Were at westminster in our Budget Studio on the day chancellor Philip Hammond delivered his first budget. As the government prepares to start the process of leaving the eu within weeks the chancellor said the budget prepared britain for a brighter future. Borrowing forecasts have been revised downwards for the next few years. Theres more money for social care in england and a controversial move to raise National Insurance contributions for Self Employed workers. Labour accused the chancellor of producing a Budget Of Utter Complacency which ignored a crisis in Public Services. Well have details and reaction from westminster and beyond. But first lets take a look at those key announcements made by the chancellor earlier this afternoon. The chancellor announced a 1 increase in National Insurance bills for many Self Employed people plans that would raise £145 million a year by 2021 22 a pledge which appears to contradict a conservative manifesto pledge not to raise National Insurance. He
blanket rates and punishing those parts of an economy which don t actually have any money anyway and don t impact inflation and letting those with a lot of money, make some of the big corporate, just get away with the same interest rates, sorry, the same corporation tax rates, presence, my company pays. it isjust presence, my company pays. it is just ineffective. monetary policy is in effect of. isjust ineffective. monetary policy is in effect of.- policy is in effect of. ck, it is not as policy is in effect of. ck, it is not as though policy is in effect of. ck, it is not as though they - policy is in effect of. ck, it is not as though theyjust i policy is in effect of. ck, it - is not as though theyjust have one tool, he what you are saying about whether or not they increase or reduce rates, but various different central banks around the world have try different things, there has been quantitative easing, for example here in we have the ecb with their own monetary policy tool as
here she was giving the banks, giving the financial sector, lots of kisses in bankers l bonuses and lower corporation tax rates, and other lower tax| rates, and they rejected it. so where does she go from here? it s crystallised this sense | about the british economy that eunice is talking to in 2016, britain s economy was 90% of germany s - and that it is under 70% of germany s.j that s a pretty short time. there has been covid - but there has also been brexit. there s been low productivity which has been a consistent. problem for the british economy. just lowering taxes doesn t do that. i she thought she had the programme that could unite everybody and she had two years before the next election - to make it work. to have anything happen. now, what is she left with? is she a dead woman walking? uh, i wouldn t go that far, - but she has to pull something out, and the press conference today doesn t look like she s i got an awful lot of bright ideas. | how could she? she had them
to go ahead with the increase in corporation tax rates, pushing those up. that was due to come in next year. that is not going to happen, we have been told. many times by the chancellor. and they say that these two things are part of the same approach, if you like. this idea that the liz truss government wants to lower taxes as a way of promoting growth, believing that that will bring investment, that will bring greater productivity, and ultimately that higher growth will benefit living and but eué- 95 the ctr- mess ’ 7 saying e“é 9 1“ 2% ctr- mess ’ 7 7 saying that is critical, saying that this is going to huge unfunded burden onto to load a huge unfunded burden onto borrowing, that is a real to load a huge unfunded burden onto bor economyiat is a real benefits fall to the benefits will fall largely to the benefits will fall largely to the best of individuals. the
enemy of the good. once something is in place enemy of the good. once something is in place it enemy of the good. once something is in place it can be reformed and built in place it can be reformed and built upon in place it can be reformed and built upon and improved upon. but it s no built upon and improved upon. but it s no surprise the way the express has framed it s no surprise the way the express has framed the story. equally, it s no surprise has framed the story. equally, it s no surprise that others have done the same no surprise that others have done the same because it is a win for the chancellor the same because it is a win for the chancellor- chancellor. the express says it has emerued chancellor. the express says it has emerged the chancellor. the express says it has emerged the uk s chancellor. the express says it has emerged the uk s unmatched - chancellor. the express says it has emerged the uk s unmatched soft| emerged the uk s unmatched soft power