Many are in will be continuing. Also today, zimbabwes former Vice President Emmerson Mnangagwa arrives back in the country. Hes expected to be sworn in as president on friday. Its 5. 00. Were at westminster on budget day, where the chancellor Philip Hammond has unveiled a series of measures, which he claims will put the uk on a secure footing for brexit and beyond, setting aside £3 billion for every possible outcome from the brexit talks. Well take a look at the main measures, but we start with the big economic picture. The chancellor unveiled a sharp reduction in forecasts for Economic Growth in 2017, from 2 to 1. 5 , with lower forecasts for the three years to follow. And productivity growth is also down, according to the office for budget responsibility, or stubbornly flat in the chancellors words. There was slightly better news on borrowing, with an annual figure just under £50 billion, £8. 4 billion lower than forecast in march. A look at some of the specific measures unveiled by the chancellor today. First time buyers will not have to pay any stamp duty on properties up to 300,000, and for those in london, therell be no stamp duty on the first 300,000 of the property value. But these measures are expected to push up property prices. Therell be more money for the nhs, including £2. 8 billion in extra funding for the nhs in england over three years, and additional funding for any pay rises for nhs staff next year. The chancellor responded to concerns about the roll out of universal credit, with a £1. 5 billion package to address concerns about how quickly people receive the benefit. Some other measures, the personal tax Free Allowance will rise to £11,850, or £46,350 for those on the higher rate of tax. Fuel duty is frozen for another year, but there will be an increase in vehicle excise duty for older diesel cars. And, as trailed, the Young Persons railcard discount will be extended up until the age of 30. Well have more detail and reaction, but we start with events in the house of commons, and our Political Correspondent leila nathoo. Are you boxed in, chancellor . He has been under pressure, but the chancellor this morning was putting on a brave face. Any tricks in your red box . Preparing to set out the journey ahead for the governments tax and spending plans. Brexit looms large. Theres not much cash in the kitty and there have been demands from some of his conservative colleagues for a big and bold budget to lift the partys post election gloom. In the commons, as the chancellor waited to deliver his statement, the Prime Minister insisted her government was putting the country first. Im optimistic about our future. Im optimistic about the success we can make of brexit. Im optimistic about the well paid jobs that will be created. Im optimistic about the homes we will build. Thats conservatives, building a britain fit for the future. I now call the chancellor of the exchequer, Philip Hammond. Then it was Philip Hammonds turn at the dispatch box to set out his strategy. Insisting the government had been listening. We understand the frustration of families where real incomes are under pressure. So at this budget, we choose a balanced approach. Yes, maintaining fiscal responsibility as we at last see our debt peaking. Continuing to invest in the skills and infrastructure that will support the jobs of the future. Laughter building the homes that will make good on our promise to the next generation. But crucially, also, helping families to cope with the cost of living. Despite hisjovial tone, the chancellor revealed there was plenty ofjokes. But also this. Business and gdp growth. A dramatic downgrade in forecast growth, back in march, they said growth, back in march, they said growth would be back to about 2 a year for three years and are struggling back to 1. 5 a year and thatis struggling back to 1. 5 a year and that is a big difference and one of the reasons why the chancellor was not able to do much because he had 110 money not able to do much because he had no money to play with. Not much room for many of but still a headline on housing in england and wales aimed at young people. Whether backed from today, for all First Time Buyer purchases up to £300,000 i am abolishing stamp duty altogether. Philip hammond announced changes to universal credit following intense political pressure, promising additional funding to cut waiting times for the payment and to make it quicker to claim an advance. There will be an extra £2. 8 billion for the nhs in england and more cash for schools which boost their numbers of maths students, plus with plans to be at the fore front of tech. The chancellor wants Driverless Cars on the countrys roads by 2021. Labour has attacked the budget calling it a record of failure with a forecast of more to come. People were looking for help from this budget and they have been let down. Let down by a government that like the economy they presided over is weak and unstable and in need of urgent change. They call this a budget fit for the future. The reality is this is a government no longerfit for office. Cheering this was a measured budget. No fireworks, no slip ups, the chancellor will hope he has done enough to convince the country and his own colleagues that he is the right man to remain in charge of the economy. The scenes in the commons earlier. The communities secretary sajid javid is here. How concerned how concerned are how concerned are you by the downgrade of the growth forecast . These are independent forecasts but today i thought it was a reminder from the chancellor that the hard work of the british people is paying off in our economy remains strong and resilient. It is worth recalling last year we were one of the Fastest Growing advanced economies in the world. This year there was a forecast we would grow faster than france or italy orjapan, for example, but we are not complacent. What you are the chancellor today as we must keep investing and make this a country by the future and that means investing in infrastructure and skills and our housing. Are you telling viewers you think the growth forecasts are to be taken with a pinch of salt . No, they are independent forecasts andi no, they are independent forecasts and i respect that. You think they are too pessimistic . Not for me to say. I think it is important for the government to take the forecast at face value and make sure we as a government are doing everything we can to keep our economy strong and resilient, whilst investing in our infrastructure but also helping families, whether that is by cutting tax by the lowest paid, something we saw today, or investing in our nhs, something that is valuable to all of us, but also delivering the homes this country needs, and that requires the government to do its job needs, and that requires the government to do itsjob by investing in infrastructure. You heard in that piece that because of these growth forecasts and the economic environment, ifjuly, the chancellor had little room for manoeuvre. The question is, are you concerned that those growth forecasts have been significantly downgraded . Iam downgraded . I am concerned that we keep investing and that is what we had the chancellor. The investment this country needs especially in new technology that the chancellor talked about, investing in tech, we see a tech as a thing every hour started to britain. A lot about new fantastic technology is staying in britain, great to see creating jobs. Whilst talking about jobs, britain, great to see creating jobs. Whilst talking aboutjobs, it is also good to hear the chancellor talk about forecasts for jobs, an additional 600,000 jobs over the next five years. Today we have already got at the highest rate we ever had at employment, but the Unemployment Rate is at its lowest for a0 years. I want to see that kind of success continue, so we must continue investing. What is the recent productivity in the uk is so stubbornly flat . As the government we have talked about this before and taking action in previous budgets, today the chancellor added to that do the increase in the National Productivity bundle. It is making sure we invest in those things that will drive productivity in future and that of course is not be less. Infrastructure investment. We happily chancellor today that the crossrail investment and the h52 investment, two of the largest Infrastructure Projects in the world. More investment in skills, computer technology, competing teachers and maths. Also this new deal with the tuc and cbi and the government working together for skills for the future. This is the kind of investment required to make sure we deal with the productivity challenge. Crossrail has been around for sometime, and viewers might wonder when we see better on activity beggars speeding through, because just to underline today, there was no pretence from the chancellor at all no pretence from the chancellor at all productivity beggars speeding through. You productivity is speeding through. We seem to have a problem with productivity. Asa productivity. As a country we have a child with productivity and it has been low under successive governments, and thatis under successive governments, and that is not because of the british people. We are the hardest working people. We are the hardest working people in the world and that is fantastic. But government must do its bit in investment. You can only do that if you have a Strong Economy thatis do that if you have a Strong Economy that is generating the jobs, generating the tax revenue that can be reinvested. And that is key to all of this, and under this government in the last seven years we have seen a huge turnaround in our economy, one of the strongest in the world, the sixth largest in the world. Were doing well on many accou nts world. Were doing well on many accounts but if we want to continue to see that, then i think you must see this kind of budget where we continue to invest for the future and not a country that for the future. Setting aside billions of pounds for every brexit eventuality, which was the other interesting feature todays addressed by the chancellor, what should we read into that . That the government is actively planning for no deal . What you should read is the government wanted to get a good deal with europe and we want it to be a deep, copper heads of trade deal and thatis deep, copper heads of trade deal and that is what were working towards, but you would expect the government to prepare for all eventualities. That making sure the resources are available. What businesses want more than everything, is more certainty. They want to know, as soon as we can tell them, what kind of deal will have with europe. They also want to know that if in the circumstance that you dont get the right deal, or you dont get a deal that you will take forward, that you are prepared to have been no deal scenario. We want to make sure this country is prepared for every scenario and that is why the chancellor has invested in that. Final point, some of your colleagues have because stick with the fact they have not been impressed over they have not been impressed over the chancellor over the past year. How do you rate his budget today and Performance Today . What your collea g u es Performance Today . What your colleagues tell you . We are lucky to have such a strong chancellor that knows his job incredibly well, and use back in action today, where he has managed to show we can stay on top of our finances, see the deficit falling year on year, get the debt down as a percentage of gdp, but also invest for the future. That would have been a hard job for anyone, for the future. That would have been a hardjob foranyone, and for the future. That would have been a hard job for anyone, and this chancellor certainly delivered. Thank you very much. Good to see you. Communities secretary, sajid javid. Coming up in the next a5 minutes or so, well be talking to the local Government Association because there we re Government Association because there were lots of aspect of todays budget which of course, not least in terms of housing, will have a big impact there on how local government goes about its policies. We are talking to Business People and getting reaction on some Financial Market as well. And we will talk to someone involved in quite an interesting business in south london. I will tell you later on. Interesting business in south london. Iwill tell you later on. In the meantime, lets carry on with our front line political reaction here, and this is. Labours jonathan reynolds, the shadow treasury minister, is here. What is your main takeaway from the budget . A budget that did not change anything i did not tell us what the government thinks its purposes are is trying to solve. A series of strange half measures. Deciding to spend more freezing alcohol duty then fixing universal credit, despite the hype around the correct need to fix universal credit. More and brighter than the nhs, even though a lot of people did not vote for brexit. Headline economic news, huge downgrade on productivity and impact on tax and growth. Amount of money £7 billion for Productivity Investment Fund that will not start until 2020 do, even though we sorted it is gilbey challenge. I dont think that make sense. And growth, what would a Labour Government and usa treasury minister due to boost growth . To an right idea but dont wait until 2020 do. A large and have money in the manifesto that this year. Money in the manifesto that this year. £25 money in the manifesto that this year. £25 million of investment spending. We were not borrow from day to day spending to invest. That would go into a housing for improved transport links because of everyone recognises the scale of the productivity challenge, will recognise and uncertainty in the private sector, and because of brexit. We must have a greater level of investment from the state and clearly we dont do that we see these figures having the consequences of the problem. Productivity, the chancellor himself said is stubbornly blacked. What is your the chancellor said productivity is stubbornly blacked. Blacked. Stubbornly flat. 0nce blacked. Stubbornly flat. Once we were derided for it first in the government into investment spending and now it seems even members of the cabinet want to be winning the argument and see the government do it. When he was asked about investment, significant investment, how would you significant investment, how would yu pay significant investment, how would you pay for it and what is answer . We have a different set of priorities to government and put in our manifesto detailed costings were to ta ke our manifesto detailed costings were to take money from, reversing big cuts to Corporation Tax and inheritance tax and the bank levy to raise more money per day to day spending. We can also as a country afford to borrow to invest, and we see in those figures what will happen to improve productivity and get investment, because the Headline News today is shocking figures for Economic Growth and productivity in todays budget. Do you welcome the initiative on stamp duty for First Time Buyers . Will market is ours we are taking or doing. They probably would say is we recognise you must boost supply the same time. 0ne the same time. One of the biggest things the big increase to the man with stamp duty. Prices go up. Straightaway that will push up prices because you are not matching with supply. Supply must come from a lot of different things, but crucially the government must recognise, i would say, a significant amount of homes for social rent must be part of that. We set 100,000, £1 million social rent must be part of that. We set100,000, £1 million to social rent must be part of that. We set 100,000, £1 million to be invested to do that. If you dont do that, reducing the stamp duty First Time Buyers pay is welcome but making the situation where any longer medium term, that will not please anybody. I please anybody. , a First Time Buyers will benefit . What is your estimate . The problem for first time what is your estimate . The problem forFirst Time Buyers is the cost of deposits and houses they are trying to buy and stamp duty could help it if you cant afford property to begin with, then bradley will not get anything at all from stamp duty being cut. I am worried and for me there this will not address it. Final point on the brexit issue and the fact he is setting aside at least £3 billion for all brexit eventualities. Is that undermine wrq . To prepare for brexit is sensible. We would say the worst Case Scenario isa no we would say the worst Case Scenario is a no deal brexit and if we crash up is a no deal brexit and if we crash up with a no deal brexit we will need more than £3 billion and it could be a cost we can even quantify. Putting some money aside and putting money aside to make sure we dont end up with the nightmare scenario. There is a deal we could get which is mutually beneficial, stop messing around, break the deadlock and get a transition deal in there for good certainty for business in the new year. Thank you forjoining us. The shadow treasury minister for labour, jonathan reynolds. The debate on the budget is going on still in the house of commons but i must say that relatively few members are present in the chamber as we speak because it is having emptied since earlier on when traditionally on budget day the chamber is packed with people standing around the speakers chair and at the entrance to the house of commons. The debate is going on and will go on for some considerable time. Quite a view to backbenchers are there waiting to have their say. Also today we have another Great Development that we want to share with you. Zimbawes former Vice President , Emmerson Mnangagwa, has arrived home in the country, two days before hes due to be sworn in as head of state. He is expected back in the country at any moment. My colleague ben brown is in harare with the latest. Thank you. We have the man who will be the next president of zimbabwe, Emmerson Mnangagwa, who has arrived back from exile in south africa. He flew into a military airbase and is speaking in front of the supporters at zanu pf headquarters here in harare. He is a controversialfigure but will be the next leader of the country and will be sworn in on friday. Some days ago. I received a letter firing me from government of the republic of zimbabwe. Within two hours. Within two hours, i was informed about plans to eliminate me. Realising that. 0n the 12th of august, i was subjected to poisoning which resulted in my being airlifted to south africa. And then i thank you, the people of zimbabwe, for your prayers. Cheering i survived that poisoning. This time around, i say to myself, i should not wait for them to eliminate me. Let me go out and, with you, the people of zimbabwe, make your voice be heard. Today. I feel so humbled that we have remained here until this hour at our headquarters, waiting for me. Yes like you see me and i. Cheering iron and icu. Iam iron and icu. I am seeing you. The executive. The person of our president. Yes. Orders were now coming not from the executive, from people outside the executive, from people outside the executive, in government. But the people of zimbabwe themselves have refused. I think you have read people of zimbabwe themselves have refused. Ithink you have read my letter which i sent to his excellency, asking the president mugabe and saying, mr president , the people have spoken. You yourself said if the people say, i must step down, you shall comply. This is time to comply. Cheering the voice of the people is the voice. Today we are witnessing the beginning of a new unfolding democracy of our country. I wish also to thank the manner in which our Defence Forces handle the leadership. Cheering they have been able to manage this process very peacefully. I was process very peacefully. Iwas in process very peacefully. I was in Constant Contact with the executives chiefs throughout. And i will say that i had discussions with some will say that i had discussions with some heads of state, including spending today, about. A former president. They have hailed the discipline and the peacefulness of the people of zimbabwe. They are saying the way we have managed this process makes people proud not only on this continent but worldwide. I thank my beliefs. I thank my colleagues. They, systematically, constitutionally, processed the process which led to a point where the former president mugabe signed to say, i now step down. Cheering he is now the former president of the republic of zimbabwe. Cheering i. I, with Great Respect and humility, and profound gratitude to my colleagues in the committee, and the manner in which they constitutionally recessed the resolutions which persuaded this moment to come by. Cheering apparently. Also. I will make my formal speech on friday around ten oclock. I also wish to mention the manner in which the speaker of parliament handled the speaker of parliament handled the process. He was under tremendous pressure from the powers that were at the time, but he stood with his constitutional rights. I applaud him for that. The intention to derail this process, that intention was intense, but as he said, the will of the people will always, always succeed. He speaks own language cheering he speaks own language crowd chants along cheering i thank myself to be your servant. I appeal to all genuine patriotic zimbabweans to come together. We will work together. Yes. No one is more important than the other. We are all zimbabweans. We wa nt other. We are all zimbabweans. We want to control our economy. We want a piece of our economy. We wantjobs and homes. Cheering we need also the cooperation of our neighbours and the continent of africa. We need the cooperation of our friends outside the continent. Then we shall achieve this, with messages received and support. Messages of cooperation and support. He speaks own language cheering he speaks own language remarkable scenes live in harare in zimbabwe where the former Vice President has been speaking to the crowds, and he is due to be sworn in as president was in barbary in a couple of days. He was in south africa, going there after he was sacked, fleeing for his life as his supporters were playing, the events which led to the eventual resignation of robert mugabe. And there you have the money was about to ta ke there you have the money was about to take over as the new president of zimbabwe, Emmerson Mnangagwa, delivering his first speech to in harare he was saying, people want jobs in zimbabwe more than anything else. The focus in the munster, will be to see whether he can indeed deliver on some of those promises, but those are the scenes in harare just a few moments ago. Remarkable scenes indeed. Back at westminster, we are still discussing the budget, a sharp downgrading of some of the Economic Growth forecasts. To talk about that, we have the chairman. Thanks for waiting patiently as we saw those remarkable scenes in harare. How concerned should viewers be about the sharp downturn and figures you have predicted . About the sharp downturn and figures you have predicted . Growth in the near term is lower, but we have basically made a judgment that over the next five years, the outlook is not as promising as we thought back in march. The main reason for that as we are more pessimistic about productivity growth. Productivity is the amount of output you get out of every hour of each others works, and that has been growing slowly over the last ten years, barely 0. 2 a year, compared to more than 2 a year, compared to more than 2 a year over the previous 35 to a0 yea rs, year over the previous 35 to a0 years, and has that has gone on, with more explanation is that people have come up with falling by the wayside, we have to place more late on that low number as the likelihood of what is good to happen over the next few years. What is your diagnosis of the reasons for our problem with productivitys diagnosis of the reasons for our problem with productivitysm diagnosis of the reasons for our problem with productivitys if you went back a few years, people would have said it is because the Financial System is in a mess after the financial crisis, banks are not managing to get money to the companies that need it to grow rapidly. As the crisis gets further into the distance, that looks less convincing, people are saying that Business Investment is weaker than it should be, low Interest Rates are allowing firms to struggle on for a longer than the otherwise would do. There are reasons to predict growth to pick up, as Skilled Labour gets harderfor to pick up, as Skilled Labour gets harder for firms to pick up, as Skilled Labour gets harderforfirms to find, to pick up, as Skilled Labour gets harder for firms to find, they will be forced to be more productive. As Interest Rates rise, that also provides a bit of a nudge to firms to do that as well. Some say, we have had three industrial revolution, that is your lot, we are not good to get any meaningful productivity growth going forward. We are saying, the best thing to do is be halfway between the big performance of the last decade and the stronger performance before, but there is huge uncertainty about this. It is key to how well off we are as a society. When you look at the money and resources the chancellor has set aside, the uncertainty that still exists around the wrexham process, how could that impact on the picture being painted todays brexit process. Impact on the picture being painted todays brexit process. The uncertainty about where exactly we are going to end up on brexit is pa rt are going to end up on brexit is part of that, perhaps not the most important part, but our forecasts arent based on any particular view as to where we are going to end up in the brexit negotiations, we have no meaningful way of predicting that. We have made some broadbrush assumptions a year ago and we are pretty much sticking with those. But it is another big uncertainty. When we look at the longer term picture, in terms of Capital Investments, and the way that that can impact on the wider economy, what does todays budget tellers in that area . Week investments and week productivity growth are associated, but which causes the other is not particularly straightforward. Weaker. The chancellor is obviously on top of a wea ker growth chancellor is obviously on top of a weaker growth which is impatience on public finances. There is some extra money for Capital Investment in there. Capital investment is rising sharply over the next few years in the Public Sector, adjusted for inflation, whereas day to day spreading on the Public Sector is being squeezed rather more. We were talking about nhs pay, for example, today. Is the government really devoting the kind of resources to that which will change the picture in terms of wider public spreading . How significant is that as a factor . Two issues here, the amount of money that departments are to spend and the freedom they have an giving people bigger pay increases or not. What we have sinned that pay growth in the Public Sectors likely to get back to the sort of rates you have seenin back to the sort of rates you have seen in the private sector more quickly. What we have assumed. That means that the money for Public Services stretches over fewer people, some have less general Government Employment over the next few years, because it is being spread more than that. Good to talk to you, thank you. Given that he was responsible for the forecasts today, it was good to doctor him and get his thoughts. Good to talk to him. Judith moritz is at the Christmas Market in manchester. I have been particularly interested in talking to those under the age of 30 today. I have two of them with me now. The abolition of stamp duty for First Time Buyers on properties up to £300,000, what do you make of that . Excellent news, i am saving up for a house and you have to take into account stamp duty, and it is quite a significant amount. It will encourage people to buy houses, and it will make it easier for people like me who are keen to get on the property ladder quite young. You are 2a years old, so it is pretty unusual these days to get on the property ladder this early. Totten amongst your friends as well, do you think this chris wood to be a big deal . It is something you definitely have to take into account, it is quite significant, so it will probably encourage more younger people to get into the property murky. And for you, we are talking about buying houses, but you said it feels like a long way off for you . About buying houses, but you said it feels like a long way off for you . |j imagine that being about 30 myself, we are in quite different financial situations. But it could maybe be something now, i have also wanted to get there, but im happy for people like him, it is an exciting time for those of us under 30. Some of the other measures in the budget which we be attractive to your age group, the Young Persons railcard expires at the age of 2a, it will now be extended. Will that help you . think so, i had one when i was 17, and you all must have it in your mind that it will not be there forever, so to have it for another few years is nice. And here in manchester, there is one area which is good to being flooded in a pilot to get extra money to tackle homelessness. Is that something which you want . Yes, anyone from manchester, we have a homelessness problem, and it is awful to see people on the street especially during the cold weather. So anything to prove improve that is excellent news, i hope it works. The alcohol duty has been frozen as well, the fuel duty, i dont know if you drive, but those measures across all age groups, what is your view . The fuel, definitely, owning a car one of the most expensive things is fuel. I drive to work everyday and i go through like nothing, so that will definitely be good. And for you, what would you like to see to help people your age group . You are 22, what do you really think would be the most helpful thing for you financially to give you that extra push . I think that a lot of people, my friends and myself are struggling with, we have all been to university and we are now stuck in the stopgap jobs, so Work Experience would be helpful, but unfortunately we cant do it because of our situation. Anything that can help those with jobs, think that is quite a big issue at the moment. One of the new measures is more money to improve maths teaching in schools, more Computer Science and technical help. Is that something which you think is, for your generation, really important . I think it is important, and also that the arts arent completely ignored. But i can imagine that there are struggles in all areas, definitely. Mixed reviews from these two, thank you very much, i will let you get back to the bratwu rst. I will let you get back to the bratwurst. But having spoken to a range of people in manchester, particularly about the housing issue, they welcomed the idea infa nts issue, they welcomed the idea infants at all about the abolition of stamp duty for First Time Buyers, but there are other issues that they face. Lots of people in their 20s, they think that owning a home still feels like a long way off for them. Judith, many thanks. Here at westminster, simon, business reaction to the budget, how would you describe it . Businesses do not like budgets very much, because when the chancellor tinkers with something, they have to change all their rules. It is more about what he didnt do than what he did do, he did not lower the threshold at which you have to become vat registered. He did not abandon the Corporation Tax rate of 17 , so generally they will be pleased, but what this has laid bare as the fact that our companies are not as productive as they should be, which is hampering long term Economic Growth. Some government money has been pumped in through the infrastructure and Productivity Investment Fund, and there was little new reason for businesses themselves to invest, because they are saying, at the end of the month, at the end of the money, theres too much month left, andi money, theres too much month left, and i cannot extra investment. Increasing capital allowances, exempting businesses, all these Little Things they could have done, they did not, so i think that. He did not step on any banana skins or landmines, but this is a pretty impact landmines, but this is a pretty im pa ct less landmines, but this is a pretty impact less budget on the business community. Has it changed the business landscape at all . community. Has it changed the business landscape at all . I think you are right about the banana skins, and the conservatives have said there are no major mistakes. After last time, the bar has been set pretty low no majority in that, anything controversial, it is good to be voted down by his own side. Look what happened last time, the pressure of the national insurance. So you have to look at various issues that i problem, like universal credit, he has dealt with that to an extent. Brexit, he is under pressure from brexiteers who think he is too gloomy about the future. They are critical of the growth forecast, they thought that Philip Hammonds demeanour was a little less gloomy than before. They liked that he is putting money aside now, £3 billion to deal with brexit. They say that that shows he is ready to go into everything and prepare for everything. The nhs, probably just about enough. Can ijust add to that . Two weeks ago, he was saying i dont want to put money aside for brexit, because it might not happen. Today he is definitely saying, we are serious about that contingency planning. But overall, borrowings and to be about £a0 billion higher over this period than we thought it would be back in march. Borrowing is going to be. He had a get out of jail free is going to be. He had a get out of jailfree card, if is going to be. He had a get out of jail free card, if things get rocky going through the brexit process, the question is, did he spend that today . Wouldnt he have every right today . Wouldnt he have every right to be gloomy when he sees the wavy or br has sharply reduced the growth forecast . 0br. Or br has sharply reduced the growth forecast . Obr. Productivity gains of 2 have been commonplace, but the last ten years they have been less than 1 . The value of stuff you can make and services you can deliver per worker per hour, it is just not going up. He needs to cut its businesses to say, i will take on a new machine, invest in some new processes , new machine, invest in some new processes, and they are feeling a bit under the cosh and do not feel they need all the ability to do that. And there is an uncertainty around brexit. The chancellor cannot inoculate the entire economy around brexit concerns. He was keeping some powder dry, and some people will say he spent a lot of that today. Are you saying that the chancellor is basically in a stronger position with his backbenchers tonight done this morning . I think so, having spoken to some of the brexiteers as well. They were not overly enthusiastic, but they said it was all right. He is now addressing the so called 1922 all right. He is now addressing the so called1922 committee. There have been reports of buying of desks, so outside, he was getting a very good reception. Those conservative mps do not want a general election, but it is interesting that brexit is still what they are talking about in such a crucial time before the december summit. Ithink a crucial time before the december summit. I think that is the moment when, you look at the negotiation, putting aside £3000 £3 billion, thatis putting aside £3000 £3 billion, that is important for the people in brussels as well. Thanks to both of you. Lets keep on the budget theme business team, because im good to talk to a businesswoman south london. Ido i do not think it will affect is a huge amount. A lot of the things that have been said about reduced productivity, we have been trying to combat those by diversifying. We have Just Launched a new company which will sell off the peg bikes, thatis which will sell off the peg bikes, that is solid and have a more competitive product alongside our bespoke bikes. In terms of economic policy, support for business, and the kind of measures that business normally calls for, including Business Rates, what is your sense of the chancellors message to a business like yours . I think more things could be done to help, the Business Rates thing is something thatis Business Rates thing is something that is a worry for hours because it makes our costs go up. And i think one of our Biggest Challenges is actually finding affordable and adequate industrial space in london, we are currently split across three different sites because we cannot find anything suitable, but we are just trying to find something. More help for finding industrial space would be helpful, or reducing rates, or at least not putting them up. We have heard a lot today about uncertainty, and that everybody wa nts uncertainty, and that everybody wants certainty in terms of the way that Business People make decisions. Within this brexit context, which obviously brings its own uncertainty, does that affect you . Does it affect your kind of planning for the next few years . does it affect your kind of planning for the next few years . I think it probably makes is a bit more cautious. But we have been quite lucky it has not affected us so far. I guess also, with those trying to diversify, we try to pre empt any reduction in growth or in business. We are trying to have things ready to offer to our customers that are more competitive and will help us ride out any potential storm. So to help viewers a little more, you saying that as a businesswoman now with the kind of industry that you are in, argued more optimistic after this budget or less . Argued more optimistic . I dont know. Im quite optimistic . I dont know. Im quite optimistic normally, so i think it has not been a great budget for hours, but i think we will come out of it ok anyway, because we will just work hard and itll be fine. Caren hartley, thank you for talking to us today. She runs a business in South East London and sounds relatively optimistic at least. To get more on what all of this means, our business presenter rachel home has more. Balance the books. That is was the chancellors aim, so did he deliver . Lets start with the deficit. That is the difference between the amount of money the government brings in through taxes, and the amount it spends running the country. Now, back in march, the 0br, the official government watchdog, predicted that this is how the deficit would pan out. With the government borrowing up to £58 billion this year, and then that figure falling as the years go on, down to almost £17 billion in 2022. Todays update from 0br gave some good news for 2017, what borrowing actually coming in more than £8 billion less than expected, then continuing to fall. But look at this its not falling by as much as was predicted back in march. Now, one easy way for any chancellor to bring down the deficit is through a robust growing economy. In march, the 0br predicted that the uk would grow by 2 in 2017, but today, that figure has been revised down to 1. 5 , falling to 1. 3 by 2019 before inching back up to 1. 6 in 2022. Is that robust enough . Lets ask the city. It doesnt, it actually moves the uk from being a leader amongst the g7 at the back end of 2016 to now being a laggard. And the important backdrop to this is the fact that the rest of the worlds gdp growth is accelerating over the period, as a lot of the repair from the financial crisis goes through, growth accelerate the eurozone and the us, and actually the uk is going in the opposite direction, so we expect sterling to be under pressure as people look at that difference in the trajectory and conclude the uk is not a place where they want to hold assets. So whats the problem . Well, part of it is productivity. Productivity is the measure of how much stuff we can make. The more people produce, the more their employers can pay them, the more taxes the government can collect, and the more disposable income we have to spend. But the uk has a serious productivity problem. Before the financial crisis, productivity growth averaged at 2 a year. After the financial crisis, that average dropped to 0. 2 . Until today, the 0br had consistently predicted that productivity will pick up back to precrisis levels. But today, they have downgraded productivity growth, predicting 0. 9 for this year, rising to 1. 2 in 2022. This is something that was looking well overdue, the 0br have been stubbornly expecting productivity to pick back up to where we were the financial crisis, and thats just clearly not happening. So at least these figures have a little more semblance of reality about them. It is still a conundrum and it is still a problem for the bank of england and for the economy as a whole, the fact that productivity is so low, and i think that isjust a reflection ofjobs that have been created in the economy. So, productivity and gdp growth both downgraded. The chancellor is still cutting the deficit, but six months on from the last 0br report, he has got a lot less wiggle room. Im joined by Political Editor of the guardian, anushka asthana, and anne mcelvoy, Senior Editor at the economist. Is Philip Hammond writes to say that he is not too gloomy about the figures . He cannot really go round as chancellor saying, we are all doomed and it is at least in part to doomed and it is at least in part to do with the uncertainty about how growth will look after brexit. He knows that the brexiteers cabinet have picked up on it. He did a steady tone on that, and i noticed that he put that hard up against technology. He obviously thinks there is a big problem with uk productivity, the figures you have been discussing bear that out. It is a big worry that it is not getting better. Things are going to have to change, he is trying to signal that to the party and to the country. If you look at the fact that our forecasts were coming down just as germany has been revising its forecasts upwards, that doesnt look promising. On growth, anushka, is that the main theme of this budget, would you go with the issue around First Time Buyers . Lots of tory mps are happy with the stamp duty initiative, but as the main thing for you growth . At the end of this speech, there were two main things. One of the things was the growth figures which were much worse than people were expecting. At the end, the stamp duty thing, it sounded very good, although as always happens with budgets, the devil is in the detail, and it did start to unravel somewhat, because a suggestion that perhaps actually all that would happen his house prices would increase, the people who would benefit are not necessarily those First Time Buyers. So often it is the case that the story evolves afterwards, whenjournoss the case that the story evolves afterwards, when journoss get the case that the story evolves afterwards, whenjournoss get hold of the red book and can get hold of the money is coming from. Is it fair to use word unravelling . Prices could go up a bit. It is perfectly reasonable to point out that these are unintended consequences, but thatis are unintended consequences, but that is true across the piece. I think an unravelling is when the figure really doesnt stand up, that has happened before and Labour Governments. And some of George Osbornes budgets, it happens. The Housing Market is more difficult. That kind of tweak is likely to benefit some people more than others. But prices will only rise if the market will bear the prices rising. And there is some sign on the market that things are grinding toa the market that things are grinding to a halt. Some people might like to raise their prices to offset the stamp duty release but it is not possible, they cannot sell, in which case some people will be helped. Certainly it is not transformative and that is the problem with this budget, lots of little pieces. It is like watching one of those jigsaws that you put together over the long holidays, you can see the shape of it, but it does look like one small measure after another. And that is what i wanted to put to both of you, anushka first of all. Is this the budget that you think change is the kind of Political Landscape we are in, or does not do that . Exchanges at in that people thought his days might be numbered in number. Three gaffes in one Television Programme on sunday, not looking great, and everyone said, one more mistake and he has gone. He has not come up with any clangers. Walking around the house of commons, most tory mps are nodding appreciatively, happy with universal credit and stamp duty moves. They are happy with housing overall. It is enough, and it was actually very important that he gave that positive sounding outlook, however bad the growth figures actually were. No clangers is not a great ambition, is it . No, but it depends how kleiner prodi government has been. So the reason they looked relatively happy is, there will be lots of poking into what he is promising, and rightly so. They were expecting something worse in terms of raids along the line, pensions saving vehicles, so they dont think it has put a cat among the pigeons on that. It seemed like a competent performance. Theresa may, did not look as though she could invent a scratch or chancellor from scratch, she would choose him, but as far as we could see today, not any big mistakes. Thanks to both of you for your analysis. We are now getting ready for the weather, but we will have a quick look at the victoria tower above the southern sentence here at westminster. That is the home of the parliamentary archive, looking splendid this evening. Now lucy with todays weather. Bright in the south east today, but wet and windy elsewhere. Strong winds forecast for this evening and some heavy rain, so some tricky driving conditions ahead. Moving through the night, windy throughout england and wales. Outbreaks of rain moving eastwards, some heavy bursts in there. In the moving north into scotland, that will turn to snow for northern and central parts of scotland. Cold in the north, temperatures falling close to freezing. Starting the day tomorrow with some snow for north and central scotland. It will be around two to five celsius. Rain turning more patchy throughout the day. Scattered showers in northern ireland, Northern England and wales. Best of the dry weather in the south, ice of 14 the dry weather in the south, ice of 1a celsius. Highs of 1a celsius. An upbeat chancellor delivers his budget but against the backdrop of a slowing economy. Philip hammond made some eye catching give aways despite productivity being down and growth forecasts reduced. A britain we can be proud of, a country fit for the future. I know we will not build it overnight, but in this budget today we will lay the foundations. They call this a budget fit for the future. The reality is, this is a government no longer fit for office. Stamp duty for First Time Buyers on properties up to £300,000 will be scrapped except in scotland experts are warning it could put house prices up. Well bring you all the details of the budget and who are the winners and losers. Also tonight shouting
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