Transcripts For BBCNEWS BBC 20240704 : comparemela.com

Transcripts For BBCNEWS BBC 20240704



dog, pom. pictures here of him out with his dog, poppy, in the early hours near downing street. some nice pictures. the chancellor has promised his plans will stimulate the flagging economy and help family with permanent tax breaks. labour will argue that any reductions will still leave people worse off because of the freezing of tax thresholds. so what could be expected in today's budget? ben king takes a look. the background to today's budget has been gloomy, with the economy in recession. but it looks like the chancellor will still find room to cut taxes. the conservatives are trailing labour in the polls, and looking forjeremy hunt to give them some cheer in places like this, winchester, a seat the lib dems hope to win. so what do people here think about tax cuts? i think it would be a good idea because it gives people more money to spend on what they want to buy. realistically, people aren't going to save that much money from a tax cut, whereas more money in public services means better health care services. it'sjust much more important. i would prefer not to have a tax cut, but to see more money- invested in the community. if the public services were properly organised, there's more than enough money to do it — this parliament has seen a record—breaking increase in taxation. that's partly because wages have been going up, but the thresholds where you start paying different rates, have not. the chancellor has said that he wants to cut taxes, but the government also has a pledge to make sure that the national debt is on course to fall in five years�* time. and it's the official forecaster, the office for budget responsibility, who decide whether that pledge is being met. and that works out as a big constraint on what the chancellor can do today. the traditional audience before budget day. some years, the chancellor can say that an improved economy has given him more flexibility, but probably not by much this time. the chancellor will almost certainly freeze fuel duty and he's expected to cut national insurance by 2p in the pound, worth around £450 a year to someone on a full time wage of 35,000. although pensioners are not affected, as they don't pay it. so he'll probably have to raise revenue somehow to balance it out, perhaps by scrapping tax breaks for nondoms, wealthy people who live overseas. he could raise duty on business class airfares, extend the windfall tax on oil and gas producers, and even put a tax on vapes. now, this is the first time there's ever been a cabinet in east yorkshire. the government's self—imposed rule is designed to show that it won't let the national debt rise out of control, but it's based on plans for future public spending that some feel are unrealistically low. and it depends on highly uncertain projections of what might happen in five years�* time. in recent years, we've seen chancellors increasing spending and cutting tax in the short term, but then promising to raise taxes and cut spending in the longer term. but that never happens. and as a result, we've just seen debt ratchet up in practice, rather than actually starting to come down. the chancellor says this will be a budget for long term economic growth, sketching out a path to morejobs, better public services and lower taxes. but will he also be able to provide the short term boost some in his party are hoping for? ben king, bbc news, winchester. joining me now is our political correspondent, leila nathoo. you are in downing street, leila, and our economics correspondent are to be mike andy verity who was in our newsroom. most are with you, i love. we know the cabinet has met and they have been briefed by the chancellor. ~ ., ., and they have been briefed by the chancellor-— and they have been briefed by the chancellor. ~ ., ., , ., chancellor. what more can you tell us? good morning, _ chancellor. what more can you tell us? good morning, the _ chancellor. what more can you tell us? good morning, the cabinet- us? good morning, the cabinet gathers before first thing and then within the next hour or so we will see jeremy within the next hour or so we will seejeremy hunt come out of number 11 with his big red box and his ii with his big red box and his treasury team as is customary before budget and before he heads over the parliament and then we will have prime minister's questions before the chancellor is on his feet. i think it interesting today that we have already one of the big headlines, pretty much nailed down that we are expecting this to p cut to national insurance. the chancellor has spoken for a long time and the prime minister about the intention to cut taxes and we know the chancellor cut national insurance by 2p already in the autumn statement and i came in in january so now we believe he is going to do the same again, hoping for another bounce, a bounce in the polls because there has been no discernible movement in the polls in the tories fibrous since the autumn statement that there is a lot going on behind the chancellor and the primacy position to cut tax and they feel people need to feel better off to neutralise the labour attack on government which is do you feel better off under tory government? they also want people to start spending more of that money that they have in their pockets and i hope that will kick—start growth and they also are mindful of demands from tory backbenchers who are serious about the state of high taxes and one taxes to come down and they think that record levels of taxes we are seeing is fundamentally un—conservative. there are a lot of pressures on the government cut taxes on that said, there are what we are hearing about inbounds report this idea that more people are paying higher levels of taxes because they have frozen the thrush also there's going to be a coroner and a rise in council tax so to some extent, anything the chancellor does today will be neutralised by what is being done elsewhere and what he has previously committed to enter the threshold already and then there is also the consequence of those tax cuts in public spending and that's another crucial area to watch out for. in order to release the money, they are going to try and come up with revenue raising ideas and they might also squeeze public spending plans further in the coming years and that's also something that labour would be mindful of in terms of their response. there is plenty to watch out for today, even if we know the headline already that the chancellor is intending to cut national insurance by two p. it sounds quite noisy where you are, lady. —— leila. we had harriett baldwin from a select committee on and about talk to about spending and whether there will be reductions in spending on care areas because they may have to give and she said there will still be a lot of spending and the spending, this is in the spending review and that there would continue to be investment in essential services.— continue to be investment in essential services. continue to be investment in essentialservices. ., ., essential services. what you make of that? the government _ essential services. what you make of that? the government does - essential services. what you make of that? the government does not - essential services. what you make of that? the government does not want to go in to this budget, orfor that matter, an election year with an austerity narrative. they don't want to be saying we are cutting public services, vote for us. but that is actually what is going on because if you look at the spending plans in the coming years, they are already pencilled in projected departments are unprotected such as health spending, but other departments are getting squeezed hugely on the government span and if they are planning to release further money to pay for tax cuts, we will have to watch what the spending plans are again going forward. i don't think that will be, i won't be a problem with the tories win the next election for them, will also be a labour problem because they will have to grapple with the spending plans as well and labour is already preparing the ground for this and it would be the worst inheritance since the second world war so there's no denying the reality of the situation. that said, what both parties will be banking on is to get growth going because they will say that if economy grows there will be more money on around and some of those predictions may be will not come to pass but we could get more money into public services and labour say they have to get these pots that they have ring fenced, things like putting vat on private school fees, things like extending a windfall tax on energy companies on they say do have these pots are earmarked for public spending if we win so it's quite complex picture but i think another dependent pointer grapple with is do people want tax cuts if it means a reduction in public spending on services? and i think that is something the government is clearly being weighing up and they have come down on the side of people would prefer to feel better off, having more money, could be more than money and they would try to do this in a broadway by targeting national insurance, tax and employees pay so that's abroad tax on workers and i think this is a broad appealing policy rather than targeting cat tax cuts for small groups of i have decided that this is more valuable to us as we go into this election year, and potentially a couple and potentially a couple months away from election rumours to be relieved that may is still on the cards but they think that will be more valuable to them and they might have a couple of tricks up their sleeve to lay down the gauntlet for labour in terms of nicking some of the revenue raising ideas. massive politics issues going on and also to remember that everybody�*s imperative history of the economy growing because of the economy can grow thus a silver bullet in a way because it means more money for everything. that is i think what we would expect the chancellor to say as well that not only is the budget putting more money in peoples pockets but also a budget designed, he says, to get long—term economic growth going. leila, in downing street, thank you very much for the moment and we will be back in downing street when we see the chancellor and his treasury team emerge. this break the economics down in a bit more detail. 0ur economics correspondent, andy verity, is in our newsroom. andy, what are the headlines of this budget, one of the headlines, is the 2p reduction in national insurance portfolio into that, i wonder if you could explain the concept of fiscal drag to our viewers and about tax thresholds because in real terms, people are paying more tax, is that correct? , ~ ., . ., ., correct? yes, i like a challenge on a tuesday — correct? yes, i like a challenge on a tuesday or _ correct? yes, i like a challenge on a tuesday or wednesday - correct? yes, i like a challenge onj a tuesday or wednesday morning. fiscal_ a tuesday or wednesday morning. fiscal drag — a tuesday or wednesday morning. fiscal drag is important because according — fiscal drag is important because according to some people who act like a _ according to some people who act like a stealth tax and while we may have helped line announcements of the chancellor giving us 2p in nationai— the chancellor giving us 2p in national insurance or giving us 2p last autumn and this budget, 4p national insurance or giving us 2p last autumn and this budget, tip in the pound — last autumn and this budget, tip in the pound altogether, that sounds really _ the pound altogether, that sounds really generous but will should remember that they have been taking far more _ remember that they have been taking far more than that from us because of fiscai— far more than that from us because of fiscal drag. you have a threshold below_ of fiscal drag. you have a threshold below which you do not pay tax and nationai— below which you do not pay tax and national insurance and that is currently— national insurance and that is currently £12,570. i use to rise with _ currently £12,570. i use to rise with inflation is what happens and if your— with inflation is what happens and if your pay— with inflation is what happens and if your pay rises, the threshold rises _ if your pay rises, the threshold rises with— if your pay rises, the threshold rises with age and the proportion of your pay— rises with age and the proportion of your pay that actually is exposed to tax is _ your pay that actually is exposed to tax is the _ your pay that actually is exposed to tax is the same so if you freeze the threshold, — tax is the same so if you freeze the threshold, the pay rises and a greater— threshold, the pay rises and a greater and greater proportion of your pay— greater and greater proportion of your pay is— greater and greater proportion of your pay is exposed to tax at a higher— your pay is exposed to tax at a higher rate so the more people who -et higher rate so the more people who get dragged into higher tax bands, people _ get dragged into higher tax bands, people that were below the basic threshold or people that were below the 40%_ threshold or people that were below the 40% threshold to get dragged into those tax bands as an earnings increase _ into those tax bands as an earnings increase. you may say it's a good thing _ increase. you may say it's a good thing earnings are increasing but this is— thing earnings are increasing but this is one — thing earnings are increasing but this is one of the biggest tax rise we have — this is one of the biggest tax rise we have seen in decades which was imposed _ we have seen in decades which was imposed iry— we have seen in decades which was imposed by rishi sunak at a time when _ imposed by rishi sunak at a time when we — imposed by rishi sunak at a time when we were going through a cost of livin- when we were going through a cost of living crisis— when we were going through a cost of living crisis so if you are trying to work— living crisis so if you are trying to work out _ living crisis so if you are trying to work out that metric as to whether— to work out that metric as to whether you are better off because of 2p whether you are better off because of 2u in— whether you are better off because of 2p in the pound and national insurance — of 2p in the pound and national insurance now and in the autumn, i have _ insurance now and in the autumn, i have some — insurance now and in the autumn, i have some figures for you. the resolution foundation did an analysis _ resolution foundation did an analysis. it adds up to 4p resolution foundation did an analysis. it adds up to tip in the pound _ analysis. it adds up to tip in the pound altogether a national insurance and that adds up to £1500 per year— insurance and that adds up to £1500 per year for— insurance and that adds up to £1500 per year for employees and if you look per year for employees and if you took at _ per year for employees and if you took at the — per year for employees and if you look at the round figures overall, it's something like £20 billion for cut in— it's something like £20 billion for cut in national insurance that the chancettor— cut in national insurance that the chancellor is giving to the working population, but the amount he has taken _ population, but the amount he has taken off— population, but the amount he has taken off the working population by freezing _ taken off the working population by freezing those tax thresholds by fiscal— freezing those tax thresholds by fiscal drag is 35 billion so you can see he _ fiscal drag is 35 billion so you can see he gives this much and he takes this much _ see he gives this much and he takes this much it — see he gives this much and he takes this much. it may be that when the budget— this much. it may be that when the budget comes up, he decides to go for an— budget comes up, he decides to go for an even— budget comes up, he decides to go for an even bigger giveaway. he may decide _ for an even bigger giveaway. he may decide the _ for an even bigger giveaway. he may decide the public finances are in sufficiently good shape, we know already— sufficiently good shape, we know already they are in better shape than _ already they are in better shape than the — already they are in better shape than the office for budget responsibility for the last time round — responsibility for the last time round if— responsibility for the last time round. if he thinks they are in good shape. _ round. if he thinks they are in good shape. he — round. if he thinks they are in good shape, he may do more and may do more and _ shape, he may do more and may do more and maybe do income tax, cut in income _ more and maybe do income tax, cut in income tax _ more and maybe do income tax, cut in income tax or— more and maybe do income tax, cut in income tax or a — more and maybe do income tax, cut in income tax or a cut in vat. the former— income tax or a cut in vat. the former would risk being seen as inflationary and he doesn't want to do a kwasi — inflationary and he doesn't want to do a kwasi kwarteng. a cut in vat coutd _ do a kwasi kwarteng. a cut in vat could he _ do a kwasi kwarteng. a cut in vat could be seen as anti—inflationary because _ could be seen as anti—inflationary because it — could be seen as anti—inflationary because it would mean lower prices and both— because it would mean lower prices and both of— because it would mean lower prices and both of those will be popular measure — and both of those will be popular measure for what people will be scrutinising is whether he is being reckless _ scrutinising is whether he is being reckless with the public finances. andy _ reckless with the public finances. andy verity, thank you very much for explaining that slightly complicated concept of fiscal drag very clearly. we will be back with you throughout the day. the budget is expected to be the last before the next general election and voters across the country will be listening closely to whatjeremy hunt has to say. what are you hoping for and how will it affect you and your household budget? our cost of living corresponding connor smith has been to warrington. it might not be ramsay street, but in this quiet corner of warrington... mil ramsay street, but in this quiet corner of warrington. .. all right? everybody _ corner of warrington. .. all right? everybody knows _ corner of warrington. .. all right? everybody knows their _ corner of warrington. .. all right? l everybody knows their neighbours. and this morning, i am joining a little gang and we are heading around to leap's house. the country feels like it — around to leap's house. the country feels like it has _ around to leap's house. the country feels like it has so _ around to leap's house. the country feels like it has so many _ around to leap's house. the country feels like it has so many big - feels like it has so many big decisions to make.- feels like it has so many big decisions to make. . ., decisions to make. andrew and helen are retired and _ decisions to make. andrew and helen are retired and have _ decisions to make. andrew and helen are retired and have three _ decisions to make. andrew and helen are retired and have three grown-upl are retired and have three grown—up girls. the youngest is at university and that is costing them lots. the rent we have _ and that is costing them lots. the rent we have to _ and that is costing them lots. the rent we have to pay, 12 months, but she's— rent we have to pay, 12 months, but she's only— rent we have to pay, 12 months, but she's only there for 25 weeks, 512.000 — she's only there for 25 weeks, £12,000 per year.— she's only there for 25 weeks, £12,000 per year. have you eaten into our £12,000 per year. have you eaten into your savings _ £12,000 per year. have you eaten into your savings cushion - £12,000 per year. have you eaten into your savings cushion sign? i into your savings cushion sign? massively. taste into your savings cushion sign? massively-— massively. we didn't go to university _ massively. we didn't go to university so _ massively. we didn't go to university so is _ massively. we didn't go to university so is brilliant. massively. we didn't go to university so is brilliant to | massively. we didn't go to i university so is brilliant to be massively. we didn't go to - university so is brilliant to be a part of that world for three or four years. but it does have an impact. money doesn't grow on trees, you gotta — money doesn't grow on trees, you gotta use _ money doesn't grow on trees, you gotta use what you've got. their eldest daughter _ gotta use what you've got. their eldest daughter works _ gotta use what you've got. their eldest daughter works full - gotta use what you've got. tue: " eldest daughter works full time gotta use what you've got. t'te: " eldest daughter works full time and is now renting as well. she eldest daughter works full time and is now renting as well.— is now renting as well. she has no chance on — is now renting as well. she has no chance on her— is now renting as well. she has no chance on her own. _ is now renting as well. she has no chance on her own. as _ is now renting as well. she has no chance on her own. as much - is now renting as well. she has no chance on her own. as much as i is now renting as well. she has no. chance on her own. as much as she loved to buy a house, it'sjust chance on her own. as much as she loved to buy a house, it's just not reality unless that changes in the budget. reality unless that changes in the bud . et. . ~ reality unless that changes in the budaet. w ., reality unless that changes in the budaet. xi ., ., ., reality unless that changes in the budaet. w' ., ., ., , reality unless that changes in the budaet. a ., ., ., , ., budget. nick from next door runs a lo . istics budget. nick from next door runs a logistics company. _ budget. nick from next door runs a logistics company. after _ budget. nick from next door runs a logistics company. after ending - budget. nick from next door runs a logistics company. after ending forj logistics company. after ending for a while they managed to buy last yearjust a while they managed to buy last year just as a while they managed to buy last yearjust as mortgages hit their peak so money is tight. if the chancellor because national insurance, as i could help? i chancellor because national insurance, as i could help? ithink it will be a — insurance, as i could help? ithink it will be a huge _ insurance, as i could help? ithink it will be a huge benefit, - insurance, as i could help? ithink it will be a huge benefit, not - insurance, as i could help? ithink it will be a huge benefit, notjustl it will be a huge benefit, notjust for people — it will be a huge benefit, notjust for people like _ it will be a huge benefit, notjust for people like myself— it will be a huge benefit, not just . for people like myself and lee, but also employees _ for people like myself and lee, but also employees of— for people like myself and lee, but also employees of my _ for people like myself and lee, but also employees of my business - for people like myself and lee, but also employees of my business asl also employees of my business as well _ also employees of my business as well. as— also employees of my business as well. �* , ., also employees of my business as well. a ., , .,, also employees of my business as well. a ., , ., also employees of my business as well. . , ., , ., ., ~ well. as more people are working from home _ well. as more people are working from home these _ well. as more people are working from home these days, _ well. as more people are working from home these days, if - well. as more people are working from home these days, if you - well. as more people are working from home these days, if you are | from home these days, if you are alleviating some of those issues, interest payments, mortgage payments, it has an impact on where you are every day. payments, it has an impact on where you are every day-— you are every day. most people in this area were _ you are every day. most people in this area were not _ you are every day. most people in this area were not class _ you are every day. most people in l this area were not class themselves are struggling, but now you are conscious of everything. constantly. the cost of — conscious of everything. constantly. the cost of food _ conscious of everything. constantly. the cost of food is _ conscious of everything. constantly. the cost of food is absolutely - the cost of food is absolutely noticeable. before we probably wouldn't have thought where we shopped but now we are definitely thinking about brands versus non—brands. thinking about brands versus non-brands.— thinking about brands versus non-brands. ., ., ,, ., non-brands. you are thinking of potentially _ non-brands. you are thinking of potentially topping _ non-brands. you are thinking of potentially topping up _ non-brands. you are thinking of potentially topping up your - non-brands. you are thinking of i potentially topping up your income by going part—time are looking for extra job. by going part-time are looking for extra 'ob. �* . , ., by going part-time are looking for extra 'ob. ~ . , ., , by going part-time are looking for extra “0b. a ., , , ., extra job. across our minds before christmas it _ extra job. across our minds before christmas it may _ extra job. across our minds before christmas it may maybe _ extra job. across our minds before christmas it may maybe that - extra job. across our minds before christmas it may maybe that was l extra job. across our minds before | christmas it may maybe that was an option— christmas it may maybe that was an option to _ christmas it may maybe that was an option to go back to work or part time _ option to go back to work or part time to— option to go back to work or part time to help pay some of our bills. being _ time to help pay some of our bills. being parents of the moment imagine that you have to manage childcare gusts, wraparound care, all of those extra bits and bobs and they really add up. extra bits and bobs and they really add u. . v extra bits and bobs and they really addu, extra bits and bobs and they really addu. ., add up. that's something you are alwa s add up. that's something you are always balancing _ add up. that's something you are always balancing because - add up. that's something you are always balancing because do - add up. that's something you arei always balancing because do they stay in _ always balancing because do they stay in school _ always balancing because do they stay in school longer, _ always balancing because do they stay in school longer, do - always balancing because do they stay in school longer, do they. always balancing because do they stay in school longer, do they goi always balancing because do they. stay in school longer, do they go on holiday— stay in school longer, do they go on holiday half— stay in school longer, do they go on holiday half term _ stay in school longer, do they go on holiday half term or— stay in school longer, do they go on holiday half term or do _ stay in school longer, do they go on holiday half term or do you - holiday half term or do you take time _ holiday half term or do you take time out — holiday half term or do you take time out of— holiday half term or do you take time out of your— holiday half term or do you take time out of your business? - holiday half term or do you take time out of your business? you| holiday half term or do you take - time out of your business? you think it's half— time out of your business? you think it's half term — time out of your business? you think it's half term coming _ time out of your business? you think it's half term coming up, _ time out of your business? you think it's half term coming up, we - it's half term coming up, we will all do _ it's half term coming up, we will all do something... _ it's half term coming up, we will all do something... find- it's half term coming up, we will all do something. . ._ it's half term coming up, we will all do something... and there are lookin: all do something... and there are looking forward to _ all do something... and there are looking forward to doing - all do something... and there are i looking forward to doing something with you _ looking forward to doing something with you. 335 looking forward to doing something with ou. �* , . looking forward to doing something with ou. ~ looking forward to doing something with ou. ,, ., with you. as a food bank volunteer helena seen _ with you. as a food bank volunteer helena seen how _ with you. as a food bank volunteer helena seen how much _ with you. as a food bank volunteer helena seen how much people - with you. as a food bank volunteer helena seen how much people are | helena seen how much people are struggling. it’s helena seen how much people are stru: culin. �*, helena seen how much people are struwlin, �*, , helena seen how much people are stru~lin~. v , ., struggling. it's so complicated to be working _ struggling. it's so complicated to be working full _ struggling. it's so complicated to be working full time _ struggling. it's so complicated to be working full time and - struggling. it's so complicated to be working full time and on - struggling. it's so complicated to l be working full time and on seeing people struggling. that's a bigger question than about why people are needing to access food banks to be able to feed their families. questions house is across the country are hoping the chancellor provides answers to today. collector smith, warrington. over two hours from now we will hear the chancellor address the mps in parliament and deliver this year's spring budget. we will have prime minister's questions at midday. that will go before that and we will then hear the budget statement. joining me is helen bernard, director of policy research and impact of the trussell trust. they are a charity which supports a national network of food banks. they provide emergency food and support people in poverty. welcome to bbc news. what are you hoping to hear from the trust? we news. what are you hoping to hear from the trust?— news. what are you hoping to hear from the trust? we want to hear him in dress the — from the trust? we want to hear him in dress the fighter _ from the trust? we want to hear him in dress the fighter we _ from the trust? we want to hear him in dress the fighter we have - in dress the fighter we have unprecedented levels of need for as a food and food banks are at breaking point and more than half people are on universal credit and they cannot afford to eat properly and millions are being pulled into debt to try to keep up with bills. at the moment, living standards of those in the lowest incomes are set to fall further this year because the cost of living payments are ending and there is no replacement plans and at the same time, the household support fund is due to end a few weeks and that is a vital lifeline in communities and councils use it provide grants, to replace mouldy bedding or mend a broken dishwasher to fund vital services and if that goes that's a gap charities and councils cannot fill so the chancellor needs to step up and provide better protection for people on lowest incomes and he needs to use universal credit to do that. that's the tool that has been designed for this job so he must boost the support because it's the government's most basic duty to protect the people who need it most and at the moment i'm afraid it is failing in their duty for the chancellor can change that today. we know one flagship measure that is going to be announced is 2p cut in national insurance, and we will see what comes up but there will have to be something taken from somewhere else to fund that but what do you make of that 2p cut? the else to fund that but what do you make of that 2p cut?— make of that 2p cut? the cut to national insurance, _ make of that 2p cut? the cut to national insurance, the - make of that 2p cut? the cut to national insurance, the group i make of that 2p cut? the cut to l national insurance, the group will benefit most is people earning around £50,000. anything earning less than £20,000 will lose out more from the threshold phrases than they were again and a lot of people will not gain anything because they already earn too little to be paying national insurance or they're not working because they're disabled or their carers. i'm afraid that will not provide the support to people on the incomes that we need to see on the incomes that we need to see on the danger is he partly funded by pencilling in even more cuts to public services post—election. and if those were ever enacted, that will be catastrophic. we already see food bank struggling to connect people with the right support because local public services are two other local charities are struggling so much that it would be unconscionable to make the situation worse and also to give tax cuts to people are fundamentally not struggling to put food on the table at the moment.— at the moment. food inflation has decelerated. _ at the moment. food inflation has decelerated, but _ at the moment. food inflation has decelerated, but only _ at the moment. food inflation has decelerated, but only by - at the moment. food inflation has decelerated, but only by about. at the moment. food inflation has decelerated, but only by about a l decelerated, but only by about a percent. the people you speak to, they are really struggling and they don't have choices about what to buy and thus the by country are food banks. , ., , , ., ., banks. the people we see have often been skipping — banks. the people we see have often been skipping meals _ banks. the people we see have often been skipping meals for _ banks. the people we see have often been skipping meals for quite - banks. the people we see have often been skipping meals for quite a - banks. the people we see have often been skipping meals for quite a long | been skipping meals for quite a long time, they have been going out without other essentials, they are in debt, they are lying awake all night worrying because they know they cannot pay the bills. people are getting socially isolated so people fall out of touch with family and friends because the counter for the bus fare and people are missing crucial hospital appointments because they cannot afford to get their and we know that the nation public health is a big concern, forcing so many millions of people to live in a situation where they cannot eat properly, they can keep warm, they cannot go to ascension appointments and is only going to mmp appointments and is only going to ramp up pressure on the nhs and public services.— public services. helen, thank you very much _ public services. helen, thank you very much for— public services. helen, thank you very much for sharing _ public services. helen, thank you very much for sharing your- public services. helen, thank you i very much for sharing your thoughts ahead of the budget. this take you back to the scene in downing street. that is the door of number 11 and we will later this morning see the chancellor emerged from that door with his treasury team, holding the famous red box which will contain the budget and thatis which will contain the budget and that is a moment we see every year and it will then be that he will travel to the houses of parliament behind me here. as happens every wednesday, prime minister's questions will take place from 12 p m to 12:30pm and 12:30pm that's when he will get his feet and address mps in the house of commons and deliver this year's spring budget but it's not an this year's spring budget but it's notan ordinary this year's spring budget but it's not an ordinary budget in the sense that this is the last budget before the next general election so as well as the economics that will all be dissecting, there are politics associated with this as well. and of course, after the chancellor delivers the budget, we will then hear from delivers the budget, we will then hearfrom sir keir starmer, the leader of the labour party and he will deliver a response as well in the house of commons as well. it's a busy afternoon and this morning, earlier, we saw the cabinet meet at number 10 downing street saw the chancellor has now briefed his cabinet colleagues about what exactly will be in the red box and what will be in the budget and you can see members of the cabinet they including home secretaryjames including home secretary james cleverly leaving including home secretaryjames cleverly leaving after the cabinet meeting today. away from westminster, there are people across the country who will be watching this closely, we are in the cost of living crisis and the uk economy is in recession and although it is a model and there are still many families across the country who will want to know how this will affect their balance. joining me now is councillor abbie brown, deputy chair of local government association. we talk about the impact this budget will have to people across the country. a lot of that comes through councils of course. what are your concerns and hopes in this budget today? i concerns and hopes in this budget toda ? ~' .., . concerns and hopes in this budget toda ? . ., , concerns and hopes in this budget toda ? ~' . ., , ., today? i think council leaders and council staff— today? i think council leaders and council staff across _ today? i think council leaders and council staff across the _ today? i think council leaders and council staff across the country i council staff across the country will look at interest to see what impact this will have on local authorities, i think we will be hoping for some positive news for us and the ultimate thing that would help local authorities is to have multi year settlement moving forward. fora number of multi year settlement moving forward. for a number of years we have had a year by year settlements which makes it very difficult for us to plan moving forward and obviously hoping there is recognition within the budget today of the pressure on local authorities are facing, particularly around adults and children social care.— children social care. many challenges _ children social care. many challenges for _ children social care. many challenges for councils . children social care. many - challenges for councils across the country the moment and we saw what happened in birmingham yesterday. it is going to be difficult decisions, obviously that's a separate situation away from the national budget but there are people in birmingham, it's a labour led council, who are blaming the national government. i council, who are blaming the national government.- council, who are blaming the national government. i think the reali is national government. i think the reality is that — national government. i think the reality is that the _ national government. i think the reality is that the money - national government. i think the reality is that the money the - national government. i think the l reality is that the money the local government has been receiving year—on—year has been reducing, whilst the level of demand we are having to dress as local authorities, it continues to grow, particularly in those important servicers such as adult children social care and so we are keen to ensure that that is reflected within the budget moving forward. it ensure that that is reflected within the budget moving forward. if there are reductions _ the budget moving forward. if there are reductions to _ the budget moving forward. if there are reductions to funding _ the budget moving forward. if there are reductions to funding for - the budget moving forward. if there are reductions to funding for local. are reductions to funding for local governments, where with the cuts bite? i governments, where with the cuts bite? ~' ., , ., bite? i think the reality of the statutory services, _ bite? i think the reality of the statutory services, adult - bite? i think the reality of the statutory services, adult and | statutory services, adult and children social care other things we to do what they are seen by runners small number of residents was generally those things are people to say once they step aside the door such as street lights, parks, libraries, all the nice thing is to have that extras that many people would consider notjust nice but essential so we are keen to ensure that we receive recognition of the pressure we are facing.— that we receive recognition of the pressure we are facing. there was a lot of talk yesterday _ pressure we are facing. there was a lot of talk yesterday about - pressure we are facing. there was a lot of talk yesterday about cuts - pressure we are facing. there was a lot of talk yesterday about cuts to i lot of talk yesterday about cuts to council schemes that promote equality and diversity.- council schemes that promote equality and diversity. what's your take on that? _ equality and diversity. what's your take on that? local _ equality and diversity. what's your take on that? local authorities - equality and diversity. what's your take on that? local authorities are experts at transforming the services. we have seen that through covid, moving forward as well around the great things local authorities do with the backbones of communities up do with the backbones of communities up and down the country. whilst there is always going to be the odd thing that pops up here and there that may be residents will raise their eyebrows at, the reality is some of those things that were raised nationally are issues of concern and they are small beer when it comes to the challenges local authorities are facing a need to fund a statutory services that support the most vulnerable in our communities. support the most vulnerable in our communities-— support the most vulnerable in our communities. ., ,, , ., , . ., communities. thank you very much for shafinu communities. thank you very much for sharing your — communities. thank you very much for sharing your perspective. _ this take you back to that live shot of downing street where we are waiting for the chancellorjeremy hunt to emerge with his treasury team at some point in the morning and it's two hours now until he will get to his feet in the house of commons behind me and delivered this year's budget. we already know is he is expected to cut national insurance for workers by another 2p insurance for workers by another 2p in the pound. it already fell by 2p in the pound. it already fell by 2p in the pound in last year's autumn statement and that came on in january of this year. mr hunt said that because of progress we have made we can now help families with permanent cuts in taxation. some in the conservative party wanted him to go even further and introduce cuts in income tax or an increase in the threshold is where it's paid, but we don't know what exactly he will stay until he stands on his feet but we have had it confirmed that there is going to be that national insurance reduction so it's unlikely, i would say, there's going to be any changes when it comes to income tax. joining me now is holly mackay, the founder of boring money and also a person who is struggling to make ends meet and also matthew mckenzie who was a working carer and the purpose of this discussion is to talk to people about how this budget may impact them. matthew, lis bt first. thanks forjoining us here on bbc news. tell us first of all about your situation and what you're hoping to get out this budget. mr; situation and what you're hoping to get out this budget.— get out this budget. my personal situation is _ get out this budget. my personal situation is i _ get out this budget. my personal situation is i am _ get out this budget. my personal situation is i am a _ get out this budget. my personal situation is i am a working - get out this budget. my personal situation is i am a working carerl get out this budget. my personal l situation is i am a working carer so i try my best to go out and contribute to society, i want to work, i don't want to be too reliant on the state, so i have my brother here, j, on the state, so i have my brother here,j, might on the state, so i have my brother here, j, might seem a bit quiet but here, j, might seem a bit quiet but he cannot speak for after advocate and support for him and i do get support what i really was hopeful forfor support what i really was hopeful for for this support what i really was hopeful forfor this budget support what i really was hopeful for for this budget is support for himself because in universal credit and anything that would make him and me want to stay works of this what i really want out of the budget, to be honest. i have got holly from borrowing money, money is anything but boring at the moment. you have looked at matthew's case and you have crunched some numbers, tell us what your take is on what you could get out of this budget. for is on what you could get out of this budaet. ., n, , ., budget. for matthew, there is not auoin to budget. for matthew, there is not going to be _ budget. for matthew, there is not going to be calls _ budget. for matthew, there is not going to be calls for— budget. for matthew, there is not going to be calls for excessive - going to be calls for excessive whoops ofjoy out of the budget today. the treasury cupboards are bare. we know there has been announced an increase in the mind of universal credit that matthew's brother will get. universal credit that matthew's brotherwill get. from universal credit that matthew's brother will get. from the 8th of april that will go up by about £25 a week. the best thing matthew could hope for would be an increase in the personal allowance he gets on income tax. that sounds dry and academic, but it is set at £12,570. if that were to go up, then matthew's earnings that he would not be taxed on could also go up. the thing we will be looking out for, is there any hope the chancellor would increase their personal allowance? if not, then matthew will stand to benefit from cuts and national insurance, but as the lower earner, they will be limited. there is an increase in universal credit, he will get a bit more in take—home pay from the national insurance, but other than that, i'm not hoping for much. ., ., , i. ., much. for our viewers, you about the threshold. and _ much. for our viewers, you about the threshold. and the _ much. for our viewers, you about the threshold. and the allowance. - much. for our viewers, you about the threshold. and the allowance. what l threshold. and the allowance. what is the difference?

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Transcripts For BBCNEWS BBC 20240704 : Comparemela.com

Transcripts For BBCNEWS BBC 20240704

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dog, pom. pictures here of him out with his dog, poppy, in the early hours near downing street. some nice pictures. the chancellor has promised his plans will stimulate the flagging economy and help family with permanent tax breaks. labour will argue that any reductions will still leave people worse off because of the freezing of tax thresholds. so what could be expected in today's budget? ben king takes a look. the background to today's budget has been gloomy, with the economy in recession. but it looks like the chancellor will still find room to cut taxes. the conservatives are trailing labour in the polls, and looking forjeremy hunt to give them some cheer in places like this, winchester, a seat the lib dems hope to win. so what do people here think about tax cuts? i think it would be a good idea because it gives people more money to spend on what they want to buy. realistically, people aren't going to save that much money from a tax cut, whereas more money in public services means better health care services. it'sjust much more important. i would prefer not to have a tax cut, but to see more money- invested in the community. if the public services were properly organised, there's more than enough money to do it — this parliament has seen a record—breaking increase in taxation. that's partly because wages have been going up, but the thresholds where you start paying different rates, have not. the chancellor has said that he wants to cut taxes, but the government also has a pledge to make sure that the national debt is on course to fall in five years�* time. and it's the official forecaster, the office for budget responsibility, who decide whether that pledge is being met. and that works out as a big constraint on what the chancellor can do today. the traditional audience before budget day. some years, the chancellor can say that an improved economy has given him more flexibility, but probably not by much this time. the chancellor will almost certainly freeze fuel duty and he's expected to cut national insurance by 2p in the pound, worth around £450 a year to someone on a full time wage of 35,000. although pensioners are not affected, as they don't pay it. so he'll probably have to raise revenue somehow to balance it out, perhaps by scrapping tax breaks for nondoms, wealthy people who live overseas. he could raise duty on business class airfares, extend the windfall tax on oil and gas producers, and even put a tax on vapes. now, this is the first time there's ever been a cabinet in east yorkshire. the government's self—imposed rule is designed to show that it won't let the national debt rise out of control, but it's based on plans for future public spending that some feel are unrealistically low. and it depends on highly uncertain projections of what might happen in five years�* time. in recent years, we've seen chancellors increasing spending and cutting tax in the short term, but then promising to raise taxes and cut spending in the longer term. but that never happens. and as a result, we've just seen debt ratchet up in practice, rather than actually starting to come down. the chancellor says this will be a budget for long term economic growth, sketching out a path to morejobs, better public services and lower taxes. but will he also be able to provide the short term boost some in his party are hoping for? ben king, bbc news, winchester. joining me now is our political correspondent, leila nathoo. you are in downing street, leila, and our economics correspondent are to be mike andy verity who was in our newsroom. most are with you, i love. we know the cabinet has met and they have been briefed by the chancellor. ~ ., ., and they have been briefed by the chancellor-— and they have been briefed by the chancellor. ~ ., ., , ., chancellor. what more can you tell us? good morning, _ chancellor. what more can you tell us? good morning, the _ chancellor. what more can you tell us? good morning, the cabinet- us? good morning, the cabinet gathers before first thing and then within the next hour or so we will see jeremy within the next hour or so we will seejeremy hunt come out of number 11 with his big red box and his ii with his big red box and his treasury team as is customary before budget and before he heads over the parliament and then we will have prime minister's questions before the chancellor is on his feet. i think it interesting today that we have already one of the big headlines, pretty much nailed down that we are expecting this to p cut to national insurance. the chancellor has spoken for a long time and the prime minister about the intention to cut taxes and we know the chancellor cut national insurance by 2p already in the autumn statement and i came in in january so now we believe he is going to do the same again, hoping for another bounce, a bounce in the polls because there has been no discernible movement in the polls in the tories fibrous since the autumn statement that there is a lot going on behind the chancellor and the primacy position to cut tax and they feel people need to feel better off to neutralise the labour attack on government which is do you feel better off under tory government? they also want people to start spending more of that money that they have in their pockets and i hope that will kick—start growth and they also are mindful of demands from tory backbenchers who are serious about the state of high taxes and one taxes to come down and they think that record levels of taxes we are seeing is fundamentally un—conservative. there are a lot of pressures on the government cut taxes on that said, there are what we are hearing about inbounds report this idea that more people are paying higher levels of taxes because they have frozen the thrush also there's going to be a coroner and a rise in council tax so to some extent, anything the chancellor does today will be neutralised by what is being done elsewhere and what he has previously committed to enter the threshold already and then there is also the consequence of those tax cuts in public spending and that's another crucial area to watch out for. in order to release the money, they are going to try and come up with revenue raising ideas and they might also squeeze public spending plans further in the coming years and that's also something that labour would be mindful of in terms of their response. there is plenty to watch out for today, even if we know the headline already that the chancellor is intending to cut national insurance by two p. it sounds quite noisy where you are, lady. —— leila. we had harriett baldwin from a select committee on and about talk to about spending and whether there will be reductions in spending on care areas because they may have to give and she said there will still be a lot of spending and the spending, this is in the spending review and that there would continue to be investment in essential services.— continue to be investment in essential services. continue to be investment in essentialservices. ., ., essential services. what you make of that? the government _ essential services. what you make of that? the government does - essential services. what you make of that? the government does not - essential services. what you make of that? the government does not want to go in to this budget, orfor that matter, an election year with an austerity narrative. they don't want to be saying we are cutting public services, vote for us. but that is actually what is going on because if you look at the spending plans in the coming years, they are already pencilled in projected departments are unprotected such as health spending, but other departments are getting squeezed hugely on the government span and if they are planning to release further money to pay for tax cuts, we will have to watch what the spending plans are again going forward. i don't think that will be, i won't be a problem with the tories win the next election for them, will also be a labour problem because they will have to grapple with the spending plans as well and labour is already preparing the ground for this and it would be the worst inheritance since the second world war so there's no denying the reality of the situation. that said, what both parties will be banking on is to get growth going because they will say that if economy grows there will be more money on around and some of those predictions may be will not come to pass but we could get more money into public services and labour say they have to get these pots that they have ring fenced, things like putting vat on private school fees, things like extending a windfall tax on energy companies on they say do have these pots are earmarked for public spending if we win so it's quite complex picture but i think another dependent pointer grapple with is do people want tax cuts if it means a reduction in public spending on services? and i think that is something the government is clearly being weighing up and they have come down on the side of people would prefer to feel better off, having more money, could be more than money and they would try to do this in a broadway by targeting national insurance, tax and employees pay so that's abroad tax on workers and i think this is a broad appealing policy rather than targeting cat tax cuts for small groups of i have decided that this is more valuable to us as we go into this election year, and potentially a couple and potentially a couple months away from election rumours to be relieved that may is still on the cards but they think that will be more valuable to them and they might have a couple of tricks up their sleeve to lay down the gauntlet for labour in terms of nicking some of the revenue raising ideas. massive politics issues going on and also to remember that everybody�*s imperative history of the economy growing because of the economy can grow thus a silver bullet in a way because it means more money for everything. that is i think what we would expect the chancellor to say as well that not only is the budget putting more money in peoples pockets but also a budget designed, he says, to get long—term economic growth going. leila, in downing street, thank you very much for the moment and we will be back in downing street when we see the chancellor and his treasury team emerge. this break the economics down in a bit more detail. 0ur economics correspondent, andy verity, is in our newsroom. andy, what are the headlines of this budget, one of the headlines, is the 2p reduction in national insurance portfolio into that, i wonder if you could explain the concept of fiscal drag to our viewers and about tax thresholds because in real terms, people are paying more tax, is that correct? , ~ ., . ., ., correct? yes, i like a challenge on a tuesday — correct? yes, i like a challenge on a tuesday or _ correct? yes, i like a challenge on a tuesday or wednesday - correct? yes, i like a challenge onj a tuesday or wednesday morning. fiscal_ a tuesday or wednesday morning. fiscal drag — a tuesday or wednesday morning. fiscal drag is important because according — fiscal drag is important because according to some people who act like a _ according to some people who act like a stealth tax and while we may have helped line announcements of the chancellor giving us 2p in nationai— the chancellor giving us 2p in national insurance or giving us 2p last autumn and this budget, 4p national insurance or giving us 2p last autumn and this budget, tip in the pound — last autumn and this budget, tip in the pound altogether, that sounds really _ the pound altogether, that sounds really generous but will should remember that they have been taking far more _ remember that they have been taking far more than that from us because of fiscai— far more than that from us because of fiscal drag. you have a threshold below_ of fiscal drag. you have a threshold below which you do not pay tax and nationai— below which you do not pay tax and national insurance and that is currently— national insurance and that is currently £12,570. i use to rise with _ currently £12,570. i use to rise with inflation is what happens and if your— with inflation is what happens and if your pay— with inflation is what happens and if your pay rises, the threshold rises _ if your pay rises, the threshold rises with— if your pay rises, the threshold rises with age and the proportion of your pay— rises with age and the proportion of your pay that actually is exposed to tax is _ your pay that actually is exposed to tax is the _ your pay that actually is exposed to tax is the same so if you freeze the threshold, — tax is the same so if you freeze the threshold, the pay rises and a greater— threshold, the pay rises and a greater and greater proportion of your pay— greater and greater proportion of your pay is— greater and greater proportion of your pay is exposed to tax at a higher— your pay is exposed to tax at a higher rate so the more people who -et higher rate so the more people who get dragged into higher tax bands, people _ get dragged into higher tax bands, people that were below the basic threshold or people that were below the 40%_ threshold or people that were below the 40% threshold to get dragged into those tax bands as an earnings increase _ into those tax bands as an earnings increase. you may say it's a good thing _ increase. you may say it's a good thing earnings are increasing but this is— thing earnings are increasing but this is one — thing earnings are increasing but this is one of the biggest tax rise we have — this is one of the biggest tax rise we have seen in decades which was imposed _ we have seen in decades which was imposed iry— we have seen in decades which was imposed by rishi sunak at a time when _ imposed by rishi sunak at a time when we — imposed by rishi sunak at a time when we were going through a cost of livin- when we were going through a cost of living crisis— when we were going through a cost of living crisis so if you are trying to work— living crisis so if you are trying to work out _ living crisis so if you are trying to work out that metric as to whether— to work out that metric as to whether you are better off because of 2p whether you are better off because of 2u in— whether you are better off because of 2p in the pound and national insurance — of 2p in the pound and national insurance now and in the autumn, i have _ insurance now and in the autumn, i have some — insurance now and in the autumn, i have some figures for you. the resolution foundation did an analysis _ resolution foundation did an analysis. it adds up to 4p resolution foundation did an analysis. it adds up to tip in the pound _ analysis. it adds up to tip in the pound altogether a national insurance and that adds up to £1500 per year— insurance and that adds up to £1500 per year for— insurance and that adds up to £1500 per year for employees and if you look per year for employees and if you took at _ per year for employees and if you took at the — per year for employees and if you look at the round figures overall, it's something like £20 billion for cut in— it's something like £20 billion for cut in national insurance that the chancettor— cut in national insurance that the chancellor is giving to the working population, but the amount he has taken _ population, but the amount he has taken off— population, but the amount he has taken off the working population by freezing _ taken off the working population by freezing those tax thresholds by fiscal— freezing those tax thresholds by fiscal drag is 35 billion so you can see he _ fiscal drag is 35 billion so you can see he gives this much and he takes this much _ see he gives this much and he takes this much it — see he gives this much and he takes this much. it may be that when the budget— this much. it may be that when the budget comes up, he decides to go for an— budget comes up, he decides to go for an even— budget comes up, he decides to go for an even bigger giveaway. he may decide _ for an even bigger giveaway. he may decide the _ for an even bigger giveaway. he may decide the public finances are in sufficiently good shape, we know already— sufficiently good shape, we know already they are in better shape than _ already they are in better shape than the — already they are in better shape than the office for budget responsibility for the last time round — responsibility for the last time round if— responsibility for the last time round. if he thinks they are in good shape. _ round. if he thinks they are in good shape. he — round. if he thinks they are in good shape, he may do more and may do more and _ shape, he may do more and may do more and maybe do income tax, cut in income _ more and maybe do income tax, cut in income tax _ more and maybe do income tax, cut in income tax or— more and maybe do income tax, cut in income tax or a — more and maybe do income tax, cut in income tax or a cut in vat. the former— income tax or a cut in vat. the former would risk being seen as inflationary and he doesn't want to do a kwasi — inflationary and he doesn't want to do a kwasi kwarteng. a cut in vat coutd _ do a kwasi kwarteng. a cut in vat could he _ do a kwasi kwarteng. a cut in vat could be seen as anti—inflationary because _ could be seen as anti—inflationary because it — could be seen as anti—inflationary because it would mean lower prices and both— because it would mean lower prices and both of— because it would mean lower prices and both of those will be popular measure — and both of those will be popular measure for what people will be scrutinising is whether he is being reckless _ scrutinising is whether he is being reckless with the public finances. andy _ reckless with the public finances. andy verity, thank you very much for explaining that slightly complicated concept of fiscal drag very clearly. we will be back with you throughout the day. the budget is expected to be the last before the next general election and voters across the country will be listening closely to whatjeremy hunt has to say. what are you hoping for and how will it affect you and your household budget? our cost of living corresponding connor smith has been to warrington. it might not be ramsay street, but in this quiet corner of warrington... mil ramsay street, but in this quiet corner of warrington. .. all right? everybody _ corner of warrington. .. all right? everybody knows _ corner of warrington. .. all right? everybody knows their _ corner of warrington. .. all right? l everybody knows their neighbours. and this morning, i am joining a little gang and we are heading around to leap's house. the country feels like it — around to leap's house. the country feels like it has _ around to leap's house. the country feels like it has so _ around to leap's house. the country feels like it has so many _ around to leap's house. the country feels like it has so many big - feels like it has so many big decisions to make.- feels like it has so many big decisions to make. . ., decisions to make. andrew and helen are retired and _ decisions to make. andrew and helen are retired and have _ decisions to make. andrew and helen are retired and have three _ decisions to make. andrew and helen are retired and have three grown-upl are retired and have three grown—up girls. the youngest is at university and that is costing them lots. the rent we have _ and that is costing them lots. the rent we have to _ and that is costing them lots. the rent we have to pay, 12 months, but she's— rent we have to pay, 12 months, but she's only— rent we have to pay, 12 months, but she's only there for 25 weeks, 512.000 — she's only there for 25 weeks, £12,000 per year.— she's only there for 25 weeks, £12,000 per year. have you eaten into our £12,000 per year. have you eaten into your savings _ £12,000 per year. have you eaten into your savings cushion - £12,000 per year. have you eaten into your savings cushion sign? i into your savings cushion sign? massively. taste into your savings cushion sign? massively-— massively. we didn't go to university _ massively. we didn't go to university so _ massively. we didn't go to university so is _ massively. we didn't go to university so is brilliant. massively. we didn't go to university so is brilliant to | massively. we didn't go to i university so is brilliant to be massively. we didn't go to - university so is brilliant to be a part of that world for three or four years. but it does have an impact. money doesn't grow on trees, you gotta — money doesn't grow on trees, you gotta use _ money doesn't grow on trees, you gotta use what you've got. their eldest daughter _ gotta use what you've got. their eldest daughter works _ gotta use what you've got. their eldest daughter works full - gotta use what you've got. tue: " eldest daughter works full time gotta use what you've got. t'te: " eldest daughter works full time and is now renting as well. she eldest daughter works full time and is now renting as well.— is now renting as well. she has no chance on — is now renting as well. she has no chance on her— is now renting as well. she has no chance on her own. _ is now renting as well. she has no chance on her own. as _ is now renting as well. she has no chance on her own. as much - is now renting as well. she has no chance on her own. as much as i is now renting as well. she has no. chance on her own. as much as she loved to buy a house, it'sjust chance on her own. as much as she loved to buy a house, it's just not reality unless that changes in the budget. reality unless that changes in the bud . et. . ~ reality unless that changes in the budaet. w ., reality unless that changes in the budaet. xi ., ., ., reality unless that changes in the budaet. w' ., ., ., , reality unless that changes in the budaet. a ., ., ., , ., budget. nick from next door runs a lo . istics budget. nick from next door runs a logistics company. _ budget. nick from next door runs a logistics company. after _ budget. nick from next door runs a logistics company. after ending - budget. nick from next door runs a logistics company. after ending forj logistics company. after ending for a while they managed to buy last yearjust a while they managed to buy last year just as a while they managed to buy last yearjust as mortgages hit their peak so money is tight. if the chancellor because national insurance, as i could help? i chancellor because national insurance, as i could help? ithink it will be a — insurance, as i could help? ithink it will be a huge _ insurance, as i could help? ithink it will be a huge benefit, - insurance, as i could help? ithink it will be a huge benefit, not - insurance, as i could help? ithink it will be a huge benefit, notjustl it will be a huge benefit, notjust for people — it will be a huge benefit, notjust for people like _ it will be a huge benefit, notjust for people like myself— it will be a huge benefit, not just . for people like myself and lee, but also employees _ for people like myself and lee, but also employees of— for people like myself and lee, but also employees of my _ for people like myself and lee, but also employees of my business - for people like myself and lee, but also employees of my business asl also employees of my business as well _ also employees of my business as well. as— also employees of my business as well. �* , ., also employees of my business as well. a ., , .,, also employees of my business as well. a ., , ., also employees of my business as well. . , ., , ., ., ~ well. as more people are working from home _ well. as more people are working from home these _ well. as more people are working from home these days, _ well. as more people are working from home these days, if - well. as more people are working from home these days, if you - well. as more people are working from home these days, if you are | from home these days, if you are alleviating some of those issues, interest payments, mortgage payments, it has an impact on where you are every day. payments, it has an impact on where you are every day-— you are every day. most people in this area were _ you are every day. most people in this area were not _ you are every day. most people in this area were not class _ you are every day. most people in l this area were not class themselves are struggling, but now you are conscious of everything. constantly. the cost of — conscious of everything. constantly. the cost of food _ conscious of everything. constantly. the cost of food is _ conscious of everything. constantly. the cost of food is absolutely - the cost of food is absolutely noticeable. before we probably wouldn't have thought where we shopped but now we are definitely thinking about brands versus non—brands. thinking about brands versus non-brands.— thinking about brands versus non-brands. ., ., ,, ., non-brands. you are thinking of potentially _ non-brands. you are thinking of potentially topping _ non-brands. you are thinking of potentially topping up _ non-brands. you are thinking of potentially topping up your - non-brands. you are thinking of i potentially topping up your income by going part—time are looking for extra job. by going part-time are looking for extra 'ob. �* . , ., by going part-time are looking for extra 'ob. ~ . , ., , by going part-time are looking for extra “0b. a ., , , ., extra job. across our minds before christmas it _ extra job. across our minds before christmas it may _ extra job. across our minds before christmas it may maybe _ extra job. across our minds before christmas it may maybe that - extra job. across our minds before christmas it may maybe that was l extra job. across our minds before | christmas it may maybe that was an option— christmas it may maybe that was an option to _ christmas it may maybe that was an option to go back to work or part time _ option to go back to work or part time to— option to go back to work or part time to help pay some of our bills. being _ time to help pay some of our bills. being parents of the moment imagine that you have to manage childcare gusts, wraparound care, all of those extra bits and bobs and they really add up. extra bits and bobs and they really add u. . v extra bits and bobs and they really addu, extra bits and bobs and they really addu. ., add up. that's something you are alwa s add up. that's something you are always balancing _ add up. that's something you are always balancing because - add up. that's something you are always balancing because do - add up. that's something you arei always balancing because do they stay in _ always balancing because do they stay in school _ always balancing because do they stay in school longer, _ always balancing because do they stay in school longer, do - always balancing because do they stay in school longer, do they. always balancing because do they stay in school longer, do they goi always balancing because do they. stay in school longer, do they go on holiday— stay in school longer, do they go on holiday half— stay in school longer, do they go on holiday half term _ stay in school longer, do they go on holiday half term or— stay in school longer, do they go on holiday half term or do _ stay in school longer, do they go on holiday half term or do you - holiday half term or do you take time _ holiday half term or do you take time out — holiday half term or do you take time out of— holiday half term or do you take time out of your— holiday half term or do you take time out of your business? - holiday half term or do you take time out of your business? you| holiday half term or do you take - time out of your business? you think it's half— time out of your business? you think it's half term — time out of your business? you think it's half term coming _ time out of your business? you think it's half term coming up, _ time out of your business? you think it's half term coming up, we - it's half term coming up, we will all do _ it's half term coming up, we will all do something... _ it's half term coming up, we will all do something... find- it's half term coming up, we will all do something. . ._ it's half term coming up, we will all do something... and there are lookin: all do something... and there are looking forward to _ all do something... and there are looking forward to doing - all do something... and there are i looking forward to doing something with you _ looking forward to doing something with you. 335 looking forward to doing something with ou. �* , . looking forward to doing something with ou. ~ looking forward to doing something with ou. ,, ., with you. as a food bank volunteer helena seen _ with you. as a food bank volunteer helena seen how _ with you. as a food bank volunteer helena seen how much _ with you. as a food bank volunteer helena seen how much people - with you. as a food bank volunteer helena seen how much people are | helena seen how much people are struggling. it’s helena seen how much people are stru: culin. �*, helena seen how much people are struwlin, �*, , helena seen how much people are stru~lin~. v , ., struggling. it's so complicated to be working _ struggling. it's so complicated to be working full _ struggling. it's so complicated to be working full time _ struggling. it's so complicated to be working full time and - struggling. it's so complicated to be working full time and on - struggling. it's so complicated to l be working full time and on seeing people struggling. that's a bigger question than about why people are needing to access food banks to be able to feed their families. questions house is across the country are hoping the chancellor provides answers to today. collector smith, warrington. over two hours from now we will hear the chancellor address the mps in parliament and deliver this year's spring budget. we will have prime minister's questions at midday. that will go before that and we will then hear the budget statement. joining me is helen bernard, director of policy research and impact of the trussell trust. they are a charity which supports a national network of food banks. they provide emergency food and support people in poverty. welcome to bbc news. what are you hoping to hear from the trust? we news. what are you hoping to hear from the trust?— news. what are you hoping to hear from the trust? we want to hear him in dress the — from the trust? we want to hear him in dress the fighter _ from the trust? we want to hear him in dress the fighter we _ from the trust? we want to hear him in dress the fighter we have - in dress the fighter we have unprecedented levels of need for as a food and food banks are at breaking point and more than half people are on universal credit and they cannot afford to eat properly and millions are being pulled into debt to try to keep up with bills. at the moment, living standards of those in the lowest incomes are set to fall further this year because the cost of living payments are ending and there is no replacement plans and at the same time, the household support fund is due to end a few weeks and that is a vital lifeline in communities and councils use it provide grants, to replace mouldy bedding or mend a broken dishwasher to fund vital services and if that goes that's a gap charities and councils cannot fill so the chancellor needs to step up and provide better protection for people on lowest incomes and he needs to use universal credit to do that. that's the tool that has been designed for this job so he must boost the support because it's the government's most basic duty to protect the people who need it most and at the moment i'm afraid it is failing in their duty for the chancellor can change that today. we know one flagship measure that is going to be announced is 2p cut in national insurance, and we will see what comes up but there will have to be something taken from somewhere else to fund that but what do you make of that 2p cut? the else to fund that but what do you make of that 2p cut?— make of that 2p cut? the cut to national insurance, _ make of that 2p cut? the cut to national insurance, the - make of that 2p cut? the cut to national insurance, the group i make of that 2p cut? the cut to l national insurance, the group will benefit most is people earning around £50,000. anything earning less than £20,000 will lose out more from the threshold phrases than they were again and a lot of people will not gain anything because they already earn too little to be paying national insurance or they're not working because they're disabled or their carers. i'm afraid that will not provide the support to people on the incomes that we need to see on the incomes that we need to see on the danger is he partly funded by pencilling in even more cuts to public services post—election. and if those were ever enacted, that will be catastrophic. we already see food bank struggling to connect people with the right support because local public services are two other local charities are struggling so much that it would be unconscionable to make the situation worse and also to give tax cuts to people are fundamentally not struggling to put food on the table at the moment.— at the moment. food inflation has decelerated. _ at the moment. food inflation has decelerated, but _ at the moment. food inflation has decelerated, but only _ at the moment. food inflation has decelerated, but only by - at the moment. food inflation has decelerated, but only by about. at the moment. food inflation has decelerated, but only by about a l decelerated, but only by about a percent. the people you speak to, they are really struggling and they don't have choices about what to buy and thus the by country are food banks. , ., , , ., ., banks. the people we see have often been skipping — banks. the people we see have often been skipping meals _ banks. the people we see have often been skipping meals for _ banks. the people we see have often been skipping meals for quite - banks. the people we see have often been skipping meals for quite a - banks. the people we see have often been skipping meals for quite a long | been skipping meals for quite a long time, they have been going out without other essentials, they are in debt, they are lying awake all night worrying because they know they cannot pay the bills. people are getting socially isolated so people fall out of touch with family and friends because the counter for the bus fare and people are missing crucial hospital appointments because they cannot afford to get their and we know that the nation public health is a big concern, forcing so many millions of people to live in a situation where they cannot eat properly, they can keep warm, they cannot go to ascension appointments and is only going to mmp appointments and is only going to ramp up pressure on the nhs and public services.— public services. helen, thank you very much _ public services. helen, thank you very much for— public services. helen, thank you very much for sharing _ public services. helen, thank you very much for sharing your- public services. helen, thank you i very much for sharing your thoughts ahead of the budget. this take you back to the scene in downing street. that is the door of number 11 and we will later this morning see the chancellor emerged from that door with his treasury team, holding the famous red box which will contain the budget and thatis which will contain the budget and that is a moment we see every year and it will then be that he will travel to the houses of parliament behind me here. as happens every wednesday, prime minister's questions will take place from 12 p m to 12:30pm and 12:30pm that's when he will get his feet and address mps in the house of commons and deliver this year's spring budget but it's not an this year's spring budget but it's notan ordinary this year's spring budget but it's not an ordinary budget in the sense that this is the last budget before the next general election so as well as the economics that will all be dissecting, there are politics associated with this as well. and of course, after the chancellor delivers the budget, we will then hear from delivers the budget, we will then hearfrom sir keir starmer, the leader of the labour party and he will deliver a response as well in the house of commons as well. it's a busy afternoon and this morning, earlier, we saw the cabinet meet at number 10 downing street saw the chancellor has now briefed his cabinet colleagues about what exactly will be in the red box and what will be in the budget and you can see members of the cabinet they including home secretaryjames including home secretary james cleverly leaving including home secretaryjames cleverly leaving after the cabinet meeting today. away from westminster, there are people across the country who will be watching this closely, we are in the cost of living crisis and the uk economy is in recession and although it is a model and there are still many families across the country who will want to know how this will affect their balance. joining me now is councillor abbie brown, deputy chair of local government association. we talk about the impact this budget will have to people across the country. a lot of that comes through councils of course. what are your concerns and hopes in this budget today? i concerns and hopes in this budget toda ? ~' .., . concerns and hopes in this budget toda ? . ., , concerns and hopes in this budget toda ? ~' . ., , ., today? i think council leaders and council staff— today? i think council leaders and council staff across _ today? i think council leaders and council staff across the _ today? i think council leaders and council staff across the country i council staff across the country will look at interest to see what impact this will have on local authorities, i think we will be hoping for some positive news for us and the ultimate thing that would help local authorities is to have multi year settlement moving forward. fora number of multi year settlement moving forward. for a number of years we have had a year by year settlements which makes it very difficult for us to plan moving forward and obviously hoping there is recognition within the budget today of the pressure on local authorities are facing, particularly around adults and children social care.— children social care. many challenges _ children social care. many challenges for _ children social care. many challenges for councils . children social care. many - challenges for councils across the country the moment and we saw what happened in birmingham yesterday. it is going to be difficult decisions, obviously that's a separate situation away from the national budget but there are people in birmingham, it's a labour led council, who are blaming the national government. i council, who are blaming the national government.- council, who are blaming the national government. i think the reali is national government. i think the reality is that — national government. i think the reality is that the _ national government. i think the reality is that the money - national government. i think the reality is that the money the - national government. i think the l reality is that the money the local government has been receiving year—on—year has been reducing, whilst the level of demand we are having to dress as local authorities, it continues to grow, particularly in those important servicers such as adult children social care and so we are keen to ensure that that is reflected within the budget moving forward. it ensure that that is reflected within the budget moving forward. if there are reductions _ the budget moving forward. if there are reductions to _ the budget moving forward. if there are reductions to funding _ the budget moving forward. if there are reductions to funding for - the budget moving forward. if there are reductions to funding for local. are reductions to funding for local governments, where with the cuts bite? i governments, where with the cuts bite? ~' ., , ., bite? i think the reality of the statutory services, _ bite? i think the reality of the statutory services, adult - bite? i think the reality of the statutory services, adult and | statutory services, adult and children social care other things we to do what they are seen by runners small number of residents was generally those things are people to say once they step aside the door such as street lights, parks, libraries, all the nice thing is to have that extras that many people would consider notjust nice but essential so we are keen to ensure that we receive recognition of the pressure we are facing.— that we receive recognition of the pressure we are facing. there was a lot of talk yesterday _ pressure we are facing. there was a lot of talk yesterday about - pressure we are facing. there was a lot of talk yesterday about cuts - pressure we are facing. there was a lot of talk yesterday about cuts to i lot of talk yesterday about cuts to council schemes that promote equality and diversity.- council schemes that promote equality and diversity. what's your take on that? _ equality and diversity. what's your take on that? local _ equality and diversity. what's your take on that? local authorities - equality and diversity. what's your take on that? local authorities are experts at transforming the services. we have seen that through covid, moving forward as well around the great things local authorities do with the backbones of communities up do with the backbones of communities up and down the country. whilst there is always going to be the odd thing that pops up here and there that may be residents will raise their eyebrows at, the reality is some of those things that were raised nationally are issues of concern and they are small beer when it comes to the challenges local authorities are facing a need to fund a statutory services that support the most vulnerable in our communities. support the most vulnerable in our communities-— support the most vulnerable in our communities. ., ,, , ., , . ., communities. thank you very much for shafinu communities. thank you very much for sharing your — communities. thank you very much for sharing your perspective. _ this take you back to that live shot of downing street where we are waiting for the chancellorjeremy hunt to emerge with his treasury team at some point in the morning and it's two hours now until he will get to his feet in the house of commons behind me and delivered this year's budget. we already know is he is expected to cut national insurance for workers by another 2p insurance for workers by another 2p in the pound. it already fell by 2p in the pound. it already fell by 2p in the pound in last year's autumn statement and that came on in january of this year. mr hunt said that because of progress we have made we can now help families with permanent cuts in taxation. some in the conservative party wanted him to go even further and introduce cuts in income tax or an increase in the threshold is where it's paid, but we don't know what exactly he will stay until he stands on his feet but we have had it confirmed that there is going to be that national insurance reduction so it's unlikely, i would say, there's going to be any changes when it comes to income tax. joining me now is holly mackay, the founder of boring money and also a person who is struggling to make ends meet and also matthew mckenzie who was a working carer and the purpose of this discussion is to talk to people about how this budget may impact them. matthew, lis bt first. thanks forjoining us here on bbc news. tell us first of all about your situation and what you're hoping to get out this budget. mr; situation and what you're hoping to get out this budget.— get out this budget. my personal situation is _ get out this budget. my personal situation is i _ get out this budget. my personal situation is i am _ get out this budget. my personal situation is i am a _ get out this budget. my personal situation is i am a working - get out this budget. my personal situation is i am a working carerl get out this budget. my personal l situation is i am a working carer so i try my best to go out and contribute to society, i want to work, i don't want to be too reliant on the state, so i have my brother here, j, on the state, so i have my brother here,j, might on the state, so i have my brother here, j, might seem a bit quiet but here, j, might seem a bit quiet but he cannot speak for after advocate and support for him and i do get support what i really was hopeful forfor support what i really was hopeful for for this support what i really was hopeful forfor this budget support what i really was hopeful for for this budget is support for himself because in universal credit and anything that would make him and me want to stay works of this what i really want out of the budget, to be honest. i have got holly from borrowing money, money is anything but boring at the moment. you have looked at matthew's case and you have crunched some numbers, tell us what your take is on what you could get out of this budget. for is on what you could get out of this budaet. ., n, , ., budget. for matthew, there is not auoin to budget. for matthew, there is not going to be _ budget. for matthew, there is not going to be calls _ budget. for matthew, there is not going to be calls for— budget. for matthew, there is not going to be calls for excessive - going to be calls for excessive whoops ofjoy out of the budget today. the treasury cupboards are bare. we know there has been announced an increase in the mind of universal credit that matthew's brother will get. universal credit that matthew's brotherwill get. from universal credit that matthew's brother will get. from the 8th of april that will go up by about £25 a week. the best thing matthew could hope for would be an increase in the personal allowance he gets on income tax. that sounds dry and academic, but it is set at £12,570. if that were to go up, then matthew's earnings that he would not be taxed on could also go up. the thing we will be looking out for, is there any hope the chancellor would increase their personal allowance? if not, then matthew will stand to benefit from cuts and national insurance, but as the lower earner, they will be limited. there is an increase in universal credit, he will get a bit more in take—home pay from the national insurance, but other than that, i'm not hoping for much. ., ., , i. ., much. for our viewers, you about the threshold. and _ much. for our viewers, you about the threshold. and the _ much. for our viewers, you about the threshold. and the allowance. - much. for our viewers, you about the threshold. and the allowance. what l threshold. and the allowance. what is the difference?

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