Hello there, welcome to newcastle, on the Dayjeremy Hunt delivered his budget, in what is almost certainly, a general election year. Were on the citys Iconic Quayside Overlooking the magnificent river tyne, an area steeped in industrial history, and weve been gauging reaction, to the chancellors plans. Among todays annoucements, the government is to cut National Insurance, by 2p in the pound for employees and the Self Employed. Full Child Benefits will be paid to households, where the highest earning parent, is getting up to £60,000. The current limit is £50,000. And, the non dom tax regime, for uk residents whose permanent home is overseas, is to be replaced with new rules, from april next year. Well, the office for budget responsibility, says the average tax payer, is going to pay more in the coming years. It predicts 37 pence of every pound will go in tax by 2029, which would be the highest level since 1948. While the government says public spending on some services will rise by 1 above inflation, some areas could still see cuts in the future. The 0br also predicts inflation will fall within a few months, and the uk economy will grow by 0. 8 this year, and 1. 9 in 2025. Here, sir keir starmer described the budget as, The Last Desperate Act of a party that has failed, and said the conservatives arent delivering the Growth Households need. Well be hearing from Colletta Smith whos with me here in newcastle, and darshini david, will be taking a look at all the numbers, but first, chris mason, is live at westminster. Evening to you, the political and economic backdrop is so stark tonight. What i do meanly that . The economy has been flat lining and the conservatives find their Opinion Poll Ratings in the gutter. So no chancellor could hope in one budget to turn both of those things around. It would be difficult in a whole sequence of budgets. So enterjeremy hunt, a man whose character and politics is defined by what he would see as a responsible caution, deploying that against that backdrop, where the conservatives fear political olive yon. Given that, this is what he had to say. Budget day from every angle. I5 that, this is what he had to say. Budget day from every angle. Is is an electionwinning budget day from every angle. I3 3 an election winning budget tradition, choreography and musical protest in whitehall. Jeremy hunt and his team in focus. I5 protest in whitehall. Jeremy hunt and his team in focus. And his team in focus. Is this reall a and his team in focus. Is this really a turning and his team in focus. Is this really a Turning Point and his team in focus. Is this really a Turning Point he and his team in focus. Is this| really a Turning Point he then ni ed really a Turning Point he then nipped back really a Turning Point he then nipped back into really a Turning Point he then nipped back into no really a Turning Point he then nipped back into no 11 really a Turning Point he then nipped back into no 11 and i really a Turning Point he then nipped back into no 11 and seconds later came out of no 10. Destination the house of commons. The chancellor. The house of commons. The chancellor. This the house of commons. The chancellor. This is the house of commons. The chancellor. This is a the house of commons. The chancellor. This is a budget| the house of commons. The chancellor. This is a budget during a recession. Chancellor. This is a budget during a recession, albeate chancellor. This is a budget during a recession, albeate mild chancellor. This is a budget during a recession, albeate mild one chancellor. This is a budget during a recession, albeate mild one and| a recession, albeate mild one and Interest Rates remain high, but he wanted to signal his instinct is to cut taxes. We wanted to signal his instinct is to cut taxes. ~ u, wanted to signal his instinct is to cut taxes. ~ u,. , wanted to signal his instinct is to cut taxes. ~ ,. ,. , cut taxes. We can help families not ust with cut taxes. We can help families not just with temporary cut taxes. We can help families not just with temporary costoflivingl just with temporary cost of living support, but with permanent cuts in taxation. , support, but with permanent cuts in taxation. ,. , taxation. Here was the Headline Measure on taxation. Here was the Headline Measure on that taxation. Here was the Headline Measure on that taxation. Here was the Headline Measure on that another taxation. Here was the Headline Measure on that another cut l measure on that another cut in National Insurance. Measure on that another cut in National Insurance. National insurance. From april em lo National Insurance. From april employ yes National Insurance. From april employ yes National National insurance. From april employ yes National InsuranceNational Insurance. From april employ yes National Insurance will cut by another 2p from 10 to 8 . And Self EmployedNational Insurance will be cut from 8 to 6 . And selfemployed National Insurance will be cut from 896 to 6 . Will be cut from 896 to 6 . National insurance will be cut from 896 to 696. National insurance was will be cut from 896 to 696. National insurance was cut will be cut from 896 to 696. National insurance was cut by will be cut from 896 to 696. National insurance was cut by 2p will be cut from 896 to 696. National insurance was cut by 2p In Will Be Cut from 896 to 696. National insurance was cut by 2p In The Will Be Cut from 896 to 696. National. Insurance was cut by 2p in the pound a few months back too. Insurance was cut by 2p in the pound a few months back too. When combined with the autumn a few months back too. When combined with the autumn reductions, a few months back too. When combined with the autumn reductions, it a few months back too. When combined with the autumn reductions, it means. With the autumn reductions, it means 27 million employees will get an average tax cut of £900 a year. Two million Self Employed without get a cut averaging £650. Changes that make our system simpler and fairer and changes that grow our economy by rewarding work. And changes that grow our economy by rewarding work rewarding work. There was this chan. E rewarding work. There was this change on rewarding work. There was this change on child rewarding work. There was this change on Child Benefits rewarding work. There was this change on Child Benefits from i rewarding work. There was this change on Child Benefits from next month a parent with earn more before losing it ida month a parent with earn more before losin |. ,. , month a parent with earn more before losin. ||. ,. ,. , losing it no one earning under £60,000 losing it no one earning under £60,000 will losing it no one earning under £60,000 will pay losing it no one earning under £60,000 will pay the charge. | losing it no one earning under £60,000 will pay the charge. Because of higher taper and threshold, nearly half a million families with children will save an average of £1,300 next year. To children will save an average of £1,300 next year. Children will save an average of £1,300 next year. To pay for the tax cuts, tax £1,300 next year. To pay for the tax cuts. Tax rises £1,300 next year. To pay for the tax cuts, tax rises on £1,300 next year. To pay for the tax cuts, tax rises on business £1,300 next year. To pay for the tax cuts, tax rises on Business Class cuts, tax rises on Business Class flights, holiday home owners, smoking and vaping. Duty on alcohol will be frozen, fuel duty has been frozen to. Then the moment of political theft. Frozen to. Then the moment of olitical theft. ,. , political theft. The government will abolish the tax political theft. The government will abolish the tax system political theft. The government will abolish the tax system for political theft. The government will i abolish the tax system for nondoms. Abolish the tax system for non doms. The Chancellor Nicking a labour idea to remove a tax perk from wealthy folk who live here, but whose home is abroad. I folk who live here, but whose home is abroad. , folk who live here, but whose home is abroad. ,. ,. , folk who live here, but whose home is abroad. ,. , , is abroad. I aim to please all sides ofthe is abroad. I aim to please all sides of the house is abroad. I aim to please all sides of the house in all is abroad. I aim to please all sides of the house in all my is abroad. I aim to please all sides of the house in all my budgets. I of the house in all my budgets. Keir starmer. Of the house in all my budgets. Keir starmer next of the house in all my budgets. Keir starmer. Next the of the house in all my budgets. Keir starmer. Next the reaction of the house in all my budgets. Keir starmer. Next the reaction from starmer. Next the reaction from the chancellors starmer. Next the reaction from the chancellors political starmer. Next the reaction from the chancellors political opponents starmer. Next the reaction from the chancellors political opponents had | chancellors political opponents had a familiar theme. A familiar theme. There we have it, the last desperate a familiar theme. There we have it, The Last Desperate Act a familiar theme. There we have it, The Last Desperate Act of a familiar theme. There we have it, The Last Desperate Act of a party The Last Desperate Act of a party that has The Last Desperate Act of a party that has failed. Britain in recession, the National Credit card maxed recession, the National Credit card maxed out recession, the National Credit card maxed out and despite the measures today, maxed out and despite the measures today, the maxed out and despite the measures today, the highest tax burden for 70 years today, the highest tax burden for 70 ears. � , w today, the highest tax burden for 70 ears. � ,. , today, the highest tax burden for 70 ears. � , w ,. , today, the highest tax burden for 70 ears. H years. Lets face it it is a last ditch approach years. Lets face it it is a last ditch approach to years. Lets face it it is a last ditch approach to recover years. Lets face it it is a last ditch approach to recover in l years. Lets face it it is a last i ditch approach to recover in the polls ditch approach to recover in the polls it ditch approach to recover in the polls it is ditch approach to recover in the polls. It is the ditch approach to recover in the polls. It is the embodiment ditch approach to recover in the polls. It is the embodiment of. Ditch approach to recover in the i polls. It is the embodiment of tory party polls. It is the embodiment of tory party before polls. It is the embodiment of tory party before the polls. It is the embodiment of tory party before the people. Polls. It is the embodiment of tory party before the people. At polls. It is the embodiment of tory party before the people. Polls. It is the embodiment of tory party before the people. A bottom of the barrel budget. Party before the people. A bottom of the barrel budget. Nothing party before the people. A bottom of the barrel budget. Nothing to party before the people. A bottom of the barrel budget. Nothing to makel the barrel budget. Nothing to make families better off, after the catastrophic fall in Living Standards we have seen under the conservatives. This standards we have seen under the conservatives. Standards we have seen under the conservatives. This afternoon i put. Uestions conservatives. This afternoon i put questions to conservatives. This afternoon i put questions to the conservatives. This afternoon i put questions to the chancellor conservatives. This afternoon i put questions to the chancellor on conservatives. This afternoon i put| questions to the chancellor on your behalf. I pointed out to him that he is taking £20 billion more in tax in five years time. People are being clobbered for all of the tax of cuts thatis clobbered for all of the tax of cuts that is baloney, people are paying more . ,. ,. , that is baloney, people are paying more . ,. ,. , more . One of the reasons tax recei ts more . One of the reasons tax receipts are more . One of the reasons tax receipts are higher more . One of the reasons tax receipts are higher is more . One of the reasons tax receipts are higher is because | more . One of the reasons tax i receipts are higher is because of the economy growing. People are a in the economy growing. People are paying more the economy growing. People are paying more. Yes, but the economy growing. People are paying more. Yes, but if the economy growing. People are paying more. Yes, but if you the economy growing. People are paying more. Yes, but if you take account of paying more. Yes, but if you take account of the paying more. Yes, but if you take account of the thresholds, paying more. Yes, but if you take account of the thresholds, what l account of the thresholds, what you will see next year is a big cut in Taxation Forfamilies will see next year is a big cut in taxation for families earning the average income is a significant cut. Tonightjackets off, the battle lines for the general election are becoming clearer the Economy Centre stage. We will get more from chris later. So, how do the announcements on taxes and spending, add up . Darshini david has been taking a look. That Famous Red Budget Box actually contained relatively modest treats overall prompting speculation of an autumn election, with another such event beforehand. And many people are still going to see tax bills rise heres how. Underpinning all his choices on tax and spending is this the public debt built up over time, relative to the size of the economy. To meet the rules mr hunt sets himself, this has to be falling in five years time. According to his independent forecasters it is, but only after rising first, and so slightly you can barely see it and with a tiny margin to spare. He 5 chosen to earmark cash for those tax cuts £12 billion worth by 2029 but the vast majority of that goes on that National Insurance cut. Some of that hes funded by raiding other pockets a new duty on vapes, a crack down on Tax Avoidance and from changing the treatment of non doms, those normally not classed as resident for tax purposes. But the money thatll be raised is particularly uncertain. However these all raise a tiny amount compared to tax rises already in train those not mentioned today. Welcome to fiscal drag. Each one of these represents a million income taxpayers in 2022. An earlier decision by the government not to raise the thresholds which different rates of taxes on income apply means many have had more syphoned off as tax. That policy creates four million more income taxpayers between 2022 and 2029 overall and Three Million more these in blue move into the 40p higher rate bracket. That will raise £40 billion in 2029 alone overshadowing todays tax cuts meaning that only workers earning between £25,000 and £60,000 then will be better off overall. And there was little extra earmarked for public spending. Jeremy hunt is promising a new drive to increase efficiency, but the numbers suggest future cuts in some areas such as local Government Services, universities and courts perhaps at least i2 by 2029 once inflation and population changes are allowed for. If were going to keep these tax cuts, we are going to get cuts in spending, if we are not going to get those cuts in spend, im afraid taxes will rise later on. And theres a mixed picture on growth. The chancellors independent forecasters indicate the recession will be short lived, but per person were typically £200 worse off after inflation this year than two years ago. But growth is expected to pick up we could be £1,700 better off in four years time. But such forecasts are uncertain. And they still point to voters perhaps heading to the polls feeling worse off. Plus, whoever wins that election may face an awkward decision to raise taxes soon, or confront a new era of intensified pressure on services. Public services may have to pay a heavy price for todays tax cuts. Clive. Thank you. So what else did the chancellor announce today . Therell be a new tax on vapes from october 2026, following a consultation. And a one off increase in tobacco duty, to ensure vaping remains cheaper than smoking. The chancellor also announced a one off adjustment, to the level of air passenger duty, for travellers with non economy tickets. And in an effort to m