Ministers questions. It is always a little different, the pmqs ahead of the budget. He has vacated the chair for the Deputy Speaker. She will be going through some of the notices ahead ofjeremy hunt, the chancellor, delivering his Budget Statement. He will take to his feet shortly and will probably speak for about an hour shortly and will probably speak for Aboutan Hourand shortly and will probably speak for about an hour and then it will be the turn of the leader of the opposition, keir starmer to respond. We will take both of those live and uninterrupted and we will then have reaction from the Chief Secretary to the treasury, laura trott, part of the treasury, laura trott, part of the Treasury Team and her shadow for labour. Here isjeremy hunt. Madam Deputy Speaker, as we mourn the loss of life in israel and gaza, the loss of life in israel and gaza, the Prime Minister reminded us of the Prime Minister reminded us of the need the Fight Extremism and heal divisions. I start today by remembering the muslims who died in two world wars in the service of freedom and democracy. We need a memorial to honour them and following representations from one member, i have decided to allocate £1 million to the cost of building one. Whatever yourfaith £1 million to the cost of building one. Whatever your faith or colour or class, this country will never forget the sacrifices made for our future. In recent times the uk and the uk economy has dealt with a financial crisis, a pandemic, and an energy shock caused by war in europe. Yet, despite the most challenging economic head winds in modern history, under conservative governments since 2010 growth has been higher than every large european economy. Unemployment has halved. Absolute poverty has gone down. And there are 800 more people injobs for every single down. And there are 800 more people in jobs for every single day that we have been in office. Of course, Interest Rates remain high as we bring down inflation. But because of the progress we have made, because we are delivering the Prime Ministers economic priorities, we can now help families notjust with temporary cost of living support, but with permanent cuts in taxation. We do this to give much needed help in challenging times. But also because conservatives 5 lower taxes mean higher growth. And higher growth means more opportunity, more prosperity and more funding for our precious Public Services. But if we want that growth. The chancellor has hardly said want that growth. The chancellor has hardly said anything. Want that growth. The chancellor has hardly said anything. Order. I want that growth. The chancellor i has hardly said anything. Order. You cant has hardly said anything. Order. You cant get has hardly said anything. Order. You cant get excited has hardly said anything. Order. You cant get excited yet has hardly said anything. Order. You cant get excited yet now, has hardly said anything. Order. You cant get excited yet now, other. Cant get excited yet now, other people cant get excited yet now, other peorrte want cant get excited yet now, other peorrte want to cant get excited yet now, other people want to hear cant get excited yet now, other people want to hear what cant get excited yet now, other people want to hear what the people want to hear what the chancellor people want to hear what the chancellor has people want to hear what the chancellor has to people want to hear what the chancellor has to say. People want to hear what the chancellor has to say. So people want to hear what the chancellor has to say. So we i people want to hear what the i chancellor has to say. So we will have chancellor has to say. So we will have a chancellor has to say. So we will have a Hit Chancellor has to say. So we will have a Hit Of Chancellor has to say. So we will have a bit of good chancellor has to say. So we will have a bit of good behaviour,. Have a bit of good behaviour, please have a bit of good behaviour, please. Chancellor. Have a bit of good behaviour, please. Chancellor. Have a bit of good behaviour, please. Chancellor. Have a bit of good behaviour, lease. Chancellor. ,. ,. ,. , please. Chancellor. Thank you madam deu please. Chancellor. Thank you madam Deputy Speaker please. Chancellor. Thank you madam Deputy Speaker if please. Chancellor. Thank you madam Deputy Speaker. If we please. Chancellor. Thank you madam Deputy Speaker. If we want please. Chancellor. Thank you madam Deputy Speaker. If we want that Deputy Speaker. If we want that growth, to lead to higher wages and higher Living Standards, for every family in every corner of the country, it cannot come from unlimited migration. It can only come by building a high wage, high skill economy. And that is the difference with the Party Opposite. Their plans destroyjobs, reduce opportunities and risk Family Finances with spending that pushes up finances with spending that pushes up taxes. Instead of going back to square one, the policies i announce today mean more investment, more jobs, Better Public Services and lower taxes in a budget for long term growth. I start with the updated forecast from the obr, which i thank Richard Hughes and his team. First inflation. When the Prime Minister and i came to office it was 11 . The latest figures show. I know the Party Opposite. This is not amusing know the Party Opposite. This is not amusing any know the Party Opposite. This is not amusing any more. Know the Party Opposite. This is not amusing any more. We know the Party Opposite. This is not amusing any more. We need l know the Party Opposite. This is | not amusing any more. We need to hear what not amusing any more. We need to hear what the not amusing any more. We need to hear what the chancellor not amusing any more. We need to hear what the chancellor has not amusing any more. We need to hear what the chancellor has to not amusing any more. We need toi hear what the chancellor has to say. I can hear what the chancellor has to say. I can tell hear what the chancellor has to say. I can tell who hear what the chancellor has to say. I can tell who is hear what the chancellor has to say. I can tell who is making hear what the chancellor has to say. I can tell who is making the hear what the chancellor has to say. I can tell who is making the noise i i can tell who is making the noise and you i can tell who is making the noise and you simply i can tell who is making the noise and you simply wont i can tell who is making the noise and you simply wont get i can tell who is making the noise and you simply wont get a i can tell who is making the noisei and you simply wont get a chance i can tell who is making the noise. And you simply wont get a chance to speak and you simply wont get a chance to speak later and you simply wont get a chance to speak later. That and you simply wont get a chance to speak later. That is and you simply wont get a chance to speak later. That is the and you simply wont get a chance to speak later. That is the end and you simply wont get a chance to speak later. That is the end of and you simply wont get a chance to speak later. That is the end of it. Speak later. That is the end of it. Chancellor speak later. That is the end of it. Chancellor chancellor. Thank you. When the Prime Minister chancellor. Thank you. When the Prime Minister and chancellor. Thank you. When the Prime Minister and i chancellor. Thank you. When the Prime Minister and i came chancellor. Thank you. When the Prime Minister and i came to chancellor. Thank you. When the i Prime Minister and i came to office, inflation was 11 . It is now li , more than meeting our pledge to half it last year. Todays forecasts from the obr show it falling below the 2 target in just a few months time. Nearly a whole year earlier than forecast in the Autumn Statement. That didnt happen by accident. Whatever pressures and whatever the politics, a conservative government working with the Bank Of England will also put sound money first. But we also understand that tackling inflation while necessary is painful. It means higher Interest Rates and a period of lower growth. So we have given the average household £3,400 in cost of living support over the last two years. Doing so makes economic as well as moral sense. The obr predicted income would fall by 2 in the last year. Instead after this support, it is on track to rise by 0. 8 . Today i take further steps to help families with cost of living pressures. Starting with measures to help the poorest families. We have already abolished higher charges for electricity paid by those on Prepayment Meters and raised benefits by double expected inflation. Today i focus on those falling into debt. Nearly one million households on universal credit take out budgeting advance loans to pay for emergencies like boiler repairs. To help make loans more affordable i have increased the Repayment Period from 12 to 24 months. I thought they cared about people on the lowest incomes . But trust the labour party not to want to hear about debt. For some people, the best way to resolve debt is through a debt relief order. But getting one cost £90 which can deter the very people who need them most. Having listened to representations from citizens advice, i today relieve pressure on around 40,000 families a year by abolishing the £90 charge. Next the Household Support Fund. It was set up on a temporary basis and due to conclude at the end of this month. Having listened carefully to representations from the Joseph Rowntree foundation and the Trussell Trust and members i have decided with the battle against inflation still not over, now is not the time to stop the targeted help it offers. We will continue it at current levels for another six months. Next, i turn to a measure that will help businesses and households more broadly. In the Autumn Statement i prose alcohol duty i froze alcohol duty until august. Without any action today it would have been due to rise by 3 . But i have listened to my right honourable friends and my honourable friend from moray. I also listened to Councillorjohn Tonks from ash, a supporter of admiral pub, who pointed out the pressures facing the industry. Today i have decided to extend the Alcohol Duty Freeze until february 2025. This benefits if 38,000 pubs across the uk and on top of a £13,000 saving a typical pub will get from the 75 Business Rates discount i announced in the autumn. We value our Hospitality Industry and are backing the Great British pub. Another cost that families and businesses worry about is fuel. The Shadow Chancellor complained about the freeze on fuel duty and labour has opposed it at every opportunity. The labour mayor of london wants to punish motors more with his ulez plans. But lots of families and sole traders depend on their car. If i did nothing, fuel duty would increase by i3 this month. So instead i have listened to my right honourable friends for Stoke On Trent North and others, as well as the Sun Newspapers keep it down campaign. I have as a result decided to maintain the 5p cut and freeze fuel duty for another 12 months. This will save the average car driver £50 next year and bring total savings since the 5p cut was introduced to around £250. This also reduces Headline Inflation by 0. 2 percentage points, making us make faster progress to the Bank Of Englands 2 target. There can be no solid Growth Without solid finances. An economy based on sound money does not pass its bills to the next generation. When it comes to borrowing, some believe there is a trade off between compassion and fiscal responsibility. They are wrong. It is only because we responsibly reduce the deficit by 80 between 2010 and 2019 that we could provide £370 billion to help businesses and families in the pandemic. The Party Opposite opposed our plans to reduce the deficit every single step of the way. But in fairness, they were consistent. The Liberal Democrat supported controlling spending in coalition, but now say they would support a party that would turn on the spending tap. It is the difference between no plan and no principles. Im delighted the honourable gentleman from the Liberal Democrats was here to hear it for once today, we Say Something different. There is nothing compassionate about running out of money. With the pandemic behind us we must be responsible and build up our resilience to future shocks. That means bringing down borrowing to start reducing our debt and todays Figure Confirm that is happening. Ahead of the Autumn Statement in 2022 the obr forecast debt would rised to 100 of gdp. They say it will fall to 94 . Underlying debt, which excluding Bank Of England of debt will be 91. 7 , then 92. 8 . 93. 2 . Before falling to 92. 9 in 28,29 91. 7 , then 92. 8 . 93. 2 . Before falling to 92. 9 in 28, 29 with debt falling to 92. 9 in 28, 29 with debt falling of 8. 9 billion. That will meet Ourfiscal Rules falling of 8. 9 billion. That will meet our fiscal rules and we continue to have the Second Lowest level of government get in the g7, lower than japan, level of government get in the g7, lower thanjapan, france or level of government get in the g7, lower than japan, france or the lower thanjapan, france or the United States and we meet our rule for borrowing to be below 3 gdp three years ago. It falls to 3. 1 , 2. 7 and 1. 2 in 2028. By the end of forecast, borrowing is at its lowest level of gdp since 2001. None of that would be possible if labour implemented their pledge to decarbonise the great five years early by 2030. By their own calculations that cost £28 billion a year to do but last month, after Flip Flopping four months, they said they are not going to spend £28 billion after all but somehow they will meet their pledge. Somehow can only mean one thing, tax rises on working families, today in contrast, a conservative government brings down taxes with. Down taxes borrowing a conservative government brings down taxes borrowing is slightly lower than the Autumn Statement. And the fact that we are bringing borrowing down is something of particular importance to one very special person, the outgoing Chief Executive of the governments Debt Management office and after 20 years of Exceptional Public Service he is in the gallery. Thank you, sir robert. I now turn to growth. The ab expected gdp to four by 1. 4 but it grew, albeit slowly. Now the obr expects the economy to grow by 0. 8 this year and 0. 5 higher than the autumn forecast. After that, growth rises to 2. 2 , 1. 8 and 1. 7 in 28. Since 2010, they dont want to hear this but these are the facts. Since 2010 we have grown faster than germany, france or italy, the three largest european economies and according to the imf we will continue to grow faster and all three of them in the five years ahead. Surveys by lloyds and deloitte shows Business Confidence is returning. In other words because we have turned the corner on inflation, we will soon turn the corner on brake and todays obr forecast also shows we have made Good Progress on the Prime Ministers three economic priorities. Inflation has halved, debt is falling in line with our fiscal rules and growth is 1. 5 higher than predicted. And as growth returns, they dont have a growth plan so they might as well listen to ours. As growth returns, our plan is for economic growth, not sustained through migration but one raises wages and Living Standards for families. Notjust higher gdp but higher gdp per head which means sticking to our plan with a budget for long term growth, more investment, morejobs, Better Public Services and lower taxes. And i start with investment. Economists say that stimulating investment is the most effective way to raise productivity and therefore wages and Living Standards. Since 2010, weve been doing just that. You might want to listen to what im about to say. Shouting. Because Business Investment has risen from an average of 9. 3 of gdp under labour to 9. 9 under the conservatives. And this year it will be 10. 6 of gdp. That is £30 billion more Business Investment than if it had continued at labour levels. And its still going up. Initial period since the Autumn Statement nissan announced they would build two electric car models in the uk, microsoft and google have announced Data Centres Worth over £3 billion. Thanks to my right honourable friend the business secretary, the Global Investment summit unlocked £30 billion of investment. In fact, since 2010 greenfield Foreign Direct Investment has been higher than anywhere else in europe and for the last three years weve been the third highest in the world after the us and china. And we are not stopping there. In the Autumn Statement i announced we would introduce a £10 billion tax cut for businesses that gives the uk the most attractive Investment Tax Regime of any large european or g7 country. It was welcomed by over 200 business leaders. The cbi saying it was a game changer and the single most transformational thing we could do to fire up the british economy. Today i take further steps to boost investment. Having listened to calls from the cbi investment. Having listened to calls from the cb and the bcc, will shortly publish draft legislation, a change i intend to bring in as soon as its affordable. Well also help Small Businesses as well as the business rate support, ill provide £200 million of funding to extend the Recovery Loan Scheme as it transitions to the growth guarantee scheme, helping 11,000 sme patients access the finance they need. And following representations from the federation of Small Businesses as well as honourable members, i will reduce the administrative and Financial Impact of that by increasing the Vat Registration Threshold from £85,000, the £90,000 from april the 1st, the first increase in seven years. That will bring Tens Of Thousands of businesses out of paying vat altogether and encourage many more to invest and grow. I now move to measures to address historic underinvestment in our nations and regions. Since we started levelling up. Shouting. Since we started levelling up in 2019, and two thirds of all new salaried jobs have been created outside of london and the south east. Weve announced 13 Investment Zones and I2 Freeports Which continue to attract investment including recently, thanks to the efforts of the mayor. 15 million is being invested into the tees valley investment zone, today working with the Levelling Up Secretary id evolve further power to local leaders who are best placed to promote growth in their areas. I can announce the Northeast Trailblazer devolution deal providing a package of support for the region potentially worth over £100 million. Ill devolve powers to buckinghamshire, warwickshire and to the most beautiful county in england, surrey. Isee the most beautiful county in england, surrey. I see the leader of the opposition smiling because like me he is a surrey boy. I know hes been taking advice from lord Mandelson Who yesterday rather uncharitably said he needed to shed a few pounds, ordinary families will shed more than a few pounds if that lot get in. If he wants to join me if he wants tojoin me on my Marathon Training he is most welcome as well. Today we continue to spread opportunity by allocating hundred million of Levelling Up Fund to areas including dundee, conway, redditch and coventry to support cultural projects in these communities, alongside support for Capital Projects across the country including in bingley. We are expanding the Long Term Plan for towns to 20 new places including darlington, home of the treasurys Fantastic Darlington economic campus, coleraine, peterhead, runcorn, harlow, providing each with £20 million of funding to invest in Community Regeneration over the next decade. Will provide £50 million in new funding to the West Midlands combined authority to support culture, heritage and investment projects on the recommendation of alan go getting there andy street. And will allocate 5 million to local Village Halls across england so they can remain at the heart of their communities. Because this is a Conservative And Unionist government, we will also set aside funding to support the spaceport in shetland. An agri food launch pad in mid wales and funding to support Northern Irelands businesses to expand global trade investment opportunities. As a result of the decisions we take to gain the Scottish Government will receive nearly £300 million in barnett consequentials, with nearly £170 million for the Welsh Government and 100 million for the Northern Ireland executive. I do appreciate that a Tax Cutting Budget is very uncomfortable for the biggest tax rises in the uk. Tax rises. We also want to level up opportunity across the generations, including building more houses for young people and we are on track to deliver over 1 people and we are on track to deliver over1 million homes in this parliament. Last week the levelling up parliament. Last week the Levelling Up Secretary allocated £188 million to support projects in sheffield, blackpool and liverpool and today i go further allocating £242 million of investments in Barking Riverside and canary wharf, which together will build nearly 8000 houses as well as transforming canary wharf into a new hub for Life Science Companies. We are launching a new £20 Million Community led Housing Scheme supporting local communities to deliver the developments they need and im pleased to announce the next steps for cambridge to reach its potential to be the worlds leading scientific powerhouse. I confirm there will be a long term Funding Settlement for the future Development Corporation cambridge with over 10 million invested in the coming year to unlock delivery of crucial local transport and health infrastructure. The final levelling up infrastructure. The final levelling up measures i announced today support north wales where i have many happy childhood memories, following representations we will help fund the renovation of the theatre and i can announce this week theatre and i can announce this week the government has reached agreement on a £160 million deal with hitachi to purchase the site in ennis in south gloucestershire. It has a vital role in delivering our Nuclear Ambitions and no one should take more credit than my tireless, tenacious and turbo charged honourable friend. More Investment Tjy honourable friend. More investment by large businesses, promoting investment in our nations and regions or part of a budget for long term growth that sticks to our plan to deliver more jobs, Better Public Services and lower taxes. I now turn to one of the most powerful ways to attract investment, namely supporting our most innovative industries. Outside the us we have the most respected universities, the biggest Financial Services sector and the largest Tech Ecosystem in europe. We have double the ai start ups of anywhere in europe, double the Venture Capital investment, the tech economy double the size of germany and three times the size of germany and three times the size of france. We are on track to become the worlds next to silicon valley. In the budget for long term growth id take further steps to attract investment into our Technology Related industries. I want our brilliant Tech Entrepreneur is notjust want our brilliant Tech Entrepreneur is not just a want our brilliant Tech Entrepreneur is notjust a start here but to stay here, including when the time comes for a stock market listing. So will build on the edinburgh reforms to unlock more pension fund capital, give new powers to the Pensions Regulator and fca to ensure better value from schemes by dodging performance and overall returns not cost, will make sure there are vehicles to make it easier for Pension Funds to invest in uk Growth Opportunities and im publishing the names of the winners of the lifts competition but i remain concerned on the market such as australia generate better returns for Pension Savers with more effective Investment Strategies and more Investment Strategies and more investment in high quality domestic growth stocks. So, i will introduce new requirements for local government Pension Funds to disclose publicly their level of international and uk Equity Investment and then consider what further action should be taken if we are not on a positive trajectory towards International Best practice. We will proceed with the retail sale of part of the governments remaining natwest shares this summer. At the earliest opportunity, subject to Supportive Market conditions and value for money, we will continue to explore how savers can take their pension pots with them when they change job and make it easierfor people them when they change job and make it easier for people to save with a National Saving bonds, offering savers a guaranteed rate fixed for three years. And today following calls from representatives of the city and our high growth sectors i will reform the isa system to encourage more people to invest in uk assets of a consultation will introduce a new british isa to allow an additional £5,000 annual investment for investment in uk equity with all the Tax Advantages of other isas. This will be on top of other isas. This will be on top of the existing isa allowances, ensure british savers can benefit from the growth of the most promising uk businesses and supporting businesses with the capital to expand. I turn to other growth industries, starting with clean energy. We want nuclear to provide up to a quarter of our electricity by 2050 and as part of they want the uk to lead the global race in developing cutting edge nuclear technologies. Race in developing cutting edge nucleartechnologies. I race in developing cutting edge nuclear technologies. I can therefore announce that Great British nuclear will begin the next face of the small mod you reactor. Our net zero secretary will allocate up our net zero secretary will allocate up to £20 million more to the green Growth Industry for new technology from Off Shore Wind to carbon capture. We will have a new faster connections process to the grid and manufacturing have announced £270 million of investment into new automotive projects, building clean aviation technology. I turn to our Creative Industries. We have become europes largest film and tv Production Centre with people like Orlando Bloom filming here. Studio space has doubled and next year we will be second only to hollywood globally. In the Autumn Statement i committed to provide more tax relief for visual effects in film and high end tv. I can today confirm that we will increase the rate of Tax Credit Tjy will increase the rate of tax credit by 5 and remove the 80 cap for visual effects costs. Having worked with the Culture Secretary and i. Ed i. Listened to film studio. Having heard representations from the british Film Industry pact and the british Film Industry pact and the Prime Minister, we will introduce a new tax credit for uk independent films, with a budget of less than £15 million. For our Creative Industries we will provide £26 million of funding to our pre eminent theatre, the National Theatre to upgrade its stages and today i want to recognise the contribution of our Creative Industries and the tourism that comes from orchestras, museums, galleries and theatres. In the pandemic, we introduced higher 45 and 50 levels of tax relief, which were due to end in march 25. They have been a lifeline for performing arts. Today, in recognition of their vital importance to our national life, i can announce im Making Those Tax Reliefs Permanent at 45 for touring productions and 40 for non touring productions. Lord lloyd webber said this will be a once in a generation transformational change that will ensure britain remains the Global Capital of creativity. I suspect the new theatre reliefs may be of interest to the Shadow Chancellor, who seems to fancy her thespian skills when it comes to acting like a tory. The trouble is we all know how her show ends higher taxes like every Labour Government in history. Im delighted they� re im delighted theyre cheering that Labour Governments always put up taxes. Theyre right. I also want to mention. I want to mention our Life Sciences sector. Where we will support research by medical charities into diseases such as cancer, dementia, and epilepsy, with an additional £45 million, including £3 million for Cancer Research uk. I have long believed we should be manufacturing medicines as well as developing them. So i can today also announce a new investment by one of our greatest Life Science Companies astrazeneca. They made their Covid Vaccine available to developing countries at cost, as a result saving six million lives. Because of government support, they announced plans to invest £650 million in the uk to expand their footprint on the Cambridge Biomedical Campus and fund the building of a vaccine hub in liverpool. More investment, better jobs in every corners of the country in a long term budget for growth from a conservative government. One of the Biggest Barriers to investment is business not being able to hire the staff they need. The economy has 900,000 vacancies. It with 10 million adults of working age not in work. Those who can work should. And this is an issue i have tackled in every budgets and Autumn Statement i have delivered. A year ago i abolished the pensions lifetime allowance that pushed doctors and others to take early retirement ask doct ofs about labours plans and they will say dont go back to square one. In the autumn with the help of our pensions secretary, we announced the back to work plan that will support one million adults with medical conditions by two thirds. A year ago i also announced the biggest ever expansion of child care, extending the 30 hour free child care offer. Just listen. Extending the 30 hour free child offer to all children of working parents from nine months. We have not had a Child Care Plan from labour. You might want to listen to ours. Our plan will mean an extra 60 thousand parents enter the workforce in the next four years. A tremendous achievement for the Education Secretary, who i think is doing a good job. Today, following representations from many people, including the cbi i announced measures to support the sector and make the investment it needs to and i guarantee the rates paid to Child Care Providers for the next two years. That is more people in work, morejobs, sticking to our years. That is more people in work, more jobs, sticking to our plan years. That is more people in work, morejobs, sticking to our plan in a long term budget for growth. I now turn to Public Services. I thought they were supposed to be interested in Public Services . I can wait. Order. A little bit of murmuring is normal order. A little bit of murmuring is normal i order. A little bit of murmuring is normal. I shouldnt order. A little bit of murmuring is normal. I shouldnt be order. A little bit of murmuring is normal. I shouldnt be able order. A little bit of murmuring is normal. I shouldnt be able to order. A little bit of murmuring isl normal. I shouldnt be able to hear what normal. I shouldnt be able to hear what youre normal. I shouldnt be able to hear what youre saying normal. I shouldnt be able to hear what youre saying over normal. I shouldnt be able to hear what youre saying over there. I normal. I shouldnt be able to hear| what youre saying over there. That is out what youre saying over there. That is out of what youre saying over there. That is out of order what youre saying over there. That is out of order. Lets what youre saying over there. That is out of order. Lets have what youre saying over there. That is out of order. Lets have some i is out of order. Lets have some courtesy is out of order. Lets have some courtesy. Chancellor. Is out of order. Lets have some courtesy. Chancellor. Is out of order. Lets have some courtesy. Chancellor. Thank you. Good public courtesy. Chancellor. Thank you. Good Public Services courtesy. Chancellor. Thank you. Good Public Services need i courtesy. Chancellor. Thank you. Good Public Services need a i courtesy. Chancellor. Thank you. L good Public Services need a Strong Economy to pay for them. But a Strong Economy also needs good Public Services. In 2010 schools in the uk were behind germany, france and sweden in the 0ecds education ranks for reading and maths. Now after conservative reforms, we are ahead of them. Burglaries and Violent Crime have halved in the last 14 years, after we invested in 20,000 more Police Officers. Our armed forces remain the most professional and best funded in europe. The Defence Spending already more than 2 of gdp, we are providing more Military Support to ukraine than nearly any other country and our spending will rise to 2. 5 as soon as conditions allow. The nhs is still recovering from the pandemic, but has 42,000 more doctors and 71,000 more nurses than it did under labour. That is 250 more doctors and 400 more nurses for every month that we have been in office. Resources matter of course, which is why despite all the economic shocks we have faced, spending on Public Services has gone up spending on Public Services has gone up since twenty ten. In the case of the nhs by more nan a third. Although spending has continued to rise, Public Sector productivity still remains below prepandemic levels by nearly 6 . This demonstrates that the way to improve Public Services is not always more money or more people, but also need to run them more efficiently. We need a more productive state, not a bigger state. Need a more productive state, not a biggerstate. In need a more productive state, not a bigger state. In autumn 2022, i set day to day spending to increase by 1 a year in real terms over the next parliament. Some say that is not enough. And we should raise spending by more. Others say it is too much and we should cut it to improve efficiency. Neither are right. It is not fair to ask taxpayers to pay for more when Public Service productivity has fallen. Norwould it Public Service productivity has fallen. Nor would it be rise to reduce that funding given the pressures Public Services face. So im keeping the planned growth in day to day spending at 1 in real terms. But we are going to spend it better. So today. Today. They dont have a plan for Public Services. Like everything else. So why not listen to ours . Today, i am announcing a landmark Public Sector Productivity Plan that restarts Public Service reform and changes the treasurys approach to spending. I start with our biggest Public Service the nhs. One of my greatest privileges was to be Health Secretary. Thanks to the nhs, i have three gorgeous children, the oldest of whom has been listening in the gallery. The nhs is rightly the biggest reason most of us are proud to be british. But the systems that support its staff are often antiquated. Doctors, nurses and ward staff spend hours every day filling out forms when they could be. When patients dont show up. I out forms when they could be. When patients dont show up. Patients dont show up. I dont like to interrupt patients dont show up. I dont like to interrupt the patients dont show up. I dont like to interrupt the chancellor. Patients dont show up. I dont like to interrupt the chancellor. Youre| to interrupt the chancellor. Youre too close to interrupt the chancellor. Youre too close to to interrupt the chancellor. Youre too close to me to interrupt the chancellor. Youre too close to me to to interrupt the chancellor. Youre too close to me to be to interrupt the chancellor. Youre too close to me to be shouting i to interrupt the chancellor. Youre| too close to me to be shouting that loudly too close to me to be shouting that loudly if too close to me to be shouting that loudly if you too close to me to be shouting that loudly. If you want too close to me to be shouting that loudly. If you want to too close to me to be shouting that loudly. If you want to shout too close to me to be shouting that loudly. If you want to shout that i loudly. If you want to shout that loudly, loudly. If you want to shout that loudly, you loudly. If you want to shout that loudly, you should loudly. If you want to shout that loudly, you should sit loudly. If you want to shout that loudly, you should sit up loudly. If you want to shout that loudly, you should sit up there. | loudly. If you want to shout thati loudly, you should sit up there. I apologise loudly, you should sit up there. I apologise for loudly, you should sit up there. I apologise for interrupting loudly, you should sit up there. I apologise for interrupting the i apologise for interrupting the chancellor apologise for interrupting the chancellor. Chancellor . Apologise for interrupting the chancellor. Chancellor . When atients chancellor. Chancellor . When patients dont chancellor. Chancellor . When patients dont show chancellor. Chancellor . When patients dont show up, i chancellor. Chancellor . When patients dont show up, or i chancellor. Chancellor . Whenl patients dont show up, or one member of a team is still Operating Theatres are left empty, despite long Waiting Lists. When we published the workforce plan, i asked the nhs to put together a plan to transform its efficiency and productivity. And i wanted better care for patients, more Job Satisfaction for satisfy and better value for taxpayers. Making changes on the scale we need is not cheap. The investment needed to modernise nhs it systems so theyre as good as the best in the world, costs £3. 4 billion. But it helps unlock £35 billion. But it helps unlock £35 billion of savings, ten times that amount. So in todays budget for long term growth i have decided to fund the nhs Productivity Plan in full. With that new investment we will slash the 13 million hours lost by doctors and nurses every year to outdated it systems. We will cut down and potential half form filling by doctors using ai. We will digitise Operating Theatre processes allowing the same number of consultants to do an extra 200,000 operations a year. Well Fund Improvements to help doctors read mri and ct scans more accurately and quickly, speeding up results for 130,000 patients every year and saving thousands of lives, something i know would have delighted my Brother Charlie who i recently lost to cancer. We will improve the nhs app to cancer. We will improve the nhs app so it can be used to confirm and modify all appointments, app so it can be used to confirm and modify allappointments, reducing app so it can be used to confirm and modify all appointments, reducing up to half a million missed appointments annually and improving patient choice. Well set up a new nhs staff up to make it easier to roster electronically. And as a result of this funding, all hospitals will use electronic Patient Records making the nhs the largest digitally integrated Health System in the world. This announcement doubles the amount the nhs is investing on Digital Transformation over three years and on top of this longer term transformation will also help the nhs Meet Pressures in the coming year with an additional £2. 5 billion. This will allow the nhs to continue its focus on reducing Waiting Times and brings the total increase in funding since the start of parliament to 13 in real terms. The nhs was there for us in a pandemic in today with nearly £6 billion of additional funding a conservative government to spare for the nhs. Is there for the nhs. Amanda prichard today says this investment shows the government continues to back the nhs. She says as a result the nhs can connect to delivering 1. 9 annual Productivity Growth over the next parliament, or than double the average in Public Services between 2010 and 2019. Todayis services between 2010 and 2019. Today is notjust about services between 2010 and 2019. Today is not just about the services between 2010 and 2019. Today is notjust about the nhs. I want this Ground Breaking agreement with the nhs to be a model for all our Public Services across education, the police, the courts and local government. I want to see more efficient, better value and Higher Quality Public Services. Today i can announce that in the next Spending Review the treasury will do things differently. We will prioritise proposals that deliver annual savings within five years equivalent to the total cost of the investment required. Today we make a start with some excellent proposals. Violence reduction units and hotspot policing have prevented an estimated 136,000 knife crimes and other violent offences, as well as over 3000 hospital admissions. Violent offences, as well as over 3000 hospitaladmissions. Every 3000 hospital admissions. Every crime 3000 hospitaladmissions. Every crime costs money so we will provide 75 million to roll that model out in england and wales. Police officers waste around eight hours a week on unnecessary admin with higher productivity we could free the equivalent of 20,000 Police Officers over a year. So we will spend £230 million rolling out time and money saving technology, which speeds up Police Response times by allowing people to report crimes by video call and where appropriate use of drones as first responders. To many legal cases particularly in family law should never go to court and it would cost us less if they didnt. So will spend £170 million to fund non court resolution, reduce reoffending and digitise the court process. Too many children in care end up being looked after by unregistered providers that are much more expensive, so will invest £165 million over the next four years to reduce that cost by increasing the capacity of the childrens homes estate. Special educational need provision can be excellent when outsourced to independent sector schools but also expensive. So will invest £105 million over the next four years to build 15 new special free schools. To create additional high quality places and increase choice for parents. Well also put in place a plan to realise the tens of billions of savings recommended in an excellent speech by the head of the National Audit office. The obr say a 5 increase in Public Sector productivity will be the equivalent of around 20 billion in extra funding. With these plans we can deliver that and more. And if we make sure they are cash releasing savings, it will be possible to live with more constrained spending without cutting services. So, with the energy and drive of my talented Chief Secretary to the treasury we launch our Public Sector Productivity Planning todays budget for long term growth, more investment, morejobs, Better Public Services and one more thing, lower taxes. Shouting. Keeping taxes down matters to conservatives in a way it never can for labour. We believe that in a free society the money you earn doesnt belong to the government, it belongs to you. And if we want to encourage hard work we should let people keep as much of their own money as possible. Conservatives look around the world at economies in north america, asia, and noticed that countries with lower taxes generally have higher growth. Economists argue about cause and correlation but we know that lower taxed economies have more energy, more dynamism and more innovation and we know that is britains future too. Before i explain how we will bring down taxes, i start with some measures to make a system simpler and fairer. To discourage nonsmokers from taking up vaping we are introducing excise duty on vaping products and publishing a consultation on its design. Because vapes can also play a positive role in helping people quit smoking, will introduce a one off increase in tobacco duty to maintain the financial incentive to choose vaping over smoking. An increase air Passenger Duty on non economy flights only and provide hmrc with the resources they need to make sure everyone pays the tax owe, leading to an increase in revenue of over 4. 5 billion. Next i turned to property taxation. In recent months following tenacious representation from the honourable members forcing hostel and uk, from the honourable members forcing hosteland uk, north from the honourable members forcing hostel and uk, north devon, cities of london and westminster, torbay and truro and falmouth, i have been looking closely at our furnished Holiday Lettings tax regime. Im concerned its creating a Distortion Meaning there are not enough Properties Available for long term rental by local people. So to make the Tax System Work better for local communities, and going to abolish the furnished Holiday Letting regime. Ive also been looking at stamp duty relief for people who purchase more than one dwelling in a single transaction known as multiple dwellings relief. I see the Deputy Leader of the labour party paying close attention because of her multiple dwellings. Shouting. Order order too much excitement. We havent order order too much excitement. We havent actually heard because we cant hear we havent actually heard because we cant hear what the chancellor is trying cant hear what the chancellor is trying to cant hear what the chancellor is trying to say. I can hear who is shouting. Trying to say. I can hear who is shouting, you wont get to speak later shouting, you wont get to speak later. Chancellor. I� m shouting, you wont get to speak later. Chancellor. Later. Chancellor. Im sorry to disappoint later. Chancellor. Im sorry to disappoint her later. Chancellor. Im sorry to disappoint her but later. Chancellor. Im sorry to disappoint her but multiple i disappoint her but multiple dwellings relief is not actually designed for her. But intended to. Shouting. It was intended to support investment in the private rented sector but an external evaluation found no strong evidence it had done so and that it was being regularly abused. So im going to abolish it. And finally, as part of this budget, both the treasury and the obr have looked at the costs associated with our current levels of Capital Gains tax on property. They have concluded that if we reduced the higher 28 rate that exists for residential property, we would in fact increase revenues because there would be more transactions. Forthe revenues because there would be more transactions. For the first time in history by the treasury and obr had discovered their inner. Laffer curve. So today im going to reduce a higher rate of property Capital Gains tax from 28 to 24 . That really is for you, angela. Shouting. Order. Ive had enough from either there. Order. Ive had enough from either there, definitely not having it from here there, definitely not having it from here. Chancellor. | there, definitely not having it from here. Chancellor. Here. Chancellor. I now turn to oil and as. Here. Chancellor. I now turn to oil and gas. Unlike here. Chancellor. I now turn to oil and gas. Unlike the here. Chancellor. I now turn to oil and gas. Unlike the party here. Chancellor. I now turn to oil. And gas. Unlike the Party Opposite, we want to encourage investment in the north sea so we will retain generous Investment Allowances for the sector. We also legislate in a finance bill to abolish the Energy Profits levy, should Market Prices faulted the historic norm for a sustained period of time after representations. Because the increase in Energy Prices caused by ukraine war is expected to last longer, so too will do sectors windfall profits. So i will extend the sunset on the Energy Profits levy for an additional year to 2029, raising £1. 5 billion. Next i can to the taxes paid by those who are resident in the uk but not domiciled here for tax purposes. Shouting. This is a category of people known as non doms. Nigel lawson wanted to end the non dom regime in 1988, which is where i suspect the Labour Party Got the idea from. I too have always believed that provided we protect the uks attractiveness to international investors, those with the broadest shoulders should pay theirfair share. After the broadest shoulders should pay their fair share. After looking at their fair share. After looking at theissue their fair share. After looking at the issue over many months, ive concluded that we can indeed. Shouting. We can indeed introduce a system which is both fair and remains competitive with other countries. So, the government will abolish the current tax system for non doms, get rid of the outdated concept of non domicile, and i aim to please all sides of the house in all my budgets. And we will replace. All my budgets. And we will replace all my budgets. And we will replace. All my budgets. And we will relace. , , replace. Order, order. This is impossible replace. Order, order. This is impossible. Order replace. Order, order. This is impossible. Order could i replace. Order, order. This is impossible. Order could you l replace. Order, order. This is i impossible. Order could you please shout impossible. Order could you please shout more impossible. Order could you please shout more quietly . Shout more quietly . Laughter thank you. Shout more quietly . Laughter thank you, madam shout more quietly . Laughter thank you, madam deputy i shout more quietly . Laughter i thank you, madam Deputy Speaker. Shout more quietly . Laughter thank you, madam Deputy Speaker. We will replace the non dom regime with a fairer residency based system. From april 25, new arrivals will not be required to pay any tax on foreign income and gains for their first four years of uk residency, a more generous regime than at present and one of the most attractive offers in europe. But afterfour years, dating continue to live in the uk will pay the same tax as other uk residents, recognising the contribution of many of these to our economy we will put in place transitional arrangements for those benefiting from the current regime. That will include a two year period in which individuals will be encouraged to bring wealth and overseas to the uk, where it can be spent and invested here, a measure that will attract onshore and additional £15 billion of foreign income and generate more than £1 billion of extra tax. It will raise 2. 7 billion a year by the end of the forecast period. That is money the Party Opposite plan to use for spending increases, but today a conservative government makes a different choice. We use that revenue to help cut taxes on working families. And many of those families depend on Child Benefit. But the way we treat Child Benefit in the tax system is confuzzing and unfair. It is a lifeline for many parents. Because it helps with the additional cost associated with having children and when it works it is good for children, good for parents and good for the economy, because it helps people into work. But we withdraw Child Benefit when one parent earns over £50,000. So two parents earning £49,000 a year receive the benefit a full. But a household earns less does not if one earns over £50 thousand ,000. This requires reform the tax system, we will move it to a household based system to be introduced by april 2026. But because that is not a quick fix, i make two changes today to make the Current System fairer. Following representations from my honourable friends from scots bridge, basset law and West Worcestershire and many others, i confirm from this april, the high income Child Benefit charge threshold will be raised from 50,000 to 60,000. We will raise the top of the taper at which it is withdrawn to 80,000. That means no one earning under 60,000 will pay. Because of the higher taper and threshold, nearly half a million families with children will save an average of £1,300 next year. According to the obr this will see an increase in hours amongst those already working to the equivalent of 10,000 more people entering the worse force. More investment, morejobs, Better Public Services and lower tax. There is one further set of changes i want to make today. The way we tax peoples income is particularly unfair. If you get your income from having a job, you pay two types of tax. National insurance and income tax. National insurance and income tax. If you get it from other sources you pay only one. This Double Taxation of work is unfair. The result is a complicated system that penalises work instead of encouraging it. If we are to build a high wage, high skill economy, not dependent on migration and encourage people to come back to work, we need a simpler, fairer tax system that makes work pay. That is why i cut National Insurance contributions in the autumn. By reducing the penalty on work, the obr said that tax cut would lead to a equivalent of 94,000 people in work. Lower taxes, more jobs and higher growth. Today, because of the progress we have made bringing down inflation, because of the additional investment that is the additional investment that is the flowing into the economy, because we have a plan for better and more efficient Public Services, and more efficient Public Services, and because we have asked those with the broadest shoulders to pay a bit more. ~ ~ , the broadest shoulders to pay a bit more. ~ ~ , more. Order. Mr perkins i can manage. More. Order. Mr perkins i can manage. Thank more. Order. Mr perkins i can manage, thank you more. Order. Mr perkins i can manage, thank you very more. Order. Mr perkins i can manage, thank you very much. L more. Order. Mr perkins i can i manage, thank you very much. Five times manage, thank you very much. Five times i manage, thank you very much. Five times i have manage, thank you very much. Five times i have heard manage, thank you very much. Five times i have heard what manage, thank you very much. Five times i have heard what you manage, thank you very much. Five times i have heard what you have i times i have heard what you have said times i have heard what you have said i times i have heard what you have said itet times i have heard what you have said i let you times i have heard what you have said. I let you away times i have heard what you have said. I let you away with times i have heard what you have said. I let you away with it. Times i have heard what you have said. I let you away with it. Now. Said. I let you away with it. Now that is said. I let you away with it. Now that is enough. Said. I let you away with it. Now that is enough. One said. I let you away with it. Now that is enough. One more said. I let you away with it. Now that is enough. One more strike said. I let you away with it. Now that is enough. One more strike and youre that is enough. One more strike and youre out that is enough. One more strike and youre out i that is enough. One more strike and oure out . ,. ,. ,. , youre out i do know how hard it is for them to youre out i do know how hard it is for them to listen youre out i do know how hard it is for them to listen to youre out i do know how hard it is for them to listen to arguments i youre out i do know how hard it is for them to listen to arguments forj for them to listen to arguments for lower taxes. For them to listen to arguments for lowertaxes. But for them to listen to arguments for lower taxes. But that is the difference. Because we have asked those with the broadest shoulder to pay more, today can go further. From april employee National Insurance will be cut by another 2p from 10 to 8 . And self employed National Insurance will be cut from 8 to 6 . It means an additional £450 a year for the average employee or £350 for someone self employed. When combined with the Autumn Reductions it means 27 million employees will get an average tax cut of £900 a year. Two million self employed will get a cut averages 6350. 650. Changes that grow our economy by rewarding wok. When come. It will mean 200,000 more people in work, filling one in five vacancies, adding 0. 4 to gdp and 0. 4to vacancies, adding 0. 4 to gdp and 0. 4 to gdp for head. It is the second is fiscal event where we have reduced National Insurance and cut it by a third in six months. Without increasing borrowing. And without cutting spending on Public Services. That means the average earner in the uk now has the lowest personal tax rate since 1975. Their taxes are lower than in america, france, germany, orany lower than in america, france, germany, or any g7 country. Because conservatives believe that making work pay is of the most fundamental importance, because we believe that the Double Taxation of work is unfair, our long term ambition is to end this unfairness. When it is responsible, when it be achieved without increasing borrowing, when it can be delivered without compromising Public Services, we will continue to cut National Insurance so we make work pay. We stick to our plan with a budget for long term growth, delivering investment, jobs, Better Public Services and lower taxes. But dynamism in an economy doesnt come from ministers, but from the grit and determination of people who take risks, work hard, and innovate, not government policies, but people power. It is to unleash people pow that are we put this country back on the path to lower taxes. A plan to grow the economy versus no plan. A plan for Better Public Services, versus no plan. A plan to make work pay, versus no plan. Growth up. Jobs up. Taxes down. I commend this statement to the house cheering and applause studio jeremy hunt has just sat down. After more than an hour of that budget speech. He confirmed that budget speech. He confirmed that we expected in term of a further 2p cut in National Insurance. We will go more of the detail of what he unveiled in a moment. But soon, the shadow, the leader sorry of the opposition, keir starmer, will stand up and give his response to what we have just heard. In fact there was really pretty well nothing that hadnt been trailed before this budget today. Everything that was a announced byjeremy hunt we had heard about. But there was more detail on an nhs Productivity Plan. There maybe questions why that hadnt come in beforehand. He said the money that will be invested in it and ai would make savings of 35 billion and the increase in public spending is to stay. There had been concerns that increase might be reduced. You can see Dame Eleanor Laing the Deputy Speaker trying to resume order before keir starmer stands up and gives his response. Throughoutjeremy hunt pointedly said that under any Labour Government, taxes the always went up. But even with these cuts in National Insurance, 2pn Autumn Statement and another 2p announced today, theover all tax burden is still expected to go up, because of the continuation of the freezing of tax thresholds. When people earn more they get dragged into a higher tax threshold. So the main measures, 2 pence reduction in National Insurance. Day to day spending increase kept at 1 above inflation. Windfall on oil and gas extended. Non nom status to be abolished. He has a different regime to put in place. A Child Benefit salary threshold is increased. Lets see and go through some of the others. The tax on vapes, they are part of the measures to raise money to fund the measures to raise money to fund the tax cut. Fuel and Alcohol Duty Freeze is extended. There is the announcement from jeremy hunt about some of the changes he is going to make and reforms he is going to make to get more meme back into work. It was seen as one of the the biggest issues he wanted to tackle. He said the National Insurance cut would put 94,000 people back into work in the autumn and this cut today would result in 200,000 more people into work and that would lead to an improvement in growth. Now, interestingly, there is a division it looks like in the House Of Commons that Dame Eleanor Laing has allowed. So there quill will be a pause before we hear from the labour leaderer. I dont know if we can go into the chamber to see what is happening. But we will keep an eye on that and see what is happening. Chris, i dont know exactly what has caused Eleanor Laing to call a division. But mps are dispersing from the house. Unless there was a Point Of Order that resulted in it. Im trying to establish what happened. Eleanor laing was gesticulating. Clearly there is more than usual. Im gesticulating. Clearly there is more than usual. �. , than usual. Im hearing it is the snp that have than usual. Im hearing it is the snp that have forced than usual. Im hearing it is the snp that have forced a than usual. Im hearing it is the snp that have forced a vote i than usual. Im hearing it is the snp that have forced a vote on| than usual. Im hearing it is the i snp that have forced a vote on the first budget resolution. Normally these things are a formality and there is a brief change over from there is a brief change over from the end of the chancellors statement on the budget before we hear the leader of the opposition. But they have managed to force a vote. So we will have to keep across xa is happening. That will delay hearing from keir starmer. We will get the details of what the snp have decided to call a vote on and when we can, we will talk about it. But first of all, a response . It was a long statement. In which the chancellor announced pretty well everything that we had predicted. There were better growth figures. And he talked about borrowing coming down more quickly than perhaps had been forecast. And very importantly, the spending on Public Services, that 1 is staying. What did you make of it . That 1 is staying. What did you make of it . That is a key points, there was make of it . That is a key points, there was a make of it . That is a key points, there was a lot make of it . That is a key points, there was a lot of make of it . That is a key points, there was a lot of discussion i make of it . That is a key points, l there was a lot of discussion about there was a lot of discussion about the prospect of the spending being pencilled in going down from a figure that already plenty felt was unrealistic, particularly for the departments without any prodebgs. Tection. That is different from what we were anticipating. And then i think particularly if you only caught the last 10 minutes of the statement you got the two sides of ledger. You got the Tax Raising Measures across different chunks of economy. Depending on be your interests lie. The duty on vaping, rise in tobacco duty, posh seats on planes costing more and Capital Gains tax on property. All adding up roughly to something that allows the chancellor to argue that he can sustainably reasonably and responsibly afford a second 2p cut in National Insurance to match the one in the Autumn Statement. But where there was some expectation that he might go further, perhaps with an extra penny there on income tax, that didnt happen. So in summary there is a huge amount of detail, but in Headline Terms what we have been talking about in the last couple of days what we have since heard in the last hour. In terms of the state of the economy, itsjust in terms of the state of the economy, its just interesting watching jeremy hunt stand there, getting into all the detail that he could intensive pockets of money going here, getting there, its so clear that this is an Election Year and possibly the last budget, there may be another fiscal event but the last budget and there was no big surprise at the end. Last budget and there was no big surprise at the end. There wasnt an bi surprise at the end. There wasnt any big cut surprise at the end. There wasnt any big cut to surprise at the end. There wasnt any big cut to National Surprise at the end. There wasnt any big cut to National Insurance | surprise at the end. There wasnt l any big cut to National Insurance is significant any big cut to National Insurance is significant. There has been some criticism significant. There has been some criticism in significant. There has been some criticism in some quarters about the Closeness Criticism in some quarters about the closeness with which mr hunt has developed the budget with the obr. You can developed the budget with the obr. You can see why he did it. They have given you can see why he did it. They have given him you can see why he did it. They have given him significant credit, its almost given him significant credit, its almost like some of the policies were almost like some of the policies were designed to get that credit. For example, this cut in National Insurance, for example, this cut in National Insurance, its quite something to say that insurance, its quite something to say that its insurance, its quite something to say that its going to create 200,000 more jobs, say that its going to create 200,000 morejobs, its going say that its going to create 200,000 more jobs, its going to bump 200,000 more jobs, its going to bump up 200,000 more jobs, its going to bump up growth by 0. 4 of the economy bump up growth by 0. 4 of the economy, definitely take that. He had quite economy, definitely take that. He had quite a bad hand in terms of the fact recession was called a month before fact recession was called a month before his fact recession was called a month before his budget and youve got the turn in before his budget and youve got the turn in terms of borrowing costs. So, turn in terms of borrowing costs. So. What turn in terms of borrowing costs. So, what hes done is hes tried to focus so, what hes done is hes tried to focus on so, what hes done is hes tried to focus on measures that get some return focus on measures that get some return in focus on measures that get some return in the economy. Hes also sought return in the economy. Hes also sought to return in the economy. Hes also sought to address this issue about a blank sought to address this issue about a blank set sought to address this issue about a blank set of Spending Plans. He hasnt blank set of Spending Plans. He hasnt filled in those details but hes come hasnt filled in those details but hes come up with an argument that al, hes come up with an argument that at, drones hes come up with an argument that al, drones and all sorts of ai, drones and all sorts of automation can mean that you can spend automation can mean that you can spend less automation can mean that you can spend less and that can provide the foundation spend less and that can provide the foundation for permanent tax cuts. Thats foundation for permanent tax cuts. Thats his foundation for permanent tax cuts. Thats his argument, a small estate driven thats his argument, a small estate driven by thats his argument, a small estate driven by technology, therefore smaller driven by technology, therefore smaller taxes. But driven by technology, therefore smaller taxes. Smaller taxes. But politically, chris, is this smaller taxes. But politically, chris, is this going smaller taxes. But politically, chris, is this going to smaller taxes. But politically, chris, is this going to change | chris, is this going to change anything in terms of the governments fortunes . Tory mps going to be cheering this particular budget in terms of what they may need to take to the doorstep . If that 2p cut in National Insurance in the autumn didnt do it, how are they going to make another 2p cut. Its not insignificant, worth perhaps £900 a year but will it change anything politically . The fear from a change anything politically . The fear from a lot change anything politically . Tue fear from a lot of change anything politically . Tte fear from a lot of conservative change anything politically . Tt2 fear from a lot of conservative mps was that such as the political and economic backdrop that he couldnt possibly do anything that would fundamentally shift the dial. I think whats interesting is you could make an argument that says hes rerunning the Autumn Argument around National Insurance and if it didnt leave the dial politically then why would it this time. There is a doubling of the cut. So, maybe it will, maybe it can. It will, maybe it can. Also, he said he was going it will, maybe it can. Also, he said he was going to it will, maybe it can. Also, he said he was going to continue it will, maybe it can. Also, he said he was going to continue to i it will, maybe it can. Also, he said he was going to continue to cut i he was going to continue to cut National Insurance. He he was going to continue to cut National Insurance. He was going to continue to cut National Insurance. He so clearly at the end there National Insurance. He so clearly at the end there how National Insurance. He so clearly at the end there how the National Insurance. He so clearly at the end there how the chancellor. National insurance. He so clearly at i the end there how the chancellor and the end there how the chancellor and the conservatives are trying to frame and shape what they see as the distinguishing differences between themselves and the labour party as far as political instinct is concerned, while also trying to raise some awkward questions for labour. Because weve heard, and i think will have it confirmed from keir starmer, that labour will back those cuts in National Insurance. So, when they make an argument about the conservatives leaving a tricky situation for them economically, they are making choices now about what they going to back and what they are not and in so doing will have to make choices down the track as a result of the trade off there. Pauljohnson is with us from the Institute For Fiscal Studies. Welcome. One of the things you said recently was that if there were any more cuts, tax cuts, cuts to National Insurance, you would want to see where they were going to be in public spending. We heard today that hes going to keep that 1 increase pencilled in. Did you get any further sense of where the axe might fall . Any further sense of where the axe miaht fall . , ,. ,. , might fall . No. The 1 a year increase in might fall . No. The 1 a year increase in public might fall . No. The 1 a year increase in public spending i might fall . No. The 1 a year increase in public spending doesnt sound too bad but given what we know will happen to health spending, Defence Spending and childcare spending, that will mean quite big cuts in everything else. Theres other things that got cut last time around. Police, justice, all those kind of things which are struggling. So, what we got again today was tax cuts today paid for by some incompletely uncertain Spending Plans for the future. He did talk about Public Sector productivity but he seemed to be suggesting he could find 20 billion worth of savings. Well see whether that is feasible. Im sceptical. He well see whether that is feasible. Im sceptical well see whether that is feasible. Im sce tical. ,. ,. , im sceptical. He said an investment of nearly 35 im sceptical. He said an investment of nearly 3. 5 billion im sceptical. He said an investment of nearly 3. 5 billion for im sceptical. He said an investment of nearly 3. 5 billion for 35 im sceptical. He said an investment of nearly 3. 5 billion for 35 billion i of nearly 3. 5 billion for 35 billion i thought he said of savings, in the future at some point. The i thought he said of savings, in the future at some point. Future at some point. The nhs definitely needs future at some point. The nhs definitely needs investment i future at some point. The nhs definitely needs investment in | future at some point. The nhs i definitely needs investment in it and so on. One of the reasons its productivity has collapsed over recent years as it hasnt had that kind of investment over the last decade or more. Its it systems dont need to be world class, Theyjust Need to be world class, Theyjust Need to be adequate, that would be a good start. He need to be adequate, that would be a aood start. ~ need to be adequate, that would be a aood start. , ~. , good start. He talked about turning the corner on good start. He talked about turning the corner on inflation good start. He talked about turning the corner on inflation and good start. He talked about turning the corner on inflation and the i the corner on inflation and the figures back that up. We are turning a corner. He said, in order to turn the corner soon or we will soon turn the corner soon or we will soon turn the corner soon or we will soon turn the corner on growth. An admission that obviously economy is in recession at the moment after two negative quarters at the end of last year. Negative quarters at the end of last ear. � ,. ,. , � , negative quarters at the end of last ear. 2. ,. , � ,. , year. Its worth than its worse than that year. Its worth than its worse than that because year. Its worth than its worse than that because on year. Its worth than its worse than that because on a year. Its worth than its worse than that because on a per i year. Its worth than its worse | than that because on a per person basis will be getting poorer for two years not two quarters because the population has been growing while growth has been stagnant. It looks like the obr is forecasting a bit of growth this year and then some more growth this year and then some more growth into the future. So theyve handed him a slightly better Growth Outlook but that reduced inflation in some ways is bad news for him because it means less money coming in and its actually the sort of cache size of the economy that matters and thats one reason why his fiscal headroom at the end of the parliament is a bit worse. Fries. The parliament is a bit worse. Yes, is sli. Htl the parliament is a bit worse. Yes, is slightly less. The parliament is a bit worse. Yes, is slightly less. He the parliament is a bit worse. Yes, is slightly less. He did the parliament is a bit worse. Yes, is slightly less. He did list the parliament is a bit worse. Yes, is slightly less. He did list some of the things hes going to do in terms of increasing taxes, raising money perhaps to partly fund this 2p cut, the tax on vapes which we expected and also getting rid of some of the tax relief for people with holiday lets. There was something on air Passenger Duty. Is this going to add up to enough in terms of funding what has been billed as a £10 billion cut . Those toaether billed as a £10 billion cut . Those together arent billed as a £10 billion cut . Those together arent enough billed as a £10 billion cut . Those together arent enough and i billed as a £10 billion cut . Those | together arent enough and thats why hes sort of lost 5 billion in headroom at the end. He is paying for some of it simply by having more debt or a smaller reduction in debt than he intended at the end of the period. Some of the numbers there are quite uncertain. Exactly how much will get from non doms we dont know but its only a couple of billion in any case. It know but its only a couple of billion in any case. Know but its only a couple of billion in any case. It is still the question. Billion in any case. It is still the question, will billion in any case. It is still the question, will people billion in any case. It is still the question, will people feel billion in any case. It is still the | question, will people feel better off . Will they feel better off having received if youre working another 2p off your National Insurance when overall a predicted forecast overall tax burden is still set to go up . For forecast overall tax burden is still set to go up . Forecast overall tax burden is still setto cou . ,. ,. ,. , set to go up . For people on average earninas, set to go up . For people on average earnings. In set to go up . For people on average earnings. In the set to go up . For people on average earnings, in the sort set to go up . For people on average earnings, in the sort of set to go up . For people on average earnings, in the sort of 25 set to go up . For people on average earnings, in the sort of 25 to earnings, in the sort of 25 to £50,000 range, you take those 4p in total of national they will be better off after this april in tax terms, simply in terms of personal tax. They have lost from the income tax. They have lost from the income tax rises but theyve gained more from National Insurance cuts. People on lower earnings will be worse off and people on higher earnings will be worse off but if you in total, the obr have got a Chart Showing what they think is going to happen to overall average incomes are still going to be no higher at the end of this parliament and at the beginning. That is pretty remarkable. The obr have got more optimistic than they were in the autumn but they are still not suggesting we will be any better off at the end of this year than at the end of 2019. At the end of this year than at the end of 2019 at the end of this year than at the end of 2019. He at the end of this year than at the end of 2019. He talked, i end of 2019. Faisal . He talked, liven end of 2019. Faisal . He talked, given what end of 2019. Faisal . He talked, given what we end of 2019. Faisal . He talked, given what we reported end of 2019. Faisal . He talked, given what we reported before l end of 2019. Faisal . He talked, i given what we reported before about the growth of gdp per capita as well as gdp, the growth of gdp per capita as well as gdp, he the growth of gdp per capita as well as gdp, he said its going up and its pretty as gdp, he said its going up and its pretty balanced this year but then it its pretty balanced this year but then it does go up. Whats happened is that then it does go up. Whats happened is that the then it does go up. Whats happened is that the forecasters had started to believe is that the forecasters had started to believe we are going to get back to believe we are going to get back to relatively normal rates of growth after next to relatively normal rates of growth after next year, just under 2 . That does after next year, just under 2 . That does a after next year, just under 2 . That does a lot after next year, just under 2 . That does a lot for after next year, just under 2 . That does a lot for him. And it may be changes does a lot for him. And it may be changes the tone about the next parliament. Going through the numbers, parliament. Going through the numbers, weve got the red budget becky, numbers, weve got the red budget becky, weve weve got the blue obr forecast becky, weve weve got the blue obr forecast there. As you expect, a giveaway forecast there. As you expect, a Giveaway Budget with the giveaway front loaded, surprise surprise for this year front loaded, surprise surprise for this year ahead of an election, £14 billion this year ahead of an election, £14 billion giveaway in the next year and tapers down to 12, nine, seven, then and tapers down to 12, nine, seven, then 6 and tapers down to 12, nine, seven, then 6 billion and tapers down to 12, nine, seven, then 6 billion at the end of the forecasts then 6 billion at the end of the forecasts. So the overwhelming stories forecasts. So the overwhelming stories that further cuts to National Insurance. One of the suspicions i had about this budget is whether suspicions i had about this budget is whether immediately after it finished. Is whether immediately after it finished, whether if he really wanted finished, whether if he really wanted to make a big statement and there was wanted to make a big statement and there was a wanted to make a big statement and there was a directional steer that he wanted there was a directional steer that he wanted to cut National Insurance even more. That maybe theres another even more. That maybe theres another fiscal statement, space for another another fiscal statement, space for another fiscal statement, space for another fiscal statement, space for another fiscal statement, the forecast another fiscal statement, the forecast getting a bit better. I think forecast getting a bit better. I think paul would argue you shouldnt spend think paul would argue you shouldnt spend an think paul would argue you shouldnt spend an increase in the forecast but immediately ahead of an election, may be a month or two ahead election, may be a month or two ahead of election, may be a month or two ahead of an election, may be a month or two ahead of an election, maybe thats where ahead of an election, maybe thats where we ahead of an election, maybe thats where we are heading. Will ahead of an election, maybe thats where we are heading. Where we are heading. Will talk about the timing. Where we are heading. Will talk about the timing. He where we are heading. Will talk about the timing. He is where we are heading. Will talk about the timing. He is keir about the timing. He is keir starmer. About the timing. He is keir starmer about the timing. He is keir starmer. ,. ,. , about the timing. He is keir starmer. ,. , , starmer. Thank you, madam deputy seaker. Starmer. Thank you, madam Deputy Speaker there starmer. Thank you, madam Deputy Speaker. There we starmer. Thank you, madam Deputy Speaker. There we have starmer. Thank you, madam Deputy Speaker. There we have it, starmer. Thank you, madam Deputy Speaker. There we have it, the i starmer. Thank you, madam Deputy Speaker. There we have it, the lastl speaker. There we have it, the last desperate act of a party that has failed. Britain in recession, the National Credit cards maxed out and despite the measures today, the highest tax burden for 70 years. The First Parliament since records began to see Living Standards fall, confirmed by this budget today. That is their record, its still their record, give with one hand and take even more with the other. And nothing they do between now and the election will change that. I mean, over 14 years weve seen our fair share of delusion from the Party Opposite. A Prime Minister who thinks The Cost Of Living crisis is starting to ease. An Education Secretary who thinks concrete crumbling on our children deserves gratitude. A former Prime Minister who Still Believes crashing the pound was the right part for britain. And today a new entry in this hall of infamy, the chancellor he breezes into this chamber in a recession and tells the Working People of this country that everything is on track. Prices, what crisis . Or, as the captain of the titanic and the former Prime Minister herself might have said, iceberg, what iceberg . Smiling as the ship goes down, the chuckle brothers of decline, dreaming of santa monica or maybejust a quiet life in surrey not having to sell fund his election. If fund his election. Shouting. If onl it fund his election. Shouting. If only it werent fund his election. Shouting. If only it werent so fund his election. Shouting. If only it werent so serious fund his election. Shouting. |f| only it werent so serious because, the story of this parliament is devastatingly simple. A conservative party stubbornly clinging to the failed ideas of the past, completely unable to generate the growth Working People need and forced by that failure to ask them to pay more and more for less and less. And, as the desperation grows, they taught you not only their reputation for fiscal responsibility but any notion that they can serve the country not themselves. Party first, country second, while Working People pay the price. Food prices are still 25 higher than two years ago. Rents up 10 . An extra £240 a month for a typicalfamily 10 . An extra £240 a month for a typical family remortgaging this year, because they lost control of the economy. They sent Interest Rates through the roof, they made Working People pay. They should be under no illusion, that record is how the british people willjudge todays cuts because the whole country can see exactly what is happening here. They recognise a tory con when they see it, just as they did in november. Give with one hand, take even more with the other. Madam Deputy Speaker, people have been living through this nonsense for 14 years. They know the thresholds are still frozen, dragging more and more people into higher taxes. They know that a tory Stealth Taxes coming their way in the shape of their next council tax bill. The Levelling Up Secretary has told notjust this house but every house in the country hes coming for their council tax. Give with one hand, gove with the other. Most insultingly of all, the british people know the only cause that gets to locked out of is trying to save own skin. Take the desperate move after years of resistance to finally accept labours argument on the non dom tax regime. Has there ever been a more obvious example of a government that is totally bereft of ideas . If theyre sincere in support of this policy, when why did not do it earlier and stand up their their friends, funders and their family . Because if they had followed labours example, 3. 8 extra operations would have taken place by now. 1. 3 million Emergency Dental appointments, three Breakfast Clubs for 4. 5 million children. If instead it is another short term cynical gimmick, then what is the point of them . What is the point of a party thatis them . What is the point of a party that is out of touch, out of ideas and nearly out of road . We saw it last year as well when only labours policy op The Cost Of Living made the difference. For those opposite, now a little down beat about not triumph for social democracy, i say get used to it. Because with this pair in charge it wont be long before they ask you to support the removal of private School Tax Relief as well. But the harder they try with cynical games like this, the worse it will get for them. Because the whole country can see exactly who they are. Fighting for themselves, politics not governing, party first, country second. And because we have campaigned to lower the tax burden on Working People for the tax burden on Working People for the whole parliament, we wont stop now. We will support the cuts to National Insurance today. But i notice this in 2022, when the Prime Minister was chancellor, he made this promise. I can confirm in 2024 for the first time the basic rate of income tax will be cut from 20 to 19 pence. That promise is in tatters today. Of course, we support the fresh investment in the nhs. Although i have to note that the chancellor when he was Health Secretary ten years ago promised to make the Nhs Paperless by 2018. I know the Prime Ministers fondness for elon musk extends to fact checking. So i will say this slowly, labour supports the fuel duty freeze. That is our policy. I look forward to the Prime Minister to acknowledgement of that in coming days. We do ask the chancellor can set out how he will make sure this policy gets passed on to families at the pump . Yet for all the fanfare around the tax measures, that store remains true. Taxes, a 70 year high. An unprecedented hit to Living Standards of Working People. The first time they have gone backwards overs a parliament and they were cheering that today. And the reason is equally simple. There is no plan for growth. How can there be . He can say Long Term Plan all he likes, we see. Well letsjust, say Long Term Plan all he likes, we see. Well lets just, last say Long Term Plan all he likes, we see. Well letsjust, last year, he announced 110 Growth Measures and said we had turned the corner. Where are we now . Britain in recession an economy smaller than when the Prime Minister entered downing street. The Text Book Definition of decline. That is their record. After 14 years, who do they actually think feels better off . Productivity is flat. Mortgage through the roof. House building off a cliff. Worklessness rising and rising. Homelessness never higher. Crime virtually unpunished. Children who cant see a dentist. Sewage in rivers. Seven billion wasted by the Prime Minister on covid fraud alone. 500 million on the Rwanda Scheme that has achieved nothing. A railway line that will never reach our Great Northern cities. It might not even reach central london. Billions for a White Elephant without a trunk. Today we learned taxpayers are picking up the bill for the science ministers libel and all the time one thing that is growing the Waiting Lists in the nhs now nearly 8 million. They have had 14 years. 14 years running out of road. Madam Deputy Speaker, this is is what decline looks like. And the complacency they have shown, it takes your breath away. Britain deserves better than this. Britain deserves better than this. Britain deserves a real plan for growth. An end to 14 years of stagnation. Wealth creation across the whole of the country. Higher Living Standards for Working People. This is the mission we need. But yet again what we have got was the same tired formula, the sticking plasters, the chopping and changing, the party first, with no repudiation of the idea. I think backbencher are owed an explanation. When the chancellor says britain has grown more quickly than countries like germany, they will be shocked to learn it is a sleight of hand and when it comes to the growth that makes the difference to the pockets of Working People their record is worse. In per capita terms or economy has not grown since the First Quarter of 2022. The longest period of stagnation britain has sheen since 1955. In fact the chancellor invited us to look at the figures, the obr says gdp will be three quarters of a per cent lower in 2028 than was forecast in november of last year. That was the number that he said we should watch. Three quarters of a per cent lower in 2028. They can call this a technical recession. But there is nothing technical about working People Living in recession for every second the Prime Minister has been in power. This is the rishi recession. And if the Party Opposites wants to know what is in the chancellors spread sheet it is the chancellors spread sheet it is the record migration they have delivered and that is the record that they must stand on at the election. Because while on these benches we do not demean the contribution of migrants, it is time the Party Opposite was honest about the Party Opposite was honest about the role migration plays in their policy. That is all they have, there is nothing else. No plan to get britain building with a reformed planning system. No ambition to invest in clean british power for cheaper bills and energy security. No inclip nation to move from insecure low paid job and strengthen Employment Rights to make work pay. Where is the urgency on Affordable House something how can think look at britain and not see it is a priority. Neverwill at britain and not see it is a priority. Never will they be able to pose as the party of Home Ownership and aspiration. But given the disaster that has befallen his Child Care Plans, perhaps that is for the best. The cost of child care is a huge challenge for millions. Parents need him to deliver on his promise. It seems the chancellors been taking lessons on marketing from the will he wonka experience in glasgow. All is not as it seems, with just over three weeks to go, he has to come clean. Because parents need to know will they get their entitlement in april or is itjust another of their reckless promises on governing . Headlines over delivery. Promises without plans. Policies that unravel at the First Contact with reality. The lesson that those who have broke our economy cannot be trusted to repair it. The tory Credit Rating is see the row. Zero. It is time for change with labour. And that is what todays budget should have been about. A last chance for the government to show it understands the economic reality of our volatile world. That Global Supply chains can be weaponised by tyrants like vladimir putin. That a sticking plaster approach to investment will cost britain more and that trickle down nonsense means Working People pay the price. It could even have been a moment of contricks, a re contrition and an apology for the chaos they have inflicted on businesses, communities and investors. And yet, still no sustainable industrial strategy. No National Wealth fund. Still no recognition they have left our standing as a country that always keeps its promises in tatters. If they dont like that accusation, then look no further than the grotesque spectacle of ducking their responsibility to the victims of infected blood and horizon scandal. One of the greatest miscarriages of justice, those were the Prime Ministers words two months ago, today just justice ministers words two months ago, todayjustjustice kicked beyond the general election. No, britain can see exactly who they are. And the reality is there is no path to economic stability, no way to a calmer less chaotic politics with the Party Opposite in power. Because chaosis the Party Opposite in power. Because chaos is now their world view. And a mind set that sees our problems as opportunities they can exploit. Whether like the chancellor that is out of desperation or whether like the members for fareham and norfolk, they have no intention of solving them. Fora party they have no intention of solving them. For a party that is weak and divided, the end result is always the same. A vicious down wa spiral, chaos feeding off decline while Working People pay the price. The british people know this will not stop. Five more years and it will only get worse. There will be no change of direction, without a change of direction, without a change of direction, without a change of government. And that leaves britain a nation in limbo. Unable to shake off the tory chaos that dragged us into recession and loaded the tax burden on to the backs of Working People. Britain deserves a government ready to take tough decisions, give our Public Services a cash injection, stick to fiscal rules, fight for the Living Standards of Working People and deliver a sustainable plan for growth. So we say to the chancellor, it is time to break the habit of 14 years, stop the dithering, the delays and confirm may 2nd as the date of the next general election. Because britain deserves better and labour are ready. Studio well the labour leader, keir starmer ending his response to jeremy hunts Budget Statement by throwing down the gauntlet and saying, confirm the date of the general election on may 2nd. In other words an earlier election than we expected. Because the Prime Minister has india kachted indicated it would be to the end of year. Keir starmer has said this government has broken the economy, that Living Standards are lower at the end of this parliament or will be, than at the start. And that the conservatives have left our standing as a country in tatters. Ducking the responsibilities to the victims of the horizon scandal and also the infected blood scandal. And then saying that is why we need a change in government and call the election. Well, until that is called, we welcome laura trott. The headline was very much what we had expected. Another 2 pence cut in National Insurance. You could have used some of the what we call that head room to go into Public Services. Why did you make a different choice and cut National Insurance . Itaste you make a different choice and cut National Insurance . You make a different choice and cut National Insurance . We have seen a hue National Insurance . We have seen a huge amount National Insurance . We have seen a huge amount of National Insurance . We have seen a huge amount of investment National Insurance . We have seen a huge amount of investment in i National Insurance . We have seen a| huge amount of investment in Public Services today, the nhs is getting over £5 billion. This is significant investment and we saw investment through the Public Sector Productivity Programme and in police and what we have done is the taken the public through a difficult time. We spend 400 billion during covid and supporting people through the energy price shock. But we have had to take difficult decisions, because of the plan the economy is turning a corner and we can give Working People back some of their money. Some of their money, the overall tax burden is still going up and we have to be honest with voters and with the electorate. Lets show the graph. Despite what was announced and what was announced in the Autumn Statement, you can see there by 2028, the forecast, the figures from the office for budget responsibility, it will reach record high levels of 31 . Taxes are going up . Because of the steps were taking in its zero point 6 lower. Because of the steps were taking in its zero point 6 lower. Its zero point 6 lower. Overall tax its zero point 696 lower. Overall tax burden its zero point 696 lower. Overall tax burden is its zero point 696 lower. Overall tax burden is rising its zero point 696 lower. Overall tax burden is rising and its zero point 696 lower. Overall tax burden is rising and will i tax burden is rising and will continue to do so . Tax burden is rising and will continue to do so . Think about the individuals continue to do so . Think about the individuals. Weve continue to do so . Think about the individuals. Weve always continue to do so . Think about the individuals. Weve always said i continue to do so . Think about the individuals. Weve always said the | individuals. Weve always said the people with the broadest shoulders we are asking to take most of the burden and we are doing that in order to allow Working People to have a lower tax burden. Someone on the National Living wage, their taxes, their take home pay would be 35 higher than otherwise and thats really important. Distribution impacts are very different. You are aaivin impacts are very different. You are giving back. Impacts are very different. You are giving back. As impacts are very different. You are giving back, as you impacts are very different. You are giving back, as you quite impacts are very different. You are giving back, as you quite rightly i giving back, as you quite rightly said, some of what youve taken away. Because of those tax thresholds, having been frozen over a considerable amount of time, anyone who earns any more money gets dragged into higher rates of tax and they are far bigger across than what you are giving them back in National Insurance cuts. In fact, we looked at some of the figures in the combined effect of the 4 cut on the threshold freezes between 2021 and this april will mean people earning less than 25,000 are worse off. T less than 25,000 are worse off. I think its important we look at this. � ,. Think its important we look at this. The i this. Bit is that true . The average this. Bit is that true . The average earner this. Bit is that true . The average earner has this. Bit is that true . The average earner has the i this. Bit is that true . The i average earner has the lowest effective tax rate now since 1975. People on the National Living wage, they are 35 better off since 2010. If you earn less than £25,000, average wage, you are worse off. So when people are asked, do you feel better off or do you feel worse off . As a result of conservative governments . They dontjust feel worse off, they are worse of. Its worse off, they are worse of. Its not true since worse off, they are worse of. It� s not true since 2010. We did some huge personal, in terms of increasing the basic rate. So that is the difference, because we make those big changes in the tax free threshold at the beginning. Shall those big changes in the taxfree threshold at the beginning. Shall we have a look . Threshold at the beginning. Shall we have a look . Lets threshold at the beginning. Shall we have a look . Lets have threshold at the beginning. Shall we have a look . Lets have a threshold at the beginning. Shall we have a look . Lets have a look i threshold at the beginning. Shall we have a look . Lets have a look at i have a look . Lets have a look at that graph again. Tax as a percentage of gdp. Since 2010. Taxes have gone up. Percentage of gdp. Since 2010. Taxes have gone up have gone up. Yes, i agree in terms ofthe have gone up. Yes, i agree in terms of the overall have gone up. Yes, i agree in terms of the overall tax have gone up. Yes, i agree in terms of the overall tax burden. Have gone up. Yes, i agree in terms of the overall tax burden. Id have gone up. Yes, i agree in terms of the overall tax burden. Id be i of the overall tax burden. Id be very clear, we had to make some difficult decisions, we spent 400 billion during covid, we have to pay that back, that is a fundamental conservative principle. We had to do things i feel uncomfortable doing. They continuing to go up rate things i feel uncomfortable doing. They continuing to go up they continuing to go up we are t in to they continuing to go up we are trying to give they continuing to go up we are trying to give back they continuing to go up we are trying to give back now, they continuing to go up we are| trying to give back now, because inflation is falling, because real wages are rising, we are able now to cut Working Peoples taxes. Iirate wages are rising, we are able now to cut Working Peoples taxes. Cut Working Peoples taxes. We ust had the institute i cut Working Peoples taxes. We ust had the institute for i cut Working Peoples taxes. We ust had the institute for fiscali cut Working Peoples taxes. We just had the Institute For Fiscal Studies. Had the Institute For Fiscal Studies head here and one of the things he wanted to know even before the budget is that Public Services, some Public Services are going to be squeezed, quite dramatically. He wanted to know where is the axe going to fall . Youre keeping a 1 increase above inflation but thats across all services. Some will get more and others will get cut. Where are you going to cut . You more and others will get cut. Where are you going to cut . Are you going to cut . You are right to oint are you going to cut . You are right to point out are you going to cut . You are right to point out that are you going to cut . You are right to point out that the are you going to cut . You are right to point out that the overall are you going to cut . You are right to point out that the overall size i to point out that the overall size of the pie will be going up. This is not austerity. Of the pie will be going up. This is not austerity of the pie will be going up. This is not austeri. ,. ,. , , not austerity. How do we know unless we know what not austerity. How do we know unless we know what you not austerity. How do we know unless we know what you are not austerity. How do we know unless we know what you are going not austerity. How do we know unless we know what you are going to not austerity. How do we know unless we know what you are going to cut . L we know what you are going to cut . The planned cuts from 2010 to 2015 was 2. 1 . So this is going up. Resource spending is going up by 1 overall. Its important people know its increasing. Its increasing. Hang on. That is 196 nettina its increasing. Hang on. That is 196 getting up. Its increasing. Hang on. That is 196 getting up. Its its increasing. Hang on. That is 196 getting up. Its not its increasing. Hang on. That is 196 getting up, its not that its increasing. Hang on. That is 196 getting up, its not that much i its increasing. Hang on. That is 1 getting up, its not that much but. Getting up, its not that much but anyway 1 above inflation but not every area is going to get that increase because we have these unprotected departments and those are the areas that are not guaranteed those increases and theyve already had cuts. Local government, home office and justice. Where are the cuts going to fall . People will want to know. The amount of money local people will want to know. The amount of money local Government People will want to know. The amount of money local government will people will want to know. The amount of money local government will get i of money local government will get next year will go up by 7. 5 . Their money is going up significantly. Withjust a ten money is going up significantly. With just a ten x 600 million into local government. Avis parliament weve increased the overall spending on resource. Its going to go up over the next parliament. But what were is making sure that we are spending this money productively. So we announced a civil Service Productivity plan which is making investments in areas we know are driving up council costs, for example childrens homes, special Educational Needs schools, all of those things. They will help save money and make sure we are spending taxpayers money more efficiently because its notjust about what taxpayers money more efficiently because its not just about what you pertain its about what you get out. There will be tens of billions of pounds of cuts to unprotected areas . That depends on a Spending Review which we are not doing. The strategy ofthe which we are not doing. The strategy of the conservative which we are not doing. The strategy of the conservative party which we are not doing. The strategy of the conservative party will which we are not doing. The strategy of the conservative party will to of the conservative party will to take people out of the tax system. You put take people out of the tax system. You put them all back in again now with millions more in the tax system, with millions more in the tax system, three or 4 million now more dragged system, three or 4 million now more dragged into the high rate tax band, it creates dragged into the high rate tax band, it creates all sorts of problems with it creates all sorts of problems with red it creates all sorts of problems with red tape and youve taken that tax money with red tape and youve taken that tax money which was far bigger than you anticipated when the freeze came in a night you anticipated when the freeze came in a night you want some credit for giving in a night you want some credit for giving about a third of it back. The economy has giving about a third of it back. The economy has been doing giving about a third of it back. Tt9 economy has been doing well giving about a third of it back. Tt9 economy has been doing well and because of that the tax take has increased and thats also meant, and because of inflation falling, the debt Interest Payments have also gone down. So that has allowed us more headroom as well. But what weve done is make sure that where weve done is make sure that where we can and where its responsible to do so, we start the process of cutting taxes again. This is not the end of the story. Teeth . Cutting taxes again. This is not the end of the story. End of the story. Why not ust up the frzeee end of the story. Why not ust up the freeze thats end of the story. Why notjust up the freeze thats happening end of the story. Why notjust up the freeze thats happening for. End of the story. Why notjust up i the freeze thats happening for the next three years . We the freeze thats happening for the next three years . Next three years . We are doing thins next three years . We are doing things that next three years . We are doing things that are next three years . We are doing things that are fiscally next three years . We are doing i things that are fiscally responsible and are not inflationary. You will know that its very important that this ni cut isnt inflationary. The obr says these measures will reduce inflation next year by 0. 2 . Inflation next year by 0. 2 . Youre now running inflation next year by 0. 2 . Youre now running the inflation next year by 0. 2 . Youre now running the public inflation next year by 0. 2 . Youre now running the public finances inflation next year by 0. 2 . Youre. Now running the public finances very hot. Now running the public finances very hot the now running the public finances very hot. The headroom isjust below 9 billion, hot. The headroom isjust below 9 billion, just hot. The headroom isjust below 9 billion, just a few billion, a tiny move billion, just a few billion, a tiny move in billion, just a few billion, a tiny move in the forecast could wipe that out. Move in the forecast could wipe that out are move in the forecast could wipe that out are you move in the forecast could wipe that out. Are you going to be writing a letter out. Are you going to be writing a letter saying there is no money left to your letter saying there is no money left to your successes . Letter saying there is no money left to your successes . Public sector net borrowin to your successes . Public sector net borrowing will to your successes . Public sector net borrowing will be to your successes . Public sector net borrowing will be a to your successes . Public sector net borrowing will be a low to your successes . Public sector net borrowing will be a low which to your successes . Public sector net borrowing will be a low which is borrowing will be a low which is historic for the last couple of decades, just over 1 . Thats with a large degree of headroom from the borrowing figures. Its 9 billion on the debt one but we are being very responsible. We have managed to cut ni without increasing borrowing over the period from the Autumn Statement, we are doing this in a fiscally responsible way. Fiscally responsible way. Shortly after becoming fiscally responsible way. Shortly after becoming prime fiscally responsible way. Shortly after becoming Prime Minister, | fiscally responsible way. Shortly after becoming Prime Minister, rishi sunak gave a big speech where he said his government was going to deliverfive key pledges said his government was going to deliver five key pledges and one of them was on deck. We will make sure our National Debt is falling so that we can secure the future of Public Services. Are you meeting that pledge . Services. Are you meeting that lede . , ,. Pledge . So, in the forecast Public Sector net debt pledge . So, in the forecast Public Sector net debt is pledge . So, in the forecast Public Sector net debt is dutiful. Pledge . So, in the forecast Public Sector net debt is dutiful. Public. Sector net debt is dutiful. Public sector net debt is dutiful. Public sector net debt overall is coming down. , , sector net debt overall is coming down. ,. , i. Sector net debt overall is coming down. ,. , i. , down. That was your fiscal rule that in a 50 debt down. That was your fiscal rule that in a 50 debt would down. That was your fiscal rule that in a 50 debt would come down. That was your fiscal rule that in a 50 debt would come down in a 50 debt would come down slightly from yearfour. In a 50 debt would come down slightly from year four. We discussed that is self imposed rule, thatis discussed that is self imposed rule, that is going down from 93. 2 to 92. 9 . So, yes, you are meeting that ruled but im talking about the Prime Ministers pledged to make sure that National Debt is falling. Is debt going to be higher or lower in five years time than it is now . So, that one measure. Is in five years time than it is now . So, that one measure. In five years time than it is now . So, that one measure. Is going to be hiiher or so, that one measure. Is going to be higher or lower. So, that one measure. Is going to be higher or lower. Public so, that one measure. Is going to be higher or lower. Public sector so, that one measure. Is going to be higher or lower. Public sector net higher or lower. Public sector net debt which higher or lower. Public sector net debt which is higher or lower. Public sector net debt which is the higher or lower. Public sector net debt which is the overall higher or lower. Public sector net debt which is the overall figure i higher or lower. Public sector net debt which is the overall figure is| debt which is the overall figure is coming down. But debt which is the overall figure is coming down debt which is the overall figure is comini down. � ,. ,. , coming down. But when people hear sa debt is coming down. But when people hear say debt is going coming down. But when people hear say debt is going to coming down. But when people hear say debt is going to be coming down. But when people hear say debt is going to be falling, coming down. But when people hear say debt is going to be falling, you l say debt is going to be falling, you can assume they think debt is falling now. Can assume they think debt is falling now can assume they think debt is falling now. Like i said, we are keeiini falling now. Like i said, we are keeping within falling now. Like i said, we are keeping within our falling now. Like i said, we are keeping within our fiscal falling now. Like i said, we arej keeping within our fiscal rules, falling now. Like i said, we are keeping within our fiscal rules, we are making sure borrowing has come down significantly which has contributed to debt. By 2029 its going to be i . We are doing this in a very responsible way and we are taking steps and there are a couple of revenue raisers in there today. We are being clear. Tan of revenue raisers in there today. We are being clear. Of revenue raisers in there today. I we are being clear. We we are being clear. Tax vapes. We are askini we are being clear. Tax vapes. We are asking those we are being clear. Tax vapes. We are asking those with we are being clear. Tax vapes. We are asking those with broad are asking those with broad shoulders to take the burden will be cut taxes for Working People. Is cut taxes for Working People. Is debt falling . Its cut taxes for Working People. Is debt falling . Its going cut taxes for Working People. Is debt falling . Its going up cut taxes for Working People. Is debt falling . Its going up on i cut taxes for Working People. Is i debt falling . Its going up on this measure for debt falling . Its going up on this measure for the debt falling . Its going up on this measure for the next debt falling . Its going up on this measure for the next three debt falling . Its going up on this measure for the next three or debt falling . Its going up on this| measure for the next three or four years measure for the next three or four veers and measure for the next three or four years and as measure for the next three or four years and as weve repeatedly described it, it tails off at the end described it, it tails off at the end. ~ , , described it, it tails off at the end. ~ ,. ,. ,. , described it, it tails off at the end. ~ i. ,. ,. , end. When you hear a pledge from the Prime Minister end. When you hear a pledge from the Prime Minister that end. When you hear a pledge from the Prime Minister that says end. When you hear a pledge from the Prime Minister that says i end. When you hear a pledge from the Prime Minister that says i am Prime Minister that says i am committing this government to National Debt falling, they are not going to meet that pledge going into the election. Its going to meet that pledge going into the election. � , ~ the election. Its like the difference the election. Its like the difference in the election. Its like the difference in the the election. Its like the difference in the pledge | the election. Its like the i difference in the pledge and the fiscat difference in the pledge and the fiscal rule. There some degree of vagueness fiscal rule. There some degree of vagueness and thats the gap here. Is vagueness and thats the gap here. Is the vagueness and thats the gap here. Is the fiscal vagueness and thats the gap here. Is the fiscal rule really sensible . Weve got to have fiscal rules. Some people dont believe in them, everyone at home would recognise you have to stay within a budget. Fiscal rules have been placed by numerous governments over many years, they are vital to make sure the government is spending taxpayers money wisely. This is not the only fiscal rule, there is also one on borrowing, they interplay with each other. , borrowing, they interplay with each other. , , borrowing, they interplay with each other. ,. ,. , other. You only need to fiscal rule because youre other. You only need to fiscal rule because youre saying other. You only need to fiscal rule because youre saying we other. You only need to fiscal rule because youre saying we cant i other. You only need to fiscal rule because youre saying we cant be| because youre saying we cant be trusted because youre saying we cant be trusted to because youre saying we cant be trusted to stick because youre saying we cant be trusted to stick to because youre saying we cant be trusted to stick to something i trusted to stick to something sensible trusted to stick to something sensible in trusted to stick to something sensible in the trusted to stick to something sensible in the first trusted to stick to something sensible in the first place. I trusted to stick to something sensible in the first place. [i trusted to stick to something sensible in the first place. I think there needs sensible in the first place. I think there needs to sensible in the first place. I think there needs to be sensible in the first place. I think there needs to be a sensible in the first place. I think there needs to be a yardstick sensible in the first place. I think there needs to be a yardstick by| there needs to be a yardstick by which the British Public can judge how we are doing and that is overseen by the independent obr and thats the right way of doing it. Government finances are not the same as Household Finances per se and the rule, self imposed, made by the chancellor, is he really sticking to the spirit of the fiscal rule . Yes, absolutely. The spirit of the fiscal rule . Yes, absolutely the spirit of the fiscal rule . Yes, absolutel. � ,. , absolutely. Theres wider question here about. Absolutely. Theres wider question here about. Youve absolutely. Theres wider question here about. Youve got absolutely. Theres wider question here about. Youve got to i absolutely. Theres wider question here about. Youve got to face. Absolutely. Theres wider question i here about. Youve got to face the electorate here about. Youve got to face the electorate this year, agassi went confirm electorate this year, agassi went confirm it electorate this year, agassi went confirm it to be made but there is a concern confirm it to be made but there is a concern among the public about your partv concern among the public about your party. Theres been a change of prime party. Theres been a change of Prime Minister is, five different chancellors, if they vote for this plan, chancellors, if they vote for this plan, tower chancellors, if they vote for this plan, lower National Insurance eventually, who they actually to get as prime eventually, who they actually to get as Prime Minister and minister and chancettor as Prime Minister and minister and chancellor and what plan are they going chancellor and what plan are they going to chancellor and what plan are they going to stick to . Will they do another going to stick to . Will they do another liz truss mini budget when the members get annoyed if you win the members get annoyed if you win the election . The election . They will get rishi sunak and jeremy the election . They will get rishi sunak and jeremy hunt. I the election . They will get rishi sunak and jeremy hunt. For. The election . They will get rishi sunak and jeremy hunt. For a | sunak and jeremy hunt. For a coule sunak and jeremy hunt. For a coople of sunak and jeremy hunt. For a couple of months sunak and jeremy hunt. For a couple of months may sunak and jeremy hunt. For a couple of months may be. I sunak and jeremy hunt. For a couple of months may be. Theyj sunak and jeremy hunt. For a i couple of months may be. They turn the economy couple of months may be. They turn the economy around. Couple of months may be. They turn the economy around. Because i couple of months may be. They turn the economy around. Because we i couple of months may be. They turn i the economy around. Because we stuck to a plan, things are really improving on inflation, on real wages, household disposable income. These are incredibly positive and its so important we stick to plan rather than go back to square one with labour at. With labour at. Tricky to say its a turnini with labour at. Tricky to say its a turning point with labour at. Tricky to say its a turning point when with labour at. Tricky to say its a turning point when the with labour at. Tricky to say its a turning point when the ons i with labour at. Tricky to say its a turning point when the ons so i with labour at. Tricky to say its a | turning point when the ons so we with labour at. Tricky to say its a i turning point when the ons so we are in recession turning point when the ons so we are in recession. You turning point when the ons so we are in recession in recession. You will also know that the bank in recession. You will also know that the bank of in recession. You will also know that the Bank Of England i in recession. You will also know that the Bank Of England was i that the Bank Of England was predicting the biggest recession since the war. fire predicting the biggest recession since the war. Predicting the biggest recession since the war. Are you saying zero riowth since the war. Are you saying zero growth over since the war. Are you saying zero growth over five, since the war. Are you saying zero growth over five, six, since the war. Are you saying zero growth over five, six, seven i since the war. Are you saying zero growth over five, six, seven eight| growth over five, six, seven eight guarters growth over five, six, seven eight guarters as growth over five, six, seven eight quarters as a world cup winning moment . Quarters as a world cup winning moment . , quarters as a world cup winning moment . , , quarters as a world cup winning moment . ,. ,. ,. ,. , moment . You would acknowledge help bad the forecast moment . You would acknowledge help bad the forecast were moment . You would acknowledge help bad the forecast were in moment . You would acknowledge help bad the forecast were in autumn i moment . You would acknowledge help bad the forecast were in autumn 22. I bad the forecast were in autumn 22. It was very bad. It was the longest recession since the second world war. 50 recession since the second world war,. , recession since the second world war,. ,. , recession since the second world war. ,. , recession since the second world war. So bad rather than very bad . Thinis war. So bad rather than very bad . Things have war. So bad rather than very bad . Things have markedly war. So bad rather than very bad . Things have markedly improved. I war. So bad rather than very bad . I things have markedly improved. There have been conservative things have markedly improved. There have been conservative government since 2010. Qt have been conservative government since 2010. , have been conservative government since 2010. , ,. , have been conservative government since 2010. ,. ,. , since 2010. Of course but we had to face covid in since 2010. Of course but we had to face covid in a since 2010. Of course but we had to face covid in a severe since 2010. Of course but we had to face covid in a severe energy i since 2010. Of course but we had to face covid in a severe energy price i face covid in a severe Energy Price Shocks which caused inflation to skyrocket. We had to bring that down and repay our covid debts which we spent on things like furlough which were incredibly important but we have to pay for them and we had to pay for them doing things us conservatives feel quite uncomfortable doing, putting up taxes in some instances but now we are trying to bring them down as much as we can and focusing on Working People will we try and do that. ,. , that. One of the things jeremy hunt was very critical that. One of the things jeremy hunt was very critical of that. One of the things jeremy hunt was very critical of in that. One of the things jeremy hunt was very critical of in the that. One of the things jeremy hunt was very critical of in the past i that. One of the things jeremy hunt was very critical of in the past and i was very critical of in the past and obviously uncomfortable about was the call from labour to scrap what they call non dom status. There was a u turn today. You havent done anything about non doms. Why not . Well, theres a non dom regime in ireland and a non dom regime in france, and these are foreigners. And i would rather wealthy foreigners spent their money in britain because that supports jobs in our shops, in our restaurants. In the end, ive tried to avoid anything that damages long term growth. What has changed his mind . Weve alwa s what has changed his mind . Weve always said what has changed his mind . Weve always said we what has changed his mind . Weve always said we want what has changed his mind . Weve always said we want a what has changed his mind . Weve always said we want a fair what has changed his mind . Weve always said we want a fair and i always said we want a fair and competitive tax system. This is a change, its a reform, ithink competitive tax system. This is a change, its a reform, i think its a good reform which will mean that we have an internationally competitive system but we also raise money in a fair way. Money in a fair way. Right. He did sa of money in a fair way. Right. He did say of course money in a fair way. Right. He did say of course then money in a fair way. Right. He did say of course then he money in a fair way. Right. He did say of course then he didnt i money in a fair way. Right. He did say of course then he didnt want | money in a fair way. Right. He did i say of course then he didnt want to do anything that would damage long term growth but he changed his mind, he doesnt think it will . This is a reformed mind, he doesnt think it will . in 3 is a reformed system. Theres lots of detail around what you can doing this for years, you can bring all of your assets now which is a slight change to whats been done previously. We think that is a positive change. We are putting in place transitional arrangements to allow people to bring their assets here, their existing non doms, and we think that strikes the right balance between competitive and fair. Balance between competitive and fair. ,. ,. ,. Fair. Laura trott, Chief Executive to the treasury, fair. Laura trott, Chief Executive to the treasury, thank fair. Laura trott, Chief Executive to the treasury, thank you fair. Laura trott, Chief Executive to the treasury, thank you for l to the treasury, thank you for joining us and we are going to be talking to labours shadow Chief Secretary to the treasury very soon. What did you make of what you heard . When levelling up happened i dont think many people would have expected that canary wharf skyscrapers would be a beneficiary of the Levelling Up Fund. Thats what was announced today and thats an interesting one. It probably wasnt mentioned hugely in the 2019 manifesto but £242 million, is quite an interesting story because of the changes we had seen. Some of the office space is not being used and may be the turn some into housing that there is an example of how life changes, canary wharf is receiving Levelling Up Fund. The changes, canary wharf is receiving Levelling Up Fund. Changes, canary wharf is receiving Levelling Up Fund. The the date of the election Levelling Up Fund. The the date of the election. I Levelling Up Fund. The the date of the election. I dont Levelling Up Fund. The the date of the election. I dont know Levelling Up Fund. The the date of the election. I dont know it. Levelling up fund. The the date of the election. I dont know it. Im i the election. I dont know it. Im not going the election. I dont know it. Im not going to the election. I dont know it. Im not going to ask the election. I dont know it. Im not going to ask you the election. I dont know it. Im not going to ask you but the election. I dont know it. Im not going to ask you but it the election. I dont know it. Im not going to ask you but it was l not going to ask you but it was interesting, keir starmer calling on the conservatives, although they had emptied the chamber, calling for that, made a second, it didnt feel like today was heralding an early election. I think the day they date of the budget, a lot of us thought that is earlier than normal. Theyre leaving the chance they could still do it in may. He has cut National Insurance, they will do the legislation in parliament next week, you could get it through, it comes through in april and you could call the election. But it doesnt feel like that. After what happened in the autumn and they made that same cut to the tax and it didnt do anything in terms of opinion polls and they will be hoping that doing it this time will change that. Theyre relying on voters having i suppose quite short memories. Theyre hoping these tax cuts that will come in will make people think ifeel better than will come in will make people think i feel better than last year and inflation is lower. If you do what labour are saying, think further back. Are you going to feel better . I should introduce you. Those who are on servant will realise that you are on servant will realise that you are not chris mason, but vicki young. Do you think there will be enough cheerfor tory young. Do you think there will be enough cheer for tory benches . There will be some. Enough cheer for tory benches . There will be some, but enough cheer for tory benches . There will be some, but theyre enough cheer for tory benches . There will be some, but theyre so enough cheer for tory benches . Ll iiff will be some, but theyre so gloomy. Unless the polls shift, they dont feel they will have to implement the tight public spending figures. That is what some of this is about. Labour say they will inherit the worse legacy since world war two. They know when you say you really still want to do this . You look at the figures, as laura trott said, public spending will be going up when you lock at the unprotected departments. If youre in the ministry ofjustice and the home office, youre thinking we are in big trouble in terms of cuts that will need to be imposed. The office for bud. Et will need to be imposed. The office for budget responsibility will need to be imposed. The office for budget responsibility said will need to be imposed. The office for budget responsibility said on i for budget responsibility said on those departments it is spending will be cut by 3. 6 . That those departments it is spending will be cut by 3. 696. Will be cut by 3. 6 . That is quite difficult. Will be cut by 3. 6 . That is quite difficult he will be cut by 3. 696. That is quite difficult. He has will be cut by 3. 696. That is quite difficult. He has given will be cut by 3. 696. That is quite difficult. He has given a will be cut by 3. 696. That is quite difficult. He has given a strategy| difficult. He has given a strategy as why difficult. He has given a strategy as why he difficult. He has given a strategy as why he can say that is credible and in as why he can say that is credible and in answerto as why he can say that is credible and in answer to your questioning of her, and in answer to your questioning of her. Before and in answer to your questioning of her, before there was a grey block, but in her, before there was a grey block, but in terms her, before there was a grey block, but in terms of the economy and politics. But in terms of the economy and politics, their hope is 2p plus 2p, energy politics, their hope is 2p plus 2p, energy bills come down, Interest Rates energy bills come down, Interest Rates come down. Youre starting to cut with rates come down. Youre starting to cut with the rates come down. Youre starting to cut with the grain of the wood and people cut with the grain of the wood and people may notice totality of that. That is people may notice totality of that. That is the people may notice totality of that. That is the strategy and that will feed into that is the strategy and that will feed into the idea of Prime Minister be accurate and saying the election will he be accurate and saying the election will he in be accurate and saying the election will be in the autumn. Let� s be accurate and saying the election will be in the autumn. Will be in the autumn. Lets give ou a will be in the autumn. Lets give you a summary will be in the autumn. Lets give you a summary of will be in the autumn. Lets give you a summary of the will be in the autumn. Lets give you a summary of the main will be in the autumn. Lets give you a summary of the main measures from the budget. National insurance cut by 2 pence. Also announced Child Benefit salary threshold increased, thatis benefit salary threshold increased, that is from £50,000 to £60,000. Windfall tax on oil and gas extended. Non dom tax status abolished. New vape levy and an increase in tobacco duty that will partly pay for the National Insurance cut. Fuel and Alcohol Duty Freeze extended. Tax relief for holiday lets are scrapped. That was also trailed and Capital Gains tax on properties reduced. Air Passenger Duty increased. And rise in vat threshold for small business. It was a very lengthy statement byjeremy hunt, day to day spend increase will be kept at i and an extra 2. 5 billion for the nhs this year. Alongside the Productivity Plan to fund that w the hope of making savings. £270 for Manufacturing Industries and the new north east devolution deal announced byjeremy hunt today. The obr revised up slightly growth prospects, expect 0. 8 growth this year. Against the backdrop of recession. The debt for cast of 94. 3 by 28 28. Borrowing is to fall to 1. 2 by 2028 29. Again these are the forecasts from the obr. And that brings us to the end of the the main budget measures. We are going to newcastle and luke walton is there to find out what they made ofjupt� s statement. Jeremy hunts statement. Welcome back to the piper and piano bar in newcastle. Nick kemp leads newcastle city council. What was your reaction to the budget . I city council. What was your reaction to the budget . To the budget . I think the last throw of the to the budget . I think the last throw of the dice to the budget . I think the last throw of the dice at to the budget . I think the last throw of the dice at the to the budget . I think the last throw of the dice at the casino j to the budget . | think the last. Throw of the dice at the casino by to the budget . | think the last throw of the dice at the casino by a broken government. Very little that wasnt already trailed. Pleased to see the north east devolution deal. We have worked to get that over the line. But it doesnt replace the failure to fund local government. You have a meeting tonight. The government says there are efficiencies that you can make . Yes. Efficiencies that you can make . Yes, the do efficiencies that you can make . Yes, they do indeed efficiencies that you can make . Yes, they do indeed. But efficiencies that you can make . Yes, they do indeed. But we efficiencies that you can make . Yes they do indeed. But we have had efficiencies that you can make . Ies they do indeed. But we have had to achieve 370 billion worth of cuts in 15 years. We need another 75 million by 26 27. That is cuts. You mentioned by 26 27. That is cuts. You mentioned the by 26 27. That is cuts. You mentioned the trail by 26 27. That is cuts. You mentioned the trail blazer| by 26 27. That is cuts. You mentioned the trail blazer deal it means about £100 million for the north east and extra powers for the new north east mayor. That must be good news. The new northeast mayor. That must be aood news. New northeast mayor. That must be good news good news. The 4. 2 billion deal is excellent and good news. The 4. 2 billion deal is excellent and gives good news. The 4. 2 billion deal is excellent and gives some good news. The 4. 2 billion deal is| excellent and gives some certainty and the it gives some opportunities, flexibility and funding, but doesnt replace t structural reform of local government finance. Government finance. Charlotte carpenter. Government finance. Charlotte carpenter, youre government finance. Charlotte carpenter, youre from government finance. Charlotte carpenter, youre from a government finance. Charlotte | carpenter, youre from a social House Programme vieder, what did you make of what you heard . fin House Programme vieder, what did you make of what you heard . Make of what you heard . On housing, very disappointing make of what you heard . On housing, very disappointing. There make of what you heard . On housing, very disappointing. There was make of what you heard . On housing, very disappointing. There was little i very disappointing. There was little in it on very disappointing. There was little in it on housing. And nothing in relation in it on housing. And nothing in relation to in it on housing. And nothing in relation to affordable or social housing relation to affordable or social housing that is much needed across tuck and housing that is much needed across tuck and in housing that is much needed across tuck and in the north east across the uk tuck and in the north east across the uk there tuck and in the north east across the uk. There are people 75,000 people the uk. There are people 75,000 pe0pte on the uk. There are people 75,000 people on Waiting Lists in the north east. We only build about 1,200 north east. We only build about 1,200 homes. We need additional funding 1,200 homes. We need additional funding to 1,200 homes. We need additional funding to build the homes or even certainty funding to build the homes or even certainty over a Long Term Plan for housing certainty over a Long Term Plan for housing. And disappointed there was nothing housing. And disappointed there was nothing to housing. And disappointed there was nothing to make a difference to the money nothing to make a difference to the money in nothing to make a difference to the money in the pocket for our customers who are unable or excluded from the customers who are unable or excluded from the work place. From the work place. There was an extension to from the work place. There was an extension to the from the work place. There was an extension to the household from the work place. There was an | extension to the Household Support Fund. That must have been good news and we heard the trail blazer deal for the north east. So and we heard the trail blazer deal for the northeast. And we heard the trail blazer deal for the northeast. So the extension ofthe for the northeast. So the extension of the household for the northeast. So the extension of the household support for the northeast. So the extension of the Household Support Fund, for the northeast. So the extension of the Household Support Fund, it. For the northeast. So the extension of the Household Support Fund, it is | of the Household Support Fund, it is welcome of the Household Support Fund, it is welcome news for those who can take advantage welcome news for those who can take advantage of it. What we wanted instead advantage of it. What we wanted instead would have been the ending of the instead would have been the ending of the five week delay in receiving universat of the five week delay in receiving universal credit or something along the tines universal credit or something along the lines of a minimum level of credit the lines of a minimum level of credit so the lines of a minimum level of credit so benefits have kept rate with inflation over the year. Youre the managing with inflation over the year. Youre the managing director with inflation over the year. Youre the managing director of with inflation over the year. Youre the managing director of an the managing director of an engineering firm. What did you think . , � engineering firm. What did you think . , �. , engineering firm. What did you think . �. ,. ,. , engineering firm. What did you think . ,. ,. ,. , think . There wasnt a great deal for businesses think . There wasnt a great deal for businesses. There think . There wasnt a great deal for businesses. There was think . There wasnt a great deal for businesses. There was some think . There wasnt a great deal for. Businesses. There was some positive in theyre businesses. There was some positive in theyre giving businesses. There was some positive in thevre giving the businesses. There was some positive in theyre giving the capital in theyre giving the capital allowance in theyre giving the capital allowance extension in theyre giving the capital allowance extension to in theyre giving the capital. Allowance extension to leased equipment allowance extension to leased equipment. But allowance extension to leased equipment. But that allowance extension to leased equipment. But that is allowance extension to leased equipment. But that is a allowance extension to leased equipment. But that is a goodj allowance extension to leased equipment. But that is a good thing if we want equipment. But that is a good thing if we want to equipment. But that is a good thing if we want to grab equipment. But that is a good thing if we want to grab on equipment. But that is a good thing if we want to grab on to equipment. But that is a good thing if we want to grab on to some if we want to grab on to some straws if we want to grab on to some straws but if we want to grab on to some straws but i if we want to grab on to some straws. But i look if we want to grab on to some straws. But i look on if we want to grab on to some straws. But i look on the if we want to grab on to some. Straws. But i look on the position that they straws. But i look on the position that they increased straws. But i look on the position that they increased employers i that they increased employers national that they increased employers National Insurance that they increased employers National Insurance the that they increased employers National Insurance the other. That they increased employers. National insurance the other year and they National Insurance the other year and they have National Insurance the other year and they have given National Insurance the other year and they have given it National Insurance the other year and they have given it to National Insurance the other year and they have given it to staff. And they have given it to staff. Employers and they have given it to staff. Employers would and they have given it to staff. Employers would have and they have given it to staff. Employers would have used i and they have given it to staff. Employers would have used ai and they have given it to staff. Employers would have used a cut and they have given it to staff. Employers would have used a cut to maybe employers would have used a cut to maybe increase employers would have used a cut to maybe increase training. Employers would have used a cut to maybe increase training. We employers would have used a cut to maybe increase training. We have. Employers would have used a cut to maybe increase training. We have a| maybe increase training. We have a massive maybe increase training. We have a massive skills maybe increase training. We have a massive skills shortage. Maybe increase training. We have a massive skills shortage. We maybe increase training. We have a massive skills shortage. We need l maybe increase training. We have a| massive skills shortage. We need to start investing massive skills shortage. We need to start investing. When massive skills shortage. We need to start investing. When youlike massive skills shortage. We need to start investing. When youlike at massive skills shortage. We need to start investing. When youlike at the| start investing. When youlike at the 80 of start investing. When youlike at the 80 of the start investing. When youlike at the 80 of the private start investing. When youlike at the 80 of the private sector start investing. When youlike at the i 80 of the private Sector Employment is in the 80 of the private Sector Employment is in the small 80 of the private Sector Employment is in the small and 80 of the private Sector Employment is in the small and medium 80 of the private Sector Employment is in the small and medium sized is in the small and medium sized enterprise. Is in the small and medium sized enterprise. They is in the small and medium sized enterprise, they have is in the small and medium sized enterprise, they have reinvestedj enterprise, they have reinvested back enterprise, they have reinvested hack into enterprise, they have reinvested back into development. Enterprise, they have reinvested back into development. Enterprise, they have reinvested back into development. There was some support back into development. There was some support for back into development. There was some support for manufacturing. L back into development. There was | some support for manufacturing. It is small scale. We need wholesale change is small scale. We need wholesale change to is small scale. We need wholesale change to make is small scale. We need wholesale change to make ourselves is small scale. We need wholesale change to make ourselves one is small scale. We need wholesale change to make ourselves one of. Is small scale. We need wholesale. Change to make ourselves one of the the leading change to make ourselves one of the the leading industrial change to make ourselves one of the the leading industrial nations change to make ourselves one of the the leading industrial nations in the leading industrial nations in the leading industrial nations in the world the leading industrial nations in the world. And the leading industrial nations in the world. And that the leading industrial nations in the world. And that is the leading industrial nations in. The world. And that is something that i the world. And that is something that i think the world. And that is something that i think we the world. And that is something that i think we have the world. And that is something that i think we have done the world. And that is something that i think we have done in the world. And that is something that i think we have done in the. That i think we have done in the last year. That i think we have done in the last year, because that i think we have done in the last year, because we that i think we have done in the last year, because we have that i think we have done in the i last year, because we have moved from last year, because we have moved from ninth last year, because we have moved from ninth to last year, because we have moved from ninth to eighth last year, because we have moved from ninth to eighth in last year, because we have moved from ninth to eighth in terms last year, because we have moved from ninth to eighth in terms of. From ninth to eighth in terms of leading from ninth to eighth in terms of leading manufacturing from ninth to eighth in terms of leading manufacturing nations. From ninth to eighth in terms of. Leading manufacturing nations and overtook leading manufacturing nations and overtook france. Leading manufacturing nations and overtook france. But leading manufacturing nations and overtook france. But lets leading manufacturing nations and overtook france. But lets not leading manufacturing nations and overtook france. But lets notjustj overtook france. But lets not just stop at overtook france. But lets not just stop at eight overtook france. But lets not just stop at eight we overtook france. But lets not just stop at eight. We want overtook france. But lets not just stop at eight. We want to overtook france. But lets not just stop at eight. We want to move i overtook france. But lets not just. Stop at eight. We want to move up. We have stop at eight. We want to move up. We have to stop at eight. We want to move up. We have to look stop at eight. We want to move up. We have to look at stop at eight. We want to move up. We have to look at long term we have to look at Long Term Planning we have to look at Long Term Planning a we have to look at Long Term Planning a good we have to look at Long Term Planning, a good industrial. Planning, a good industrial strategy. Planning, a good industrial strategy, that planning, a good industrial strategy, that will planning, a good industrial strategy, that will take planning, a good industrial strategy, that will take usi planning, a good industrial. Strategy, that will take us up planning, a good industrial strategy, that will take us up the ladder strategy, that will take us up the ladder further. Strategy, that will take us up the ladder further. You strategy, that will take us up the ladder further. Strategy, that will take us up the ladder further. You wanted to get back in about ladder further. You wanted to get back in about what ladder further. You wanted to get back in about what needed ladder further. You wanted to get back in about what needed to ladder further. You wanted to get back in about what needed to be| back in about what needed to be done . , back in about what needed to be done . ,. Back in about what needed to be done . ,. ,. ,. , done . Two things on household su ort done . Two things on Household Support Fund done . Two things on Household Support Fund it done . Two things on Household Support Fund it has done . Two things on Household Support Fund it has been done . Two things on Household Support Fund it has been a done . Two things on household l support fund it has been a lifeline for many families. But the delay is the point that cripples people. But six months, this isjust the election, it is not long term or a solution. Election, it is not longterm or a solution. , solution. The minister said they were increasing solution. The minister said they were increasing funding solution. The minister said they were increasing funding for solution. The minister said they | were increasing funding for local government . Government . Could you tell the leaders of government . Could you tell the leaders of the government . Could you tell the leaders of the 19 government . Could you tell the leaders of the 19 authorities government . Could you tell the | leaders of the 19 authorities who had to secure support, wholesale assets review. It is ludicrous. This is. ~. ,. , ~ is. We have run out of time. A mixed verdict. Is. We have run out of time. A mixed verdict. Not is. We have run out of time. A mixed verdict. Not entirely is. We have run out of time. A i mixed verdict. Not entirely positive from my guests here in newcastle. Back to you in the studio. Studio if we have we willjoin you again. Darrenjonesjoins us. A key member of keir starmer� s team. Can you confirm that you will support the tax cuts announced today . The 2 pence cut . The tax cuts announced today . The 2 ence cut . , the tax cuts announced today . The 2 pence cut . Yes. Why do you support the government pence cut . Is; why do you support the government on this . Because that tax cut is going to be paid for by cuts in Public Services. But youre happy with that . Itasteiiii cuts in Public Services. But youre happy with that . Cuts in Public Services. But youre happy with that . Well the chancellor said that he wasnt happy with that . Well the chancellor said that he wasnt going happy with that . Well the chancellor said that he wasnt going to happy with that . Well the chancellor said that he wasnt going to make i said that he wasnt going to make further cuts to their future projections for departmental spending. He is paying for the tax cut by adopting labours policy on non dom tax loopholes. You cut by adopting labours policy on nondom tax loopholes. You welcome it. But nondom tax loopholes. You welcome it but they nondom tax loopholes. You welcome it. But they have nondom tax loopholes. You welcome it. But they have shot nondom tax loopholes. You welcome it. But they have shot your nondom tax loopholes. You welcome it. But they have shot your fox. Nondom tax loopholes. You welcome it. But they have shot your fox. We. It. But they have shot your fox. We are not it. But they have shot your fox. Are not bothered by that. We anticipated it. We know the conservative party is in a mess and they were looking for gimmicks. They could have adopted it earlier and used that to tackle the nhs backlog to Fund Breakfast clubs in schools, but said up until yesterday that the non dom loophole was not effective and now they say it is. Haste nondom loophole was not effective and now they say it is. And now they say it is. We played that to laura and now they say it is. We played that to laura trott. And now they say it is. We played that to laura trott. Now and now they say it is. We played that to laura trott. Now the and now they say it is. We played | that to laura trott. Now the issue of cuts to unprotected Public Services. We has kept the 1 increase in spending, but there will be cuts to up protected services. Where are those cuts going to be in labour wins the election . Where are those cuts going to be in labour wins the election . These are forecasts, labour wins the election . These are forecasts. It labour wins the election . These are forecasts, it depends labour wins the election . These are forecasts, it depends on labour wins the election . These are forecasts, it depends on what forecasts, it depends on what happens to inflation and growth. If inflation comes down, the money that you have will go further. But of course in order for these Funding Settlements to be sustainable, you have got to deal with growth in the economy and the structural issues. That is why that is at the heart of labours plan for the economy. You say theyre labours plan for the economy. You say theyre forecasts, but the obr is predicting 3. 6 in cuts to unprotected departments and they include the home office, and they includes justice, include the home office, and they includesjustice, where include the home office, and they includes justice, where would you as a labour Chief Secretary to the treasury make those cuts . So that people know . If they vote for you, where are you going to make the axe fall. ,. ,. Where are you going to make the axe fall. ,. ,. , fall. Projections are proections of government fall. Projections are proections of government policy h fall. Projections are proections of government policy and fall. Projections are projections of government policy and not government policy and not projections of labour policy. Proections of labour policy. Where is projections of labour policy. Where is the difference . Projections of labour policy. Where is the difference . There projections of labour policy. Where is the difference . There is projections of labour policy. Where is the difference . There is a projections of labour policy. Where is the difference . There is a load. Is the difference . There is a load of differences. Is the difference . There is a load of differences. If is the difference . There is a load of differences. If you is the difference . There is a load of differences. If you go is the difference . There is a load of differences. If you go on is the difference . There is a load of differences. If you go on to. Of differences. If you go on to economic growth, there is the key driver for getting budgets under control and things we have called out. Why arent the government tackle planningers ning reform and helping with apprentice ships . And not changing the Business Rates system. Not changing the Business Rates s stem. � ,. , not changing the Business Rates s stem. � not changing the Business Rates sstem. �. ,� system. Are you saying there wont auoin to system. Are you saying there wont going to be system. Are you saying there wont going to be cuts system. Are you saying there wont going to be cuts under system. Are you saying there wont going to be cuts under a system. Are you saying there wont going to be cuts under a labour going to be cuts under a Labour Government . Im going to be cuts under a Labour Government . Going to be cuts under a Labour Government . �. , government . Im saying the Labour Party Manifesto government . Im saying the Labour Party Manifesto will government . Im saying the Labour Party Manifesto will set government . Im saying the Labour Party Manifesto will set out government . Im saying the Labour Party Manifesto will set out our Party Manifesto will set out our policies about how we will grow the economy, get the country back on track. At that point, the obr will be obliged to forecast our policies, whether theyre forecasting today is the conservative partys offer to the conservative partys offer to the country over the next five years. Which to be clear in the projection shows the tax burden is getting higher each year of the next five years. Getting higher each year of the next five ears. ,. ,. , five years. There are going to be tens of billions five years. There are going to be tens of billions of five years. There are going to be tens of billions of pounds five years. There are going to be tens of billions of pounds of five years. There are going to be tens of billions of pounds of cuts necessary. You know that. Forecasts or not. You know that they are going to have to happen. On unprotected departmental spending, where are you looking to make the cuts . I can departmental spending, where are you looking to make the cuts . Looking to make the cuts . I can be clear, looking to make the cuts . I can be clear. That looking to make the cuts . I can be clear, that the looking to make the cuts . I can be clear, that the inheritance. Clear, that the inheritance. Youre not going to tell us. The inheritance youre not going to tell us. The inheritance we youre not going to tell us. The inheritance we will youre not going to tell us. Tis inheritance we will have from the conservatives if we win the election will be the worst since the second world war. Rachel reeves said it will be hard and there will be tradeoffs. There are things we would like to do that we wont be able to afford to do. Like to do that we wont be able to afford to do like to do that we wont be able to afford to do. You | afford to do. What are they . You have to be afford to do. What are they . You have to be frank afford to do. What are they . You have to be frank about afford to do. What are they . You have to be frank about the afford to do. What are they . You have to be frank about the mess | afford to do. What are they . You i have to be frank about the mess the conservatives created and the public see that and know that. That is why the labour party is more trusted on the labour party is more trusted on the economy. We will set out through our five the economy. We will set out through ourfive missions the economy. We will set out through our five missions how the economy. We will set out through ourfive missions how we plan to get the country back on track. Im not saying is everything will be easy. You wont give me one example of a cut . Ourfive missions are our five missions are very clear, we are being directed to deliver investment, reforming the nhs, improving the education system, decarbonising the power system, unlocking investment for infrastructure delivery. Hath . Unlocking investment for infrastructure delivery. Why dont ou infrastructure delivery. Why dont you oppose infrastructure delivery. Why dont you oppose the infrastructure delivery. Why dont you oppose the tax infrastructure delivery. Why dont you oppose the tax cuts . Infrastructure delivery. Why dont you oppose the tax cuts . The infrastructure delivery. Why dont| you oppose the tax cuts . The cuts infrastructure delivery. Why dont you oppose the tax cuts . The cuts to National Insurance . Make a different choice . Theres quite a lot of polling out there that people would like any hedren, any money that might be available to get into funding Public Services better. The first s urt funding Public Services better. Tis first spurt of the answer is a reality check that we cannot affect the tory budget the first part of the tory budget the first part of the answer. These measures are going to happen because the conservative party are in government making these offers to the country but we will set out in a manifesto at election time how things will be different. Lots of people will know that labour going lots of people will know that labour going into lots of people will know that labour going into an lots of people will know that labour going into an election lots of people will know that labour going into an election promising lots of people will know that labour going into an election promising to. Going into an election promising to put taxes going into an election promising to put taxes up. Going into an election promising to put taxes up. One going into an election promising to put taxes up, one of going into an election promising to put taxes up, one of your going into an election promising to i put taxes up, one of your colleagues describe put taxes up, one of your colleagues describe that put taxes up, one of your colleagues describe that as put taxes up, one of your colleagues describe that as electoral put taxes up, one of your colleagues describe that as electoral suicide. I describe that as electoral suicide. You say describe that as electoral suicide. You say youre describe that as electoral suicide. You say youre accepting describe that as electoral suicide. You say youre accepting this describe that as electoral suicide. You say youre accepting this ni l describe that as electoral suicide. I you say youre accepting this ni cut and actually you say youre accepting this ni cut and actually it you say youre accepting this ni cut and actually it doesnt you say youre accepting this ni cut and actually it doesnt really you say youre accepting this ni cut and actually it doesnt really help. And actually it doesnt really help the lower and actually it doesnt really help the lower paid, and actually it doesnt really help the lower paid, does and actually it doesnt really help the lower paid, does it, and actually it doesnt really help the lower paid, does it, as and actually it doesnt really help the lower paid, does it, as muchl and actually it doesnt really help. The lower paid, does it, as much as the lower paid, does it, as much as the more the lower paid, does it, as much as the more well the lower paid, does it, as much as the more well off . The lower paid, does it, as much as the more well off . Someone the lower paid, does it, as much as. The more well off . Someone earning 20,000 the more well off . Someone earning 20,000 is the more well off . Someone earning 20,000 is better the more well off . Someone earning 20,000 is better off the more well off . Someone earning 20,000 is better off by the more well off . Someone earning 20,000 is better off by 260, the more well off . Someone earning l 20,000 is better off by 260, someone earning 20,000 is better off by 260, someone earning 50,000 20,000 is better off by 260, someone earning 50,000 is 20,000 is better off by 260, someone earning 50,000 is better 20,000 is better off by 260, someone earning 50,000 is better off 20,000 is better off by 260, someone earning 50,000 is better off by earning 50,000 is better off by £1300 earning 50,000 is better off by £1300 why earning 50,000 is better off by £1300. Why are earning 50,000 is better off by £1300. Why are you earning 50,000 is better off by £1300. Why are you accepting i earning 50,000 is better off by £1300. Why are you accepting that . Why dont £1300. Why are you accepting that . Why dont you £1300. Why are you accepting that . Why dont you come £1300. Why are you accepting that . Why dont you come up £1300. Why are you accepting that . Why dont you come up with £1300. Why are you accepting that . I why dont you come up with Something Different . Why dont you come up with Something Different . Hie why dont you come up with Something Different . ~. ,. ,. ,. , different . We have to accept the reali of different . We have to accept the reality of what different . We have to accept the reality of what the different . We have to accept the reality of what the conservatives i reality of what the conservatives have done in government. Youre also sa inc have done in government. Youre also sa in it have done in government. Youre also saying it wont have done in government. Youre also saying it wont change have done in government. Youre also saying it wont change it. Have done in government. Youre also saying it wont change it. We have done in government. Youre also saying it wont change it. We are saying it wont change it. We are auoin to saying it wont change it. We are going to change saying it wont change it. We are going to change a saying it wont change it. We are going to change a host saying it wont change it. We are going to change a host of saying it wont change it. We are going to change a host of things| going to change a host of things which wont be easy to do but youre right and the obr projections, people will be worse off, the tax burden going up every yearfor people will be worse off, the tax burden going up every year for the next five years, the average household will still be over £800 worse off per year. Household will still be over £800 worse off per year. What about this. Increase income worse off per year. What about this. Increase income tax worse off per year. What about this. Increase income tax for worse off per year. What about this. Increase income tax for the worse off per year. What about this. Increase income tax for the top worse off per year. What about this. Increase income tax for the top 596 i increase income tax for the top 5 of earners. He said that once . Keir starmer said that in his leadership election. Why not do that . Because since then the election. Why not do that . Because since then the tax election. Why not do that . Because since then the tax burden election. Why not do that . Because since then the tax burden has election. Why not do that . Because i since then the tax burden has become the highest it has been since world war ii. Thats why we said we want taxes to come down on Working People because they are paying more than ever and getting less for it. Ok. Ever and getting less for it. Ok, well, ever and getting less for it. Ok, well. You ever and getting less for it. Ok, well. You had ever and getting less for it. Ok, well, you had a ever and getting less for it. Ok, well, you had a plan ever and getting less for it. Ok, well, you had a plan to ever and getting less for it. Ok, well, you had a plan to spend 28 billion well, you had a plan to spend 28 billion on well, you had a plan to spend 28 billion on green investment. The government hasjust cut billion on green investment. The government has just cut 20 billion on green investment. The government hasjust cut 20 billion worth government hasjust cut 20 billion worth of government hasjust cut 20 billion worth of National Insurance, that was never worth of National Insurance, that was never in your plan, you could have was never in your plan, you could have stuck was never in your plan, you could have stuck to your plan of extra investment had you not accepted these investment had you not accepted these National Insurance cuts. Why not . These National Insurance cuts. Why not . How these National Insurance cuts. Why not . How much of a priority was it . If you not . How much of a priority was it . If you can not . How much of a priority was it . If you caniust not . How much of a priority was it . If you canjust drop not . How much of a priority was it . If you can just drop this, not . How much of a priority was it . If you canjust drop this, what not . How much of a priority was it . If you can just drop this, what else are you if you can just drop this, what else are you going to drop . This if you can just drop this, what else are you going to drop . Are you going to drop . This is why o osition are you going to drop . This is why opposition is are you going to drop . This is why opposition is so are you going to drop . This is why opposition is so frustrating, are you going to drop . This is why opposition is so frustrating, i opposition is so frustrating, i cant change the reality of what they are doing and what we will inherit. ,. ,. ,. , inherit. You could say we would have rivatised inherit. You could say we would have privatised what inherit. You could say we would have privatised what we inherit. You could say we would have privatised what we thought inherit. You could say we would have privatised what we thought was inherit. You could say we would have privatised what we thought was a privatised what we thought was a mission privatised what we thought was a Mission Critical for the uk economy and your Mission Critical for the uk economy and your vision of the country which was green and your vision of the country which was green investment. But and your vision of the country which was green investment. And your vision of the country which was green investment. But then what haened . Was green investment. But then what happened . The was green investment. But then what happened . The liz was green investment. But then what happened . The liz truss was green investment. But then what happened . The liz truss and was green investment. But then what happened . The liz truss and kwasi. Happened . The liz truss and Kwasi Kwarteng crashed the economy, Interest Rates went through the roof, National Debt has become much higher, the cost of it is now the Third Largest apartment in white. You didnt predict Interest Rates could have gone up from zero . I didnt predict liz truss was going to do what she did. Did you . Taste to do what she did. Did you . We thou~ht to do what she did. Did you . We thought it may be risky, put it like that thought it may be risky, put it like that it thought it may be risky, put it like that. It wasntjust thought it may be risky, put it like that. It wasnt just some thought it may be risky, put it like that. It wasntjust some bauble the idea you that. It wasntjust some bauble the idea you were going to spend 28 billion, idea you were going to spend 28 billion, it idea you were going to spend 28 billion, it was your plan for growth and you billion, it was your plan for growth and you dont have a plan for growth now and you dont have a plan for growth now | and you dont have a plan for growth now. ,. ,. ,. , now. I will send the plans to you. You can send now. I will send the plans to you. You can send them now. I will send the plans to you. You can send them to now. I will send the plans to you. You can send them to me, now. I will send the plans to you. You can send them to me, youre welcome to do that, send me and vicki a copy as well. Attach actually faisal is right, that was your grace plan, thats how actually faisal is right, that was y0ur grace plan, thats how you actually faisal is right, that was your grace plan, thats how you are going to wait while these problems that were going to be inherited and now you havent got that corner pledge of your growth plan, the other parts of your plan, bulldozing through planning, getting a better deal with brexit, these are not easy, they may also be dumped by the wayside. Let easy, they may also be dumped by the wa side. ,. I~ easy, they may also be dumped by the wa side. ~ j~ ,. , wayside. Let me take the 28 billion osition wayside. Let me take the 28 billion position and wayside. Let me take the 28 billion position and politely wayside. Let me take the 28 billion position and politely say wayside. Let me take the 28 billion position and politely say that wayside. Let me take the 28 billion position and politely say that its i position and politely say that its inaccurate. The £28 billion came from an assessment about what public subsidy was needed over a ten year period to get to net zero. That was always going to be public subsidy. There was a was going to be enormous amounts of private Sector Investment to deliver that. It is still the case. Its true to say that some investment in infrastructure. But it was never the only part of the answer because theres a whole host of other things. Of other things. Know its going to be less than of other things. Know its going to be less than five of other things. Know its going to be less than five billion. Of other things. Know its going to be less than five billion. The of other things. Know its going to be less than five billion. The 28 i be less than five billion. The 28 billion was be less than five billion. The 28 billion was an be less than five billion. The 28 billion was an academic be less than five billion. The 28 billion was an academic view. Be less than five billion. The 28 i billion was an academic view about required public subsidy but there was a huge reality check when the conservatives crashed the economy and all of our policies will be fully funded and fully costed and thats a consequence of the tories being in government and the damage theyve caused. Iitbthtztt being in government and the damage theyve caused theyve caused. What are your fiscal rules . We will theyve caused. What are your fiscal rules . We will not theyve caused. What are your fiscal rules . We will not borrow theyve caused. What are your fiscal rules . We will not borrow for rules . We will not borrow for daytoday rules . We will not borrow for daytoday spending rules . We will not borrow for daytoday spending and i rules . We will not borrow for daytoday spending and we| rules . We will not borrow for daytoday spending and we will get day to day spending and we will get debt falling as size of the economy. When . Haste debt falling as size of the economy. When . ~. , , when . We hope this is the last buduet when . We hope this is the last budget before when . We hope this is the last budget before the when . We hope this is the last budget before the next when . We hope this is the last| budget before the next election when . We hope this is the last i budget before the next election and if it is will set at that detail in our manifesto but those are the frameworks we work with them in making those decisions about how our policies are fully costed. Back making those decisions about how our policies are fully costed. Policies are fully costed. Back to the fiscal rules. Policies are fully costed. Back to the fiscal rules. Are policies are fully costed. Back to the fiscal rules. Are they policies are fully costed. Back to l the fiscal rules. Are they sensible to keep . Withjust showed laura the debt falling on the fifth year compared to the fourth year. Does it really mean anything . The compared to the fourth year. Does it really mean anything . Really mean anything . The fiscal rules set the really mean anything . The fiscal rules set the framework really mean anything . The fiscal rules set the framework in i really mean anything . The fiscalj rules set the framework in which really mean anything . The fiscal rules set the framework in which you say to the public on the market so you will operate. The problem with not having them as you end up in a situation as we did with liz truss and the conservatives where politicians announced huge unfunded tax cuts, went off the rails, tried to e mail our economic institutions and people are paying the price with their mortgage and rent. Iitbthtztt and people are paying the price with their mortgage and rent. Their mortgage and rent. What you an ue and their mortgage and rent. What you argue and still their mortgage and rent. What you argue and still think their mortgage and rent. What you argue and still think would their mortgage and rent. What you argue and still think would have i argue and still think would have been argue and still think would have been productive investments in the future been productive investments in the future of been productive investments in the future of the economy and would help us which future of the economy and would help us which net zero, thats different. But youre us which net zero, thats different. But youre bound by the same restraints but youre bound by the same restraints for a totally different type of restraints for a totally different type of spending. Youre being asked. Type of spending. Youre being asked, are you sure these fiscal rules asked, are you sure these fiscal rules are asked, are you sure these fiscal rules are working . Asked, are you sure these fiscal rules are working . Sure. Whether its roductive rules are working . Sure. Whether its productive investment rules are working . Sure. Whether its productive investment or rules are working . Sure. Whether its productive investment or not rules are working . Sure. Whether its productive investment or not in i productive investment or not in terms of improving productivity within the economy, some net zero spending for example installing a heat pump will stimulate some activity but it wont improve the productivity of the economy, its probably still the right thing to do the carbon reduction targets that we are committed to by law. Thats where the growth policy from the labour party is much broader than the net zero investment. Lets labour party is much broader than the net zero investment. Lets see if ou can the net zero investment. Lets see if you can stick the net zero investment. Lets see if you can stick to the net zero investment. Lets see if you can stick to it the net zero investment. Lets see if you can stick to it until the net zero investment. Lets see if you can stick to it until the i if you can stick to it until the next election. Darrenjones, thank you forjoining us. Lets get some reaction. My colleague isjust outside the houses of parliament. Im joined by representatives from the snp and Liberal Democrats. Wont waste any time, Richard Thomson mp and sarah olney mp. Welcome to bbc news. Another budget has been delivered its about getting reaction. First i want ask why the snp called for that vote when it would normally be a formality . It would normally be a formality . Ii was the first opportunity to record descent to the measures that were in the budget because all the tax measures have to be put forward in motion so it was an opportunity to vote against and record our descent. You wouldnt normally do that, would you . You wouldnt normally do that, would ou . , ,. , , you wouldnt normally do that, would ou . , you . Perhaps not but in this case its a budget you . Perhaps not but in this case its a budget that you . Perhaps not but in this case its a budget that so you . Perhaps not but in this case its a budget that so far you . Perhaps not but in this case its a budget that so far from i you . Perhaps not but in this case its a budget that so far from the | its a budget that so far from the mark of what was required in our view that we felt that was appropriate to do and we are now talking about what we oppose in the budget. Talking about what we oppose in the buduet. � , talking about what we oppose in the buduet. V. ,. Talking about what we oppose in the buduet. � ,. , ~. , talking about what we oppose in the buduet. � ,. ~. , talking about what we oppose in the buduet. � ,. , ~. ,. , budget. Lets talk about some of the nittygritty budget. Lets talk about some of the nittygritty. Obviously, budget. Lets talk about some of the nittygritty. Obviously, the nitty gritty. Obviously, the Scottish Parliament has some of its own tax raising powers but it doesnt over National Insurance for example. What do you make of this further reduction . Further reduction . Well, i think its a fairer further reduction . Well, i think its a fairer reduction further reduction . Well, i think its a fairer reduction than i further reduction . Well, i think its a fairer reduction than a i further reduction . Well, i think its a fairer reduction than a cut in the basic rate income tax. I think at this point it shows the skewed priorities of the government that at a time when Public Services are being starved of cash, particularly the nhs, when the Scottish Government is having its Capital Budget held back by 10 over the next few years, that theyve decided to try and cut tax. Its a pretty blatant ploy to curry favour with voters in the swing seats of the south and midlands of england. At a time when Public Services need more investment, it seems a strange choice and its the wrong choice analogy. Ii choice and its the wrong choice analo . ,. , ~ choice and its the wrong choice analo . ~ 3 choice and its the wrong choice analo . , ~ � ,. , analogy. If you think its the wrong choice are you analogy. If you think its the wrong choice are you planning analogy. If you think its the wrong choice are you planning to analogy. If you think its the wrong choice are you planning to raise i choice are you planning to raise income tax . Choice are you planning to raise income tax . , income tax . The Scottish Government will obviously income tax . The Scottish Government will obviously review income tax . The Scottish Government will obviously review this income tax . The Scottish Government will obviously review this budget i will obviously review this budget but will make choices in terms of having a more progressive tax system already in scotland. If you earn average wages or below in scotland youre already paying less in tax thanif youre already paying less in tax than if you live elsewhere in the uk. There are a range of benefits such as no tuition fees, free prescription charges and a number of others social goods. The prescription charges and a number of others social goods. Others social goods. The government sa s the others social goods. The government says the snp others social goods. The government says the snp would others social goods. The government says the snp would make others social goods. The government says the snp would make life others social goods. The government says the snp would make life harder| says the snp would make life harder for hard Working People and they described this ni reduction as a union tax. Described this ni reduction as a union tat union tax. That seems like a childish piece union tax. That seems like a childish piece of union tax. That seems like a childish piece of spin, i i union tax. That seems like a| childish piece of spin, i think union tax. That seems like a i childish piece of spin, i think if you asked people in england if they would like to lift children out of poverty, if they like paying some of the higher tuition fees in europe, certainly we are making life easier for everybody in scotland and using a progressive tax system to do that. This was a gimmicky budget that will quickly be seen for what it is. Gimmicky budget, lets move to the Liberal Democrats now, do you share that view . It Liberal Democrats now, do you share that view . , Liberal Democrats now, do you share that view . ,. , Liberal Democrats now, do you share that view . ,. , Liberal Democrats now, do you share that view . ,. ,. , that view . It was a desperate budget actually there that view . It was a desperate budget actually there be that view . It was a desperate budget actually there be people that view . It was a desperate budget actually there be people all that view . It was a desperate budget actually there be people all over actually there be people all over the uk actually there be people all over the uk who will have had the chance but found the uk who will have had the chance but found nothing in their that will really but found nothing in their that will really help them with the things they are really help them with the things they are concerned about. We note its about they are concerned about. We note its about the nhs, its about the cost of its about the nhs, its about The Cost Of Living crisis and there was very little cost of living crisis and there was very little in there for ordinary people very little in there for ordinary people who are struggling with costs iioiii people who are struggling with costs going up people who are struggling with costs going up everywhere. Theres very little going up everywhere. Theres very little in going up everywhere. Theres very little in their that will put pupils at ease little in their that will put pupils at ease. Ed little in their that will put pupils at ease. ,. ,. , little in their that will put pupils at ease. ,. ,. , at ease. Ed davey said it would be a swindle, at ease. Ed davey said it would be a swindle. Does at ease. Ed davey said it would be a swindle, does that at ease. Ed davey said it would be a swindle, does that mean at ease. Ed davey said it would be a swindle, does that mean you i at ease. Ed davey said it would be a swindle, does that mean you dont. Swindle, does that mean you dont agree with the ni cut . Haste swindle, does that mean you dont agree with the ni cut . Agree with the ni cut . We support an tax agree with the ni cut . We support any tax cut agree with the ni cut . We support any tax cut that agree with the ni cut . We support any tax cut that will agree with the ni cut . We support any tax cut that will help agree with the ni cut . We support any tax cut that will help people i any tax cut that will help people with the any tax cut that will help people with The Cost Of Living. With The Cost Of Living. What defines a with The Cost Of Living. What defines a swindle . With The Cost Of Living. What defines a swindle . What i with The Cost Of Living. What defines a swindle . What he| with The Cost Of Living. What defines a swindle . What he means is because of already defines a swindle . What he means is because of already planned defines a swindle . What he means is because of already planned tax i because of already planned tax rises, because of already planned tax rises, the because of already planned tax rises, the kinds of tax cuts, the ni cut wont rises, the kinds of tax cuts, the ni cut wont make a huge difference, people cut wont make a huge difference, people will still be paying more in tax the people will still be paying more in tax the next tax year as a result of the planned tax the next tax year as a result of the planned tax rises the government are hot the planned tax rises the government are not reversing. More cut is a very are not reversing. More cut is a very small are not reversing. More cut is a very small reduction in the amount of increase very small reduction in the amount of increase taxes people will be paying of increase taxes people will be a inc. ~. , of increase taxes people will be. A in. , , paying. What with the lib dems economic plan paying. What with the lib dems economic plan to paying. What with the lib dems economic plan to fund paying. What with the lib dems economic plan to fund public i economic plan to fund Public Services . Economic plan to fund Public Services . ,. ,. , , services . Our number one priority is the nhs and services . Our number one priority is the nhs and what services . Our number one priority is the nhs and what we services . Our number one priority is the nhs and what we saw services . Our number one priority is the nhs and what we saw today services . Our number one priority is the nhs and what we saw today was| the nhs and what we saw today was all the the nhs and what we saw today was all the chancellor really committed to is all the chancellor really committed to isjust all the chancellor really committed to isjust reversing their planned 2 billion to isjust reversing their planned 2 billion cut to isjust reversing their planned 2 billion cut in spending for the nhs. We know billion cut in spending for the nhs. We know that there are about 2. 8 million we know that there are about 2. 8 Million People currently on the sick list, Million People currently on the sick list. They Million People currently on the sick list, they cannot work because they ot list, they cannot work because they got conditions that are preventing them got conditions that are preventing them from going back to work and we want to them from going back to work and we want to see them from going back to work and we want to see people getting the treatment they need so they can get back to treatment they need so they can get back to their workplaces and that would back to their workplaces and that would be back to their workplaces and that would be a number one priority. We want would be a number one priority. We want to would be a number one priority. We want to increase the number of gps, to cut want to increase the number of gps, to cut Waiting Times, we want to invest to cut Waiting Times, we want to invest in to cut Waiting Times, we want to invest in cancer care because we know invest in cancer care because we know how invest in cancer care because we know how far behind we are entreating that. Those are the things entreating that. Those are the things we would really like to have seen in things we would really like to have seen in the things we would really like to have seen in the budget today. Sarah olney from seen in the budget today. Sarah olney from liberal seen in the budget today. Sarah olney from Liberal Democrats. Seen in the budget today. iv u olney from Liberal Democrats and Richard Thomson from the snp, thank you forjoining us. They have it, the views from Liberal Democrats and the views from Liberal Democrats and the snp, initial reaction. Its getting busy on College Green and a bit rainy and will have more reaction on the bbc news channel this afternoon. Studio thank you, will let you get shelterfrom studio thank you, will let you get shelter from the studio thank you, will let you get shelterfrom the rain studio thank you, will let you get shelter from the rain on College Green with the snp and Liberal Democrats. Lets welcome our guests to give us more reaction to the budget that we heard from jeremy hunt and the response by keir starmer, the leader of the opposition. Kate ferguson, welcome. Broadly, your reaction. Broadly, your reaction. There was no bi bunn broadly, your reaction. There was no big bunny rabbit. Broadly, your reaction. There was no big bunny rabbit. You broadly, your reaction. There was no big bunny rabbit. You always broadly, your reaction. There was no big bunny rabbit. You always wonderi big bunny rabbit. You always wonder whats going to be in the budget. If there is a bunny its the pledge to abolish mix which really came out. Its a direction of travel. That its a bit its a direction of travel. That its a bit of its a direction of travel. That its a bit of clear its a direction of travel. That its a bit of clear blue its a direction of travel. That its a bit of clear blue water l its a bit of clear blue water between them and labour if labour dont match it. There is a pathway there but i think one thing we can all be sure of this there wont be a may election. We all be sure of this there wont be a may election all be sure of this there wont be a ma election. ~. May election. We all agreed the same here. It may election. We all agreed the same here it didnt may election. We all agreed the same here. It didnt feel may election. We all agreed the same here. It didnt feel like may election. We all agreed the same here. It didnt feel like that, here. It didnt feel like that, despite keir starmer saying call a may election. Despite keir starmer saying call a may election despite keir starmer saying call a may election. There werent any of the uli , may election. There werent any of the glitzy, eyecatching, may election. There werent any of the glitzy, eyecatching, shiny the glitzy, eye catching, shiny giveaways and expect for an immediately pre election budget. I thought what the chancellor said at the end was really interesting because he talked about National Insurance penalising work, he called it a penalty on work and then he said he was reducing it before abolishing it and then combining it. He pulled back at the last minute and its worth remembering cut may sound impressive. Saving the average worker £900 a year, that works out at about £17 30 a week and thats that the average worker. Im not sure an extra £17. 30 a year will turn around the poles at this point. Well say goodbye to viewers on the bbc news channel what youre watching politics live special covering the budget and the analysis from the statement from the chancellorjeremy hunt with my guests here, kate ferguson, Rachel Cunliffe good afternoon and welcome to westminster, where the chancellor, jeremy hunt, has delivered whats likely to be the last budget before the general election telling mps his new policies would lead to long term growth and permanent tax cuts. He said he wanted his budget to unleash people power. Labour leader keir starmer called it the last desperate act of a party that has failed. Lets look at some of the key announcements. Starting with tax and income support, the chancellor has announced that National Insurance will be cut by another 2p. He says the cut, which will begin next month, is worth £450 a year for the average worker. The threshold for coyote and Child Benefit has been raised from £50,000 to £60,000. The non dom tax regime for uk residents whose permanent home is overseas will be replaced with new rules from april 2025. Mr hunt has also announced longer Repayment Period for people on benefits taking out emergency budgeting loans. He also announced a