:00:14. > :00:15.Evening, all, welcome to our first Today At Conference from
:00:16. > :00:17.the Tory Party's annual jamboree here in Birmingham.
:00:18. > :00:23.Philip Hammond made his first speech as Chancellor and set the
:00:24. > :00:25.Government on a new course, with slower budget
:00:26. > :00:29.deficit reduction, and more borrowing to invest.
:00:30. > :00:32.The new Hammond way is good news for Communities Secretary Sajid Javid
:00:33. > :00:38.and Transport Secretary Chris Grayling.
:00:39. > :00:40.We'll hear how they plan to spend the extra dosh.
:00:41. > :00:43.But what do the Tory rank-and-file think of this change of policy?
:00:44. > :00:45.Our Adam talks to party members about the loosening
:00:46. > :00:52.Crack on? Yeah.
:00:53. > :00:59.Err... As soon as possible.
:01:00. > :01:01.It's only three months since Theresa May replaced
:01:02. > :01:09.but already this feels like a very different government.
:01:10. > :01:12.Policies are being ripped up, replaced or refreshed all over
:01:13. > :01:13.the place, including the core Cameron-Osborne policy
:01:14. > :01:17.That's been changed by the new Chancellor,
:01:18. > :01:28.but Philip Hammond began with some warm words for his predecessor.
:01:29. > :01:30.It's easy to forget, six years on, the scale of the legacy
:01:31. > :01:33.of Labour's great recession that we inherited in 2010.
:01:34. > :01:36.Turmoil in the markets, a banking system still reeling
:01:37. > :01:39.from the crisis, a deficit of more than 10% of GDP, the highest
:01:40. > :01:56.And it was the decisions George Osborne, took in those
:01:57. > :01:59.early days, that pulled us back from the precipice and set us
:02:00. > :02:07...Those tough early choices and the doggedness in sticking
:02:08. > :02:12.with them delivered that intangible, but indispensable
:02:13. > :02:20.Credibility in the markets that helped secure record
:02:21. > :02:25.low borrowing costs, and credibility with business,
:02:26. > :02:31.securing the investment that supported our recovery.
:02:32. > :02:33.And the results are clear for us all to see.
:02:34. > :02:36.2.7 million more people in work today under a Conservative
:02:37. > :02:44.government than in 2010 under Labour.
:02:45. > :02:47.Did we hear that achievement being lauded in Liverpool last week?
:02:48. > :02:49.Of course not, because Corbyn's Labour Party has abandoned
:02:50. > :02:51.the agenda of working people, deserting the middle ground
:02:52. > :02:56.of British politics in favour of the socialist ideology
:02:57. > :03:07.Leaving us, the Conservatives, as the true party of
:03:08. > :03:20.We must look to the future, to the economic challenges ahead.
:03:21. > :03:24.Let's start with the immediate challenge.
:03:25. > :03:26.The markets have calmed since the referendum vote,
:03:27. > :03:33.and many of the recent data have been better than expected.
:03:34. > :03:35.That is the clearest demonstration of the underlying
:03:36. > :03:44.But there is no room for complacency.
:03:45. > :03:46.Many businesses which trade with the EU are uncertain
:03:47. > :03:51.They have understandable questions about the process
:03:52. > :03:56.of the negotiations, about the deal that will be
:03:57. > :03:59.done, about the changes they will have to make to adapt
:04:00. > :04:08.And about what it will all mean for their employees, their company,
:04:09. > :04:12.And I understand their concerns - business, after all,
:04:13. > :04:22.But let me repeat the pledge of the Prime Minister yesterday.
:04:23. > :04:25.As we negotiate our exit from the EU and our future relationship with it,
:04:26. > :04:30.this Government will fight for the best possible deal
:04:31. > :04:36.for British business and British workers.
:04:37. > :04:38.The best possible access to European markets for our manufacturing
:04:39. > :04:46.and our global exporters, ensuring that Britain after Brexit
:04:47. > :04:49.will remain one of the best places in the world for a business
:04:50. > :04:54.to invest, to innovate, and to grow.
:04:55. > :05:05.The independent Bank of England successfully cut interest rates
:05:06. > :05:12.to restore confidence in the wake of the vote.
:05:13. > :05:15.But as the economy responds over the coming months, fiscal policy may
:05:16. > :05:24.Throughout the negotiating process, we are ready to take whatever steps
:05:25. > :05:30.are necessary to protect this economy from turbulence.
:05:31. > :05:33.And when the process is over, we are ready to provide support
:05:34. > :05:38.to British businesses as they adjust to life outside the EU,
:05:39. > :05:40.because Brexit does mean Brexit, and we are going to
:05:41. > :05:55.And in the meantime, I can offer some additional
:05:56. > :05:57.certainty to British businesses and other organisations bidding
:05:58. > :06:02.to receive EU funding while we're still a member.
:06:03. > :06:05.I've already guaranteed the funding for projects signed prior to this
:06:06. > :06:16.The Treasury will offer a guarantee to bidders whose projects meet UK
:06:17. > :06:21.priorities and value-for-money criteria, that if they secure
:06:22. > :06:23.multi-year EU funding before we exit, we will guarantee those
:06:24. > :06:25.payments after Britain has left the EU, protecting British jobs
:06:26. > :06:41.The British people elected us on a promise to restore fiscal
:06:42. > :06:45.discipline, and that is exactly what we are going to do.
:06:46. > :06:49.But we will do it in a pragmatic way, in a way that reflects
:06:50. > :07:00.The fiscal policies that George Osborne set out
:07:01. > :07:04.But when times change, we must change with them.
:07:05. > :07:06.So we will no longer target a surplus at the end
:07:07. > :07:17.the task of fiscal consolidation must continue.
:07:18. > :07:23.And it must happen within the context of a clear,
:07:24. > :07:26.credible fiscal framework that will control day-to-day public
:07:27. > :07:28.spending, deliver value for money, and get Britain back
:07:29. > :07:36.At the Autumn Statement in November, I will set out our plan to deliver
:07:37. > :07:41.long-term fiscal sustainability, while responding to the consequences
:07:42. > :07:43.of short-term uncertainty and recognising the need
:07:44. > :07:50.for investment to build an economy that works for everyone.
:07:51. > :07:54.A new plan for the new circumstances Britain faces.
:07:55. > :07:57.Our stock of public infrastructure ? like our roads, railways,
:07:58. > :07:59.flood defences ? languishes near the bottom of the developed
:08:00. > :08:05.countries league table after decades of under-investment.
:08:06. > :08:09.And our businesses, too, are not investing enough.
:08:10. > :08:15.All of this must change to build an economy that works for everyone.
:08:16. > :08:17.We need to close that gap with careful, targeted public
:08:18. > :08:23.investment in high-value infrastructure and encouragement
:08:24. > :08:27.of more private investment in British enterprises.
:08:28. > :08:30.One of the key messages of the referendum campaign was that
:08:31. > :08:34.large parts of our country feel left behind.
:08:35. > :08:36.They see the country getting richer, but they don't feel
:08:37. > :08:44.A dangerous divide is opening up between those who believe
:08:45. > :08:48.they have a stake in the economy and those who do not.
:08:49. > :08:51.And it's one of the central missions of this government to tackle that
:08:52. > :08:56.divide, to see the benefits of economic growth shared more
:08:57. > :09:01.evenly across the regions, and across the generations.
:09:02. > :09:03.A key part of this agenda is harnessing the economic
:09:04. > :09:11.The Northern Powerhouse project takes a visionary approach,
:09:12. > :09:16.linking the great cities of the North into a coherent
:09:17. > :09:18.economic entity, an interconnected region that raises productivity
:09:19. > :09:20.and delivers growth by making it easier and cheaper for firms
:09:21. > :09:31.and individuals to move goods, people and ideas.
:09:32. > :09:34.And I want to pledge to you today that the Treasury
:09:35. > :09:42.under my leadership will continue to drive the Northern Powerhouse
:09:43. > :09:44.project, working in partnership with local leaders to see it
:09:45. > :09:48.deliver its potential for people in the North.
:09:49. > :09:51.But our economic future must not be defined by Brexit alone.
:09:52. > :09:58.So as we tread that path to becoming an independent sovereign country
:09:59. > :10:00.once again, and forge a new and exciting role
:10:01. > :10:05.for our nation in the world, let us resolve to tackle
:10:06. > :10:08.the challenges we face at home with renewed vigour -
:10:09. > :10:09.dealing with the deficit, raising our productivity,
:10:10. > :10:19.rebalancing our economy, rebuilding our infrastructure.
:10:20. > :10:22.And ensuring that everyone, in every part of our country,
:10:23. > :10:29.can contribute to and benefit from the growth that follows.
:10:30. > :10:34.Paying our way in the world, standing tall amongst our
:10:35. > :10:38.competitors, attracting the brightest and the best
:10:39. > :10:43.to deliver the vibrant, successful economy that will mean
:10:44. > :10:46.when future generations look back on our decision in 2016,
:10:47. > :10:50.they will see not the end of an era, but the beginning of a new age -
:10:51. > :10:52.not a country turning inward, but a nation reaching out
:10:53. > :11:07.decisively, confidently, to grasp new opportunities.
:11:08. > :11:09.A bigger, better, greater Britain, truly a country that
:11:10. > :11:24.Both the new Chancellor and the Prime Minister
:11:25. > :11:27.are trying to rebrand the Tories as the workers' party,
:11:28. > :11:30.but I asked David Gauke, he's the Chief Secretary to the Treasury,
:11:31. > :11:32.how could that be when almost six million workers
:11:33. > :11:44.You ensure that those people pay less in tax,
:11:45. > :11:47.you ensure that you have a higher national living wage,
:11:48. > :11:55.But, actually, I come back to this point - if we want to have
:11:56. > :12:00.a high-wage, high-skill economy, we've got to make sure that we've
:12:01. > :12:02.got the environment in place to improve our skills,
:12:03. > :12:07.And also, I'll make this point, it is very important
:12:08. > :12:12.that we are a country that continues to create lots of jobs.
:12:13. > :12:15.And our record of the last six years in terms of job creation,
:12:16. > :12:18.as a country, is extremely strong by any standards, historical
:12:19. > :12:24.And, it is, you know, it is good that we are not a society that's
:12:25. > :12:30.For six years, indeed, in the run-up to the 2010 election,
:12:31. > :12:32.so more than six years, your party told us that the guiding
:12:33. > :12:36.light in its welfare reforms and its attitude to the economy
:12:37. > :12:45.That if you got a job, and did the right thing,
:12:46. > :12:51.which Mr Osborne used to say all the time, it would pay to work.
:12:52. > :12:56.And yet six years after you've been in power, 50% of our fellow citizens
:12:57. > :13:03.who are in poverty have at least one family member in work.
:13:04. > :13:06.So, in what way has that made work pay?
:13:07. > :13:09.They're working, and they live in poverty.
:13:10. > :13:13.Well, what we've seen is a significant increase
:13:14. > :13:15.in the number of jobs in this country, I think something
:13:16. > :13:23.One of the reasons why we have had this, and it's undoubtedly,
:13:24. > :13:25.you know, a success, and I would say this,
:13:26. > :13:30.But undoubtedly it's been a success of policy in the last six years that
:13:31. > :13:32.employment numbers are as high as they are, and one
:13:33. > :13:34.of the reasons why that has happened is that,
:13:35. > :13:37.actually, welfare reform has played a part, more people are essentially
:13:38. > :13:41.seeing that it is worthwhile for them working.
:13:42. > :13:50.I know you're not going to give us any details, because it's got
:13:51. > :13:53.to wait for the Autumn Statement in November, but are we going
:13:54. > :13:56.to borrow more to invest? As a general principle.
:13:57. > :14:00.I think I would make two points about the Autumn Statement.
:14:01. > :14:02.First of all is the acknowledgement, because of the uncertainty
:14:03. > :14:06.of the Brexit vote, it is likely that tax receipts will be lower
:14:07. > :14:13.than was previously projected, so that means that we are not
:14:14. > :14:16.in a position to meet our 2019-20 surplus target...
:14:17. > :14:19.So, the deficit reduction, it will continue to reduce,
:14:20. > :14:22.but at a slower pace? Umm...Well, we'll see.
:14:23. > :14:27.Oh, it might not even continue to reduce?
:14:28. > :14:30.I'm not going to speculate, because we'll see what the Office
:14:31. > :14:32.for Budget Responsibility determines,
:14:33. > :14:39.The second point is that we are in a set of circumstances
:14:40. > :14:42.where interest rates are very low, the way the gilts market has
:14:43. > :14:44.moved, we can borrow more cheaply than previously.
:14:45. > :14:46.And if there is a case for high-value infrastructure,
:14:47. > :14:48.and we have to be pretty tough about this,
:14:49. > :14:53.this is not about relaxing day-to-day spending.
:14:54. > :14:57.But if there is a case for high-value infrastructure that
:14:58. > :15:00.helps our long-term productivity, then, as the Chancellor,
:15:01. > :15:02.I think, has made clear, we're willing to look at that.
:15:03. > :15:06.We don't know yet how much extra money will be sloshing around,
:15:07. > :15:09.that will have to wait for the Autumn Statement in November,
:15:10. > :15:13.but we do know already two of the beneficiaries:
:15:14. > :15:15.the Communities Secretary, Sajid Javid,
:15:16. > :15:20.and the Transport Secretary, Chris Grayling.
:15:21. > :15:26.Ultimately, we have a responsibility to build more houses,
:15:27. > :15:29.a responsibility not just to our constituents,
:15:30. > :15:37.It is for that reason that we are going to take
:15:38. > :15:42.some unprecedented steps to open up the market.
:15:43. > :15:48.a massive ?3 billion home-builders fund.
:15:49. > :15:53.This major package will help us build more than 225,000 new homes
:15:54. > :15:58.and will create thousands of jobs, up and down the country.
:15:59. > :16:02.Now, second, we will pilot a new initiative,
:16:03. > :16:07.accelerated construction on public land.
:16:08. > :16:16.We will take government-owned land and we'll partner
:16:17. > :16:22.with contractors and investors to speed up house building.
:16:23. > :16:25.We will create new supply chains using things like off-site
:16:26. > :16:29.construction, and we will encourage new models of building
:16:30. > :16:33.to make houses that people want more cheaply and that pace.
:16:34. > :16:38.These measures will allow us to get started
:16:39. > :16:44.We will get more homes built more quickly.
:16:45. > :16:48.Third, we will bring forward a package of measures
:16:49. > :16:50.to encourage urban regeneration and to build on brownfield land.
:16:51. > :16:53.We want to radically increase brownfield development
:16:54. > :16:56.and bring life back to abandoned sites.
:16:57. > :17:03.That means delivering high-quality housing for families,
:17:04. > :17:06.bringing new energy to our high streets and town centres.
:17:07. > :17:08.It means abandoned shopping centres being transformed
:17:09. > :17:10.into new communities, and increasing the density
:17:11. > :17:13.of housing around stations to build homes that people want to live in.
:17:14. > :17:24.The champagne socialist Shadow Foreign Secretary
:17:25. > :17:30.who cringes when she sees the English flag.
:17:31. > :17:38.She already owns at least three houses worth a total of ?4 million.
:17:39. > :17:47.And yet she wants to stop working people from owning the homes
:17:48. > :17:52.raise families in, want to grow old in.
:17:53. > :18:01.Hasn't it been a momentous year for our politics?
:18:02. > :18:06.Ladies and gentlemen, I am enormously proud to have been
:18:07. > :18:10.part of a team that won the argument that Britain has a better
:18:11. > :18:14.and brighter future outside the European Union.
:18:15. > :18:28.But, you know, I'm also really proud
:18:29. > :18:31.to have been part of the team that helped elect our new leader
:18:32. > :18:36.I know she and our team will deliver that better and brighter future,
:18:37. > :18:37.and a country that works for everyone.
:18:38. > :18:48.I travel into Waterloo each day, the trains are packed.
:18:49. > :18:54.20 years ago, around 110,000 people a day use that station.
:18:55. > :19:03.We're providing longer platforms and longer trains,
:19:04. > :19:05.which will help ease that congestion.
:19:06. > :19:08.And it's not just in London - there will be new trains
:19:09. > :19:14.more seats in Manchester, Liverpool, Leeds and here in Birmingham.
:19:15. > :19:16.Ladies and gentlemen, unlike the Labour Party,
:19:17. > :19:19.as Conservatives, we want to move forwards and not backwards.
:19:20. > :19:32.We've built a new railway line that links our major cities,
:19:33. > :19:35.so we've got more space for freight trains and more space for commuter
:19:36. > :19:42.And that, ladies and gentlemen, nothing more, nothing less,
:19:43. > :19:45.is the reason we need to press ahead with HS2.
:19:46. > :19:49.Our whole country will benefit from this new project.
:19:50. > :19:54.I had recently my first experience of a driverless car.
:19:55. > :19:58.And believe me, it's a very unusual experience.
:19:59. > :20:01.But do you know what? It's all of our futures,
:20:02. > :20:04.and I want to say to the motor manufacturers of the world,
:20:05. > :20:07.come to the UK, develop your technology here.
:20:08. > :20:12.the most knowledgeable workforce in the world.
:20:13. > :20:17.and this government will support you.
:20:18. > :20:25.The march of the Brexiteers continues here in Brum,
:20:26. > :20:28.this is now ready much a full-on pro-Brexit party,
:20:29. > :20:31.and today we heard from two leading lights of the Leave campaign -
:20:32. > :20:35.the Environment Secretary, Andrea Leadsom,
:20:36. > :20:41.and the Secretary of State for International Trade, Liam Fox.
:20:42. > :21:03.I can't tell you what a great pleasure it is to be here today.
:21:04. > :21:07.As you all know, I'm so optimistic about our future,
:21:08. > :21:12.following our decision to leave the EU and the chance we now have,
:21:13. > :21:16.to plot a new course for ourselves in the world.
:21:17. > :21:32.we're getting on with the job, putting the country first.
:21:33. > :21:37.Now, I don't know about you, but it seemed to me their
:21:38. > :21:42.leadership election dragged on far too long.
:21:43. > :21:50.If only they'd come to me for advice on how to keep it short!
:21:51. > :21:54.None of us will forget the harrowing images of last winter's floods.
:21:55. > :21:57.And as I saw for myself, last week in York and Leeds,
:21:58. > :22:02.the devastation caused to communities.
:22:03. > :22:05.The maintenance and improvement of flood defences
:22:06. > :22:12.That's why we're spending a record ?2.5 billion on 1500 schemes,
:22:13. > :22:19.which will better protect 300,000 homes.
:22:20. > :22:31.Today, we continue to lead on the environment.
:22:32. > :22:33.Committing to being the first generation
:22:34. > :22:37.to leave it in a better state than we found it.
:22:38. > :22:40.And as we prepare to leave the EU, it's crucial
:22:41. > :22:45.that we provide our farmers with certainty and continuity.
:22:46. > :22:48.So it's really important that we've been able
:22:49. > :22:55.to confirm the same level of agricultural support until 2020.
:22:56. > :22:58.And that we will honour all environmental agreements
:22:59. > :23:01.signed before the Autumn Statement for their lifetime,
:23:02. > :23:06.even if they run beyond our departure from the EU.
:23:07. > :23:17.Last year, we exported more than ?18 billion worth of food and drink,
:23:18. > :23:23.exports are up by 6% and growing strongly.
:23:24. > :23:32.And I can tell you with a particular satisfaction that, only last month,
:23:33. > :23:38.the French voted British lamb their product of the year.
:23:39. > :23:50.The result of our referendum in June was clear.
:23:51. > :23:53.British people instructed us that they wanted to be given
:23:54. > :23:59.more control over the decisions that affect them.
:24:00. > :24:06.And that is what we are working hard to deliver.
:24:07. > :24:08.And that includes getting the deal right for Britain abroad,
:24:09. > :24:11.making a success of our exit from the European Union.
:24:12. > :24:13.And shaping an ambitious global role that puts Britain's interests first.
:24:14. > :24:31.But there are two problems that we have to tackle.
:24:32. > :24:40.In case you have not noticed, this guy did not fall down. Instead of
:24:41. > :24:45.investors fleeing the UK, we have seen a record amount of inward
:24:46. > :24:49.investment. We saw 24 billion investment by SoftBank in Cambridge,
:24:50. > :24:54.as well as a host of others, including Apple and GSK.
:24:55. > :24:56.And why does investment come to Britain?
:24:57. > :24:58.It comes, because we have many natural advantages, advantages
:24:59. > :25:21.When George Osborne was Chancellor, he was all about driving down
:25:22. > :25:23.the deficit and even getting the public finances into surplus.
:25:24. > :25:26.but what about people here at the conference?
:25:27. > :25:30.Do they want to ease off on deficit reduction or crack on?
:25:31. > :25:33.David, hang up the phone and do the mood box!
:25:34. > :25:37.I will probably ease off now we have gone Brexit,
:25:38. > :25:43.OK, ease off because of Brexit. Definitely.
:25:44. > :25:47.To look back at George Osborne's history, I think he did a good job,
:25:48. > :25:49.but you know, many people look at him and think,
:25:50. > :25:54.Was he a bit obsessed about cuts, do you think?
:25:55. > :25:57.Well, maybe... I'm just going to stop you there.
:25:58. > :26:02.Andrea, would you like to do the Daily Politics balls?
:26:03. > :26:05.Your first go at the Daily Politics balls in the Cabinet! No?
:26:06. > :26:10.Are you politely dismissing the balls?
:26:11. > :26:14.Yeah, more cuts? Well...
:26:15. > :26:17.Well, we've got to reduce the deficit.
:26:18. > :26:21.You can't run a country on a deficit budget.
:26:22. > :26:24.We've started, we need to finish what we started.
:26:25. > :26:27.Thick book, what have you got there? Call Me Dave by Lord Ashcroft.
:26:28. > :26:29.I suppose you're allowed to read that now he's gone.
:26:30. > :26:31.You weren't allowed to read that last year!
:26:32. > :26:45.Do you think there is more that can be cut from the public finances?
:26:46. > :26:49.Yes. Such as? Some areas of the health service.
:26:50. > :26:54.Some areas, I meant like the administrators.
:26:55. > :26:56.Who would you rather have a drink with,
:26:57. > :26:57.George Osborne or Philip Hammond?
:26:58. > :26:59.I think George might have the edge, I guess, maybe!
:27:00. > :27:02.Better banter. Yeah, I'd agree.
:27:03. > :27:04.Do think we should have a surplus by 2020?
:27:05. > :27:06.Hopefully, I would say so, yes, definitely.
:27:07. > :27:09.Don't abandon the target, make sure it keeps going.
:27:10. > :27:11.Guys, why are you watching Boris's speech
:27:12. > :27:13.when you could be doing the Daily Politics balls?!
:27:14. > :27:15.Deficit reduction, ease off or crack on?
:27:16. > :27:23.without prime ministerial authorisation?
:27:24. > :27:25.Well, of course, ease off or crack on, what does that mean?
:27:26. > :27:29.Well, we said were going to get rid of the deficit,
:27:30. > :27:31.we're just not going to do a surplus.
:27:32. > :27:34.I've been waiting to do this all year.
:27:35. > :27:36.It's Christmas, here you go, get a ball in!
:27:37. > :27:44.I think it's time to ease off on the austerity,
:27:45. > :27:52.We've got more important things on the table.
:27:53. > :27:54.Deficit reduction, crack on or ease off?
:27:55. > :27:57.When do you want it gone by? As soon as possible.
:27:58. > :27:59.Well, Philip Hammond, I hope you were watching,
:28:00. > :28:01.because your party faithful have issued your instructions
:28:02. > :28:03.when it comes to the deficit - slightly unscientifically.
:28:04. > :28:09.Loads of them want you to crack on with getting it down!
:28:10. > :28:13.on the day that fiscal consolidation,
:28:14. > :28:16.which has been at the centre of Tory economic policy since 2010,
:28:17. > :28:23.Who knows what might happen tomorrow?
:28:24. > :28:26.Home Secretary Amber Rudd takes to the stage -
:28:27. > :28:30.Work and Pensions Secretary Damian Green is also speaking -
:28:31. > :28:33.what's his approach to welfare reform?
:28:34. > :28:37.And what exactly are Mrs May's plans to expand grammar schools?
:28:38. > :28:40.Perhaps Education Secretary Justine Greening will tell us.
:28:41. > :28:44.I'll be back in the thick of it tomorrow at noon with another
:28:45. > :28:47.edition of the Daily Politics here from Birmingham on BBC Two,
:28:48. > :28:53.and then again after Newsnight tomorrow night
:28:54. > :28:58.Until then, nighty-night, don't let the budget deficit bite.