. None of that was on the autocue. | :26:45. | :26:50. | |
Are we going to lose the triple-A rating? It is possible. It is more | :26:50. | :26:54. | |
or less what the whole government strategy has been about. It is more | :26:54. | :27:00. | |
or less why the coalition came into being in the first place. But not | :27:00. | :27:03. | |
exactly the triple-A rating. Precisely, it is to keep the | :27:03. | :27:06. | |
interest on what the Government has to pay on its borrowing as low as | :27:06. | :27:11. | |
possible, that is to say at about 2%. It is possible that even if we | :27:12. | :27:15. | |
lost the triple-A rating we would still be paying interest at 2%, in | :27:15. | :27:18. | |
which case none of us would notice any difference and I don't think | :27:18. | :27:22. | |
the Americans would. Although there were warnings that we might lose | :27:22. | :27:25. | |
the triple-A rating, the markets this morning were pretty positive | :27:25. | :27:29. | |
for the Government. The triple-A rating is a kind of proxy, but what | :27:29. | :27:32. | |
really matters is the rate of interest that we pay. If the rate | :27:32. | :27:38. | |
of interest remains at 2%, we are fine, in a sustainable position. If | :27:38. | :27:44. | |
it goes up to where Spain and Italy are, 5%, that is catastrophic. The | :27:44. | :27:48. | |
coalition would say this is an argument in its favour. It is | :27:48. | :27:50. | |
precisely because we are on this hair-trigger, that interest rates | :27:50. | :27:53. | |
could go zooming up, that if we were to do what Ed Balls says, | :27:53. | :27:57. | |
borrow more now, we would simply lurch into that position of having | :27:57. | :28:02. | |
these much higher interest rates, and that would be catastrophic. So | :28:02. | :28:05. | |
any little stimulus that you might provide to the economy by borrowing | :28:05. | :28:09. | |
more and spending more would be absolutely washed away with | :28:09. | :28:12. | |
interest rates went up in that way. The comparison that you have to | :28:12. | :28:16. | |
make is not the economy we have compared with what we would like, | :28:16. | :28:20. | |
or compared with what it was, but the economy we have compared with | :28:20. | :28:26. | |
the economy that the Spanish and Italians and Greeks have. If we | :28:26. | :28:31. | |
were to lose the triple-A rating, it would be an open goal for Labour. | :28:31. | :28:36. | |
Put aside the economics. The politics of it are huge. But there | :28:36. | :28:43. | |
may be a trap for Labour, too. If we lose the triple-A rating, it is | :28:43. | :28:45. | |
probably because the Chancellor is failing to meet his borrowing | :28:45. | :28:49. | |
targets and failing to meet his debt targets, so for Labour to | :28:49. | :28:59. | |
argue that borrowing should be even On the AAA rating, I agree. It is | :28:59. | :29:01. | |
more significant for the Chancellor's reputation than it is | :29:01. | :29:07. | |
for the real economy in the UK, not least because comparatively there | :29:07. | :29:12. | |
are now in terms of of where investment will go less options as | :29:12. | :29:17. | |
attractive for the UK, even if we were to lose our AAA rating. I | :29:17. | :29:21. | |
agree with you that there is an issue for Labour in the way in | :29:21. | :29:25. | |
which they respond to the Autumn Statement, another Michael, of | :29:25. | :29:31. | |
course, as Ed Balls rightly pointed out, as the OBR demonstrated, a | :29:31. | :29:35. | |
failure to bring growth into the economy through the austerity | :29:35. | :29:41. | |
programme is the reason why, if we take out the receipts from the 4G | :29:41. | :29:45. | |
sale, why we will nevertheless be borrowing more this year than we | :29:45. | :29:50. | |
would have borrowed last year. is true, if you take the 4G seams | :29:50. | :29:58. | |
out and strip away all the one-off items he rather complicatedly put | :29:58. | :30:02. | |
out yesterday, we borrow more this year than last year. The problem is | :30:02. | :30:06. | |
that austerity isn't working and nor are we all in this together. | :30:06. | :30:09. | |
Because the Chancellor performed rather well yesterday, he had a | :30:09. | :30:16. | |
weak hand and he played it well, and we'll come on in a minute to Ed | :30:16. | :30:21. | |
Balls, who stumbled a bit in the beginning and found it hard to | :30:21. | :30:27. | |
recover. The Chancellor got not a bad press today. When you peal | :30:27. | :30:34. | |
about the figures, he told us he is going to borrow over �250 billion | :30:34. | :30:42. | |
over five years but now it is over �500. -- over �5 00 billion. Growth | :30:42. | :30:48. | |
is now going to be negative this year, barely 1% next year. | :30:48. | :30:51. | |
coalition made a miscalculation. They thought that by announcing | :30:51. | :30:56. | |
there was going to be a Government for five years and announcing there | :30:56. | :31:01. | |
was going to to be an austerity programme there would be such a | :31:01. | :31:06. | |
boost to confidence that growth would return to the economy, and | :31:06. | :31:10. | |
tax revenues would come in and everything would be put right. That | :31:10. | :31:13. | |
was a miscalculation. When Jacqui and others say the policy is not | :31:13. | :31:19. | |
working, it is true that the policy is not creating growth, but Britain | :31:19. | :31:23. | |
has been able to go on borrowing money at 2%, a privilege not | :31:23. | :31:27. | |
available to other countries to Europe. But had there been growth | :31:27. | :31:31. | |
there wouldn't be such a requirement to borrow. Of course, | :31:31. | :31:35. | |
but your little stimulus, your borrowing more, would have hurried | :31:35. | :31:39. | |
on the day at which we would have to pay more interest on the money | :31:39. | :31:44. | |
we borrowed. So the success of the policy has been that we were not | :31:44. | :31:51. | |
Spain or Italy. Before I come on to that... Nor are we Germany or the | :31:51. | :31:56. | |
US on political growth. It is sif to say it is not very good but it | :31:56. | :32:00. | |
could be much worse. That's what the Government is reduced to isn't | :32:00. | :32:05. | |
it? Absolutely, but there will be an option at the next election and | :32:05. | :32:09. | |
that option will be you do wants it very bad or very much worse? That | :32:09. | :32:12. | |
will be the choice that will be put to the British people. The eurozone | :32:12. | :32:18. | |
as a whole is now in recession. The Greek and Spanish economies are in | :32:18. | :32:21. | |
deep decline. The French economy's in recession, the Italian economy | :32:21. | :32:26. | |
is in recession. When you look at the growth figures, which may even | :32:26. | :32:31. | |
be too optimistic for Britain of 1% next year, barely 2% the year after | :32:31. | :32:35. | |
that. I'm beginning to wonder whether you are on the left or the | :32:35. | :32:40. | |
right, the new normal we face is stagnation for the foreseeable | :32:40. | :32:44. | |
future. There is a totally difficulty economic context, I | :32:44. | :32:50. | |
think that's true. From what we grew up with. For the whole of the | :32:50. | :32:54. | |
time that I was in Government, the issues were about how you spent the | :32:54. | :32:58. | |
money with ana was there to be spent. This is a totally different | :32:59. | :33:01. | |
political and economic fiscal environment in which to operate. | :33:01. | :33:05. | |
And to be honest, people are struggling I think in both the | :33:05. | :33:09. | |
major parties with what's the approach to that? The Tory approach | :33:09. | :33:12. | |
was to say we've inherited a mess, we believe austerity is the answer | :33:12. | :33:16. | |
and we are all going be in it together, in taking this tough | :33:16. | :33:20. | |
austerity medicine that. Hasn't worked. The Labour approach to a | :33:20. | :33:24. | |
certain extent Michael is right has been to say that we wouldn't have | :33:24. | :33:28. | |
got into this mess in the first place, as we wouldn't have cut so | :33:28. | :33:33. | |
far and so fast. But the problem is we are now in this situation and | :33:33. | :33:37. | |
for Labour win the next election they have to have a credible story | :33:37. | :33:40. | |
about how the deaf sift will be reduced. How we will manage, the | :33:40. | :33:45. | |
Government, at a time when spending more isn't going to be the answer. | :33:45. | :33:49. | |
I'm sorry to keep going on about European comparisons but people in | :33:49. | :33:55. | |
this country, unless they travel abroad or study abroad don't get | :33:55. | :33:59. | |
the full measure of how desperate the situation is elsewhere and how | :33:59. | :34:04. | |
desperate it could be here. I'm not guaranteeing you with these | :34:04. | :34:09. | |
policies we won't end up in the same place. No. And he isn't. Where | :34:10. | :34:16. | |
we are seeing employment of 8%, other countries are seeing 25%. | :34:16. | :34:21. | |
Tory Party broadcast will be full of rights and demonstration rights | :34:21. | :34:26. | |
footage of Spain and Greece and maybe Italy. To give credit to the | :34:26. | :34:32. | |
last Government, where we in the euro we wouldn't be able to devalue | :34:32. | :34:42. | |
:34:42. | :34:42. | ||
our currency or print money. bank that can print money like | :34:42. | :34:46. | |
America, like here, have lo interest rates. | :34:46. | :34:50. | |
Ed Balls was slightly thrown I think was we all thought the | :34:50. | :34:55. | |
deficit would be rising this week. But a bit of jiggery-pokery threw | :34:55. | :35:01. | |
him. Do you feel sorry for him? feel sorry for him. He a good line | :35:01. | :35:05. | |
about a response to the Autumn Statement is like making a wedding | :35:05. | :35:11. | |
speech when you don't talk about the -- when you don't know the | :35:11. | :35:16. | |
broid or the groom. It is not as if people will say the trouble with Ed | :35:16. | :35:22. | |
is he can't perform at the dispatch box. He is a robust performer and | :35:22. | :35:27. | |
if this is lightly less than his usual performance, well... But he's | :35:27. | :35:34. | |
so rude to everybody in the House. The House of Commons is like these | :35:34. | :35:38. | |
Medieval ordeals where they used to dip witches in water and see if | :35:38. | :35:42. | |
they drowned or not. You are thrown into this place and you are you | :35:42. | :35:46. | |
either sink or swim. Your survival depends on all sorts of things. | :35:47. | :35:50. | |
Whether you have a sore throat that day, whether you've got a cold, | :35:50. | :35:55. | |
whether you've got out of the right side of bed. Osborne is like Gordon | :35:55. | :36:00. | |
Brown, he is very political in that he's thrown to Labour this 1% rise | :36:00. | :36:04. | |
in benefits. I couldn't get any Labour politician in the shadow | :36:04. | :36:09. | |
Government to tell me how they are going to vote for it. We'll keep an | :36:09. | :36:12. | |
eye on it. Now, you've probably not twigged, | :36:12. | :36:15. | |
but we're all a bunch of frauds on this sofa, playing at making a TV | :36:16. | :36:18. | |
show. We hide it well don't we? Michael's accidentally stumbled | :36:18. | :36:21. | |
onto the set on his way home from a guest appearance on Gok Wan's | :36:22. | :36:25. | |
Fashion Fix. Jacqui's trying her best as the great pretender to the | :36:25. | :36:28. | |
Abbott throne, though we'll never forget you Diane, or your Annabel's | :36:28. | :36:33. | |
bar bill. And I'm doing my most convincing impression of a man who | :36:33. | :36:40. | |
knows how to read an autocue, read an autocue, read an autocue. So | :36:40. | :36:43. | |
this week we're putting our best feet forward and putting "faking | :36:43. | :36:53. | |
:36:53. | :36:59. | ||
Hospital staff looking after Kate were left red faced after two | :36:59. | :37:05. | |
Aussie radio DJs pretended to be the Queen and Prince Charles. The | :37:05. | :37:10. | |
likeness was uncanny. Hello, there can I please speak to | :37:10. | :37:16. | |
Kate please, my granddaughter. hold on ma'am. Thank you. | :37:16. | :37:23. | |
Are they putting us through? Yes! Starbucks' impression of a hippy | :37:23. | :37:27. | |
dipy coffee chain doesn't look so believable, now the mask has | :37:27. | :37:31. | |
slipped and its creative approach to tax revealed a more corporate | :37:31. | :37:37. | |
face. While rumours that Voeck editor Anna Wintour might be the | :37:38. | :37:45. | |
next American ambassador to the UK proves that even if you lack skills, | :37:45. | :37:50. | |
self-confidence can open doors. And at least "Freddie" Flintoff didn't | :37:50. | :37:56. | |
fall flat on his face after leaving cricket and becoming a heavyweight | :37:56. | :38:01. | |
contender, slengs his crit nicks the process. | :38:01. | :38:06. | |
-- silencing his critics in the process. Good to see you. Is it | :38:06. | :38:14. | |
true you blagged your way on to a cricket tour of India? It was six | :38:14. | :38:22. | |
years ago. I couldn't blag my way into the team, obviously, in those | :38:22. | :38:26. | |
days it had selection policy, but the nearest best thing would be to | :38:26. | :38:31. | |
be a journalist. I rang the right people and said I'm the BBC | :38:31. | :38:35. | |
Scotland crickets correspondent, can you sort out my travel and | :38:35. | :38:40. | |
accommodation and stuff. People said yes, so I went out there with | :38:40. | :38:44. | |
the press Corp and tried to be like them. Were you nervous? I was. I | :38:44. | :38:48. | |
imagined the hard thing would be convincing people, would be getting | :38:48. | :38:54. | |
in there. To me the grey area was getting into the press box and voog | :38:54. | :39:00. | |
it as a fortress, but that Paz -- viewing it as a fortress, but that | :39:00. | :39:05. | |
was ludicrously easy. Do you know anything about cricket? I know a | :39:05. | :39:10. | |
lot about cricket. There is a difference between being a fan and | :39:10. | :39:15. | |
people who absorb it all day. Lots of arm chair political experts, | :39:15. | :39:22. | |
they are thrown, you would feel brutally out of your death. It is | :39:22. | :39:28. | |
remarkably how easily the hospital allowed that call to go through. It | :39:28. | :39:31. | |
suggests that people want to believe, they are in a kind of | :39:31. | :39:35. | |
accepting, believing mood. suppose if you answered the phone | :39:35. | :39:39. | |
and someone said it's the Queen here, would hope it was the Queen | :39:40. | :39:43. | |
wouldn't you? You would think, I hope this is the Queen ringing me | :39:43. | :39:47. | |
and not someone pretending the Queen. You are transferring your | :39:47. | :39:51. | |
hopes on to it in a way. The Australians are fascinated by our | :39:51. | :39:55. | |
monarchy, as they are so proud to be subjects of her Marge city. | :39:55. | :40:03. | |
are an actor, a stand-up comedian, a writer. You do ever feel an | :40:03. | :40:09. | |
imposter in these roles? A lot of roles all the time. The different | :40:09. | :40:14. | |
jobs I do, it is one of the great sadnesses of life, you talk to | :40:14. | :40:19. | |
people of any age and they always say you feel you will be found out. | :40:19. | :40:24. | |
There is no such thing as making it. People are amazing in all sorts of | :40:24. | :40:29. | |
field have the most extraordinary doubts sometimes. Michael Portillo, | :40:29. | :40:34. | |
have you ever felt an imposter in any of your jobs? All the time. | :40:34. | :40:38. | |
There was a night when Margaret Thatcher was decide tolling resign | :40:38. | :40:44. | |
and all her cabinet had told her to resign. I was a middle ranking | :40:44. | :40:51. | |
Minister. I got in to see her one to one and urged her not to resign. | :40:51. | :40:55. | |
I thought I am far too junior. Where is the person who is meant to | :40:55. | :40:58. | |
tell the Prime Minister of the United Kingdom not the resign. All | :40:59. | :41:04. | |
the time I was in the Cabinet, I thought I was in a fake Cabinet and | :41:04. | :41:10. | |
behind the curtain there was a real Cabinet. How long did it take for | :41:11. | :41:15. | |
tow feel you belonged in the cabinet? I had been a Minister for | :41:15. | :41:19. | |
seven years. Mike sell modest and not what I always thought Tories | :41:19. | :41:22. | |
were like. When I first got into Government, I remember the first | :41:22. | :41:26. | |
time I went to Downing Street, I thought isn't the thing that Labour | :41:26. | :41:29. | |
politicians do being in Government, whereas those Tories always think | :41:29. | :41:33. | |
they are born for power and they should belong here. I was a grammar | :41:33. | :41:39. | |
school boy you see. But you can, we were talking about class earlier, | :41:39. | :41:46. | |
if you have a public school accent and confidence and dress the right | :41:46. | :41:51. | |
way, you can fool people a lot of the time. You can fool people, I'm | :41:51. | :41:57. | |
meant to be in there. An act like that. Yes. People are on the | :41:57. | :42:01. | |
lookout for that Braying behaviour now a little bit more. Just being | :42:01. | :42:09. | |
posh and shouting doesn't get you. They just tell tow get off your | :42:09. | :42:13. | |
bicycle. "Freddie" Flintoff swapped contribute for heavyweight boxing. | :42:13. | :42:23. | |
:42:23. | :42:24. | ||
You've swapped heavyweight for -- politics for television. It is | :42:24. | :42:29. | |
marvellous. And I'm less stressed as well. Any other jobs you fancy | :42:29. | :42:39. | |
:42:39. | :42:44. | ||
blagging your way into? Well, I'm always keen to work. All sorts | :42:44. | :42:50. | |
really. I do like the idea of travel documentaries. I'm not sure | :42:50. | :42:55. | |
that is something. Don't tell him that. What are you doing at the | :42:55. | :43:01. | |
moment? I'm in Alan Bennett's new play, People. It is considerable | :43:01. | :43:06. | |
and it has upset the National Trust. You must have done something right. | :43:06. | :43:09. | |
We need to go. That's your lot for tonight folks, | :43:09. | :43:12. | |
but not for us, because with Madonna's infamous "conical bra" | :43:12. | :43:18. | |
being sold at auction this week - for over �32,000! The music was | :43:18. | :43:28. | |
:43:28. | :43:36. | ||
Time Out. I wonder who bought Madonna's conical bra. Michael's | :43:36. | :43:39. | |
absolutely determined to get his money's worth at Annabel's tonight. | :43:39. | :43:42. | |
He'll take someone's eye out if he's not careful. But we leave you | :43:42. | :43:45. | |
tonight with a heartfelt plea, after Sally Bercow declared on | :43:45. | :43:48. |