03/10/2016 - Live Morning Session

:00:17. > :00:20.Good morning, my name is Andrew Sharp. I am delighted to be

:00:21. > :00:26.introducing this first session on an economy which works for everyone.

:00:27. > :00:29.Our economy was not working. Six years on, the deficit is down by

:00:30. > :00:42.two-thirds as a share of GDP. We are one of the fastest growing

:00:43. > :00:49.economies in the developed world. Our economy is recovering. As the

:00:50. > :00:53.Prime Minister said when she set out her economic vision for in July, we

:00:54. > :00:56.need to make sure everyone can share in the country's wealth. There are

:00:57. > :01:03.too many people who are only just getting by. We need our economy to

:01:04. > :01:08.deliver for everyone in every part of Britain.

:01:09. > :01:15.We will hear from the people who will be instrumental in doing so. We

:01:16. > :01:18.will hear on transport, housing and of course from the Chancellor.

:01:19. > :01:23.First, we will hear from the Secretary of State for business,

:01:24. > :01:27.energy and industrial strategy. With 900,000 more businesses than in

:01:28. > :01:31.2010, the British spirit of enterprise has been the engine of

:01:32. > :01:36.our recovery. They couldn't have a bigger champion than this man. It

:01:37. > :01:49.gives me pleasure to welcome Greg Clark.

:01:50. > :01:56.Ladies and gentlemen and friends, it is fantastic to be here. Can I say a

:01:57. > :02:01.big thank you to Andrew on our behaves. Those of us in Kent will

:02:02. > :02:07.remember the vigour and vefr that he put into the general election

:02:08. > :02:10.campaign as r regional chairman that saw us win every single seat in

:02:11. > :02:18.Kent. As Andrew was saying then, ladies

:02:19. > :02:24.and gentlemen, over the last six years we have been able to report

:02:25. > :02:27.that we have created jobs, we have attracted investment and achieved

:02:28. > :02:31.growth. But of course we needed to. We now that every time there's been

:02:32. > :02:35.a Labour Government they have run out of other people's money.

:02:36. > :02:39.Every time there's been a Labour Government, it's fall on the the

:02:40. > :02:45.Conservatives to clean up their mess. And every time, just like this

:02:46. > :02:50.time, we can proudly say we have done our duty.

:02:51. > :03:01.But the truth of course is that it isn't Government that creates jobs.

:03:02. > :03:06.When we say we, what we actually mean is you. The entrepreneurs, the

:03:07. > :03:09.small firms, the start-ups, the inventors, British businesses and

:03:10. > :03:17.the people who work in them. You are the heroes of Britain's economic

:03:18. > :03:22.revival. It is you who we salute. APPLAUSE

:03:23. > :03:26.We have seen a great revival of enterprise in this country. During

:03:27. > :03:30.the last six years almost three million more businesses created,

:03:31. > :03:35.more than any other time since the Victorian era. The taxes that our

:03:36. > :03:41.businesses pay contribute ?140 billion a year to pay for the public

:03:42. > :03:45.services that we use. They've attracted more overseas investment

:03:46. > :03:50.than any other western economy apart from the United States. We are a

:03:51. > :03:53.nation built on business, powered by business and whose future depends on

:03:54. > :04:03.business. APPLAUSE

:04:04. > :04:12.Now, ladies and gentlemen growing up in Teeside in the shadows of the

:04:13. > :04:16.great cooling towers of ICI, I know the importance of big industry.

:04:17. > :04:22.But small business was in my blood too. My dad was a milkman, running

:04:23. > :04:26.the family business that my granddad started after the war, with a horse

:04:27. > :04:32.and cart. I saw at first-hand what being in business really means.

:04:33. > :04:37.Above all, the sheer hard work. My dad was no exception. Up with the

:04:38. > :04:43.lark seven days a week. If you are in business you are never off duty.

:04:44. > :04:48.As a youngster, I understood the effort. But what I didn't always see

:04:49. > :04:52.so clearly was the other side of business, the quick thinking, the

:04:53. > :04:59.inventiveness, the sheer entrepreneurship.

:05:00. > :05:03.Until I turned 17, that was. And I asked for driving lessons as a

:05:04. > :05:09.birthday present. Great idea, said my dad. I'll teach you.

:05:10. > :05:15.But there was a catch. The vehicle that I was caught in turned tout be

:05:16. > :05:21.a milk float. The lessons took place at 5. 30am.

:05:22. > :05:27.Amongst the various manoeuvres on the curriculum, the one I had to

:05:28. > :05:31.practise most was leaping off to deliver milk. It was then I

:05:32. > :05:34.discovered my dad was truly enterprising. If you want to get

:05:35. > :05:39.ahead you have to think ahead. So too does the country. That's why

:05:40. > :05:43.Theresa May is determined that this country should have a proper

:05:44. > :05:49.industrial strategy. I am delighted that she's given me such a

:05:50. > :05:59.powerhouse of a team to support me in this work. We have them today -

:06:00. > :06:02.with Chris Pincher and our CBSs, will you welcome them to our convens

:06:03. > :06:10.today? APPLAUSE

:06:11. > :06:18.Friends, I am thrilled to announce that the man who turned around both

:06:19. > :06:23.ASDA and ITV and who did such great work for our party, Archie Nearman

:06:24. > :06:25.will join me as the non-executive director of this business

:06:26. > :06:30.department. It is obvious from what I have said that if Governments

:06:31. > :06:33.don't create jobs they certainly don't create businesses or

:06:34. > :06:39.industries either. But can Governments make a difference? Well,

:06:40. > :06:44.just ask yourself this - would it matter to British business if, God

:06:45. > :06:53.forbid, Jeremy Corbyn was Prime Minister of this country? Last week,

:06:54. > :07:00.in Liverpool, a city built on enterprise and trade, Mr Corbyn set

:07:01. > :07:03.out his vision. A plan to tax enterprise, to nationalise our

:07:04. > :07:08.industries, to bank roll failure and stamp out success. When today's

:07:09. > :07:12.Labour Party sneer at the job creators, turn their back on the

:07:13. > :07:17.aspirations of ordinary working people and march off to the

:07:18. > :07:26.political extremes, we in this party must make this one simple pledge -

:07:27. > :07:34.we will never allow the Corbyn-esteres to do to Britain what

:07:35. > :07:38.they have done to the Labour Party. The only momentum we want to see in

:07:39. > :07:41.our country is innovation of job creation, regeneration across the

:07:42. > :07:49.land. Enterprise, not socialism is what lifts people out of poverty and

:07:50. > :07:54.this party will never forget it. So, having the right Government w

:07:55. > :07:58.the right policies makes the world of a difference and planning how we

:07:59. > :08:03.can create the best possible conditions for British business in

:08:04. > :08:06.the long-term is not optional, it is essential.

:08:07. > :08:09.Now, ladies and gentlemen, having said that it is businesses that

:08:10. > :08:14.create jobs, I want to introduce you to some of the people who are doing

:08:15. > :08:19.just that to talk about our industrial strategy. Grant Adams is

:08:20. > :08:23.the chief executive of a West Midlands engineering company which

:08:24. > :08:28.supplies components to the automotive industry and now employs

:08:29. > :08:33.over 2,000 people here. Catherine Bennett, all people born and raised

:08:34. > :08:38.in the West mid-mands lands. She is Vice-President of Airbus, who has

:08:39. > :08:44.had the excitement of seeing her company invest and contribute to the

:08:45. > :08:53.Rosetta probe which has completed the mission just last Friday and Sir

:08:54. > :08:57.Bater, who runs a successful accountancy business who helps small

:08:58. > :08:58.start ups here in the West Midlands. Please welcome all three of them up

:08:59. > :09:21.to the stage. Great, well Catherine, starting with

:09:22. > :09:28.you, you had that spectacular space mission which must have galvanised

:09:29. > :09:31.the whole workforce, but tell me for a successful business like yours,

:09:32. > :09:36.looking to industrial strategy, what is the one thing that working with

:09:37. > :09:39.you we need to prioritise and put to the forefront? Thanks. The first

:09:40. > :09:43.thing I would say is the power strategy, which we have got, we've

:09:44. > :09:46.got to work on it. Really, it is really important that the strategy

:09:47. > :09:50.helps us have a competitive advantage over the other nations,

:09:51. > :09:53.especially in light of Brexit. The other thing I would say is

:09:54. > :09:56.partnership, so not only working with your ministry and other

:09:57. > :09:59.partners in the industry, but also in the regions as well, which I know

:10:00. > :10:05.is something you are very passionate about. And really you talk about

:10:06. > :10:11.Rosetta, it is all about innovation. The colleagues of mine and our

:10:12. > :10:15.engineers based in Stevenage were responsible for what my colleagues

:10:16. > :10:21.tell me is the what heart of the Rosetta, they did the design, the

:10:22. > :10:26.prop polltion and the thermal materials that helped that ?1.1

:10:27. > :10:33.billion project succeed. It was amazing to see the coverage it got

:10:34. > :10:37.last Friday. Let's think how Tim Peake galvanised people to think

:10:38. > :10:42.about innovation. Of course we are leading and your company are leading

:10:43. > :10:45.on the next rover to Mars. It is British-led. So we can be sure it

:10:46. > :10:51.will drive on the left-hand side of the road when it is in Mars. I am

:10:52. > :10:55.sure it will! We will have British technology powering that. Grant, you

:10:56. > :10:59.are in the technology business. You have been tremendously successful as

:11:00. > :11:02.part of the supply chain for the motor industry here in the West

:11:03. > :11:06.Midlands. As you say, 2,000 people. Tell us a bit about what you think

:11:07. > :11:11.is most important to us as we work together on the industrial strategy?

:11:12. > :11:17.Today I am getting over the bombshell about Villa Park. That is

:11:18. > :11:22.the first thing I should say. For us, I mean, I don't think we

:11:23. > :11:27.have seen volumes in the automative industry since 1972 in the UK. We

:11:28. > :11:32.are building more vehicles now than 40 years ago. That means, for a

:11:33. > :11:37.business that's so closely linked for us into the automative industry,

:11:38. > :11:43.it is about sustaining that growth. It is key about people. We started

:11:44. > :11:48.learning academy and we have taken 250 people through that. So, every

:11:49. > :11:54.weak we have got 20 people that are coming through that academy. It is

:11:55. > :11:59.so important to get that next level of workforce trained and skilled.

:12:00. > :12:03.And we are getting people from different industries, so they

:12:04. > :12:07.haven't got maybe the engineering skills. It is important that we

:12:08. > :12:11.train the people. So you have established that. You were telling

:12:12. > :12:14.me if you were not here this morning every week you start your week at

:12:15. > :12:18.the academy talking to the people being trained. The first thing I say

:12:19. > :12:23.to people is we cannot train you for attitude. What we can train you for

:12:24. > :12:32.is for skills and that is I think the most important thing in the

:12:33. > :12:40.message to get across to people. I think me

:12:41. > :12:46.You have a practise helping SMEs and startups and you helped on the local

:12:47. > :12:50.enterprise projects. One of the great things we have seen in the

:12:51. > :12:54.last few years is how with the Local Enterprise Partnerships across the

:12:55. > :12:57.country you have businesses and civic leaders of the area working

:12:58. > :13:00.together, tell us how it has been in Birmingham. I should start by

:13:01. > :13:03.welcoming the whole of conference to Birmingham. I hope you get a chance

:13:04. > :13:07.to see the real development that's happening in this region outside the

:13:08. > :13:10.conference centre. If not today, hopefully you can come back and see

:13:11. > :13:15.here. I mean, you will have seen, here. I mean, you will have seen,

:13:16. > :13:19.for example, just over the road, the cranes building the new retail bank

:13:20. > :13:23.for HSBC, bringing over 1800 jobs. Some of you may have seen the new

:13:24. > :13:27.development at New Street, which is a fantastic welcome to millions of

:13:28. > :13:33.visitors to this region. Some of you may have endured some of the

:13:34. > :13:37.roadworks. They are a short-term pain for a long-term gain. Coupled

:13:38. > :13:40.with that, we've had the fastest creation of job growth in this

:13:41. > :13:47.region over the last six years. Nearly 100,000 jobs. A large amount

:13:48. > :13:51.of investment and a trade surplus to China. All that come down to two

:13:52. > :13:55.things in my opinion, the first is communication with Government. I

:13:56. > :13:59.know you have been a great supporter, Greg, and we have managed

:14:00. > :14:07.to make sure that business is at the heart of the agenda. I really

:14:08. > :14:10.welcomed what you said in your speech, putting businesses and

:14:11. > :14:13.entrepreneur at the heart of the agenda. It is business that

:14:14. > :14:17.delivers. So I really welcome that you recognise that.

:14:18. > :14:25.The second part of this is really leadership. We were very lucky to

:14:26. > :14:31.have had Andy Shreet, the former chair, having stood for the mayoral

:14:32. > :14:38.team. He's a very humble guy. I know Andy is a very humble guy and

:14:39. > :14:57.understated to. Have taken the company from where it was in 2010

:14:58. > :15:00.and bring it to where it is now in 2016 the resources that we have got,

:15:01. > :15:00.the jobs he's created, brath together the

:15:01. > :15:07.universities, eight Metropolitan communities. The. Chambers

:15:08. > :15:14.We were at dinner and we were talking to some real experts and how

:15:15. > :15:18.we could supercharge the growth in the coming period. He didn't know

:15:19. > :15:24.that I overheard him. He said, all I want to do is serve and improve the

:15:25. > :15:29.quality of the life of the people representing. In my opinion, there

:15:30. > :15:41.is no more noble sentiment stands out from our leader. We all agree

:15:42. > :15:45.with that. Your support for him to lead this fantastic city, as you

:15:46. > :15:49.say, the spirit that you pick up when walking around Birmingham is

:15:50. > :15:56.fantastic to feel. Thanks for what you are doing as part of supporting

:15:57. > :16:00.Andy on that. Stay with us. I will say a few more words and then have

:16:01. > :16:07.some other contributions. Can you thank our guests?

:16:08. > :16:13.Three people from the West Midlands doing great things for our economy.

:16:14. > :16:18.And I think it justifies what they say that if you are to have an

:16:19. > :16:22.industrial strategy, you need to build on your strengths. Building on

:16:23. > :16:27.your strengths is the cornerstone of a good strategy and we have no

:16:28. > :16:31.shortage of that. We are a scientific powerhouse. Only America

:16:32. > :16:36.has no Nobel prizewinners and more top universities than we do. On your

:16:37. > :16:40.way home tonight, if you look into the night sky, you can marvel that a

:16:41. > :16:46.quarter of all the satellites launched into orbit are made not in

:16:47. > :16:59.Houston or Cape Canaveral, but in Stevenage. That is by a firm we've

:17:00. > :17:02.talked about here. Our professional services, how creative industries,

:17:03. > :17:07.our technologists, they all set the global gold standard and our global

:17:08. > :17:12.leadership in combating climate change, which we will maintain and

:17:13. > :17:16.take forward, now presents us with a massive opportunity to enjoy

:17:17. > :17:22.industrial success. I'm pleased to see in the audience, the MD of

:17:23. > :17:26.Siemens, who's made such an -- fantastic investment in Hollande the

:17:27. > :17:28.Humber, creating many jobs because of our leadership in these new

:17:29. > :17:37.technologies. Welcome to the conference. We need to build on our

:17:38. > :17:43.strengths. But of course, building on those strengths and indeed

:17:44. > :17:47.magnifying them is not the same as protecting incumbency. My view is

:17:48. > :17:52.that we must act constantly to create the conditions for us to be

:17:53. > :17:56.open to new competitors and indeed to new industries that may not exist

:17:57. > :18:02.anywhere today but which will shape our lives in the future. The

:18:03. > :18:07.benefits of innovation must flow to consumers, in better product,

:18:08. > :18:13.improved services and cheaper prices. The best businesses value

:18:14. > :18:18.long-term relationships with their most loyal customers. The worst ones

:18:19. > :18:22.abuse them. Of course, it's not in the most competitive industries

:18:23. > :18:26.where people who are loyal to their supplier fleeced. But where

:18:27. > :18:31.competition is most sluggish and incumbents most dominant. An economy

:18:32. > :18:37.which works for everyone must ensure that those with market power don't

:18:38. > :18:39.use them against consumers, especially those vulnerable to

:18:40. > :18:51.exploitation. That is a principle that we will apply in our industrial

:18:52. > :18:56.strategy. And this is true of workers. We know that outside the

:18:57. > :19:01.family in education, work is the most important way in which people

:19:02. > :19:08.can develop their talents and spread their wings. Thriving businesses

:19:09. > :19:12.create opportunity and from Shaftesbury's factory Acts, to

:19:13. > :19:16.William Hague's discolouration act, conservatives have always understood

:19:17. > :19:20.that decent treatment of people at work is not at the expense of

:19:21. > :19:24.industrial success. It's a foundation of it. That is why the

:19:25. > :19:28.Prime Minister and I have launched a review, an immediate review, of the

:19:29. > :19:33.employment practice in the modern economy, so we can keep pace with

:19:34. > :19:38.developments as they take place. We know our labour market works for the

:19:39. > :19:44.vast majority of people but we wanted to work for everyone. As we

:19:45. > :19:49.were talking about with the panel, in this city of Josef Chamberlain,

:19:50. > :19:53.who, as mayor, created the conditions for industrial success

:19:54. > :19:57.that made Birmingham renowned as the city of a thousand trades, we must

:19:58. > :20:03.recognise the importance of place in industrial strategy. For far too

:20:04. > :20:07.long, governments have peered out from Whitehall and imposed policies

:20:08. > :20:11.that treated every place as if they were identical. Well, they are not.

:20:12. > :20:16.The needs of Cornwall are different from those of Birmingham and our

:20:17. > :20:20.strategy must reflect that. We couldn't be more fortunate in having

:20:21. > :20:24.a man who embodies the combination of brilliant business success and

:20:25. > :20:28.passionate devotion to this city and region standing to be mayor as Andy

:20:29. > :20:41.Street. I know we will all give him our huge full hearted support. The

:20:42. > :20:45.best government is the one that sense is the world is changing and

:20:46. > :20:49.the country has to change, too. In 1979, Mrs Thatcher and the new

:20:50. > :20:55.government knew that Britain needed to change to meet the modern world.

:20:56. > :21:02.She described 1979 as a year that was not just part of history but

:21:03. > :21:08.which made history. I believe that in the years to come, we will look

:21:09. > :21:15.back on 2016 as just such a time. And the challenge facing us is this.

:21:16. > :21:18.For all the excellence and entrepreneurial brilliance have

:21:19. > :21:23.described, for all the assets, skills and reputation we have as a

:21:24. > :21:31.nation, for all of the astonishing economic progress we've made in this

:21:32. > :21:36.country, it is still too uneven. Britain can boast the richest area

:21:37. > :21:41.in northern Europe, Central London. But we also have nine of the ten

:21:42. > :21:45.poorest. We conservatives know that that is not good enough. We have

:21:46. > :21:50.some of the most capable people, some of the best trained people on

:21:51. > :21:54.the planet but still too many people who haven't had the education or the

:21:55. > :21:59.training that they need to get a good quality job. We have new

:22:00. > :22:03.infrastructure like Crossrail about to open, you Street station recently

:22:04. > :22:08.opened. We have digital networks that leave too many people poorly

:22:09. > :22:14.connected. We have low carbon energy systems that lead the world but also

:22:15. > :22:19.a failure of successive governments to replace our ageing power

:22:20. > :22:24.stations. We have a worldwide reputation for fair deals but also

:22:25. > :22:31.examples of behaviour that trashes the good name of business. This is

:22:32. > :22:39.no time to lower our sites or our standards. This country will never

:22:40. > :22:44.win a race to the bottom. Looking ahead, it is clear that the only

:22:45. > :22:52.viable path is in the opposite direction. I believe it is time for

:22:53. > :22:56.this country to have an upgrade. An upgrade in our infrastructure, an

:22:57. > :23:01.upgrade in the resilience and cleanness of our energy supplies, an

:23:02. > :23:04.upgrade in our education and training, and upgrade in the

:23:05. > :23:09.development and regeneration of our towns and cities. Upwards to a

:23:10. > :23:12.country that invests, upwards to a country of opportunity and

:23:13. > :23:15.enterprise, upwards to an economy that works for everyone. Thank you

:23:16. > :23:45.very much indeed, ladies and gentlemen. APPLAUSE.

:23:46. > :23:52.Thank you, Greg. Housing is vital. We need more homes so that people

:23:53. > :23:56.from all backgrounds have a chance of getting onto the housing ladder.

:23:57. > :24:01.It gives me great pleasure to introduce Sajid Javad, the excellent

:24:02. > :24:02.new Communities Secretary, who has a fantastic record of delivering and

:24:03. > :24:23.he will tell us more. Thank you. Today, I want to talk to you about

:24:24. > :24:27.housing. It's a huge issue for our country and one that our new Prime

:24:28. > :24:33.Minister is determined to do something about. As your new

:24:34. > :24:45.Communities Secretary, it will be my number one priority. But before I do

:24:46. > :24:50.talk about that, I want to start by paying tribute to many of you in

:24:51. > :24:56.this room. Our excellent Conservative councillors and local

:24:57. > :25:01.leaders. A week working at DC argy, I'm more aware than ever of the huge

:25:02. > :25:06.amount of work that you do. You are off the unsung heroes. You give up

:25:07. > :25:10.your time, your sleep, your shoe leather, sometimes it may even feel

:25:11. > :25:16.like you're giving up your sanity. And you do it, not because you seek

:25:17. > :25:21.riches or rewards. It's because you care deeply about your community.

:25:22. > :25:25.You want to make it a better place. Well, I want you to know that I

:25:26. > :25:39.recognise the hard work that you do and I appreciate it enormously.

:25:40. > :25:43.Thank you. I would also like to take this opportunity to thank my

:25:44. > :25:50.brilliant ministerial team, Gavin Barwell, Marcus Jones, Andrew Percy,

:25:51. > :25:54.Nick Bourne and our superb PPS, Rebecca Harris and Rebecca Powell.

:25:55. > :26:04.Thank you for the work you all do. Thank you. Two months ago, Theresa

:26:05. > :26:08.May gave her first speech as Prime Minister on the steps of ten Downing

:26:09. > :26:13.St. She made it clear that our priority is Conservatives must be to

:26:14. > :26:16.ensure that Britain is a country that works not just for the

:26:17. > :26:22.privileged few, but for everyone of us. She is absolutely right. If we

:26:23. > :26:31.are truly to achieve this, then building homes is critical. The

:26:32. > :26:37.first house I remember living in was 107 East Street, Bedminster,

:26:38. > :26:43.Bristol. I call it a house. It was actually just a small flat above my

:26:44. > :26:49.parent's shop. All seven of us, me, my mum, my dad, four brothers, all

:26:50. > :26:53.squeezed into two bedrooms. I also recall a while back, soon after I

:26:54. > :26:58.became member of Parliament, in a select committee, someone who was

:26:59. > :27:07.giving evidence said that by modern standards, I was actually homeless.

:27:08. > :27:12.Anyway, my point is this. Having a safe, secure home, is so important.

:27:13. > :27:17.It's not just a place to rest your head. It's a place to live your

:27:18. > :27:26.life. It's a place you could call home. Now, over the last six years,

:27:27. > :27:31.we've made a lot of progress. My predecessors, Eric pickles and Greg

:27:32. > :27:36.Clark, have done a huge amount of work. Massive investment in housing,

:27:37. > :27:41.a wholesale reform of the planning process, new legislation, right to

:27:42. > :27:50.buy for housing association tenants and so much more. The results are

:27:51. > :27:56.therefore all of us see. Since 2010, annual housing starts have gone up

:27:57. > :28:03.by 30%. Almost 300,000 affordable homes had been provided in England.

:28:04. > :28:09.And more than 330,000 households have benefited from schemes like

:28:10. > :28:13.help to buy and right to buy. And we've doubled the housing budget to

:28:14. > :28:21.more than ?20 billion over the next five years. That money is allowing

:28:22. > :28:24.us to embark upon the largest government backed house-building

:28:25. > :28:31.programme since the 1970s. So I would like to pay tribute to my

:28:32. > :28:38.predecessors for all the hard work they did. But let's be honest with

:28:39. > :28:43.ourselves. There is still a long, long way to go. Far too many young

:28:44. > :28:49.people can not get a foot on the housing ladder. Many are being

:28:50. > :28:57.forced to live back with mum and dad as rents soar faster than wages.

:28:58. > :29:03.Here, in Birmingham, in 1997, the average house price was just under

:29:04. > :29:10.three times average income. Last year, it was more than five times.

:29:11. > :29:14.1.5 million households contain at least one adult who says he or she

:29:15. > :29:22.would love to buy or rent their own home but they simply cannot afford

:29:23. > :29:27.to do so. Harold Macmillan, he put it best more than 90 years ago,

:29:28. > :29:36.housing is not a question of conservatism or socialism, he said,

:29:37. > :29:41.it's a question of humanity. Tackling this housing shortfall

:29:42. > :29:50.isn't about political expediency. It is a moral duty. And it is one that

:29:51. > :29:53.falls upon all of us, not just in parliament, but on businesses, in

:29:54. > :30:47.local government and in local communities.

:30:48. > :30:55.So my message today is clear, it is time to get building. The big

:30:56. > :31:01.developers must release their stranglehold on supply. It is time

:31:02. > :31:09.to stop sitting on lane banks, the home buyers must come first. Lnl

:31:10. > :31:13.280,000 -- almost 280,000 planning permissions were issued. I want to

:31:14. > :31:18.see every one of those converted into homes as soon as possible.

:31:19. > :31:24.Local leaders must be prepared to make the difficult calls, even if

:31:25. > :31:31.sometimes they are unpopular. And so must MPs and council lors. Of course

:31:32. > :31:34.there are sometimes valid reasons to oppose some local planning

:31:35. > :31:38.applications. If they are in the wrong place, if there is not enough

:31:39. > :31:44.infrastructure or if they are just plain ugly.

:31:45. > :31:47.But all of us, we all have a duty to think about the long-term

:31:48. > :31:53.consequences of every decision that we make.

:31:54. > :32:02.As elected representatives, we are here to take the right decisions not

:32:03. > :32:07.the easy ones. Ultimately, we have a responsibility

:32:08. > :32:11.to build more houses. A responsibility not just to our

:32:12. > :32:16.constituents, but to the next generation.

:32:17. > :32:22.It is for that reason that we are going to take some unprecedented

:32:23. > :32:29.steps to open up the market. First today, we are opening up a

:32:30. > :32:35.massive ?3 billion home builder's fund. This major package will help

:32:36. > :32:41.us build more than 225,000 more homes and will create thousands of

:32:42. > :32:53.jobs up and down the country. APPLAUSE

:32:54. > :32:56.It will also helps us get more SMEs building, it will encourage custom

:32:57. > :33:02.builders and allow developers to build the infrastructure needed to

:33:03. > :33:07.support new housing. Now second, we will pilot a new initiative.

:33:08. > :33:17.Accelerated construction on public land.

:33:18. > :33:22.We will take Government owned land and we will partner with contractors

:33:23. > :33:28.and investors to speed up house building. We will create new supply

:33:29. > :33:32.chains using offsite construction. We will encourage new models of

:33:33. > :33:37.building to make houses that people want more cheaply and at pace. These

:33:38. > :33:40.measures will allow us to get started on some 15,000 new homes by

:33:41. > :33:53.2021. We will get more homes built more

:33:54. > :33:57.quickly. So, we will bring forward a package of messages to encourage

:33:58. > :34:01.urban regeneration and to build on brownfield land. We will want to

:34:02. > :34:07.radically increase brownfield development and bring life back to

:34:08. > :34:12.abandoned sites. That means delivering high-quality housing for

:34:13. > :34:19.families, bringing new energy to our high streets I means abandoned

:34:20. > :34:21.shopping centres being transformed. Increasing the density of housing

:34:22. > :34:25.around stations to build homes that people want to life in. These are

:34:26. > :34:30.just three initiatives. They are just the beginning.

:34:31. > :34:36.We will publish a housing White Paper later this year, with further

:34:37. > :34:41.significant measures. All helping us towards our ambition for a million

:34:42. > :34:55.new homes by 2020. APPLAUSE This is also action here

:34:56. > :34:59.and now. I think it shows that we, together, that we mean business. You

:35:00. > :35:04.see, we are the party that is willing to take difficult decisions,

:35:05. > :35:12.make the hard calls in order to build a better Britain for everyone.

:35:13. > :35:16.If we choose popularity over progress today, we are betraying the

:35:17. > :35:24.voters of tomorrow. But we need to remember it is not

:35:25. > :35:30.simply houses that we're just building, it is homes. It is places

:35:31. > :35:40.for people to live in, to grow, to raise a family. We're not just

:35:41. > :35:43.putting roofs over heads. We're creating communities and that's why

:35:44. > :35:47.it is so important that as we build these communities we don't just

:35:48. > :35:52.impose our will from Westminster. That's why I am proud to be

:35:53. > :35:58.continuing with our ambition devolution agenda. Having elected

:35:59. > :36:03.mayors will help us put power the hands of local people, exactly where

:36:04. > :36:09.it belongs. There can be no better candidate for the west Midlands than

:36:10. > :36:16.our very own Andy Street. APPLAUSE

:36:17. > :36:21.Congratulations, Andy on your nomination. We're backing you every

:36:22. > :36:27.step of the way. Now Andy is the perfect candidate

:36:28. > :36:35.because he understands the local area. He understands the local

:36:36. > :36:40.economy and local communities. Labour, on the other hand, don't

:36:41. > :36:45.have a clue what communities are all about and they don't support home

:36:46. > :36:49.ownership and they certainly are not capable of getting the houses we

:36:50. > :36:56.need built. Let's just take a look at their

:36:57. > :37:02.track record. Under Labour house building fell to levels not seen

:37:03. > :37:07.since the 1920s. Under Labour, in one 12-month

:37:08. > :37:13.period, just 75,000 homes were started.

:37:14. > :37:17.Under Labour, average house prices almost doubled compared to average

:37:18. > :37:23.wages. You see, the truth is, under Labour,

:37:24. > :37:30.targets were missed, waiting lists grew longer and more and more homes

:37:31. > :37:33.stood empty. And they have the audacity to lecture us on housing

:37:34. > :37:42.policy. APPLAUSE

:37:43. > :37:50.But there is a difference between them and us. They want a society

:37:51. > :37:55.that's dependant on the state rather than a state that serves society.

:37:56. > :38:06.That's why they've always opposed right to buy. Of course it is very

:38:07. > :38:17.easy to dismiss home ownership as a bore gooses a perration, especially

:38:18. > :38:23.from the comfort of your multimillion pound Islington town

:38:24. > :38:32.house. Emily Thornbury - remember her? The champagne socialist Shadow

:38:33. > :38:38.Foreign Secretary, who cringes when she sees the English English flag.

:38:39. > :38:49.She already owns at least three houses worth a total of ?4 million.

:38:50. > :38:54.And yet she wants to stop working people from owning the homes that

:38:55. > :39:00.they want to grow up in, raise families in, want to grow old in.

:39:01. > :39:11.The hypocrisy is quite something. APPLAUSE

:39:12. > :39:20.You have to remember Labour are the party of dependants. They always

:39:21. > :39:26.have been and they always will be. So I say to all Conservatives, let's

:39:27. > :39:30.get Britain building. Let's build the houses that the people of

:39:31. > :39:34.Britain deserve today. Let's build the homes that our children and our

:39:35. > :39:39.grandchildren will need tomorrow. Let's build on the legacy of

:39:40. > :39:42.McMillan and Thatcher, under our Prime Minister Theresa May, let's

:39:43. > :39:46.build the houses we need to ensure that Britain is a country that works

:39:47. > :39:50.for everyone. APPLAUSE

:39:51. > :40:00.Thank you. Thank you very much. Thank you.

:40:01. > :40:40.Ladies and gentlemen, transport is essential, we need faster trains,

:40:41. > :40:45.better roads and more investment in future technologies. No in our

:40:46. > :40:50.Transport Secretary we have a man who is a commuter himself, I know

:40:51. > :41:02.this is true because we sometimes share the same train. It gives me

:41:03. > :41:07.great pleasure to introduce Chris Grayling.

:41:08. > :41:13.Good morning, ladies and gentlemen. It is great to be introduced by

:41:14. > :41:18.Andrew. I recruited him to the party. He became my association

:41:19. > :41:21.chairman: He is now a senior figure and making a real contribution to

:41:22. > :41:27.everything we do. It is great to be introduced by him today. Ten years

:41:28. > :41:30.ago I was Shadow Transport Secretary in David Cameron's first Shadow

:41:31. > :41:35.Cabinet. And you know, as you do, as a Shadow Cabinet member, or

:41:36. > :41:38.minister, I travelled around the country helping MPs and candidates,

:41:39. > :41:42.hearing about the things they believed needed to be done to sort

:41:43. > :41:48.out the transport system in their areas.

:41:49. > :41:55.As you guess - new by passes, new stations, wider roads, new trains.

:41:56. > :41:59.Well, it is ten years later, I still travelled around the country helping

:42:00. > :42:05.colleagues, visiting constituencies and do you know what, I see schemes

:42:06. > :42:10.that were desperately needed and have been built by Conservatives in

:42:11. > :42:15.Government. Ladies and gentlemen, we are delivering for Britain.

:42:16. > :42:20.APPLAUSE Now, of course, we all now our

:42:21. > :42:25.transport system is not perfect. But it is a whole lot better than it

:42:26. > :42:30.was under Labour. And we should never let them forget that.

:42:31. > :42:36.It has been obvious to me, ever since I have been out and about in

:42:37. > :42:41.my new job. One example, remember when we took office in 2010, our

:42:42. > :42:47.biggest train manufacturing plant in Derby was on its knees. Losing

:42:48. > :42:51.orders toment co-petters abroad and had serious doubts about its future.

:42:52. > :42:56.Back in July, just after I took over, the transport department, I

:42:57. > :43:02.visited that same plant to announce a ?1 billion order for new trains

:43:03. > :43:07.for passengers in East Anglia. And also to see the state-of-the-art

:43:08. > :43:10.trains they are building for Europe's biggest infrastructure

:43:11. > :43:14.project, Crossrail. They are fantastic, enormous and will make a

:43:15. > :43:18.real difference to our capital. Then in August I visited the team

:43:19. > :43:24.building the new Manchester relief road. Easing congestion for local

:43:25. > :43:28.communities with a project that Labour never got around to building

:43:29. > :43:32.in their 13 years in office. One of my first actions as Secretary of

:43:33. > :43:36.State was to approve the expansion of London City Airport, opening up

:43:37. > :43:41.more strategic routes into the heart of our capital. Ladies and

:43:42. > :43:44.gentlemen, Conservatives are already delivering better transport that

:43:45. > :43:53.works for everyone in Britain and there is more to come.

:43:54. > :43:59.APPLAUSE We all know that one of the people

:44:00. > :44:05.responsible for those improvements is my predecessor. I arrived in a

:44:06. > :44:09.happy, well run department which has flourished under his leadership. It

:44:10. > :44:13.is a great honour to follow him in that job. But actually it is great

:44:14. > :44:28.to have him as our new party chairman.

:44:29. > :44:38.APPLAUSE That has paid tribute to any new team, John Hayes, Tariq, our

:44:39. > :44:40.whip, Jackie and our two great PPSs. I am very lucky to have such a

:44:41. > :44:51.hard-working team. And hasn't it been a momentous year

:44:52. > :44:56.for our politics? I am enormously proud to have been part of a team

:44:57. > :44:58.that won the arguments that Britain has a better and brighter future

:44:59. > :45:15.outside the European Union. I am also really proud to have been

:45:16. > :45:21.part of the team that helped elect our new leader and Prime Minister,

:45:22. > :45:24.Theresa May. I know she and our team world delivered that better and

:45:25. > :45:34.brighter future and a country that works for everyone. And, boy, what a

:45:35. > :45:37.contrast with the other side. I watched them all of this summit in

:45:38. > :45:42.chaos. They've been at war with themselves for month why we have

:45:43. > :45:46.been getting on with the job. That is the difference between the Labour

:45:47. > :45:51.and Conservative Party. And do you know what, I've always wanted the

:45:52. > :45:54.job of Transport Secretary because it's a job where the government

:45:55. > :45:58.really can and does deliver for everyone. It can make a real

:45:59. > :46:03.difference to people's lives and it does every single day. When you

:46:04. > :46:08.leave your home, whether you are going on the train, you are in the

:46:09. > :46:12.car, on a bike, even just walking down the street, if things work,

:46:13. > :46:17.it's great and believe me, if they don't, I get all the e-mails. I want

:46:18. > :46:22.to make sure we really do have a transport system that works for

:46:23. > :46:25.everyone and when I arrived at my new department, my first instruction

:46:26. > :46:29.to the team there was that everything we do, everything we do,

:46:30. > :46:35.has to put the passenger or motorist first. If it doesn't help the

:46:36. > :46:38.travelling public, if it doesn't help that business shifting goods

:46:39. > :46:41.around the country, then we really shouldn't be doing it. And actually,

:46:42. > :46:46.I'm really proud of the things we are already doing. We are opening

:46:47. > :46:51.new roads and improving the ones we've already got. We are making

:46:52. > :46:55.roads safer, bringing stiffer penalties in for those caught using

:46:56. > :47:02.their mobile phones by driving. We are organising our trains with more

:47:03. > :47:07.space, more seats, with the latest high-tech passenger information. We

:47:08. > :47:13.are opening new stations and railway lines, like the station just a few

:47:14. > :47:16.miles down the road from here, part of the vital link that opens up the

:47:17. > :47:21.network for people and businesses. In our big cities, we are spending

:47:22. > :47:26.more money on tram systems and state of the art cleaner buses and good

:47:27. > :47:30.news about the buses, they are built in Britain, too. Beyond road and

:47:31. > :47:35.rail, we are doing more to support cycling, more to support community

:47:36. > :47:40.transport all of the country. But of course, I know there is still an

:47:41. > :47:44.awful lot to do. We are running to keep up. I've got more and more

:47:45. > :47:49.people who want to travel and there are too many jams on our roads. That

:47:50. > :47:52.is why we are starting the biggest modernisation programme of our

:47:53. > :48:02.strategic road system for a generation.

:48:03. > :48:09.And I know our trains are crowded. I travel on them every day. It's often

:48:10. > :48:13.tough to get a seat. Although, I have to say, as Jeremy Corbyn would

:48:14. > :48:25.have you believe, on a mid-morning service to Newcastle. But no, Mr

:48:26. > :48:29.Corbyn, your great myth, the trains were not shinier, they were not

:48:30. > :48:39.better and they were fewer seats in the days of British rail. Just think

:48:40. > :48:45.of those so-called golden days of British rail. Just one example,

:48:46. > :48:50.Corby in the East Midlands. It lost its train service. The local station

:48:51. > :48:55.was closed. That was the reality of British rail for Corby. Reality of

:48:56. > :48:59.today's railway for Corby is different. There is so much demand,

:49:00. > :49:03.we are planning an extra track to meet their needs. That's the

:49:04. > :49:07.difference between today's roadways and what happened then. But we do

:49:08. > :49:13.need to do more. I travel into Waterloo each day. The trains are

:49:14. > :49:18.packed. 20 years ago, around 110,000 people a day used that station.

:49:19. > :49:29.Today, it is nearly 250,000. So what do we do? We are providing longer

:49:30. > :49:31.platforms and longer trains which will help ease that congestion. It's

:49:32. > :49:34.not just in London. There will be new trains with tens of thousands of

:49:35. > :49:38.new seats, more seats, in Manchester, Leeds and in Birmingham.

:49:39. > :49:42.I want to make sure we have a transport system that works for

:49:43. > :49:50.everyone. But not everyone agrees with me. Bringing in these changes

:49:51. > :49:54.has been no easy ride. A small hard-core of trade union leaders

:49:55. > :50:01.have been misleading their members and calling them out on strike. They

:50:02. > :50:06.don't want the modernisation of our network. We know the staff who work

:50:07. > :50:11.on our Railways know what's best for passengers but ladies and gentlemen,

:50:12. > :50:15.the minority of militant unionists do not care and do not want a good

:50:16. > :50:20.deal for our passengers. They have that one, simple, ideological goal,

:50:21. > :50:25.they want to renationalise our railways. It is no surprise that

:50:26. > :50:30.Jeremy Corbyn's Labour Party backs the call of its union paymasters.

:50:31. > :50:32.But we all know, we are conservatives, we've seen the

:50:33. > :50:40.changes that have happened in the last 30 years. We know that it's an

:50:41. > :50:43.expensive, reckless idea and it will not fix the problems we face today

:50:44. > :50:48.or deliver the modernisation passengers want. As conservatives,

:50:49. > :50:58.we want to move forwards and not backwards.

:50:59. > :51:04.One of the things people down the road also know is we need better

:51:05. > :51:07.services to places like Milton Keynes, Northampton and Coventry.

:51:08. > :51:11.Everyone in this room would agree we want to get more freight off the

:51:12. > :51:16.roads and onto our railways. How do we do that? It is fairly easy. We

:51:17. > :51:21.create more space in our railways. That might sound conjugated but no.

:51:22. > :51:25.How do we do that? We build a new railway line that thinks our major

:51:26. > :51:32.cities so we've got more space for freight trains and Camino trains on

:51:33. > :51:41.our other busiest trine 's -- lines. That is the reason we need to press

:51:42. > :51:46.ahead with HS2. Our whole country will benefit. A commuter will

:51:47. > :51:50.benefit from the extra space it frees up on their lines. The

:51:51. > :51:54.motorist who never uses a train will have a quicker journey as we get

:51:55. > :51:59.more freight off the roads. If we are going to build a new railway

:52:00. > :52:05.line, why on earth the wouldn't we build a new state-of-the-art one for

:52:06. > :52:08.the coming century? What we are all about is a new 21st-century

:52:09. > :52:13.Elizabethan era for our railways. We're not about going back to the

:52:14. > :52:17.Victorian one. And of course, our focus on the future should be

:52:18. > :52:22.mirrored right across the transport network which is why today I am

:52:23. > :52:27.pleased to announce another ?12 million for Midlands connect, to

:52:28. > :52:33.keep up their important work here in the West Midlands, planning its

:52:34. > :52:35.transport needs until 2020. We are nationally delivering efficient for

:52:36. > :52:41.the future of our overall system, but that has to sit alongside local

:52:42. > :52:48.solutions to local problems. Ladies and gentlemen, there is a transport

:52:49. > :52:52.revolution on the way. It's going to change all of our lives. Technology

:52:53. > :53:00.is going to change the way we all travel. I had recently my first

:53:01. > :53:06.experience of a driverless car and believe me, it's a very unusual

:53:07. > :53:10.experience! But do you know what, it's all of our futures. And what a

:53:11. > :53:13.difference it is going to make. I think particularly, what I think is

:53:14. > :53:18.exciting about it is the difference it's going to make to the lives of

:53:19. > :53:22.the elderly or the disabled. I think it can transform their lives almost

:53:23. > :53:25.more than anyone else in our society. But this driverless

:53:26. > :53:30.technology is going to mean better use of our roads, more reliable

:53:31. > :53:35.journeys, safer motoring and I want is to be at the forefront of that.

:53:36. > :53:41.Our modern transport Bill due early next year will help pave the way so

:53:42. > :53:44.we can build and use that new technology here, so we can be

:53:45. > :53:48.pathfinders in its future development. I want to say to the

:53:49. > :53:54.motor manufacturers of the world, come to the UK, develop your

:53:55. > :53:57.technology here. We have the most skilled, most knowledgeable

:53:58. > :53:58.workforce in the world. Britain is open for business and this

:53:59. > :54:14.government will support you. Now, I suspect if you might have

:54:15. > :54:18.spotted that there is another part of our transport future that is

:54:19. > :54:23.right at the top of my in tray. We have a big decision to take about

:54:24. > :54:27.airport capacity. If we are going to have an economy that works for

:54:28. > :54:31.everyone, and if we are going to take advantage of all the

:54:32. > :54:36.opportunities that Brexit will bring us, we need great links around the

:54:37. > :54:40.world. By building a new runway in the south-east, we will send a

:54:41. > :54:44.signal to the world that Britain is open for business. And it won't just

:54:45. > :54:47.benefit the south-east. It's not just about the south-east of

:54:48. > :54:52.England. It's about our whole country. Regional airports will

:54:53. > :54:56.benefit from any expansion, too. It's one of the great pluses of

:54:57. > :55:08.doing this. Ladies and gentlemen, this decision, this plan is good for

:55:09. > :55:13.the whole British economy. But none of this on the transport front can

:55:14. > :55:16.happen without people. The men and women to drive our trains, the

:55:17. > :55:21.people who provide information on our roads and who can to the rescue

:55:22. > :55:28.when things go wrong, for people who fly us around the world, the crews

:55:29. > :55:31.on the ship saw the teams in our ports who keep our trade and the

:55:32. > :55:38.economy moving and also keep UK waters safe. And then there are

:55:39. > :55:42.those invisible people, seemingly invisible teams, who clean the

:55:43. > :55:47.trains that night, refuel the planes, who resurface our roads in

:55:48. > :55:50.the small hours. The world's leading engineers delivering

:55:51. > :55:54.state-of-the-art projects like Crossrail, British skills making a

:55:55. > :55:59.real difference. I tell you, in the wake of Brexit, we are going to make

:56:00. > :56:02.your opportunities by taking those skills and winning business around

:56:03. > :56:14.the world off the back of what they are doing. But there is one group of

:56:15. > :56:19.people I particularly want to mention today, people visiting me in

:56:20. > :56:25.a conference today. Young apprentices, working on Crossrail,

:56:26. > :56:31.building trains for bombard EA, maintaining the coach network for

:56:32. > :56:35.National Express and helping repair elevated motorways. It's a great job

:56:36. > :56:39.and a great career working in transport. What you do impacts on

:56:40. > :56:44.millions of lives across our country. Can I ask you to say to all

:56:45. > :56:46.young people helping to build all of our futures, can we all just say one

:56:47. > :57:05.very big thank you? -- Bombardier. I want to send a message out to all

:57:06. > :57:08.young people thinking about their future careers, young people male

:57:09. > :57:12.and female, what are they going to be doing in years to come? Well,

:57:13. > :57:16.actually, in the future, those apprentices today will be able to

:57:17. > :57:20.look back and say to their children I build that station or that road or

:57:21. > :57:24.that train. I helped change my country. Ladies and gentlemen,

:57:25. > :57:27.transport is a great area to working and we need more of our young people

:57:28. > :57:39.to come and build their futures in it. So, ladies and gentlemen, I want

:57:40. > :57:44.a transport system that is fit for the future and which works for

:57:45. > :57:49.everyone. I want us to always work to put the traveller first. I want

:57:50. > :57:53.us to build the skills that secures that strong future and I want to use

:57:54. > :57:58.those skills around the world to build opportunity for Britain. As

:57:59. > :58:03.conservatives, in government, we are already making a difference but

:58:04. > :58:06.there is so much potential ahead of us. Ladies and gentlemen, this is a

:58:07. > :58:08.great country and together, we will make sure that every single one of

:58:09. > :00:31.us has a great future. Thank you. Ladies and gentlemen, we will

:00:32. > :00:37.shortly hear from the Chancellor, who will be responsible for steering

:00:38. > :00:41.the economy as we leave the EU, as well as showing the world that

:00:42. > :00:50.Britain is open for business. But I am not introducing him. Amanda

:00:51. > :00:55.Millings is. She delivered one of the results when she won Cannock

:00:56. > :01:01.Chase. What I am doing is introducing a short film. Enjoy.

:01:02. > :01:06.When did I know I was a Conservative, I guess it was

:01:07. > :01:15.something that was a dawning revelation from the age of 12

:01:16. > :01:19.onwards. The more I read, the more I realised I was a Conservative. The

:01:20. > :02:40.advice is do something first. Come to us later. Once you...

:02:41. > :02:50.Conference, as a new West Midlands MP, welcome to Birmingham.

:02:51. > :02:56.APPLAUSE I was born and brought up in Burton

:02:57. > :03:03.upon Trent. Here in the West Midlands. And last May, it was an

:03:04. > :03:06.absolute honour and privilege to be elected as the new Member of

:03:07. > :03:16.Parliament for Cannock Chase in the county where I grew up.

:03:17. > :03:21.APPLAUSE Just walk around Birmingham and you

:03:22. > :03:28.can't help but notice the changes that have happened over the last six

:03:29. > :03:33.years. I have also seen first-hand how my constituency has transformed,

:03:34. > :03:41.adapting to a changing industrial landscape. Once where there were

:03:42. > :03:45.mines there are new homes, industrial estates and business

:03:46. > :03:53.parks. Homes to a wide range of small and

:03:54. > :03:58.medium-sized businesses. My background is in business and now I

:03:59. > :04:04.make it my business to visit, support and stand up for local

:04:05. > :04:10.businesses. What never seizes to amaze me is what is made in Cannock

:04:11. > :04:13.Chase. Conference, please indulge me, let me talk about Cannock Chase

:04:14. > :04:23.for just a minute. These are just some of the things

:04:24. > :04:28.that we make; Digbit, as the name suggest, manufacture buckets and

:04:29. > :04:33.attachments for diggers. Tailor Made Systems, make the equipment to clean

:04:34. > :04:42.runway lights, used at airports across the globe. I recently visited

:04:43. > :04:48.SMB Pressings, who make drums used by percussion sections of orchestras

:04:49. > :04:51.all around the world. So what have the Conservatives in

:04:52. > :05:00.Government achieved in the last six years? We have created an economic

:05:01. > :05:05.environment where businesses such as these can succeed and flourish.

:05:06. > :05:12.Creating new jobs and new opportunities for all.

:05:13. > :05:20.Since 2010, unemployment in Cannock Chase has fallen by around 70%.

:05:21. > :05:29.And more jobs have been created day by day.

:05:30. > :05:36.Conference, last week alone, I am delighted to announce that Amazon

:05:37. > :05:42.have created 4,500 new jobs at their fulfilment centre and the green

:05:43. > :05:48.light has been given to the new Milgreen designer outlet village in

:05:49. > :05:54.can knock. It will create over 1,000 new jobs.

:05:55. > :06:00.These examples are evidence that there's confidence in our economy.

:06:01. > :06:03.And confidence in what this Conservative Government has

:06:04. > :06:10.achieved. My constituency of Cannock Chase has

:06:11. > :06:19.truly benefitted from a Conservative Government and a Conservative

:06:20. > :06:24.Chancellor of the Exchequer. So, I have a business back ground. I am

:06:25. > :06:29.pro-business, I am pro-enterprise, but not at any cost.

:06:30. > :06:33.The banking collapse affected us all.

:06:34. > :06:38.What was I doing then? I was speaking up for people who'd lost

:06:39. > :06:44.their trust in the banks. Now, as a member of the Select Committee that

:06:45. > :06:51.has held inquiries on the working practises at Sports Direct and the

:06:52. > :06:55.tragic collapse of BHS, I have seen the consequences of irresponsible

:06:56. > :06:58.business practises and these inquiries have held people to

:06:59. > :07:01.account. We need a strong Business

:07:02. > :07:07.Secretarior to ensure a strong economy.

:07:08. > :07:12.And in my case, a buoyant local economy in Cannock Chase.

:07:13. > :07:17.Conference, I am not the first, and I won't be the last this week to say

:07:18. > :07:30.that we need to build an economy that works for everyone.

:07:31. > :07:36.APPLAUSE And so, ladies and gentlemen, I was

:07:37. > :07:42.thrilled to be asked to introduce to you today the Chancellor, who will

:07:43. > :07:49.build our economy, that works for everyone, where we maintain economic

:07:50. > :07:53.confidence and will steer our great country through challenging times.

:07:54. > :08:00.He has been the Secretary of State for Transport. He's been Secretary

:08:01. > :08:05.of State for defence. And until recently, the Foreign Secretary. And

:08:06. > :08:12.now we need this experience in number 11. Conference, let me

:08:13. > :08:18.introduce to you the Chancellor of the Exchequer, The Right Honourable

:08:19. > :08:41.Phillip Hammnond, MP. Thank you Amanda. It is a pleasure

:08:42. > :08:46.to be introduced by one of the stars of the 2015 intake.

:08:47. > :08:51.Amanda, you held off a ferocious pincher movement in Cannock Chase by

:08:52. > :08:56.Labour from one side and Ukip the other. Your result was one of the

:08:57. > :08:59.highlights oh that night last May and we congratulate you on a

:09:00. > :09:08.fantastic achievement. APPLAUSE

:09:09. > :09:11.It is great to be back here in Birmingham and a privilege to

:09:12. > :09:15.address this conference as Chancellor of the Exchequer.

:09:16. > :09:20.And I don't think I'm giving away any state secrets in admitting that

:09:21. > :09:25.I just might have hoped to have been a Treasury Minister a little bit

:09:26. > :09:30.earlier in my political career. In fact, having been Shadow Chief

:09:31. > :09:37.Secretary for three years, up until the 2010 general election, I rather

:09:38. > :09:41.suspect that that infamous note by Liam Bryn, you remember the one,

:09:42. > :09:48.dear Chief Secretary, I am afraid there is no money. I rather suspect

:09:49. > :09:52.that note was intended to me, but it went to David Laws, who published it

:09:53. > :09:58.and now I read is trying to get it back. It became what maybe the

:09:59. > :10:06.shortest political suicide note in history.

:10:07. > :10:11.Liam, your message to your successor was an admission of Labour's abject

:10:12. > :10:20.failure. APPLAUSE Zillion

:10:21. > :10:26.My dedes is sore did not leave me a note. If he had, here is what it

:10:27. > :10:32.would have said, "Dear Chancellor, employment is up. Wages are rising.

:10:33. > :10:38.The deficit is down and income tax has been cut for tens of millions of

:10:39. > :10:40.people. That is the Conservative record, that is the difference a

:10:41. > :10:59.Conservative leader makes. APPLAUSE

:11:00. > :11:10.Anyway I got to the Treasury in the end. David Gawk as Chief Secretary,

:11:11. > :11:16.Jane Ellison, Jason Kirby, all of them ably supported by our Commons

:11:17. > :11:26.whip and PPSs. So, please give them a big round of applause.

:11:27. > :11:29.APPLAUSE Actually I even went down to the

:11:30. > :11:35.Bank of England last week to check on the gold reserves - what is left

:11:36. > :11:41.of them. Because you remember Gordon Brown sold half of them off at the

:11:42. > :11:45.bottom of the market, losing British taxpayers a staggering ?7 billion in

:11:46. > :11:51.the process. Another example of Labour's failure. We last met in

:11:52. > :11:58.this hall two years ago, on the eve of the fight of our political lives.

:11:59. > :12:03.A fight between two very different visions of the future.

:12:04. > :12:08.Our Conservative vision of a Britain moving forward, with a strong

:12:09. > :12:13.economy, supporting strong public services and Labour's offer of a

:12:14. > :12:18.Britain going back to the bad old days of tax, spend and waste.

:12:19. > :12:23.And it is a credit to your hard work and the good sense of the British

:12:24. > :12:27.people that we won that fight. And we should not forget the debt

:12:28. > :12:33.that this party owes to the man who led us out of opposition and into

:12:34. > :12:37.collision and then on to form the first Conservative Government in 18

:12:38. > :12:40.years, our former leader and Prime Minister, David Cameron.

:12:41. > :13:02.APPLAUSE But today, my friends, we meet on

:13:03. > :13:07.the eve of a different challenge. No less daunting, no less crucial to

:13:08. > :13:12.the future of our country. That vote on 23rd June, the first of

:13:13. > :13:19.its kind anywhere in Europe, was a defining moment, not just of this

:13:20. > :13:23.Parliament, but of this generation. The moment when the British people

:13:24. > :13:26.decided to change direction and map out a new path for our country's

:13:27. > :13:33.future. Whichever side of the argument we

:13:34. > :13:36.were on, we shouldn't forget this, only one mainstream political party

:13:37. > :13:41.was prepared to give the British people their say.

:13:42. > :13:51.Only one party delivered that referendum and only one party

:13:52. > :14:00.unhesitatingly accepted the result - this great party, the Conservative

:14:01. > :14:04.Party. That result in June gave clear voice

:14:05. > :14:11.to a desire by the British people for an end to political union and

:14:12. > :14:16.the restoration of control. Control - that key word. Control

:14:17. > :14:19.over the rules and regulations that govern their lives. Control over who

:14:20. > :14:23.can Louvre and work in their country.

:14:24. > :14:27.And control over how their money is spent.

:14:28. > :14:34.And I can reassure the British people of this - that message has

:14:35. > :14:39.been received loud and clear. No ifs, no buts, no second referendums.

:14:40. > :14:49.We are leaving the European Union. APPLAUSE

:14:50. > :14:56.But it is equally clear to me that the British people did not vote on

:14:57. > :15:02.June the 23rd to become poorer or less secure, so our task is clear.

:15:03. > :15:06.Repatriate our sovereignty, control our borders and seize the

:15:07. > :15:10.opportunities that the wider world has to offer but do all of this

:15:11. > :15:15.while protecting our economy, our jobs and our living standards. Now,

:15:16. > :15:21.the message may be simple but I can assure you the process will be

:15:22. > :15:28.complex. Successful negotiation with the EU 27 will demand patients,

:15:29. > :15:33.experience, meticulous planning and steely resolution. And I know of no

:15:34. > :15:37.one better equipped to guide us through these negotiations fell our

:15:38. > :15:54.brilliant new Prime Minister, Theresa May.

:15:55. > :16:00.We should approach these negotiations with self-confidence.

:16:01. > :16:06.Our economy is the fifth largest in the world. Our nation is built upon

:16:07. > :16:11.a history of global trade. Our people are responsible for some of

:16:12. > :16:16.the most significant inventions and discoveries of history. So no one

:16:17. > :16:19.should be in any doubt that we have the skills, the ingenuity and the

:16:20. > :16:27.determination to make a success of Brexit. Starting from a position of

:16:28. > :16:34.strength and thanks in no small part of the actions of my predecessor, we

:16:35. > :16:40.enter these negotiations with an economy that is fundamentally

:16:41. > :16:46.robust. It is easy to forget six years on the scale of the legacy of

:16:47. > :16:50.Labour's great recession that we inherited in 2010. Turmoil in the

:16:51. > :16:56.markets, a banking system still reeling from the crisis, a deficit

:16:57. > :17:02.of more than 10% of GDP, the highest in our peacetime history. An economy

:17:03. > :17:06.on the brink. And it was the decisions that George Osborne Turk

:17:07. > :17:12.in those early days that pulled us back from the precipice and set us

:17:13. > :17:24.on a course to recovery. The tough early choices... APPLAUSE. Those

:17:25. > :17:30.tough early choices and the doggedness in sticking with them

:17:31. > :17:34.delivered that intangible but indispensable dichotomy,

:17:35. > :17:39.credibility. Credibility in the markets which secured record low

:17:40. > :17:44.borrowing costs and credibility with business, securing the investment

:17:45. > :17:51.that supported our recovery. And the results are clear for all of us to

:17:52. > :17:55.see. 2.7 million people more in work today under a Conservative

:17:56. > :18:00.government than in 2010 under Labour. Did we hear that achievement

:18:01. > :18:06.being lauded in Liverpool last week? Of course not. Because Corbin's

:18:07. > :18:10.Labour Party has abandoned the agenda of working people. Deserting

:18:11. > :18:15.the middle ground of British politics in favour of the socialist

:18:16. > :18:20.ideology of the Metropolitan left-wing elite. Leaving us, the

:18:21. > :18:32.Conservatives, as the true party of British working people.

:18:33. > :18:41.Of course, for much of his time as Chancellor, George Osborne faced Ed

:18:42. > :18:45.balls across the dispatch box. Remember Ed balls? Yeah, I know you

:18:46. > :18:50.remember him from Saturday night. I'm asking if you remember him from

:18:51. > :18:56.his more minor role as Shadow Chancellor. -- Balls. By the way,

:18:57. > :18:59.you know Ed wasn't their first choice for strictly. There are going

:19:00. > :19:01.to ask Jeremy Corbyn to do it but someone told him that he had two

:19:02. > :19:17.left feet. I watched Ed on Saturday night and I

:19:18. > :19:21.don't want to sound like Craig Revel Horwood but I think is Charleston is

:19:22. > :19:25.probably better than his economic analysis. Because he told us back

:19:26. > :19:31.then that our policies would push the economy into recession. But he

:19:32. > :19:39.was wrong. Since 2010, Britain has grown faster than any other economy

:19:40. > :19:44.in the G7. He said we would never replace lost public-sector jobs with

:19:45. > :19:49.new private-sector jobs we did. Not one for one but 741. And that is not

:19:50. > :19:54.all. We got our deficit down by nearly two thirds. We cut the

:19:55. > :19:58.welfare bill. We've kept mortgage rates low, protecting millions of

:19:59. > :20:02.homeowners during difficult times. We've cut income tax for 30 million

:20:03. > :20:06.people and taken 4 million low-paid workers out of income tax

:20:07. > :20:10.altogether. I say not bad for an economy that looked out for the

:20:11. > :20:13.count only took it over in 2010 and a record of which this party can be

:20:14. > :20:31.justly proud. But we cannot rest on our laurels.

:20:32. > :20:36.We must look to the future, to the economic challenges ahead. Let's

:20:37. > :20:43.start with the immediate challenge. The markets have calmed since the

:20:44. > :20:49.referendum vote. Many of the recent date have been better than expected.

:20:50. > :20:55.That is the clearest demonstration of the underlying strength of our

:20:56. > :20:59.economy. But there is no room for complacency. Many businesses which

:21:00. > :21:05.trade with the EU are uncertain about what lies ahead. They have

:21:06. > :21:09.understandable questions about the process of the negotiations, about

:21:10. > :21:13.the deal that will be done, about the changes they will have to make

:21:14. > :21:19.to adapt to the post Brexit world and about what it will all mean for

:21:20. > :21:24.their employees, their company, their business model. And I

:21:25. > :21:31.understand their concerns. Business, after all, hates uncertainty. But

:21:32. > :21:35.let me repeat the Pledge of the Prime Minister yesterday. As we

:21:36. > :21:40.negotiate our exit from the EU, and our future relationship with it,

:21:41. > :21:45.this government will fight for the best possible deal for British

:21:46. > :21:49.business and British workers, the best possible access to European

:21:50. > :21:55.markets for our manufacturing and services industries and the best

:21:56. > :21:58.possible freedoms for our entrepreneurs and our global

:21:59. > :22:04.exporters. Ensuring Britain after Brexit will remain one of the best

:22:05. > :22:17.places in the world for a business to invest, to innovate and to grow.

:22:18. > :22:23.The independent Bank of England successfully cut interest rates to

:22:24. > :22:27.restore confidence in the wake of the vote. But as the economy

:22:28. > :22:34.responds over the coming months, fiscal policy may also have a role

:22:35. > :22:38.to play, so let me be clear, throughout the negotiating process,

:22:39. > :22:43.we are ready to take whatever steps are necessary to protect this

:22:44. > :22:48.economy from turbulence and when the process is over, we are ready to

:22:49. > :22:53.provide support to British businesses as they adjust to life

:22:54. > :23:05.outside the EU. Because Brexit does mean Brexit and we are going to make

:23:06. > :23:09.a success of it. And in the meantime, I can offer some

:23:10. > :23:12.additional certainty to British business and other organisations

:23:13. > :23:17.bidding to receive EU funding while we are still a member. I have

:23:18. > :23:23.already guaranteed the funding for projects signed prior to this year's

:23:24. > :23:27.Autumn Statement. Today, I can go further. The Treasury will offer a

:23:28. > :23:33.guarantee to bidders whose projects meet UK priorities and value for

:23:34. > :23:38.money criteria, that if they secure multiyear EU funding before we exit,

:23:39. > :23:42.we will guarantee those payments after Britain has left the EU,

:23:43. > :23:53.protecting British jobs and businesses after Brexit. APPLAUSE.

:23:54. > :23:59.As Conservatives, we know, of course, that no one owes us a

:24:00. > :24:05.living, that the country has to live within its means. If fundamental

:24:06. > :24:10.part of maintaining our global competitiveness is getting our

:24:11. > :24:15.public finances back in order. We should, of course, be proud of our

:24:16. > :24:23.achievements in fiscal consolidation but the work that we began in 2010

:24:24. > :24:27.is not finished. The deficit remains unsustainable and the decision to

:24:28. > :24:35.leave the EU has introduced new fiscal uncertainty. Last year, the

:24:36. > :24:41.government borrowed ?1 in every ?10 we spent. And piling up debt for our

:24:42. > :24:48.children and our grandchildren is not only unsustainable, it's unfair

:24:49. > :24:52.and more, it is downright unconservative. The British people

:24:53. > :24:57.elected us on a promise to restore fiscal discipline and that is

:24:58. > :25:03.exactly what we are going to do. But we will do it in a pragmatic way, in

:25:04. > :25:07.a way that reflects the new circumstances we face. The fiscal

:25:08. > :25:12.policies that George Osborne set out with the right ones for that time

:25:13. > :25:18.but when times change, we must change with them. So we will no

:25:19. > :25:24.longer target a surplus at the end of this Parliament. But make no

:25:25. > :25:30.mistake, the task of fiscal consolidation must continue. And it

:25:31. > :25:35.must happen within the context of a clear, credit call fiscal framework

:25:36. > :25:38.that will control day-to-day public expenditure, deliver value for money

:25:39. > :25:46.and get Britain back living within our means. At the Autumn Statement

:25:47. > :25:50.in November, I will set out our plan to deliver long-term fiscal

:25:51. > :25:55.sustainability while responding to the consequences of short-term

:25:56. > :26:01.uncertainty and recognising the need for investment to build an economy

:26:02. > :26:07.that works for everyone. A new plan for the new circumstances Britain

:26:08. > :26:10.faces. A Conservative government demonstrating the flexibility of

:26:11. > :26:14.common sense and the pragmatism that has made our party the most

:26:15. > :26:28.successful political party in British history.

:26:29. > :26:33.Contrast this balanced responsible reproach -- approach, with the

:26:34. > :26:38.shambles of labour in Liverpool last week. In denial about their record

:26:39. > :26:45.in office, deluded about the state of the public finances today. Not

:26:46. > :26:50.once did Jeremy Corbyn apologise for the mess that Labour left behind.

:26:51. > :26:54.Other country, his Shadow secretary says their mistake was not to have

:26:55. > :27:00.spent more. If you think their past record is bad, let's look at their

:27:01. > :27:13.plans for Britain's future. Jeremy Corbyn's big idea is to spend an

:27:14. > :27:19.extra ?500 million. I just hope he remembers when he goes to bed at

:27:20. > :27:24.night to water the magic money tree. Now, look, we can speculate as to

:27:25. > :27:27.how Labour will pay for a spending splurge on the scale but

:27:28. > :27:31.fortunately, we don't have too because we have the answer from

:27:32. > :27:36.Labour's last Shadow Chancellor, Chris Leslie. This is what he said

:27:37. > :27:42.last week about how Labour would fund Jeremy Corbyn's plan. He would

:27:43. > :27:46.have two double income tax. He would have two double national insurers.

:27:47. > :27:52.He would have to double council tax. And you'd have two double VAT as

:27:53. > :27:57.well. So there we have it, from the mouth of one of their own, Labour

:27:58. > :28:12.condemned as totally unfit to govern this country.

:28:13. > :28:18.With nothing to offer the hard-working people of Britain and

:28:19. > :28:25.always, it would be the poorest and most vulnerable who would pay the

:28:26. > :28:31.biggest price. So, my friends, we in this party have a great and solemn

:28:32. > :28:35.responsibility because we alone carry the burden of ensuring that

:28:36. > :28:43.Labour can never again wrecked the British economy. Conservative

:28:44. > :28:48.commitment is to build a country and an economy that works for everyone,

:28:49. > :28:53.to raise our living standards and grow our national wealth, not just

:28:54. > :28:59.for today but for future generations, too. We know how to do

:29:00. > :29:06.that. We have proved it time and time again. Cleaning up Labour's

:29:07. > :29:11.mess. We will do it by making the British economy the most outward

:29:12. > :29:17.looking, most dynamic, most competitive, high wage, low tax

:29:18. > :29:22.economy in the world. We do it by making sure that after our EU exit,

:29:23. > :29:27.we continued to attract the brightest and best, highest skilled

:29:28. > :29:31.and most dynamic entrepreneurs, scientists, engineers and managers

:29:32. > :29:34.from around the world, building a strong and vibrant economy as the

:29:35. > :29:40.bedrock of our strong and vibrant society. A Conservative vision of

:29:41. > :29:46.the future of Britain. And I tell you this, it is 1 million miles away

:29:47. > :29:53.from the Lala land Labour was describing in Liverpool last week.

:29:54. > :29:59.To deliver that economy requires long-term sustainable growth and

:30:00. > :30:03.long-term sustainable growth requires us to raise our national

:30:04. > :30:10.productivity. Look, before you switch off, I know that productivity

:30:11. > :30:16.doesn't necessarily set political pulses racing, but bear with me

:30:17. > :30:19.while I convince you it should how about this - you probably know our

:30:20. > :30:24.national productivity is lower than that of the US and Germany.

:30:25. > :30:32.Perhaps you even feel somewhat resigned to that fact. But did you

:30:33. > :30:35.know it is lower than France and Italy too? Had you made the

:30:36. > :30:41.connection about what that means in the real world? Because what it

:30:42. > :30:45.means is that millions of British workers are working longer hours for

:30:46. > :30:50.lower pay than their counterparts in Europe and the US. That has to

:30:51. > :30:59.change if we're going to build an economy which works for everyone. If

:31:00. > :31:03.we raise our productivity by just 1%, 1% every year, within a

:31:04. > :31:08.secretary kid we would add ?250 billion to the size of our economy.

:31:09. > :31:14.That's 9,000 for every household in Britain.

:31:15. > :31:20.So productivity should set political pulses raising. It is a decade's old

:31:21. > :31:23.problem swept under the carpet for too long.

:31:24. > :31:28.But under this Government, we are going to put it in the spotlight,

:31:29. > :31:33.right at the forefront of our policy agenda and at the heart of our

:31:34. > :31:38.industrial strategy. We know where to start, our

:31:39. > :31:46.productivity performance in this country is grossly uneven. Still too

:31:47. > :31:51.reliant on a few key sectors. Still too focussed on London and the south

:31:52. > :31:56.east. The good news is we know how to do productivity. Parts of London

:31:57. > :32:00.have the highest productivity in Europe T bad news is that the

:32:01. > :32:06.productivity gap between our capital, second, third and fourth

:32:07. > :32:11.cities is greater than any other major economy in world and closing

:32:12. > :32:17.that gap will be key to Britain's future outside the EU. That is why

:32:18. > :32:20.we're doing regional devolution deals and why tackling those

:32:21. > :32:24.regional differences will be one of the key drivers for the industrial

:32:25. > :32:29.strategy that Greg Clark is developing now. And then there's the

:32:30. > :32:37.skills challenge. We've made huge progress over the last six years.

:32:38. > :32:42.How many people in this room ten years ago would have believed that

:32:43. > :32:47.in every year since 2014 maths would be the most popular A level subject

:32:48. > :32:51.in English schools, but it was. What a tribute that is to

:32:52. > :33:02.Conservative education reforms. APPLAUSE

:33:03. > :33:06.But despite that progress, there is still a huge gap between our skills

:33:07. > :33:10.base and that of our key competitors. It is holding people

:33:11. > :33:15.back from achieving their full potential and it is holding our

:33:16. > :33:23.nation back in the global race. And there's more. Our stock of

:33:24. > :33:28.public infrastructure, our roads, railways, flood defences, languishes

:33:29. > :33:31.near the bottom of the develop league table after decades of

:33:32. > :33:37.underinvestment and our businesses too are not investing enough. All of

:33:38. > :33:43.this must change to build an economy that works for everyone.

:33:44. > :33:49.We need to close that gap with careful targeted public investment

:33:50. > :33:54.in high value infrastructure and encouragement of more private

:33:55. > :33:58.investment in British enterprises. If we see growth distributed more

:33:59. > :34:02.evenly across the regions and sectors of our economy and more

:34:03. > :34:06.fairly between the generations, there's another big challenge that

:34:07. > :34:11.needs to be tackled. The unaffordability of housing.

:34:12. > :34:15.Because, despite the action we've taken, fewer and fewer young people

:34:16. > :34:21.are able to afford to get their foot on the first rung of the housing

:34:22. > :34:25.ladder and buy their own home. Quite simply, we're not building

:34:26. > :34:30.enough new homes. This is a long-term challenge, but

:34:31. > :34:36.there are short-term measures we can take and the package that has been

:34:37. > :34:42.announced earlier, for ?3 billion home builder's fund. ?2 billion for

:34:43. > :34:45.new investment on public land is a clear demonstration of this

:34:46. > :34:51.Government's determination to tackle this challenge using all the tools

:34:52. > :34:56.at our disposal. Because making housing more

:34:57. > :34:59.affordable will be a vital part of building a country that works for

:35:00. > :35:03.everyone. And this Government is determined

:35:04. > :35:09.that the dream of homeownership should be for the many, not for the

:35:10. > :35:16.few. Ensuring that we have world-class I

:35:17. > :35:19.from structure is vital to maintaining our competitiveness. It

:35:20. > :35:24.is a very long-term agenda, one that can be and often has been, knocked

:35:25. > :35:30.off course by short-term political considerations.

:35:31. > :35:35.That's why we announced the national infrastructure commission, to design

:35:36. > :35:38.independently the nation's long-term infrastructure needs, to prioritise

:35:39. > :35:45.and plan, to test value for money, to ensure that every penny spent on

:35:46. > :35:49.infrastructure is properly targeted to deliver maximum benefit and today

:35:50. > :35:55.I recommit to putting the commission at the very heart of our plans to

:35:56. > :36:01.renew and expand Britain's infrastructure, making sure that it

:36:02. > :36:04.is long-term economics, not short-term politics, that drive

:36:05. > :36:09.Britain's vital infrastructure investment.

:36:10. > :36:14.Part of Britain's productivity transformation will come of course

:36:15. > :36:19.from innovation. But the new disruptive technologies

:36:20. > :36:24.which are right now making their way from university labs and company R

:36:25. > :36:29.and D facilities into early stage production offer Britain a much

:36:30. > :36:35.bigger prize than incremental productivity improvements. Because

:36:36. > :36:40.at the cutting edge of many of these new technologies, the UK is becoming

:36:41. > :36:44.a world leader once again. Not just in the science, but in the

:36:45. > :36:50.application of it. And in the innovation that follows.

:36:51. > :36:54.Over the last few years, unnoticed by most of us, entrepreneurs and

:36:55. > :36:59.scientists from home and abroad have been turning Britain into a hub of

:37:00. > :37:03.tech innovation. And global businesses have followed,

:37:04. > :37:08.hungry for the inventions and innovations they are generating.

:37:09. > :37:19.Developing technologies that will change fundamentally the way we work

:37:20. > :37:25.and the way that we live. Driverless cars, artificial intelligence, 3D

:37:26. > :37:30.printing, virtual reality, advanced robotics. I had no idea until a few

:37:31. > :37:41.weeks ago just how much I don't know and I had even less idea how much I

:37:42. > :37:46.still wouldn't be able to understand even once some clever people had

:37:47. > :37:50.explained it to me. This is our future and our children's future. A

:37:51. > :37:59.new world which would have sounded like science fiction a few years ago

:38:00. > :38:02.but is now a reality taking shape in laboratoriries, incubators across

:38:03. > :38:05.Britain. There is a once in a generation opportunity for Britain

:38:06. > :38:12.to cement its role as a leader in tech innovation.

:38:13. > :38:16.And my ambition is clear - I want to see what is invented here, developed

:38:17. > :38:20.here. I want to see what is developed here, produced here.

:38:21. > :38:25.I want to see jobs. I want to see profits. And yes, I want to see tax

:38:26. > :38:38.receives, here in Britain. APPLAUSE

:38:39. > :38:43.I want to see the fruit of British genous being harvested here in

:38:44. > :38:47.Britain as we move into a fourth Industrial Revolution, creating

:38:48. > :38:51.jobs, wealth and success to future-proof our economy post

:38:52. > :38:56.Brexit. We are well placed to do it. More competitive than ever. Up to

:38:57. > :39:01.seventh place in the world league table last year, from 10th the year

:39:02. > :39:08.before. We have world leading universities and research

:39:09. > :39:12.institutes. A trusted legal system. The English language - our secret

:39:13. > :39:19.and unfair advantage. And vibrant markets. At 20%, we have

:39:20. > :39:23.one of the world's most competitive corporation tax rates. As it falls

:39:24. > :39:27.to 17% by the end of this Parliament, it will be more

:39:28. > :39:31.attractive still. Of course this explosion of

:39:32. > :39:35.creativity and innovation I have talked about has not happened solely

:39:36. > :39:39.or mainly because of Government policy. But it could easily be

:39:40. > :39:43.snuffed out by the wrong Government policy.

:39:44. > :39:46.So, we must carefully maintain the conditions that have brought this

:39:47. > :39:51.activity to Britain in the first place.

:39:52. > :39:56.Including the ability to attract the brightest and the best to work here

:39:57. > :39:59.in our high tech industries. And where we see that there are

:40:00. > :40:06.Government interventions that work, we should be prepared to make them.

:40:07. > :40:11.So, today I can announce another ?220 million of support to tech

:40:12. > :40:19.innovation, spread across two initiatives. ?100 million to extend

:40:20. > :40:24.the biomedical catalyst fund, which takes revolutionary science from the

:40:25. > :40:27.lab and transformed it into deliverable health care

:40:28. > :40:32.interventions and a further ?120 million to nurture the tech transfer

:40:33. > :40:35.offices that put universities and entrepreneurs together to get that

:40:36. > :40:40.science out of the lab and into the factory. That is a Conservative

:40:41. > :40:50.Government investing in Britain's future.

:40:51. > :41:00.APPLAUSE I have made my argument that we will not overcome Britain's

:41:01. > :41:03.productivity challenge unless we tackle the serious inequalities in

:41:04. > :41:07.performance between cities and regions. That is an economic

:41:08. > :41:12.analysis. This is about politics too. Because one of the key messages

:41:13. > :41:17.of the referendum campaign was that large parts of our country feel left

:41:18. > :41:22.behind. They see the country getting richer, but they don't feel part of

:41:23. > :41:25.that success. A dangerous divide is opening up

:41:26. > :41:29.between those who belief they have a stake in the economy and those who

:41:30. > :41:33.do not. And it is one of the central

:41:34. > :41:36.missions of this Government to tackle that divide.

:41:37. > :41:41.To see the benefits of economic growth shared more evenly across the

:41:42. > :41:48.regions and across the generations. A key part of this agenda is

:41:49. > :41:54.harnessing the economic power of our cities. The northern powerhouse

:41:55. > :41:58.project takes a visionary approach, linking the great cities of the

:41:59. > :42:03.north into a coherent economic entity. An interconnected region

:42:04. > :42:08.that raises productivity and delivers growth by making it easier

:42:09. > :42:10.and cheaper for firms and individuals to move goods, people

:42:11. > :42:15.and ideas. And I want to pledge to you today

:42:16. > :42:20.that the Treasury, under my leadership, will continue to drive

:42:21. > :42:25.the northern powerhouse project, working in partnership with local

:42:26. > :42:31.leaders to see it deliver its potential for people in the north.

:42:32. > :42:35.But I also want to tell you that our ambition is not limited to the

:42:36. > :42:39.northern powerhouse. We want to create the conditions for success in

:42:40. > :42:43.the north, the south and everywhere in between. There's nowhere more

:42:44. > :42:48.rightly to benefit from a similar approach than the Midlands.

:42:49. > :42:56.The Midlands engine, with its hub here in Birmingham.

:42:57. > :43:00.Powers 11.7 million lives. Generates ?220 billion for our economy.

:43:01. > :43:07.Produces 18% of UK goods exports and more than one-fifth of our total

:43:08. > :43:11.manufacturing output. In this great region, there are 320,000 more

:43:12. > :43:15.people in work than there were in 2010.

:43:16. > :43:18.But both productivity and economic growth have lagged behind the UK

:43:19. > :43:23.average. So we have developed our long-term

:43:24. > :43:28.economic plan for the Midlands. And it is already delivering. But we can

:43:29. > :43:32.and we will do more. We're working the West Midlands

:43:33. > :43:36.combined authority on a second devolution deal to include more

:43:37. > :43:43.powers on transport, criminal justice, data, planning and skills.

:43:44. > :43:46.And with Andy Street, our fantastic mayoral candidate for the West

:43:47. > :43:51.Midlands now in place, a great future is within the region's grasp.

:43:52. > :43:55.At the very least I can promise you this, this region will never be

:43:56. > :44:07.knowingly undersold. APPLAUSE

:44:08. > :44:15.The northern powerhouse, the Midlands engine - two great projects

:44:16. > :44:20.that can be emulated across Britain. Indeed, I suspect the limiting

:44:21. > :44:25.factor may only be our ability to think up snappy titles for new

:44:26. > :44:30.regional projects. Be assured we have past a tipping point in

:44:31. > :44:36.devolution in this country, a decisive and irreversible shift in

:44:37. > :44:37.the economic and mittal powerball lance and Britain's economy will be

:44:38. > :44:53.the bigger and the better for it. Our party trusted the people but the

:44:54. > :44:58.nation's future in a referendum and now they trust our party to deliver

:44:59. > :45:05.on their decision. We will not let them down. We are going to leave the

:45:06. > :45:09.European Union, to repatriate our laws, to assert the supremacy of our

:45:10. > :45:15.courts, to control our borders. But we are not going to turn our backs

:45:16. > :45:21.on the nations of Europe. Let us resolve that as we leave their

:45:22. > :45:25.union, we will remain the best of neighbours, the closest of trade

:45:26. > :45:29.associates, the strongest of security partners. But our economic

:45:30. > :45:38.future must not be defined by Brexit alone. As we tread that path to

:45:39. > :45:43.becoming an independent, sovereign country once again, and forge a new

:45:44. > :45:47.and exciting role for our nation in the world, let us resolve to tackle

:45:48. > :45:55.the challenges we face at home, with renewed vigour, dealing with a

:45:56. > :45:58.deficit, raising our productivity, rebalancing our economy, rebuilding

:45:59. > :46:05.our infrastructure. And ensuring that everyone in every part of our

:46:06. > :46:11.country can contribute to and benefit from the growth that

:46:12. > :46:16.follows. Paying our way in the world, standing tall amongst our

:46:17. > :46:21.competitors, attracting the brightest and the burst to deliver

:46:22. > :46:26.the vibrant, successful economy that will mean when future generations

:46:27. > :46:34.look back on our decision in 2016, they will see not the end of an era

:46:35. > :46:42.but the beginning of a new age. Not a country turning inward but a

:46:43. > :46:45.nation reaching out, decisively, confidently, to grasp new

:46:46. > :46:59.opportunities, a bigger, better, greater Britain. Truly a country

:47:00. > :47:03.that works for everyone. Thank you. APPLAUSE Full