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tv   Politics Live  BBC News  October 27, 2021 11:15am-3:01pm BST

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to allow claimants to keep more of the money they earn by changing the taper rate. it's wednesday, it's 11.15, and we're live in westminster where rishi sunak is preparing to deliver his autumn budget and spending review. joining me for this politics live budget special, business editor simonjack, political editor laura kuenssberg and economics editor faisal islam. the chancellor will say the country can move on from the pandemic to an economy
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for a new age of optimism. can his speech deliver on that promise against a backdrop of supply problems, rising energy bills and pressure on household finances? unfortunately sometimes what the government gives with one hand it takes away far more with another. i think the first thing the chancellor should be doing we'll have all the analysis and we'll be speaking to a treasury minister and shadow chancellor rachel reeves. i'm here in bristol, talking to small business owners and asking them what they would like to see coming out of this afternoon's budget announcements. and before the chancellor gets to his feet, we'll hearfrom borisjohnson and keir starmer at pmqs. welcome to you all, to this budget special. let's show you the scene live in westminster, the glorious helicopter shots of the palace of westminster and the river thames. it
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is a big day here, a big day because rishi sunak, the chancellor, will not only be delivering his budget, he will also be delivering his spending review. that will be the three—year departmental spending. there will be lots of facts and figures, which is why i am so delighted to bejoined by figures, which is why i am so delighted to be joined by the figures, which is why i am so delighted to bejoined by the bbc�*s team of experts to talk us through. rishi sunak has left number 11 downing street, he has taken his red box and his speech, and he will be making his way to the commons. that is because we have prime minister's questions, as we mentioned in the headlines. in fact, questions, as we mentioned in the headlines. infact, here questions, as we mentioned in the headlines. in fact, here he is, coming out of that door, with the red box. that was about half an hour ago, for the traditional family photo with his treasury team. now, those of you who are keen eyed might notice that the chief secretary to the treasury, simon clarke, is not there. you have to have a big shot for that team. he has tweeted
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himself that he lives with agoraphobia, and so decided not to take part. we will be talking to him and grilling him about the contents of the speech in that red box. rishi sunak is on his way to the commons. the government will want to mark a different stage, we are not through the pandemic, the virus are still with us, but perhaps not in a state of emergency. there have been words overnight from the treasury, as well as a lot of pre—announcements, told by lindsay hoyle, about an age of optimism. let's look at one of the newspapers here. the daily express, rishi, a new age of optimism, now britain needs you to deliver. can he move on and deliver this optimism, the rather strange phrase, an economy fit for a new age of tourism, a mouth full of rhetoric, that he will be judged on? tourism, a mouth full of rhetoric, that he will bejudged on? it is. tourism, a mouth full of rhetoric, that he will be judged on? that he will be “udged on? it is, it
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is budaet that he will be judged on? it is, it is budget buzzword _ that he will be judged on? it is, it is budget buzzword bingo. - that he will be judged on? it is, it is budget buzzword bingo. which | is budget buzzword bingo. which chancellor doesn't say that he wants people to feel good about the future, here are the incredible things i am doing with your money and everybody can feel comfortable i am in charge. two things to bear in mind, one, the country on the economy has just been absolutely hammered during a real national emergency. but inside government there is a feeling that actually the economic armageddon has not turned out to be as bad as they feared it might be. we will talk about that a lot over the next couple of hours. but of course that changes the politics. while rishi sunak does want people to believe that he is, in his bones, a careful conservative who is not going to be splashing the cash around, he also wants people to believe that this government is actually willing to spend money on things that the public think matter to them. and we are in an era, even beyond the acute emergency of the pandemic, of big spending, high taxing conservative government. and i think this new age of optimism is
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about moving on from the emergency and saying, look, this is what the economy is going to be like. there are huge challenges, and it's about translating that into real life. before we pick up on that, there is also the backdrop of the cost of living concerns that people are having. we have seen soaring energy bills, rising petrol prices and fears of inflation?— bills, rising petrol prices and fears of inflation? ~ ., ., fears of inflation? think of some of the warm up _ fears of inflation? think of some of the warm up announcements, - fears of inflation? think of some of. the warm up announcements, bigger national minimum wage, pay rises coming for public—sector workers, except that could quite easily albeit not inflation. what ends up feeling in your pocket is not the same as what chancellors can talk about and big statements of the dispatch box. this about and big statements of the dispatch bom— about and big statements of the disatch box. , , ., ., ., ., , dispatch box. this tension laura has outlined, dispatch box. this tension laura has outlined. the _ dispatch box. this tension laura has outlined, the era _ dispatch box. this tension laura has outlined, the era of— dispatch box. this tension laura has outlined, the era of big _ dispatch box. this tension laura has outlined, the era of big spending . outlined, the era of big spending because of a pandemic, we had a foretaste of 20 billion or so pledges to spend even more. it is not a complete picture, of course. and that is what we are going to hearfrom. do you and that is what we are going to hear from. do you think there will be able to give up on that era of big spending? be able to give up on that era of big spending?— be able to give up on that era of bi sendin~?~ ., big spending? when you look at the
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pre-announcements, _ big spending? when you look at the pre-announcements, they - big spending? when you look at the pre-announcements, they have - big spending? when you look at the l pre-announcements, they have been pre—announcements, they have been designed _ pre—announcements, they have been designed to— pre—announcements, they have been designed to sound as big as possible. they have been stretched over a _ possible. they have been stretched over a period of years, it is mainly capital— over a period of years, it is mainly capital spending. so that is long—term investment spending on things— long—term investment spending on things like — long—term investment spending on things like nhs equipment, much—needed to deal with the huge waiting _ much—needed to deal with the huge waiting lists, but that has long—term spending. it doesn't necessarily count against the key borrowing — necessarily count against the key borrowing targets, for example. even at 20 _ borrowing targets, for example. even at 20 billion, which is a lot of money, — at 20 billion, which is a lot of money, when you consider a spending review, _ money, when you consider a spending review, day—to—day spending is £450 biiiion— review, day—to—day spending is £450 billion per— review, day—to—day spending is £450 billion per year, you stretch that over_ billion per year, you stretch that over a _ billion per year, you stretch that over a per— billion per year, you stretch that overa peryear billion per year, you stretch that over a per year basis, billion per year, you stretch that overa peryear basis, it billion per year, you stretch that over a per year basis, it is not quite — over a per year basis, it is not quite as— over a per year basis, it is not quite as big _ over a per year basis, it is not quite as big as it sounds. if you read _ quite as big as it sounds. if you read between the lines there, i think— read between the lines there, i think it — read between the lines there, i think it is — read between the lines there, i think it is going to be quite a tight— think it is going to be quite a tight series of spending decisions that they— tight series of spending decisions that they have made. that's because, as you _ that they have made. that's because, as you say, _ that they have made. that's because, as you say, trying to decipher this new age _ as you say, trying to decipher this new age rhetoric, it is sort of moving — new age rhetoric, it is sort of moving on— new age rhetoric, it is sort of moving on from two years nearly of emergency— moving on from two years nearly of emergency rescue rishi if you like, to re—establish himself as the chancellor he would have wanted to
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be from _ chancellor he would have wanted to be from the beginning. which is fiscally— be from the beginning. which is fiscally conservative, sound public finances. — fiscally conservative, sound public finances, having the private sector invest— finances, having the private sector invest in— finances, having the private sector invest in this new era of high skiiis. — invest in this new era of high skills, high productivity, high wages — skills, high productivity, high wages. the issue is, every single chanceiior— wages. the issue is, every single chancellor has said over the past 20 years. _ chancellor has said over the past 20 years. and _ chancellor has said over the past 20 years, and long before, that is what they want— years, and long before, that is what they want to achieve with a skills revolution — they want to achieve with a skills revolution. and it has proved devilishly— revolution. and it has proved devilishly difficult.— revolution. and it has proved devilishly difficult. since you have been mentioning _ devilishly difficult. since you have been mentioning some _ devilishly difficult. since you have been mentioning some of- devilishly difficult. since you have been mentioning some of the - been mentioning some of the announcements that have been made, let's just show our viewers and give a summary of some of those. the first one, of course, the really big one that was already announced a while ago, national insurance rise of 1.25% to fund social care and nhs recovery. that was very controversial at the time. the £5.9 billion to tackle nhs england backlog. that is very much the capital spending that faisal was talking about. it will go on buildings and kit in the main. there have been queries about staff shortages in order to deliver that.
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£6.9 billion for england's transport network, again, a pretty significant amount. as we understand it, i think it is £1.5 billion that is actually new money. this will be for the transport network in cities outside london. the wage increases that laura talked about, the national living wage is to rise to £9.50 an hour, for workers over 23. there is also an increase in the national minimum wage for those younger than that. and perhaps the most recent announcement in the long string of pre—announcements, a freeze on public sector pay to end. we don't know the details of that. inflation may eat into some of that. what is left, simon? from a business perspective, what would they like to see? �* , ,, perspective, what would they like to see? �* , , , , perspective, what would they like to see? , ,, , , , perspective, what would they like to see? business feels pretty bruised, the low point _ see? business feels pretty bruised, the low point was _ see? business feels pretty bruised, the low point was the _ see? business feels pretty bruised, the low point was the four - see? business feels pretty bruised, the low point was the four letter - the low point was the four letter dismissal— the low point was the four letter dismissal of— the low point was the four letter
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dismissal of business _ the low point was the four letter dismissal of business fears - the low point was the four letter dismissal of business fears from boris _ dismissal of business fears from borisjohnson, _ dismissal of business fears from borisjohnson, that— dismissal of business fears from boris johnson, that was - dismissal of business fears from boris johnson, that was words, i dismissal of business fears from i boris johnson, that was words, but they matter— boris johnson, that was words, but they matter because _ boris johnson, that was words, but they matter because of— boris johnson, that was words, but they matter because of tone. - boris johnson, that was words, but they matter because of tone. then| boris johnson, that was words, but. they matter because of tone. then we -ot they matter because of tone. then we got the _ they matter because of tone. then we got the sticks— they matter because of tone. then we got the sticks and _ they matter because of tone. then we got the sticks and stones, _ they matter because of tone. then we got the sticks and stones, the - got the sticks and stones, the massive — got the sticks and stones, the massive rise _ got the sticks and stones, the massive rise in _ got the sticks and stones, the massive rise in corporation i got the sticks and stones, thel massive rise in corporation tax got the sticks and stones, the - massive rise in corporation tax that takes _ massive rise in corporation tax that takes effect — massive rise in corporation tax that takes effect in _ massive rise in corporation tax that takes effect in 2023, _ massive rise in corporation tax that takes effect in 2023, at _ massive rise in corporation tax that takes effect in 2023, at a _ massive rise in corporation tax that takes effect in 2023, at a stroke, . takes effect in 2023, at a stroke, reversing — takes effect in 2023, at a stroke, reversing ten _ takes effect in 2023, at a stroke, reversing ten years _ takes effect in 2023, at a stroke, reversing ten years of _ takes effect in 2023, at a stroke, l reversing ten years of conservative party— reversing ten years of conservative party tax _ reversing ten years of conservative party tax policy— reversing ten years of conservative party tax policy towards _ reversing ten years of conservative party tax policy towards business. i party tax policy towards business. you then — party tax policy towards business. you then had _ party tax policy towards business. you then had the _ party tax policy towards business. you then had the rise _ party tax policy towards business. you then had the rise in _ party tax policy towards business. you then had the rise in employerj you then had the rise in employer national— you then had the rise in employer national insurance, _ you then had the rise in employer national insurance, the _ you then had the rise in employer national insurance, the rise - you then had the rise in employer national insurance, the rise in- national insurance, the rise in wages. — national insurance, the rise in wages. the _ national insurance, the rise in wages, the national- national insurance, the rise in wages, the national living. national insurance, the rise in. wages, the national living wage national insurance, the rise in- wages, the national living wage has been audible. — wages, the national living wage has been audible, but _ wages, the national living wage has been audible, but a _ wages, the national living wage has been audible, but a cost _ wages, the national living wage has been audible, but a cost for- been audible, but a cost for business _ been audible, but a cost for business. they— been audible, but a cost for business. they feel- been audible, but a cost for business. they feel they . been audible, but a cost for. business. they feel they have been audible, but a cost for- business. they feel they have been a punching _ business. they feel they have been a punching bag — business. they feel they have been a punching bag for— business. they feel they have been a punching bag for that. _ business. they feel they have been a punching bag for that. and _ business. they feel they have been a punching bag for that. and then- business. they feel they have been a punching bag for that. and then we l punching bag for that. and then we have htv _ punching bag for that. and then we have htv or— punching bag for that. and then we have htv or fuel— punching bag for that. and then we have htv or fuel shortages, - punching bag for that. and then we have htv or fuel shortages, they. punching bag for that. and then we i have htv or fuel shortages, they say they have _ have htv or fuel shortages, they say they have been — have htv or fuel shortages, they say they have been under— have htv or fuel shortages, they say they have been under a _ have htv or fuel shortages, they say they have been under a resting - have htv or fuel shortages, they say they have been under a resting full. they have been under a resting full stop the _ they have been under a resting full stop the treasury— they have been under a resting full stop the treasury will— they have been under a resting full stop the treasury will say- they have been under a resting full stop the treasury will say the - they have been under a resting fulll stop the treasury will say the small matter _ stop the treasury will say the small matter of _ stop the treasury will say the small matter of paying _ stop the treasury will say the small matter of paying 11 _ stop the treasury will say the small matter of paying 11 million - stop the treasury will say the small matter of paying 11 million people l matter of paying 11 million people for the _ matter of paying 11 million people for the best— matter of paying 11 million people for the best part _ matter of paying 11 million people for the best part of— matter of paying 11 million people for the best part of 18— matter of paying 11 million people. for the best part of 18 months, and then we _ for the best part of 18 months, and then we have — for the best part of 18 months, and then we have the _ for the best part of 18 months, and then we have the tax _ for the best part of 18 months, and then we have the tax system - for the best part of 18 months, and then we have the tax system that i for the best part of 18 months, andl then we have the tax system that is rewarding _ then we have the tax system that is rewarding businesses _ then we have the tax system that is rewarding businesses that - then we have the tax system that is rewarding businesses that want - then we have the tax system that is rewarding businesses that want to i rewarding businesses that want to invest. _ rewarding businesses that want to invest. the — rewarding businesses that want to invest, the so—called _ rewarding businesses that want to invest, the so—called super- invest, the so—called super deduction _ invest, the so—called super deduction. every— invest, the so—called super deduction. every £1 - invest, the so—called super deduction. every £1 you - invest, the so—called super- deduction. every £1 you invest, you -et deduction. every £1 you invest, you get £130 _ deduction. every £1 you invest, you get £130 back— deduction. every £1 you invest, you get £130 back in— deduction. every £1 you invest, you get £1.30 back in tax— deduction. every £1 you invest, you get £1.30 back in tax relief. - deduction. every £1 you invest, you get £1.30 back in tax relief. that i get £1.30 back in tax relief. that comes— get £1.30 back in tax relief. that comes to — get £1.30 back in tax relief. that comes to an— get £1.30 back in tax relief. that comes to an end _ get £1.30 back in tax relief. that comes to an end in _ get £1.30 back in tax relief. that comes to an end in 2023, - get £1.30 back in tax relief. that comes to an end in 2023, the i get £1.30 back in tax relief. that i comes to an end in 2023, the same time _ comes to an end in 2023, the same time as— comes to an end in 2023, the same time as the — comes to an end in 2023, the same time as the corporation _ comes to an end in 2023, the same time as the corporation tax - comes to an end in 2023, the same time as the corporation tax goes i comes to an end in 2023, the same l time as the corporation tax goes up. a real— time as the corporation tax goes up. a real guillotine _ time as the corporation tax goes up. a real guillotine moment _ time as the corporation tax goes up. a real guillotine moment for- a real guillotine moment for business _ a real guillotine moment for business. they— a real guillotine moment for business. they will- a real guillotine moment for business. they will hope - a real guillotine moment for business. they will hope nol a real guillotine moment for- business. they will hope no more taxes _ business. they will hope no more taxes please, _ business. they will hope no more taxes please, and _
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business. they will hope no more taxes please, and can— business. they will hope no more taxes please, and can you - business. they will hope no more taxes please, and can you have . business. they will hope no more taxes please, and can you have a| taxes please, and can you have a more _ taxes please, and can you have a more constructive _ taxes please, and can you have a more constructive tone? - taxes please, and can you have a more constructive tone? that - more constructive tone? that relationship _ more constructive tone? that relationship has _ more constructive tone? that relationship has been - more constructive tone? that| relationship has been strained more constructive tone? that - relationship has been strained over the last— relationship has been strained over the last couple _ relationship has been strained over the last couple of— relationship has been strained over the last couple of years. _ relationship has been strained over the last couple of years. it- relationship has been strained over the last couple of years.— the last couple of years. it leans this idea of _ the last couple of years. it leans this idea of the _ the last couple of years. it leans this idea of the boris _ the last couple of years. it leans this idea of the boris johnson i the last couple of years. it leans i this idea of the boris johnson high this idea of the borisjohnson high skill, high wage economy. the risks associated with that, particularly if the extra money, if they are getting at, is going to be eaten up by things like higher prices. are you expecting anything else? because of the pre—announcements, we talk about the traditional rabbit been pulled out of the hat? i about the traditional rabbit been pulled out of the hat?— about the traditional rabbit been pulled out of the hat? i think there will be something, _ pulled out of the hat? i think there will be something, jo, _ pulled out of the hat? i think there will be something, jo, there - pulled out of the hat? i think there| will be something, jo, there always is. no chancellor can resist the temptation to flourish something at the end and get their troops behind them cheering. we do expect the government will make some tweaks to universal credit, the benefit paid to people in work and people that don't get paid very much, and also to people that are out of work. viewers, i am sure, will remember us talking about this week after week, the government taking away the £20 extra a week that was brought in during the pandemic. i would be amazed if that comes back. but i think the government is going to make it possible for people that get that benefit to keep more of their
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wages by tweaking the so—called taper, to use the technical bit. i suspect there might be extra help to help people cope with rising energy prices, may be an increase in what is known as the warm homes scheme. people that find it hard to make ends meet get a bit of extra cash to help with energy bills. at the overall clash here is what is the reality between someone who is seeing their energy bills going up, someone who might have had a pay rise but their weekly shop has gone up rise but their weekly shop has gone up by £20, where is the tension between that and rishi sunak telling people to be optimistic about the wonderful future ahead? that people to be optimistic about the wonderful future ahead?- people to be optimistic about the wonderful future ahead? that is a aood wonderful future ahead? that is a good point _ wonderful future ahead? that is a good point to _ wonderful future ahead? that is a good point to go _ wonderful future ahead? that is a good point to go to _ wonderful future ahead? that is a good point to go to bristol - wonderful future ahead? that is a good point to go to bristol and i wonderful future ahead? that is a. good point to go to bristol and find out what people there are thinking, and what they would like to hear from the chancellor, rishi sunak, in the vein of higher prices and perhaps also the view from small businesses. andrew plant is there. lots of headlines already in bristol about some other things we have already heard about, particularly
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the investment in regional public transport. there are real with some of the network. on buses in bristol, for example between bristol and bath, it for example between bristol and bath,itis for example between bristol and bath, it is only ten miles and hundreds of people make thatjourney every day, but it can take well over an hour if you are travelling by bus. not much quicker sometimes if you are travelling by car. from talking to small businesses here over the past couple of days, it is still all about the recovery from the pandemic. they say the recovery has onlyjust the pandemic. they say the recovery has only just started the pandemic. they say the recovery has onlyjust started and they want a lot more help with that. they say it is still casting a very long shadow. we have some guests, first, lucy, from the royal college of nursing. we have heard about a big investment in the nhs. is that welcome, and what would you like to see coming from the chancellor? brute see coming from the chancellor? we are asking for 12.5% for our members _ are asking for 12.5% for our members. we want them to be recognised for the work they do in their— recognised for the work they do in their expertise. the other thing we would _ their expertise. the other thing we would like — their expertise. the other thing we would like to see today, from the chancellor, is a clear strategy in the workforce, as well as a clear steer— the workforce, as well as a clear steer on— the workforce, as well as a clear steer on the nursing education, where — steer on the nursing education, where it— steer on the nursing education, where it is— steer on the nursing education, where it is fully funded. we heard about the unfreezing _ where it is fully funded. we heard about the unfreezing of _ where it is fully funded. we heard about the unfreezing of public- about the unfreezing of public sector pay and have some of that
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money will go to things like scanning centres, perhaps in shopping centres. is that welcome and will it help? it is shopping centres. is that welcome and will it help?— and will it help? it is a good thing to know that _ and will it help? it is a good thing to know that there _ and will it help? it is a good thing to know that there are _ and will it help? it is a good thing to know that there are going - and will it help? it is a good thing to know that there are going to i and will it help? it is a good thing | to know that there are going to be ciinics _ to know that there are going to be ciinics out — to know that there are going to be clinics out there and other buildings. what the nursing staff is asking _ buildings. what the nursing staff is asking for— buildings. what the nursing staff is asking for is extra staff. the staffing _ asking for is extra staff. the staffing shortage in this country is immense — staffing shortage in this country is immense. staff are overwhelmed. they are exhausted. what we want to see a small— are exhausted. what we want to see a small staff— are exhausted. what we want to see a small staff at the places of work. thank _ small staff at the places of work. thank you — small staff at the places of work. thank you very much indeed. we also have the honour. you run a small business in bristol, don't you? you were a musician before the pandemic. —— lianna. i were a musician before the pandemic. -- lianna. , ., ., , , -- lianna. i 'ust want to see help for more — -- lianna. ijust want to see help for more working _ -- lianna. ijust want to see help for more working class _ -- lianna. ijust want to see help for more working class people. . -- lianna. ijust want to see help for more working class people. i | for more working class people. i don't _ for more working class people. i don't think— for more working class people. i don't think it is going to happen. they— don't think it is going to happen. they need — don't think it is going to happen. they need to tax the big corporations. they've got to stop taxing _ corporations. they've got to stop taxing the — corporations. they've got to stop taxing the working class people. i work— taxing the working class people. i work pretty much seven days a week, and it— work pretty much seven days a week, and it is— work pretty much seven days a week, and it is like _ work pretty much seven days a week, and it is like i— work pretty much seven days a week, and it is like i am still struggling to get— and it is like i am still struggling to get by — and it is like i am still struggling to get by. i feel that theyjust need — to get by. i feel that theyjust need to— to get by. i feel that theyjust need to move forward with how we do things _ need to move forward with how we do things. unfortunately, that is probably— things. unfortunately, that is probably not going to happen. i know
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that ou probably not going to happen. i know that you have — probably not going to happen. i know that you have been _ probably not going to happen. i know that you have been on _ probably not going to happen. i know that you have been on universal- that you have been on universal credit, lianna. what would you like to see happen with that and how would it affect you, losing £20? it does affect me, itjust means i'm going _ does affect me, itjust means i'm going to — does affect me, itjust means i'm going to be — does affect me, itjust means i'm going to be working harder. but how can i going to be working harder. but how can i work— going to be working harder. but how can i work more than seven days a week, _ can i work more than seven days a week, which— can i work more than seven days a week, which i am already working? between _ week, which i am already working? between doing music, freelance teaching — between doing music, freelance teaching. and i run my own business. during _ teaching. and i run my own business. during the _ teaching. and i run my own business. during the pandemic, i employed other— during the pandemic, i employed other people, people that lost their work _ other people, people that lost their work my— other people, people that lost their work. my ethos was to employ other musicians _ work. my ethos was to employ other musicians and help them. so how am i working _ musicians and help them. so how am i working more — musicians and help them. so how am i working more to get that bit of extra _ working more to get that bit of extra money to help me and my family? — extra money to help me and my famil ? ., ~ extra money to help me and my famil ? ., ,, i. , . ., family? thank you very much for “oininu family? thank you very much for joining us- _ family? thank you very much for joining us- we — family? thank you very much for joining us. we will _ family? thank you very much for joining us. we will hear - family? thank you very much for joining us. we will hear what - family? thank you very much forj joining us. we will hear what the chancellor has to say at about 12.30. ., ~ chancellor has to say at about 12.30. ., , ,., chancellor has to say at about 12.30. ., , y., r chancellor has to say at about 12.30. ., ~ ~ ~ , ., 12.30. thank you, andrew in bristol. i'm auoin 12.30. thank you, andrew in bristol. l'm going to — 12.30. thank you, andrew in bristol. l'm going to draw— 12.30. thank you, andrew in bristol. i'm going to draw your _ 12.30. thank you, andrew in bristol. i'm going to draw your attention - 12.30. thank you, andrew in bristol. i'm going to draw your attention to l i'm going to draw your attention to some graphs we are going to show you about the economic backdrop to the budget, because as the team were saying, we were expecting slightly
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better figures. saying, we were expecting slightly betterfigures. let's saying, we were expecting slightly better figures. let's look at government borrowing as a percentage of gdp. you can see the financial crash in 2008. it has been decreasing. it shoots up to 14.5%. now that is the highest, since 1946 when borrowing was at 15.2%, that was part of clement attlee's measures to help the nation recover from the second world war. here is something you are likely to hear the government talking about today, and this is about growth forecasts, the uk, in relation to g7 countries and there is the uk on 6.8%, the they are the imf figures, slightly above france and comfortably ahead of the eurozone average but faisal, that is not the computer picture, is it? you can see why — not the computer picture, is it? gm. can see why politicians would cling on that, but i vividly remember
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interviewing the chancellor when the, we had the previous year's figures and he said they weren't comparable, so, you know, suddenly they are, when we are top of the list. the truth is that is partly a trampoline like bounce back, the fact we had the worst figures the year before. it is welcome it has happened. it is welcome we have bounced back, buti happened. it is welcome we have bounced back, but i think there is a difference between a rebound and a kind of sustained recovery. it is interesting, that a fundamental judgement contained within these numbers from the chancellor is that the recovery has had the support from tax and spend policy it needs, like, to use a bad analogy, it doesn't need a boosterjab right now but at the same time, unexpected from six months ago so we will get better borrowing forecast, better growth forecasts, unemployment. the fact that there will be forecast it so not even peak about 5.5%, we would have seen that as a miracle,
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given where the forecasts were two years ago, but, that borrowing forecast will come down, and indeed, it could come down below two or three % which means on a current basis, that stripping out investment spending he could end up having a surplus, he will end up, he will bring forward new rules i think to restain his borrowing going forward, we have had a lot load of these things, they are supposed to signal credibility. share things, they are supposed to signal credibili . �* , credibility. are they meeting -- meaningful. _ credibility. are they meeting -- meaningful, chancellor- credibility. are they meeting -- meaningful, chancellor love - credibility. are they meeting -- i meaningful, chancellor love them, credibility. are they meeting -- - meaningful, chancellor love them, do they sort of say the same kind of thing when they bring them? basically it allows you to spend money on equipment and infrastructure, that have a return over five, infrastructure, that have a return overfive, ten, 15 year, so a hospital, a road, equipment but not salaries are and staff, 0k, hospital, a road, equipment but not salaries are and staff, ok, that is essentially the difference, a bit more complicated. 0ne essentially the difference, a bit more complicated. one the patterns we will see is a lot the spending
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will be pushed into capital but the current spending will be kept restricted so you will get the phenomenon, potentially of the equipment being there to deal with the waiting lists for example, but what about the staff? what about the pay? what about the number of operators of these mri scanners? look for that pattern across a lot of spending because it is easy, i think with the rules we are going to get, we haven't got them by the way, easier do that than not. they have been broken routinely, for the chancellor, this is about him setting his fiscal cred bit he came into office at number 11, spent hundreds of billions on an emergency understandably, and this is his cans to say this is the chancellor i am, both for the country but to the market. ., ., , , market. now that is interesting, because we _ market. now that is interesting, because we have _ market. now that is interesting, because we have had _ market. now that is interesting, because we have had several - market. now that is interesting, - because we have had several months i would say, of reports of fractious relationships or relations i should say between number ten and 11, boris johnson, big spenders, wants to do the big infrastructure thing that
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faisal has been talking about, and, just as you have said, faisal, a number 11, just as you have said, faisal, a number11, rishi sunak just as you have said, faisal, a number 11, rishi sunak wanting to try and show that he is still a what we call a fiscal conservative. have they ironed out their differences? i they ironed out their differences? i think mood music between the next door neighbours is slightly better thanit door neighbours is slightly better than it was a few months ago, it has been a bit of a bumpy time because there is an logical clash there, you know, borisjohnson likes big project, he likes big spending, he likes to be able to sound enthusiastic and bold and big, rishi sunak is by nature a fiscal hawk, to use that sort of political metaphor, he is somebody in the tory tradition of being very careful, with money, and very, very much a believer in the principle of sound money, if, you can't spend if you haven't got the cost. borrowing can come in for long—term priorities, it is ok to have a big giant mortgage in order to do big important thing, but what
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is not ok for someone like rishi sunak, is to be borrowing loads of money for the things that the government has to do every day, and thatis government has to do every day, and that is why the fiscal rules are making a come back, they didn't disappear off into the ether but from a political point of view, i think he has no choice but to introduce them, notjust because labour has row introduced their rule, in the conservative party there is un's, concern about how this government is wanting to squat in the middle of the political road, tax big, and spend big and for a lot of conservatives, that is not very comfortable, especially when it is with that anti—business rhetoric that simon was talking about. to return to that, this highly skilled economy, again, directed to some extent at business, what has been the response to the announcements of the response to the announcements of the pay freeze being lifted on public sector, rising wages in the private sector. it is public sector, rising wages in the private sector.— private sector. it is interesting because you — private sector. it is interesting because you heard _ private sector. it is interesting because you heard boris - private sector. it is interesting i because you heard boris johnson private sector. it is interesting - because you heard boris johnson at because you heard borisjohnson at the tory— because you heard borisjohnson at the tory party conference saying
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hiring _ the tory party conference saying hiring wages is a good thing, hurray. — hiring wages is a good thing, hurray. in_ hiring wages is a good thing, hurray, in economics you will be told you — hurray, in economics you will be told you get your productivity in first, _ told you get your productivity in first, then — told you get your productivity in first, then high wages not the opener— first, then high wages not the opener way round, first, then high wages not the openerway round, some first, then high wages not the opener way round, some people are saying _ opener way round, some people are saying it _ opener way round, some people are saying it is _ opener way round, some people are saying it is economically it lily rat. saying it is economically it lily rat what _ saying it is economically it lily rat. what business's concern is we were _ rat. what business's concern is we were trying — rat. what business's concern is we were trying to be the best place to start and _ were trying to be the best place to start and grow a business, they talk about_ start and grow a business, they talk about the _ start and grow a business, they talk about the headline corporation tax rate, _ about the headline corporation tax rate. you — about the headline corporation tax rate, you add business rates, corporation tax, you add those in, hatiohat_ corporation tax, you add those in, national insurance weeks go from near— national insurance weeks go from near the — national insurance weeks go from near the top of the competitive leer to hear— near the top of the competitive leer to hear the — near the top of the competitive leer to near the bottom, so at the moment, _ to near the bottom, so at the moment, people, on the conservative side will— moment, people, on the conservative side will say _ moment, people, on the conservative side will say this isn't the low tax low spending conservative party that we know _ low spending conservative party that we know and love, in facts we have ended _ we know and love, in facts we have ended up— we know and love, in facts we have ended up is— we know and love, in facts we have ended up is a high tax high spend and oh— ended up is a high tax high spend and orie— ended up is a high tax high spend and on a competitive basis when you against _ and on a competitive basis when you against the _ and on a competitive basis when you against the rest of the world the uk is looking _ against the rest of the world the uk is looking less competitive than it was before. let is looking less competitive than it was before-— was before. let us test the temperature _ was before. let us test the temperature with - was before. let us test the temperature with two - was before. let us test the temperature with two very| temperature with two very influential backbenchers from the labour party and conservative party.
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steve baker, conservative mp and former shadow chancellorjohn mcdonnell. i hope you were able to hear the discussion we have been having, steve, laura talking about unease and concern, in tory circles, your colleague david davis questions whether rishi sunak is a thatcherite at the weekend, is that something that worries you too? {lit at the weekend, is that something that worries you too?— that worries you too? of course it is and i have _ that worries you too? of course it is and i have called _ that worries you too? of course it is and i have called for— that worries you too? of course it is and i have called for the - is and i have called for the conservative party to rediscover its belief in free markets and i do have great faith in rishi sunak, that is where his heart and soul is, he wanted to be a free market conservative relying on private sector investment to create more productive jobs, sector investment to create more productivejobs, and help families withst the do of living, generate the need we need and some of the panel have said, this is what chancellors say they want to do. the really big difference is with rishi sunak he understands businesses and markets and i have faith he will deliver. t, , , markets and i have faith he will deliver. ., , , ., . deliver. that is newly found faith, earlier this _
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deliver. that is newly found faith, earlier this month, _ deliver. that is newly found faith, earlier this month, you called - earlier this month, you called current government spending socialism, is that how you see
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clear, what people are interested in, in in this budget is the point that you — in, in in this budget is the point that you have raised, cost of living, — that you have raised, cost of living, and _ that you have raised, cost of living, and when they see what they are facing _ living, and when they see what they are facing in terms of energy price rises. _ are facing in terms of energy price rises, inflation, and they look at what _ rises, inflation, and they look at what is — rises, inflation, and they look at what is on — rises, inflation, and they look at what is on offer, i think they will certainty— what is on offer, i think they will certainly see that rishi sunak is no socialist, _ certainly see that rishi sunak is no socialist, you know, cutting, no socialist— socialist, you know, cutting, no socialist would cut universal credit to the _ socialist would cut universal credit to the poorest within our society, it wouldn't— to the poorest within our society, it wouldn't impose a pay freeze and then do— it wouldn't impose a pay freeze and then do a _ it wouldn't impose a pay freeze and then do a sort of a stunt about establishing the pay freeze but not guaranteeing that any pay rise will even match inflation, and then also for the _ even match inflation, and then also for the nhs staff and social care workers. — for the nhs staff and social care workers, offering them 3%, when you know _ workers, offering them 3%, when you know inflation is more than likely
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to, is— know inflation is more than likely to, is already 3.1% and will probably— to, is already 3.1% and will probably reach 4%, so he is no socialist, — probably reach 4%, so he is no socialist, i_ probably reach 4%, so he is no socialist, i think this theme he is developing today about age of optimism, well, ithink developing today about age of optimism, well, i think people are going _ optimism, well, i think people are going to _ optimism, well, i think people are going to be — optimism, well, i think people are going to be pretty disappointed in these _ going to be pretty disappointed in these coming months when they face up these coming months when they face up to the _ these coming months when they face up to the realities of the cost of living _ up to the realities of the cost of living crisis— up to the realities of the cost of living crisis they are facing. right. _ living crisis they are facing. right, steve, what do you say in response? it is going to be more pes might be tick than optimistic the conservative _ might be tick than optimistic tue: conservative party might be tick than optimistic t'te: conservative party has might be tick than optimistic tt9 conservative party has been, might be tick than optimistic tt9: conservative party has been, there is a spectrum of opinion and we take the reins of power and govern according to the circumstances we face, and that is what we have seen rishi do in the preceding years, through the course of history it is never socialism that promoted prosperity, when it has tried it has led to poverty to misery, to ruin on a mass scale, venezuela of course is a mass scale, venezuela of course is a example, that is why pragmatic conservatives like me want a return to free market principles which have served our country very well over a long period. so, you know, rishi
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knows that, think we have had a problem during the pandemic, that we have been clear what we would like to do and done something else because circumstances have forced it upon us. i think this is a pivot moment for the government. they have to decide are we going to do the things we know to be right and that includes facilitating private sector investment, and helping families with the cost of living by making it, work pay, so for example i called on them to find 10 billion a year to improve universal credit, through the work allowance and taper rate, i hope they do something serious on universal credit, because i like, everybody else, want us to have an effective safety net we can be proud of. but it's a safety net that should be cat pulling people into jobs. that should be cat pulling people into 'obs. ~ :, , :, that should be cat pulling people into 'obs. ~ :, ,, ~' that should be cat pulling people into 'obs. ~ :, ,, :, , ., into jobs. would you like to see tax cuts of course _ into jobs. would you like to see tax cuts of course in _ into jobs. would you like to see tax cuts of course in any _ into jobs. would you like to see tax cuts of course in any budget - into jobs. would you like to see tax cuts of course in any budget i - into jobs. would you like to see tax| cuts of course in any budget i would like to see simplification _ cuts of course in any budget i would like to see simplification and - cuts of course in any budget i would like to see simplification and tax - like to see simplification and tax cut, i have signed up to tax cuts on beer duty, some areas of our lives are very taxed, we go to the petrol
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pumps mostly to pay tax, we pay too much tax on booze and sin taxes, these are really excruciating costs on families, there is about 10 billion plus of subsidy goes to renewables, i would like to see that moved on to general taxation to make it clear what is going on with net zero. t it clear what is going on with net zero. . :, :, , it clear what is going on with net zero, :, :, :, , ~ zero. i am going to interrupt. we were showing — zero. i am going to interrupt. we were showing pictures _ zero. i am going to interrupt. we were showing pictures of- zero. i am going to interrupt. we were showing pictures of boris i were showing pictures of boris johnson, he is heading to the commons for prime minister's questions. i am going to open it up, to all the editors in a moment. before i do, john mcdonnell, you agree broadly on universal credit, you heard therejohn what steve was saying, but if borisjohnson wants to turn the uk into a high wages highly skilled economy, doesn't that sound like corbynism?— sound like corbynism? interesting, the hrase sound like corbynism? interesting, the phrase we _ sound like corbynism? interesting, the phrase we were _ sound like corbynism? interesting, the phrase we were using - sound like corbynism? interesting, i the phrase we were using throughout, by the way, just on steve reefs wrens to socialist governments, let us talk about the at lee government
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and the creation of the nhs, this government is currently seeking to privatise, in the face of conservative opposition, in some of the conservatives association, yes, you need to invest in the long—term and ensure you have the skills in place, but the problem i say again, is they have listened to, i have listened to the sarah you announcements, pre—budget announcements, pre—budget announcements made, to be frank they are nothing on the scale that is needed, after we have had a decade of savage austerity, you take, you take local authority, i am hoping he will say something about local councils today, because they have lost, cumulatively over the last 11 years they have lost 100 billion in central government funding, that impacts upon the whole range of local public services, and you mentioned the nhs funding, this additional capital equipment money, that, you know, there is a £9 guilty backlog because of cuts over the
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last 11 years and exactly as one of the people you interviewed said, where are the staff to operate these new machines, the scanners? there are 100,000 vacancies, part of that vacancy problem is recruitment retention because wages have been frozen, effectively for about 10 years, what we need is a government that really does look at a long—term plan for the economy, invests in both people, skills and also in the capital infrastructure, that we need. we haven't had that for 11 years and from what i have seen so far it is nothing on scale that is needed. in fact it is trivial in comparison with the cuts made. laura. ~ :, comparison with the cuts made. laura. ~ . ., comparison with the cuts made. laura. . . ., ., laura. we have heard that the prime minister made _ laura. we have heard that the prime minister made clear— laura. we have heard that the prime minister made clear the _ laura. we have heard that the prime minister made clear the priorities - minister made clear the priorities of the budget are strong public service, infrastructure, innovation and skills and support for working families, we will have to see what that means in practise, i can hear john saying it is all rhetoric, let us see what happens at the despatch box. 0n
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us see what happens at the despatch box. on that support for working families, steve you mentioned you are one of the senior conservatives calling for action on universal credit to enable people to keep more of the cash they earn, i heard on the grapevine the chancellor has briefed some senior tory mps ability what he is going to say, they will be trying to make that happen. what have you heard on that, are you confident he is going to allow people to keep more of their earnings? i know what i have said which is you need to find 10 billion a yearfor a universal which is you need to find 10 billion a year for a universal credit system we can be proud of. i a year for a universal credit system we can be proud of.— we can be proud of. i have said the same to welfare _ we can be proud of. i have said the same to welfare ministers - we can be proud of. i have said the same to welfare ministers and - we can be proud of. i have said the i same to welfare ministers and i know wetfare _ same to welfare ministers and i know welfare ministers have responded that it is down to the treasury, so ithink— that it is down to the treasury, so i think it _ that it is down to the treasury, so i think it is — that it is down to the treasury, so i think it is all eyes on the chancellor today, i think it is all eyes on the chancellortoday, i i think it is all eyes on the chancellor today, i can't preannounce what he might do because i haven't been told, but i think when — i haven't been told, but i think when t — i haven't been told, but i think when i made the point to all of them when _ when i made the point to all of them when we _ when i made the point to all of them when we came to power in 2010, the
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centre _ when we came to power in 2010, the centre for— are best for working people, you know. _ are best for working people, you know. an — are best for working people, you know, an old car carp peronce said to me _ know, an old car carp peronce said to me the — know, an old car carp peronce said to me the worst government for working — to me the worst government for working man is labour, and that is because _ working man is labour, and that is because john demonstrated labour governments never give a thought to where _ governments never give a thought to where the _ governments never give a thought to where the money is coming from. you and john can trade blows on that until the clock reaches midnight, but on the specifics on universal credit, to be clear to the audience, we are not expecting anything like a 10 billion you are suggesting going to that system. if all it is is a tweak to the taper rate, which i think makes a difference to fewer than half of the people that claim that benefit, would you still want the chancellor to go back and look again? the chancellor to go back and look auain? , , , , ., again? depends exactly what the numbers are- _ again? depends exactly what the numbers are. i— again? depends exactly what the numbers are. i have _ again? depends exactly what the numbers are. i have to _ again? depends exactly what the numbers are. i have to be - again? depends exactly what the i numbers are. i have to be realistic. i numbers are. i have to be realistic. i am _ numbers are. i have to be realistic. i am a _ numbers are. i have to be realistic. i am a fiscat— numbers are. i have to be realistic. i am a fiscal conservative, i have to be _ i am a fiscal conservative, i have to be realistic that even a relatively small tweak to the taper rate is _ relatively small tweak to the taper rate is extremely expensive to the exchequer — rate is extremely expensive to the exchequer. and that means to taxpayers. whatever he decides on this, we _ taxpayers. whatever he decides on this, i've made it very clear throughout, i will have to vote for it. throughout, i will have to vote for
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it but _ throughout, i will have to vote for it but i _ throughout, i will have to vote for it. but i want to see wycombe become a place _ it. but i want to see wycombe become a place that— it. but i want to see wycombe become a place that is more prosperous, happier— a place that is more prosperous, happier and freer. that means investment in the private sector to detiver— investment in the private sector to deliver more productive work. it also _ deliver more productive work. it also means the £5.9 billion into the nhs, _ also means the £5.9 billion into the nhs, so _ also means the £5.9 billion into the nhs, so that we can, for example, detiver— nhs, so that we can, for example, deliver more agile digital projects, which _ deliver more agile digital projects, which will— deliver more agile digital projects, which will make the nhs more productive, help people get the appointments they need, and actually we should _ appointments they need, and actually we should see a virtuous cycle. i am optimistic— we should see a virtuous cycle. i am optimistic they could deliver today, but it— optimistic they could deliver today, but it requires us to really embrace what _ but it requires us to really embrace what is _ but it requires us to really embrace what is possible.— but it requires us to really embrace what is possible.- i - but it requires us to really embrace what is possible.- i was - what is possible. faisal? iwas interested _ what is possible. faisal? iwas interested in _ what is possible. faisal? iwas interested in your _ what is possible. faisal? iwas interested in your concept - what is possible. faisal? iwas interested in your concept of l what is possible. faisal? i was i interested in your concept of this being _ interested in your concept of this being a _ interested in your concept of this being a pivot— interested in your concept of this being a pivot budget _ interested in your concept of this being a pivot budget from - interested in your concept of this - being a pivot budget from emergency rishi two— being a pivot budget from emergency rishi two more — being a pivot budget from emergency rishi two more steady— being a pivot budget from emergency rishi two more steady state, - being a pivot budget from emergency rishi two more steady state, normall rishi two more steady state, normal service _ rishi two more steady state, normal service resumed~ _ rishi two more steady state, normal service resumed. i— rishi two more steady state, normal service resumed. iwonder_ rishi two more steady state, normal service resumed. i wonder if- rishi two more steady state, normal service resumed. i wonder if there i service resumed. i wonder if there is a chance — service resumed. i wonder if there is a chance that, _ service resumed. i wonder if there is a chance that, having _ service resumed. i wonder if there is a chance that, having spent- service resumed. i wonder if there is a chance that, having spent all. is a chance that, having spent all this nroney, _ is a chance that, having spent all this money, this _ is a chance that, having spent all this money, this extraordinary. this money, this extraordinary intervention— this money, this extraordinary intervention that _ this money, this extraordinary intervention that nobody - this money, this extraordinaryl intervention that nobody would this money, this extraordinary- intervention that nobody would have predicted _ intervention that nobody would have predicted in — intervention that nobody would have predicted in advance _ intervention that nobody would have predicted in advance on _ intervention that nobody would have predicted in advance on the - intervention that nobody would havej predicted in advance on the furlough schenre, _ predicted in advance on the furlough schenre, the — predicted in advance on the furlough scheme, the public— predicted in advance on the furlough scheme, the public has _ predicted in advance on the furlough scheme, the public has changed - predicted in advance on the furloughl scheme, the public has changed from the public— scheme, the public has changed from the public now— scheme, the public has changed from the public now expect _ scheme, the public has changed from the public now expect a _ scheme, the public has changed from the public now expect a helping - the public now expect a helping hand. _ the public now expect a helping hand, whereas _ the public now expect a helping hand, whereas before - the public now expect a helping hand, whereas before they - the public now expect a helping i hand, whereas before they might the public now expect a helping - hand, whereas before they might not
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have _ hand, whereas before they might not have in _ hand, whereas before they might not have in very— hand, whereas before they might not have. i'm very struck, _ hand, whereas before they might not have. i'm very struck, when - hand, whereas before they might not have. i'm very struck, when we - hand, whereas before they might not have. i'm very struck, when we go i have. i'm very struck, when we go through— have. i'm very struck, when we go through the — have. i'm very struck, when we go through the country— have. i'm very struck, when we go through the country on _ have. i'm very struck, when we go through the country on the - have. i'm very struck, when we go through the country on the cost i have. i'm very struck, when we go through the country on the cost of| through the country on the cost of living _ through the country on the cost of living and — through the country on the cost of living and price's _ through the country on the cost of living and price's issue, _ through the country on the cost of living and price's issue, people i through the country on the cost ofi living and price's issue, people are expecting — living and price's issue, people are expecting the _ living and price's issue, people are expecting the budget _ living and price's issue, people are expecting the budget to _ living and price's issue, people are expecting the budget to help - living and price's issue, people are expecting the budget to help solve prices _ expecting the budget to help solve prices that— expecting the budget to help solve prices that i— expecting the budget to help solve prices that i think _ expecting the budget to help solve prices that i think may— expecting the budget to help solve prices that i think may be - expecting the budget to help solve prices that i think may be a - prices that i think may be a few years— prices that i think may be a few years back— prices that i think may be a few years back they— prices that i think may be a few years back they would - prices that i think may be a few years back they would have - prices that i think may be a few. years back they would have said, well, _ years back they would have said, well, that — years back they would have said, well, that is— years back they would have said, well, that is down— years back they would have said, well, that is down to _ years back they would have said, well, that is down to the - well, that is down to the supermarket— well, that is down to the supermarket and - well, that is down to the i supermarket and markets, well, that is down to the - supermarket and markets, that well, that is down to the _ supermarket and markets, that they want the _ supermarket and markets, that they want the government _ supermarket and markets, that they want the government to _ supermarket and markets, that they want the government to solve - supermarket and markets, that they want the government to solve that. l want the government to solve that. in want the government to solve that. in interviews, — want the government to solve that. in interviews, again _ want the government to solve that. in interviews, again and _ want the government to solve that. in interviews, again and again, - want the government to solve that. j in interviews, again and again, they are saying _ in interviews, again and again, they are saying that _ in interviews, again and again, they are saying that. so _ in interviews, again and again, they are saying that. so maybe - in interviews, again and again, they. are saying that. so maybe something changed _ are saying that. so maybe something changed in— are saying that. so maybe something changed in the — are saying that. so maybe something changed in the political— are saying that. so maybe something changed in the political economy - are saying that. so maybe something changed in the political economy of i changed in the political economy of britain _ changed in the political economy of britain after — changed in the political economy of britain after this— changed in the political economy of britain after this extraordinary- britain after this extraordinary emergency— britain after this extraordinary emergency intervention, - britain after this extraordinary emergency intervention, thati britain after this extraordinary- emergency intervention, that maybe you don't— emergency intervention, that maybe you don't like? — emergency intervention, that maybe you don't like? [_ emergency intervention, that maybe you don't like?— you don't like? i have to say, i ho -e you don't like? i have to say, i hope something _ you don't like? i have to say, i hope something has _ you don't like? i have to say, i hope something has not - you don't like? i have to say, i i hope something has not changed you don't like? i have to say, i - hope something has not changed in the way— hope something has not changed in the way that you articulate. if it has, _ the way that you articulate. if it has, we — the way that you articulate. if it has, we are _ the way that you articulate. if it has, we are going to be in terrible troubte~ _ has, we are going to be in terrible trouble the — has, we are going to be in terrible trouble. the idea of a prices and incomes— trouble. the idea of a prices and incomes policy, for example, trying to actually— incomes policy, for example, trying to actually control the price of goods — to actually control the price of goods and services and what people are paid _ goods and services and what people are paid right across the economy, that would — are paid right across the economy, that would be a real disaster for us all. that would be a real disaster for us ad you _ that would be a real disaster for us all. you know, the only way to coordinate _ all. you know, the only way to coordinate what we produce in our lives _ coordinate what we produce in our lives is _ coordinate what we produce in our lives is prices, profit and loss. that _ lives is prices, profit and loss. that is— lives is prices, profit and loss. that is why— lives is prices, profit and loss. that is why socialism never works. and we _ that is why socialism never works. and we are — that is why socialism never works. and we are doing at the moment, for example. _ and we are doing at the moment, for example, the energy market is a disaster— example, the energy market is a disaster because of government intervention. we are not in a crisis of laissez— intervention. we are not in a crisis of laissez faire, we are in a crisis
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of laissez faire, we are in a crisis of mass — of laissez faire, we are in a crisis of mass state intervention, high taxes. _ of mass state intervention, high taxes, huge deficit spending, massive _ taxes, huge deficit spending, massive borrowing and cross easy money _ massive borrowing and cross easy money. none of these things are liberalism — money. none of these things are liberalism or conservatism. let john resond to liberalism or conservatism. let john respond to this _ liberalism or conservatism. let john respond to this issue _ liberalism or conservatism. let john respond to this issue which - liberalism or conservatism. let john respond to this issue which faisal. respond to this issue which faisal has raised, has the mind of the public moved to a more statist style of governance and economy? i think he has hit something, _ of governance and economy? i think he has hit something, there - of governance and economy? i think he has hit something, there has - he has hit something, there has been a paradise and change. i have been talking about it for the last six months in a recent project that i undertook, and it is a paradigms change where, throughout the covid crisis, we were reminded, first of all, that we need each other, secondly, that we care for each other and that we were reminded that the way in which we come together, collectively, is often via the state. nationally, but more importantly, i think, state. nationally, but more importantly, ithink, locally state. nationally, but more importantly, i think, locally as well. in addition to that, there is the need for community action. i think the communities have come together, with a complete paradigms shift. they want a different set of
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values, moving away from the hard right, neoliberalism, into a society we construct which is based upon fairness, that means fair taxation, is based upon the community deciding, in the long term, what it needs,in deciding, in the long term, what it needs, in terms of investment. very much about devolution of decision—making powers. and ensuring that we recognise crises that are coming at us. and the next big crisis, the existential crisis, is climate change. i think the pandemic has taught us a lot, and i think there is definitely a paradigms change within people's thinking, individually, but also communally as well. that is why this budget really is so out of step with what people want. they don't want to live in a society where there are children in poverty, who are hungry this winter. where people are having to choose between heating or eating. where people are isolated, without the social care they need. i think there is a huge demand now for the
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creation of that sort of society that we need, where we do recognise that we need, where we do recognise that we need each other, and we care for each other as well. why not two competing visions there. trio. for each other as well. why not two competing visions there.— competing visions there. no, no, it is not competing visions there. no, no, it is rrot competing. _ competing visions there. no, no, it is not competing, i _ competing visions there. no, no, it is not competing, i agree _ competing visions there. no, no, it is not competing, i agree we - competing visions there. no, no, it| is not competing, i agree we should care for— is not competing, i agree we should care for each other! no, is not competing, i agree we should care for each other!— care for each other! no, no, it is not care for each other! no, no, it is rrot competing. _ care for each other! no, no, it is rrot competing. i _ care for each other! no, no, it is not competing, i agree - care for each other! no, no, it is not competing, i agree we - care for each other! no, no, it is| not competing, i agree we should care for each other! why not interesting is the idea of statism, which we have got used to, the point faisal was making, and it will take time for that to wear off, if it ever does. and steve saying we have to bring in the private sector. businesses are saying you are asking us to do— businesses are saying you are asking us to do an _ businesses are saying you are asking us to do an awful— businesses are saying you are asking us to do an awful lot, _ businesses are saying you are asking us to do an awful lot, pay _ businesses are saying you are asking us to do an awful lot, pay for - businesses are saying you are asking us to do an awful lot, pay for the - us to do an awful lot, pay for the transition — us to do an awful lot, pay for the transition to _ us to do an awful lot, pay for the transition to net _ us to do an awful lot, pay for the transition to net zero, _ us to do an awful lot, pay for the transition to net zero, upscale i us to do an awful lot, pay for the i transition to net zero, upscale the economy, — transition to net zero, upscale the economy, and _ transition to net zero, upscale the economy, and spend _ transition to net zero, upscale the economy, and spend a lot- transition to net zero, upscale the economy, and spend a lot of- transition to net zero, upscale the i economy, and spend a lot of money. at the _ economy, and spend a lot of money. at the same — economy, and spend a lot of money. at the same time, _ economy, and spend a lot of money. at the same time, you _ economy, and spend a lot of money. at the same time, you are _ economy, and spend a lot of money. at the same time, you are raising. at the same time, you are raising taxes. _ at the same time, you are raising taxes. you — at the same time, you are raising taxes. you are _ at the same time, you are raising taxes, you are raising _ at the same time, you are raising taxes, you are raising national- taxes, you are raising national insurance _ taxes, you are raising national insurance contributions, - taxes, you are raising national insurance contributions, you i taxes, you are raising national. insurance contributions, you are sending — insurance contributions, you are sending a — insurance contributions, you are sending a lot _ insurance contributions, you are sending a lot of— insurance contributions, you are sending a lot of mixed - insurance contributions, you are i sending a lot of mixed messages. also stightty — sending a lot of mixed messages. also slightly blaming _ sending a lot of mixed messages. also slightly blaming businesses. sending a lot of mixed messages. i also slightly blaming businesses for the shortage — also slightly blaming businesses for the shortage of— also slightly blaming businesses for the shortage of hgv_ also slightly blaming businesses for the shortage of hgv drivers - also slightly blaming businesses forj the shortage of hgv drivers treating businesses — the shortage of hgv drivers treating businesses as —
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the shortage of hgv drivers treating businesses as under— the shortage of hgv drivers treating businesses as under investing, - the shortage of hgv drivers treating businesses as under investing, selfl businesses as under investing, self pitying _ businesses as under investing, self pitying nroaners _ businesses as under investing, self pitying nroaners i_ businesses as under investing, self pitying moaners. i think— businesses as under investing, self pitying moaners. i think that- businesses as under investing, self pitying moaners. i think that is- businesses as under investing, selfj pitying moaners. i think that is why business _ pitying moaners. i think that is why business feels _ pitying moaners. i think that is why business feels a _ pitying moaners. i think that is why business feels a bit _ pitying moaners. i think that is why business feels a bit bruised. - pitying moaners. i think that is why business feels a bit bruised. the i business feels a bit bruised. the private _ business feels a bit bruised. the private sector— business feels a bit bruised. the private sector want— business feels a bit bruised. the private sector want to _ business feels a bit bruised. the private sector want to get - business feels a bit bruised. the i private sector want to get involved, but the _ private sector want to get involved, but the tax — private sector want to get involved, but the tax policy _ private sector want to get involved, but the tax policy on _ private sector want to get involved, but the tax policy on the _ private sector want to get involved, but the tax policy on the general i but the tax policy on the general tone towards _ but the tax policy on the general tone towards them _ but the tax policy on the general tone towards them is _ but the tax policy on the general tone towards them is very - but the tax policy on the generalj tone towards them is very mixed messages — tone towards them is very mixed messages 0ne _ tone towards them is very mixed messages. one minute - tone towards them is very mixed messages. 0ne minute they- tone towards them is very mixed messages. one minute they are| messages. one minute they are moaning. — messages. one minute they are moaning. the _ messages. 0ne minute they are moaning, the next— messages. one minute they are moaning, the next minute - messages. one minute they are moaning, the next minute theyl messages. one minute they are i moaning, the next minute they are saying. _ moaning, the next minute they are saying. we — moaning, the next minute they are saying. we love _ moaning, the next minute they are saying. we love you. _ moaning, the next minute they are saying, we love you, please - moaning, the next minute they are saying, we love you, please help i moaning, the next minute they arei saying, we love you, please help us -et saying, we love you, please help us get to— saying, we love you, please help us get to net _ saying, we love you, please help us get to net zero _ saying, we love you, please help us get to net zero. that _ saying, we love you, please help us get to net zero. that is _ saying, we love you, please help us get to net zero. that is the - saying, we love you, please help us get to net zero. that is the kind - saying, we love you, please help us get to net zero. that is the kind of. get to net zero. that is the kind of tusste _ get to net zero. that is the kind of tusste that — get to net zero. that is the kind of tusste that is — get to net zero. that is the kind of tussle that is going _ get to net zero. that is the kind of tussle that is going on. _ get to net zero. that is the kind of tussle that is going on.— tussle that is going on. we will ick u- tussle that is going on. we will pick up on _ tussle that is going on. we will pick up on that _ tussle that is going on. we will pick up on that in _ tussle that is going on. we will pick up on that in a _ tussle that is going on. we will pick up on that in a moment. i pick up on that in a moment. steve, net zero, the climate conference coming up soon, john mentioned it as the next existential crisis that has to be tackled. are you expecting rishi sunak to put a price tag on how much it costs to deliver net zero? t how much it costs to deliver net zero? :, �* , . , .,, zero? i don't expect he will be able to do that. — zero? i don't expect he will be able to do that, because _ zero? i don't expect he will be able to do that, because so far - zero? i don't expect he will be able to do that, because so far there - zero? i don't expect he will be able| to do that, because so far there has been _ to do that, because so far there has been a _ to do that, because so far there has been a real— to do that, because so far there has been a real unwillingness to put costs _ been a real unwillingness to put costs around it. i was encouraged that an _ costs around it. i was encouraged that an £18— costs around it. i was encouraged that an £18 million price tag has been _ that an £18 million price tag has been put — that an £18 million price tag has been put on plan b for covid restrictions, so perhaps we are seeing — restrictions, so perhaps we are seeing a — restrictions, so perhaps we are seeing a return to cost benefit analysis — seeing a return to cost benefit analysis that it should be doing.
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net zero. — analysis that it should be doing. net zero, this target are going to net zero — net zero, this target are going to net zero was nodded through the house _ net zero was nodded through the house of— net zero was nodded through the house of commons, i was there, on a statutory— house of commons, i was there, on a statutory instrument. that is why next _ statutory instrument. that is why next week— statutory instrument. that is why next week i will be launching a project — next week i will be launching a project to— next week i will be launching a project to look at just how we are controtting — project to look at just how we are controlling power. because it turns out that— controlling power. because it turns out that vast costs like the cost of net zero _ out that vast costs like the cost of net zero have been imposed on the public— net zero have been imposed on the public by— net zero have been imposed on the public by delegated legislation, other— public by delegated legislation, other words, public by delegated legislation, otherwords, ministers public by delegated legislation, other words, ministers signed an instrument — other words, ministers signed an instrument and it was nodded through with no— instrument and it was nodded through with no scrutiny. and that is going to really— with no scrutiny. and that is going to really bite. and crucially it is going _ to really bite. and crucially it is going to — to really bite. and crucially it is going to bite with the political parties — going to bite with the political parties in consensus on it. the public— parties in consensus on it. the public have _ parties in consensus on it. the public have never really been given a choice _ public have never really been given a choice. that is why you think it is so _ a choice. that is why you think it is so interesting, the idea of a referendum has emerged. any referendum has emerged. any referendum will net zero, unlike the brexit— referendum will net zero, unlike the brexit referendum, we will have a concrete — brexit referendum, we will have a concrete plan to vote on.- concrete plan to vote on. sorry to hurry you. — concrete plan to vote on. sorry to hurry you. we — concrete plan to vote on. sorry to hurry you, we don't _ concrete plan to vote on. sorry to hurry you, we don't have - concrete plan to vote on. sorry to hurry you, we don't have long - concrete plan to vote on. sorry to i hurry you, we don't have long before premises questions. you mentioned the idea of a referendum on government plans to net zero. yes or no, it's not a good idea, john? i think we need to get on with the job now _ think we need to get on with the job now we _ think we need to get on with the job now we have — think we need to get on with the job now we have got— think we need to get on with the job now. we have got time _ think we need to get on with the job now. we have got time for- now. we have got time for a referendum _ now. we have got time for a referendum. we _ now. we have got time for a
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referendum. we are - now. we have got time for a referendum. we are facing i now. we have got time for a. referendum. we are facing an existential— referendum. we are facing an existential threat. _ referendum. we are facing an existentialthreat. has- referendum. we are facing an existential threat. has steve i referendum. we are facing an i existential threat. has steve not see the — existential threat. has steve not see the fires _ existential threat. has steve not see the fires in— existential threat. has steve not see the fires in california, - existential threat. has steve not see the fires in california, the i see the fires in california, the flooding — see the fires in california, the flooding in— see the fires in california, the flooding in germany, - see the fires in california, the flooding in germany, in- see the fires in california, the flooding in germany, in the l see the fires in california, the - flooding in germany, in the global south? _ flooding in germany, in the global south? we — flooding in germany, in the global south? we need _ flooding in germany, in the global south? we need to— flooding in germany, in the global south? we need to get— flooding in germany, in the global south? we need to get on- flooding in germany, in the global south? we need to get on with . flooding in germany, in the globall south? we need to get on with the 'ob. south? we need to get on with the job get _ south? we need to get on with the job get the — south? we need to get on with the job get the cop— south? we need to get on with the job. get the cop agreement, - south? we need to get on with the job. get the cop agreement, the l job. get the cop agreement, the investment— job. get the cop agreement, the investment we _ job. get the cop agreement, the investment we need _ job. get the cop agreement, the investment we need and - job. get the cop agreement, the i investment we need and immobilise the whole _ investment we need and immobilise the whole economy— investment we need and immobilise the whole economy and _ investment we need and immobilise the whole economy and community. investment we need and immobilise - the whole economy and community. we can't wait _ the whole economy and community. we can't wait for _ the whole economy and community. we can't wait for referendums. _ the whole economy and community. we can't wait for referendums. it _ the whole economy and community. we can't wait for referendums. it is - the whole economy and community. we can't wait for referendums. it is a - can't wait for referendums. it is a threat _ can't wait for referendums. it is a threat to— can't wait for referendums. it is a threat to our— can't wait for referendums. it is a threat to our very _ can't wait for referendums. it is a threat to our very existence. - can't wait for referendums. it is a threat to our very existence. 0ur| threat to our very existence. our children— threat to our very existence. our children and _ threat to our very existence. our children and grand _ threat to our very existence. our children and grand children - threat to our very existence. our children and grand children will. children and grand children will never— children and grand children will never forgive _ children and grand children will never forgive us _ children and grand children will never forgive us if— children and grand children will never forgive us if we - children and grand children will never forgive us if we delay- never forgive us if we delay further _ never forgive us if we delay further i_ never forgive us if we delay further. i try— never forgive us if we delay further. i try to _ never forgive us if we delay further. i try to zoom - never forgive us if we delay further. i try to zoom it - never forgive us if we delay further. i try to zoom it is l never forgive us if we delay further. i try to zoom it is a never forgive us if we delay- further. i try to zoom it is a yes on a _ further. i try to zoom it is a yes on a referendum _ further. i try to zoom it is a yes on a referendum on _ further. i try to zoom it is a yes on a referendum on you, - further. i try to zoom it is a yes. on a referendum on you, steve? further. i try to zoom it is a yes i on a referendum on you, steve? i on a referendum on you, steve? thought i would never want on a referendum on you, steve?“ thought i would never want another referendum again.— thought i would never want another referendum again. funny how memory is... yes, referendum again. funny how memory is--- yes. when _ referendum again. funny how memory is... yes, when i— referendum again. funny how memory is... yes, when i see _ referendum again. funny how memory is... yes, when i see all— referendum again. funny how memory is... yes, when i see all political - is... yes, when i see all political arties is... yes, when i see all political parties conspiring _ is... yes, when i see all political parties conspiring together - is... yes, when i see all political parties conspiring together to i is... yes, when i see all politicalj parties conspiring together to do is... yes, when i see all political i parties conspiring together to do it without— parties conspiring together to do it without giving the public a choice, ithink— without giving the public a choice, i think maybe we do.— i think maybe we do. thank you to steve baker— i think maybe we do. thank you to steve baker and _ i think maybe we do. thank you to steve baker and john _ i think maybe we do. thank you to steve baker and john mcdonnell. l i think maybe we do. thank you to i steve baker and john mcdonnell. we will let you go to prime minister's questions. i think we can once again remind you of the big day, the scene here in westminster. there it is, the palace of westminster, it will be gearing up. the chamber will be
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filling up. i am sure it will be pretty packed today, because we have five minutes until prime minister's questions, which will be seen off oh, there is the chamber and it is indeed filling up, with mps on all sides. there is this strange juxtaposition of prime questions, the big weekly event, the clash between the prime minister and the leader of the opposition, but coming ahead of perhaps the even bigger event, which is the budget and the spending review. i mentioned the spending review. i mentioned the spending review, because we haven't really had much time to talk about it. and this is about the government plans for departments. we can show you here, ithink, some graphs. we can see planned changes in day—to—day spending, current spending. we can see the new labour years under tony blair and gordon brown. relatively healthy increases in day—to—day spending. then you have the coalition, conservatives and liberal democrats, in the wake of the financial crisis. big reductions in spending, as you will remember, it was a policy austerity
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at the time, that the government argued was necessary. and then this graph here, which is more recent spending reviews, that we have seen in the last couple of years, increased budgets are back. it does not include special measures put in place during the pandemic. so we are not talking about a return to austerity, however, it does not mean there will not be difficult days ahead for individual departments. some of them. let me show you this. this is the planned resource spending. excuse the jargon, but spending. excuse the jargon, but spending on health, particularly. government department, 22—23, 40% going on health and social care. a much bigger chunk of public money than in previous years. you can see what it means for other departments. there are already commitments on areas like defence, education and oversees a do. but perhaps not that much for other departments. faisal, they are going to feel the squeeze?
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if nothing else is done, they will. these are important but small areas of public services, weather has been pressure, ongoing pressure from the austerity years, courts, prisons, boarders. crucially, especially given the levelling up agenda, local government. if you don't fund local government. if you don't fund local government and it comes out in the wash in terms of council tax rises, business rate pressure. i don't think we were expecting business rates, despite the review being published, for there to be a movement on that. that is partly because of funding for local government. we'll get the receipts for a lot of government slogans. levelling up, we have three years of funding numbers, you should be able to see some sort of levelling off spending on regional spend. notjust random projects funded. what does it look like across the piece in the treasury spreadsheet? likewise, net zero. likewise, science superpower, simon is going to take up this
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issue. it is really important. this issue. it is really important. this is a test. giant spreadsheet of numbers, plans, priorities and decisions that have been made, and we canjudge some decisions that have been made, and we can judge some of the slogans. the levelling up a fund, the community ownership fund, the shared prosperity fund, these are pots of money that local govern can bid for, that i suppose is meant to regenerate the high street, among other things. regenerate the high street, among otherthings. is regenerate the high street, among other things. is that what businesses will be hoping for, and local government?— businesses will be hoping for, and local government? business's longest cherished dream _ local government? business's longest cherished dream was _ local government? business's longest cherished dream was a _ local government? business's longest cherished dream was a massive - cherished dream was a massive overhaul— cherished dream was a massive overhaul of business rates. they have _ overhaul of business rates. they have been— overhaul of business rates. they have been calling for it for ages, they were — have been calling for it for ages, they were hoping it might be this budget — they were hoping it might be this budget. we don't think it will be. there _ budget. we don't think it will be. there might be some tweaks, like if you put— there might be some tweaks, like if you put solar panels on the roof of your factory, the moment you will -et your factory, the moment you will get higher— your factory, the moment you will get higher business rates because you have — get higher business rates because you have improved the building. maybe _ you have improved the building. maybe they will change that, because it is in— maybe they will change that, because it is in line _ maybe they will change that, because it is in line with the green agenda. faisat— it is in line with the green agenda. faisal is _ it is in line with the green agenda. faisal is right on the local government thing. many the place they experience services is by the locat— they experience services is by the local authority, their budgets have been _ local authority, their budgets have been squeezed enormously. one of the reasons— been squeezed enormously. one of the reasons for— been squeezed enormously. one of the reasons for not overhauling business rate is _ reasons for not overhauling business rate is that _ reasons for not overhauling business rate is that it is the major source
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of funding — rate is that it is the major source of funding for local government. not only is— of funding for local government. not only is it _ of funding for local government. not only is it a _ of funding for local government. not only is it a £30 billion a year moneyspinner, some of that money .oes moneyspinner, some of that money goes directly to local government, that is— goes directly to local government, that is where people experience so etement _ that is where people experience so element of services. on the science superpower, a lot of people looking out to _ superpower, a lot of people looking out to see _ superpower, a lot of people looking out to see if this commitment to spend _ out to see if this commitment to spend £22— out to see if this commitment to spend £22 billion in r&d is going to slide a _ spend £22 billion in r&d is going to slide a bit — spend £22 billion in r&d is going to slide a bit. if it does, slightly undermines the idea of making this a scientific— undermines the idea of making this a scientific superpower, high knowledge economy. every pound that comes _ knowledge economy. every pound that comes out _ knowledge economy. every pound that comes out of the government r&d spending. — comes out of the government r&d spending, that is supposed to crowd in the _ spending, that is supposed to crowd in the private sector funding. every pound _ in the private sector funding. every pound tose — in the private sector funding. every pound lose —— you put in a communism funding _ pound lose -- you put in a communism fundinu. : , funding. almost this thing about let's send people _ funding. almost this thing about let's send people into _ funding. almost this thing about let's send people into outer - funding. almost this thing about i let's send people into outer space, build rockets, be a science superpower. it is exactly the kind of political present that boris johnson likes to serve up. on that and other things, the levelling up fund that faisal mentioned, the commitments they government has mentioned, it will be vital to go
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through the small print. have they stuck to promises they have already made? also, is there a wider coherence in what has been put forward today. something always pops into my head, i said, what is the real priority now? you are moving past the emergence of the pandemic. what is the real priority? we don't have the priority, but as the great thing, he wants to do everything. except to govern is to choose. no government, even with an 80 seat majority, can do everything, all the time. something like a budget, plus a spending review, which gives us a crystal ball into the future, is an unusual opportunity for us to look at the facts that the money talks. what does it add up to? is it a coherent, political project? orare there so many bits and pieces all over the place that, actually, we are not any the wiser about what the government wants to do. that puts the thumb on the scale for
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every other bit of government, there is no question about that, and from a political point of view this government and previous governments believes that health care is always the public�*s top priority and therefore itjust has to get the loy yoon —— share of cash, but my goodness it skews things everywhere else, that is why we will see tight settlement, other departments and some places strapped for cash. abs, some places strapped for cash. a decade ago that was below 30%. so will is _ decade ago that was below 30%. so will is that— decade ago that was below 30%. so will is that old joke about the, the british— will is that old joke about the, the british state being health service attached to civil service, that not very funny — attached to civil service, that not very funnyjoke i should say. but the, _ very funnyjoke i should say. but the, you — very funnyjoke i should say. but the, you know, it does take a lot of the, you know, it does take a lot of the spending and attention. time to no the spending and attention. time to to into the the spending and attention. time to go into the chamber _ the spending and attention. time to go into the chamber for _ the spending and attention. time to go into the chamber for prime - go into the chamberfor prime minister's questions. during which my right honourable friend the chancellor updated the cabinet on how the government's plan forjobs
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is working, with hiring wages, higher skills and rises productivity, he will make statement to the house shortly, setting out how we will build a new age of optimism, mr speaker, in addition to my duties in this house i shall have further such meetings later today. thank you mr speaker. i very much welcome the a66 northern trans—pennine project from penrith to scotch corner, this investment will improve safety and congestion and help to level up the region supporting jobs, service and tourism but we have to get the project right. will my right honourable friend ask his government departments for transport, the ministry of defence and defra to work together pragmatically and reasonably, with suggested route at mendments to ensure local communities are not left blighted by the current plans? mr communities are not left blighted by the current plans?— the current plans? mr speaker, he's riaht the current plans? mr speaker, he's ri . ht that the current plans? mr speaker, he's
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right that the _ the current plans? mr speaker, he's right that the development - the current plans? mr speaker, he's right that the development that - the current plans? mr speaker, he's right that the development that he i right that the development that he refers to is part of an infrastructure revolution, i think that will transform the country but he is right we should consider local feedback from stake holders and the community when finalising the design and eso we will. i am community when finalising the design and eso we will.— and eso we will. i am callinged miliband to _ and eso we will. i am callinged miliband to ask _ and eso we will. i am callinged miliband to ask the _ and eso we will. i am callinged miliband to ask the question i and eso we will. i am callinged - miliband to ask the question because the leader— miliband to ask the question because the leader of the opposition is isolating — just like the old days! i presume ou are just like the old days! i presume you are wanting _ just like the old days! i presume you are wanting to _ just like the old days! i presume you are wanting to get _ just like the old days! i presume you are wanting to get on - just like the old days! i presume you are wanting to get on to - just like the old days! i presume you are wanting to get on to the| you are wanting to get on to the budget, — you are wanting to get on to the budget, because all you are doing is detaying _ budget, because all you are doing is detaying it~ — budget, because all you are doing is delaying it. ed miliband. | budget, because all you are doing is delaying it. ed miliband.— delaying it. ed miliband. i want to reassure both _ delaying it. ed miliband. i want to reassure both sides _ delaying it. ed miliband. i want to reassure both sides of— delaying it. ed miliband. i want to reassure both sides of the - delaying it. ed miliband. i want to reassure both sides of the housel delaying it. ed miliband. i want to l reassure both sides of the house it is one time only that i am... mr speaker, we all need the vital cop26 summit in glasgow to deliver next
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week, because failing to limit global warming to 1.5 degrees will have devastating consequences for the planet and that is shared across the planet and that is shared across the house. does the prime minister agree that to keep that goal of 1.5 degrees alive, we need to roughly halve global emissions in this decade? ~ : :, decade? well, i welcome the right honourable — decade? well, i welcome the right honourable gentleman _ decade? well, i welcome the right honourable gentleman to - decade? well, i welcome the right honourable gentleman to his - decade? well, i welcome the right| honourable gentleman to his place, andindeed honourable gentleman to his place, and indeed i think i think the house will extend our similar thinks to the leader of the opposition, i hope he returns soon. it is, of course, correct, mr speaker, that cop26 is both unbelievably important for our planet, but also very difficult, and it is in the balance, mr speaker, and he is right in what he says about the need to keep 1.5 degrees alive, and that will be and it does depend on what happens this decade, it depends on the commitment that are made. all i will say mr speaker
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is already substantial commitments under the uk presidency, presidency of cop have been achieved and we have moved o from only 30% of the global economy committed to a net zero by the middle of the century to 80% and every day as i talk to international leaders, we hear further commitment to make those solid commitments that the world will need, whether it is enough, mr speaker, i am afraid it is too early to say. mr speaker, i applaud the efforts of the uk president under the president designate but i want to direct his attention to this decade. yesterday, very important report came out from the un which he will know the emissions gap report. on the eve of cop it warned that far from harm halving them we are only on course to reduce them by 7.5%. does the prime minister acknowledge, because this is crucial for what happens at
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glasgow and after glasgow, does the prime minister acknowledge how far away we are, from the action required, in this ten year period. mr speaker, indeed i do, but! required, in this ten year period. mr speaker, indeed i do, but i think what the house should also recognise is how far we have moved just in the space of a few years since the paris summit of 2015, where, as i am sure the right honourable gentleman will remember, the world agreed to net zero by 200100 by the end of the century, and agreed and agreed to try to restain global warming by four degree, we are trying to keep alive the prospect of restricting that growth to 1.5 degrees, every day, mr speaker, countries are coming through with solid commitments on a stopping the output of coal—fired power station, reducing their use on internal combustion engines, planting trees and investing hundreds of billions in the developing word. those are solid commitments, whether they will
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be enough i am afraid it is too early to say. i will correct the prime minister, it was the second half of second set out in paris. here is the problem, pm, on this question of net zero target, it is easy to make promises for 30 years' time, it is much more difficult to act now, australia has announced a 2050 net target but its 2030 would head to four degrees of global warming, 2030 would head to four degrees of globalwarming, he 2030 would head to four degrees of global warming, he mustn't shift the goalposts when it comes to glasgow, it is about the emergency we face this decade, it is about the ndcs this decade, it is about the ndcs this decade, it is about the ndcs this decade, please keep the focus on 2030 not 2050 and beyond. the focus is certainly on 2030, we have 122 nationally determined contributions already, 17 out of 20
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620 contributions already, 17 out of 20 g20 countries have made ndcs and the commitments are coming through, and he is right to say that we need to keep the pressure up, what you can't do, mr speaker, is go in advance of what is truly practicable for the world economy, and for what people can do, this government will go as fast as we possibly can, but it was, labour's plans, which i think he endorsed were condemned by the gmb union for, their paymasters mr speaker, for meaning they would be confiscating people's cars by 2030 and families would only be allowed one aeroplane flight every five years one aeroplane flight every five ea - ., , years let me tell him what this summit needs _ years let me tell him what this summit needs is _ years let me tell him what this| summit needs is statesmanship years let me tell him what this - summit needs is statesmanship not part schonship which we just heard from the prime minister. he should not be tried to score party political points on such an important issue facing our country
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and our world. this is never the way i did pmqs. let me ask him about the crucial issue of climate finance for developing countries, because the reason that the paris summit succeeded was it was a coalition of vulnerable countries and developed countries that put pressure on all the big emitters including china and india, but the problem is, that the world has not delivered i did pmqs. let me ask him about the crucial issue of climate finance for developing countries, because the reason that the paris summit succeeded was it was a coalition of vulnerable countries and developed countries that put pressure on all the big emitters including china and india, but the problem is, that the world has not delivered on the hundred billion $of finance promised more than a decade ago in copenhagen, that the plan is deliver it may be in 2023. but i want to ask him about his actions, i want to ask about his action, hasn't it made it much harder to deliver on this promise that we are the only g7 country to cut the aid budget in the run up to this crucial summit? mr speaker, i thought we weren't going to have any partisan points? didn't
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last long. the first thing i did, as one of the first things i did as prime minister was to go out to my first, and announce a huge £11.6 billion commitment, from the uk, to helping the developing world to tackle climate change, i will say to the right honourable member, of course it is true, and we haven't cut that, we have not cut that mr speaker, we are keeping that investment. we are keeping that investment. we are keeping that investment. and let me tell the right honourable gentleman, that this country is working flat out, to ensure that we do reach the £100 billion commitment, we are seeing the money come in from the us from the money come in from the us from the italian, the french, from the european union, and it is right that it should. we have a way to go, mr speaker, whether we will get there or not i cannot say. it is in the blarns but the challenge is there, for the leaders of the developed world and agree they need to rise to it. :, :, :, ~ :,
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it. one thing for him not to know what is in — it. one thing for him not to know what is in the _ it. one thing for him not to know what is in the par— it. one thing for him not to know what is in the par rid _ it. one thing for him not to know what is in the par rid agreement| it. one thing for him not to know. what is in the par rid agreement but not to know what is new zealand his own budget. of course he has cut the aid bunnell, he has abandoned the belief in the aid budget, but it is notjust on aid, mr speaker, where they faced both way, they have a trade deal with australia, where they have allowed them to drop their temperature commitments, they are telling others to power past coal while flirting with a new coal mine and they say we have to move beyond fossil fuels and open a new oil field. isn't the truth mr speaker, that the prime minister has undermined his own cop presidency by saying one thing and doing another? no mr speaker, and he is completely wrong, he is completely wrong, in what, and i think he should, i think he should withdraw what he has just said about the 11.6 billion because we remain absolutely committed to
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the 11.6 billion, that were invested to tackle climate change round the world, and if he, that is absolutely rock solid and he talks about australia, i talk to the prime minister of australia recently and australia has with great difficulty made the commitment to get to net zero by 2050. it's a great thing and mr speaker, i talked to, i talked yesterday to our indonesian friends, a good friend of this country who as degreed on coal to bring forward the abolition of coal use in indonesia to 2040. a fantastic effort by the indonesian, i talk to president putin, yesterday, ithink, mr speakerand putin, yesterday, ithink, mr speaker and he confirmed, he confirmed his determination to get to net zero by the middle of the sent, and that is what the uk is doing, working with countries round the world, to get the outcome we want. it is still too early to say whether it will succeed but it is in the balance. the thing the prime minister has
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underestimated throughout the last two years, is cop26 is not a glorified photo opportunity, it is a fragile and complex negotiation. and the problem is, booster, the prime minister's boosterism won't cut carbon i missions in half, can i say to the prime minister, in these final days, before cop26, we need more than warm words, above all, glasgow has got to be a summit of climate delivery, not climate delay. he talks about cutting co2 in half, thatis he talks about cutting co2 in half, that is virtually what this country, this government has done, mr speaker. since 1990 we have cut co2 by 44% and the economy has grown by 78%, and that is our approach, mr speaker. a sensible pragmatic conservative approach, that cuts
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c02, that tackles climate change and delivered high wage, high skilled jobs across this country, and our net zero plan will deliver 440,000 jobs, that is what the people of this country want to see, and that is what they are seeing their are seeing wages up, growth up, they are seeing wages up, growth up, they are seeing productivity up under this government and if we had left to it the right honourable gentleman and the right honourable gentleman and the leader of the opposition who is sadly not in his place we would still be in lockdown. it is a point he might bring to his attention where ever he is currently self—isolating. thank you, mr speaker. the prime minister will know that both i and my honourable friend, the member for wolverhampton south west, have lobbied for better funding for training and skills provision in wolverhampton. youth unemployment was unacceptably high pre—pandemic, and sadly, it is now the highest rate nationally. with the prime minister urgently look at how the government can level up opportunity,
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so that young people in wolverhampton can get the skills and the confidence they need to find work? mr; the confidence they need to find work? g :, :, ., , , work? my honourable friend is absolutely _ work? my honourable friend is absolutely right _ work? my honourable friend is absolutely right about - absolutely right about wolverhampton. that is why we are working flat out to ensure that young people in wolverhampton benefit from the kick—start scheme, and we are working with wolverhampton council to ensure that young people get the support for their return to work. we young people get the support for their return to work.— young people get the support for their return to work. we now come to their return to work. we now come to the leader of— their return to work. we now come to the leader of the _ their return to work. we now come to the leader of the snp. _ their return to work. we now come to the leader of the snp. thank - their return to work. we now come to the leader of the snp. thank you, - the leader of the snp. thank you, mr seaker. i the leader of the snp. thank you, mr speaker- i am — the leader of the snp. thank you, mr speaker. i am sure _ the leader of the snp. thank you, mr speaker. i am sure the _ the leader of the snp. thank you, mr speaker. i am sure the thoughts - speaker. i am sure the thoughts and prayers _ speaker. i am sure the thoughts and prayers of— speaker. i am sure the thoughts and prayers of the — speaker. i am sure the thoughts and prayers of the entire _ speaker. i am sure the thoughts and prayers of the entire house - speaker. i am sure the thoughts and prayers of the entire house will- speaker. i am sure the thoughts and prayers of the entire house will be i prayers of the entire house will be with the _ prayers of the entire house will be with the family _ prayers of the entire house will be with the family of _ prayers of the entire house will be with the family of walter - prayers of the entire house will be with the family of walter smith, i prayers of the entire house will be i with the family of walter smith, who sadly passed — with the family of walter smith, who sadly passed away _ with the family of walter smith, who sadly passed away yesterday. - with the family of walter smith, who sadly passed away yesterday. the i sadly passed away yesterday. the legend _ sadly passed away yesterday. the legend that — sadly passed away yesterday. the legend that was _ sadly passed away yesterday. the legend that was the _ sadly passed away yesterday. the legend that was the rangers, - sadly passed away yesterday. the - legend that was the rangers, dundee united _ legend that was the rangers, dundee united and _ legend that was the rangers, dundee united and scotland _ legend that was the rangers, dundee united and scotland manager. - legend that was the rangers, dundee united and scotland manager. many. legend that was the rangers, dundeel united and scotland manager. many of us will— united and scotland manager. many of us will not _ united and scotland manager. many of us will not forget _ united and scotland manager. many of us will not forget the _ united and scotland manager. many of us will not forget the day _ united and scotland manager. many of us will not forget the day that - united and scotland manager. many of us will not forget the day that he - us will not forget the day that he led us _ us will not forget the day that he led us to— us will not forget the day that he led us to victory— us will not forget the day that he led us to victory france - us will not forget the day that he i led us to victory france at hampden us will not forget the day that he - led us to victory france at hampden. much— led us to victory france at hampden. much of— led us to victory france at hampden. much of the — led us to victory france at hampden. much of the attention _ led us to victory france at hampden. much of the attention will _ led us to victory france at hampden. much of the attention will turn - led us to victory france at hampden. much of the attention will turn to - much of the attention will turn to
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the chancellor's _ much of the attention will turn to the chancellor's budget, - much of the attention will turn to the chancellor's budget, after. much of the attention will turn to . the chancellor's budget, after prime minister's _ the chancellor's budget, after prime minister's questions. _ the chancellor's budget, after prime minister's questions. but _ the chancellor's budget, after prime minister's questions. but before - the chancellor's budget, after prime minister's questions. but before we| minister's questions. but before we turn to— minister's questions. but before we turn to domestic _ minister's questions. but before we turn to domestic matters, _ minister's questions. but before we turn to domestic matters, i - minister's questions. but before we turn to domestic matters, i think. minister's questions. but before we turn to domestic matters, i think it| turn to domestic matters, i think it is right— turn to domestic matters, i think it is right and — turn to domestic matters, i think it is right and important _ turn to domestic matters, i think it is right and important to _ turn to domestic matters, i think it is right and important to raise - turn to domestic matters, i think it is right and important to raise the. is right and important to raise the dire humanitarian— is right and important to raise the dire humanitarian situation - is right and important to raise the dire humanitarian situation that i is right and important to raise thej dire humanitarian situation that is developing — dire humanitarian situation that is developing in— dire humanitarian situation that is developing in afghanistan. - dire humanitarian situation that is developing in afghanistan. the i dire humanitarian situation that is i developing in afghanistan. the world food programme _ developing in afghanistan. the world food programme estimates- developing in afghanistan. the world food programme estimates that - developing in afghanistan. the worldi food programme estimates that more than half— food programme estimates that more than half the — food programme estimates that more than half the population, _ food programme estimates that more than half the population, about - food programme estimates that more than half the population, about 22.8 i than half the population, about 22.8 million _ than half the population, about 22.8 million people. _ than half the population, about 22.8 million people, face _ than half the population, about 22.8 million people, face acute _ than half the population, about 22.8 million people, face acute food - million people, face acute food insecurity _ million people, face acute food insecurity. 3.2— million people, face acute food insecurity. 3.2 million- million people, face acute food insecurity. 3.2 million childrenl insecurity. 3.2 million children under— insecurity. 3.2 million children under five _ insecurity. 3.2 million children under five could _ insecurity. 3.2 million children under five could suffer- insecurity. 3.2 million children under five could suffer acute i under five could suffer acute malnutrition. _ under five could suffer acute malnutrition. given - under five could suffer acute malnutrition. given the - under five could suffer acute i malnutrition. given the history under five could suffer acute - malnutrition. given the history of the last— malnutrition. given the history of the last 20 — malnutrition. given the history of the last 20 years, _ malnutrition. given the history of the last 20 years, it _ malnutrition. given the history of the last 20 years, it should - malnutrition. given the history of the last 20 years, it should be i the last 20 years, it should be obvious— the last 20 years, it should be obvious that _ the last 20 years, it should be obvious that we _ the last 20 years, it should be obvious that we have - the last 20 years, it should be obvious that we have a - the last 20 years, it should be obvious that we have a deep i obvious that we have a deep responsibility— obvious that we have a deep responsibility to _ obvious that we have a deep responsibility to this - obvious that we have a deep responsibility to this country obvious that we have a deep - responsibility to this country and to its— responsibility to this country and to its people _ responsibility to this country and to its people. mr— responsibility to this country and to its people. mr speaker, - responsibility to this country and to its people. mr speaker, theyl responsibility to this country and i to its people. mr speaker, they are dying _ to its people. mr speaker, they are dying and — to its people. mr speaker, they are dying and they— to its people. mr speaker, they are dying. and they need _ to its people. mr speaker, they are dying. and they need our help. - to its people. mr speaker, they are dying. and they need our help. it i to its people. mr speaker, they arej dying. and they need our help. it is only two— dying. and they need our help. it is only two months— dying. and they need our help. it is only two months since _ dying. and they need our help. it is only two months since allied - only two months since allied forces relinguished — only two months since allied forces relinquished control— only two months since allied forces relinquished control of— only two months since allied forces relinquished control of the - only two months since allied forces relinquished control of the country. can the _ relinquished control of the country. can the prime — relinquished control of the country. can the prime minister— relinquished control of the country. can the prime minister update - relinquished control of the country. can the prime minister update us. relinquished control of the country. | can the prime minister update us on what exactly — can the prime minister update us on what exactly his _ can the prime minister update us on what exactly his government - can the prime minister update us on what exactly his government is - can the prime minister update us oni what exactly his government is doing to end _ what exactly his government is doing to end the _ what exactly his government is doing to end the famine _ what exactly his government is doing to end the famine in _ what exactly his government is doing to end the famine in afghanistan? i what exactly his government is doing to end the famine in afghanistan? 1. to end the famine in afghanistan?! thank to end the famine in afghanistan? thank the right honourable gentleman. he raises an issue that i
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know is on the minds of many people in this house and across the country. we are proud of what we have done to welcome people from afghanistan, but we must do everything we can to mitigate the consequences for the people of afghanistan, of the taliban takeover. he will recall that we doubled our aid commitment for this year, to £286 million. we are working with the un agencies and other ngos to do everything we can to help the people of afghanistan. what we can't do at the moment is right a completely blank cheque to the talabardon authorities. we need to ensure that the country does not slip back into being a tape lingo haven for terrorism and a narco state. , :, haven for terrorism and a narco state. , . ., ., ., state. there is a humanitarian crisis and _ state. there is a humanitarian crisis and people _ state. there is a humanitarian crisis and people are - state. there is a humanitarian crisis and people are in - state. there is a humanitarian crisis and people are in need i state. there is a humanitarian -
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crisis and people are in need today. there _ crisis and people are in need today. there is— crisis and people are in need today. there is nothing _ crisis and people are in need today. there is nothing there _ crisis and people are in need today. there is nothing there about- there is nothing there about tangible _ there is nothing there about tangible actions— there is nothing there about tangible actions the - there is nothing there about- tangible actions the government is taking _ tangible actions the government is taking the — tangible actions the government is taking. the situation _ tangible actions the government is taking. the situation is _ tangible actions the government is taking. the situation is getting - taking. the situation is getting worse — taking. the situation is getting worse by— taking. the situation is getting worse by the _ taking. the situation is getting worse by the day. _ taking. the situation is getting worse by the day. in _ taking. the situation is getting worse by the day. in august, i taking. the situation is getting i worse by the day. in august, the allies _ worse by the day. in august, the allies ran— worse by the day. in august, the allies ran away— worse by the day. in august, the allies ran away from _ worse by the day. in august, the allies ran away from their - allies ran away from their responsibilities— allies ran away from their responsibilities in- allies ran away from their - responsibilities in afghanistan, and now it _ responsibilities in afghanistan, and now it very— responsibilities in afghanistan, and now it very much _ responsibilities in afghanistan, and now it very much feels _ responsibilities in afghanistan, and now it very much feels like - responsibilities in afghanistan, and now it very much feels like this - now it very much feels like this government— now it very much feels like this government is— now it very much feels like this government is washing - now it very much feels like this government is washing its - now it very much feels like this i government is washing its hands now it very much feels like this - government is washing its hands of the legacy— government is washing its hands of the legacy left _ government is washing its hands of the legacy left behind. _ government is washing its hands of the legacy left behind. not - government is washing its hands of the legacy left behind. not alone i the legacy left behind. not alone are the _ the legacy left behind. not alone are the afghan _ the legacy left behind. not alone are the afghan people _ the legacy left behind. not alone are the afghan people in- the legacy left behind. not alone are the afghan people in being i the legacy left behind. not alone i are the afghan people in being fair marker— are the afghan people in being fair marker failed — are the afghan people in being fair marker failed on— are the afghan people in being fair marker failed on humanitarian- are the afghan people in being fair marker failed on humanitarian aid. promises— marker failed on humanitarian aid. promises made _ marker failed on humanitarian aid. promises made to _ marker failed on humanitarian aid. promises made to them _ marker failed on humanitarian aid. promises made to them about - marker failed on humanitarian aid. i promises made to them about being resettled _ promises made to them about being resettled or— promises made to them about being resettled or been _ promises made to them about being resettled or been broken. _ promises made to them about being resettled or been broken. the - promises made to them about being i resettled or been broken. the afghan citizens— resettled or been broken. the afghan citizens resettlement _ resettled or been broken. the afghan citizens resettlement scheme - resettled or been broken. the afghan citizens resettlement scheme was - citizens resettlement scheme was announced — citizens resettlement scheme was announced on— citizens resettlement scheme was announced on the _ citizens resettlement scheme was announced on the 18th _ citizens resettlement scheme was announced on the 18th of- citizens resettlement scheme was announced on the 18th of august, j announced on the 18th of august, which _ announced on the 18th of august, which talked _ announced on the 18th of august, which talked about _ announced on the 18th of august, which talked about resettling - announced on the 18th of august, which talked about resettling up i announced on the 18th of august, i which talked about resettling up to 20,000 _ which talked about resettling up to 20,000 in — which talked about resettling up to 20,000 in the _ which talked about resettling up to 20,000 in the coming _ which talked about resettling up to 20,000 in the coming years. - which talked about resettling up to 20,000 in the coming years. but i which talked about resettling up to - 20,000 in the coming years. but more than two _ 20,000 in the coming years. but more than two months — 20,000 in the coming years. but more than two months on, _ 20,000 in the coming years. but more than two months on, we _ 20,000 in the coming years. but more than two months on, we have - 20,000 in the coming years. but more than two months on, we have heard i than two months on, we have heard nothing _ than two months on, we have heard nothing the — than two months on, we have heard nothing. the afghan _ than two months on, we have heard nothing. the afghan people - than two months on, we have heard nothing. the afghan people are - than two months on, we have heard i nothing. the afghan people are being left with— nothing. the afghan people are being left with no— nothing. the afghan people are being left with no updates, _ nothing. the afghan people are being left with no updates, and _ nothing. the afghan people are being left with no updates, and vague - left with no updates, and vague targets — left with no updates, and vague targets so _ left with no updates, and vague targets so can— left with no updates, and vague targets. so can the _ left with no updates, and vague targets. so can the prime - left with no updates, and vague . targets. so can the prime minister finally— targets. so can the prime minister finally tell — targets. so can the prime minister finally tell us — targets. so can the prime minister finally tell us when _ targets. so can the prime minister finally tell us when the _ finally tell us when the resettlement - finally tell us when the resettlement scheme i finally tell us when the i resettlement scheme will finally tell us when the - resettlement scheme will open? finally tell us when the _ resettlement scheme will open? can he guarantee — resettlement scheme will open? can he guarantee that _ resettlement scheme will open? can he guarantee that 20,000 _ resettlement scheme will open? can he guarantee that 20,000 afghans i he guarantee that 20,000 afghans will be _ he guarantee that 20,000 afghans will be resettled, _ he guarantee that 20,000 afghans will be resettled, and _ he guarantee that 20,000 afghans will be resettled, and when - he guarantee that 20,000 afghans will be resettled, and when exactlyj will be resettled, and when exactly is the _ will be resettled, and when exactly is the deadline _ will be resettled, and when exactly is the deadline for— will be resettled, and when exactly is the deadline for that _ will be resettled, and when exactly is the deadline for that to - will be resettled, and when exactly is the deadline for that to happen? j
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is the deadline for that to happen? mr speaker, — is the deadline for that to happen? mr speaker, we— is the deadline for that to happen? mr speaker, we made— is the deadline for that to happen? mr speaker, we made a _ is the deadline for that to happen? i mr speaker, we made a commitment is the deadline for that to happen? - mr speaker, we made a commitment to resettled 20,000 afghans. in addition to those that we brought out under the operation which i think most fair—minded people in this country would think is a pretty remarkable feat, by the uk armed services. and many of those 15,000 are already being integrated into the uk, into schools, into communities, and we will help them in any way that we can. and one of the reasons... i'm afraid he is completely wrong in his characterisation of the stance the uk has taken towards afghanistan and the changes there. we continue to engage. we engage with the taliban. this country was one of the first to reach out and begin a dialogue. what we are insisting on is safe passage, mr speaker. what we are insisting... just to get to his point, where he rather civilly calls out, what we
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are insisting on is safe passage for those that wish to come and settle in this country. people to whom we owe an obligation. that is what we are doing. i have answered the question! david warburton. thank you. as the whole house _ david warburton. thank you. as the whole house will _ david warburton. thank you. as the whole house will know, _ david warburton. thank you. as the whole house will know, today - david warburton. thank you. as the whole house will know, today is - whole house will know, today is national cheese toastie day. it's a fact. 4.3 million were consumed last year. glorious summers thatis consumed last year. glorious summers that is the home of cheddar cheese. so with the news that a farm in my constituency is produce and what i think is the will�*s first entirely carbon neutral cheddar cheese, did my honourable friend know that eating cheddar from somerset
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my honourable friend know that eating cheddarfrom somerset can reduce your cheese consumption and carbon footprint by 55%? will my right honourable friend support our vibrant dairy industry by committing to enjoying a carbon neutral cheese toastie today?— to enjoying a carbon neutral cheese toastie today? well, mr speaker, my only question — toastie today? well, mr speaker, my only question is _ toastie today? well, mr speaker, my only question is why _ toastie today? well, mr speaker, my only question is why is _ toastie today? well, mr speaker, my only question is why is it _ toastie today? well, mr speaker, my only question is why is it only - only question is why is it only national cheese toastie des? why is it not international? i hope very much that among the many achievements, the cop26 summit will bring the entire global community to a better understanding of the farm carbon neutral cheese toastie. thank ou, mr carbon neutral cheese toastie. thank you. mr speaker- _ carbon neutral cheese toastie. thank you, mr speaker. the _ carbon neutral cheese toastie. thank you, mr speaker. the prime - carbon neutral cheese toastie. “t�*tag�*ta; you, mr speaker. the prime minister will be aware of the harm that the northern ireland protocol is doing to the political and economic stability of northern ireland. the very delicate constitutional balance created by the belfast or good friday agreement. in july,
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created by the belfast or good friday agreement. injuly, they committed to addressing these issues and recognise that the protocol is simply not sustainable. does the prime minister accept that the conditions now exist to trigger article 16 of the protocol, in the event that the current negotiations with the eu fail to arrive at an acceptable outcome? the right honourable _ acceptable outcome? the right honourable gentleman - acceptable outcome? the right honourable gentleman is - acceptable outcome? the right - honourable gentleman is completely right. we are working hard to secure an agreement by negotiation. he knows the real life issues on the ground in northern ireland haven't gone away. if we can't see progress, as we have been saying for some months, if we can't see rapid progress in the way that we spelt out in our command paper, i think it is clear to everybody that the conditions for invoking article 16
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have already been met. the airedale hosital in have already been met. the airedale hospital in my _ have already been met. the airedale hospital in my constituency - have already been met. the airedale hospital in my constituency is - have already been met. the airedale hospital in my constituency is made| hospital in my constituency is made predominantly from aerated concrete, known for its structural deficiencies, and it is now in desperate need of a new rebuild. as the prime minister will be aware, the prime minister will be aware, the airedale hospital recently submitted its bid to government for a brand—new, carbon neutral hospital. it is fantastic news that this conservative government will deliver 48 new hospitals. can i make an urgent plea to the prime minister that the airedale is one of them? mr; that the airedale is one of them? my honourable friend will be hearing a little bit more, indeed the whole house will be hearing more about the spending for health in just a few moments. i can tell him that we have received 120 applications for the biggest hospital building programme in a generation, and his application will certainly be amongst those that will certainly be amongst those that will get our most urgent consideration.— will get our most urgent consideration. . ,, , :, ~ consideration. thank you, mr speaker- _ consideration. thank you, mr speaker. this _ consideration. thank you, mr speaker. this government i consideration. thank you, mr speaker. this government is| consideration. thank you, mr - speaker. this government is failing women and girls. from lack of rape
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prosecutions, no victim spell, to letting victims of the hook. and now women and girls, including my own children, are being targeted with a sinisterform of spiking children, are being targeted with a sinister form of spiking through injections. it is always women and girls who pay the heaviest price. now, they are taking a stand today and saying enough is enough. so, how many more women and girls will be hunted or excluded before the prime minister himself finally takes a stand? mr minister himself finally takes a stand? ~ ,,, ., ,, ,:, minister himself finally takes a stand? ~ .,~ :, stand? mr speaker, the report of s-aikin stand? mr speaker, the report of spiking are _ stand? mr speaker, the report of spiking are extremely _ stand? mr speaker, the report of spiking are extremely disturbing. stand? mr speaker, the report of. spiking are extremely disturbing. as the honourable lady knows, it is already a criminal offence. i know the home secretary has asked the police to update her on exactly what details we have, and give them the space for the time being to conduct their inquiries. i would ask anybody
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with information about such incidents to come forward and contact their local police. with cop26 with co p26 being with cop26 being imminent, i would like to draw attention to what good work is being done in morecambe, at the eden project. morecambe and lancaster college has put forward a programme to teach youngsters the international eden ethos, to propagate the goodwill around the world. i would like to invite the prime minister to come to morecambe, and come to the riviera, to see the site. t and come to the riviera, to see the site. :, and come to the riviera, to see the site. . :, , ,:, site. i am delighted to respond in the affirmative. _ site. i am delighted to respond in the affirmative. last _ site. i am delighted to respond in the affirmative. last time - site. i am delighted to respond in the affirmative. last time he - site. i am delighted to respond in i the affirmative. last time he asked me about this is was to ensure that we got the eden project in morecambe. it sounds like from what he is saying that we are making progress in that direction, and that is thrilling. i progress in that direction, and that is thrillinu. :, progress in that direction, and that is thrillinu. . , :, is thrilling. i am sure the whole house would — is thrilling. i am sure the whole house would want _ is thrilling. i am sure the whole house would want to _ is thrilling. i am sure the whole house would want to send - is thrilling. i am sure the whole house would want to send my i is thrilling. i am sure the whole - house would want to send my right
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honourable friend the leader of the opposition our best wishes. it is also good to see a few more conservative mps heeding the health secretary's play and wearing masks. but given we have had for several weeks now covid infection, hospitalisation and death rates far, far higher than any other western european country, was it a mistake to abandon all of those precautions backin to abandon all of those precautions back injuly? if not, why are the figures so bad? mr back in july? if not, why are the figures so bad?— back in july? if not, why are the figures so bad? mr speaker, i thank the honourable _ figures so bad? mr speaker, i thank the honourable gentleman - figures so bad? mr speaker, i thank the honourable gentleman for - figures so bad? mr speaker, i thank the honourable gentleman for his i the honourable gentleman for his question. we monitor all of the data very carefully every day. but we see nothing to suggest that we need to deviate from the plan that we have set out, that began with the road map in february, and that we are sticking to it, it has given us this and this country the opportunity to achieve the unlocking is that we have seen, the fastest economic
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growth in the g7. mr; have seen, the fastest economic growth in the g7. my constituent has com osed growth in the g7. my constituent has composed a — growth in the g7. my constituent has composed a song — growth in the g7. my constituent has composed a song about _ growth in the g7. my constituent has composed a song about the - growth in the g7. my constituent has composed a song about the positive | composed a song about the positive action we can each take to combat climate change, which emphasises the need to clean, protect and repair. will the prime ministerjoined me in encouraging all uk schools to follow the lead of fairfield prep school in loughborough, and other schools across the world, from hawaii to norway, in raising awareness of this important issue, through learning the song? important issue, through learning the son: ? ~ important issue, through learning the sona? ~ , , important issue, through learning thesona? , , :, important issue, through learning thesona? ,, :, ., :, the song? well, yes, do i have to learn the song? _ the song? well, yes, do i have to learn the song? i _ the song? well, yes, do i have to learn the song? i will _ the song? well, yes, do i have to learn the song? i will do - the song? well, yes, do i have to learn the song? i will do my - the song? well, yes, do i have to| learn the song? i will do my best, mr speaker. i thank my honourable friend for raising the work of her constituents, and her constituent�*s school. it is absolutely vital that we not only recycle, where it is sensible, but above all, we cut down on the use of plastics. this
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sensible, but above all, we cut down on the use of plastics.— on the use of plastics. this week, it was revealed _ on the use of plastics. this week, it was revealed that _ on the use of plastics. this week, it was revealed that fossil - on the use of plastics. this week, it was revealed that fossil fuel - it was revealed that fossil fuel companies, interest groups and climate deniers have donated £1.3 million to the conservative party and its mps since 2019. so, a simple question, no waffling or dodging the issue, on the eve of cop26, will the prime minister demonstrated that he is serious about tackling the climate emergency, by paying back this money and pledging that his party will never again take money and donations from the fossil fuel companies that are burning our planet? yes or no? mr companies that are burning our planet? yes or no? mr speaker, all of our donations _ planet? yes or no? mr speaker, all of our donations are _ planet? yes or no? mr speaker, all of our donations are registered - planet? yes or no? mr speaker, all of our donations are registered in l of our donations are registered in the normal way. i would just remind her that the labour party's paymasters, the gmb day think that labour's policies mean that it would end up with families having their cars confiscated and are unable to take a flight every three years.
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later this afternoonly be welcoming some young people from my constituency who see their futures in the renewable energy sector which has done so much to level up the grimsby and north east lincolnshire area. will the prime minister given assurance the government will continue to invest in skills and development of our young people, to benefit the regional, renewable energy sector. yes, mr speaker, and i think the whole house should be proud of the fact that the uk produces more offshore wind thanks, not hot air mr speaker, but energy for the people of this country. clean green energy, produced off cleethorpes in the north sea and will be massively increasing the volume of that output. increasing the volume of that out - ut. ~ increasing the volume of that outut. ~ ,,, ., ,, increasing the volume of that outut. ~ .~ ., increasing the volume of that outut. ~ w ., , output. mr speaker, a thriving steel indust is output. mr speaker, a thriving steel industry is the _ output. mr speaker, a thriving steel
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industry is the foundation _ output. mr speaker, a thriving steel industry is the foundation of - output. mr speaker, a thriving steel industry is the foundation of a - output. mr speaker, a thriving steel industry is the foundation of a more j industry is the foundation of a more productive and resilient britain yet bickerering between the chancellor and the business secretary is blocking the... since long before the current price hike, with the pathway to net zero, the pe dent on steel firms use more electricity will he urge his colleagues to put in place a wholesale energy price cap, along with long overdue reductions in network connection cost, mr speaker, cop won't work without a cap. mr speaker he is making a very important point about the high energy costs for energy intensive industries and that is why we have abated them but with about £2 billionle since 2013. the answer is to do what we are doing, to make up the long—term base load needs of this economy by investing in nuclear which i am afraid labourfailed to do in their 13 lost year, mr
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speaker, as well as in renewables. so that bring us to the end of prime minister's questions and you saw there, just briefly, sir lindsay hoyle scrotiing his speaker's cheer, thatis hoyle scrotiing his speaker's cheer, that is because there is a reset ahead of the budget and we can see eleanor laing taking her place, she will be as chairman of ways and means presiding over the budget proceed, butjust as prime minister's questions was starting there was a flurry of excitement interest because there was a change of personnel you will have noticed keir starmer was not in his usual place asking the question, it was someone who was once familiar of course with prime minister's questions and that ised miliband. that is right. the questions and that ised miliband. that is right-— questions and that ised miliband. that is riuht. ,, ., :, ,, : ., , that is right. the shadow secretary of state for — that is right. the shadow secretary of state for business _ that is right. the shadow secretary of state for business and _ that is right. the shadow secretary of state for business and energy i of state for business and energy because he has covid. that of state for business and energy because he has covid.— of state for business and energy because he has covid. that is filth. while we were _ because he has covid. that is filth. while we were chatting _ because he has covid. that is filth. while we were chatting at _ because he has covid. that is filth. while we were chatting at one - because he has covid. that is filth. l while we were chatting at one minute to 12. i looked down to show our viewers and i had a message saying that keir starmer has tested positive for covid. he has isolated
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before and been frustrated during that whole process but he has tested positive for covid. with 20 minutes to go, the labour party decided to switch ined miliband who is shadow business secretary, they had decided to talk about climate conference, tarting in a few days' time which is his specialist subject so the subject was the same, but the personnel was very different. another complication, by rights it would have normally been angela rayner, she is still away from westminster on bereavement leave, so right now what is happening is there a whole flurry of people ho have beenin a whole flurry of people ho have been in and round keir starmer being tested. , :, :, tested. trying to find out if an bod tested. trying to find out if anybody else _ tested. trying to find out if anybody else is _ tested. trying to find out if anybody else is testing - tested. trying to find out if - anybody else is testing positive. rachel reeves has tested negotiations the iv and she will be doing the budget response because by awkward tradition it normally the leader of the opposition, but keir starmer will be frustrated not to be able do that today. ihlat
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starmer will be frustrated not to be able do that today.— starmer will be frustrated not to be able do that today. not an easy “0b, of course to — able do that today. not an easy “0b, of course to respond i able do that today. not an easy “0b, of course to respond to i of course to respond to the government, to the chancellor on budget day, but certainly they wouldn't have wanted this to unfold, so close, of course, to the moment, but rachel reeves will have her chance, the shadow chancellor to step into keir starmer�*s shoes, and give that response, of course she will have been pretty well briefed on everything, as she knows the sort of material that is going to be, but still having to step up and do that at the last moment isn't easy. normally you see the shadow chancellor whispering o in the ear of the leader of the opposition throughout the budget. rachel reef, she is a very well—respected figures she is a very well—respected figures she was a former economist at the bank of england, there are no flies on her, so i don't think she will be caught out but it's a nightmare of a political moment to handle, even if you are the most ex economist in all of westminster.—
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of westminster. meanwhile you can see the chamber _ of westminster. meanwhile you can see the chamber there, _ of westminster. meanwhile you can see the chamber there, as - of westminster. meanwhile you can see the chamber there, as we - of westminster. meanwhile you can see the chamber there, as we said i see the chamber there, as we said early on, pret pi tacked, interesting to note masks being worn, they did seem to be more prevalent on the conservative benches, they have been on the labour benches, you could see the prime minister being flanked by the justice secretary dominic raab and rishi sunak, obviously, the chancellor who will be standing up shortly to deliver his budget and here he is. madame deputy speaker, i have heard your words and those of mr speaker, i have the greatest respect for you both, and i want to assure you they have listened very carefully to what you have said. and may i also madame deputy speaker send my best wishes to the leader of the opposition and i know the whole house willjoan me in doing that. now with your permission, let me turn to today's budget. employment is up, investment is
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growing, public services are improving the public finances are stabilising and wages are rising. today ease budget delivers a stronger economy for the british people, stronger growth with the uk recovering faster than our major competitors, stronger public finances with our debt under control, stronger employment with fewer people out of work, and more people in work. growth up, jobs up, and debt down. let there be no doubt our plan is working. madame deputy speaker, this budget is about what this government is about. investment, in a more innovative high skilled economy because that is the only sustainable path to individual prosperity. world class
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public services, because these are the common goods from which we all benefit. backing business, because ourfuture benefit. backing business, because our future cannot be built by government alone but must come from the imagination and drive of our entrepreneurs, help for working families, with the cost of living, because we will always give people the support they need, and the tools to build a better life for themselves. and levelling up. because for too long, far too long, the location of your birth has determined too much of your future, because the awesome power of opportunity shouldn't be available only to a wealthy few, but be the birth right of every child in an independent and prosperous united kingdom. madame deputy speaker, today's budget does not draw a line under covid, we have challenging months ahead. and let me encourage everyone else scribble to get their booster jobs as
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everyone else scribble to get their boosterjobs as —— jabs as soon as possible. but today's budget begins the work of preparing for a new economy post covid. the prime minister's economy, of higher wage, higher skills and rising productivity, of strong public service, vibrant communities and safer streets, an economy fit for a new age of optimism. where the only limit to our potential is the effort we are prepared to put in, and the sacrifices we are prepared to make. that is the stronger economy of the future, and this budget is the foundation. madame deputy speaker, the house will recognise the challenging backdrop of rising inflation. let me begin by carefully explaining what is happening in our economy, and why. inflation in september was 3.1%. and it is likely to rise further, with the obr expecting cpi to average 4% over the
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next year. the imagine major general —— majority of this rise in inflation, can be explained by two global forces. first, as economies around the world reopen, demand for goods has increased more quickly than supply chains can meet. having been shut down for almost a year, it takes time forfactories to down for almost a year, it takes time for factories to sail up production, for container ships to move goods to where demand is, for businesses to hire the people they need. and second, global demand for energy has surged at a time when supplies have already been disrupted, putting a strain on prices. in the year to september, the global wholesale price of oil, coal and gas combined has more than doubled. the pressures caused by supply chains, and energy prices, will take months to ease. it would be irresponsible for anyone to pretend we can solve this overnight. i am in regular communication with
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finance ministers round the world and it is clear these are shared global problems, neither unique to the uk, nor possible for us to address on our own. but where the government can ease these pressures, we will act. to address the driver shortage, the transport secretary as introducing temporary visa, tackling testing backlogs, changing requirements and is today announced new funding to improve lorry park facilities. we have already suspended the hgv levy until august, and i can do more today. extending it for a further year until 2023, and freezing vehicle excise duty for heavy goods vehicles. to help with the cost of living we have row introduced a new half a billion pound house household support fund and today's budget will support fund and today's budget will support working families further.
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and in terms of our fiscal policy, we are going to meet our commitments on public service and capital investment but we are going to go so keeping in mind the need to control inflation. and finally, i have written to the governor of the bank of england today, to reaffirm their remit, to achieve low and stable inflation. and people should be reassured they have a strong track record in doing so. i understand people are concerned about global inflation, but they have a government here at home, ready and willing to act. and madame deputy speaker, in a period of global uneternity, you need to work hard to maintain a strong economy, and be responsible for with the public finances and that is what we are doing. i am grateful to the obr for their work, and i am pleased
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to say they now expect our recovery to say they now expect our recovery to be quicker. thanks to this government's actions, they forecast the economy to return to its pre—covid level at the turn of the year, earlierthan pre—covid level at the turn of the year, earlier than they thought in march. growth this year is revises up from four to 6.5%. the obr expect the economy to grow by 6% in 2022, and 2.1,1.3 economy to grow by 6% in 2022, and 2.1, 1.3 and economy to grow by 6% in 2022, and 2.1,1.3 and 1.6% over the next three years. injuly last year, at the height of the pandemic, unemployment was expected to peak at 12%. today, the obr expect unemployment to peak at just 5.2%.
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that means over two million fewer people out of work than previously feared. and wages are rising, compared to february 2020, they have grown in real terms by almost 3.5%. i can confirm from the house the forecast has been revised up over the next five years. and because of the actions, we took to support our economy, we have been more successful than previously feared, in preventing the long—term economic damage of covid. the obr have today revised down their scarring assumption from 3%, to 2%. in the depths of the worst economic crisis on record, we set out a plan for jobs. a plan that was backed by business groups and trade bodies, a plan that has helped millions of people and saved millions ofjobs, a plan that the obr have today described as remarkably successful.
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madame deputy speaker, today's forecast confirmed beyond doubt our plan for jobs forecast confirmed beyond doubt our plan forjobs is working. and madame deputy speak, december eruption in the global economy highlighted the importance of strong public finances. coronavirus left us with borrowing higher than at any time since the second world war. as the prime minister reminded us in his conference speech, higher borrowing today is just higher interest rates and even higher taxes tomorrow. so we need to strengthen our public finances, so that when the next crisis comes, we have the fiscal space to act. today, i am publishing a new charter for budget responsibility. the charter sets out two fiscal rules, which will keep this government on the path of discipline and responsibility. first, underline public sector net debt excluding the impact of the bank of england, must as a
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percentage of gdp be falling. second, in normal times, the state should only borrow to invest in our future growth and prosperity, every day spending must be paid through taxation. both rules must be met by the third year of every forecast period, giving up the flexibility to respond to crises, while credibly keeping our public finances under control. these rules are sup lamented by targets to spend up to 3% of gdp on capital investment and keep welfare spending on a path. the house will be asked to vote on our charter, giving members a simple choice. to abandon ourfiscal giving members a simple choice. to abandon our fiscal anchor and leave our economy adrift with reckless unfunded pledges, or to vote for what we on this side of the house know is the right course, sound public finances and a stronger economy for the british people.
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madame deputy speaker, important as the charter is, our credibility comes as much from what we do, as what we say. so i am pleased to tell the house, that because our plan is delivering a stronger economy, and because we have taken tough but responsible decisions on public finances, the obr report today, that all our fiscal rules have been finances, the obr report today, that all ourfiscal rules have been met. underlying debt is forecast to be 84% this year, than 85.4% of gdp in 2022/23 before peaking at 85.7 in 2023/24, it falls in the final three years of the forecast, from 85.1, to 83.3%. borrowing as a percentage of gdp is forecast to fall in every single
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year. 2.4, 1.7, and then 1.4% in the following years. borrowing, down. datacom are down. proving, once again, it is the conservatives, and only the conservatives, who can be trusted with taxpayers' money. madam deputy speaker, i have made four fiscaljudgments in this budget. we will meet ourfiscal fiscaljudgments in this budget. we will meet our fiscal rules with a margin to protect ourselves against economic risk. that is the responsible decision at a time of increasing global economic uncertainty. when public finances are twice as sensitive to changes in interest rates as they were before the pandemic, and six times as sensitive as they were before the financial crisis. just one
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percentage point in inflation and interest rates would cost is around £23 billion. my second judgment todayis £23 billion. my second judgment today is to continue supporting working families. third, as well as helping people at home, our improving fiscal situation means we will meet our obligations to the world's poorest. i told the house when we met our fiscal tests, we would return to spending 0.7% of our national income on overseas aid. some people said this was a trick, or a device. i told this house it was no such thing. and based on the tests i set out, today's forecasts show that we are in fact scheduled to return to 0.7 in 24—25, before the end of this parliament.
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madam deputy speaker, my fourth fiscaljudgment is this. today's budget increases total departmental spending over this parliament by £150 billion. that is the largest increase this century, with spending growing by 3.8% per year in real terms. as a result of the spending review, and contrary to speculation, there will be a real terms rise in overall spending for every single department, and public sector net investment, as a share of gdp, will be at the highest sustained level for nearly half a century. if anybody still doubts it, today's budget confirms the conservatives are the real party of public services.
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madam deputy speaker, our stronger economy lays the foundation for everything we want to achieve in today's budget. world—class public services and more investment in our future growth. before i turned the details, i would like to thank my honourable friend the chief secretary. completing the spending review in such challenging circumstances was a tall order, and, thankfully, we had just the man for thejob. madam deputy speaker, at thejob. madam deputy speaker, at the start of this parliament, resource spending on health care was £133 billion. today's spending review confirms that by the end of this parliament it will increase by £44 billion, to over 177 billion. and the extra revenue we are forecast to raise family health and social care levy is going direct to
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the nhs and social care, as promised. the health capital budget will be the largest since 2010. record investment in health r&d, including better newborn screening, has campaigned for by the member for the cities of london and westminster. 40 new hospitals, 70 hospital of grades. more operating theatres to tackle the backlog. and 100 community diagnostic centres. all staffed by a bigger, better trained workforce, with 50,000 more nurses and 50 million more primary care appointments. as well as funding to deliver the prime minister's historic reforms to social care, we are providing local government with new grant funding over the next three years of £4.8 billion, the largest increase in core funding for over a decade. and we are investing more in housing and homeownership, too, with a multi—year housing settlement,
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totalling nearly £24 billion. 11.5 billion to build up to the 180,000 new affordable homes, the largest cash investment in a decade. 20% larger than the previous programme. and we are investing an extra £1.8 billion, enough to bring 1500 hectares of brownfield land and to use, meet our commitment to invest £10 billion in new housing, and unlock1 million new homes. we are also confirming £5 million to remove unsafe cladding from the highest risk buildings. partly funded by the residential property developers tax, which i can confirm will be levied on developers with profits over £25 million at a rate of 4%. and we have also reduced rough sleeping by over also reduced rough sleeping by over a third. we will go further. £640 million a yearfor a third. we will go further. £640 million a year for rough sleeping
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and homelessness, and 85% increase in funding, compared to 2019. madam deputy speaker, today's budget funds our ambition to recruit 20,000 new police officers, provides an extra £2.2 billion for courts, prisons and probation services. including half £1 billion to reduce the court's backlog. it pays for programmes to tackle neighbourhood crime, reoffending, county lines, violence against women and girls, victim services and improved responses to rape cases. over the next three years, it commits £3.8 billion to the largest prison building programme in a generation. madam deputy speaker, all governments should aspire to provide a greater life chances for future generations. but few governments can match our ambition. let me now turn to what this budget does to support children. the evidence is
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compelling, that the first 1001 days of a child's life is the most important. my right honourable friend, the memberfor important. my right honourable friend, the member for south northamptonshire, has recognised this with her inspirational report. and we are responding today with £300 million for a start for life offerforfamilies, high—quality offer for families, high—quality parenting programmes, offerforfamilies, high—quality parenting programmes, tailored services to help with perinatal mental health, and, i'm pleased to tell the memberfor mental health, and, i'm pleased to tell the member for congleton, funding to create a network of hubs around the country, to improve the quality of childcare. we are going to pay providers more, with today's spending review providing an extra £170 million by 24—25. we are confirming £150 million to support trading and development for the entire early years workforce, to help up to 300,000 more families facing multiple needs. we are
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investing an extra £200 million in the supporting families programme, and we will provide over £200 million a year to continue the holiday, activity and food programme. today's spending review also delivers our commitment to schools. an extra £4.7 billion by 24-25, schools. an extra £4.7 billion by 24—25, which, combined with the ambitious plans we announced on the spending review 2019, will restore per—pupilfunding to spending review 2019, will restore per—pupil funding to 2010 levels spending review 2019, will restore per—pupilfunding to 2010 levels in real terms. per—pupilfunding to 2010 levels in realterms. equivalent per—pupilfunding to 2010 levels in real terms. equivalent to a cash increase for every pupil of more than £1500. and for children with special educational needs and disabilities, we are more than tripling the amount we invest, to create 30,000 new school places. and we know that the pandemic caused
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significant disruption to children's learning. we have already announced £3.1 billion to help education recovery. today, as promised by the prime minister and the education secretary, we will go further, with just under £2 billion of new funding to help schools and colleges, bringing the support for education recovery to almost £5 billion. madam deputy speaker, as we level at the public services, we are also levelling up communities, restoring the pride of people feel in the places they call home. to do that, we are providing £560 million for youth services, enough to fund up to 300 youth clubs across the country. over £200 million to build and transform 8000 state—of—the—art community football pitches across
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the uk. funding to turn over 100 areas of derelict land into new pocket parks, and i am allocating the first round of bids from the levelling up fund. £1.7 billion to invest in the infrastructure of everyday life in over 100 local areas, with 170 million in scotland, 120 million in wales, and 50 million in northern ireland, more than their barnet shares. this will benefit the whole united kingdom. we are backing projects in aberdeen, bury, lowered south, and three successful projects for the city of stoke—on—trent. but thatis for the city of stoke—on—trent. but that is not all. we are also going to fund projects in ashton—under—lyne, south leicester, sunderland, doncaster and west
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leeds. madam deputy speaker, we are so committed to levelling up that we are even levelling up the opposition front bench. madam deputy speaker, levelling up is also about protecting our unique culture and heritage. the british museum, tate liverpool, the york railway musician, we are investing £800 million to protect museums, galleries, libraries and local culture. thanks to the culture secretary, over 100 regional museums and libraries will be renovated, restored and revived. and she secured up to £2 million to start work on a new beatles attraction on the liverpool waterfront. we are also going to review our museum freedoms, and make our creative tax reliefs more generous. on current plans, the tax relief for museums
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and galleries is due to end in march next year. just as exhibitions are starting to tour again. so i have decided to extend it for two years, until march 2024. and to support theatres, orchestras, museums and galleries to recover from covid, theatres, orchestras, museums and galleries to recoverfrom covid, the tax reliefs for all of those sectors, from today, until april 2023, will be doubled. and they won't return to the normal rate until april 2024. that is a tax relief for culture worth almost a quarter of £1 billion. and, madam deputy speaker, this is a budget for the whole united kingdom. through the whole united kingdom. through the barnett formula, today's decisions increase scottish government funding in each year by an average of £4.6 billion. welsh government funding, by £2.5 billion. and £1.6 billion for the northern
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ireland executive. this delivers, in real terms, the largest block grants for the devolved administrations since the devolution settlement is of 1998. the whole of the united kingdom will benefit from the uk shared prosperity fund, and, over time, we will ramp up funding so that total domestic uk wide funding will match eu receipts, averaging about £1.5 billion a year. and we will fund projects across the uk, including funding for the extreme race in scotland, accelerating funding for the cardiff city region deal in wales, and funding in northern ireland for community cohesion. and whilst today demonstrates the indisputable fiscal benefit of being part of the united kingdom, this is, and always will
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be, secondary to the simple truth that we are bound together by more than transactional benefit. it is our collective history,. we are and always will be one family, one united kingdom. madame deputy speaker, whilst today's budget delivers historically high levels of public spending, its success will be measured not by the billions we spend, but by the outcomes we achieve and the difference we make to people's lives. the budgets are set, the plans are in place, the task is clear. now we must deliver, because this is not the government's money, it is taxpayers' money. madame
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deputy speaker, our stronger economy allows us to find world—class public services, the people's priority. but over the long term the only way to pay for higher spending is economic growth. if we want to see higher growth, we have got to tackle the problem that has been holding back this country for far too long, our uneven economic geography. as we come out of the worst economic shock we have ever seen, we have got a choice. to retrench or to invest. this government chooses to invest. to invest in our economic infrastructure, to invest in innovation, to invest in skills, to invest in a plan for growth that builds a stronger economy for the future. that is what this budget is about and that is what this government is about. madame deputy speaker, infrastructure connects our country, drives productivity and levels up. that is why our national
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infrastructure strategy invest in economic infrastructure like roads, railways, broadband and mobile, over £130 billion. to connect our towns and cities we are investing £21 billion on roads and 46 on railways. our integrated rail plan will be published soon, dramatically improving journey times between our towns and cities. today we are providing £5.7 billion for a london style transport settlements, in greater manchester, the liverpool city region, tees valley, south yorkshire, west yorkshire, the west midlands and the west of england. we are helping local transport everywhere with £2.6 million for a long—term pipeline of over 50 local roads upgrades, over £5 billion for local roads maintenance, enough to fill1 million more potholes a year. funding for buses, cycling and
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walking totals more than £5 million. the prime minister promised an infrastructure revolution, this budget delivers an infrastructure revolution. madame deputy speaker, investment in our infrastructure is just the first step. we need to do what the people of this country have always done, invent, discoverand create the ideas and technologies that will change the world. so we will also invest more in innovation. the uk is already a world leader with less than 1% of the well�*s population we have four of the world's top 20 universities, 14% of the world's most impactful research and the second most noble laureates. we want to go further. i can confirm we will maintain our target to increase r&d investment to £22 billion. but in order to get there and deliver on our other priorities we will meet the target in 26—27,
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spending by the end of this parliament £20 billion a year on r and d. that is a cash increase of 50%, the fastest increase ever. i can confirm to the house that this £20 billion is in addition to the cost of our r&d tax reliefs. combined with those tax reliefs, total public investment in r&d is increasing from 0.7% of gdp in 2018, to 1.1% of gdp by the end of the parliament. how does 1.1% compare internationally? well, the latest available data shows an oecd average ofjust 0.7%. germany investing .9%. france 1%, and the united states just 0.7%. this unprecedented funding will increase core science funding will increase core science funding to £5.9 billion a year by
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24-25, a funding to £5.9 billion a year by 24—25, a cash increase of 37%. it will meet the full cost of associating with horizon europe, establish the new advanced research and intervention agency with £800 million by 25—26, and strengthen our focus on late stage innovation, increasing innovate uk's annual core budget to £1 billion, double what it was at the start of this parliament. madame deputy speaker, there is more to becoming a science superpower than just what the government spends on r our ambitious net zero strategy is also an innovation strategy, investing £30 billion to create the new green industries of the future. we have just issued our second new green industries of the future. we havejust issued our second green bond, making us the third largest issuer of sovereign green bonds everywhere in the world. london last week was named the best place in the
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world for green finance. and on monday the new uk infrastructure bank announced its first ever investment, £107 million to support offshore wind in teesside. and to build on this work one week today i will be hosting globalfinance ministers and businesses at cop 26. madame deputy speaker, innovation comes from the imagination, drive and risk—taking of business. that is why we have launched help to grow started a new investment capital fund,it started a new investment capital fund, it is why i am announcing today that we will consult on further changes to the regulatory charge cap for pension schemes, unlocking institutional investment whilst protecting savers. we are introducing a new £1.4 billion global britain investment fund, supporting transformative economic supporting tra nsformative economic activity supporting transformative economic activity in our world leading sectors like life sciences. and it
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is why today's budget increases the british business bank's regional finance programmes to £1.6 billion, expanding their coverage and helping innovative businesses get actions to the finance they need across the whole united kingdom. madame deputy speaker, a third of our science noble laureates have been immigrants, half of our fastest growing companies have a foreign—born founder, so an economy built on innovation and must be open and attractive to the best and brightest minds. thanks to our brilliant home secretary, today's budget confirms the eligibility criteria for our new scale up visa, making it quicker and easierfor the fast businesses to bring in highly skilled individuals. and the trade secretary's new global talent network, launching initially in the bay area of boston and bangalore, will identify, attract and relocate the best global talent in science
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and tech sectors, all part of our plan to make our visa system for international talent the most competitive in the world. madame deputy speaker, if we want greater private sector innovation, we need to make our research and development tax reliefs fit for purpose. the latest figures show the uk has the second—highest spending on r&d tax reliefs in the oecd, yet it is not working as well it should. uk business investment in r&d is less than half the oecd average. we have reviewed the reliefs and identify two issues we are solving today. first, the reliefs need to reflect how businesses conduct research in the modern world, so as many companies have called for, i am expanding the scope of the reliefs to include cloud computing and data costs. the second problem is this,
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companies claimed uk tax relief on £48 billion of r&d spending, yet uk business investment was around half of that at just £26 business investment was around half of that atjust £26 billion. we are subsidising billions of pounds of r&d that is not even happening here in the united kingdom. that is unfair on british taxpayers and it puts us out of step with places like australia, canada, hong kong, singapore, switzerland and the usa, who have all focused their r&d tax reliefs on domestic activity. from april 2023, we are going to do the same and incentivise greater investment here at home. so, madame deputy speaker, £22 billion investment in r&d, the net zero strategy, the future fun, help to grow, more regionalfinance, grow, more regional finance, unlocking grow, more regionalfinance, unlocking institutional capital, a more competitive visa system and
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modernise r&d tax credits regime, enough action to prove the hypothesis that we are making this country a science and technology superpower. madam deputy speaker, as well as investing in infrastructure and innovation, there is one further part of our plan for growth that is crucial. it provides a world—class education to all our people. higher skills need ? lead hire regional productivity and higher productivity leads to higher wages. with 80% of the uk's 2030 workforce already in work, ourfuture the uk's 2030 workforce already in work, our future success depends not just on the schooling we give our children, but the lifelong learning we offer to adults. we have already done a lot will stop our plan for jobs invested in apprenticeships, traineeships and the kick—start scheme, but we need to go further. today's budget invests in the most
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wide—ranging skills agenda in this country has seen in decades. we are increasing skills spending over the parliament by £3.8 billion, an increase of 42%. we are expanding t—levels, building institutes of technology, rolling at the lifetime skills guarantee, upgrading our effie college estate, quadrupling the number of places on skills boot camps and significantly increasing funding for apprenticeships. we are also going to tackle a tragic fact. millions of adults in our country have numeracy skills are lower than those expected of a nine—year—old. according to the leading charity national numeracy, this costs individuals with poor numeracy up to £1600 a year in lost earnings, people with poor numeracy skills are more than twice as likely to be unemployed as their peers. today i can announce a new uk wide numeracy
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programme, from a multiply, with £560 million it will improve basic maths skills and help to change people's lives across the whole united kingdom. madam deputy speaker, we are building our infrastructure with new roads, railways and broadband, cementing our status as a science and technology superpower, and strengthening the skills of our people. the country's greatest asset. that is a real plan for growth and that is how this government is building a stronger economy for the british people. madam deputy speaker, world—class public services are the people's priority. investment in infrastructure, innovation and skills will create the growth that we need to pay for them. but as conservatives we know that government action alone will not be enough to create a stronger economy.
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we want this country to be the most exciting and dynamic place in the world for business. and now that we have left the eu we have the freedom to do things differently... and deliver a simpler, fairer tax system. i want to begin with one of our smallest taxes, but a tax which plays an important role in one of our pre—eminent industries, shipping. now we have left the eu, today we start reforming our tonnage tax regime to make it simpler and more competitive. we are also making it fairerfor uk more competitive. we are also making it fairer for uk taxpayers. when we were in the old eu system shifts ships in the tonnage tax regime were required to fly the flag of an eu state, but that does not make sense for an independent nation, so i can announce today that our tonnage tax will for the first time ever reward companies for adopting the uk merchant shipping flag, the red
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ensign. that is entirely fitting for a country with such a proud maritime history as ours. madam deputy speaker, i am sure the opposition will be delighted that red flags are still flying somewhere in this country, even if they are all at sea. let me turn now... let me turn now to air passenger duty. right now people pay more for return flights with and between the four nations of the united kingdom than they do when flying home from abroad. we used to have a return leg exemption for domestic flights but were required to remove it in 2001. but today i can announce that flights between
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airports in england, scotland, wales and northern ireland will from april 2023 be subject to a new, lower rate of air passenger duty. this will help cut the cost of living with 9 million passengers seeing their duty cut by half. it will bring people together across the united kingdom and because they tend to have a greater proportion of domestic passengers, it is a boost to regional airports like aberdeen, belfast, inverness and southampton. airports are major regional employers, so to help them get through the winter i am also extending our support for english airports for a further six months. we are also making changes to reduce carbon emissions from aviation. most emissions come from international
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rather than domestic aviation, so we are introducing from april 2023 a knew ultra long haul band in air passenger duty, covering flights of over 5500 miles, with an economy rate of £91. less than 5% of passengers will pay more, but those who fly furthest will pay the most. madam deputy speaker, our approach to corporate taxation strikes a responsible balance between funding public services and encouraging the investment we need for a stronger economy. at the march budget, we took the difficult but necessary decision to increase the rate of corporation tax to 25% from 2023. still the lowest rate in the g7 and the fifth lowest rate in the g20. alongside, i introduced the new super deduction, the biggest business tax cut in modern british history, and extended to the end of
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this year the annual investment allowance at its highest level of £1 million. now is not the time to remove tax breaks on investment, so i can confirm today that £1 million annual investment allowance will not end in december as planned. it will be extended all the way to march 2023. i also said in march i would review the banks are charged within corporation tax to maintain the competitiveness of our financial services industry. we will retain a surcharge of 3%. the overall rate for corporation tax on banks will in 2023 increase from 27% to 28%, and will remain higher than the rate paid by other companies. small challenger banks are improving bank a competition which is good for the sector and good for consumers, to help —— so to help them i will also raise the annual allowance to £100
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million. madam deputy speaker, our manifesto promised to review business rates. we are publishing our conclusions today, but before i set out our plans let me say this. we, on this side of the house, are clear that reckless, unfunded promises to abolish a tax which raises £25 billion every year are completely irresponsible. it would be wrong to find £25 billion a year in extra borrowing, cuts to public services or tax rises elsewhere, so we will retain business rates, but with key reforms to ease the burden and create stronger high streets. first, we will make the business rate system fairer and timelier, with more frequent re—evaluation every three years. the new revaluation cycle will be delivered from 2023. second, as called for by
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the federation of small business and the federation of small business and the british property federation, we are introducing a new investment relief to encourage businesses to adopt green technologies like solar panels. and i am announcing today we will accept the cbi panels. and i am announcing today we will accept the cb! and british retail consortium's recommendation to introduce a new business rates improvement relief. from 2023 every single business will be able to make property improvements, and for 12 months pay no extra business rates. that means a hotel adding extra rooms, a manufacturer expanding their factory, rooms, a manufacturer expanding theirfactory, and office adding new air conditioning, cctv or bike shelters will all pay no extra rates. together with the new green investment relief, we are introducing investment incentives totalling £759. this will make a difference —— £750 million. without this action millions of businesses
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would see their tax bills going up next year because of inflation. i want to help those businesses right now. so our third step is that next year's planned increase in the multiplier will be cancelled, a tax cut for businesses worth over the next five years £4.6 billion. and i have one final measure to help those businesses hardest hit by the pandemic. i am announcing today, for one year, a new 50% business rate discount for businesses in the retail, hospitality and leisure sectors. pubs, music venues, cinemas, restaurants, hotels, theatres and gems, any eligible business can claim a discount on their bills of 50% —— theatres and gyms. they can claim up to a maximum of £110,000, a business tax cut
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worth almost £1.7 billion. together with small business rate relief, this means over 90% of all retail, hospitality and leisure businesses will see a discount of at least 50%. apart from the covid relief, this is the biggest single year tax cut to business rates in over 30 years. madam deputy speaker, taken together, today's budget cuts business rates by £7 billion. madam deputy speaker, we are unleashing the dynamism and creativity of british businesses with a simpler, fairer and more competitive tax system. the biggest business tax cut in modern british history, the biggest single year tax cut to business rates for 30 years, and million pound investment allowance, tonnage tax reform, air passenger duty cut. that is the way to back business and build a stronger economy. madam deputy speaker, let me turn now to alcohol duties.
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first introduced in 1643 to help pay for the civil war, our alcohol duty system is outdated, complex and full of historical anomalies. the institute for fiscal studies have called it, in their words, and s. the institute of economic affairs said it defies common sense —— in their words, a mess. the world health organization have warned that countries like the uk which follow the eu rules which are "unable to implement tax system is optimal from the perspective of public health", soul, madam deputy speaker, today we are taking advantage of leaving the eu to announce the most radical simplification of alcohol duties for over 140 years. we are taking five
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steps today to create a system that is simpler, fairer and healthier. first, to radically simplify the system we are slashing the number of named duty rates from 15 to just six. our new system will be designed around a common sense principle. the stronger the drink, the higher the rate. this means some drinks like stronger red wines, fortified wines or high strength white ciders will see a small increase in their rates, because they are currently under taxed given their strength. that is the right thing to do, and it will help end the era of cheap high—strength drinks which can harm public health and enable problem drinking. and because this is a more rational system, the converse is also true. many lower alcohol drinks are currently overtaxed and have been for many decades. rose, fruit
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ciders, liqueurs, lowerstrength beers and wines, today's changes means they will pay less. the second step i am taking today will encourage small, innovative craft producers. i am announcing proposals for a new small producer relief. this will extend the principle of small brewers' relief to include, for the first time ever, small cider makers and other producers making alcoholic drinks of less than 8.5%. third, i am going to modernise the system to reflect the way people drink today. over the last decade, consumption of sparkling wines, like chris eckel, has doubled. english sparkling wine has increased almost tenfold —— like prosecco. it is clear they are no longer the preserve of wealthy elites, and they
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are no stronger than steel wines, so i will end the irrational duty premium of 28% that they currently pgy- premium of 28% that they currently pay. sparkling wines, wherever they are produced, will now pay the same duty as still wines of equivalent strength. and because growing conditions in the uk typically favour lower strength and sparkling wines, this means english and welsh wines, this means english and welsh wines, compared with stronger imported wines, will now pay less. sales of fruit cider have increased from one in 1000 ciders sold in 2005, to in four today. but they can pay two or three times as much duty as a cider that is made with apples or pears. so we are cutting the duty on them as well. the fourth step i am taking today will directly support the home of british community life for centuries. our
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pubs. even before the pandemic, pubs were struggling. between 2020 —— 2020 19 were struggling. between 2020 —— 202019 consumption fell, and many public health bodies recognised pubs are often safer drinking environments and being at home. so, as the members for dudley south and north west durham will agree, a fairer, healthier system supports pubs. i can announce today draft relief. draft relief will apply a new lower rate of duty on draught beer and cider. it will apply to drinks served from draft containers over 40 litres and will particularly benefit community pubs who do 75% of their trade on draft. let me tell their trade on draft. let me tell the house the new rate. draft relief will cut duty by 5%. that is the
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biggest cut to cider duty since 1923. the biggest cut to fruit ciders in a generation, the biggest cut to beer duty for 50 years. this is not temporary. it is a long—term investment in british pubs of £100 million a year. and a permanent cut in the cost of a pint of threepence. i cannot wait, madam deputy speaker, for the opposition accuse me tomorrow of beer barrel politics. madam deputy speaker, these much—needed reforms will come into effect in february 2023, but i want to help the hospitality industry right now. so, for my final announcement on alcohol duties today, i can confirm that the planned increase in duty on spirits like scotch whisky, wine, cider and
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beer will all, from midnight tonight, he beer will all, from midnight tonight, be cancelled. that's a tax cut worth £3 billion. madam deputy speaker, our reforms make the alcohol duties system simpler, fairer and healthier. they help with the cost of living while tackling problem drinking, they support innovative entrepreneurs and craft producers, they back pubs and public health, and they are only possible because we have left the european union. shouting can someone get me some water? madam deputy speaker, world—class public services, investment in infrastructure, innovation and
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skills, simpler, fairer taxes to support businesses and consumers, all built on the foundation of a stronger economy and responsible public finances. that is our vision for the future and that is what this budget delivers. and this budget also supports working families. madam deputy speaker, with fuel prices at the highest level in eight years, i'm not prepared to add to the squeeze on families and small businesses. so i can confirm today the planned rise in fuel duty will be cancelled. that is a saving over the next five years of almost £8 billion. compared to pre—2010 plans, today's fees means the average tank of fuel will cost around £15 less per car, £30 less for vans, £130 less for hgvs. after 12 consecutive years of frozen rates, the average car driver will now save a total of
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£1900. madam deputy speaker, i can also announce today that public sector workers will see fair and affordable pay rises across the whole spending review period. as we return to the normal, independent pay setting process. and i can take action to help the lowest paid as it was a conservative government that introduced the national living wage in 2016. a conservative government that, according to statistics published just yesterday, has overseen the proportion of people in low paid work falling to its lowest level since 1997. and it is a conservative government that is increasing the wage floor again today. the independent low pay commission brings together
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economists, business groups and trade unions. the government is accepting their recommendation to increase the national living wage next year by 6.6% to £9.50 an hour. for a full—time worker that is a pay rise worth over £1000. it will benefit over 2 million of the lowest paid workers in the country. it is broadly consistent with previous increases and keeps us on track for our target of two thirds of median earnings by 2024. and it is a major commitment to the high wage, high skill, high productivity economy of the future. madame deputy speaker, as we build this a stronger economy, we are doing so at the end of an extraordinary 18 months. covid was notjust extraordinary 18 months. covid was not just a extraordinary 18 months. covid was notjust a public health challenge, it was notjust
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notjust a public health challenge, it was not just an notjust a public health challenge, it was notjust an economic challenge, it was a moral challenge as well. we had to show that we could pull together as a country and we did. we had to put aside questions of ideology and orthodoxy to do whatever it took to care for our people and each other, and we did. there is a different kind of moral dimension to the economic challenge we face now. last year, the state grew to be over half the size of the total economy. taxes are rising to their highest level as a percentage of gdp since the 1950s. i don't like it, but i cannot apologise for it. it is the result of the unprecedented crisis we faced in the extraordinary action we took in the extraordinary action we took in response. but now we have a choice. do we want to live in a country where the response to every
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question is what is the government going to do about it? where every time prices rise, every time a company gets in trouble, every time some new challenge emerges the answer is always at the taxpayer must pay? or do we choose to recognise that government has limits? governments should have limits. if this seems a controversial statement to make, then i am all the more glad for saying it because that means it needed saying and it is what we believe. there is a reason we talk about the importance of family, community and personal responsibility, not because these are an alternative to the market or the state, it is because they are more important than the market or the state. the moments that make life worth living are not created by
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government, are not announced by government, are not announced by government, are not granted by government. they come from us as people. our choices, our sacrifices, our efforts, and we believe people should keep more of the rewards of those efforts. yes, we have taken some corrective action to fund the nhs and get our debt under control. but as we look towards the future i want to say this simple thing to the house and the british people. my goal is to reduce taxes. by the end of this parliament i want taxes to be going down, not up. i want this to be a society that rewards energy, ingenuity and inventiveness, a society that rewards work. that is what we believe on this side of the house. that is my mission over the
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remainder of this parliament. and the final announcement entered a's budget takes a first step. madame deputy speaker, for many of the lowest paid in society there is a hidden tax on work. the universal credit taper withdraw support as people work more hours. the rate is currently 63%, so for every £1 someone earns their universal credit is reduced by 63 p. let us be in no doubt, this is a tax on work and a high rate of tax at that. organisations as varied as the trades union congress, thejoseph rowntree foundation, the resolution foundation, the centre for policy studies and the centre for social justice have all said it is too high. soto make sure work pays and
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helps some of the lowest income families in our country keep more of their hard earned money, i have decided to cut this rate not by 1%, not by 2%, but by 8%. cheering this... this... this is a tax on working people and we are cutting it from 63 to 55%. the rate originally envisaged by my right honourable friend the member for chingford, and because i am increasing the work allowances by £500, this is a tax cut next year worth over £2 billion. nearly 2 million families will keep on
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average an extra thousand pounds a year. changes like this normally take effect at the start of the new tax year in april, but we want to help people right now, so we will introduce this within weeks and no later than december the 1st. let me tell the house what these changes mean. a single mother of two, renting and working full—time on the national living wage will be better off by around £1200. a couple renting a home with a two children, one working full time, the other part time, will be better off every single year by £1800. this is a £2 billion tax cut for the lowest paid workers in our country, it supports working families, it helps with the cost of living and it rewards work. so, madam deputy speaker, fuel duty,
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cut, air passenger duty, cut, alcohol duty, cut, the biggest cut to business race in 30 years. growth up, jobs up, wages up, public finances back in a better place, more investment in infrastructure, innovation and skills. a pay rise for over 2 million people and a £2 billion tax cut for the lowest paid. this budget helps with the cost of living, this budget level up to a higher wage, living, this budget level up to a higherwage, high living, this budget level up to a higher wage, high school, living, this budget level up to a higherwage, high school, higher productivity economy. this budget bill is a stronger economy for the british people and i commend it to the house. studio: there is the applause from the conservative benches for rishi sunak who has been speaking forjust over an hour. the rabbit out of the hat is always comes at the end, or pretty well always, and it was more
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generous than was expected. we had thought there would be some change in terms of universal credit. many tory mps criticised the move to take away the £20 a week increase for universal credit claimants. this is actually dealing with the taper rate. what it will mean, says rishi sunak, is more families on the lowest incomes but working will be able to keep more of their earnings because they are going to reduce the tax rate from 63% to 55%. he said it is a tax cut worth £2 billion and those families will be better off to the tune of £1000 a year. we will talk about that in more detail, but you could see therese coffey, the work and pensions secretary, looking delighted, and a former work and pensions secretary, iain duncan smith, also looking very pleased. he
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amongst others had actually tried to campaign for amongst others had actually tried to campaignfor it amongst others had actually tried to campaign for it to be removed, or kept i should say, altogether. let's have a look at some of the other headlines. if we wind back to the beginning of the budget, rishi sunak set everything into context in terms of the economic background coming out of the covid pandemic. he talked about the independent office for budget responsibility expecting inflation to hit 4%. it is about 3.1% now. we had been told by the prime minister in the past that it would be temporary. today rishi sunak said it would average out for 4% for the whole of next year. growth expectation is revised up from 4% up to 6.5%. every government department, rememberwe from 4% up to 6.5%. every government department, remember we were talking about the spending review, to get real terms rise in spending each year. £11.5 billion for up to 180,000 new affordable homes. again
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another controversial issue, foreign aid spending to return to 0.7% of gdp before the end of parliament. funnily enough, that was raised by ed miliband, who was actually facing borisjohnson ed miliband, who was actually facing boris johnson across ed miliband, who was actually facing borisjohnson across the dispatch box instead of keir starmer. we will come back to all of these things, i hope. we will speak to the chief secretary of the treasury, simon clark. we have to go back into the house just now because rachel reeves, the shadow chancellor, is giving her response.— giving her response. thank you, madam deputy _ giving her response. thank you, madam deputy speaker. - giving her response. thank you, i madam deputy speaker. families struggling with the cost of living crisis, businesses hit by a supply chain crisis, those who rely on our schools and hospitals and police. they will not recognise the world the chancellor is describing. they will think that he is living in a parallel universe. the chancellor in this budget has decided to cut taxes
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for banks. so, madam deputy speaker, at least the bankers on short—haul flights sipping champagne will be chairing this budget today. and the arrogance, after taking £6 billion out of the pockets of some of the poorest people in this country, expecting them to cheer today the £2 billion given to compensate. in the long story of this parliament never has a chancellor asked the british people to pay so much for so little. time and again today the chancellor compared the investments he is making to the last decade. but who was in charge? in this last decade? they were. so, let'sjust was in charge? in this last decade? they were. so, let's just reflect on the choices the chancellor has made today. the highest sustained tax
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burden in peacetime, and who is going to pay for it? it is not international giants like amazon. no, the chancellor has found a tax deduction for them. it is not property speculators. they have already pocketed a stamp duty cut. it is clearly not the banks, even though bankers' bonuses are set to reach a record high this year. instead the chancellor is loading the burden on working people. a national insurance tax rise on working people. a council tax hike on working people. and no support today for working people with vat on their gas and electricity bills. what are working people getting in return? a record nhs waiting list with no plan to clear it. no way to see a gp and still having to sell
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catch up on learning stolen by the virus. £2 billion announced today, a pale imitation of the £15 billion catch up a fund that the prime minister was my own educations are said was needed. no wonder that he resigned. the chancellor talks about world—class public services. tell that to a pensioner waiting for a hip operation. tell that to a young woman waiting to go to court to get justice. tell that to a mum and dad waiting for their child to get the mental health support that they need. and the chancellor says today that he has realised what a
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difference in early years spending means. i would just say to the chancellor, has he ever heard of the sure start programme that this tory government has cut? and why are we in this position? why are british business being stifled by debt? while amazon gets tax deductions? why are working people being asked to pay more tax and put up with worse services. why is billions of pounds in tax payers�* money being funnelled to friends and donors of the conservative party, while millions of families are having £20 a week taken off them? madam deputy speaker, why can�*t britain do better than this? the government will always blame others. it is business�*s vault, the eu's others. it is business�*s vault, the
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eu�*s fault, the public�*s vault. global problems. the same old excuses. but the blunt reality is this —— the public�*s fault. working people are being asked to pay more for less, for three simple reasons. economic mismanagement, and unfair tax system, and wasteful spending. each of these problems is down to 11 years of conservative failure, and they shake their heads, but the cuts to our public services have cut them to our public services have cut them to the bone. and while the chancellor and prime minister like to pretend they are different, this budget today will only make things worse. the solution starts with growth. the government is caught in a bind of its own making, because low growth inexorably leads to less money to our public services and less taxes rise, and under the conservatives britain has become a low growth economy. let�*s look at the last decade. the tories have
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grown the economy atjust1.8% a year. if we had grown at the same rate of other advanced economies, we could have had an additional £30 billion to invest in public services without raising the taxes that the tories are raising on working people today. and let�*s compare growth under the last 11 years of conservative government to the last labour government. even taking into account the global financial crisis, labour grew the economy much faster, by 25% labour grew the economy much faster, by 2.3% per year. if the tories matched that record we would have £30 billion more a year to spend on public services. it could not be clearer. the conservatives are now the party of high taxation because the conservatives are the party of low growth. and the office for budget responsibility confirmed this today, that we will be back to... they might not like this, but the office
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for budget responsibility said that by the end of this parliament the uk economy will be growing byjust 1.3%. that is hardly the plan for growth that the chancellor boasted about today, hardly if the endorsement of his announcements. under the tory decade, we have had low growth and their is not much growth to look forward to. now, the economy has been weakened by the pandemic, but also by the government�*s mishandling of it. responding to the virus has been a huge challenge. governments around the world have taken on more debt. but our situation is worse than in other countries. worse because our economy was already fragile going into the crisis, too much inequality, too much insecure work, too little resilience in our public services. and worse, because the prime minister dithered and delayed, against scientific advice, egged on by the chancellor, we ended up
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facing harsher and longer restrictions than other countries. so as well as having the highest death toll in europe, britain suffered...— death toll in europe, britain suffered... :, :, ~ suffered... order, order, order. we have to be — suffered... order, order, order. we have to be able _ suffered... order, order, order. we have to be able to _ suffered... order, order, order. we have to be able to hear— suffered... order, order, order. we have to be able to hear the - have to be able to hear the honourable _ have to be able to hear the honourable lady. _ have to be able to hear the honourable lady. now, - have to be able to hear the i honourable lady. now, rachel have to be able to hear the _ honourable lady. now, rachel reeves. so as well— honourable lady. now, rachel reeves. so as well as _ honourable lady. now, rachel reeves. so as well as having _ honourable lady. now, rachel reeves. so as well as having the _ honourable lady. now, rachel reeves. so as well as having the highest - so as well as having the highest death toll in europe, britain has suffered the worst economic hit of any major economy. now, the chancellor now boasts that we are growing faster than others. but that�*s because we fell the furthest. and whilst the us and others have already seen their economy bounce back to levels seen before the pandemic, the uk hasn�*t. our economy is set to be permanently weaker. on top of all that, the government is
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now lurching from crisis to crisis. people avoiding journeys because they can�*t fill up their petrol tank is not good for the economy. people spending less because the cost of the weekly shop has exploded is not good for the economy. and british exporters facing more barriers than their european competitors because of the deal that this government did is not good for our economy. if this were a plan, it would be economic sabotage. and when the prime minister isn�*t blagging this chaos is part of his cunning plan, he says he�*s not worried about inflation. well, tell that to families struggling with rising gas and electricity bills, with rising prices of petrol at the pump and rising food prices. he is out of touch, he is out of ideas and he has left working people out of pocket. madam deputy speaker, conservative mismanagement has made the fiscal
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situation tight, and when times are tight it�*s even more important to ensure that taxes are fair, that taxpayers get value for money, but this government fails on both fronts. we have a grossly unfair tax system with the burden being heaped on working people. successive budgets now have raised council tax, raised income tax and now they have raised income tax and now they have raised national insurance too. but taxes on those with the broadest shoulders, those who earn their income from stocks and shares and dividends and property portfolios, they have been left barely touched. businesses based on the high streets are the lifeblood of our communities and often the first venture for entrepreneurs, but despite what the chancellor has said today, businesses will still be held back by punitive and unfair business rates. the government has failed to tax online giants and watered—down global efforts to create a level
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playing field. and just when we needed every penny of public money to make the difference, we have a government that is a byword for waste, cronyism and vanity projects. we have had £37 billion for a test and trace system that the spending watchdog says treats taxpayers liken atm cash machine. i got four ministers, fancy paintjob for the prime minister�*s plane and a tv studio for conservative party broadcasts which seems to have morphed into the world�*s most expensive home cinema. £3.5 billion of government contracts awarded to friends and donors of the conservative party, £190 million loans to a company that employs the prime minister�*s former chief of staff, £39 to the health secretary�*s former pub landlord, and every single one of those cheques signed
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by the chancellor —— £30 million to the health secretary�*s for a pub landlord. now she comes to ordinary working people and ask them to pay more, more than they have ever been asked to pay before. at the same time, to put up with the worst public services, all because of his economic mismanagement, his unfair tax system and his wasteful spending. now, of course there are some welcome measures in this budget today. as there are in any budget. labour welcomes the increase in the national minimum wage, but the government needs to go further and faster. if they had backed labour�*s position of an immediate rise to at least £10 an hour then a full—time worker on the national minimum wage would be in line for an extra £1000 a year. ending the punitive public sector pay freeze is welcome, but we know how much this chancellor likes his smoke and mirrors, so we will be checking the books to make sure the
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money is there for a real terms pay rise. labouralso money is there for a real terms pay rise. labour also welcomes the government�*s decision to reduce the universal credit rate, as we have consistently called for, but the system has got so out of whack that even after this reduction working people on universal credit still face a higher marginal tax rate than the prime minister. and those unable to work through no fault of their own still face losing over £1000 a year. and forfamilies own still face losing over £1000 a year. and for families who go out to work every day but down to get government benefits on an average wage, who have to fill up their car with petrol to get to work on who do that weekly shop and who see their gas and electricity prices go up, this budget today does absolutely nothing for them. we have a cost of living crisis. the government has no coherent plan to help families cope with rising energy prices. and whilst we welcome
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the action taken today on universal credit, millions will still struggle to pay the bills this winter. the government has done nothing to help people with their gas and electricity bills but that cut in vat receipts that labour has called for, cut that is possible because we are outside the european union and could be funded by the extra vat receipts experienced in the last few months. working people are left out in the cold while the government hammered them with tax rises. national insurance is a regressive tax on working people. it is a tax onjobs. underthe tax on working people. it is a tax on jobs. under the chancellor�*s plans, landlord renting out dozens of properties without pay a penny more in tax, but their tenants in work will face tax rises of hundreds of pounds a year. and he is failing to tackle another huge issue of the day. adapting to climate change.
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adapting to climate change presents opportunities, morejobs, lower opportunities, more jobs, lower bills opportunities, morejobs, lower bills and cleaner air. but only if we act now and if we act at scale. according to the office for budget responsibility, failure to act will mean public sector debt explodes later to nearly 300% of gdp. the only way to be a prudent and responsible chancellor is to be a green chancellor. to invest in the transition to a zero carbon economy and give british business as a head start in the industries of the future. but with no mention of climate in his conference speech and the most passing of references today, we are burdened with a chancellor unwilling to meet the scale of the challenges we face. homeowners are left to face the cost of insulation on their own. industries like steel and hydrogen are in a global race but without the support that they need. and the chancellor today has promoted domestic flights over high—speed
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rail in the week before cop26, and it is because of this chancellor that in this very week that we try to persuade other countries to reduce their emissions, this government can�*t even confirm that it will meet its 2035 climate reduction target. madam deputy speaker, everywhere working people look at the moment they see prices going up and they see shortages on the shelves. but this budget did nothing to address their fears. household budgets are being stretched thinner than ever, but this budget did nothing to deal with the spiralling cost of living. it is a shocking missed opportunity by a government that is completely out of touch. there is an alternative. rather than just tweak the system, labour would strap business rates and replace it with something much better, by ensuring online giants pay their fair better, by ensuring online giants pay theirfair share. that better, by ensuring online giants pay their fair share. that is what
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it would look like the stop we wouldn�*t put up national insurance for living people, we would ensure the broadest shoulders pay their fair share. that is what being on the side of working people looks like. we would end the £1.7 billion subsidy the government gives to private schools and put it straight into our local state schools. that is what being on the side of working families looks like. and we would deliver a climate investment pledge. £28 billion, every year, for the rest of this decade. that is giga factories to build factories for electric vehicles, that is a thriving hydrogen industry creating jobs in all parts of our country, and retrofitting so that we keep homes warm and get our energy bills down. that is what real action on climate change looks like. this country deserves better, but they will never get it under this chancellor. who gives with one hand but it takes so much more with the
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other. the truth is this. what you get with these two is a classic con game. it�*s like one of those pickpocketing operations you see in crowded places. the prime minister is the front man, distracting people with his wild promises. all the while, the chancellor dips his hand in their pockets. it all seems like fun and games, untilyou pockets. it all seems like fun and games, until you walk away and find your purse has been lifted. but people are getting more wise to them. every month, they feel the pinch, they are tired of the smoke and mirrors, tired of the bluster, of the false dawns, the promises for tomorrow. labourwould of the false dawns, the promises for tomorrow. labour would put working people first, would use the power of government and the skill of business to ensure that the next generation of qualityjobs are created right here in britain. we would tax fairly, spend wisely and after a
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decade of faltering growth we would get britain�*s economy firing on all cylinders. that is what a labour budget would have done today. well. budget would have done today. well, rachel reeves, _ budget would have done today. well, rachel reeves, the _ budget would have done today. well, rachel reeves, the shadow chancellor, of course it wasn�*t supposed to be her standing there giving the response to the government, to rishi sunak, but of course keir starmer can�*t be there because he is isolating. a very robust, strong and forceful response from rachel reeves, accusing both the prime minister and the chancellor there at the end of being con artists when it comes to spending taxpayers�* money. we are going to be speaking to the chief secretary to the treasury very shortly. let�*sjust secretary to the treasury very shortly. let�*s just get reaction from our team of experts here industrial. firstly, to rishi sunak. we also have luckily, the read books here with all the contents of the autumn budget and the office for budget responsibility plasma economic fiscal outlook. aren�*t we lucky
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everybody has been ploughing through them? firstly, your response to rishi sunak. a big, heavy speech. there was somebody describe it to me as something there was that bigger than expected tweak to universal credit which the chancellor says 2 million families will benefit from. the response to concerns about the cost of living crisis. right at the very beginning of his speech he highlighted something that is extremely important which will colour the political atmosphere, that projection that inflation will hit 4%. that will be a challenge for the government and for everyone, but he is benefiting from the fact that it seems as if the pandemic did less
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permanent damage to the economy than we thought. but there is an awful lot of expensive stuff he has promised to do and a bit of hope that the numbers in the better projections are right. in that the numbers in the better projections are right.— that the numbers in the better projections are right. in terms of the numbers. — projections are right. in terms of the numbers, because _ projections are right. in terms of the numbers, because as- projections are right. in terms of the numbers, because as laura i projections are right. in terms of i the numbers, because as laura has been saying, there was a lot of money for lots of things, some of it quite small, admittedly, and part of the budget was fragmented in terms of what he is actually giving to certain departments, for example, but overall do the numbers stack up as far as you are concerned?- as far as you are concerned? there are a lot of — as far as you are concerned? there are a lot of moving _ as far as you are concerned? there are a lot of moving parts _ as far as you are concerned? there are a lot of moving parts in - as far as you are concerned? there are a lot of moving parts in the - are a lot of moving parts in the book— are a lot of moving parts in the book of— are a lot of moving parts in the book of facts to give you an overall picture _ book of facts to give you an overall picture. borrowing in the final year 24—25. _ picture. borrowing in the final year 24-25. is _ picture. borrowing in the final year 24—25, is lower than it was planned to be _ 24—25, is lower than it was planned to be pre—pandemic, so it shows the shock— to be pre—pandemic, so it shows the shock factor — to be pre—pandemic, so it shows the shock factor from the pandemic washes— shock factor from the pandemic washes out. that is not an accident. part of— washes out. that is not an accident. part of that— washes out. that is not an accident. part of that is—
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the tax on top of that, adding a significant _ the tax on top of that, adding a significant tax rise and as the budget rough numbers. you have lower— the budget rough numbers. you have lower borrowing, lower than we would have anticipated given the shop we have anticipated given the shop we have had, — have anticipated given the shop we have had, tax as a share of gdp going _ have had, tax as a share of gdp going up— have had, tax as a share of gdp going up considerably to decades old ties, and _ going up considerably to decades old ties, and spending as well. so higher— ties, and spending as well. so higher than the highs we saw in march, — higher than the highs we saw in march, going back to the clement attlee _ march, going back to the clement attlee government. that is why you heard _ attlee government. that is why you heard that _ attlee government. that is why you heard that interesting thing at the endm _ heard that interesting thing at the end... restating i am a thatcherite. but saying _ end... restating i am a thatcherite. but saying i— end... restating i am a thatcherite. but saying i don't like this, i will
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not apologise for this, really interesting signal that he wants to change _ interesting signal that he wants to change the picture over the next few years _ change the picture over the next few years as _ change the picture over the next few years as regards to this, because these _ years as regards to this, because these are — years as regards to this, because these are quite stark changes and some _ these are quite stark changes and some sense in which is the state going _ some sense in which is the state going to — some sense in which is the state going to end up permanently bigger as a result — going to end up permanently bigger as a result of the changes that have been _ as a result of the changes that have been made — as a result of the changes that have been made from the pandemic? and has the public— been made from the pandemic? and has the public appetite for intervention shifted _ shifted permanently? he says no, he says it is only temporary. he shifted permanently? he says no, he says it is only temporary.— says it is only temporary. he was obviously talking _ says it is only temporary. he was obviously talking to _ says it is only temporary. he was obviously talking to the - says it is only temporary. he was obviously talking to the tory - says it is only temporary. he was| obviously talking to the tory base and tory mps, promising people like steve baker that he will go back to some of the things they would see as a true conservative, free—market, small estate. on business, before the statement, before the budget, you were saying that business was feeling nervous, that they feel the government has not been particularly warm and friendly towards them. will that have change? thea;r
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warm and friendly towards them. will that have change?— that have change? they were not exectin: that have change? they were not expecting a _ that have change? they were not expecting a massive _ that have change? they were not expecting a massive overhaul - that have change? they were not expecting a massive overhaul in i expecting a massive overhaul in business — expecting a massive overhaul in business rates, _ expecting a massive overhaul in business rates, but _ expecting a massive overhaul in business rates, but the - expecting a massive overhaul in business rates, but the most i business rates, but the most eye-catching _ business rates, but the most eye—catching measure - business rates, but the most eye—catching measure was i business rates, but the most eye—catching measure was a | business rates, but the most - eye—catching measure was a reduction in the _ eye—catching measure was a reduction in the business — eye—catching measure was a reduction in the business rates _ eye—catching measure was a reduction in the business rates multiplier. - eye—catching measure was a reduction in the business rates multiplier. it - in the business rates multiplier. it is a complicated _ in the business rates multiplier. it is a complicated mechanism. - in the business rates multiplier. it is a complicated mechanism. it. in the business rates multiplier. it - is a complicated mechanism. it means ultimately— is a complicated mechanism. it means ultimately businesses _ is a complicated mechanism. it means ultimately businesses will _ is a complicated mechanism. it means ultimately businesses will pay - is a complicated mechanism. it means ultimately businesses will pay £1 - ultimately businesses will pay £1 billion— ultimately businesses will pay £1 billion less — ultimately businesses will pay £1 billion less over— ultimately businesses will pay £1 billion less over the _ ultimately businesses will pay £1 billion less over the next - ultimately businesses will pay £1 billion less over the next five - billion less over the next five years — billion less over the next five years in— billion less over the next five years in business— billion less over the next five years in business rates. - billion less over the next five years in business rates. it. billion less over the next five years in business rates. it is| billion less over the next five i years in business rates. it is not billion less over the next five - years in business rates. it is not a massive _ years in business rates. it is not a massive cut~ _ years in business rates. it is not a massive cut. another— years in business rates. it is not a massive cut. another 1.7- years in business rates. it is not a massive cut. another 1.7 billion . years in business rates. it is not al massive cut. another 1.7 billion cut by a 50% _ massive cut. another 1.7 billion cut by a 50% discount _ massive cut. another 1.7 billion cut by a 50% discount for _ massive cut. another 1.7 billion cut by a 50% discount for hospitality. by a 50% discount for hospitality for one — by a 50% discount for hospitality for one year _ by a 50% discount for hospitality for one year. that _ by a 50% discount for hospitality for one year. that will— by a 50% discount for hospitality for one year. that will be - for one year. that will be celebrated. _ for one year. that will be celebrated. they - for one year. that will be celebrated. they will- for one year. that will be celebrated. they will be i for one year. that will be - celebrated. they will be toasting in the pubs _ celebrated. they will be toasting in the pubs of— celebrated. they will be toasting in the pubs of the _ celebrated. they will be toasting in the pubs of the uk _ celebrated. they will be toasting in the pubs of the uk because - celebrated. they will be toasting in the pubs of the uk because they. celebrated. they will be toasting in l the pubs of the uk because they have also been _ the pubs of the uk because they have also been given— the pubs of the uk because they have also been given a _ the pubs of the uk because they have also been given a break— the pubs of the uk because they have also been given a break on _ the pubs of the uk because they have also been given a break on draught. also been given a break on draught beer duty. — also been given a break on draught beer duty. so — also been given a break on draught beer duty, so drinking _ also been given a break on draught beer duty, so drinking on - also been given a break on draught beer duty, so drinking on the - beer duty, so drinking on the premises _ beer duty, so drinking on the premises. that _ beer duty, so drinking on the premises. that will— beer duty, so drinking on the premises. that will be - beer duty, so drinking on the premises. that will be very. beer duty, so drinking on the - premises. that will be very helpful. also alcohol — premises. that will be very helpful. also alcohol will _ premises. that will be very helpful. also alcohol will be _ premises. that will be very helpful. also alcohol will be reformed - premises. that will be very helpful. also alcohol will be reformed so . premises. that will be very helpful. i also alcohol will be reformed so you will tax _ also alcohol will be reformed so you will tax the — also alcohol will be reformed so you will tax the alcohol— also alcohol will be reformed so you will tax the alcohol rather— also alcohol will be reformed so you will tax the alcohol rather than - also alcohol will be reformed so you will tax the alcohol rather than the l will tax the alcohol rather than the product _ will tax the alcohol rather than the product that _ will tax the alcohol rather than the product. that will— will tax the alcohol rather than the product. that will help _ will tax the alcohol rather than the product. that will help beer. - will tax the alcohol rather than the product. that will help beer. and i product. that will help beer. and some _ product. that will help beer. and some english— product. that will help beer. and some english wines. _ product. that will help beer. and some english wines. they - product. that will help beer. and some english wines. they got. product. that will help beer. and some english wines. they got rid product. that will help beer. and . some english wines. they got rid of the supertax — some english wines. they got rid of the supertax on _ some english wines. they got rid of the supertax on sparkling _ some english wines. they got rid of the supertax on sparkling wine, - some english wines. they got rid of the supertax on sparkling wine, a i the supertax on sparkling wine, a champagne — the supertax on sparkling wine, a champagne duty. _ the supertax on sparkling wine, a champagne duty, you _ the supertax on sparkling wine, a champagne duty, you might - the supertax on sparkling wine, a champagne duty, you might say. | the supertax on sparkling wine, a - champagne duty, you might say. this will help— champagne duty, you might say. this will help the — champagne duty, you might say. this will help the hospitality _ champagne duty, you might say. this will help the hospitality sector. - will help the hospitality sector. one disappointment— will help the hospitality sector. one disappointment is- will help the hospitality sector. one disappointment is the - will help the hospitality sector. i one disappointment is the target will help the hospitality sector. - one disappointment is the target of £22 billion— one disappointment is the target of £22 billion on—
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one disappointment is the target of £22 billion on research— one disappointment is the target of £22 billion on research and - £22 billion on research and development _ £22 billion on research and development has - £22 billion on research and development has been - £22 billion on research and - development has been pushed back £22 billion on research and _ development has been pushed back two years and _ development has been pushed back two years and that _ development has been pushed back two years and that is — development has been pushed back two years and that is what _ development has been pushed back two years and that is what businesses - years and that is what businesses were _ years and that is what businesses were fearing _ years and that is what businesses were fearing-— were fearing. let's welcome the chief secretary _ were fearing. let's welcome the chief secretary to _ were fearing. let's welcome the chief secretary to the _ were fearing. let's welcome the chief secretary to the treasury, | chief secretary to the treasury, simon clark. hello. thank you for joining us. let�*s talk about inflation because as we were just discussing that was certainly how rishi sunak opened to some extent his budget statement today. but if you remember, the prime minister said at party conference that rises in inflation would be temporary. the chancellorjust in inflation would be temporary. the chancellor just told us that inflation is set to average 4% over the next year. we are in for the long haul, aren�*t we? the the next year. we are in for the long haul, aren't we? the inflation situation is — long haul, aren't we? the inflation situation is something _ long haul, aren't we? the inflation situation is something we - long haul, aren't we? the inflation situation is something we monitor| situation is something we monitor extremely closely in conjunction with the bank of england. it is expected to peak early next year and decline. the government is doing its bit to make sure that we address all of those pressures. we have a series of those pressures. we have a series of things to help with the cost of living announced today i like the freeze to fuel an alcohol duty. and
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the wider changes we have introduced like the house will support fund, which is designed to help the most vulnerable families. but which is designed to help the most vulnerable families.— vulnerable families. but it is not temporary. _ vulnerable families. but it is not temporary. that _ vulnerable families. but it is not temporary, that is _ vulnerable families. but it is not temporary, that is the _ vulnerable families. but it is not temporary, that is the point. - vulnerable families. but it is not temporary, that is the point. i i vulnerable families. but it is not. temporary, that is the point. i take everything you are saying, but it is not temporary. the prime minister was wrong to say it was temporary because temporary implied it could because temporary implied it could be just christmas and early in the new year and that is not going to happen, is it? it is new year and that is not going to happen. is it?— happen, is it? it is washing out throuuh happen, is it? it is washing out through the — happen, is it? it is washing out through the system. _ happen, is it? it is washing out through the system. 12 - happen, is it? it is washing out| through the system. 12 months. happen, is it? it is washing out - through the system. 12 months. we have to recognise that there are real pressures in the global supply chains which are making this problem worse. as we take action to address those, and we heard a series of measures around hgvs in the budget speech, these are things which are designed to make sure that we can ease those inflationary pressures and get back to normal. the bank of england has a strong mandate in this regard, which was reaffirmed today. it was. but at the same time rishi sunak blamed global issues, global
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supply issues. he may have written as he normally does to the bank of england, but what are you expecting them to do about it?— them to do about it? clearly, some of these issues _ them to do about it? clearly, some of these issues are _ them to do about it? clearly, some of these issues are global. - them to do about it? clearly, some of these issues are global. he - them to do about it? clearly, some of these issues are global. he said| of these issues are global. he said the were of these issues are global. he said they were the _ of these issues are global. he said they were the main _ of these issues are global. he said they were the main issues - of these issues are global. he said they were the main issues driving | they were the main issues driving it. b5 they were the main issues driving it. ~ , they were the main issues driving it. : , :, they were the main issues driving it. as the global economy is waking back u- it. as the global economy is waking back up and — it. as the global economy is waking back up and demand _ it. as the global economy is waking back up and demand is _ it. as the global economy is waking back up and demand is robust, - it. as the global economy is waking back up and demand is robust, that is having inflationary pressures. we need to do our bit to control those aspects which cut through the uk. we know there is a european wide shortage of hgv drivers which partly reflects covid and the demographic of the workforce. we can make sure that we make changes around vehicle testing and training and boot camps, to get as many drivers as possible in place and get the flow of commerce going as quickly as we can and tackle pressures that way. you are right, we do not control fully all of the impact of global inflation, but we do have some powerful levers. there is a lot in the budget to address the cost of living. the bank of england has its
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mandate reaffirmed and we are all conscious we want to see this come back to normal.— conscious we want to see this come back to normal. how do higher wages hel that? back to normal. how do higher wages help that? you _ back to normal. how do higher wages help that? you have _ back to normal. how do higher wages help that? you have announced - back to normal. how do higher wages help that? you have announced an . back to normal. how do higher wages i help that? you have announced an end to the freeze on public sector pay. the prime minister is encouraging people to ask their bosses for a pay rise in his high wage, highly skilled economy. that would take a number of years. if everyone follows the prime minister�*s advise high inflation is here to stay. taste the prime minister's advise high inflation is here to stay. we want to see sensible _ inflation is here to stay. we want to see sensible pay _ inflation is here to stay. we want to see sensible pay increases. i inflation is here to stay. we want. to see sensible pay increases. the public sector pay freeze, the product of the immediate challenge of the covid expenditure, which has cost us £400 million, that can come to an end in the normal pay review body process and we will be in conversation with those bodies through the course of the months ahead. when it comes to the national living wage i am really pleased we are continuing with our progress towards two thirds of median earnings by 2024, that is set independently by the low pay commission. theirjob is to consider
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the needs of workers and their wider responsibility to the economy in the round and they have to strike the right balance. taste round and they have to strike the right balance-— right balance. we endorse their findinus. right balance. we endorse their findings- in _ right balance. we endorse their findings. in the _ right balance. we endorse their findings. in the studio - right balance. we endorse their findings. in the studio we - right balance. we endorse their findings. in the studio we have | findings. in the studio we have laura kuenssberg, faisal islam and simonjack. laura kuenssberg, faisal islam and simon jack-— laura kuenssberg, faisal islam and simonjack. ~ . , ~ :, :, simon jack. wage rise. are you go to their bosses — simon jack. wage rise. are you go to their bosses and _ simon jack. wage rise. are you go to their bosses and ask _ simon jack. wage rise. are you go to their bosses and ask for _ simon jack. wage rise. are you go to their bosses and ask for a _ simon jack. wage rise. are you go to their bosses and ask for a 496 - simon jack. wage rise. are you go to their bosses and ask for a 4% pay - their bosses and ask for a 4% pay rise and _ their bosses and ask for a 4% pay rise and the — their bosses and ask for a 4% pay rise and the prime minister back then? _ rise and the prime minister back then? ~ : rise and the prime minister back then? ~ ., :, , ., then? we want to see a high skill, hiuh ware then? we want to see a high skill, high wage economy. _ the underlying growth which all but.
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people who are lower earners will get to keep more of they have worked very hard for. that is the right balance for the government to strike. we are focused on making sure the wider economy can grow quickly enough to make better pay affordable. that is the mantra we are going to be championing for the rest of parliament. is are going to be championing for the rest of parliament.— rest of parliament. is your general messa . e rest of parliament. is your general message that _ rest of parliament. is your general message that the _ rest of parliament. is your general message that the inflation - rest of parliament. is your general message that the inflation issue i rest of parliament. is your general message that the inflation issue isj message that the inflation issue is still transitory and if it is a problem _ still transitory and if it is a problem it is the bank of income's problem? — problem it is the bank of income's problem? we problem it is the bank of income's roblem? ~ :, :, , , problem? we do not believe this will worsen substantially _ problem? we do not believe this will worsen substantially and _ problem? we do not believe this will worsen substantially and persist - problem? we do not believe this will worsen substantially and persist at i worsen substantially and persist at those levels. we think it will peak in early 2022 and return to trend levels. but the bank of england has the prime policy levers to address that. but we are looking at the supply change and counterinflationary measures within our ability to do so.
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it is before a major climate conference _ it is before a major climate conference when _ it is before a major climate conference when the - it is before a major climate conference when the uk . it is before a major climate conference when the uk is| it is before a major climate - conference when the uk is trying to persuade _ conference when the uk is trying to persuade other— conference when the uk is trying to persuade other countries _ conference when the uk is trying to persuade other countries around . conference when the uk is trying to| persuade other countries around the world _ persuade other countries around the world to _ persuade other countries around the world to tackle — persuade other countries around the world to tackle climate _ persuade other countries around the world to tackle climate emissions. i world to tackle climate emissions. that is _ world to tackle climate emissions. that is completely _ world to tackle climate emissions. that is completely contradictory, i that is completely contradictory, isn't it? — that is completely contradictory, isn't it? ., , ., that is completely contradictory, isn't it? . , ., ., that is completely contradictory, isn't it? ., ., isn't it? the uk has a great record in terms of _ isn't it? the uk has a great record in terms of our _ isn't it? the uk has a great record in terms of our emissions - in terms of our emissions reductions. the prime minister and the chancellor are completely aware of that. we want to make sure that the cost of living is controlled and thatis the cost of living is controlled and that is why we have frozen fuel duty for the 12th year in a row and i cannot apologise for that. with air passenger duty we have cut it within the uk, which is a prounion measure... it the uk, which is a prounion measure...— the uk, which is a prounion measure... , , measure... it is nakedly political attem -t measure... it is nakedly political attempt to _ measure... it is nakedly political attempt to celebrate _ measure... it is nakedly political attempt to celebrate or - measure... it is nakedly political| attempt to celebrate or underline the union between the four countries in the uk, rather than something you are doing for good economic reasons? a union measure to make it cheaper
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to fly from london to glasgow when you can get a train in underfour hours customer it is both. we you can get a train in under four hours customer it is both. we should celebrate that _ hours customer it is both. we should celebrate that we _ hours customer it is both. we should celebrate that we are _ hours customer it is both. we should celebrate that we are one _ hours customer it is both. we should celebrate that we are one of- hours customer it is both. we should celebrate that we are one of the - celebrate that we are one of the united kingdom and we should improve connectivity. an ultra long haul flight will become more expensive as part of the package the chancellor has announced and that reflects our ability to both a try and stir economic growth and to protect the environment. last week we had the 30 billion net zero strategy announced and that sets out how we will decarbonise... and that sets out how we will decarbonise. . .— decarbonise. .. and this is contradicting _ decarbonise. .. and this is contradicting it, - decarbonise. .. and this is contradicting it, you - decarbonise. .. and this is contradicting it, you are l decarbonise. .. and this is - contradicting it, you are sending different messages verse two we are working to strike the right balance and the emissions that flow from vehicles and airlines are nothing compared to the wider decarbonisation set out in the strategy. we decarbonisation set out in the stratea . ~ : decarbonisation set out in the stratea . ~ ., :, decarbonisation set out in the stratea . ~ ., strategy. we are looking to support new technologies. _ strategy. we are looking to support new technologies. this _ strategy. we are looking to support new technologies. this sets - strategy. we are looking to support new technologies. this sets out - new technologies. this sets out plans for 2500 zero emission buses. these are all things we want to see.
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we banned the sale of new petrol and diesel vehicles from 2030 and we all recognise we need to decarbonise, but we also want to make sure that in the meantime families�* bills do not increase beyond which they can bear. we have struck a sensible balance. �* , balance. buried in the documents, althouah balance. buried in the documents, although the _ balance. buried in the documents, although the chancellor— balance. buried in the documents, although the chancellor did - balance. buried in the documents, although the chancellor did not. balance. buried in the documents, i although the chancellor did not talk about it, you are increasing the council�*s preset for social care. in other words, council�*s preset for social care. in otherwords, ordinary council�*s preset for social care. in other words, ordinary council tax bill payers will be whacked again to cover the cost of social care. that is not what the prime minister and chancellor boasted about when talking about fixing social care, is it? :, . :, :, , :, . it? council tax remains a vehicle for which we _ it? council tax remains a vehicle for which we pay _ it? council tax remains a vehicle for which we pay for _ it? council tax remains a vehicle for which we pay for social - it? council tax remains a vehicle for which we pay for social care. | it? council tax remains a vehicle i for which we pay for social care. 1% rise in the adult social care preset and that is the lowest increase in council tax bills since 2015—16 and reflects our priority to make sure that we help with the cost. put the
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burden on local _ that we help with the cost. put the burden on local authorities. - that we help with the cost. put the burden on local authorities. it - that we help with the cost. put the burden on local authorities. it was| burden on local authorities. it was a very good _ burden on local authorities. it was a very good settlement _ burden on local authorities. it was a very good settlement for - burden on local authorities. it was a very good settlement for local. a very good settlement for local authorities. we are giving strong support to local government. we have made the difficult choices around the health and social care levy and we do not apologise for that. we will not increase spending on health care and social care and whack it on borrowing, which is what labour would have done. it is not a responsible approach to these things. we want to be upfront with the public. there are tough choices about how we pay for these things, but we will stick closely to the fiscal rules and we will make sure we are not boring for day—to—day spending. such an important principle for us to our poll, otherwise we are passing the costs of health care today unto the children of tomorrow and that cannot be right. children of tomorrow and that cannot be riuht. ,, :, children of tomorrow and that cannot be riiht. ,, :, . children of tomorrow and that cannot beriuht. ,, a, , a, _ be right. simon jackie. obviously business is _ be right. simon jackie. obviously business is still _ be right. simon jackie. obviously business is still reeling _ be right. simon jackie. obviously business is still reeling from - be right. simon jackie. obviously business is still reeling from a i business is still reeling from a whopping corporation tax rise earlier— whopping corporation tax rise earlier this year and an increase in national_ earlier this year and an increase in national insurance contributions for
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employers. — national insurance contributions for employers, and what a lot of them told me _ employers, and what a lot of them told me is— employers, and what a lot of them told me is they were worried that the government would backslide on its commitment on research and development spending. there was a target _ development spending. there was a target of— development spending. there was a target of 22 billion x 20 4—25. they said that _ target of 22 billion x 20 4—25. they said that would crowd in a lot more private _ said that would crowd in a lot more private sector investment, which is what _ private sector investment, which is what rishi — private sector investment, which is what rishi sunak wanted to do, and that is— what rishi sunak wanted to do, and that is the _ what rishi sunak wanted to do, and that is the way forward to incentivise the private sector to invest — incentivise the private sector to invest you _ incentivise the private sector to invest. you have delayed that target by two _ invest. you have delayed that target by two years, why? it is invest. you have delayed that target by two years. why?— by two years, why? it is about managing _ by two years, why? it is about managing the _ by two years, why? it is about managing the profile - by two years, why? it is about managing the profile of - by two years, why? it is about - managing the profile of expenditure. 90% of the way to our target will be no in 26—27, but it is overall a very pro—business package of measures. we heard from the chancellor about changes to r&d tax credits to incentivise more spending within the uk. and we have measures around business rates, which will be hugely helpful to businesses up and down the country. they will face
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lower costs over the months ahead and we support retail, hospitality and we support retail, hospitality and leisure as they rebound. our commitment to being a science superpower is undamaged and is supported by tens of billions of pounds worth of investment and it is something we are very proud of. the business rate cut is about £1 billion— business rate cut is about £1 billion a _ business rate cut is about £1 billion a year, is that right? business _ billion a year, is that right? business rates as a whole are worth 25 billion. the cut we have announced is 11.5 billion over the course of the parliament and that is a very substantial offer to support the high street and to support those physical premises in their battle to remain competitive against online retail. that is something we are very closely committed to. the new release of investment in green projects and new premises. we are trying to support responsible behaviour and that will be welcomed by businesses. behaviour and that will be welcomed by businesses-— by businesses. simon, it was very tellin: at by businesses. simon, it was very
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telling at the _ by businesses. simon, it was very telling at the end _ by businesses. simon, it was very telling at the end of— by businesses. simon, it was very telling at the end of the _ by businesses. simon, it was very| telling at the end of the statement because of criticisms by conservative mps that rishi sunak wanted to restate his thatcherite principles. he did not like the size of the state and was unhappy about it, but felt it was necessary for the time. but he also said today's budget increases in total departmental spending over the parliament is £150 billion, the largest increase of the century. that could have been gordon brown at the dispatch box. if we are rightly if we are rightly proud of the fact if we are rightly proud of the fact we are not _ if we are rightly proud of the fact we are not seeing _ if we are rightly proud of the fact we are not seeing that _ if we are rightly proud of the fact we are not seeing that and - if we are rightly proud of the fact we are not seeing that and that l if we are rightly proud of the fact| we are not seeing that and that is to enable — we are not seeing that and that is to enable core projects, whether to enable _ to enable core projects, whether to enable 50,000 more nurses, 20,000 more _ enable 50,000 more nurses, 20,000 more police, — enable 50,000 more nurses, 20,000 more police, tackling the court backlog — more police, tackling the court backlog from covid, these are our priorities— backlog from covid, these are our priorities and it is certainly what i hear— priorities and it is certainly what i hear from _ priorities and it is certainly what i hear from my constituents in south—east cleveland about the lived reatity— south—east cleveland about the lived reality that they want to see addressed. we all recognise covid has had _ addressed. we all recognise covid has had a — addressed. we all recognise covid has had a major effect on our economy— has had a major effect on our economy and society and it will take time for— economy and society and it will take time for that to recede. we do want
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clearty— time for that to recede. we do want clearty to— time for that to recede. we do want clearty to a — time for that to recede. we do want clearly to a position where we can offer _ clearly to a position where we can offer tax — clearly to a position where we can offer tax cuts and look at the size offer tax cuts and look at the size of the _ offer tax cuts and look at the size of the state, but we do also have to see that _ of the state, but we do also have to see that we — of the state, but we do also have to see that we face a choice as we recover— see that we face a choice as we recover from this pandemic, whether we retrench — recover from this pandemic, whether we retrench or invest. huge opportunities can be unlocked, stronger— opportunities can be unlocked, stronger growth that we want to see happen _ stronger growth that we want to see happen. the levelling up theme of this budget and spending review is something i am personally very passionate about and i know the chancellor is as well and we are enabling — chancellor is as well and we are enabling that. it is a conscious choice — enabling that. it is a conscious choice and _ enabling that. it is a conscious choice and not always an easy one. right. _ choice and not always an easy one. right. but. — choice and not always an easy one. right, but, simon, are you... when we — right, but, simon, are you... when we can- — right, but, simon, are you... when we can. you _ right, but, simon, are you... when we can. you hope - right, but, simon, are you... when we can. you hope that - right, but, simon, are you... when we can. you hope that will| when we can. you hope that will obviously be _ when we can. you hope that will obviously be before _ when we can. you hope that will obviously be before the - when we can. you hope that will obviously be before the next - obviously be before the next election, as rishi sunak was alluding to. but are you comfortable with the idea of price adding over the highest tax burden since 1919, and also this level of spending that will continue? i and also this level of spending that will continue?— and also this level of spending that will continue? i am comfortable the ackaue of will continue? i am comfortable the package of measures _ will continue? i am comfortable the package of measures we _ will continue? i am comfortable the package of measures we have - package of measures we have announced today balance these measures. we also want to make sure we recover—
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measures. we also want to make sure we recover strongly from covid, support — we recover strongly from covid, support families with the cost of living _ support families with the cost of living and — support families with the cost of living and investing our public services _ living and investing our public services. we are very mindful about how we _ services. we are very mindful about how we pay— services. we are very mindful about how we pay for all of this and we have _ how we pay for all of this and we have clear— how we pay for all of this and we have clear fiscal rules in place to make _ have clear fiscal rules in place to make sure — have clear fiscal rules in place to make sure debt is falling as a percentage of gdp and that we are not borrowing for day—to—day spending _ not borrowing for day—to—day spending. we have shown we value, clearly. _ spending. we have shown we value, clearly. the — spending. we have shown we value, clearly, the impact tax cuts can have _ clearly, the impact tax cuts can have and — clearly, the impact tax cuts can have and we all want to reduce that tax burden— have and we all want to reduce that tax burden over the course of the parliament — tax burden over the course of the parliament. the chancellor explicitly said so in his speech. i think— explicitly said so in his speech. i think over— explicitly said so in his speech. i think over the course of further future — think over the course of further future fiscal events we will see that but — future fiscal events we will see that but for now we want to see the economy— that but for now we want to see the economy turbo—charged, support families— economy turbo—charged, support families up and down the country over the — families up and down the country over the winter ahead so that in 2022 _ over the winter ahead so that in 2022 we — over the winter ahead so that in 2022 we can really throw off the shackles — 2022 we can really throw off the shackles of this pandemic and get back to _ shackles of this pandemic and get back to business.— back to business. simon clarke, chief secretary _ back to business. simon clarke, chief secretary to _ back to business. simon clarke, chief secretary to the _ back to business. simon clarke, chief secretary to the treasury, | chief secretary to the treasury, thank you very much for your time. we will talk to pauljohnson from the institute for fiscal studies. before i come to you, laura, did you want... , . before i come to you, laura, did you want... , , ,, ., want... very interesting. simon clarke is not — want... very interesting. simon clarke is not somebody - want... very interesting. simon clarke is not somebody who - want... very interesting. simon i clarke is not somebody who would want... very interesting. simon - clarke is not somebody who would be a fan of the sort of big spending budgets but one of his colleagues has just messaged
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budgets but one of his colleagues hasjust messaged me budgets but one of his colleagues has just messaged me saying, budgets but one of his colleagues hasjust messaged me saying, i budgets but one of his colleagues has just messaged me saying, i see this landing is a great labour budget. there will be anxiety on the tory backbenchers about the scalable of this but as we just heard simon clarke saying, they think in this moment these are the right calls to make for now, carrying on with the sort of big spending ethos.- sort of big spending ethos. right. but, sort of big spending ethos. right. but. faisal. _ sort of big spending ethos. right. but, faisal, it— sort of big spending ethos. right. but, faisal, it is— sort of big spending ethos. right. but, faisal, it is back— sort of big spending ethos. right. but, faisal, it is back to - sort of big spending ethos. right. but, faisal, it is back to the - sort of big spending ethos. right. but, faisal, it is back to the pointj but, faisal, it is back to the point that you made, does it chime with the public appetite?— that you made, does it chime with the public appetite? well, clearly, we see this _ the public appetite? well, clearly, we see this pattern _ the public appetite? well, clearly, we see this pattern across - the public appetite? well, clearly, we see this pattern across this - we see this pattern across this budget— we see this pattern across this budget and _ we see this pattern across this budget and spending - we see this pattern across this budget and spending review, i budget and spending review, sprinkling _ budget and spending review, sprinkling bits _ budget and spending review, sprinkling bits and _ budget and spending review, sprinkling bits and bobs. - budget and spending review, sprinkling bits and bobs. i. budget and spending review, - sprinkling bits and bobs. italked about— sprinkling bits and bobs. italked about a — sprinkling bits and bobs. italked about a booster— sprinkling bits and bobs. italked about a boosterjab _ sprinkling bits and bobs. italked about a boosterjab for _ sprinkling bits and bobs. italked about a boosterjab for the - sprinkling bits and bobs. i talked - about a boosterjab for the economy. it wasn't _ about a boosterjab for the economy. it wasn't bad — about a boosterjab for the economy. it wasn't bad it— about a boosterjab for the economy. it wasn't bad. it is— about a boosterjab for the economy. it wasn't bad. it is almost _ about a boosterjab for the economy. it wasn't bad. it is almost like - it wasn't bad. it is almost like microsurgery, _ it wasn't bad. it is almost like microsurgery, trying - it wasn't bad. it is almost like microsurgery, trying to - it wasn't bad. it is almost like microsurgery, trying to get i it wasn't bad. it is almost like| microsurgery, trying to get up productivity, _ microsurgery, trying to get up productivity, solve _ microsurgery, trying to get up productivity, solve specific- productivity, solve specific problems _ productivity, solve specific problems with _ productivity, solve specific problems with poverty- productivity, solve specificl problems with poverty after productivity, solve specific- problems with poverty after the universal — problems with poverty after the universal credit _ problems with poverty after the universal credit fall— problems with poverty after the universal credit fall and - problems with poverty after the universal credit fall and the - problems with poverty after the | universal credit fall and the rise in prices — universal credit fall and the rise in prices so— universal credit fall and the rise in prices. so dt, _ universal credit fall and the rise in prices. so dt, and _ universal credit fall and the rise in prices. so dt, and you - universal credit fall and the rise in prices. so dt, and you wouldl in prices. so dt, and you would ekpect— in prices. so dt, and you would expect that _ in prices. so dt, and you would expect that from _ in prices. so dt, and you would expect that from that _ in prices. so dt, and you would expect that from that review, l in prices. so dt, and you would l expect that from that review, but in prices. so dt, and you would - expect that from that review, but it remains _ expect that from that review, but it remains to — expect that from that review, but it remains to be — expect that from that review, but it remains to be seen— expect that from that review, but it remains to be seen if— expect that from that review, but it remains to be seen if it _ expect that from that review, but it remains to be seen if it can- remains to be seen if it can fundamentally— remains to be seen if it can fundamentally change - remains to be seen if it can- fundamentally change productivity —— so bitty~ _ fundamentally change productivity -- so bi . . fundamentally change productivity -- sobi . ., so bitty. pauljohnson has been waitin: so bitty. pauljohnson has been waiting patiently. _ so bitty. pauljohnson has been waiting patiently. lets - so bitty. pauljohnson has been waiting patiently. lets get - so bitty. pauljohnson has been waiting patiently. lets get his l waiting patiently. lets get his expert take on this. anything that
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really struck you, because we talked earlier in the programme about a lot of the pre—announcements. we knew some of the spending. now we have a complete or more complete picture. what is your view? i complete or more complete picture. what is your view?— what is your view? i think the really striking _ what is your view? i think the really striking thing _ what is your view? i think the really striking thing is - what is your view? i think the really striking thing is the - what is your view? i think the l really striking thing is the scale of the — really striking thing is the scale of the increases in spending, which essentially— of the increases in spending, which essentially are being paid for by the very— essentially are being paid for by the very big tax rises we found out about— the very big tax rises we found out about in— the very big tax rises we found out about in the — the very big tax rises we found out about in the budget back in september. that spending has essentially covered all of government, so the chancellor is truthfully— government, so the chancellor is truthfully able to say that every department will see increases. and of course _ department will see increases. and of course he has found another couple — of course he has found another couple of — of course he has found another couple of billion pounds to increase universal— couple of billion pounds to increase universal credit. i think what is really— universal credit. i think what is really striking about taking this budget— really striking about taking this budget and the last one together, and remember this. budget and the last one together, and rememberthis. in the budget and the last one together, and remember this. in the first budget— and remember this. in the first budget of— and remember this. in the first budget of this year, he raised taxes a lot because the 0br had some pretty— a lot because the 0br had some pretty miserable projections about the economy and he felt he had to do that in— the economy and he felt he had to do that in order— the economy and he felt he had to do that in order to protect the public finances. — that in order to protect the public finances, but as the 0br has
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increased _ finances, but as the 0br has increased and improved its projections, he has not undone those tax rises _ projections, he has not undone those tax rises. what he has done instead is take _ tax rises. what he has done instead is take the — tax rises. what he has done instead is take the tax rises, not use them to reduce — is take the tax rises, not use them to reduce the deficit but use them to reduce the deficit but use them to increase — to reduce the deficit but use them to increase public spending instead. the figures, the backdrop again, we thought they were going to be slightly better than expected stop do you with that? the slightly better than expected stop do you with that?— do you with that? the figures for unemployment _ do you with that? the figures for unemployment are _ do you with that? the figures for unemployment are extremely i do you with that? the figures for- unemployment are extremely positive. i don't _ unemployment are extremely positive. ldon't think— unemployment are extremely positive. i don't think anyone predicted such a idon't think anyone predicted such a tiny— i don't think anyone predicted such a tiny rise — idon't think anyone predicted such a tiny rise in— i don't think anyone predicted such a tiny rise in unemployment after the pandemic, and the increase in growth _ the pandemic, and the increase in growth over— the pandemic, and the increase in growth over the next few years is a bit better— growth over the next few years is a bit better than the 0br was expecting back in march. it is still actually— expecting back in march. it is still actually less optimistic about the impact _ actually less optimistic about the impact of— actually less optimistic about the impact of the pandemic than the bank of england _ impact of the pandemic than the bank of england was. there is also some quite _ of england was. there is also some quite interesting stuff and that will be — quite interesting stuff and that will be a — quite interesting stuff and that will be a document saying it still thinks _ will be a document saying it still thinks and particularly based on what _ thinks and particularly based on what has — thinks and particularly based on what has happened to trade over the last year. _ what has happened to trade over the last year. it — what has happened to trade over the last year, it still thinks that brexit— last year, it still thinks that brexit will reduce national income
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quite _ brexit will reduce national income quite significantly as a result of reduced — quite significantly as a result of reduced trade, so that is built into all of— reduced trade, so that is built into all of the — reduced trade, so that is built into all of the figures, but the biggest worry— all of the figures, but the biggest worry in— all of the figures, but the biggest worry in all of this is the 4% plus projection— worry in all of this is the 4% plus projection of inflation and actually the 0br— projection of inflation and actually the 0br projection doesn't even take account— the 0br projection doesn't even take account of— the 0br projection doesn't even take account of the more recent increases in gas _ account of the more recent increases in gas prices, — account of the more recent increases in gas prices, so it could easily head _ in gas prices, so it could easily head up— in gas prices, so it could easily head up towards 5%, and again you compare _ head up towards 5%, and again you compare that with the what they thought— compare that with the what they thought in march and it is a very sharp— thought in march and it is a very sharp change. thought in march and it is a very sharp change-— thought in march and it is a very sharp change. that is because the backdrop of _ sharp change. that is because the backdrop of cost _ sharp change. that is because the backdrop of cost of _ sharp change. that is because the backdrop of cost of living - sharp change. that is because the l backdrop of cost of living pressures that you have just been outlining, against that li% average of inflation, is going to make it very difficult, even with pay rises that we have discussed, whether increases in the national living wage, or the freeze being lifted on public sector pay, a lot of that increase, whatever it is in terms of public sector pay, it will be eaten away by inflation. . . sector pay, it will be eaten away by inflation. , ., ., ., , ., inflation. yes, and again if you look deep _ inflation. yes, and again if you look deep in — inflation. yes, and again if you look deep in the _ inflation. yes, and again if you look deep in the bowels - inflation. yes, and again if you look deep in the bowels of- inflation. yes, and again if you look deep in the bowels of the | look deep in the bowels of the documents you will see the expectation for household income increases — expectation for household income increases over the next five years is pretty— increases over the next five years is pretty stagnant, growing at less
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than l% _ is pretty stagnant, growing at less than l% a — is pretty stagnant, growing at less than 1% a year for the next five years. — than 1% a year for the next five years, partly because of inflation and partly— years, partly because of inflation and partly because of the big tax rises _ and partly because of the big tax rises we — and partly because of the big tax rises we have seen imposed. it is partly— rises we have seen imposed. it is partly because growth is so poor, and that— partly because growth is so poor, and that is— partly because growth is so poor, and that is really very disappointing. remember, we have had a decade _ disappointing. remember, we have had a decade of— disappointing. remember, we have had a decade of pretty stagnant living standards, and i think in the end that will— standards, and i think in the end that will be the big political driver— that will be the big political driver of a lot that goes on, as it was over— driver of a lot that goes on, as it was over the _ driver of a lot that goes on, as it was over the last decade. poor living _ was over the last decade. poor living standards. they have had a hi i living standards. they have had a big political effect, and it looks like that— big political effect, and it looks like that almost nonexistent increase _ like that almost nonexistent increase in living standards over the next — increase in living standards over the next half a decade, that is a bil the next half a decade, that is a big blow— the next half a decade, that is a big blow to all households and families, — big blow to all households and families, of course, but it can also have _ families, of course, but it can also have a _ families, of course, but it can also have a big — families, of course, but it can also have a big impact on politics. sorry. — have a big impact on politics. sorry. i— have a big impact on politics. sorry, i wasjust going to have a big impact on politics. sorry, i was just going to say we have everybody here in the studio, you know them all. they would like to put some questions to you as well. . . to put some questions to you as well. ., ., ., , ., , ., ,, well. laura for. in terms of brass tacks, well. laura for. in terms of brass tacks. as — well. laura for. in terms of brass tacks. as you _ well. laura for. in terms of brass tacks, as you are _ well. laura for. in terms of brass tacks, as you are saying, - well. laura for. in terms of brass tacks, as you are saying, despitej tacks, as you are saying, despite these very chunky spending commitments, essentially a viewers and everybody watching, listening
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and everybody watching, listening and trying to digest everything announced today, most people will feel pretty hard up that money is pretty tight, for a long time yet? i think in terms of household budgets, yes. everything pointing in that direction — yes. everything pointing in that direction. the increase in inflation and the _ direction. the increase in inflation and the increases in taxes and what is still— and the increases in taxes and what is still actually pretty poor growth, _ is still actually pretty poor growth, put all of those together, and people on average certainly aren't— and people on average certainly aren't going to be laughing all the way to— aren't going to be laughing all the way to the bank. one of the things i think— way to the bank. one of the things i think will— way to the bank. one of the things i think will be — way to the bank. one of the things i think will be striking, though, that will be _ think will be striking, though, that will be very different for different people _ will be very different for different people. there clearly are bits of the economy where there are, you know, _ the economy where there are, you know, supply constraints, where there _ know, supply constraints, where there are — know, supply constraints, where there are shortages of obviously hgv drivers— there are shortages of obviously hgv drivers and _ there are shortages of obviously hgv drivers and so on, where we will see some _ drivers and so on, where we will see some big _ drivers and so on, where we will see some big pay— drivers and so on, where we will see some big pay rises, but other bits of the _ some big pay rises, but other bits of the economy won't see that. there will certainly — of the economy won't see that. there will certainly be some people, probably— will certainly be some people, probably a significant number, who see their— probably a significant number, who see their real living standards actually — see their real living standards actually following over the next couple — actually following over the next couple of years.— actually following over the next couple of years. paul, it is faisal lukas mai- _ couple of years. paul, it is faisal lukas mai. you _ couple of years. paul, it is faisal lukas mai. you heard _ couple of years. paul, it is faisal lukas mai. you heard the - couple of years. paul, it is faisal - lukas mai. you heard the chancellor at the _ lukas mai. you heard the chancellor at the end. — lukas mai. you heard the chancellor at the end, promising _ lukas mai. you heard the chancellor at the end, promising tax _ lukas mai. you heard the chancellor at the end, promising tax cuts - lukas mai. you heard the chancellor at the end, promising tax cuts at - at the end, promising tax cuts at some _ at the end, promising tax cuts at some point— at the end, promising tax cuts at some point in— at the end, promising tax cuts at some point in the _ at the end, promising tax cuts at some point in the future - at the end, promising tax cuts at
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some point in the future —— - at the end, promising tax cuts ati some point in the future —— faisal here _ some point in the future —— faisal here the — some point in the future —— faisal here. the headroom _ some point in the future —— faisal here. the headroom seems- some point in the future —— faisal here. the headroom seems quite| here. the headroom seems quite small. _ here. the headroom seems quite small. not— here. the headroom seems quite small. not so— here. the headroom seems quite small, not so preloaded. - here. the headroom seems quite small, not so preloaded. you - here. the headroom seems quite small, not so preloaded. you can here. the headroom seems quite - small, not so preloaded. you can see the river— small, not so preloaded. you can see the river where — small, not so preloaded. you can see the river where he _ small, not so preloaded. you can see the river where he gets _ small, not so preloaded. you can see the river where he gets the _ small, not so preloaded. you can see the river where he gets the money. the river where he gets the money for some _ the river where he gets the money for some tax— the river where he gets the money for some tax cuts, _ the river where he gets the money for some tax cuts, but _ the river where he gets the money for some tax cuts, but is— the river where he gets the money for some tax cuts, but is that - for some tax cuts, but is that pre-bake _ for some tax cuts, but is that pre—bake then? _ for some tax cuts, but is that pre—bake then? do _ for some tax cuts, but is that pre—bake then? do you - for some tax cuts, but is that pre—bake then? do you think| for some tax cuts, but is that - pre—bake then? do you think the headroom — pre—bake then? do you think the headroom is— pre—bake then? do you think the headroom is enough— pre—bake then? do you think the headroom is enough right - pre—bake then? do you think the headroom is enough right now. pre—bake then? do you think the i headroom is enough right now for them _ headroom is enough right now for them to— headroom is enough right now for them to almost _ headroom is enough right now for them to almost guarantee - headroom is enough right now for them to almost guarantee he - headroom is enough right now for. them to almost guarantee he could cut taxes? — them to almost guarantee he could cut taxes? blot— them to almost guarantee he could cut taxes? ., ., ., ., , cut taxes? not at the moment. it was sli . htl cut taxes? not at the moment. it was slightly odd. _ cut taxes? not at the moment. it was slightly odd. given — cut taxes? not at the moment. it was slightly odd, given what _ cut taxes? not at the moment. it was slightly odd, given what he _ cut taxes? not at the moment. it was slightly odd, given what he had - cut taxes? not at the moment. it was slightly odd, given what he had just i slightly odd, given what he had just done through the budget, which was to use _ done through the budget, which was to use his— done through the budget, which was to use his own tax rises of earlier in the _ to use his own tax rises of earlier in the year— to use his own tax rises of earlier in the year to pay for his own spending _ in the year to pay for his own spending increases, to then say, well, _ spending increases, to then say, well, i_ spending increases, to then say, well, i don't believe in tax rises and spending increases. it didn't chime _ and spending increases. it didn't chime with — and spending increases. it didn't chime with the actual content of what _ chime with the actual content of what he — chime with the actual content of what he was saying. his room for manoeuvre, _ what he was saying. his room for manoeuvre, as ever, will be determined by what happens in the economy— determined by what happens in the economy and in what direction the obr forecast school. he does have a little bit _ obr forecast school. he does have a little bit of— obr forecast school. he does have a little bit of headroom against his own fiscal — little bit of headroom against his own fiscal rules, —— forecasts go. in own fiscal rules, —— forecasts go. in the _ own fiscal rules, —— forecasts go. in the context of looking want years out, it _ in the context of looking want years out, it is _ in the context of looking want years out, it is a _ in the context of looking want years out, it is a tiny amount of headroom, so i would say he only has a 50-50 _ headroom, so i would say he only has a 50-50 shot — headroom, so i would say he only has a 50—50 shot in terms of what we know— a 50—50 shot in terms of what we know about — a 50—50 shot in terms of what we know about the uncertainty of the public _ know about the uncertainty of the
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public finances.— public finances. simon jack lukas mai. as always, _ public finances. simon jack lukas mai. as always, the _ public finances. simon jack lukas mai. as always, the government| public finances. simon jack lukas i mai. as always, the government has said it wants to be the best place to start to grow and manage a business —— simonjack here. yet businesses are felt pretty duffed up in the run—up to this with the insurance rise, corporation tax rise. we used to be quite a competitive tax regime. what do you make of the competitive position of the uk in business terms after this budget. ? scion of course the corporation tax rise back in march was very big indeed. the chancellor was very big indeed. the chancellor was right to eat; was very big indeed. the chancellor was riiht to was very big indeed. the chancellor was right to— was right to say it leaves the headhne was right to say it leaves the headline rate _ was right to say it leaves the headline rate relatively i was right to say it leaves the headline rate relatively low i was right to say it leaves the l headline rate relatively low by international standards but we also have quite — international standards but we also have quite a broad based —— yes, of course _ have quite a broad based —— yes, of course the — have quite a broad based —— yes, of course. the actual amount companies pay is _ course. the actual amount companies pay is not _ course. the actual amount companies pay is not particularly low. it is not particularly high but certainly not particularly high but certainly not particularly high but certainly not particularly low in the uk now. there _ not particularly low in the uk now. there was— not particularly low in the uk now. there was not a great deal of additional change in this budget. there _ additional change in this budget. there were some reasonably small changes— there were some reasonably small changes to — there were some reasonably small changes to business rates, which will help— changes to business rates, which will help particularly some smaller companies. as you said, the national
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insurance _ companies. as you said, the national insurance contributions will go up. relative _ insurance contributions will go up. relative to — insurance contributions will go up. relative to other western european competitors, our social insurance contributions to actually remain relatively — contributions to actually remain relatively low. but you also will see, _ relatively low. but you also will see, in — relatively low. but you also will see, in the _ relatively low. but you also will see, in the obr document, evidence of quite _ see, in the obr document, evidence of quite a _ see, in the obr document, evidence of quite a big reduction in trade with the — of quite a big reduction in trade with the european union. so the continued — with the european union. so the continued impact of the additional trade _ continued impact of the additional trade barriers we have with the european — trade barriers we have with the european union is taking its toll on business _ european union is taking its toll on business as— european union is taking its toll on business as well.— european union is taking its toll on business as well. right, can we talk about education? _ business as well. right, can we talk about education? we _ business as well. right, can we talk about education? we haven't i business as well. right, can we talk. about education? we haven't touched on it yet, and the government has been criticised, paul, as you know, for not investing more up until this point in terms of catch up. and in fact they have refused, for example, to extend the school day, which was a recommendation from one of the education experts. rishi sunak was lauding the fact they are going to return per pupil spending to 2010
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levels, but what is your general view of course on this important part of the whitehall departments? returning spending to where it was in 2010 _ returning spending to where it was in 2010 is— returning spending to where it was in 2010 is not an enormous amount to boast— in 2010 is not an enormous amount to boast about, — in 2010 is not an enormous amount to boast about, to have no growth over 15 years _ boast about, to have no growth over 15 years. such an important part of public— 15 years. such an important part of public services. that is unprecedented, so it is hardly a bonanza — unprecedented, so it is hardly a bonanza in _ unprecedented, so it is hardly a bonanza in the education system. there _ bonanza in the education system. there is— bonanza in the education system. there is a — bonanza in the education system. there is a bit more money in there for some _ there is a bit more money in there for some elements of further education, which are clearly incredibly important and have been really _ incredibly important and have been really dramatically starved of funds over the _ really dramatically starved of funds over the last several years. i think in terms _ over the last several years. i think in terms of— over the last several years. i think in terms of schools, there has been so much _ in terms of schools, there has been so much good news about the impact of the _ so much good news about the impact of the pandemic in general, it hasn't — of the pandemic in general, it hasn't in _ of the pandemic in general, it hasn't in general hit younger people in the _ hasn't in general hit younger people in the end _ hasn't in general hit younger people in the end more than older people, it hasn't— in the end more than older people, it hasn't even actually particularly hit lower— it hasn't even actually particularly hit lower paid people more than better— hit lower paid people more than better paid people, in the end, but it has— better paid people, in the end, but it has really— better paid people, in the end, but it has really hit less well off children— it has really hit less well off children much more than it has better— children much more than it has better off— children much more than it has better off children, so i think
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spending _ better off children, so i think spending additional money well to fix that— spending additional money well to fix that particular increase in inequality i would have thought would — inequality i would have thought would be one of the biggest priorities of the government and i'm afraid _ priorities of the government and i'm afraid i_ priorities of the government and i'm afraid i haven't yet had enough time to look— afraid i haven't yet had enough time to look at— afraid i haven't yet had enough time to look at the details of this to see how— to look at the details of this to see how much is being devoted to that. _ see how much is being devoted to that. but— see how much is being devoted to that, but clearly an awful lot less than the — that, but clearly an awful lot less than the education recovery member, kevin _ than the education recovery member, kevin collins, was proposing earlier in the _ kevin collins, was proposing earlier in the air~ _ kevin collins, was proposing earlier in the air. do kevin collins, was proposing earlier in the air. ,, , kevin collins, was proposing earlier in the air. y., , ., in the air. do you see a pattern there? -- _ in the air. do you see a pattern there? -- sir— in the air. do you see a pattern there? -- sir kevan _ in the air. do you see a pattern there? -- sir kevan collins. i in the air. do you see a pattern i there? -- sir kevan collins. rishi there? —— sir kevan collins. rishi sunak was boasting almost about putting wrong things that happened in 2010 and 2016, that sort of period where there was a real pull—back in terms of government spending after the credit crunch under george osborne, that it seemed to be he was sort of undoing a lot of things that the conservative government, successive conservative governments, have done. is that a fair characterisation?— fair characterisation? well, certainly — fair characterisation? well, certainly on _ fair characterisation? well, certainly on the _ fair characterisation? well, certainly on the tax - fair characterisation? well, certainly on the tax side. . fair characterisation? well, - certainly on the tax side. remember how much— certainly on the tax side. remember how much effort the previous government limit put into increasing
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corporation — government limit put into increasing corporation tax and to the personal allowance — corporation tax and to the personal allowance and so on, and in his last budget— allowance and so on, and in his last budget he _ allowance and so on, and in his last budget he completely undid that. on spending. _ budget he completely undid that. on spending, it does remain the case of course _ spending, it does remain the case of course that— spending, it does remain the case of course that spending in a lot of the areas _ course that spending in a lot of the areas he _ course that spending in a lot of the areas he was giving a lot of money to come _ areas he was giving a lot of money to come it — areas he was giving a lot of money to come it will remain below where it was— to come it will remain below where it was in— to come it will remain below where it was in 2010. i think there is, as you say. — it was in 2010. i think there is, as you say, though, certainly a repair 'ob you say, though, certainly a repair job being — you say, though, certainly a repair job being done here. i don't think anyone _ job being done here. i don't think anyone disagreed that the justice system. — anyone disagreed that the justice system, for example, or further education — system, for example, or further education system, or the social care system. _ education system, or the social care system, needed more money. and i think— system, needed more money. and i think that _ system, needed more money. and i think that is — system, needed more money. and i think that is really in particular about— think that is really in particular about undoing some of the damage done in _ about undoing some of the damage done in the later part of that prior period. _ done in the later part of that prior period. so— done in the later part of that prior period, so not so much the initial cuts. _ period, so not so much the initial cuts. but — period, so not so much the initial cuts, but once you got to 2014, 2015 and the — cuts, but once you got to 2014, 2015 and the cuts _ cuts, but once you got to 2014, 2015 and the cuts kept on coming, that is when _ and the cuts kept on coming, that is when a _ and the cuts kept on coming, that is when a lot— and the cuts kept on coming, that is when a lot of— and the cuts kept on coming, that is when a lot of these services really started _ when a lot of these services really started to — when a lot of these services really started to struggle, and i think what _ started to struggle, and i think what we — started to struggle, and i think what we will end up with is a world in which _ what we will end up with is a world in which some of those later cuts are undone. _ in which some of those later cuts are undone, to undo some of the big problems— are undone, to undo some of the big problems created then, but this was certainly— problems created then, but this was certainly a _ problems created then, but this was
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certainly a very, very different budget— certainly a very, very different budget to the kinds that george osborne — budget to the kinds that george osborne used to present. del— osborne used to present. del matt moore a gordon brown budget? siam are in many ways, yes, both in terms of length and in terms of the number of things and hence —— more of a gordon brown budget? yes. more of a gordon brown budget? yes, much more — more of a gordon brown budget? yes, much more like _ more of a gordon brown budget? yes, much more like gordon brown than george _ much more like gordon brown than george osborne. he _ george osborne. he will really love that characterisation.- he will really love that characterisation. ~ ., ., characterisation. we have made it twice on his _ characterisation. we have made it twice on his behalf! _ characterisation. we have made it twice on his behalf! i— characterisation. we have made it twice on his behalf! i must - characterisation. we have made it twice on his behalf! i must ask i characterisation. we have made it| twice on his behalf! i must ask you about universal credit, because obviously there has been a long—running campaign by many mps to reverse the decision to take away that £20 increase, temporary, as the government was saying. this announcement today of cutting the universal credit to 55% from 63%, will that compensate? for some people it will and for some people _ for some people it will and for some people it _ for some people it will and for some people it will not. certainly if you are in— people it will not. certainly if you are in work— people it will not. certainly if you are in work full time and on universal— are in work full time and on universal credit, you will get the full benefit of that reduction in the taper and
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full benefit of that reduction in the taperand it full benefit of that reduction in the taper and it varies according to how much— the taper and it varies according to how much you are earning and how much _ how much you are earning and how much children you have. for some people _ much children you have. for some people in— much children you have. for some people in that position, yes, they will benefit, some considerably more than £1000. taking the chancellor's words _ than £1000. taking the chancellor's words on _ than £1000. taking the chancellor's words on face value on average by about— words on face value on average by about that — words on face value on average by about that much. if you are out of work— about that much. if you are out of work and — about that much. if you are out of work and not earning very much, you will not _ work and not earning very much, you will not benefit from this at all. it is childless people out of work whose _ it is childless people out of work whose benefit, all the governments have been— whose benefit, all the governments have been most mean to them, it has not risen _ have been most mean to them, it has not risen in _ have been most mean to them, it has not risen in 50 years, an astonishing fact, and that clearly will not — astonishing fact, and that clearly will not compensate that group. some people. _ will not compensate that group. some people, yes, some people not at all and some _ people, yes, some people not at all and some people a little bit. thank ou ve and some people a little bit. thank you very much _ and some people a little bit. thank you very much for _ and some people a little bit. thank you very much forjoining _ and some people a little bit. thank you very much forjoining us. i i and some people a little bit. thank you very much forjoining us. i will| you very much forjoining us. i will take you through some of the key headlines from the budget before we talk to the shadow chief secretary to the treasury, bridget philipson, in central lobby in the palace of westminster. the office for budget
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responsibility expects inflation will hit 4% and will average at that level for next year. growth expectation has been revised up from earlier in the year from 4% to 6.5% this year. that was to some extent expected. also one of the main headlines is every government department is to get real terms rise in spending easier. pauljohnson himself said he was slightly surprised by the levels of the increase. universal credit taper rate is reduced from 63p to 55 p. that is a big subject for discussion in terms of claimant benefits. and the foreign aid spending to return to 0.7% of gdp before the end of the parliament. you will remember the government said it was reducing that on a temporary basis and would return it when the fiscal basis allowed it. rishi sunak says it will be before the end of the parliament.
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50% business rate discount for hospitality, retailand 50% business rate discount for hospitality, retail and leisure for one year. that will be a big boost for 12 months even if business rates are not scrapped. simplification of alcohol duties with stronger drinks are paying more. it will be the strength of the alcohol in terms of attracting the higher duties. planned rise in fuel duty scrapped. again it will stay that way in perpetuity when it gets to the 12th or 13th consecutive year. it will not go up. £11.5 billion for up to 180,000 new, affordable homes. there was quite a lot of detail when it came to housing. there was also about £5 billion in terms of removing dangerous cladding. an extra £4.7 billion for schools
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budget by 2024—25. faisal islam, you have to go very shortly, butjust your thoughts generally listening to what pauljohnson was saying. the what pauljohnson was saying. the bi icture what pauljohnson was saying. the big picture is _ what pauljohnson was saying. tue: big picture is that what pauljohnson was saying. tta: big picture is that the what pauljohnson was saying. t“ta: big picture is that the taxation that came in has been kept when he could have chosen, given some of the pressures on the cost of living, he could have chosen may be to return some of that. instead it has been spent and the potential for tax cuts have been rolled forward for two or three years' time. but it does jar with his and conclusion, that they definitely do want to cut taxes, when the forecast that underpinned the need to raise taxes in march, a lot of that forecast has gone away now. the economy is looking like it has rebounded strongly and employment is higher and he is
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choosing to top up these spending totals and is choosing targeted help as opposed to the cost of living crisis. the economy has done better, but clearly this inflation problem they are very alive too. the thing that stopped _ they are very alive too. the thing that stopped this _ they are very alive too. the thing that stopped this economy i they are very alive too. the thing that stopped this economy in i they are very alive too. the thing | that stopped this economy in this budget. _ that stopped this economy in this budget. is— that stopped this economy in this budget, is inflation. it is the bogeyman out there which no one can quite control. that will drive everything in the next year or so. although — everything in the next year or so. although the pressure on the bank of england, and one of the levers for the bank of england would be to increase interest rates.- the bank of england would be to increase interest rates. there was a si . nal at increase interest rates. there was a signal at the — increase interest rates. there was a signal at the beginning _ increase interest rates. there was a signal at the beginning of— increase interest rates. there was a signal at the beginning of the i signal at the beginning of the speech. — signal at the beginning of the speech, he said he told the bank of england _ speech, he said he told the bank of england to — speech, he said he told the bank of england to get on the case. let�*s england to get on the case. let's talk to the _ england to get on the case. let's talk to the shadow _ england to get on the case. let's talk to the shadow chief - england to get on the case. let�*s talk to the shadow chief secretary to the treasury. i promoted you very quickly, bridget philipson. you have been listening to the conversation. unemployment is lower than expected, the state of the public finances are looking healthier, it is good news.
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there are welcomed measures in the budget, as there would be any budget. the taper rate, we have been calling for that for a long time, but it still means a lot of people on universal credit will be facing a higher marginal tax rate than the prime minister himself. it felt a budget that was out of step with the pressures a lot of families are facing right now. there were not any immediate steps around gas and electricity bills. we have been calling for the chancellor to cut that for the next six months as those bills drop onto doormats. whilst any support for business is welcome, we haven't seen that fundamental reform of business rates that businesses are crying out for. one of the things the chancellor had an ounce already unconfirmed is the national living wage will rise to £10.50 by 2024. there was a huge row at the labour party conference when keir starmer would not budge beyond
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pledging £10 an hour. the government have overtaken you on this. we pledging £10 an hour. the government have overtaken you on this.— have overtaken you on this. we are committed — have overtaken you on this. we are committed to _ have overtaken you on this. we are committed to a _ have overtaken you on this. we are committed to a higher _ have overtaken you on this. we are committed to a higher rate - have overtaken you on this. we are committed to a higher rate of- have overtaken you on this. we are committed to a higher rate of the l committed to a higher rate of the national minimum wage than the government, but we think there should be wider support within the economy to help families through a difficult time which is likely to continue with all of the pressures around food prices, fuel and gas and electricity bills. in the labour party we like to discuss how we can raise people's living standards and in the conservative party it feels like they want to make life harder for people. coming out of this budget working people are still facing the biggest tax burden they have ever faced in facing the biggest tax burden they have everfaced in peacetime. if you have ever faced in peacetime. if you listen to some _ have ever faced in peacetime. if you listen to some of _ have ever faced in peacetime. if you listen to some of the _ have ever faced in peacetime. if you listen to some of the money - have ever faced in peacetime. if you listen to some of the money that i have ever faced in peacetime. if you listen to some of the money that has been pledged by the chancellor, we heard from the labour mayor in greater manchester, andy burnham, praising the extra money amounts for transport networks across england, do you agree with him as the government have got it right. tia do you agree with him as the government have got it right. no one will turn down — government have got it right. no one will turn down money _ government have got it right. no one will turn down money for _ government have got it right. no one will turn down money for local- will turn down money for local projects. whether that rises to the scale of the challenge we face in the long run is a bigger question.
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we also heard from the chancellor today that by the end of parliament growth will only be 1.3% which is terrible. at the same time he is pulling money out of research and development funding and putting that into the distance when we know that making our economy more competitive and productive will do a lot to drive growth. the government's record on that is pretty dismal. in terms of the spending announcements, schools for example, the government are taking us back to where we started 11 years ago, which strikes me as completely unnecessary to have gone that way in the first place because we have damaged the wider economy with some of those changes. also we have made it more difficult for children and young people to thrive which has a big knock—on effect on the economy as well. that catch plan that we needed for our children, that the government's education commissioner wanted see, there was not much more on that either. ., . , ., , , .,
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either. how much will you spend on education? — either. how much will you spend on education? l _ either. how much will you spend on education? i catch-up _ either. how much will you spend on education? i catch-up fund - either. how much will you spend on education? i catch-up fund of i either. how much will you spend on education? i catch-up fund of £13 . education? i catch-up fund of £13 million needs _ education? i catch-up fund of £13 million needs to _ education? i catch-up fund of £13 million needs to be _ education? i catch-up fund of £13 million needs to be committed. l education? i catch-up fund of £13| million needs to be committed. if you look at much of the independent research out there, the damage around not taking action will be far more severe in the long run and the same is true on climate change as well. we have got a much more ambitious plan to tackle climate change and to create lots of really well—paid, high skilljobs across our country. the cost of inaction will far outstrip the cost of action and the office for budget responsibility have been clear on that as well. responsibility have been clear on that as well-— that as well. laura here. this budiet that as well. laura here. this budget has — that as well. laura here. this budget has also _ that as well. laura here. this budget has also put - that as well. laura here. this budget has also put the i that as well. laura here. this budget has also put the tax l that as well. laura here. this i budget has also put the tax burden to the _ budget has also put the tax burden to the highest it has been since 1949 _ to the highest it has been since 1949 if— to the highest it has been since 1949. if labour was in charge in government, the tax burden would be higher— government, the tax burden would be higher even— government, the tax burden would be higher even than it has been for that number of decades. would you be relaxed _ that number of decades. would you be relaxed about that? that that number of decades. would you be relaxed about that?— relaxed about that? that is not our osition. relaxed about that? that is not our position- we _ relaxed about that? that is not our position. we are _ relaxed about that? that is not our position. we are committed - relaxed about that? that is not our position. we are committed to i relaxed about that? that is not our position. we are committed to a i relaxed about that? that is not our i position. we are committed to a much more fair tax system. we need a modern tax system fit for the 21st
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century and that is part of the reason we have been arguing for changes around business rates. central to this is to get our economy growing again. if we are only getting to 1.3% by the end of the parliament, that will make it more difficult. it was completely unnecessary to have gone ahead in that way. we take taxpayers' money seriously. people work hard and they want good value for money in terms of what is spent. the government allocated £37 billion to a test and tray system that did not deliver. just to be clear on that point, you want _ just to be clear on that point, you want additional spending a lot of different— want additional spending a lot of different areas, but if you were in government you would not want the overall _ government you would not want the overall amount of tax taken into the treasury's _ overall amount of tax taken into the treasury's offers to go up? | ithrill treasury's offers to go up? i will not say that... _ treasury's offers to go up? i will not say that... that _ treasury's offers to go up? i will not say that... that is _ treasury's offers to go up? i will not say that... that is a - treasury's offers to go up? i will not say that... that is a point i treasury's offers to go up? i will not say that... that is a point of| not say that... that is a point of principle. we have set out clear priorities as to how we would raise money differently. there are a lot of examples, take closing the
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charitable state of private schools which could then go to all of our children and young people to give them the best start in life. as with all of these things it is a question of priorities and choices and we would be making different choices with a different set of priorities, putting ourselves on the side of working people and making sure we are taking action to address those very immediate pressures that we face and to put the economy on a much stronger footing for the longer term. ., , ., , ., term. faisal islam here. in terms of the universal _ term. faisal islam here. in terms of the universal credit, _ term. faisal islam here. in terms of the universal credit, you _ term. faisal islam here. in terms of the universal credit, you want i term. faisal islam here. in terms of the universal credit, you want that l the universal credit, you want that to be _ the universal credit, you want that to be reinstated. do you recognise when _ to be reinstated. do you recognise when that— to be reinstated. do you recognise when that was put in place it was always _ when that was put in place it was always said it would be for a year. if it always said it would be for a year. if it had _ always said it would be for a year. if it had been designed to last for evel’. _
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if it had been designed to last for ever, three, four or five years, it would _ ever, three, four or five years, it would have — ever, three, four or five years, it would have been five or £10? that this winter, i am not sure you would be too concerned as to whether it was temporary or permanent. for a lot of families they only started to claim universal credit during the pandemic and for a lot of them it is all they have ever known. of course it is right they make changes within the universal credit system. we think it should be replaced with a different system entirely. bridget, ou were different system entirely. bridget, you were talking _ different system entirely. bridget, you were talking about _ different system entirely. bridget, you were talking about making i you were talking about making different priorities, is this a priority that you would be in favour of? five projects across teesside were where your constituency is will get 100 million more than £100 million from the levelling up a fund. is that a good priority? t fund. is that a good priority? i always want to see more fund. is that a good priority? t always want to see more money coming into my constituency and i have backed projects that allow that to happen. but we need a much bigger change if we are to see growth and jobs coming back to our shores. i
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will never say no to extra funding. you have accused the government of pork barrel politics in terms of which areas get funding, but not in this particular instance. latte which areas get funding, but not in this particular instance.— this particular instance. we will look carefully _ this particular instance. we will look carefully at _ this particular instance. we will look carefully at where - this particular instance. we will look carefully at where this i this particular instance. we will i look carefully at where this money is going because they have a terrible record and how they allocate funding. of course as a constituency mp i want the best for my constituents and want to see money coming to the north—east, but in terms of addressing the wider challenges about how much people have to spend in local shops and on services, does it address the long—term challenges we have seen in terms of delivery of local services, which have massively been cut back over the last ten years? it doesn't. i will never say no to any money, but does it address all the problems we face? i'm afraid it doesn't. your colleaiue we face? i'm afraid it doesn't. your colleague rachel _ we face? i'm afraid it doesn't. your colleague rachel reeves _ we face? i'm afraid it doesn't. your colleague rachel reeves had a last—minute scramble to do the budget— last—minute scramble to do the budget response after keir starmer tested _ budget response after keir starmer tested positive for covid and we understand it only happened 20 minutes— understand it only happened 20 minutes before prime ministers questions. you work closely with rachel — questions. you work closely with rachel. how well do you think she
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did? should keir starmer be worried about— did? should keir starmer be worried about her— did? should keir starmer be worried about her performance?— about her performance? rachel was wonderful, completely _ about her performance? rachel was wonderful, completely unflappable, j wonderful, completely unflappable, and even presented with that at the last minute did a greatjob not withstanding a lot of the tory boo boys trying to speak up but i think she held her own. lets. boys trying to speak up but i think she held her own.— she held her own. lets speak to alison thewliss, _ she held her own. lets speak to alison thewliss, shadow - she held her own. lets speak to i alison thewliss, shadow treasury spokesperson for the snp. welcome to you. let's talk about some of the allocations of spending as well. rishi sunak said this budget would mean £4.6 billion extra each year for scotland, the largest block grant since 1998. do you welcome the additionalfunding? tiff grant since 1998. do you welcome the additional funding ?_ additional funding? of course i would welcome _ additional funding? of course i would welcome additional i additional funding? of course i i would welcome additional funding for scotland but the devil will be in the detail, as it always is with this chancellor and this government. fight back on the basis of? element all the things they have done and said in government —— and all the things they have done and said in government --_ all the things they have done and said in government -- and on the basis of? — said in government -- and on the basis of? on _ said in government -- and on the basis of? on the _ said in government -- and on the basis of? on the basis _ said in government -- and on the basis of? on the basis of - said in government -- and on the basis of? on the basis of all i said in government -- and on the basis of? on the basis of all the l basis of? on the basis of all the thin . s basis of? on the basis of all the things they _ basis of? on the basis of all the things they have _ basis of? on the basis of all the things they have done _ basis of? on the basis of all the things they have done and i basis of? on the basis of all the things they have done and said | basis of? on the basis of all the l things they have done and said in government. you would expect the devolution settlement money to go up
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year—on—year because that is the nature of public spending and i will await the detail of that before i congratulate them too much on something they should be doing anyway. something they should be doing an a . ., . something they should be doing an a. ., ., , something they should be doing an a..,., anyway. you are against the removal ofthe anyway. you are against the removal of the universal— anyway. you are against the removal of the universal credit _ anyway. you are against the removal of the universal credit uplift, - anyway. you are against the removal of the universal credit uplift, or- of the universal credit uplift, or increase. will the scottish government pay to keep it for scottish families in receipt of universal credit?— scottish families in receipt of universal credit? well, this is a roblem universal credit? well, this is a problem created _ universal credit? well, this is a problem created by _ universal credit? well, this is a problem created by the - universal credit? well, this is a problem created by the uk i problem created by the uk government.— problem created by the uk government. ., . ., . government. sure, but the scottish government — government. sure, but the scottish government could _ government. sure, but the scottish government could make _ government. sure, but the scottish government could make a - government. sure, but the scottish government could make a priority l government. sure, but the scottish | government could make a priority of it for scottish families in receipt of universal credit. the scottish government _ of universal credit. the scottish government is _ of universal credit. the scottish government is already - of universal credit. the scottish government is already paying i government is already paying additional money to individual and families, so for example we have the scottish child payment, putting extra money in familiesapostroph—mac pockets in scotland right now. the difficulty if you have the chance are taking that same money back out of people's pockets —— extra money in the pockets of families. both through the reduction in universal credit and the national insurance increase or i think it is for the uk government to fix the problems they have created that i am hugely disappointed to see they have not taken the opportunity to reinstate this uplift because it has made the
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difference for my constituents... but the answer, to be clear, no, the scottish government is not going to make that a priority? you could compensate that yourselves. t make that a priority? you could compensate that yourselves. i am sure my colleagues _ compensate that yourselves. i am sure my colleagues will _ compensate that yourselves. t —.n sure my colleagues will look to see what is possible from the demolition settlement we get and what options are available to us, but i maintain the position very much so that this is the uk government's problem and will affect people right across the uk, this cut, and it has been the difference in my constituency between people going to food banks and people having enough money to put food on the table, and with the winter coming, with the increase in fuel bills we are seeing, it is a really difficult situation for very many people and rishi sunak did not acknowledge that at all. just many people and rishi sunak did not acknowledge that at all.— acknowledge that at all. just ahead ofthe acknowledge that at all. just ahead of the climate _ acknowledge that at all. just ahead of the climate summit _ acknowledge that at all. just ahead of the climate summit in _ acknowledge that at all. just ahead of the climate summit in glasgow, | of the climate summit in glasgow, rishi sunak announced air passenger duty on flights within the uk, domestic flights, will be reduced, it will be lower, that will help airports in scotland. the welcome that? element i think it does really beggar belief that they are going to reduce passenger duty with internal fli . hts in reduce passenger duty with internal flights in the _ reduce passenger duty with internal flights in the uk, _
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reduce passenger duty with internal flights in the uk, really _ reduce passenger duty with internal flights in the uk, really sending i flights in the uk, really sending out the wrong message entirely on climate duty to limit change with cop26 coming to our doorsteps —— well, i think. cop26 coming to our doorsteps —— well, ithink. i cop26 coming to our doorsteps —— well, i think. i think he also didn't realise that edinburgh airport doesn't pay passenger duty anyway, so he wasn't well—informed enough about how it actually works in scotland at the moment and i think it is a real missed opportunity, this budget, to talk about climate change more widely because there is a huge amount of investment... because there is a huge amount of investment. . .— because there is a huge amount of investment... wasn't as a policy of the snp government, _ investment... wasn't as a policy of the snp government, to _ investment... wasn't as a policy of the snp government, to do - investment... wasn't as a policy of| the snp government, to do exactly that, reduce air passenger duty by 50%. , ., ., . ~' ., 50%. yes, and we acknowledge the climate change _ 50%. yes, and we acknowledge the climate change issues _ 50%. yes, and we acknowledge the climate change issues of _ 50%. yes, and we acknowledge the climate change issues of that i 50%. yes, and we acknowledge the climate change issues of that and i climate change issues of that and change their position on that accordingly and i think it was the correct thing to do. isn’t accordingly and i think it was the correct thing to do.— correct thing to do. isn't that sli . htl correct thing to do. isn't that slightly contradictory, - correct thing to do. isn't that l slightly contradictory, alison? correct thing to do. isn't that i slightly contradictory, alison? i think slightly contradictory, alison? think we slightly contradictory, alison? i think we need to acknowledge there are particular issues of geography that affect scotland, for example flights to and from the islands, which are lifelong services for the people who depend upon those. there is a real difference between that and flights between edinburgh and manchester, like that, for example,
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there is a really very different. if there is a really very different. if there are viable public transport options to be taken, that is where the funding should be going rather than cutting taxes on internal flights. than cutting taxes on internal fliuhts. a �* than cutting taxes on internal fliuhts. ~ ~ flights. matt allwright, alison thewliss, thank _ flights. matt allwright, alison thewliss, thank you _ flights. matt allwright, alison thewliss, thank you very - flights. matt allwright, alison i thewliss, thank you very much. alison thewliss from the snp —— well, all right, alison thewliss, thank you very much. we have been magicallyjoined by ed davey, leader of the liberal democrats in the studio. welcome to you. we have been discussing at some length the better—than—expected figures on a whole range of economic indicators, unemployment not nearly as high as expected, borrowing lower. more money being spent on whitehall departments. what was not to light from your perspective?— departments. what was not to light from your perspective? because they had more money. — from your perspective? because they had more money, i _ from your perspective? because they had more money, i was _ from your perspective? because they had more money, i was really - had more money, iwas really surprised _ had more money, iwas really surprised —— not to like. that they failed _ surprised —— not to like. that they failed to— surprised —— not to like. that they failed to invest in our schools, and the liberal— failed to invest in our schools, and the liberal democrats had argued for an emergency budget for children and as we _ an emergency budget for children and as we heard from pauljohnson from the iss _ as we heard from pauljohnson from the iss they really didn't step up to the _ the iss they really didn't step up to the plate with that challenge. after— to the plate with that challenge. after the — to the plate with that challenge. after the covid pandemic —— paul johnson — after the covid pandemic —— paul johnson from the ifs. a lot of
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teenagers whose mental health has been hit _ teenagers whose mental health has been hit and big inequality issues. evidence _ been hit and big inequality issues. evidence suggests children from less advantaged backgrounds have been hit the most _ advantaged backgrounds have been hit the most and that is why the liberal democrats — the most and that is why the liberal democrats argued for money. we started _ democrats argued for money. we started looking at the details. they have given — started looking at the details. they have given more in a tax cut for banks— have given more in a tax cut for banks in— have given more in a tax cut for banks in the _ have given more in a tax cut for banks in the city of london, tax cut for banks, — banks in the city of london, tax cut for banks, than announced today for education _ for banks, than announced today for education cash in funding because that is— education cash in funding because that is the — education cash in funding because that is the wrong priority. you're right, _ that is the wrong priority. you're right, when— that is the wrong priority. you're right, when you have a lot of money it is about _ right, when you have a lot of money it is about priorities. this government, the conservatives have chosen _ government, the conservatives have chosen the _ government, the conservatives have chosen the banks above our children and that— chosen the banks above our children and that is— chosen the banks above our children and that is wrong. like mike but in terms _ and that is wrong. like mike but in terms of— and that is wrong. like mike but in terms of priorities you will also have _ terms of priorities you will also have heard rishi sunak say he was returning — have heard rishi sunak say he was returning the per—pupil have heard rishi sunak say he was returning the per-pupil— have heard rishi sunak say he was returning the per-pupil spending to 2010, before _ returning the per-pupil spending to 2010, before you _ returning the per-pupil spending to 2010, before you as _ returning the per-pupil spending to 2010, before you as part _ returning the per-pupil spending to 2010, before you as part of- returning the per-pupil spending to 2010, before you as part of the - 2010, before you as part of the coalition government of course cut it that mac —— well, in terms of. we it that mac -- well, in terms of. we didn't, it that mac —— well, in terms of. we didn't, actually. we maintain in real terms— didn't, actually. we maintain in real terms education spending and the liberal democrats major more money— the liberal democrats major more money went to disadvantaged pupils through— money went to disadvantaged pupils through the pupil premium and the cuts happen mainly after 2015. as pauljohnson from the ifs said, the idea we're — pauljohnson from the ifs said, the idea we're getting back to the same rate in— idea we're getting back to the same rate in 2010, over 20 years later, is not _
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rate in 2010, over 20 years later, is not a _ rate in 2010, over 20 years later, is not a sign _ rate in 2010, over 20 years later, is not a sign of success. again, it is not a sign of success. again, it is the _ is not a sign of success. again, it is the conservatives choosing the wrong _ is the conservatives choosing the wrong priorities.— is the conservatives choosing the wrong priorities. they would argue we have had _ wrong priorities. they would argue we have had a _ wrong priorities. they would argue we have had a pandemic— wrong priorities. they would argue we have had a pandemic and - wrong priorities. they would argue we have had a pandemic and they| wrong priorities. they would argue i we have had a pandemic and they put an awful lot of the departmental spending on health, which you would agree with. but spending on health, which you would aaree with. �* , , agree with. but he rightly said they had a lot more _ agree with. but he rightly said they had a lot more money _ agree with. but he rightly said they had a lot more money because - agree with. but he rightly said they i had a lot more money because growth was high _ had a lot more money because growth was high. this was the moment to invest— was high. this was the moment to invest in— was high. this was the moment to invest in future, in the children, our schools _ invest in future, in the children, our schools. i think there will be millions— our schools. i think there will be millions of— our schools. i think there will be millions of parents out there pretty upset _ millions of parents out there pretty upset by _ millions of parents out there pretty upset by that, and then you could come _ upset by that, and then you could come to— upset by that, and then you could come to carers. i have been talking as liberat— come to carers. i have been talking as liberal democrat leader mac about the need _ as liberal democrat leader mac about the need to— as liberal democrat leader mac about the need to support unpaid carers, the need to support unpaid carers, the ones _ the need to support unpaid carers, the ones who are probably hit most by the _ the ones who are probably hit most by the pandemic looking after family and loved _ by the pandemic looking after family and loved ones, literally nothing in this budget for carers, unpaid carers~ — this budget for carers, unpaid carers. whether it is carers or children. _ carers. whether it is carers or children. i_ carers. whether it is carers or children, i would carers. whether it is carers or children, iwould have carers. whether it is carers or children, i would have thought they would _ children, i would have thought they would have been a priority. they are certainly— would have been a priority. they are certainly liberal democrat priorities but they don't appear to be the _ priorities but they don't appear to be the government's will stop increase — be the government's will stop increase to the national living wage, billions for the nhs, and an increase to the national minimum wage. you would be out for those things? we wage. you would be out for those thins? ~ ., wage. you would be out for those thins? ~ . ., ., wage. you would be out for those thinis? . ., ., ., ,., things? we have argued for them so i am delighted — things? we have argued for them so i am delighted at _ things? we have argued for them so i am delighted at long _
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things? we have argued for them so i am delighted at long last _ things? we have argued for them so i am delighted at long last they - things? we have argued for them so i am delighted at long last they are - am delighted at long last they are putting _ am delighted at long last they are putting those into practice but even some _ putting those into practice but even some of— putting those into practice but even some of the smoke and mirrors we saw from the _ some of the smoke and mirrors we saw from the chancellor, if you look at the case _ from the chancellor, if you look at the case of — from the chancellor, if you look at the case of a single mother working part-time _ the case of a single mother working part—time on the minimum wage, she will lose _ part—time on the minimum wage, she will lose out— part—time on the minimum wage, she will lose out from the universal credit _ will lose out from the universal credit changes announced before the budget— credit changes announced before the budget and in the budget, so let us be clear. _ budget and in the budget, so let us be clear. a — budget and in the budget, so let us be clear, a lot of low paid workers are not— be clear, a lot of low paid workers are not going to get help. remember there is— are not going to get help. remember there is an _ are not going to get help. remember there is an increase in national insurance _ there is an increase in national insurance to hit unemployed workers, the fees _ insurance to hit unemployed workers, the fees and — insurance to hit unemployed workers, the fees and the income tax allowance which will hit low paid workers. — allowance which will hit low paid workers, and the liberal democrats argued _ workers, and the liberal democrats argued and — workers, and the liberal democrats argued and actually implemented a bil argued and actually implemented a big increase in the tax—free allowance, and took millions of low-baid — allowance, and took millions of low—paid people out of allowance, and took millions of low— paid people out of the tax altogether full stop the government have not— altogether full stop the government have not done that. lets altogether full stop the government have not done that.— have not done that. lets talk about local councils. _ have not done that. lets talk about local councils. an _ have not done that. lets talk about local councils. an extra _ have not done that. lets talk about local councils. an extra £4.8 - local councils. an extra £4.8 billion for local councils. the liberal democrat lead 49 councils overall. that will be welcome, won't it? ., ., 4' overall. that will be welcome, won't it? ., ., one it? looking at the detail... one could say _ it? looking at the detail... one could say you're _ it? looking at the detail... one could say you're just _ it? looking at the detail... one could say you're just not - it? looking at the detail... one l could say you're just not satisfied with anything. i could say you're 'ust not satisfied with anything._ with anything. i am certainly not satisfied with _ with anything. i am certainly not satisfied with what _ with anything. i am certainly not satisfied with what they - with anything. i am certainly not satisfied with what they have - with anything. i am certainly not l satisfied with what they have done for children in schools and i am really— for children in schools and i am really not — for children in schools and i am really not satisfied with what they
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have done for unpaid carers, and what _ have done for unpaid carers, and what they— have done for unpaid carers, and what they have done in climate. let me give _ what they have done in climate. let me give you — what they have done in climate. let me give you one thing, i am pleased with what— me give you one thing, i am pleased with what they have done for pubs, as community pubs are something the liberal— as community pubs are something the liberal democrats have campaigned [on- liberal democrats have campaigned long and _ liberal democrats have campaigned long and hard on over many years and belatedly— long and hard on over many years and belatedly they are actually doing the right thing for community pubs so i the right thing for community pubs so i am _ the right thing for community pubs so i am really happy with that but, you know. — so i am really happy with that but, you know, my constituents who have kids, _ you know, my constituents who have kids. caring — you know, my constituents who have kids, caring for loved ones at home, they are _ kids, caring for loved ones at home, they are right about climate change, they, _ they are right about climate change, they, when — they are right about climate change, they, when the detail of this budget comes— they, when the detail of this budget comes out, — they, when the detail of this budget comes out, they will be pretty disappointed. comes out, they will be pretty disappointed-— comes out, they will be pretty disappointed. stay with us. i will show everyone _ disappointed. stay with us. i will show everyone the _ disappointed. stay with us. i will show everyone the street. - disappointed. stay with us. i will show everyone the street. good| disappointed. stay with us. i will. show everyone the street. good to get your response, simon. from the cbi, tony danker... so that is the first sort of major response we have had from one part of the business community. i response we have had from one part of the business community.- of the business community. i think there were — of the business community. i think there were a _ of the business community. i think there were a couple _ of the business community. i think there were a couple of _ there were a couple of disappointments, - there were a couple of disappointments, one| there were a couple of - disappointments, one being the there were a couple of _ disappointments, one being the 24—25
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target _ disappointments, one being the 24—25 target pushed — disappointments, one being the 24—25 target pushed back, _ disappointments, one being the 24—25 target pushed back, seen— disappointments, one being the 24—25 target pushed back, seen as _ disappointments, one being the 24—25 target pushed back, seen as crowdingl target pushed back, seen as crowding private _ target pushed back, seen as crowding private sector— target pushed back, seen as crowding private sector investment. _ target pushed back, seen as crowding private sector investment. the - target pushed back, seen as crowding private sector investment. the otherl private sector investment. the other one was— private sector investment. the other one was the — private sector investment. the other one was the failure _ private sector investment. the other one was the failure to _ private sector investment. the other one was the failure to do _ private sector investment. the other one was the failure to do the - private sector investment. the other one was the failure to do the major i one was the failure to do the major overhaul— one was the failure to do the major overhaul of— one was the failure to do the major overhaul of business— one was the failure to do the major overhaul of business rates - one was the failure to do the major overhaul of business rates which i one was the failure to do the major. overhaul of business rates which has been asked — overhaul of business rates which has been asked for— overhaul of business rates which has been asked for for— overhaul of business rates which has been asked for for a _ overhaul of business rates which has been asked for for a long _ overhaul of business rates which has been asked for for a long time - overhaul of business rates which has been asked for for a long time and l overhaul of business rates which has been asked for for a long time and i | been asked for for a long time and i think— been asked for for a long time and i think it _ been asked for for a long time and i think it has — been asked for for a long time and i think it has been _ been asked for for a long time and i think it has been put _ been asked for for a long time and i think it has been put in _ been asked for for a long time and i think it has been put in the - been asked for for a long time and i think it has been put in the box - been asked for for a long time and i think it has been put in the box of. think it has been put in the box of too hard _ think it has been put in the box of too hard to— think it has been put in the box of too hard to deal— think it has been put in the box of too hard to deal with _ think it has been put in the box of too hard to deal with right- think it has been put in the box of too hard to deal with right now. . think it has been put in the box of. too hard to deal with right now. you did get— too hard to deal with right now. you did get a _ too hard to deal with right now. you did get a £1— too hard to deal with right now. you did get a £1billion_ too hard to deal with right now. you did get a £1 billion a _ too hard to deal with right now. you did get a £1 billion a year— too hard to deal with right now. you did get a £1 billion a year because . did get a £1 billion a year because they have — did get a £1 billion a year because they have reduced _ did get a £1 billion a year because they have reduced the _ did get a £1 billion a year because they have reduced the multiplierl they have reduced the multiplier which _ they have reduced the multiplier which basically— they have reduced the multiplier which basically reduced - they have reduced the multiplier which basically reduced business rates. _ which basically reduced business rates. and — which basically reduced business rates. and as— which basically reduced business rates, and as david _ which basically reduced business rates, and as david was- which basically reduced business rates, and as david wasjust - which basically reduced business rates, and as david wasjust —— i which basically reduced business. rates, and as david wasjust —— as ed davey— rates, and as david wasjust —— as ed davey was _ rates, and as david wasjust —— as ed davey wasjust— rates, and as david wasjust —— as ed davey wasjust saying, - rates, and as david wasjust —— as ed davey was just saying, the - rates, and as david wasjust —— as ed davey wasjust saying, the cut| ed davey wasjust saying, the cut for leisure — ed davey wasjust saying, the cut for leisure services— ed davey wasjust saying, the cut for leisure services and _ ed davey wasjust saying, the cut for leisure services and others, . ed davey wasjust saying, the cut. for leisure services and others, and ithink— for leisure services and others, and i think next— for leisure services and others, and l think next year— for leisure services and others, and i think next year that _ for leisure services and others, and i think next year that will _ for leisure services and others, and i think next year that will be - for leisure services and others, and i think next year that will be a - i think next year that will be a welcome _ i think next year that will be a welcome boost. _ i think next year that will be a welcome boost. but— i think next year that will be a welcome boost. but the - i think next year that will be a - welcome boost. but the opportunity to try— welcome boost. but the opportunity to try to— welcome boost. but the opportunity to try to have — welcome boost. but the opportunity to try to have this _ welcome boost. but the opportunity to try to have this mass _ welcome boost. but the opportunity to try to have this mass overhaul. welcome boost. but the opportunity to try to have this mass overhaul of| to try to have this mass overhaul of business _ to try to have this mass overhaul of business rates _ to try to have this mass overhaul of business rates they— to try to have this mass overhaul of business rates they feel _ to try to have this mass overhaul of business rates they feel is - to try to have this mass overhaul of business rates they feel is missed. | business rates they feel is missed. but there _ business rates they feel is missed. but there was _ business rates they feel is missed. but there was an _ business rates they feel is missed. but there was an extension - business rates they feel is missed. but there was an extension of- business rates they feel is missed. but there was an extension of 1 - but there was an extension of1 million — but there was an extension of1 million capital— but there was an extension of1 million capital allowance, - but there was an extension of1 million capital allowance, so i but there was an extension of 1 i million capital allowance, so there will be _ million capital allowance, so there will be some — million capital allowance, so there will be some r&d _ million capital allowance, so there will be some r&d spending - million capital allowance, so there will be some r&d spending in - million capital allowance, so there . will be some r&d spending in there, and the _ will be some r&d spending in there, and the government— will be some r&d spending in there, and the government will— will be some r&d spending in there, and the government will point - will be some r&d spending in there, and the government will point out i and the government will point out although— and the government will point out although we — and the government will point out although we didn't _ and the government will point out although we didn't hit _ and the government will point out although we didn't hit the - and the government will point out although we didn't hit the 22 - although we didn't hit the 22 billion— although we didn't hit the 22 billion mark— although we didn't hit the 22 billion mark we _ although we didn't hit the 22 billion mark we will- although we didn't hit the 22 billion mark we will be - although we didn't hit the 22 billion mark we will be 20 i although we didn't hit the 22 - billion mark we will be 20 billion x 20 4-25. — billion mark we will be 20 billion x 20 4-25. which _ billion mark we will be 20 billion x 20 4—25, which begs _ billion mark we will be 20 billion x 20 4—25, which begs the - billion mark we will be 20 billion x| 20 4—25, which begs the question, was it— 20 4—25, which begs the question, was it worth — 20 4—25, which begs the question, was it worth missing _ 20 4—25, which begs the question, was it worth missing what - 20 4—25, which begs the question, was it worth missing what a - 20 4—25, which begs the question, was it worth missing what a lot - 20 4—25, which begs the question, was it worth missing what a lot of| was it worth missing what a lot of people _ was it worth missing what a lot of people saw— was it worth missing what a lot of people saw as _ was it worth missing what a lot of people saw as an— was it worth missing what a lot of people saw as an important - was it worth missing what a lot of| people saw as an important target for £3 _ people saw as an important target for £3 billion? _ people saw as an important target for £3 billion? he _ people saw as an important target for £3 billion? he spent _ people saw as an important target for £3 billion? he spent an- people saw as an important target for £3 billion? he spent an awful. for £3 billion? he spent an awful lot of— for £3 billion? he spent an awful lot of time — for £3 billion? he spent an awful lot of time detailing _ for £3 billion? he spent an awful lot of time detailing the - for £3 billion? he spent an awful lot of time detailing the booze . lot of time detailing the booze changes. _ lot of time detailing the booze changes. and _ lot of time detailing the booze changes, and the _ lot of time detailing the booze changes, and the cuts- lot of time detailing the booze changes, and the cuts on- lot of time detailing the booze changes, and the cuts on the. changes, and the cuts on the stronger— changes, and the cuts on the stronger the _ changes, and the cuts on the stronger the drink— changes, and the cuts on the stronger the drink you - changes, and the cuts on the stronger the drink you drink, j stronger the drink you drink, whatever. _ stronger the drink you drink, whatever, and _ stronger the drink you drink, whatever, and that -
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stronger the drink you drink, whatever, and that will - stronger the drink you drink, whatever, and that will helpl stronger the drink you drink, - whatever, and that will help pubs for sure. — whatever, and that will help pubs for sure. as — whatever, and that will help pubs for sure, as ed _ whatever, and that will help pubs for sure, as ed davey— whatever, and that will help pubs for sure, as ed davey says, - whatever, and that will help pubs for sure, as ed davey says, but. whatever, and that will help pubs for sure, as ed davey says, but a| for sure, as ed davey says, but a lot of— for sure, as ed davey says, but a lot of people _ for sure, as ed davey says, but a lot of people will _ for sure, as ed davey says, but a lot of people will be _ for sure, as ed davey says, but a| lot of people will be disappointed they miss — lot of people will be disappointed they miss that _ lot of people will be disappointed they miss that r&d _ lot of people will be disappointed they miss that r&d when - lot of people will be disappointed they miss that r&d when that. they miss that r&d when that rhetoric— they miss that r&d when that rhetoric has _ they miss that r&d when that rhetoric has been _ they miss that r&d when that rhetoric has been making - they miss that r&d when that rhetoric has been making the| they miss that r&d when that i rhetoric has been making the uk they miss that r&d when that - rhetoric has been making the uk a scientific— rhetoric has been making the uk a scientific powerhouse. _ rhetoric has been making the uk a scientific powerhouse. in - rhetoric has been making the uk a scientific powerhouse.— scientific powerhouse. in the remaining — scientific powerhouse. in the remaining minutes, - scientific powerhouse. in the remaining minutes, let's - scientific powerhouse. in the | remaining minutes, let's talk scientific powerhouse. in the - remaining minutes, let's talk about the politics. you could argue and the politics. you could argue and the government certainly would be answered some of the big criticisms, whether on universal credit, whether on wages. it tried to counter some of the criticisms about rising inflation. but where does it leave the government, particularly this restating by rishi sunak at the end that this isn't really where he wants to be, he wants to be somewhere really quite different? that's right. there was always to limit almost a cent at the end from rishi sunak of dangling with, well, he made me do it —— there was almost the sense at the end. that boris johnson made him do it full stop i am not suggesting that is what happened, but he was at pains to make it clear that from an ideological point of view rishi sunak would much rather be in a different environment to stop yes, you can say, of course, nobody would be trying to rebuild after a pandemic, after the last couple of years the country has been through,
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but it is representative i think of this tension inside the conservative party that this is, and forgive me for saying this again, this is a high tax, big spending conservative government, and it is going to stay that way for the foreseeable future, and also the benefits that families and also the benefits that families and firms might feel from that might not be very great, and we were hearing from pauljohnson actually that it might not feel very great at all. things might continue to feel very tough and in fact even tougher for lots of people watching and listening today. and, therefore, thatis listening today. and, therefore, that is a political dilemma. this is not assertive budget where he chucked around loads of money, loads of taxes raised, and as a consequence everyone will be feeling good and cracking open the bottles of cheap prosecco. it is a big budget, big spending, high taxes, not quite clear whether the government will benefit politically from what they have said. fir government will benefit politically from what they have said. or whether their own side — from what they have said. or whether their own side will _ from what they have said. or whether their own side will be _ from what they have said. or whether their own side will be the _ from what they have said. or whether their own side will be the ones - their own side will be the ones criticising them. that is all we have time for. thank you, ed davey, forjoining in the closing moments
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of this programme does not think it all of my guest forjoining on a big day, the budget and spending review. i will be back tomorrow at tomorrow at 12.50. goodbye.
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this is bbc news. i'm shaun ley. the headlines: the chancellor promises a strong economy, fit for a "new age of optimism," as he delivers his budget. employment is up. investment is growing. public services are improving. the public finances are stabilising. and wages are rising. jeering. among the big announcements, changes to universal credit, allowing in—work claimants to keep more of the money they earn. the chancellor laid out the state of the economy — with inflation expected to hit li%. there's a cut in air passenger duty tax between airports within the uk and a freeze in fuel duty — the chancellor's accused of failing to tackle climate change in his budget. the current alcohol duty system
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will be overhauled —

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