:00:21. > :00:26.And get the best deal for the United Kingdom and Europe, me or Jeremy
:00:27. > :00:32.Corbyn. And our economic security will be on the ballot paper on the
:00:33. > :00:36.8th of June. Over the last seven years, thanks to the hard work of
:00:37. > :00:40.the British people and the credible economic plan we have pursued in
:00:41. > :00:46.government, significant progress has been made. We have taken the British
:00:47. > :00:50.economy out of the danger zone and begun to repair the damage done to
:00:51. > :00:55.it by Labour. The deficit has come down by almost three quarters as a
:00:56. > :00:59.share of GDP. The UK economy has grown at one of the fastest rate in
:01:00. > :01:07.the developed world. Employment has increased by 2.9 million since
:01:08. > :01:13.Labour were in power. We should never forget what those numbers mean
:01:14. > :01:17.for ordinary working families. , they mean a better future bloggers
:01:18. > :01:24.-- more security, more tax revenue to spend on vital public services
:01:25. > :01:28.like the NHS, schools and events. Just today, we have seen that the
:01:29. > :01:32.work of fixing Labour's economic mess continues. The government has
:01:33. > :01:36.sold its remaining shares in Lloyds banking group as we continue to
:01:37. > :01:39.repair the damage to our banking sector and today's employment
:01:40. > :01:44.figures show that our credible economic policies are continuing to
:01:45. > :01:51.deliver greater economic security for families across the country. But
:01:52. > :01:56.none of this happened by accident. Our economic progress has been
:01:57. > :02:00.dearly won and could easily be lost if the wrong policies were pursued
:02:01. > :02:08.in the years ahead. It is frankly all at risk. Any party which asked
:02:09. > :02:12.the British people to entrust them the responsibility of forming the
:02:13. > :02:17.next government through the crucial years of our Brexit negotiations and
:02:18. > :02:22.beyond must demonstrate that it has the credible economic plan and the
:02:23. > :02:28.capable team to safeguard our economic security. No one good look
:02:29. > :02:32.at what Jeremy Corbyn and his Labour Party offered yesterday and conclude
:02:33. > :02:36.that it passed the test. -- no one could look. The risk which a Jeremy
:02:37. > :02:42.Corbyn led government would pose to the economy has been laid bare. But
:02:43. > :02:49.manifestos are also a test of something else. They are a test of
:02:50. > :02:53.leadership. Later this week, I will publish my body's manifest over the
:02:54. > :02:58.next five years. Unlike Jeremy Corbyn's fantasy wish list of easy
:02:59. > :03:03.promises, paid for with imaginary money, I will set out in detail the
:03:04. > :03:06.five great challenges our country's -- our country faces over the next
:03:07. > :03:11.five years and layout how we will tackle them. While Jeremy Corbyn and
:03:12. > :03:18.Labour retreat into an ideological comfort zone, ducking the difficult
:03:19. > :03:21.challenges which lie ahead I will be straight with people. I won't shy
:03:22. > :03:29.away from facing the challenges of our time. Rather, I will set out how
:03:30. > :03:33.we will tackle them head-on. Because that is what leadership is about.
:03:34. > :03:40.And on this key test, Jeremy Corbyn has failed once again. If you can't
:03:41. > :03:46.show real leadership of his party now, how could he lead our country
:03:47. > :03:49.through Brexit? How could he sit down and the prime ministers,
:03:50. > :03:54.president and chancellors of Europe and get a deal for Britain. At this
:03:55. > :03:57.election, only be strong and stable leadership of me and my team. Can
:03:58. > :04:04.deliver this excess or Brexit our country needs. Face up to the
:04:05. > :04:08.challenges which lie ahead and improve the lives of everyone in our
:04:09. > :04:13.country. It will be strong leadership and credible policies for
:04:14. > :04:16.a better future. That starts with getting the right Brexit deal for
:04:17. > :04:22.Britain, which locks and economic security for our country. The
:04:23. > :04:26.weakness of Jeremy Corbyn and the chaos of the coalition which will
:04:27. > :04:34.put him into Downing Street. And with it, the future prosperity of
:04:35. > :04:38.families across our country. And the Chancellor will now say more about
:04:39. > :04:41.that. Thank you, Prime Minister.
:04:42. > :04:46.Yesterday, the Labour manifesto confirmed what we already suspected,
:04:47. > :04:50.that they do not have a credible plan for our country's future and
:04:51. > :04:56.they cannot be trusted with our country's finances. What we saw
:04:57. > :05:01.yesterday is only the latest in a catalogue of chaos. From Labour.
:05:02. > :05:05.Throughout this campaign, Labour has shown time and time again that they
:05:06. > :05:12.lack the basic competence and credibility to govern this country.
:05:13. > :05:18.We have seen Jeremy Corbyn and his closest lieutenants exposed as being
:05:19. > :05:21.simply not up to the job. Shadow Chancellor, the self-confessed
:05:22. > :05:26.Marxist John McDonnell, does not know how big the deficit is. The
:05:27. > :05:29.Shadow Home Secretary, Diane Abbott, at one stage was suggesting you
:05:30. > :05:35.could employ a police officer for ?30 per year. The Shadow Education
:05:36. > :05:40.Secretary Angela Rayner could not tell us how many children their
:05:41. > :05:42.class size policy would affect. And yesterday, the Shadow Foreign
:05:43. > :05:49.Secretary, Emily Thornberry, was unable to explain Labour's policy on
:05:50. > :05:55.benefits. Labour have simply become a shambles. And as yesterday's
:05:56. > :06:01.manifesto showed, their numbers simply do not add up. Now that
:06:02. > :06:05.Jeremy Corbyn has published his manifesto in full, we have been able
:06:06. > :06:11.to update the analysis which David Davis and I published previously. We
:06:12. > :06:18.can now set out the full damage is nonsensical plans would do to the
:06:19. > :06:24.nation's finances by 2021 - 22. The new dossier of analysis we have
:06:25. > :06:28.published today shows that there is a ?58 billion black coal in Jeremy
:06:29. > :06:34.Corbyn's plans in just one year alone. -- black hole. Proposal after
:06:35. > :06:39.proposal in Labour's manifesto mean more borrowing and more debt from
:06:40. > :06:43.uncosted promises to increase benefits, two unexplained threats to
:06:44. > :06:49.seize control of private companies. These plans, many of them it can be
:06:50. > :06:57.questionable in themselves, simply do not add up. Any shred of economic
:06:58. > :07:02.credibility which Labour had left has now been buried by Jeremy Corbyn
:07:03. > :07:10.and his acolytes. And this matters to families across the UK. The
:07:11. > :07:13.economic chaos which would hit our country if Labour were in a position
:07:14. > :07:16.to implement the shambolic package of policies they unveiled yesterday
:07:17. > :07:24.would leave every household in Britain counting the cost. The price
:07:25. > :07:27.of Labour's payers would be felt in higher taxes and steeper mortgage
:07:28. > :07:32.bills for working families. -- the price of Labour's chaos. This
:07:33. > :07:34.economic chaos would mean higher running plummet, robbing families of
:07:35. > :07:39.the peace of mind and security which comes with the job. It would mean
:07:40. > :07:42.more borrowing, throwing away all of the hard earned progress of the last
:07:43. > :07:48.seven years and take us right back to square one with a growing
:07:49. > :07:54.deficit, growing debt, and increasing financial uncertainty for
:07:55. > :07:59.the next generation. Labour's manifesto is a plan for an
:08:00. > :08:06.ideological view which would mean economic chaos for the many. Only
:08:07. > :08:10.Theresa May and her Conservative team have a plan to lock in economic
:08:11. > :08:17.security and build a better future for our country. The stakes at this
:08:18. > :08:22.election could not be higher. A vote for any other party is simply too
:08:23. > :08:35.big a risk to take. Thank you. APPLAUSE
:08:36. > :08:41.Thank you very much, Philip. We will now take questions. Laura. Thank
:08:42. > :08:47.you, Prime Minister and Chancellor. You have attacked the Labour plans,
:08:48. > :08:52.not surprisingly, but if increasing tax and spending overall is such a
:08:53. > :08:56.bad idea, why has it continued to happen under a government that you
:08:57. > :08:59.have both been part of for seven years? You have repeatedly missed
:09:00. > :09:03.your deficit targets and you even still have a black hole in your most
:09:04. > :09:07.recent budget, Chancellor. If I may, the Chancellor this morning rather
:09:08. > :09:11.candidly admitting occasionally swearing in rows with number ten. If
:09:12. > :09:18.Arnaud Djoum, you are re-elected, will you still be next-door
:09:19. > :09:21.neighbours? -- if after June, you are re-elected. I will ask the
:09:22. > :09:24.Chancellor to respond as well but first, let's be clear about what we
:09:25. > :09:29.are saying about the Labour Party manifesto, it simply does not add
:09:30. > :09:32.up. What we see if this is the ?8 billion black hole we have
:09:33. > :09:36.identified in their figures. But what matters is that these are large
:09:37. > :09:42.numbers but also the impact it has an ordinary working families. And it
:09:43. > :09:46.means people will be paying the price of Labour, they will pay the
:09:47. > :09:50.price in higher taxes, lower wages, higher prices and an economy which
:09:51. > :09:54.will be in chaos. The key thing is that over the last seven years, we
:09:55. > :09:58.have shown we have a credible economic plan and we have a credible
:09:59. > :10:02.economic plan for the future, to take us forward, to ensure that we
:10:03. > :10:06.get the right deal for Brexit but also locked in our economic
:10:07. > :10:10.security. I think it is true to say that the Chancellor and I and every
:10:11. > :10:13.other member of my team focused on the 8th of June. Our focus is on
:10:14. > :10:14.winning the general election because it matters for the future of
:10:15. > :10:25.country. What I candidly admitted this
:10:26. > :10:29.morning, and my family will confirm this, is that I do occasionally
:10:30. > :10:35.swear. The difference here between us and Labour is, Labour does not
:10:36. > :10:38.believe in balancing the budget. The Prime Minister has said many times
:10:39. > :10:42.that as a country, we have to get back to living within our means, we
:10:43. > :10:48.have to do that in a sensible and measured way, which balances the
:10:49. > :10:51.needs of deficit reduction with the needs for balancing the economy and
:10:52. > :10:56.the needs of our public services and, but we do have to do it. Labour
:10:57. > :11:01.does not believe in reducing taxes, Labour believes in increasing taxes.
:11:02. > :11:13.We are a low tax party by instinct. Conservatives will always cost you
:11:14. > :11:18.less in tax. You're is missing tensions between you and No 10, Mr
:11:19. > :11:22.Hammond, but I think many people will want to know how bad relations
:11:23. > :11:29.really have got and whether you will still be Chancellor of the election
:11:30. > :11:32.if you win? Look, we work very closely together, the Prime Minister
:11:33. > :11:37.and I have known each other for many, many years. She has got an
:11:38. > :11:40.extremely strong team around her, I work very closely with hurting, some
:11:41. > :11:45.of them are people that I have known for many, many years. We do work
:11:46. > :11:56.very well together as a team, and all this media tittle tattle is just
:11:57. > :12:03.that. Prime Minister, yesterday, when we were at that screw fix for
:12:04. > :12:06.me, a father of five who takes home ?300 a week asked you twice about
:12:07. > :12:14.how you would help him cope with the cost of living, and he is right,
:12:15. > :12:19.isn't he, because new figures show inflation running at 2.7%, while
:12:20. > :12:23.weekly earnings are now running at 2.1% in the three months to March.
:12:24. > :12:28.You admitted to him that Brexit was partly to blame for his family's
:12:29. > :12:32.struggles - are you now saying that EU also said there would be a of
:12:33. > :12:35.years of uncertainty. Do you now say that there will be a squeeze on the
:12:36. > :12:41.cost of living for workers until Brexit is complete? If I may, I did
:12:42. > :12:47.not actually say that Brexit was responsible for trouble that he had.
:12:48. > :12:52.I did say that we had of course seen an impact on inflation from changes
:12:53. > :12:56.to the currency over the last few months, and that, as everybody
:12:57. > :13:01.knows, we are going to a negotiation on Brexit over the next two years,
:13:02. > :13:04.and the final deal, that special relationship, special partnership
:13:05. > :13:08.that we want to build with Europe, will be part of those negotiations.
:13:09. > :13:13.There are two ways of looking at the impact of cost of living for people.
:13:14. > :13:17.One is, our desire to ensure that people are in work and that we see
:13:18. > :13:21.are economy generating higher paid jobs. That's what we want to see.
:13:22. > :13:24.But if you're going to do that, you have to make sure you have a
:13:25. > :13:27.credible plan to build on the strength of the economy and not
:13:28. > :13:31.destroy it with the sort of policies that we have seen from the Labour
:13:32. > :13:37.Party yesterday in their manifesto. And then, on the other side of the
:13:38. > :13:40.equation, in terms of cost of living, of course, we can help
:13:41. > :13:48.people in certain areas, and that's exactly what we're proposing to do
:13:49. > :13:52.in of energy costs, which as you know, the regulator said the
:13:53. > :13:55.customers of the big six suppliers are paying ?1.4 billion more a year
:13:56. > :14:00.than they would if the market was truly competitive. That's why in
:14:01. > :14:06.government we would take action on that. 2.9 million new jobs, net new
:14:07. > :14:11.jobs, since 2010, our economy is one of the fastest-growing developed
:14:12. > :14:14.economies in the world. Yes, of course we have some inflation
:14:15. > :14:18.passing through the economy, but it will be transient, it is a result of
:14:19. > :14:22.currency movements last year. And the OBR forecasts that in every year
:14:23. > :14:26.of the five-year forecast period, real wages will continue to
:14:27. > :14:31.increase. As the Prime Minister says, the long-term answer to this
:14:32. > :14:38.question is that only by building a strong and resilient economy can we
:14:39. > :14:41.deliver sustainable economic road and sustainable, rising living
:14:42. > :14:46.standards. There is no other way of doing it. It is not done by writing
:14:47. > :14:51.in a Labour manifesto that we will do this or that. That will not
:14:52. > :14:54.deliver sustainable, rising living standards, only getting the
:14:55. > :14:59.fundamentals of the economy right will do that. That requires a good
:15:00. > :15:02.exit deal and it requires strong leadership to consolidate the gains
:15:03. > :15:14.that we've made in our economy over the last seven years. A question to
:15:15. > :15:18.both of you, which verges into the area of political philosophy, I
:15:19. > :15:23.think. Without asking you to pre-empt your manifesto tomorrow,
:15:24. > :15:26.philosophy of taxation, would you like to see a shift in the balance
:15:27. > :15:31.of taxation away from work and enterprise and onto wealth? My
:15:32. > :15:37.overriding philosophy of taxation is actually that we should be as low
:15:38. > :15:41.tax a country as possible. It is in that way that we can ensure that
:15:42. > :15:44.businesses are investing here and creating jobs and that people have
:15:45. > :15:48.more of their own money to spend. That is my tax philosophy. I think
:15:49. > :15:54.we have got a challenge as the economy changes shape. That sounds
:15:55. > :16:01.like yesterday's question. As we move into more digital globalised
:16:02. > :16:05.economy, the challenge is, how we tax that changing pattern of
:16:06. > :16:10.activity, how do we make sure that companies operating digitally in the
:16:11. > :16:14.global economy, who may have a big footprint in the UK but not
:16:15. > :16:19.necessarily a big tax presence, how do we make sure that they pay their
:16:20. > :16:22.fair share? This is an international bastion, who only dealt with by
:16:23. > :16:27.agreement between nations, and Britain has led in the G20 and other
:16:28. > :16:31.forums in taking forward this debate about how we are going to make sure
:16:32. > :16:41.that our tax system evolves as the shape of our economy will evolves,
:16:42. > :16:52.so carry on supporting rising living standards. That is the challenge.
:16:53. > :16:57.Question to each of you. You have spoken about reducing the deficit,
:16:58. > :17:01.can you commit today by when, under your chancellorship you would
:17:02. > :17:06.eliminate the deficit? Prime Minister, you will be very aware of
:17:07. > :17:09.the other side of the Atlantic, the White House, and allegations of
:17:10. > :17:13.spying and what is going on with Donald Trump - do you have full
:17:14. > :17:18.confidence in Donald Trump? Shall I take that last one? We have a very
:17:19. > :17:22.special relationship, as you know with the United States of America.
:17:23. > :17:26.This is the most important defence and security relationship that we
:17:27. > :17:31.have around the world. I was very pleased when I went to the United
:17:32. > :17:36.States shortly after President Trump's inauguration and he was able
:17:37. > :17:40.to commit to his 100% commitment to Nato, which is and important bedrock
:17:41. > :17:44.of our security and that of Europe. We continue to work together and we
:17:45. > :17:46.have confidence in their relationship between us and the
:17:47. > :17:53.United States, which helps to keep us all safer. Nobody should be in
:17:54. > :17:56.any doubt about our commitment to getting the country back to living
:17:57. > :17:58.within its means, that is essential if we are going to build a
:17:59. > :18:04.sustainable economy for the future. As to the exact timetable, you will
:18:05. > :18:21.have to wait, I'm afraid, until the manifesto was published -- is
:18:22. > :18:23.published. Prime Minister, you've dealt with security matters, you've
:18:24. > :18:30.dealt with stuff coming from sensitive sources - does the fact
:18:31. > :18:36.that the President of the United States seems willing to discuss
:18:37. > :18:41.things really with people in the Oval Office, from Russia or
:18:42. > :18:46.wherever, does that make you more reluctant to share British
:18:47. > :18:50.intelligence with the US? Decisions about what President Trump discusses
:18:51. > :18:55.with anybody that he has in the White House is a matter for
:18:56. > :18:59.President Trump. We continue to work with the United States and to share
:19:00. > :19:03.intelligence with the United States space we do with others around the
:19:04. > :19:08.world, because we are all working together to deal with the threats
:19:09. > :19:19.that we face. The key threat being that of terrorism, predominantly
:19:20. > :19:24.from Daesh but we must never forget that Al-Qaeda is still out there.
:19:25. > :19:35.That is an important part of maintaining our national security,
:19:36. > :19:42.and we will continue to do so. To accept that Brexit is to blame for
:19:43. > :19:46.the 17% slide in sterling since June's referendum, and if you don't,
:19:47. > :19:50.what do you think is the reason? If you look at what happened to
:19:51. > :19:55.sterling, sterling had started to fall back before the referendum vote
:19:56. > :20:00.came through. So, there have been adjustments to sterling, and if you
:20:01. > :20:05.look, it is not just that sterling has gone down, we have seen it move
:20:06. > :20:09.around a as currencies do. What matters to any government is that we
:20:10. > :20:12.have a credible economic plan that is able to ensure that we can deal
:20:13. > :20:19.with the circumstances as they develop. The key thing is to get
:20:20. > :20:23.started straight after the election with the Brexit negotiations will
:20:24. > :20:28.make progress as quickly as we can to get the best possible deal for
:20:29. > :20:31.Britain. Business hates uncertainty, everybody knows that. The sooner we
:20:32. > :20:37.can create certainty about Britain's future relationship with Europe and
:20:38. > :20:40.about how people will be able to operate their businesses, the better
:20:41. > :20:45.it will be for the British economy. That means strong and determined
:20:46. > :20:47.leadership in those negotiations, and it's very clear to me that
:20:48. > :20:59.Jeremy Corbyn cannot provide that leadership. Sorry, I don't know
:21:00. > :21:05.everybody's name, so... Daily Telegraph. A question for both of
:21:06. > :21:10.you, if I may. Labour has unveiled plans to put up taxes on the top 5%
:21:11. > :21:14.of earners - can people earning more than ?80,000 expect to hear
:21:15. > :21:19.similarly bad news in the Conservative manifesto? First of
:21:20. > :21:22.all, you will not be surprised when I say that we will be setting out
:21:23. > :21:28.our policies in the manifesto, when we publish it tomorrow. But if you
:21:29. > :21:32.look at the issue of taxation, let's just look at our record in
:21:33. > :21:36.government. We have taken 4 million people out of paying income tax
:21:37. > :21:41.altogether, and 31 million people have seen a tax cut. For a basic
:21:42. > :21:46.rate taxpayer, that has been worth about ?1000 a year. I come back to
:21:47. > :21:49.the point Philip made earlier, that actually, there is a very clear
:21:50. > :21:52.choice between the two parties, it is between a Conservative Party
:21:53. > :21:59.which has always believed in lower taxes and continues to be a low tax
:22:00. > :22:04.party and will continue to be so, and Labour, whose natural instinct
:22:05. > :22:09.is to put up taxes. The election will not just be about taxes, it
:22:10. > :22:14.will be about jobs lost and higher prices for the consumers, what we
:22:15. > :22:17.see from Labour's manifesto is that it is ordinary working families up
:22:18. > :22:22.and down the country who will pay the price. It is worth reminding
:22:23. > :22:28.ourselves of where we are today. Top 1% of income earners pay 87% of all
:22:29. > :22:31.the income tax collected in this country. That is a higher
:22:32. > :22:50.percentage... page 27%. Briefings, if I may.
:22:51. > :22:57.Firstly, the Conservative position, on families just managing to get
:22:58. > :23:01.right, and ordinary workers, can you explain why it is a bad idea to put
:23:02. > :23:08.a payroll tax on salaries of ?330,000 or more. And, Prime
:23:09. > :23:13.Minister, can you give us an endorsement of the Chancellor? I am
:23:14. > :23:19.happy to do so, yes! Very happy to do so! Is Philip says, we have
:23:20. > :23:23.worked together for many years, longer than we would care to
:23:24. > :23:28.identify, I think! That is an age-related comment, nothing else,,
:23:29. > :23:35.in case you try and relate anything into that! In relation to what is
:23:36. > :23:42.happening in the Labour Party manifesto, the key thing is that you
:23:43. > :23:45.have to ask yourselves, with the in positions that they are proposing to
:23:46. > :23:50.put on business, what would the impact of that be? It is easy to
:23:51. > :23:54.think, this is just about business, business will pay and there will not
:23:55. > :23:57.be any impact on anybody else. Actually, that's not right. If
:23:58. > :24:02.business does not think this is a good place to be, in the UK, then
:24:03. > :24:06.they won't come here, we won't see jobs being created and people will
:24:07. > :24:11.lose out. They will lose out in higher prices in the shops, in lower
:24:12. > :24:14.wages and fewer jobs. What we need to do is to make sure that the
:24:15. > :24:17.United Kingdom is the most attractive place to set up and grow
:24:18. > :24:20.a business, to provide their jobs and investment that will really
:24:21. > :24:28.secure people's future.