:00:12. > :00:19.Good morning and thank you for coming this morning. From the UK's
:00:20. > :00:24.economy has been built brought back from the brink. It was borrowing a
:00:25. > :00:28.pound of every ?4 spent, we had a deficit as a percentage of GDP of
:00:29. > :00:33.10%, higher than in Spain, higher than Portugal. We were in the danger
:00:34. > :00:38.zone. Through these strong and stable leadership of a Conservative
:00:39. > :00:42.government and thanks to the hard work and determination of the
:00:43. > :00:48.British people, our economic fortunes today are greatly improved.
:00:49. > :00:53.The deficit has been cut by almost three quarters, to a level not seen
:00:54. > :01:00.since before Labour's great recession. Last year the UK economy
:01:01. > :01:03.grew at one of the fastest rates of any major advanced nation, faster
:01:04. > :01:09.than the United States, Canada, France, Italy and Japan. And today
:01:10. > :01:14.the number of people benefiting from the security and dignity of the job
:01:15. > :01:19.-- a job is up by 2.8 million since Labour were in power. Employment is
:01:20. > :01:24.now at a higher rate than we have seen in Britain since the 1970s.
:01:25. > :01:28.Everyone in our country can be proud of the progress that we have made
:01:29. > :01:36.together, and everyone in our country benefits from it. But no one
:01:37. > :01:39.should be in any doubt that economic risk and uncertainty remains. All
:01:40. > :01:43.the progress we've made over the last seven years could easily be
:01:44. > :01:50.lost if we take a wrong turn now. The stakes could not be higher.
:01:51. > :01:54.While the deficit has been reduced, it still remains too high. Although
:01:55. > :01:59.we are in a much stronger position than we were in 2010, we are still
:02:00. > :02:05.dealing with the consequences of Labour's recession. We have a
:02:06. > :02:10.national debt of over ?1.7 trillion, almost ?64,000 for every household
:02:11. > :02:16.in Britain. Each year we are spending ?50 billion on debt
:02:17. > :02:22.interest, more than we spend on defence and policing combined. Money
:02:23. > :02:28.which could be going to public services or reductions in personal
:02:29. > :02:33.taxation is instead being spent on servicing Labour's debt. The only
:02:34. > :02:36.reliable way to get debt falling and to keep our country on track to a
:02:37. > :02:44.have done, reducing the deficit so have done, reducing the deficit so
:02:45. > :02:48.that we live within our means. Jeremy Corbyn has made clear that he
:02:49. > :02:55.takes a different view. He says we should not be afraid of debt or
:02:56. > :02:58.borrowing. That is exactly the attitude that got Britain into such
:02:59. > :03:06.extreme economic difficulty in the first place. It is why, at this
:03:07. > :03:10.election, the economic credibility of the political parties should be
:03:11. > :03:15.put to the test. We will set out our tax and spending
:03:16. > :03:21.plans in our manifesto. The Prime Minister has made it clear that she
:03:22. > :03:24.will make no commitment on spending and taxation that she is not sure
:03:25. > :03:28.she can deliver. That is the she can deliver. That is the
:03:29. > :03:34.yardstick of responsibility by which all parties should be judged, and by
:03:35. > :03:39.that yardstick it is clear that Jeremy Corbyn has failed the test.
:03:40. > :03:46.As the document we are publishing this morning shows, his economic
:03:47. > :03:50.policies are a recipe for chaos, instability, uncertainty and
:03:51. > :03:56.insecurity. Britain simply cannot take the risk of Jeremy Corbyn in
:03:57. > :04:03.Downing Street, unleashing economic chaos on the country. Just when we
:04:04. > :04:07.need strong and stable leadership for our economy and our country over
:04:08. > :04:12.the crucial next five years, as we negotiate our exit from the EU and
:04:13. > :04:16.chart a new course in the years beyond, Jeremy Corbyn offers a
:04:17. > :04:22.chaotic and high risk gamble that would lead to higher taxes, more
:04:23. > :04:28.borrowing and more debt. It's a gamble for which we would all pay a
:04:29. > :04:32.price, and that choice must be uppermost in people's minds when
:04:33. > :04:34.they cast their votes on the 8th of June. Now I will hand over to David,
:04:35. > :04:40.to set out some of the specific to set out some of the specific
:04:41. > :04:45.spending pledges, underfunded pledges Labour have made.
:04:46. > :04:48.Since he became leader of the Labour Party Jeremy Corbyn and his team and
:04:49. > :04:53.shadow ministers have made some very clear spending commitments to
:04:54. > :04:58.voters. They are pursuing a series of populist measures, together with
:04:59. > :05:01.their to face up to all the decision difficult decision to get the
:05:02. > :05:05.deficit under control and get our economy back to health mean they
:05:06. > :05:10.have built up a huge scorecard of spending commitments. As usual with
:05:11. > :05:14.Labour, every taxpayer in this country would have to pay the price.
:05:15. > :05:18.Time and again Mr Corbyn has asked us to judge him on substance and
:05:19. > :05:25.policy. So that's exactly what we've done in this analysis today. Putting
:05:26. > :05:29.it together, we'd have been in the same position as voters, who have
:05:30. > :05:33.heard what Mr Corbyn and his colleagues have said and can only
:05:34. > :05:36.take them at their face value. We had to believe their statements are
:05:37. > :05:40.a true representation of what a Labour government would do. By
:05:41. > :05:44.taking Mr Corbyn at his word and analysing his commitment in good
:05:45. > :05:49.faith, we've assembled the best and clearest picture of what a Jeremy
:05:50. > :05:53.Corbyn government would look like. We've taken only clear and
:05:54. > :05:55.unambiguous spending commitments made publicly by Mr Corbyn and his
:05:56. > :05:59.senior colleagues. senior colleagues.
:06:00. > :06:04.This has been a challenge. It's not always clear what is a genuine
:06:05. > :06:10.Labour Party policy and what is just another idea floated on the day.
:06:11. > :06:15.Anyone who listened to Diane Abbott's talking on police numbers
:06:16. > :06:21.as they will understand what I mean. We have erred on the side of
:06:22. > :06:25.caution. Policies have only been included in this analysis if a voter
:06:26. > :06:29.would hear a statement and reasonably believe that it was a
:06:30. > :06:33.pledge by Jeremy Corbyn or a member of the Shadow Cabinet to reverse a
:06:34. > :06:37.saving, spend money or raise revenue. Even this relatively
:06:38. > :06:43.cautious analysis reveals a huge black hole at the heart of Jeremy
:06:44. > :06:48.Corbyn's spending plans, amounting to 45 billion at the very minimum.
:06:49. > :06:52.The cost of Corbyn's chaos will be borne by ordinary working families
:06:53. > :06:56.across the country. They will feel in their tax bills, see it in the
:06:57. > :07:02.jobs lost, feel it in the public services they lose out as the
:07:03. > :07:06.economy crashes and economic confidence drains away. And as we
:07:07. > :07:08.face up to this crucial time for a country, as we negotiate our
:07:09. > :07:15.departure from the European Union and make our own world in the world,
:07:16. > :07:20.the uncertainty created by Jeremy Corbyn's policies would be
:07:21. > :07:24.disastrous. The analysis we publish today demonstrates two things.
:07:25. > :07:27.First, by pledging populist policies for everyone and ducking the
:07:28. > :07:31.difficult decisions, Jeremy Corbyn has shown he is unable to provide
:07:32. > :07:36.the leadership Britain needs at this critical moment for our country.
:07:37. > :07:41.Second, the cost of Corbyn's chaos would be too high a price to pay for
:07:42. > :07:47.Britain. In this election we note a bow for any on other than Theresa
:07:48. > :07:52.May is a vote for Jeremy Corbyn's chaos. That will put Britain's
:07:53. > :07:55.economic security at risk and put our security at doubt. It's too big
:07:56. > :08:00.a risk and too high a price. It's not in the best interest of
:08:01. > :08:05.taxpayers and certainly not in the interests of Britain. I thank you.
:08:06. > :08:12.We will take a few questions before we finish. Can we start with Laura
:08:13. > :08:17.Kuenssberg. Chancellor and Secretary of State,
:08:18. > :08:21.isn't it really rather rich for you to be criticising Labour's tax plans
:08:22. > :08:26.this morning when your party is yet to spell out its plan for tax and is
:08:27. > :08:30.yet to rule out tax rises, unless you wish to do that right here this
:08:31. > :08:36.morning? Secondly, can I ask both of you, how much is the Government
:08:37. > :08:40.prepared to pay as we leave the European Union? Can I ask you both
:08:41. > :08:43.not simply to hide behind the fact there will be negotiations. In this
:08:44. > :08:49.election, don't voters deserve to know how much of their tax payers
:08:50. > :08:55.cash may be asked to stand tall up? Is it close to zero or 100 billion?
:08:56. > :09:03.Let me start by answering that fuss. The public want one thing. They want
:09:04. > :09:05.a good outcome from this negotiation, the best possible
:09:06. > :09:11.outcome to the negotiation. They don't want us to talk about it, they
:09:12. > :09:15.want the best outcome. We will be undertaking this negotiation in the
:09:16. > :09:21.negotiation room with Mr Barnier, President Juncker and the 27. We
:09:22. > :09:26.will negotiate a free trade agreement, the sorting out of the
:09:27. > :09:29.European citizens rights and British citizens rights abroad and we will
:09:30. > :09:36.certainly also be seeking to solve all the other issues relating to
:09:37. > :09:39.justice and home affairs. We do that in the negotiating room, not by
:09:40. > :09:44.negotiating with a megaphone. Chancellor. On your first question,
:09:45. > :09:49.conservatives are a low tax party, it's in our DNA. Look at our track
:09:50. > :09:55.record, we've taken 4 million low-paid people out of income tax
:09:56. > :09:58.since 2010, reduced income tax for another 31 million, so that the
:09:59. > :10:04.typical basic rate taxpayer is paying ?1000 less than they would
:10:05. > :10:08.have been in 2010. We will set out our tax and spending plans in our
:10:09. > :10:12.manifesto, as the Prime Minister has made clear. What we're doing this
:10:13. > :10:23.morning is analysing commitments that Labour has publicly made.
:10:24. > :10:27.Libby? From ITV News. Just following up on
:10:28. > :10:31.the question of the amount of money the EU might be demanding. You're
:10:32. > :10:36.talking about a Labour bombshell, but this is a bombshell from the EU,
:10:37. > :10:40.suggesting you clearly have no idea what the British taxpayers are going
:10:41. > :10:43.to end up paying and it could be much higher than you originally
:10:44. > :10:47.thought. No, that's not the case. We are in
:10:48. > :10:54.the pre-negotiation phase of what will be a very complex and very
:10:55. > :10:58.tough two year negotiation, or up to two years. If you followed my
:10:59. > :11:01.comments in the Commons and elsewhere you will have seen about a
:11:02. > :11:05.dozen times I have said, there will be tough times in this exercise and
:11:06. > :11:09.when we come under pressure, this is one of those times. That is
:11:10. > :11:14.unsurprising. The numbers being bandied around in the press, 50, 60,
:11:15. > :11:19.100 billion, we do not recognise, we have had no indication of it. What
:11:20. > :11:27.we have said throughout is we will meet our international obligations
:11:28. > :11:29.and enter into the negotiation in the best interests of both us and
:11:30. > :11:32.the European Union. That is what we will do. Let me add
:11:33. > :11:36.to that, what this episode shows is just how tough this negotiation is
:11:37. > :11:39.going to be. The question people have two are themselves when they go
:11:40. > :11:45.into the polling booth on the 8th of June is, who do they want conducting
:11:46. > :11:48.these negotiations for Britain? Theresa May Jeremy Corbyn? Who is
:11:49. > :11:58.most likely to get the deal that's right for Britain? ? Theresa May...
:11:59. > :12:04.Come on, you've had your question. You were in the room on Wednesday.
:12:05. > :12:07.Why did Jean-Claude Juncker leave dinner thinking Theresa May was
:12:08. > :12:17.delusional? And to the Chancellor, we've heard about this bombshell
:12:18. > :12:20.from the EU. David Davis says don't recognise 50 billion, 100 billion,
:12:21. > :12:25.is that a red line you absolutely rule out paying?
:12:26. > :12:28.Let me first say about the dinner. We don't comment about meetings,
:12:29. > :12:32.never have and never will and there will be many more private meetings
:12:33. > :12:36.between now and the end of two years. The morning after both
:12:37. > :12:39.Downing Street and the commission said it had been a constructive
:12:40. > :12:43.meeting. Of course there will be differences of view. Many of those
:12:44. > :12:46.that will come in a couple of years. Don't be surprised, but we will
:12:47. > :12:50.resolve them. On the number, I don't recognise the
:12:51. > :12:56.number, I genuinely don't recognise it. It has moved by 60% in the space
:12:57. > :13:00.of a few days. It is just a negotiating position. What we do
:13:01. > :13:05.know is we are on the brink of a very tough, complex and length
:13:06. > :13:10.renegotiation and I am not remotely surprised people are manoeuvring for
:13:11. > :13:13.open advantage in that negotiation. From the public point of view this
:13:14. > :13:17.will be a tough negotiation, who do you want running it? It's fairly
:13:18. > :13:23.obvious to us, Theresa May. Francis Elliott from the Times.
:13:24. > :13:28.First of all, Secretary of State, to you, Michel Barnier is making it
:13:29. > :13:32.clear Theresa May won't be allowed to negotiate directly with other EU
:13:33. > :13:39.leaders. What do you say to that? And you, chances are, you don't have
:13:40. > :13:44.enter your manifesto launch to spout all your tax and spending lines. You
:13:45. > :13:49.have an air quality consultation on Friday. Can you pledge any scrappage
:13:50. > :13:54.scheme will be fully funded? And you said no road tax would be
:13:55. > :13:59.reviewed... It is going up this autumn, isn't it? I will deal with
:14:00. > :14:07.mine first. Shall I? I saw your story this morning. We're not
:14:08. > :14:12.entering this negotiation supplicant, it's not for the other
:14:13. > :14:15.side to lay down every single rule. Within the laws and rules of the
:14:16. > :14:18.European Union we are a full member until the day we leave. We pay off
:14:19. > :14:29.all summer until the day we leave, we obey the laws at all really. And
:14:30. > :14:33.it is a member of this council. People will make the eventual
:14:34. > :14:35.decision, she will be meeting them on a monthly basis or more.
:14:36. > :14:37.Similarly we will decide the structure of that not the European
:14:38. > :14:45.Union. On air quality strategy, you know we
:14:46. > :14:49.are under instruction from the court...