Transcripts For BBCNEWS BBC 20240704 : comparemela.com

Transcripts For BBCNEWS BBC 20240704

Good evening. The chancellor has been putting his final touches to his budget as he prepares to unveil it tomorrow it could well be the last one before the General Election. What is now expected is a 2p cut to National Insurance and another freeze on fuel duty. But could jeremy hunt go even further . Our Political Editor chris mason is here with his thoughts but before we hear from Chris Our Economics Editor Faisal Islam has been weighing up how much room for Manoevre The Chancellor has. The chancellor is hoping to use his Big Red Box Moment tomorrow to declare a definitive economic Turning Point after years of crisis and shocks. Certainly the path and forecast for Inflation Looks like that. Look at this inflation is falling back from its Energy Shock Highs towards the Bank Of England target. On the other hand, its a little tricky to talk about a Turning Point when as you see here, the economy just started shrinkng at the end of last year you can see a shallow recession, but one nonetheless. And yet the Bank Of England is holding off immediate rate cuts. Those are the numbers across the whole economy but does this feel like a Turning Point in people s homes . One new lens on all this is looking at failed direct debits a measure of people running out of cash in their bank accounts. Injanuary overalli in 90 direct debits failed. The highest since this data was collected four years ago. Breaking it down into energy and mortgage direct debits and you get the same pattern of a peak in failed direct debits recently. In pounds these bills alone are together averaging an extra £310 per month on four years ago. And so that is the context for a National Insurance cut worth say £40 a month for one worker. In terms of household finances, difficult to call a Turning Point here. So no wonder the focus from the chancellor on trying to give some of the tax rises back in terms of tax cuts. He is constrained however by this chart the national debt. Its almost imperceptable but it is going down. Meaning his room for manoeuvre to hit his self imposed targets was only £13 billion a year and has actually fallen a little. So to fund another £10 billion 2p National Insurance cut, which is what is expected, we expect a further squeeze on public spending at a time when councils and prisons and courts are looking stretched. And some extra tax on e cigarettes, Holidays Homes and some flights. A big choice coming tomorrow at this budget with a plan for lower taxes and further public spending squeezes ahead of a General Election, whenever that comes. Joining me now is our Political Editor chris mason. The governments wants to talk about tax cuts tomorrow tell us how high taxes are and why . This is the big political context we must remember when we see what happens tomorrow, there was the pandemic and the energy shock as a result of the war in ukraine and that means there was these colossal state interventions, like the fellow skin, so big you can see them from space in the generational context of Government Spending furlough scheme. You can see taxes from space as well, they are at a decade long height, and that is the reality that will not go away whatever is announced tomorrow, however tax rises come about, they have come about by freezing the threshold at which we pay particular rates of tax so people end up paying more tax even though there has never been an announcement saying as much, it is rather stealthy, known by economists as fiscal drag, and millions of people can feel it and that is why right now people feel like they are paying a lot of tax because they are, at the point that Public Services actually feel squeezed. We will hear more from both of you in a moment. The leader of Birmingham City council has apologised unreservedly to People Living in the city after a series of cuts to local services was approved tonight as well as a 21 rise in council tax over the next two years. Some councillors on the labour Led Authority have called the move devastating. Birmingham, the largest local authority in europe, has declared itself effectively bankrupt and needs to make £300 million in savings. Our Political Correspondent alex forsyth reports. At this food bank in small heath, they know all about need. Run by a local mosque, theyre packing food parcels ahead of ramadan. We get approximately 30 to a0 food bank users, families, every week. Most of them are referrals from schools and from social workers, and theyre having to choose between heating, gas, electricity and food for their families. This is an area with real deprivation. As well as the food bank, the mosque helps with homelessness, Domestic Violence and runs Youth Services things they say will be under more strain as they try to pick up the slack left by Birmingham Council cuts. Its the youth that were really concerned about because this is a generational thing. If our youth today arent getting what they need, what impact is that going to have on them when they go to apply for jobs . We really, really need to have a Priority System for these deprived areas of birmingham. In the city centre, there was real anger outside as the council met and agreed extensive cuts across the board, while council tax will go up more than 20 over two years. Inside, there was a Blame Game Fingers pointed at the council over failings with equal pay and a flawed it system and at the government. My task is to address the problems that are unique to this council, problems for which i apologise unreservedly. But i do have to ask who is going to apologise for the prolonged neglect at National Level that has brought so Many Councils to the brink . Then the vote which approved a budget some here have called devastating. So far, a handful of other councils have found themselves in the same extreme situation as birmingham, where they are effectively bankrupt. But many more are warning of financial pressures, saying funding isnt keeping up with the cost of services. Councils in england were given some extra funding earlier this year. Tomorrow, the chancellors expected to warn them against wasteful spending, though many say moneys already stretched thin. In selly oak, jennifer knows too well the consequences when Council Services are under pressure. She advocates for people with Learning Disabilities and has a child with special educational needs, an area of particular worry for her. Ifeel as though Birmingham Council havent properly looked after their money, so its really, really important that the council really think about how its going to affect people with disabilities, because i feel as though were the invisible community, i feel as though were last to be thought about. The concern� s felt acutely here in birmingham, but its echoed more widely across the board, with tomorrows budget likely to see stretched councils asked to watch what they spend on rather than given rein to spend more. Alex forsyth, bbc news. Joining me now is our Political Editor chris mason and our economics editor faisal islam. What is the strategy likely to be from the chancellor . The economy needs lower from the chancellor . The economy needs lower taxes, from the chancellor . The economy needs lower taxes, a from the chancellor . The economy needs lower taxes, a bit from the chancellor . The economy needs lower taxes, a bit more from the chancellor . The economy| needs lower taxes, a bit more than it needs more spending as we have seenin it needs more spending as we have seen in the report, at the lower taxes should come in the form of lower National Insurance because that helps with the supply of hours worked which is a problem, the constraint in the economy, although we may get a longer term plan on taxes more generally, may be a down payment on the manifesto, but more generally, the biggest gamble is to call what we have a Turning Point in the economy, moment where we are still officially in a recession, albeit a mild recession, and at the same time when people feel at home and that the cost of living pressures, although they may be diminishing, they are very much still there. That is the broad vista. 15 still there. That is the broad vista. , ,. , still there. That is the broad vista. ,. ,. , still there. That is the broad vista. , ,. ,. ,. Vista. Is this the big one before a aeneral vista. Is this the big one before a General Election . Vista. Is this the big one before a General Election . Probably. Vista. Is this the big one before a General Election . Probably. The | General Election . Probably. The government General Election . Probably. The government is General Election . Probably. The government is running General Election . Probably. The government is running out General Election . Probably. The government is running out of. General election . Probably. The government is running out of a l General Election . Probably. The i government is running out of a set piece government is running out of a set piece moments, we can say, where they can piece moments, we can say, where they can use piece moments, we can say, where they can use the lever is on the stage they can use the lever is on the stage of they can use the lever is on the stage of government to try and change stage of government to try and change the political weather, and there change the political weather, and there are change the political weather, and there are tory mps who worry that a nationat there are tory mps who worry that a National Insurance cut, another one atter National Insurance cut, another one after the National Insurance cut, another one after the one of the autumn statement, they fear they might not et statement, they fear they might not get Political Bank for the brilliance of bach and they would rather brilliance of bach and they would rather see an Income Tax Cut that they rather see an Income Tax Cut that they think rather see an Income Tax Cut that they think is sexy and makes for a better they think is sexy and makes for a better headline, but the catch is that would cost more money. As for labour, that would cost more money. As for labour, they that would cost more money. As for labour, they will agree that these tax cuts, labour, they will agree that these tax cuts, Mass Market Tax Cuts on Income Tax Cuts, Mass Market Tax Cuts on income are tax cuts, Mass Market Tax Cuts on income are a tax cuts, Mass Market Tax Cuts on income are a good thing, and they will accept income are a good thing, and they will accept them, but the consequence for them of doing that is that consequence for them of doing that is that that leaves a hole in some of their is that that leaves a hole in some of their spending plans, so a choice for them of their spending plans, so a choice for them just as there are choices for them just as there are choices for the for them just as there are choices for the government. Labours attack line, whatever happens, will be whatever line, whatever happens, will be whatever the tax cuts amount to, they do whatever the tax cuts amount to, they do not whatever the tax cuts amount to, they do not counteract the tax rises that you they do not counteract the tax rises that you and i were talking about ust that you and i were talking about just a that you and i were talking about just a couple of minutes ago. The both of you. Just a couple of minutes ago. The both of you. We just a couple of minutes ago. Tue both of you, we will hear just a couple of minutes ago. Tt9 both of you, we will hear plenty more from you tomorrow. Thanks for joining us. Well have full coverage of the budget tomorrow from newcastle heres clive. Tomorrow night i will be here in the North East Of England bringing you the very latest analysis and reaction to the chancellors budget. That is on the bbc news at ten. Dojoin us. In america, voting is now underway in 15 states and one territory in what is known as super tuesday. Across the us, its the biggest day for voters in the 2024 race for the white house and the one day in the political calendar where most people vote to decide who will be the main candidates for november s president ial election. Historically, it gives us the clearest picture of how the election is shaping up. So far it looks like itll be a repeat of four years ago with donald trump poised to win the republican nomination after tonight and President Biden most likely on the democrat ticket. Live now to our North America editor sarah smith. Is donald trump poised to win . It certainly looks like it. I am at a Polling Station in virginia which is a state that he is expected to win and donna tom has predicted he will win all 15 states that have primaries today and donald trump has predicted. He has actually won other contest by one up to this point. He only has one challenge aloud, nikki haley, and there are signs she is preparing to pull out of the race and to drop her campaign and the moment she does that, donald trump would then become the presumptive nominee for the republican party. That is something we had predicted for weeks and months, so how much difference would actually make once it happens . It means that for him he can stop spending time and money campaigning against nikki haley and other rivals and he can train his fire onjoe biden who is almost certain to be the democratic nominee. By the end of this week you will feel as though we are already in the General Election campaign, donald trump Versusjoe Biden once again, the same candidates we had in 2020, even though polling suggests american voters, nearly 70 , do not want that choice, they want to vote for new candidates, but the other thing is it will give donald trump more time to concentrate on his legal cases this later this month the first criminal trial begins in new york. Sarah smith, thanks forjoining us. Now, one of the states voting tonight is colorado, four years ago democrats won there strongly with 55 of the vote. President biden is focused on standing in november but what does he need to do to make sure he stays in the white house . Emma vardy reports from colorado. Clawing your way up the approval ratings. Essential, if you want to persuade people to put you into the white house. But a problem forjoe biden is a lack of enthusiasm on his own side. Cat meows i know. I think hes done a decent job as president. But i do feel like theres a lot of doubts about his leadership ability, considering his age. I do worry about thats the guy weve put up. Is it enough to make you want to vote republican . I would maybe consider it if it was nikki haley. How worried do you think democrats are about losing to trump . I think they have already defeated themselves. Away from the ballot boxes, a cat cafe offers a little more comfort. Whatever your politics, voters on all sides here are unenthused about a trump versus biden rematch. Im completely uninterested in politics. Probablyjust because i lack enthusiasm about our democratic candidate. Ijust dont think he has really accomplished much. And hes old. Chiefs, or niners . Two great quarterbacks. But if age is just a state of mind, it hasnt stopped americas oldest ever president joining tiktok. Gamer commercials. Games . Theres concerns about Donald Trumps age too, of course. But analysts say where it is really emerging as an electoral problem is for democrats. This is something a lot of democrats are worried about, just watching the polls that show it mostly to be a pretty close race, possibly with trump in a slight lead. And i think the real trouble for democrats is that they dont really know what to do about it. So even if they could come up with an alternative candidate, its really not clear who that would be. Today, the president had more confidence in the numbers. My poll numbers, the last five polls you guys dont report, im winning. Five. Five in a row. Super tuesday has presented another problem. Six states have added the option for democratic voters to choose a non committed option on the ballot paper.

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