convenient fiscal rule from that oint. ., , ., , convenient fiscal rule from that oint. ., ,., , , point. the reason why it is important _ point. the reason why it is important is _ point. the reason why it is important is it _ point. the reason why it is important is it is _ point. the reason why it is important is it is because l point. the reason why it is . important is it is because that point. the reason why it is - important is it is because that cut in national insurance is going to add i% to peoples living standards after a cost of living crisis, that really matters. because of that decision, partly because of that decision, partly because of that decision, the avr upgraded their forecasts for growth next year by 0.5%. i think that is a pretty good thing for the country when we are emerging from a technical recession to see additional growth. i think thatis to see additional growth. i think that is very good for people struggling in the cost of living crisis but, over the period, borrowing is broadly the same, in fact. . . i, , borrowing is broadly the same, in fact. . ., i, , ., ., ., fact. the analysis again for the exerts fact. the analysis again for the exoerts of _ fact. the analysis again for the experts of who _ fact. the analysis again for the experts of who we _ fact. the analysis again for the experts of who we saw - fact. the analysis again for the l experts of who we saw yesterday shows that you would fail to meet three out of the four of your tory predecessors fiscal rules of those that have been in operation since 2010 and that this is, in fact, a rule that is very loose and implies, because it doesn't distinguish between capital investment spending and spending on current issues, that it keeps making it easy for capital expenditure to be cut, which are experts have read, if you read yesterday's sessions. by very critical of. ivy failed to meet three out of four of your conservatives predecessors fiscal rules? put into place fiscal rule that actually discourages capital investment when we need to reach the entire country for preparation for net zero. ., ., , ., net zero. your own party did not ob'ect net zero. your own party did not object when _ net zero. your own party did not object when i — net zero. your own party did not object when i changed _ net zero. your own party did not object when i changed the - net zero. your own party did not object when i changed the fiscal| object when i changed the fiscal rules and, rightly, the reason they didn't object is because, unlike the vast majority of my predecessor a chance of those, i have had the aftermath of a once in a century pandemic and a 19705 style energy shock, which is an utterly exceptional situation, as the distinguished economist that you heard from yesterday recognised and, if i had stuck with tighter fiscal rules, in that context, i would have had to do an even bigger consolidation than i had to do in the autumn statement of 22, which would have choked even more growth out of the economy, whether it was through spending cuts or tax rises, and i don't believe it would have at the healthy growth prospects that i was able to announce last week which basically say that, by the end of next year, we getting back to 2% growth a year, which is a world apart from where we have been for the last couple of years. so that is why i think it was the right thing to change the fiscal rules in the way that i did. in to change the fiscal rules in the way that i did.— to change the fiscal rules in the way that i did. in terms of capital sendina. way that i did. in terms of capital spending- i _ way that i did. in terms of capital spending. i wanted _ way that i did. in terms of capital spending. i wanted to _ way that i did. in terms of capital spending. i wanted to come - way that i did. in terms of capital spending. i wanted to come onto| spending. i wanted to come onto that. ,, ., spending. i wanted to come onto that, ,, ., ., , spending. i wanted to come onto that. ,, ., ., , , ., that. should i answer your question on that because _ that. should i answer your question on that because the _ that. should i answer your question on that because the prime - that. should i answer your question | on that because the prime minister, who was in myjob, increase capital spending by 20% in real terms in the spending by 20% in real terms in the spending review of 2020. the biggest ever increasing capital spending. and i have preserved, i think it is very important. i agree with the argument that investment, both public investment and private investment, is very important for growth. and that was why i did not do for it bbs chancellors have done when faced with a financial crunch which is cut capital spending, in cash terms. i was not able to protect it in real terms. i would like to continue to support capital spending going forward and, in fact, the £311 spending going forward and, in fact, the £31; billion nhs investment is additional capital spending but i think, in the circumstances, that was a proportionate thing to do. in evidence to the lord's first committee, richard hughes avr, as we all know, said it was generous to call your spending plans a work of fiction. ., ., , ., , ., fiction. you not been able to rovide fiction. you not been able to provide more _ fiction. you not been able to provide more certainty - fiction. you not been able to provide more certainty on i fiction. you not been able to l provide more certainty on your future spending plans? given that you've used a lot of the money that has made a lot of choices actually to cut taxes with the money in the future for departmental spending? he didn't say that yesterday and the comments, the earlier comments that he made were ahead of the budget. and the budget had a very lengthy section which explained what our approach to the spending assumption will be in a way that is designed to avoid austerity style cuts in public services that are valued by the public. we are going to launch the biggest ever public sector productivity programme starting with the nhs which is about 1;0% of expenditure which the nhs themselves independently assessed which means they will be able to increase their productivity by 1.9%, five years ahead. our intention is to replicate that across all public services. the 0pr that across all public services. the opr said that if you deliver that, and turn it into a cashable is saving and that is and if because it is a challenge to do that, but you can make £20 billion of savings and that way i think we will be able to make those very tight real terms increases in public spending sustainable.— increases in public spending sustainable. . , ~ , ., sustainable. finally, the avr stated that meeting _ sustainable. finally, the avr stated that meeting existing _ sustainable. finally, the avr stated that meeting existing commitmentsj sustainable. finally, the avr stated i that meeting existing commitments on health, defence, schools, and overseas aid spending would imply a real terms cut and all other departments of 2.3% and that includes four local authorities, one includes four local authorities, one in ten of whom are quite close to bankruptcy at the moment. how are those kinds of cuts, which are implied by these figures, ever going to be realised in reality.— to be realised in reality. welcome if ou to be realised in reality. welcome if you modernise _ to be realised in reality. welcome if you modernise the _ to be realised in reality. welcome if you modernise the way - to be realised in reality. welcome if you modernise the way public . if you modernise the way public services are delivered, as we have announce very detailed plans to do that for the nhs, you can get a 2% a year increase in productivity which addresses the majority of those noted cuts in spending and unprotected departments. because i think our unprotected departments. because i think your own _ unprotected departments. because i think your own red _ unprotected departments. because i think your own red book _ unprotected departments. because i think your own red book says - unprotected departments. because i think your own red book says that i think your own red book says that output from public services is still 5.9% lower than before the pandemic. can ijust, uncharacteristically, can i just, uncharacteristically, say can ijust, uncharacteristically, say something nice to you? | can ijust, uncharacteristically, say something nice to you? i shall en'o it say something nice to you? i shall enjoy it while _ say something nice to you? i shall enjoy it while it — say something nice to you? i shall enjoy it while it lasts. _ say something nice to you? i shall enjoy it while it lasts. thank - say something nice to you? i shall enjoy it while it lasts. thank you l enjoy it while it lasts. thank you for abolishing _ enjoy it while it lasts. thank you for abolishing the _ enjoy it while it lasts. thank you for abolishing the fee _ enjoy it while it lasts. thank you for abolishing the fee on - enjoy it while it lasts. thank you for abolishing the fee on the - enjoy it while it lasts. thank you | for abolishing the fee on the debt management order. we spoke on the committee _ management order. we spoke on the committee about the appropriateness of deht— committee about the appropriateness of debt management orders and people on low— of debt management orders and people on low incomes in debt so that is going _ on low incomes in debt so that is going to — on low incomes in debt so that is going to he — on low incomes in debt so that is going to be a good move for some people _ going to be a good move for some people and — going to be a good move for some people and a really hard space. following — people and a really hard space. following that, in november 22, shortly _ following that, in november 22, shortly before becoming chancellor, when asked about the non—dom tax loophole, _ when asked about the non—dom tax loophole, you said, i'm not going to do anything — loophole, you said, i'm not going to do anything that is going to damage the long—term attractiveness of the uk, even _ the long—term attractiveness of the uk, even though it gives easy shots to opposition parties. i think it would — to opposition parties. i think it would he — to opposition parties. i think it would be wrong to do things in terms of creating _ would be wrong to do things in terms of creating jobs in the uk. what made _ of creating jobs in the uk. what made you — of creating jobs in the uk. what made you do your big 360 degrees u-turn? _ made you do your big 360 degrees u-turn? ~ . ., made you do your big 360 degrees u-turn? ~ _, .. . , made you do your big 360 degrees u-turn? ~ . , . �* u-turn? welcome i actually haven't chan . e u-turn? welcome i actually haven't chance m u-turn? welcome i actually haven't change my position _ u-turn? welcome i actually haven't change my position on _ u-turn? welcome i actually haven't change my position on that - u-turn? welcome i actually haven't change my position on that but - u-turn? welcome i actually haven't change my position on that but i i change my position on that but i don't want to anything that is damaging to the competitiveness of the uk. ., ., ., the uk. non-dom tax loophole? exactl . i the uk. non-dom tax loophole? exactly. i resisted _ the uk. non-dom tax loophole? exactly. i resisted doing - the uk. non-dom tax loophole? | exactly. i resisted doing anything at that stage and i think at the chance of therefore just a few weeks that comment. and i was very concerned about the potential risks to investment in the uk, which i think is the single biggest thing that we need to sort out of going grow the economy. but i did look into the issue because i don't think there is anyjustification as to why anyone should pay a cheque and not paid the same tax as everyone into it, i had detailed discussions of experts in the field and i think i have come up with a programme that will not be damaging to uk competitiveness and investment in the economy and that is why... grieve on the november 2022? i was grieve on the november 2022? i was not wron: grieve on the november 2022? i was not wrong because _ grieve on the november 2022? i was not wrong because i _ grieve on the november 2022? i was not wrong because i said _ grieve on the november 2022? inert not wrong because i said then, as you quoted at me, i was not prepared to do anything which was damaging... which was about closing a non—dom tax loophole? | which was about closing a non-dom tax loophole?— tax loophole? i not going to rush into a policy _ tax loophole? i not going to rush into a policy until _ tax loophole? i not going to rush into a policy until i... _ tax loophole? i not going to rush into a policy until i... you - tax loophole? i not going to rush into a policy until i... you did - tax loophole? i not going to rush| into a policy until i... you did say that closing _ into a policy until i... you did say that closing that _ into a policy until i... you did say that closing that lipo _ into a policy until i... you did say that closing that lipo would - into a policy until i... you did say| that closing that lipo would mean iosing _ that closing that lipo would mean losing jobs in the uk and that is not the — losing jobs in the uk and that is not the case, isn't it? it is losing jobs in the uk and that is not the case, isn't it?— losing jobs in the uk and that is not the case, isn't it? it is a very comlex not the case, isn't it? it is a very complex area — not the case, isn't it? it is a very complex area of _ not the case, isn't it? it is a very complex area of tax _ not the case, isn't it? it is a very complex area of tax policy - not the case, isn't it? it is a very complex area of tax policy and l not the case, isn't it? it is a very complex area of tax policy and i | complex area of tax policy and i need to take some time and i've taken that time i think i've come up with a plan... was at the same reason that you decided to extend windfall tax because you said about extending it only a year ago? stopping investment, stop dependence on putin and increase energy prices? i do think that is what would happen if we follow the labour party policies because by getting rid of the allowances from investors in the north sea, i think investment would dry up completely and that would increase our energy dependence when we should be trying to be energy independent. and increase prices for consumers, but that is not what i have done. what i've done is recognise something has changed since we originally introduced the energy profits levy.— since we originally introduced the energy profits levy. what is next? private student _ energy profits levy. what is next? private student fees? _ energy profits levy. what is next? private student fees? know, - energy profits levy. what is next? private student fees? know, that l energy profits levy. what is next? | private student fees? know, that is not next. rachel— private student fees? know, that is not next. rachel rees _ private student fees? know, that is not next. rachel rees clearly - private student fees? know, that is | not next. rachel rees clearly seems to be our not next. rachel rees clearly seems to be your guru- _ not next. rachel rees clearly seems to be your guru. can _ not next. rachel rees clearly seems to be your guru. can answer- not next. rachel rees clearly seems to be your guru. can answer your i to be your guru. can answer your question? — to be your guru. can answer your question? what _ to be your guru. can answer your question? what has _ to be your guru. can answer your question? what has changed - to be your guru. can answer your question? what has changed is i question? what has changed is compared to 2022, an understanding that the war in ukraine is likely to last much longer than people originally thought at the time and therefore some of the higher prices creating unexpected profits for some energy companies are also likely to last longer and so, in that context, given that taxpayers have had to spend £91; billion in cost of living support forfamilies spend £91; billion in cost of living support for families tell people of higher energy prices amongst other increases, i thought it was reasonable to the energy profits levy tax by one and a half billion. my levy tax by one and a half billion. my worry is that you're going to start— my worry is that you're going to start looking to liz truss in order to meet— start looking to liz truss in order to meet your desire to abolish national— to meet your desire to abolish national insurance and give us £46 biiiion— national insurance and give us £46 billion worth of unfunded tax cuts. or are _ billion worth of unfunded tax cuts. or are you — billion worth of unfunded tax cuts. or are you just planning to scrap the state — or are you just planning to scrap the state retirement pension all together— the state retirement pension all together to meet that target? it together to meet that target? [it cannot together to meet that target? cannot be together to meet that target? it cannot be the case that i'm both following labour policy and following labour policy and following m5 truss's policy at the same you know, it's got to be one of the other. lets talk about the announcement that we want to abolish the double tax on work and first of all, the amount of money raised by national insurance does not determine the amount of money going into the state pension on the nhs. it has not done for very many decades. and the evidence for that is the budget. because the budget, we announced a £6 billion increase in funding we announced a £6 billion increase infunding forthe we announced a £6 billion increase in funding for the nhs and to be announced a £900 increase in the pension which is going up by eight and a half percent, which is around three times the rate of inflation. can i say this, though? that cutting national insurance was going to be something that would mean cutting funding for the something that would mean cutting funding forthe nhs, something that would mean cutting funding for the nhs, i would vote against it. what is interesting to me is that labour have been putting out this story today that they are supporting the cuts in national insurance and demanding that how it is labour mp5 can square with their conscience voting in favour of a cut in national insurance at the same vendor trying to scare everyone that it will mean cuts in funding for the nhs. 0n it will mean cuts in funding for the nhs. on a really serious issue, the one that is most important to me in of my constituents, and which you had so little to say on in the budget, housing. irate had so little to say on in the budget, housing.— had so little to say on in the buduet, housina. ~ ., ':: :: :: :: ':: budget, housing. we got 104,000, 410 families including _ budget, housing. we got 104,000, 410 families including children _ budget, housing. we got 104,000, 410 families including children living - families including children living in temporary accommodation at a cost of £16 _ in temporary accommodation at a cost of £1.6 billion. but worse than the money— of £1.6 billion. but worse than the money that— of £1.6 billion. but worse than the money that we are throwing away in that direction are that we have discovered that 55 children died between — discovered that 55 children died between 2019 and 23 as a result of living _ between 2019 and 23 as a result of living in— between 2019 and 23 as a result of living in temporary accommodation. the coroners report revealed that their— the coroners report revealed that their accommodation had a very significant — their accommodation had a very significant impact on their death and for— significant impact on their death and for the ones under one, it was probably— and for the ones under one, it was probably almost entirely because they did — probably almost entirely because they did not have access to a cart. would _ they did not have access to a cart. would you — they did not have access to a cart. would you agree with me that gives this country a sense of shame and what _ this country a sense of shame and what can— this country a sense of shame and what can you do to build more social housing _ what can you do to build more social housing units?— housing units? first of all i recognise _ housing units? first of all i recognise that _ housing units? first of all i recognise that we - housing units? first of all i recognise that we need - housing units? first of all i recognise that we need to | housing units? first of all i - recognise that we need to build housing units? first of all i _ recognise that we need to build more houses so i very much agree with you on that. and without, you know, trading party politics, as you have been more reasonable this afternoon than perhaps i was expecting, and very unfairly so. than perhaps i was expecting, and very unfairly 50. without doing that i would just point out that in terms of the number of houses built for which we have records committee is actually higher than were built under any year of the previous labour government and we need to do even better than that. so that is why we have introduced planning reforms, that is why we have got big plans to develop housing in cambridge... hang on, can ijust finish put up cambridge, london and the tilt of the outcome matters and the tilt of the outcome matters and the outcome is that we have built houses at a greater rate. we are on track to build a million additional houses in this parliament so that is a substantial uplift on what has happened under previous governments but we need to do more. this budget i would have liked to have had some measures that help people get on the housing ladder but it is difficult to

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