08/03/2017 BBC News at Six


08/03/2017

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The Chancellor's Budget - he hits 2.5 million

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self-employed with higher National Insurance contributions.

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REPORTER: Any spare cash in there, Chancellor?

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That's despite pledging not to in the party manifesto.

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But Mr Hammond says his budget promises a better future.

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We embark on this next chapter of our history, confident in

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our strengths and clear in our determination

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to build a stronger, fairer, better Britain.

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It demonstrates again the appalling priorities of this Government.

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Another year, tax breaks for the few, public

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An extra ?2 billion is found for social care in England to be

:00:42.:00:51.

We'll be looking at the impact of today's budget and how

:00:52.:00:55.

The missing airman Corrie McKeague - now the police say they believe his

:00:56.:01:01.

Leaked documents apparently from the CIA suggest it could be.

:01:02.:01:10.

And coming up in Sportsday on BBC News - a five match ban.

:01:11.:01:14.

Bournemouth defender Tyrone Mings is given his punishment for stamping

:01:15.:01:16.

Good evening and welcome to the BBC News at Six.

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The Chancellor has delivered his last Spring Budget and announced

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a few surprises, if no eye-catching giveaways.

:01:49.:01:52.

The overall economic picture is little changed, giving him

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But Philip Hammond told a packed House of Commons he had managed

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to find an extra ?2 billion for social care in England to be

:02:01.:02:03.

A more controversial pledge was his decision to increase

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National Insurance contributions for almost 2.5 million people -

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despite a Conservative manifesto promise that National Insurance

:02:10.:02:11.

Mr Hammond also tackled criticism of the Government's plans

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to increase business rates in England and Wales by promising

:02:17.:02:19.

an emergency relief fund for those businesses hit hardest -

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and by capping the increase for most pubs.

:02:22.:02:27.

The Labour leader Jeremy Corbyn described it as a Budget

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Our deputy political editor John Pienaar has our

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Chancellors always hang around in the street on budget day. But

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Brexit, a bit like the weather, turned out nice so far than the

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forecasters expected. The Any spare cash in there? He had more spending

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power thanks to higher growth and lower borrowing. But Brexit will not

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be a smooth or quick journey, not that he is too worried about his

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Labour opponents. At Westminster, as the time came to the budget, his

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boss, rightly or wrongly, seemed to see Labour's labour as a bit of a

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joke. And more than just a bit. And the Chancellor allowed himself to

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keep the tone upbeat. I report today on an economy that has continued to

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confound the commentators with robust growth. A labour market

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delivering record employment and a deficit down by over two thirds. As

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we start our negotiations to exit the European Union, this Budget

:03:34.:03:36.

takes forward our plan to prepare Britain for a brighter future. They

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call him Spreadsheet Phil, businesslike, proud to be boring.

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So, no spending sprees. We on this side will not saddle our children

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with ever-increasing debt. But we would have higher bills to pay and,

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for millions, that meant higher taxes, on company owners, who pay

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themselves in share dividends, and a hike in national insurance for the

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self-employed, though the Tory manifesto did promise to keep

:04:06.:04:08.

national insurance down. Employed and self-employed alike use our

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public services in the same way. But they are not paying for them in the

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same way. National insurance, there is a tax hike for the self-employed.

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Their national insurance contributions will go up to 11% in

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2019. The Chancellor says this will help raise ?145 million. Other

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changes raise much more. But some Tories are unhappy. Painful social

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care is now an urgent problem and the Chancellor had promised MPs he

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would find cash to buy more time. -- paying for social care. The system

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is clearly under pressure and this, in turn, puts pressure on our NHS.

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For social care, an extra ?2 billion over three years, with ?1 billion

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available in the next year. He said the long-term funding options would

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be announced, but what he called Labour's death tax on estates was

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ruled out. Companies, including pubs, are being hit with higher

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business rates. That has worried MPs and forced the Chancellor to pour

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out a little comfort. Small businesses are taken out of paying

:05:16.:05:20.

rates altogether. The revaluation has undoubtedly raised some hard

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cases, especially for those businesses coming out of small

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business rates relief. To ease the burden of business rates, local

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councils will be given ?300 million to help the worst hit. No small

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business losing rate relief will see their bill increased by more than

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?50 a month. There would be a ?1000 discount on rates for but, with a

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rateable value of less than ?100,000, 90% of them. There were

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grounds for new schools, grants for technical education and spending on

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technology and science. Cue another joke at the expense of Jeremy

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Corbyn. Now so far down a black hole that even Stephen Hawking has

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disowned him. He didn't see the joke at all. But the Chancellor was into

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his stride and feeling upbeat. We embark on this next chapter of our

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history, confident in our strengths and clear in our determination to

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build a stronger, fairer, better Britain. I commend this Budget to

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the house. Jeremy Corbyn had his counterattack ready. This was a

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Budget of utter complacency about the state of our economy. But

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complacency about the crisis facing our public services. Complacency

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about the reality of daily life for millions of people in this country.

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The Government was failing in its own ambitions. When she took office,

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the Prime Minister said, if you are one of those families, if you are

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just managing, I want to address you directly. This Budget does not

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address them. It fails them! This budget has done nothing to tackle

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low pay, nothing to solve the state of emergency that persists with so

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many people, demanding and needing health and social care now. Extra

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money for Wales and Scotland, meant to cement the case for the union,

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was never likely to head off nationalist condemnation. It wasn't

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awful Budget, the Brexit Budget that dare not speak its name, it barely

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mentioned Brexit, the biggest risk to the UK and Scottish economy. He

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is wedded to the welfare cuts, and appalling Budget. Taxes are at their

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highest rates, wages are declining, when you mask the creative

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accounting, that is the reality of economic policy. A strong backlash

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for a relatively small-scale Budget. But fierce controversy as normal

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now, on Britain's long march to! . -- Brexit.

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For the economy there's little change.

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It will grow faster than expected for 2017 but then fall back

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Government borrowing will be lower in the short term -

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but over the coming five years we'll still borrow over ?100 billion more

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All that with a huge national debt which is still climbing.

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Our economics correspondent Andy Verity has been

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studying the numbers - and he's with me here.

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The Chancellor's spring budget brought some reasons to be careful,

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with extra funds for those needing social care, those hit by higher

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business rates and a little for the NHS. Just like the daffodils at

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Westminster, it will not last very long.

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In the autumn, the outlook was gloomy. Convinced that leaving the

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EU would hit the economy soon, the Office for Budget Responsibility

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predicted a slowdown. They were wrong. It has brightened up. The

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Chancellor has a giant overdraft, but he is using less of it than he

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thought. Back in the autumn, the prediction

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was for weak growth this year, dropping to 1.4% but picking up

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again a couple of years from now. Nowthe economy's predicted to grow

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much faster this year But after that it's

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expected to slow down - with weaker growth 2-3

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years from now. The economy has had more momentum

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coming through 2016 and into the early months of this year than we

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expected in the autumn. But we haven't changed our view about the

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total growth that the economy can sustain over the next five years. If

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you have more good news at the beginning of the forecast, you have

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slightly weaker growth for the rest. That pattern - faster growth now,

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but a slowdown later on - is reflected in the amount

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the Chancellor has to borrow because, like most Chancellors,

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he spends a lot more In the autumn he thought he'd have

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to borrow ?68 billion this year. But now he'll only have to borrow

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?52 billion because the economy's doing better than expected -

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so he's collecting more in taxes. However, if you look

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at five years from now, he'll still be borrowing ?17 billion

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- the same figure And he's had to find some way

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to raise money so it doesn't Over the whole Parliament,

:10:00.:10:07.

the message today from the Office for Budget Responsibility

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is the challenge remains. Most of the deterioration

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in the public finances over the Parliament that they forecast

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before Christmas stays in place and, mostly as a result of changes

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associated with Brexit, we still have a really challenging

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Parliament to come. So here's the taxing question -

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will those with the biggest If you look at corporations,

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they're getting a tax cut five years Meanwhile, those receiving

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dividends, including 600,000 people who own their own companies,

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will pay an extra ?930 million. And 4 million self-employed people

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earning more than ?16,000 will pay Philip Hammond says those

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tax-raising measures But of course, self-employed people

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asked to pay more in tax The chancellor announced an extra

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?2 billion for social care, admitting the system

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"is clearly under pressure". The money will be spent in England

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over the next three years. While the money has been widely

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welcomed, there's been criticism that it's still not enough money

:11:19.:11:20.

and won't fix a system that's no Our social affairs correspondent

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Alison Holt reports Four times a day, care workers help

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76-year-old Avril with such things as washing, dressing and getting to

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the toilet. The rest of the time, her husband looks after her in their

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Nottinghamshire home. A stroke left her partly paralysed. This is what

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the extra ?2 billion announced for social care will help pay for. The

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couple believe it is something the Chancellor had to do. It's not just

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me that needs it, it's people that can't do nothing. What would you say

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to the Chancellor? Get your hand in your pocket. How would he like it if

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he was sat at home and can't move? And of the money the Chancellor has

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found, councils will get ?1 billion in the coming financial year, with

:12:16.:12:19.

the rest in the following two years to ease the pressures. Care

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companies welcome this, but say the money must reach front line staff.

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Staff need to be paid a salary which represents the work that they

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undertake in the community, travelling around, visiting people

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like Mrs Smith, day in, day out, sometimes four times a day, to give

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them the care that they need. We need to be to support that in terms

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of a proper living wage. At Nottinghamshire County Council, they

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started doing their son the moment the budget speech was finished. They

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say they currently have a funding shortfall of about ?70 million. --

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doing their sums. They calculate that today's announcement will use

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those pressures to the tune of ?70 million. The Labour leader of the

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council had written to the Chancellor warning that the system

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was at breaking point after years of cuts to local authorities. His

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welcome today is cautious. We have still got a temporary money in the

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system, and there still needs to be a longer-term solution because, one

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thing is for sure, we can't carry on the way that we are, treating this

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almost as crisis management. And with more younger adults with

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disabilities needing support, the demand for different types of care

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is also increasing. The Government has promised there will be a Green

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paper which looks at the funding of social care for the future.

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Well, among the most eye catching announcements today,

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are the changes to National Insurance for almost

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2.5 million self-employed - and the cut to the tax

:13:56.:13:58.

The number of self-employed people has been rising steadily over recent

:13:59.:14:01.

Reeta Chakrabarti has been talking to families

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No need to worry about the sums when you are small, that is what your mum

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is for. Charlotte and Sarah are self-employed, starting separate

:14:15.:14:17.

businesses after having children. Charlotte says the Chancellor's hike

:14:18.:14:21.

for national insurance contribution is for people like her is bad news.

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I think it is affecting kitchen table businesses, you know, mums

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starting up after maternity leave. You don't get the same benefits as

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an employed person, if we are sick, we are working through, there is

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nobody to take over. The Chancellor says it is fair and bring you to

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levels that other people have to pay? I guess so, if I was working, I

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would be paying that level anyway. I can't feel too bad about it. Ruth

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also started out as self-employed, but she now runs a larger business

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selling bidding pools, and the national insurance increase will

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affect her. But it should be offset by cuts in corporation tax. The

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Chancellor is taxing business people on eight personal level more. But he

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is sneaking in the corporation tax going down. Overall, the question is

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where the balance lies. Overall, it sounds like you will be roughly...

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Where we were, absolutely. Today's reforms to national insurance

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contributions and previously announced changes means that there

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are winners and losers. Somebody that are self-employed with average

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earnings of ?12,700 will be ?70 per year better off in 2019-20. For a

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self-employed person earning an average of ?17,300, they will be ?20

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worse off. A self-employed management consultant on an average

:15:50.:15:55.

of over ?51,000 would be ?620 worse off per year. There is not much

:15:56.:16:01.

sympathy down the road in Keighley, as a family business that is three

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generations old. They are all classed as employees and all taxed

:16:07.:16:09.

as pay as you earn. They say it is quite right, to the Chancellor's

:16:10.:16:13.

changes. At the moment, they are paying a lot less for very similar

:16:14.:16:17.

amounts of cover and help from the Government. They get the same state

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pension now and they have a lot more flexible at the in their own

:16:23.:16:25.

lifestyle. You think it is right and fair that the Chancellor has done

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this? Absolutely, it is the way forward. Blue sky over Yorkshire

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today. As always on budget day, only for some.

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Other measures from today's Budget - there were no new announcements

:16:38.:16:39.

for tobacco but increases announced previously mean that from tonight,

:16:40.:16:42.

the price of a packet of cigarettes will go up by 35p.

:16:43.:16:49.

And from Monday, a pint of beer will go up by 2p,

:16:50.:16:52.

a bottle of whisky by 36p and a bottle of wine by 10p.

:16:53.:16:55.

There will be ?100 million to fund more GPs in accident and emergency

:16:56.:16:58.

And there will be ?270 million for science and innovation,

:16:59.:17:06.

which includes research into robots and driverless cars.

:17:07.:17:11.

There will be ?90 million for transport in the north

:17:12.:17:13.

of England and ?23 million for the Midlands, to ease

:17:14.:17:15.

And the Scottish Government will be ?350 million better off ,

:17:16.:17:19.

there will be ?200 million for the Welsh Government

:17:20.:17:21.

and ?120 million for the Northern Ireland Executive.

:17:22.:17:31.

Let's take a moment to look at the Budget overall

:17:32.:17:34.

with our political editor Laura Kuenssberg, who's

:17:35.:17:35.

This was a very cautious budget with no showy giveaways -

:17:36.:17:39.

a reflection of the Prime Minister's vision as much as the Chancellor's.

:17:40.:17:43.

I think very much a reflection of the Chancellor's style. Philip

:17:44.:17:49.

Hammond has been a senior Cabinet minister for a long time but this

:17:50.:17:53.

was his first budget. That is a red letter day in number 11. He was

:17:54.:17:57.

relaxed and confident enough to be cracking jokes practically all the

:17:58.:18:03.

way through. But the overall picture is not necessarily happy. Slightly

:18:04.:18:10.

better. More cuts to come and tough times ahead for families. Millions

:18:11.:18:18.

of voters feeling it is pretty tough to make ends meet. Politically,

:18:19.:18:26.

there is a row brewing. We heard about the rises in national

:18:27.:18:29.

insurance payments for some people who are self-employed. That is

:18:30.:18:34.

damaging, potentially, not just because the people affected, it

:18:35.:18:39.

might not be too much money but they might not be pleased about paying

:18:40.:18:45.

more attacks, but also in the Tory manifesto in 2015 the Conservatives

:18:46.:18:48.

made a clear promise not to raise national insurance contributions.

:18:49.:18:53.

The dispute, on a technicality, exactly whether they've broken a

:18:54.:18:57.

promise, but Tory backbenchers are worried about this not just because

:18:58.:19:01.

of the image of breaking a promise but also there are fears that it

:19:02.:19:06.

goes after the Tory tribe, so for a budget that was supposed to be

:19:07.:19:12.

safety first, I don't think the government is going to escape

:19:13.:19:16.

unscathed. It is far too early to say that this budget is going to

:19:17.:19:22.

unravel in the way that some dramatically have.

:19:23.:19:24.

More on the budget later in the programme -

:19:25.:19:27.

All the details of the Chancellors' announcements are there -

:19:28.:19:33.

with updates and analysis from our editors and

:19:34.:19:35.

The Chancellor's Budget - he hits 2.5 million

:19:36.:19:47.

self-employed with higher national insurance contributions.

:19:48.:19:50.

An extra ?2 billion is found for social care in England to be

:19:51.:19:53.

Jose Mourinho says the Rostov pitch isn't

:19:54.:20:01.

good enough to play on, but UEFA says Manchester United's

:20:02.:20:05.

Europa League tie will go ahead as scheduled tomorrow.

:20:06.:20:18.

Are you being spied on as you're watching the news tonight?

:20:19.:20:21.

Is your television hacked into - so that the intelligence agencies

:20:22.:20:23.

That's the extraordinary suggestion in documents -

:20:24.:20:27.

apparently from the CIA - released last night

:20:28.:20:28.

Today the companies which make the devices say they're urgently

:20:29.:20:33.

Here's our Security Correspondent Gordon Corera.

:20:34.:20:41.

If you've got an internet connected TV, that might be possible.

:20:42.:20:53.

Secret documents show how the CIA have turned TVs

:20:54.:20:55.

into bugging devices, giving the capability a codename,

:20:56.:20:57.

Weeping Angel, named it seems after characters

:20:58.:21:01.

A team of security researchers showed me how they've replicated

:21:02.:21:10.

So how is it possible to turn a TV like this into a bugging device?

:21:11.:21:14.

Modern TVs are basically powerful computers.

:21:15.:21:16.

They've got lots of processes on there.

:21:17.:21:17.

But most importantly they have microphones and interanet access.

:21:18.:21:19.

So we have written an application here, the screen is almost blank,

:21:20.:21:22.

it listens to everything we are saying.

:21:23.:21:24.

Once the app's installed, it makes it look like your TV is off

:21:25.:21:30.

We have infected it with malware and now we have a microphone here

:21:31.:21:36.

It is possible that your TV is being used as a spy, as a Big Brother

:21:37.:21:48.

The leaked documents show the CIA worked with Britain's MI5

:21:49.:21:55.

to develop this capability, to target specific individuals.

:21:56.:22:07.

MI5 will not comment but surveillance is a key tool

:22:08.:22:09.

Bugging buildings and cars is something it has

:22:10.:22:13.

The latest digital technology simply offers new ways to do that.

:22:14.:22:16.

For the CIA the leak of hundreds of pages of documents

:22:17.:22:24.

Highlighting its failure to keep its own secrets.

:22:25.:22:26.

And a former head of the agency told the BBC the leak

:22:27.:22:29.

This seems to be an incredibly damaging leak in terms

:22:30.:22:33.

of the tactics, techniques, procedures and tools

:22:34.:22:34.

that we were used by the Central Intelligence agency

:22:35.:22:37.

to conduct legitimate foreign intelligence.

:22:38.:22:41.

In other words it has made my country and my

:22:42.:22:44.

The latest technology has turned on new ways to monitor people.

:22:45.:22:48.

But the debate over what that means for all our privacy is not one

:22:49.:22:51.

More than 30 people have been killed, and dozens wounded,

:22:52.:23:06.

in an attack by Islamic State militants, at a hospital in the

:23:07.:23:09.

Local officials say the three gunmen were dressed as doctors.

:23:10.:23:12.

The security forces killed them after several hours of fighting.

:23:13.:23:19.

Two people - a man and a woman - have died and a second woman has

:23:20.:23:23.

been critically injured after a stabbing at

:23:24.:23:25.

West Midlands Police used stun grenades to break into the flat.

:23:26.:23:29.

Another woman, believed to be the mother, is in hospital.

:23:30.:23:32.

A senior executive at Toyota has suggested the Japanese carmaker may

:23:33.:23:35.

delay deciding whether to build the next Auris model in the UK.

:23:36.:23:38.

He said the decision would be made when more is known

:23:39.:23:40.

about the outcome of Britain's negotiations to leave

:23:41.:23:42.

Toyota currently builds the Auris hatchback at its Burnaston

:23:43.:23:45.

What happened to 23 year old Corrie McKeague?

:23:46.:23:53.

He was working as an RAF airman when he simply

:23:54.:23:56.

vanished during a night out in Bury St Edmunds last September.

:23:57.:23:59.

Now new evidence has come to light linking the signals from his mobile

:24:00.:24:02.

phone to a bin lorry - and the police say they are now

:24:03.:24:05.

confident his body will be found in a local landfill.

:24:06.:24:07.

Our Correspondent Ben Ando sent this report.

:24:08.:24:15.

It's a dirty job but could provide the answers to a mystery that has

:24:16.:24:26.

baffled police for months. The search is focused on this landfill

:24:27.:24:32.

site. He was serving at RAF Waddington. He went on a night with

:24:33.:24:37.

friends in Bury St Edmunds and said he would walk home. He never made

:24:38.:24:45.

it. Corrie was last seen entering a service area at 3am behind some

:24:46.:24:51.

bins. Bin lorry called and then travelled, where his phone pinged.

:24:52.:24:56.

It ended the journey at the landfill site. The please know that they will

:24:57.:25:04.

be criticised for not starting this sooner they said originally they

:25:05.:25:07.

were told the bin lorry was only carrying waste of 11 kilograms. When

:25:08.:25:14.

they learned it was nearer 100 kilograms, that changed everything.

:25:15.:25:22.

That was a sobering moment. We've been committed to this investigation

:25:23.:25:25.

for nearly six months. And the investigating officer. I cannot

:25:26.:25:33.

imagine what it feels like. His family admit they've been frustrated

:25:34.:25:36.

by the investigation but all that matters is finding him. It is not

:25:37.:25:42.

the agony of not knowing. You can still believe that they are alive.

:25:43.:25:59.

We just got to find him first. As the search continues, so does the

:26:00.:26:00.

waiting. More now on our main news:

:26:01.:26:05.

the Budget announced Philip Hammond said

:26:06.:26:07.

there would be more money for social care in England -

:26:08.:26:10.

and he announced increases to National Insurance

:26:11.:26:13.

contributions for millions Our Economics Editor Kamal Ahmed has

:26:14.:26:14.

been tracking every detail - and he's with me here -

:26:15.:26:18.

what's the big message There are a couple of big things to

:26:19.:26:30.

think about as we look back on today's event. Firstly, economic

:26:31.:26:36.

growth is better, but that is short-term. This was actually a very

:26:37.:26:41.

small budget. 28 measures compared to 77 this time last year. Let's

:26:42.:26:47.

expect a lot more for the Autumn budget. It raised two huge issues.

:26:48.:26:55.

This issue about the taxing of work. The world of work as more people are

:26:56.:26:59.

self-employed. Digital companies operate in different ways. I think

:27:00.:27:05.

the setup as well as the chains today on that issue will be a huge

:27:06.:27:10.

debating point over the next few years of this government. The second

:27:11.:27:17.

big issue was social care. The tax increases are almost equal to the

:27:18.:27:23.

amount of new money to be spent. The Treasury knows it is a temporary

:27:24.:27:29.

fix. There will need to be a huge debate about how we pay for an

:27:30.:27:38.

ageing population. Two things announced on how we tax ourselves.

:27:39.:27:46.

Those big issues will come back to us when we talk about this and we

:27:47.:27:57.

have more substantial things to say. Let's take a look at the weather.

:27:58.:28:04.

Sunshine across England and Northern Ireland with temperatures heading up

:28:05.:28:11.

to 13 Celsius. We've been topped and tailed by cloud and it has produced

:28:12.:28:19.

showers. Strong Gale force winds may clip the north of Northern Ireland.

:28:20.:28:24.

We see outbreaks of light rain for southern England and Wales. Still

:28:25.:28:32.

around, during the first part of the day, tomorrow, those showers are

:28:33.:28:37.

confined to the far north. You see the extent of the fine weather. You

:28:38.:28:47.

can see this risk of patchy light rain. We could see 16 Celsius in

:28:48.:28:52.

parts of England. Wherever you are it will feel very pleasant indeed

:28:53.:28:56.

with temperatures getting into double figures. For Scotland, good

:28:57.:29:06.

sunshine. I have to say, it will turn chilly down the east of the UK

:29:07.:29:12.

whereas in the West we have thicker cloud. Heavier for a time in order

:29:13.:29:18.

Northern Ireland. Even though Friday is mild, it will look good. For the

:29:19.:29:30.

weekend, it will be changeable. There will be sunshine and bands of

:29:31.:29:37.

wet weather. Not a wash-out but by Sunday it will turn called. Back to

:29:38.:29:46.

you. That

:29:47.:29:48.

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