Transcripts For BBCNEWS The Budget 20171122

A budget as the leaves turned brown was Kenneth Clarke back in 1996. The following year, labours new chancellor, a young chap called gordon brown, delivered a summer budget following his partys landslide election victory. After that, budgets took place in the early spring and have remained there ever since. Until today. Well, just a few minutes ago, the chancellor emerged from number 11 downing street with the special red box containing the budget speech. The red box goes all the way back to gladstone when he was chancellor. The chancellor was accompanied by his treasury team, including elizabeth truss, the chief secretary, and his deputy in the department. Well be speaking to her once the budget has been revealed. The chancellor will have to sit through pmqs at noon. Hell be on his feet by 12 30, assuming the speaker sticks to time. Stay with us as we bring you the budget in full, expert analysis and reaction from across the political spectrum. Im outside parliament, gauging reaction from leading political figures and assessing how westminster will respond to todays budget. Im in peterborough, at a leading manufacturer of lorry trailers. The government has big plans to promote growth in this area so what will businesses in this region make of todays announcements . And the budget will have a big impact on your personal finances. Ill be taking your questions on how it affects you and your family. Keeping me company, and keeping me right, throughout todays four hour special, a trio of bbc expertise at its finest. Political editor laura kuenssberg, economics editor kamal ahmed, and Business Editor simon jack. As well as their on air comments, theyll be providing plenty of thoughts on social media as the speech unfolds. If you want to join the twitter conversation, use the hashtag budget2017. You can also email us at haveyoursay bbc. Co. Uk. Well try and put some of your tweets and emails to our experts during the programme. Well, the treasury has given this budget a name its called building a britain fit for the future. It just trips off the itjust trips off the tongue think of it as Philip Hammonds version of the long Term Economic plan. Remember that . The cabinet have been meeting in downing street this morning where the chancellor presented his budget. Of course, they can only rubber stamp it now. It is too late to change anything. He told cabinet collea g u es to change anything. He told cabinet colleagues he would set out a vision for post brexit britain. That would allow the country to grasp the opportunities that leaving the eu provides. A vision from Philip Hammond. Stay tuned for that. Laura, all budgets are political but this one has a high political bar to climb. It from what i see it is meant to stabilise a shaky government, stabilise a shaky Prime Minister, but keep the chancellor in hisjob. Minister, but keep the chancellor in his job. And as much as it has a high barof his job. And as much as it has a high bar of what it needs to achieve, it has a pretty low bar in terms of the scale of measures we actually expect. I think the biggest thing for Philip Hammond to do today is not dropped the ball, not mess up. Yes, the government is pretty shaky, bit wobbly, fragile certainly, probably the best word of use certainly, probably the best word of use certainly, probably the best word of use the best word to use about the state of affairs. There are people in the tory party, sitting on the benches behind him, some of them wa nt to the benches behind him, some of them want to see him gone. And thirdly, he has to try and show that he has been able to go some way of addressing the concerns among many members of the public that meant the tories lost their majority. So a very difficult cocktail of goals for him to try and score today, but i think today the Main Objective is dont mess up. The last time he was at the dispatch box he made a very big mistake and then did a dramatic screeching u turn a week later. Big mistake and then did a dramatic screeching uturn a week later. So the tory backbenches are nervous about this budget and worried if he is up to it . They certainly are. One cabinet minister said to me last week, things are very difficult. If it isa week, things are very difficult. If it is a difficult budget things could get very difficult. Talk about understatement. The government has gone from crisis to crisis in the last few weeks, whether that was over cabinet resignations or whether it was the ongoing drama and the pretty public scrapping of what is going on in the brexit negotiations. They have had to weather a series of cyclones, if you like, and there is a question of whether they are holding on and a budget to go wrong could be extremely serious for them. That said, as we have discussed on many occasions, the fundamentals of the tory party have not really changed. There is no one person who wa nts to changed. There is no one person who wants to stick their hand up and they move out, theresa, my turn. I think we should not overrate the idea that somehow Philip Hammond is auditioning today to keep hisjob. I am not sure we are in that territory. We will see. Kamal, budgets these days are all about borrowing and financing the deficits, this government has borrowed a tonne more money, it is going to borrow more, but there are constraints 7 going to borrow more, but there are constraints . Absolutely, andrew. Lets look at some of the economic challenges. Lets start with the all important challenges. Lets start with the all importa nt borrowing figures. That is the money the government used to cover the difference between what it spends and what it raises in taxes. Lets go back to march and the office for budget responsibility, the official government watchdog, and it forecast for the last Financial Year, borrowing would hit that big number, £51] borrowing would hit that big number, £51. 7 billion, then it would go down. Go up a little bit this Financial Year and then gently go down to the end of 2022 down to £16. 8 billion. It looks like the chancellor wants to stick to that target of balancing the books, wiping out the deficit by the middle of the next decade. But some good news here for the chancellor. Not a lot of it about the borrowing figures are slightly more positive than was expected. For the last Financial Year, borrowing is expected to come in at {115. 7 billion. Under what they thought. If thatis billion. Under what they thought. If that is reflected what is called the forecast period up to 2022, that means he could have a little more wriggle room on what he can spend. Said that undershoot could have an impact in the current Financial Year and the next one as well, but there is another issue as well . We have heard a lot about productivity. We know our productivity growth in recent yea rs know our productivity growth in recent years has been poor, it is a dominant in the western world, not just britain, but it has been particularly bad here. But there has 110w particularly bad here. But there has now been talk in the run up that because of poor productivity growth, that will impact on the deficit reduction plans. How does that work . All of the better news on borrowing, all of that frankly over the longer term could be blown out of the water by this productivity problem. Productivity is basically the way the economy produces wealth. As you say, it has been growing very slowly since the financial crisis. That matters because that hits Economic Growth and that means that the government simply does not receive the tax revenues that it might have expected, had the economy been growing more rapidly. Now, the obr has suggested that it is minded to substantially downgrade the productivity forecast for the future. If it does that, that could add as much as 53 billion pounds to the borrowing requirements of this government. That would completely screw up government. That would completely screw up the deficit reduction plans. Exactly. The institute for fiscal studies said last month if the prospects for productivity of very poor, that means by 2022, the borrowing requirement would go up to that big black bar on the far right of that chart, £69. 9 billion. That is very gloomy. It is pretty extreme . Yes, but what is important, andrew, it shows a small tweak on that productivity number has a big effect on the Public Finances. The problem is, the obr will say because of productivity growth not being that good, it will have the following bad impact on the deficit. But were not quite clear, it is a bit of a stretch to know what it is . That is true. It has an effect on peoples incomes as well. There has been some better news in the last three months. Productivity is up 1 after two quarters of decline, so maybe there is a bit of sunshine. We will see. It is a tricky one for the chancellor s. For all chancellors, all sorts of problems can be washed away if the government grows robustly because you get more tax revenue. Our robustly because you get more tax revenue. Oui economy robustly because you get more tax revenue. Our economy is growing but not robust lee, it would be fair to say . If we go back to what the obr forecast last march, they said growth would be a pretty respectable 296. Growth would be a pretty respectable 2 . That would help the Public Finances. This year, that forecast is likely to be downgraded. The bank of england suggested in its inflation report, that figure 16 for growth, we must expect that the obr will follow that lead from the bank of england, will degrade growth, and alongside the downgrading productivity, that means that these are two substantial headwinds that the government wants to hit this balancing the books target by the middle of the next decade. And the forecast on 2018 and 2019 growth were a bit gloomy already, they were around the 1. 6 mark so it does not look like a booming growth is his get out of jail card . No, and it will be adjusting to see what the obr will say about subsequent growth and also what it will say about the possible impact of brexit. Of course, they are forecasts, and although they dont like me mentioning it, the obr has been known to be wrong in the past but we will see what happens with the new ones. Simon, unusually for a tory government, a lot of people in the Business Community think this is an anti business government. They dont like a lot of the rhetoric, they dont think the government is doing much for business. So what are their expectations for today . Businesses dont like budgets. They think every bit of tinkering by the chancellor means they have to go back and change this. It is a lot of Administrative Burden for them. They have every reason to be suspicious of the government. There was the perceived attack on the self employed when they tried to increase National Insurance. They are dealing with auto enrolment for pensions, they got a big revaluation in parts of the country their Business Rates so they are feeling a bit dustup. And yet, the chancellor needs business to invest if hes going to unlock the productivity problem for the future. Businesses are saying there is too much month left at the end of the money. Are saying there is too much month left at the end of the moneylj are saying there is too much month left at the end of the money. I like that it is very hard for us to invest so help us to help you. They are hoping there will be little change. There are a couple of measures which might come in today, for example, Business Rates evaluation going from rpi inflation measure to a lower one. And then bring it forward more quickly. Things like that could help them but basically they are saying, dont do too much. The chancellor will say in 2010 the Corporation Tax was 22 and it is now 19 and headed down to 17. They will say we are helping you out. We have just been clearing our throats here. There will be plenty more from laura, kamaland throats here. There will be plenty more from laura, kamal and simon throughout this for our special. In a moment, we willjoinjo coburn in peterborough but first to jane hill on college green. Philip hammonds last budget back in march. Here we are again and it is november and no longer the autumn statement. Another budget. How much has changed since then. We have had the election, the government had a reduced majority and britain is on its path to get out of the eu. Lets have a reminder of how much has changed. The main rate for the self employed will increase to 10 . I have decided not to proceed with the class four measures set out in the budget. The article 50 process is under way and in accordance with the wishes of the british people the United Kingdom is leaving the European Union. I have just chaired a meeting of the cabinet where we agreed the government should call a general election. Labour will take our ra i lwa ys election. Labour will take our railways back into Public Ownership and put passengers first. What is britains deficit . Did somebody passing a piece of paper . What is out passing a piece of paper . What is our deficit. Not at all. The first ever proper plan to pay for and provide social care. Nothing has changed. We are offering a long Term Solution for the sustainability of social care for the future. What we are saying is the conservatives are the largest party. Note they do not have an overall majority at this stage. I hope you notice that, the chancellor giving something away free. Laughter. Just a reminder of what people at westminster and the country has been living through the last few months. We can discuss what Philip Hammonds task is today. Debbie abrahams is with me for labour and Theresa Villiers for the conservatives. As Philip Hammond left number 11 journalist called out, is this a make or break budget . It is, isnt it . It is an important budget, all of them are, and phillip faces a difficult task, team needs to keep is on the path to deal with debt but also find investment for peoplespriorities. Is there scope for that with the backdrop of brexit . He has limited headroom in terms of money available, parliamentary majorities, but he has headroom because of decisions he has taken as headroom because of decisions he has ta ken as chancellor, headroom because of decisions he has taken as chancellor, including adjustments to fiscal rules to reflect where we are and the emphasis, we have seen in terms of investing in research, technology, Computer Science, this is about making it a competitive economy and seizing opportunities not just making it a competitive economy and seizing opportunities notjust as a result of leaving the eu but in terms of technology. We will come back to some of this. What is labours role today . Your party is behind in the opinion polls on trust in the economy. We should say it is clear austerity over the last seven years has failed dismally and it is notjust me saying that in the labour party, it is the International Monetary fund, it is economists, and others who have said absolute failure. People will know this. Let me finish, jane. They want to know what you can pay for what you want to do. This is how we set out in the general election how we would pay for spending commitments, fully costed. People know that they are. Theirliving fully costed. People know that they are. Their Living Standards have gone down and their wages are no more than they were in 2008. What changes should Philip Hammond may . We have five priorities, first around Social Security and universal credit, pause and fix it. We know this will push a million more children into poverty as a result of cuts. A House Building programme. We just have to go to westminster to see people sleeping rough and it has doubled in the last seven years. 120,000 children in temporary accommodation. We need to make sure the Public Sector workers get a fair deal to stop the Public Sector pay cap which we would not would stimulate the economy. Austerity does not work. How do you respond to that, Theresa Villiers . Do you see an increase in rough slippers . The government is determined to tackle this and we want an end to rough sleeping and we have commitments in the manifesto. You have had seven years and it has got worse. The trouble with labours plans is they would involve a big increase in taxation for ordinary working families. Rubbish. They would involve more borrowing. Leaving future generations to pay for our debt. We need a balanced approach that recognises we still have not cleared the deficit, but we need to deal with debts at a pace that is consistent and we doing everything to support the economy and to Fund Public Services as generously as we can. On a political point, how vital is this performance for Philip Hammond . You are not going to be best friends, you are on different sides in the brexit debate. Is it make and break for his future . |j would make and break for his future . would not say i am on a different side to the chancellor. I worked with him in transport and i think he is talented. There is pressure on him today and there always is on the chancellor on budget day and i wish him well. They have not cleared the deficit they promised in 2015. Economic failure from this government. The nhs is in crisis. 30,000 additional deaths according to the british medicaljournal. We will discuss it after Philip Hammond has stood up at lunchtime. More passionate debate come from here. Thanks, jane. Good to see the arguments breaking out already. That bodes well for our discussions. Budgets watched closely by businesses and joe cockburn is at ain by businesses and joe cockburn is at a in peterborough. Iam in i am in peterborough, a city the conservatives lost to labour in the election and i am at one of the leading manufacturers of lorry trailers. It is a company that has expanded over the past years significantly. They employ around 250 people and their biggest concern, something they would like to see the chancellor address is productivity. It has been a buzzword over the past weeks. Who better to talk to the company than the managing director, welcome. And also toa managing director, welcome. And also to a local recruitment consultant. I talked about productivity, why is it important . We have invested heavily in the last three years in infrastructure, building some people and we need it to continue. The public have voted, brexit is on us, and we need breaks to carry out investment. What measures are you talking about . If you have money to spend why not invest . We need Capital Investment relief on taxation and we have a great workforce here, looking to grow with us asa workforce here, looking to grow with us as a Company Workforce here, looking to grow with us as a Company Grows workforce here, looking to grow with us as a Company Grows in peterborough. We need signs to get on with the situation we are in. One of the greatest barometers of Economic Performance is recruitment and job levels. What has it been like the last six months . We found after the result of brexit people held their breath for briefly. We had a couple ofjobs that went on hold but since then things have picked up enormously and i think people are moving on regardless. We cannot hold still that long. We have 18 months to go. We are dealing with entry level and managerial positions that are office based and we find business is good. One big issue people want a addressed is cost of living. The government talked about high employment levels but are those jobs paying enough to deal with rising inflation . I think in this area very much as across the country the average pay with you comes at 2 . The cost of inflation is 3 so there is a gap causing a problem. I think a there is a gap causing a problem. I thinka numberof there is a gap causing a problem. I think a number of companies are having to do interim pay reviews for specific people to retain those skills. We have an issue across the country and in peterborough with digital and it people because there are not enough to go around. They are not enough to go around. They are not enough to go around. They are not coming through. That is a problem. What would you like to see the chancellor do . I would like to see him make it easierfor the chancellor do . I would like to see him make it easier for Small Businesses. Peterborough has an higher than average number and we need those to boost the economy. We can catch up on some of the personal finance issues with our expert. Among the trucks and lorries there is so much to watch out for and we hope you will help us with your questions and comments. Stamp duty, will there be a holiday for First Time Buyers . Diesel, a tax on diesel drivers, will it go up . Income tax, will there be a trimming of tax breaks for pensioners and vat, will Small Businesses have to start charging it . And tax on alcohol and cigarettes has gone up already this year, will it happen ain . Already this year, will it happen again . You should send your comments to have your say. Back to you. We can now talk to james palmer, the metro mayor in this region. If there was one thing you would like the chancellor to do what would it be . We need to improve infrastructure. Investment by government to infrastructure is investing in the next generation and creates the opportunity for housing growth, none more so in cambridgeshire and peterborough. We have businesses like this that want to grow and we need to improve infrastructure to make sure they can deliver and bring Housing Forward to feed employment growth in this county. How much confidence do you have the chancellor will be radical enough . He is under pressure to do something dramatic, will he be able to deliver within the tight constraints . The chancellor by the nature of position is under pressure from everybody. I believe he can forge the right path and going the right direction. He can make the right decisions. It his chance to be on to be honest, to make sure devolved areas like cambridgeshire and peterborough can get on with the job. It is about people like myself also and the position i am in creating the environment where we can manage growth it comes to our area. How much a priority is the issue of pay for Public Sector workers . Pay rise for Public Sector workers . Pay rise for nurses and abuse to the nhs . M is key, that it is notjust Public Sector workers struggling with low pay increases. The economy is strong. We know we are creating jobs. We know we are creating jobs and being in work is better than being out of work but we know that people want more money and it is not just Public Sector workers, it is people across the board, people in this kind of industry. We have to be fairand look this kind of industry. We have to be fair and look after the entire population, not just fair and look after the entire population, notjust portions of it. That is it from us for the moment. Obviously returned to us soon. Thanks, jo, and you can also take advantage the bbcs range of expert analysis and all the latest budget news on the bbc website thats bbc. Co. Uk budget. Its nearly midday here at westminster. We can go back to the helicopter. You know it is an important occasion when there is a helicopter. We will go to the house of commons for Prime Ministers questions. Will the pay cap be scrapped . It already has been in a couple of areas. I expect the chancellor to set out further reform particularly for nurses but what i understand is crucially there will not be extra cash to go to Public Sector pay. If the unions, labour, people who are going home to and from Public Sector jobs thinking i have desperately decided i need a pay rise, if they think they will get it today, i understand they will not. There will be extra cash for the nhs but it is not clear how much more, not as much as the 4 billion they asked for. I expect the nhs would say if the people who decide nurses pay, which is not the nhs itself, so there should be an increase all of that extra money could be swallowed up immediately. Not a big check for Public Sector pay but further moves towards say the era when it was held down as a political promise, that is gone. Jeremy hunt said some time ago in the commons the pay cap had gone. I understand he is at a hospital somewhere today so there could be money. We are not sure if that is the case. There will be some extra money, not sure how much. There are a lot of bills in the chancellors in trade. He haps to find 2 billion on the u turn on National Insurance and the deal for Northern Ireland worth one billion and 2 billion for Affordable Homes, mrs may told us, Public Sector pay cap has to be paid for. There have been other spending commitments. I would suggest when you add it up and look at the difficulties he has with the deficit, he will loosen his belt. I have asked your question but you have not got time to answer it hold that thought and lets go to pmqs. Members across the house will want tojoin me in congratulating sarah clark inherited when as lady usher of the black rod. She will be the first woman to hold this role in its 650 year history and we offer her our best wishes. This morning i had meetings with ministerial colleagues and others. In addition to my duties, i will have further such meetings today. Mr speaker, the bbc are currently broadcasting drugsland, filmed in my constituency, showing the catastrophic impact of drugs laws on innocent bystanders. Well be Prime Minister commit to watching drugsland and Royal Commission on our drugs laws which are plainly failing . Im pleased to say that the home office under my right honourable friend the home secretary launched the drugs strategy only a matter of weeks ago. We recognise the importance of this issue. Drugs significantly affect peoples lives, and sadly we also see people driving asa and sadly we also see people driving as a result of taking drugs but also the criminal activity that takes place around drugs. We take this very seriously, that is why we have launched our strategy. Divorce and family breakdown takes an emotional toll on all those involved, but the finally dynamic often overlooked is that between grandparents and their grandchildren. If access to grandchildren. If access to grandchildren is removed or blocked, some grandparents call this a form of living bereavement. Will the Prime Ministerjoin me, dame esther ra ntzen, Prime Ministerjoin me, dame esther rantzen, and Prime Ministerjoin me, dame esther ra ntzen, and thousands Prime Ministerjoin me, dame esther rantzen, and thousands of grandparents across the country, to call for a change in the law to give access rights to grandchildren as is the case in france . My honourable friend is absolutely right that of course grandparents do play an Important Role in the lives of their grandchildren. We can all im sure sympathise with those who suffer anguish when they are prevented from seeing their grandchildren. When making decisions about a childs future, the first consideration must be the childs welfare. The law already allows family courts to order that a child should spend time with their grandparents and i understand my honourable friend has recently seen the minister for the state of justice recently seen the minister for the state ofjustice and im sure they will consider the points carefully. Jeremy corbyn. Thank you, mr speaker. Ijoined Jeremy Corbyn. Thank you, mr speaker. I joined the Jeremy Corbyn. Thank you, mr speaker. Ijoined the Prime Minister in congratulating the new usher of the black rod and i am pleased it is a woman who has got that position at last. I hope the whole house will join me in sending solidarity following the atrocious suicide bombing which killed 50 people in eastern nigeria. We should speak with sympathy for those who have lost loved ones and the obvious trauma they are all going through. Mr speaker, the irish Prime Minister who has discussed brexit with the British Government says sometimes it doesnt seem like they have thought all this through. So can the Prime Minister reassure him by plainly outlining the government policy on the irish border . First of all, i am glad the right honourable gentleman has welcomed the new lady usher of the black rod. I hope it will not ta ke the black rod. I hope it will not take 650 years before the labour party has a female leader. On the second issue. On the second issue that he raised, he referred to theissue issue that he raised, he referred to the issue of the attack that had taken place in eastern nigeria, and of course im sure the thoughts and condolences of the whole house will be with those affected by it. He also asked me to outline our policy between the border of an end and the republic of ireland. Im very happy to do so. We have done so on a number of occasions. We are very clear first of all in relation to the movement of people, the common travel area will continue to operate as it has done since 1923, and on trade and movement of goods and services across the board, we will not see a hard border being introduced. We have been very clear. Jeremy corbyn. Mr speaker, yesterday, the foreign secretary said there can be no border, that will be unthinkable. Maybe, but they have had 17 months to come up with an answer to this question, and there is still no answered the question because they have not engaged with the negotiations properly. There is another person who doesnt think the negotiations are going to and that is the right honourable member for woking, who are going to and that is the right honourable memberfor woking, who it was an ecclesiastic campaign for brexit, but also finds time to be the chief global strategist for Charles Stanley investments. And he recently advised clients to invest elsewhere as the uk is hitting the brakes. Does the Prime Minister take advice from the member for woking and does she agree with him . Wokingham. We have been engaging fully in the negotiations in relation to Northern Ireland and other issues with the negotiations, and indeed, significant progress has been made. That is why i have said we have got agreement on the operation of the common travel area for the future. He says we have not put any ideas about the board out, i have to say to him, we published a paper back in the summer on the hospital customs arrangements which could take place the possible customs arrangements which could ta ke customs arrangements which could take place. We are happy to move to further discussions of the customs and trading relationship we will have not just between and trading relationship we will have notjust between Northern Ireland and the republic, but between the United Kingdom and European Union. That does mean moving on to face two and the question for the right honourable gentleman, if he thinks it is so important, why do his meps vote against it . Mr speaker, the eus chief negotiator said this week the uk Financial Sector will lose its current rights to trade with europe. It seems neither eu negotiators or the government have any idea where this is going. Last week, the brexit secretary said he would guarantee Free Movement for bankers post brexit. Are there any other groups to whom the Prime Minister believes freedom of movement should apply, nurses, doctors, teachers, scientists, agricultural workers, ca re scientists, agricultural workers, care workers . Im very interested that the right honourable gentleman has found that his appearances at Prime Ministers questions have been going so well, he has had to borrow a question from the leader of the liberal democrats, which he asked me last week. Perhaps the leader of the opposition should pay more attention to what happens in Prime Ministers questions. We have been absolutely clear that we will be introducing new immigration rules and as we introduce them we will take account of the needs of the british economy in doing so. That is why the home secretary has asked the Migration Advisory Committee to killer attention to migration coming into the United Kingdom. We want to get on to deal with the question of the future trading relationship, but iam also the future trading relationship, but i am also optimistic about the opportunities that will be available to this country and about the deal we can get from the negotiations we are having. The right honourable gentleman cannot even decide if he wa nts to gentleman cannot even decide if he wants to be in the customs union, out of it, in the single market, out of it. He needs to get his act together. In april, the brexit secretary was confident the European Banking Authority would be staying in london. Now he cant even guarantee banks having a right to trade with europe. Last week, the government voted down labours amendments to protect workers rights. The foreign secretary described employment regulation as andi described employment regulation as and i quote backbreaking. And repeatedly promised to and i quote again scrap the social chapter. Why when she guarantee workers rights order she agree with the foreign secretary on these matters . We have guaranteed workers rights. We have introduced a bill in the house of commons to guarantee workers rights and the labour party voted against it. Mr speaker, the record is clear, this government voted down our amendment to protect workers rights. The environment secretary said he wanted a green brexit. Yet again, conservative mps voted down labours amendments to guarantee environmental protection. On the 5th of december, mr speaker, the european financial summit takes place to address the issue of tax dodging as exposed by the Paradise Papers. There are three proposals on the table, to blacklist tax havens like bermuda, nude transparency rules to tax intermediaries, and mandate three country by country reporting for profit. Will the Prime Minister back these proposals, or is she is still threatening to turn britain into a tax haven . she is still threatening to turn britain into a tax haven . I will ta ke britain into a tax haven . I will take no lectures from the labour party on dealing with tax avoidance and tax evasion. £160 billion more taken as a result of action taken by conservatives in government. 75 new measures to deal with tax avoidance and tax evasion. And i am pleased to say, recently, hmrc won an important case on tax avoidance in the supreme court, which means a further one point £1 billion coming to the United Kingdom. He may talk about tax avoidance and tax evasion, it is this government which takes action and makes sure we collect it. Her predecessor block eu wide proposals for a public register of trust and again, the conservative mps have voted down labours amendments to deal with tax avoidance. Mr speaker, when it comes to brexit, this government is a shambles. Order order far too many members are gesticulating on both sides of the house in a frenetic and frankly, outlandish fashion. I say to the honourable member, he should seek to imitate the zen like calm and statesmanship of the father of the house. MrJeremy Corbyn. I have much in common with the venom, mr speaker. I have much in common with zen, mr speaker. Mr speaker. 17 months after the referendum, they say there can be no ha rd referendum, they say there can be no hard border but havent worked out how. They say they will protect workers rights and then vote against it. They say they will protect environmental rights and then vote against it. They promised action on tax avoidance and then vote against it time and time again. And, mr speaker, once again the foreign secretary offers his opinions, as does the environment secretary saying, there is insufficient energy going into these brexit negotiations. Their words, mr speaker, not mine. Is it the truth this government has no energy, no agreed plan and no strategy to deliver a good brexit for britain . Cani deliver a good brexit for britain . Can i say to the right honourable gentleman, he talks about voting against tax avoidance measures, it was the labour party which refused to allow tax avoidance measures to go through in a bill before we called the general election. So he should look at his own record and he talks about people taking different opinions. I might remind him that on monday, and perhaps the shadow chancellor would like to listen to this . On monday, when we were putting through that important piece of legislation in relation to customs and taxation and europe, 76 labour mps voted in a different lobby than his front bench. The party has no clue on brexit in this commons is the labour party. Week in and week out the right honourable gentleman comes to this house and talks down our country and is pessimistic about our future. Let me tell him, i am optimistic about our future. Me tell him, i am optimistic about ourfuture. Iam me tell him, i am optimistic about ourfuture. I am optimistic about the success we can make a brexit and iam the success we can make a brexit and i am optimistic about the well paid jobs that will be created, i am optimistic about homes we will build, that conservatives are building a briton fit for the future. All he offers is a blast from the past. With the Prime Minister reassure people this conservative government is committed to maintaining the United Kingdoms strong commitment to the highest standards of Animal Welfare now and post brexit. to the highest standards of Animal Welfare now and post brexit. I am happy to give that commitment. We already have some of the highest Animal Welfare standards in the world and as we leave the eu we should enhance those standards. We have set out proposals to introduce mandatory cctv in slaughterhouses and increase sentences for animal cruelty, ban microbeads that damage marine life and banned the ivory trade to bring an end to elephant poaching and we recognise animals are sentience beings and should be treated accordingly. The Animal Welfare act 2006 provides protection for all animals capable of experiencing pain or suffering under the control of man. I reaffirmed to my honourable friend we will ensure we maintain and enhance Animal Welfare standards when we leave the eu. Can the Prime Minister tell the house how many jobs can the Prime Minister tell the house how manyjobs have been lost this week with the departure of the European Medicines Authority and Banking Authority from london . We are seeing those two agencies leave the United Kingdom and go elsewhere in the European Union that when he talks about the number ofjobs being created we have seen under this government 3 millionjobs created we have seen under this government 3 million jobs created. That is a record i would have thought even he would welcome. Of course, the Prime Minister refused to answer the question. Let me tell her, so she is aware of the cost of the hard tory brexit, losing the ema and eba means losing over 1000 jobs and the bank of england have told us the city will lose 75,000 jobs, jobs are already gone and jobs are going, brexit is already biting. Will the Prime Minister recognise that exiting the eu is losing jobs and centres of excellence from the United Kingdom . I recognise that those agencies are leaving the United Kingdom but the right honourable gentleman talks about numbers of jobs right honourable gentleman talks about numbers ofjobs lost. Since the conservatives came into government, 3 millionjobs, 3 million more people in work, 3 million more people in work, 3 million more people able to provide an income for themselves and their families. Last year Housing Associations generated 5. 5 billion in cash surplus which could be used to build 48,000 surplus which could be used to build 118,000 new homes. The accumulated reserves or Housing Associations come to 42 billion which would mean 36,500 properties a year for the next ten years could be built. Would my right honourable friend look at ways we can make sure Housing Associations use the money to build the new homes people want rather than having them sitting in the bank. He raises an important point and the issue of housing and homelessness is something he has been a campaigner on. This is already the approach taken by Housing Associations. They are nonprofit organisations and surpluses of reinvested in the business and in 2015, investment in new and existing property was more than double the surpluses they generated. I have announced an additional 2 billion funding for Affordable Homes including social rent and last week Housing Associations were reclassified to the private sector which takes 70 billion of debt off the Balance Sheet which means greater certainty for Housing Associations to get on with the job of building more for Housing Associations to get on with thejob of building more homes. My with thejob of building more homes. My thoughts are with the many constituents who have friends and family in nigeria. The snp has asked 140 times that the vat paid by police and Fire Services amber hundred and £40 million to be refunded. The chancellor said only last month legally we would not be able to recover that and the uk government is constrained by the rules in place. Was he misleading us . The snp may have answered a number of questions but the snp knew when they took the decision to create a Single Police and Fire Authority this would be the vat treatment. Given the revised housing proposals that would force unprecedented numbers to the equivalent of a new town will the Prime Minister give me and my constituents reassurances unnecessary large scale investment which will need to be made to boost Public Service infrastructure that will have to cope with up to 100,000 more people . This is of course an important point for people. We want to see more homes built because i wa nt to see more homes built because i want young people to have the prospect they are going to have the future their parents and grandparents had to own their own homes and we will go further in building more homes but she is right, as we do that we need to make sure the infrastructure is in place and we are putting in billions for economic infrastructure up to 2021 including issues like transport, fibre broadband, but we recognise the importance of making sure homes are supported by the right infrastructure. Iam infrastructure. I am proud the last Labour Government lifted more than 1 million children out of poverty. This government seems committed to doing the opposite. With the institute for fiscal studies predicting an additional 1. 2 million children will be pushed into poverty by 2021. That is on top of the 4,000,0201516. Is the Prime Minister proud of her governments record of failure on this and does she think the worrying forecast is acceptable . Farfrom acceptable . Far from the way in which she has portrayed the situation we have seen since 2010 600,000 fewer people in absolute poverty, a record low, 300,000 fewer working age adults in absolute poverty, and 200,000 children fewer in absolute poverty. 200,000 fewer children in absolute poverty. We have also seen families getting into work, 1 million fewer work less households. As the Prime Minister is aware scotla nd as the Prime Minister is aware scotland is lagging behind the rest of the uk in terms of superfast broadband roll out and in my constituency even further behind. A huge volume of my casework. A huge volume of my casework from one of my largest towns where 20,000 constituents reside, it is hardly what you would deem a remote area, can the Prime Minister confirm the next generation of funding to support the roll out in scotland will bypass that. For businesses and residents in my constituency get the ball band a desire . Broadband they desire. I am happy to confirm that to my honourable friend and she will know we are making progress in scotla nd will know we are making progress in scotland but we need to go further. So programmes such as five g will allocate funding directly to local projects based on the quality of bids and my honourable friend the minister for digital bids and my honourable friend the ministerfor digital has bids and my honourable friend the minister for digital has confirmed that their next generation of technology, we will deliver it directly to local authorities in scotland. Rather than going through the Scottish Government because we wa nt to the Scottish Government because we want to make sure that scotland is not left behind. In 2014 and enquiry was set up to look into a drug given to millions of pregnant women in the 60s and 70s that caused deformities and documents showing a cover up. Last week a report was published condemned by mps in the house is being white wash and misleading. Will the Prime Minister meet the victims and order a Public Inquiry so justice can be done for these people . I know this is an issue number of members have been concerned about and recognise the result of the review was not what some families we re review was not what some families were hoping for. It was a comprehensive independent review of the Available Evidence by experts and all the meetings of the working we re and all the meetings of the working were attended by an invited independent expert at the request of the Patient Group and the overall conclusion is that the Scientific Evidence does not support a Causal Association but that does not attract from the real suffering experienced by the families and i recognise these conclusions are hard to accept. The department of health is focused on implementing the recommendations. Does my right honourable friend agreed the right revised offer to the European Union farfrom throwing money away would be worthwhile to secure the future trading relationship with our european neighbours . I say he raises an important issue andi i say he raises an important issue and i set out in my speech in florence the uk will honour commitments we have made during our membership. We do not want European Partners fearing they will receive less or pay more. We can only resolve the financial implications of withdrawal finally as part of the settle m e nt of withdrawal finally as part of the settlement of all issues i spoke about in florence but once that is donein about in florence but once that is done in the days of britain paying vast sums of money to the eu every year will end. Every Prime Minister since 1946 has successfully appointed a british judge to the International Court ofjustice. Why has she not . Can i say to the honourable gentleman the british Prime Minister does not appoint judges to the International Court of justice. There is a process undertaken in the United Nations and we wish all thejudges undertaken in the United Nations and we wish all the judges who have been appointed by votes through the un to the International Court ofjustice well. My well. My right honourable friend might be aware ina my right honourable friend might be aware in a debate last week members of the Scottish National Party Declared if the Scottish Government did not agree with the final brexit deal they would push for another independence referendum. This obsession with breaking up our United Kingdom is damaging the scottish economy and causing uncertainty. Will she jomni in asking the snp to drop their obsession with a second independence referendum . Will she join obsession with a second independence referendum . Will shejoin the . The point raised is important. Scotla nd the point raised is important. Scotland had a referendum in 2014 that was legal and fair and the result was decisive. The people of scotla nd result was decisive. The people of scotland voted to remain part of the United Kingdom. Ithink scotland voted to remain part of the United Kingdom. I think that the election they sent a second message they didnt want a second referendum on this issue so i say to the Scottish Government, as we prepare to leave the eu, they should work with the uk government to get the right dealfor the with the uk government to get the right deal for the whole of the uk, not taking scotland back to these divisive constitutional debates of the past and i agree the smp should ta ke the past and i agree the smp should take the unwanted proposal off the table once and for all. Will the Prime Minister support steel jobs table once and for all. Will the Prime Minister support steeljobs in scunthorpe Prime Minister support steeljobs in scu nthorpe and elsewhere Prime Minister support steeljobs in scunthorpe and elsewhere by guaranteeing if the current flexibility within the emissions trading scheme is not retained until 2019, she will act immediately to ensure british industry is not financially penalise . The honourable gentleman raises an important point and this government has done a considerable amount to support the Steel Industry in the United Kingdom. I was pleased to be able to earlier in the year make a visit and meet with steelworkers and talk about the prospects for steel in the uk. We will look carefully to ensure the arrangements in place of those right for the National Interest and we have supported steel in the past. Cani we have supported steel in the past. Can i take my right honourable friend back to the first question asked by the honourable lady for bristol west and apart from commending the quality of the bbc programme she referred to, on the issue of prohibition of drugs globally can i draw her attention to the fact Global Policy is beginning to change and in the face of the evidential failure to change and in the face of the evidentialfailure of to change and in the face of the evidential failure of policies since the 1961 Un Single Convention on prohibition of narcotics drugs, and will she look at the evidence that will she look at the evidence that will emerge in the United States and canada on the legalisation of cannabis markets there as well as decriminalisation in portugal and elsewhere . We are grateful. Quite enough, we are grateful. Ican i can say to my honourable friend that when i was home secretary a piece of work was undertaken which looked at the experience in a number of countries and the ways they approach this issue of drugs. I do say to my right honourable friend that i take a different opinion to him in relation to drugs. I think those who are dealing with those who are affected those who are dealing with those who a re affected by those who are dealing with those who are affected by drugs would also do so. I think of my constituent Elizabeth Burdon phillips who set up drug fam after the suicide of her son who was a drug addict. The work she is doing because a member of the family is on drugs and the incredible damage that can do to families and the individual concerned. Im sorry i say to my honourable friend i take a different view. I think it is right that we continue to fight the war against drugs. The honourable member for chesterfield has migrated a considerable way from his usual place but we look forward to hearing from him. People with the most serious disabilities find when they move on to universal credit they are £100 a week worse off, this is because there is no severe disability component in the payment. Does the Prime Minister realise that universal credit will continue to shame had government, whilst it pushes the most disabled into the worst poverty . I say to the honourable gentleman that we spend over £50 billion a year on benefits to support disabled people and people with health conditions. That is increased by more than £7 billion since 2010. Spending on disability benefits will be higher in every year to 2020 than it was in 2010. And as regards universal credit, as i have said in this chamber before, universal credit is a simpler, more straightforward system. But crucially, universal credit is helping people get into the workplace and making sure they keep more of the money that they earn. So david amess. Will my right honourable friend join me in congratulating the lyon sea branch of the british legion, local artist beth hooper and mary lister, im using a lottery grant for schoolchildren in southend to make 7500 saran poppies and display them on southends letters . And would she agree with me it is a further good reason to make southend on sea a city . Ie congratulate the leon c branch of the british legion and the work they have done in congratulating young people in recognising the sacrifices made by previous generations for our safety. As for the last bit that is interesting. I know he champions lee on sea all the time and his bid will be looked at carefully. My will be looked at carefully. My constituent Haley Crawley is having Palliative Care for bowel cancer and she needs a specialist drug. She waited months to hear that her case forfunding drug. She waited months to hear that her case for funding was rejected by nhs england and we are now waiting again to heara nhs england and we are now waiting again to hear a reply for her appeal. Please will be Prime Minister right to nhs england and ensured that her case is treated as i priority. Obviously, iwear this will be causing distress to haley while she is waiting for this appeal decision to come through and i am sure the secretary of state for health will look carefully at the case the honourable lady has raised. We were able to bring in the Cancer Drugs Fund which has enabled some patients to get access to drugs which otherwise would not be available, but i recognise the concern and distress that her constituent will be suffering from while she awaits for this decision. The Prime Minister will be aware that under president mugabe, british citizens living in zimbabwe, especially land overs, suffered considerably. Can she give an assurance to the house that as we seek a new regime coming into zimbabwe, the British Government will do all it can to persuade the new regime to treat british citizens living lawfully in that country, treat them with respect and the safety a nd treat them with respect and the safety and security they should have along with all other zimbabwean citizens. My honourable friend does raise an important point, as we see this change taking place in zimbabwe. I have to say the resignation of Robert Mugabe provides zimbabwe with an opportunity to forge a new path, free from the depression which has characterised the past. We want to see a Democratic Free secure zimbabwe, where people across communities, and from communities across zimbabwe are able to carry out their lives without fear, without oppression and we want to see that country rejoining the international community. We have obviously provided some support to zimbabwe in terms of uk aid, and as their oldest friend, we will do everything we can to support their change into a country which is free and democratic and free from oppression from all communities. Order. Studio so Prime Ministers questions comes to an end and. As is traditional at a budget, the speaker makes way for the Deputy Speaker, Lindsey Hoyle, speaker, Lindsey Hoyle. The Commons Chamber now becomes the committee of ways and means, it is called. That is the committee which hears budget and financial matters. That is why Lindsey Hoyle the chairman of ways and means takes over. Lets go back to the house and im sure we will hear from the chancellor shortly. I now call the chancellor of the exchequer, the right honourable Philip Hammond. Mr Deputy Speaker, i report today on an economy which continues to grow, continues to create more jobs than ever before, and continues to confound those who seek to talk it down. An economy is set on a path to a new relationship with our european neighbours and a new future outside the European Union. A future that will be full of change, full of new challenges and above all, full of new opportunities. And in this budget, we express our resolve to look forwards, not backwards. To embrace that change, to meet those challenges head on, and to seize those for britain. For negotiations ona those for britain. For negotiations on a relationship with the eu are in a critical phase. My right honourable friend the Prime Minister has been clear we seek a deep and special Partnership Based on free and frictionless trading goods, close collaboration on security and strong Mutual Respect and friendship. As chancellor, mr Deputy Speaker, i am clear that one of the biggest boosts we can provide to businesses and families, one of the best ways to protect british jobs and prosperity, as we build that new future, is to make early progress in delivering my right honourable friends vision. With an Implementation Agreement that allows businesses to plan and invest with confidence. And this government will make the pursuit of that progress is a top priority in the weeks ahead. But mr Deputy Speaker, while we work to achieve this deep and special partnership, we are determined to ensure that the country is prepared for every possible outcome. We have already invested almost £700 million in brexit preparations, and today, i am setting aside over the next two yea rs, am setting aside over the next two years, another £3 billion, and i stand ready to allocate further sums if and when needed. Mr Deputy Speaker, no one should doubt our resolve. But this budget is about much more than brexit. The world is on the brink of a technological revolution, one that will change the way that we work and live, and transform our Living Standards for generations to come. And we face a choice. Either we embrace the future, seize the opportunities that lie within our grasp, and build on britains great global success story, or as the Party Opposite advocates, rejects change and turn inwards to the failed and irrelevant dogmas of the past. Mr Deputy Speaker, we have no doubt we choose the future. We choose, we choose to run the future. We choose, we choose to ru n towards the future. We choose, we choose to run towards change, not away from it. To prepare our people to meet the challenges ahead, not to hide from them. And the prize will be enormous. For the first time in decades, britain is genuinely at the forefront of this technological revolution. Not just in forefront of this technological revolution. Notjust in our universities and research institutes, but this time in the commercial Development Labs of our Great Companies and on factory floors and business parks across this land. But we must invest to secure this Bright Future for britain, and that this budget, that is what we choose to do. But mr Deputy Speaker, we are listening, and we understand the frustration of families where real incomes or under pressure. So at this budget we choose a balanced approach. Yes, maintaining fiscal responsibility as we last see our debt peking. Continuing to invest in the skills and infrastructure that will support thejobs of and infrastructure that will support the jobs of the future. Building the homes that will make good on our promise to the next generation. But crucially, also helping families to cope with the cost of living. Mr Deputy Speaker, as we invest in our countrys future, i have a clear vision of what that Global Britain looks like. A prosperous and inclusive economy. Where everybody has the opportunity to shine. Wherever in these islands they live, and whatever their background. Where talent and hard work are rewarded. Where the dream of Home Ownership is a reality for all generations. A hub of enterprise and innovation. A beacon of creativity. A civilised and tolerant place that cares for the vulnerable and nurtures the talented. And outward looking free trading nation, a full good in the world. That is the britain that i wa nt to world. That is the britain that i want to leave to my children, mr Deputy Speaker. A britain we can be proud of. A country fit for the future. I know we will not build it overnight, but in this budget today we will lay the foundations. Im being tempted with something a little more exotic here, but i will stick to plain water. I did take the precaution. I did take the precaution. I did take the precaution of asking my right honourable friend to bring a packet of cough sweets just in case. Laughter mr Deputy Speaker, mr Deputy Speaker. Order, order. Ithink it might be a hearing aid we all need if this continues. Mr Deputy Speaker, i shall first report to the house on the Economic Forecast of the independent obr. This is the bit with the long economic words in it. Laughter once again, i thank robert chote and his team for their hard work over the last few weeks. I believe passionately that the best way to improve the lives of people across the length and breadth of this country is to help them get into work. Mr Deputy Speaker, i am acutely aware that 1. 4 Million People out of work is 1. 4 million to many. So today. Today i welcome the obr forecast that there will be another 600,000 people in work by 2022. And i am immensely proud of this governments record in having created over 3 million newjobs since 2010. Afar a far cry from the 1. 2 million job losses the right honourable member for hayes and harlington predicted in 2011 but in no doubt this government will continue its focus on getting more people into work, giving them security and peace of mind ofa giving them security and peace of mind of a regular wage. I want work to bea mind of a regular wage. I want work to be a good well paid and reg retta bly to be a good well paid and regrettably our productivity performance continues to disappoint. The obr assumed at each of the last 16 fiscal events that productivity growth would return to its precrisis trend of about 2 per year, but it has remained stubbornly flat. Today they revised down the outlook for productivity growth, Business Investment and gdp growth across the forecast period. They now expect to see gdp grow1. 5 forecast period. They now expect to see gdp grow 1. 5 in 2017, one. 4 in 2018, one. 3 in 2019 and 2020, before picking up to 1. 5 and finally 1. 6 before picking up to 1. 5 and finally1. 6 in before picking up to 1. 5 and finally 1. 6 in 2022. With inflation peaking at 3 in this quarter before falling back to target in the next year. I reaffirm the remit that the Monetary Policy committee and its inflation target. We took over an economy with the highest budget deficit in peacetime history. Since then, thanks to the hard work of the british people, that deficit has been shrinking. Next year, it will been shrinking. Next year, it will be below 2 . Our debt is still too high and we need to get it down. Not for and ideological reason, but because successive debt undermines Economic Security leaving is vulnerable to shocks. It passes the burden unfairly to the next generation. And because it simply cannot be right to spend more on our debt interest than on police and armed forces combined. I am pleased to tell the house obr expects debt to tell the house obr expects debt to peak this year and then gradually fall as a share of gdp. They turning point in the recovery. Mr Deputy Speaker, apparently, not everyone shares the view that falling debt is good news. I heard representations from the Party Opposite suggesting increasing the debt by £500 billion. Taking us back to square one, wasting an extra £7 billion a year on debt interest. If they carry on like that, there will be plenty of others joining kezia like that, there will be plenty of othersjoining Kezia Dugdale saying, im labour, get me out of here. Mr Deputy Speaker, i have rejected these representations and instead i reaffirm our pledge of fiscal responsibility and our commitment to the fiscal rules set out last autumn. Now i choose to use some of the headroom i established then so that as well as reducing debt, we can also invest in britains future, support key Public Services, keep taxes low and provide a little help to families and businesses under pressure. A balanced approach that will prepare britain for the future, not seek to hide from it. Today the obr confirmed we are on track to meet our fiscal rules, borrowing is forecast to be 49. 9 billion this year, 8. 4 billion lower than forecast at the spring budget. After taking account of all decisions since the spring budget, the gdp revision and measures i will announce borrowing will fall in every year of the forecast from 39. 5 billion next year, to 25. 6 point 6,000,000,020 223 to reach billion next year, to 25. 6 point 6,000,000,020 2 23 to reach its lowest level in 20 years. As a percentage of gdp falls from 2. 4 to 1. 9 next year, then 1. 6, 1. 5, 1. 3 and finally 1. 1 1. 9 next year, then 1. 6, 1. 5, 1. 3 and finally1. 1 in 1. 9 next year, then 1. 6, 1. 5, 1. 3 and finally 1. 1 in 22 3. The obr forecast the structural deficit to be1. 3 of forecast the structural deficit to be 1. 3 of gdp in 2021, giving 14. 8 billion of headroom against our 2 target. Debt will peak at 86. 5 of gdp this year and then fall to 86. 4, then 86. 1, 83. 1, 79. 3 and 79. 1 in 22 23, the then 86. 1, 83. 1, 79. 3 and 79. 1 in 22 23, the first sustained decline in debt in 17 years. Under conservative led governments, the hard work of the british people is steadily clearing up the mess left behind by labour. At the heart of Global Britain must be a dynamic and innovative economy. On monday, the Prime Minister set out key elements of our modern industrial strategy, which will raise productivity and wages in all parts of the country and guarantee a brighterfuture wages in all parts of the country and guarantee a Brighter Future we have promised to the next generation. The business secretary will present a white paper in the next few days. This is notjust an economic plan. It is a key part of our vision for a fairer britain, a britain where every one of our citizens can contribute to and share in the benefits of prosperity. And the key to raising the wages of british workers is raising investment, public and we are investing in britains future, half £1 trillion since 2010, the biggest Rail Programme since victorian times, the largest road Building Programme since the 19705, the biggest increase in science and innovation funding in four decades and the two largest Infrastructure Projects in europe, crossrail and hs2. When i took this projects in europe, crossrail and hs2. When i took thi5job i committed to make the battle to raise britains productivity and the nations pay the Central Mission of the treasury. Last autumn, i launched the National Productivity Investment Funds to provide an additional £23 billion of investment over five years, to upgrade the economic infrastructure for the 21st century. Today i announce i will extend the fund a further year and expand it to over £31 billion. Meaning that Public Investment under this government will on average be £25 billion per year higher in real term5 than under the last Labour Government. We are allocating a further £2. 3 billion for investment in r b and will increase the main rnd tax credit to 12 r d. To drive up investment across the economy to 2. 4 of gdp. Britain is the worlds sixth largest economy. London is the Number One International Financial Services sector and we have some of the worlds best companies and a commanding position in a raft of tech and Digital Industries that will form the backbone of the global economy. Tho5e will form the backbone of the global economy. Those who under estimate britain do so at their peril. Because we will harness this potential and turn it into the high paid, high productivity jobs potential and turn it into the high paid, high productivityjobs of tomorrow. Others may choose to reject the future, we choose to embrace it. A new tech business is founded in britain every hour. I wa nt founded in britain every hour. I want that to be every half hour. Today, we invest over £500 million ina range today, we invest over £500 million in a range of initiatives from Artificial Intelligence to five g and fourfibre Artificial Intelligence to five g and four fibre broadband Artificial Intelligence to five g and fourfibre broadband and Artificial Intelligence to five g and four fibre broadband and support regulation with the new pioneer fund and a new Geospatial Data commission to develop. You should listen. To develop a strategy for using the government location data to support Economic Growth and to help tech start ups reach scale we asked for a review of availability of capital. Today we are publishing an action plan to unlock over £20 billion of new investment in uk knowledge intensive scale up businesses including through a new fund in the British Business bank seeded with £2. 5 billion of public money by facilitating pension fund access to long Term Investment 5um by doubling investments limit5 long Term Investment 5um by doubling investments limits for Knowledge Intensive Companies while ensuring el intensive companies while ensuring eisi5 intensive companies while ensuring e s is not used as a shelter for low risk capital preservation 5cheme5. Low risk capital preservation schemes. We stand ready to step in to replace European Investment fund lending is necessary. There is perhaps no technology as symbolic of the revolution gathering pace as d riverless the revolution gathering pace as driverless vehicles. They surely do not want me to make thejoke they surely do not want me to make the joke about the labour party again, mr Deputy Speaker . I know Jeremy Clarkson does not like them but there are many other good reasons to pursue this technology. Today, we step up support for it. Im sorry, jeremy, definitely not the first time you have been snubbed by hammond and may. Allah future ourfuture our future vehicles will be d riverless our future vehicles will be driverless but there they will be electric first and that is a change that needs to come as soon as possible for the planet. We will establish a £400 million Structure Fund and invest an extra hundred million per plug in car grant and more for r d. I will clarify the law so that people who charge electric vehicles at work will not face a benefit in kind charge from next year. The tax system can play an Important Role in protecting our environment. We owe it to our children the air they breathe is clea n children the air they breathe is clean and we published the air quality plan this year and said then we would fund it through taxes on new diesel cars. From april 2018, the first year rate for diesel cars that do not meet the latest standards will go up by £1 and the existing supplement in Company Car Tax will increase by one percentage point and drivers buying a new car will avoid this charge as soon as manufacturers bring forward the next generation of cleaner diesels. We only apply this measure to cars. Before the headline writers start to limberup, let me before the headline writers start to limber up, let me be clear. No white van man or woman will be hit by these measures. This levy will fund a new £220 million cleaner fund to provide support for the implementation of local air quality plans, improving the quality of air in cities and towns in the uk. Our air quality is sadly not our only environmental challenge. Audiences in the country glued to blue planet have been reminded of the problems of plastics pollution. The uk lead the world on Climate Change agreements and pioneers protecting Marine Environment and i want us to bea Marine Environment and i want us to be a world leader in tackling the scourge of plastic littering the planet and oceans. With my right honourable friend the environment secretary i will investigate how the tax system and charges on single use plastic items can reduce waste. We cannot keep our promise to the next generation to build an economy fit for the future unless we ensure our planet has a future. Meeting the challenge of change head on means giving our people the confidence to embrace it and the skills to reap the rewards and we have a plan to do so. We are delivering 3 million apprenticeships by 2020 thanks to the apprenticeship levy and i will review the flexibility levy payers have to spend this. We are introducing t levels and i am providing £20 million to support colleges to prepare for them. Knowledge of maths is key to the high tech, cutting edge jobs knowledge of maths is key to the high tech, cutting edgejobs in our digital economy. It is useful in less glamorous roles like front line politics we will expand the teaching for mastery of Maths Programme to further 3000 schools and provide 40 million to train maths teachers and introduce a £600 maths teachers and introduce a £600 maths premium for schools for every additional people who takes a level maths and invite proposals for new maths and invite proposals for new maths schools across england so highly talented young mathematicians can release their potential wherever they live and what ever their background. More maths for everyone. Dont let anyone say i dont know how to show the nation a good time Computer Science is also at the heart of this revolution. So we will ensure every secondary school pupil can study computing by tripling the number of trained Computer Science teachers to 12,000. And we will work with industry to create a new National Centre for computing. But mr Deputy Speaker, rapid technological change means we also need to help people we train during their working lives, ensuring our workforce is equipped with the skills they need for the workplace of the future. Today, my right honourable friend the education secretary and i are launching an Historic Partnership between government, the cbi Historic Partnership between government, the cb and the tuc to set the Strategic Direction for a national retraining scheme. Its First Priority will be to boost Digital Skills and support expansion of the construction centre. To make a start immediately, we will invest £30 million in the development of Digital Skills Distance Learning courses, so people can learn wherever they are and whenever they want. Im pleased to be able to accept the representation that i have received from the tuc, to continue to fund union learn which i recognise as a valuable part of our support to workplace learning. Mr Deputy Speaker, i got an e mail from len asking me especially, backing skills is key to unlocking growth nationally, but far too much of our economic strength is concentrated in our capital city. If we are truly to build an economy that is fit for the future, then we have to get all parts of the uk firing on all cylinders, and that is what our modern industrial strategy is all about. Today, we back the Northern Powerhouse, the midlands engine and elected mayors across the uk. We back them with a new 1. 7 £1. 7 billion transforming cities fund, half of it to be shared with the six areas with metro mayors, to give them power to deal with transport priorities, and the remainder will be opened to competition in other cities in england. We are investing £300 million to assure hs2 infrastructure will incorporate Northern Powerhouse and midland engine improvements. I am also providing money to trial Digital Solutions on the Trans Pennine route. We are developing a punch with manchester and im pleased to announce a second devolution deal with andy street and we will find the replacement of the 40 old Rolling Stock on the tyne at where metro and a total investment of 337 million pounds. We will invest £123 million pounds. We will invest £123 million in the redcar steel steelwork sites to support the work of those leading the fight for prosperity in that area. Mr Deputy Speaker, we are piloting 100 Business Rates retention in london next year, and continuing to work with tfl on the funding and financing of crossrail two. We will also make over £1 billion of discounted lending available to local authorities across the country to support high value Infrastructure Projects. A conservative government giving power back to the people of britain, and driving prosperity and greater fairness across our United Kingdom. The decisions taken in this budget also mean £2 billion more for the Scottish Government, £1. 2 billion more for the welsh government, and 156 mg more for the Northern Ireland executive. I can confirm today progress is being made on the city s progress is being made on the city 5 deal progress is being made on the city s dealfor terry progress is being made on the city 5 deal for terry and stirling. Progress is being made on the city s dealfor terry and stirling. Im getting used to the experience of having my ear bent by 13 conservatives scottish colleagues. Most recently on the issue of Scottish Police and fire vat. The snp knew the rules, they knew the consequences of introducing these bodies and they ploughed ahead anyway. My scottish conservative collea g u es anyway. My scottish conservative colleagues have persuaded me that the scottish people should not lose out just because of the scottish people should not lose outjust because of the obstinacy of the snp government. So we will legislate to allow vat refunds from april 20 18. And in response to yet more representations from my honourable scottish friends, aided and abetted by my honourable friend for waverley, from november 2018, we will introduce agile is there a tax history for transfers of gas in the north sea, an innovative tax policy which will bring fresh investment to a base on which still holds up to 20 billion barrels of oil. We will begin negotiations towards great deals the north wales and mid wales, and we will abolish tolls on the Severn Bridge as promised by the end of next year. We will deliver on our commitment to review the effect of vat and apd on tourism in Northern Ireland, reporting on next years budget and we will open negotiations for a belfast city deal as part of our commitment to an ambitious set of city deals across Northern Ireland. A conservative government delivering for all parts of our United Kingdom. It is only by supporting our regions and nations, dealing with our debts and investing in skills and infrastructure for the long term, that we can build an economy fit for the future. But i recognise that many people are feeling pressure on their budgets now. And because we are all in politics to make peoples lives better, in the short term as well as the long term, we will take further measures in this budget to help families and businesses where we can. The switch to universal credit isa can. The switch to universal credit is a long overdue and necessary reform. Replacing labours broken system that discouraged people from working more than 16 hours a week and trapped 1. 4 million on out of work benefits for nearly a decade, universal credit delivers a modern welfare system where work always pays and people are supported to earn. But i recognise, mr Deputy Speaker, the genuine concerns on both sides of the house at about the operational delivery of this benefit, and today we will act on those concerns. First, we will remove the seven day waiting period applied at the beginning of a benefit claim, so that entitlement to universal credit will start on the day of the claim. To provide greater support during the waiting period, we will change the advance the system to ensure any household needsit the system to ensure any household needs it can access a full months payment within five days of applying. We will make it possible to apply for an advanced online. We will extend the Repayment Period for advances from six months to 12 months, and any new universal credit claimant in receipt of housing benefit at the time of the claim will continue to receive that housing benefit for a further two weeks, making it easierfor them to pay their rent. This, mr Deputy Speaker, is a £1. 5 billion package to address concerns about the delivery of the benefit. My right honourable friend the secretary of state for work and pensions will give further details in a statement to the house tomorrow. We also want to the house tomorrow. We also want to help low income households in areas where rents have been rising fastest. In the long run, of course, the answer lies in increasing the amount of housing available, a theme i shall return to. In the meantime, the best way to help them is by increasing the rate of support in those areas where rents are least affordable. We will increase targeted affordability funding by £125 million over the next two yea rs, £125 million over the next two years, benefiting 140,000 people. We will always listen to genuine concerns and act where we can to help. Making work pay is core to the philosophy of this government. That is why we introduced the National Living wage in 2016. In april, it will rise by 4. 4 , from £7 50 an hour, to £7 83, handing full time workers a further £600 pay increase, taking their total pay rise since its introduction to over £2000 a year. We also accept the low pay commissions recommendations on National Minimum wage rates, supporting our young people with the largest increase in youth rates in ten years, delivering a pay rise for over 2 million minimum wage workers of all ages across the country. The fa cts of all ages across the country. The facts a re of all ages across the country. The facts are these. Income inequality todayis facts are these. Income inequality today is at its lowest level in 30 yea rs. Today is at its lowest level in 30 years. The top 1 are paying a larger share of income taxes than at any time under the last Labour Government. The poorest 10 in britain have seen their real incomes grow faster than 2010 than the richest 10 , and the proportion of full timejobs richest 10 , and the proportion of full time jobs that are low paid is at its lowest level for 20 years. A conservative government delivering a fairer britain. But as well as making work pay, we want families to keep more of the money they earn. When we came into office, the personal allowance stood at £6,475 a year. From april, i will increase the personal allowance to £11,850, and the higher Rate Threshold to £46,350 , and the higher Rate Threshold to £46,350, making progress towards our ma nifesto £46,350, making progress towards our manifesto commitments, which i reiterate today. The typical basic rate taxpayer will be £1075 a year better off than 2010, and a full time worker on the National Living wage will take home more than £3800 extra. This conservative government delivering for britains workers. Mr Deputy Speaker, i turn now to duties. The tobacco duty escalator will continue with an extra 1 duty on hand rolling duty this year and extra 1 duty on hand rolling duty this yearand minimum extra 1 duty on hand rolling duty this year and minimum excise duty on cigarettes will also rise. Excessive Alcohol Consumption and the most Vulnerable People is all too often through cheap high strength low quality products, especially so called white ciders. I want to pay tribute to the campaign led by my honourable friend for congleton on this issue, and so following our recent consultation, we will legislate to increase duty on these products from 2019. But recognising the pressure on household budgets, and backing our Great British pubs, duties on other sliders, wines, spirits and on beer will be frozen. This will mean a bottle of whiskey will be £1. 15 less in 2018 than if we had continued with labours plans, and a pint of beer 12p less. So merry christmas, mr Deputy Speaker. The cost of travel is also an important factor for families and businesses. From april 2019, an important factor for families and businesses. From april2019, i an important factor for families and businesses. From april 2019, i will again freeze short haul air Passenger Duty rates, and i will also frees long haul economy rates, paid for by an increase on premium class tickets and on private jets. Sorry, lewis. For those class tickets and on private jets. Sorry, lewis. Forthose who class tickets and on private jets. Sorry, lewis. For those who do not stretch to a private jet, i sorry, lewis. For those who do not stretch to a privatejet, i can announce a new railcard for those aged 26 to 30, giving 4. 5 million more young people a third of their rail fares. More young people a third of their railfares. And i will once again cancel the fuel duty rise for both petrol and diesel that is scheduled for april. Since 2010, we will have saved the average car driver £850, and the average van driver over £2100, compared to labours escalator plans. Fuel duty has now been frozen for the longest period in 40 years, at a total cost to the exchequer of £46 billion, is since 2010. Mr Deputy Speaker, our nhs is one of our great institutions. An essential part of what we are as a nation. And a source of pride the length and breadth of the country. Its values are the values of the british people, and we will always back it. Dedicated nhs staff are handling the challenges of an ageing population and the rapidly advancing technology with skill and commitment and we salute them. Mr Deputy Speaker, although you would not think so to listen to the leader of the opposition, as he regularly talks down the achievements of the nhs, the number of patients being treated is at record levels, cancer survival rates are at the highest ever level, 17 Million People are now able to access gp appointments in the evenings and weekends, and Public Satisfaction among hospital inpatients is at its highest level in more than 20 years. It is central to this governments vision everyone has access to the nhs free at the point of need which is why we endorsed and funded the five year forward view in 2014 but even with this additional funding we acknowledge the Service Remains under pressure and today we respond. First, we will deliver an additional £10 billion package of Capital Investment in Front Line Services over the course of this parliament, to support the sustainability and transformation plans that will make our nhs more resilient, investing foran nhs fit our nhs more resilient, investing for an nhs fit for the future. We also recognise that the nhs is under pressure right now. I am therefore exceptionally and outside the Spending Review process making an additional commitment of resource funding of £2. 8 billion to the nhs in england. £350 million immediately to allow trusts to plan for this winter. 1. 6 to allow trusts to plan for this winter. 1. 6 billion in 2018 19 to allow trusts to plan for this winter. 1. 6 billion in 2018 19 but the balance in 19 20, taking the extra resource into the nhs next year to £3. 75 billion in total. Meaning, mr Deputy Speaker, our nhs will receive a £7. 5 billion increase to its resource budget over this year and next. Our nations nurses provide invaluable support to us all in ourtime of provide invaluable support to us all in our time of greatest need and deserve our deepest gratitude for their tireless efforts. My right honourable friend the Health Secretary has begun discussions with Health Unions on pay structure modernisation for staff to improve recruitment and retention. He will submit evidence to the independent pay review body in due course. I wa nt to pay review body in due course. I want to assure nhs staff and patients and members that if the Health Secretarys talks bear fruit, i will protect Patient Services by providing additional funding for such a settlement. Just as our Public Services must be fit for the future, so too must our tax system. It must remain competitive to attract the brightest and best to establish and grow businesses of the future. It must raise revenue we need to Fund Public Services and it must be robust against abuse so it is fairto must be robust against abuse so it is fair to all. We have heard talk recently from the Party Opposite about what they would do to crack down on tax avoidance and evasion, but the truth is, they did not. It is this government that has clamped down on avoidance and evasion, this government has seen the tax gap cut bya government has seen the tax gap cut by a quarter to a record low and this government that has raked in an extra £160 billion over seven years for our Public Services by collecting taxes due so i will take no lectures, but i will take action and this budget continues the work of the last seven years with a further package of measures that is forecast to raise £4. 8 billion by 20223, forecast to raise £4. 8 billion by 2022 3, doing thejob labourfailed to do for 13 years in office. Our long term phased reduction of Corporation Tax has generated investment and jobs and raised £20 billion extra for Public Services. We are committed to maintaining competitive Corporation Tax rates that there is a case for removing the anomaly of the index allowance for Capital Gains bringing the Corporate Tax system into line with personal Capital Gains tax system. I will freeze this allowance so Companies Receive relief for inflation up to january 2018 but not thereafter. I am grateful to the office for tax simplification on their report on vat registration threshold. At £85,000 the uk vat threshold. At £85,000 the uk vat threshold is by far the highest in the oecd, by contrast in germany it is £15,600. I note the conclusion that it distorts competition and dis incentivise is Business Growth and note the federation of Small Businesses concerns about the cliff edge of the threshold but such a high threshold has the benefit of keeping the majority of Small Businesses out of vat altogether so iam not businesses out of vat altogether so i am not minded to reduce the threshold. I will consult on whether it threshold. I will consult on whether it its design could better incentivise growth and we will maintain it at the current level for the next two years. We cannot build an economy fit for the future without supporting its backbone, our 5. 5 million Small Businesses, who are responsible for nearly half our private sector jobs. Are responsible for nearly half our private sectorjobs. They give the economy its vibrancy and resilience. I recognise many are feeling under pressure. I know that it is hard work to get a business off the ground and get it to grow, so today i want to do what we can to ease that pressure. Business rates represent a high fixed cost for Small Businesses. At budget 2016 we introduced a package of business rate relief worth almost £9 billion with a further £435 million in the spring budget. Today i go further. We have listened to concerns about the potential costs of the annual up rating of Business Rates in april. Today i will accept the representation of the british chambers of commerce, cbi representation of the british chambers of commerce, cb and others and bring forward the planned switch from rpi to cpi by two years to april 2018, a move that is worth £2. 3 billion to business over the next five years. I have listened to businesses affected by the so called staircase tax. We will change the law to ensure where a businesses impacted by the ruling, it can have its original bill reinstated if it chooses and backdated and i hope i can expect cross party backing to speed that measure through parliament. Three simple steps to solve the staircase tax. What do they expect, it is the tax section . To support the thousands of small pubs at the heart of many communities, we will extend the £1000 discount with the rateable value of less than the amount to march 2019. I have heard the concerns about the five year reevaluation system and shorter periods will reduce the size of changes in valuation that i can announce after the next revaluation future revaluation will take place every three years. This conservative government is listening to small business. There is a wider concern across this house and in the Business Community about the tax system in the digital age. Along with innovation and growth it brings, digitalisation poses challenges for the sustainability and fairness of our tax system but this challenge can only properly be solved on an international basis and the uk is leading the charge in the oecd and 620 to the uk is leading the charge in the oecd and g20 to find solutions. Today we publish a paper on the tax challenge posed by the digital economy, setting out emerging thinking about potential solutions, but in the meantime we will take what action we can. Multinational Digital Businesses pay billions in royalties to jurisdictions where they are not taxed and some of these royalties relate to uk sales. From april 2019 and in accordance with International Obligations we will apply income tax to royalties relating to uk sales when those royalties are paid to a low tax jurisdiction, even if they do not fall to be taxed in the uk under current rules. This will raise about £200 million a year. It does not solve the problem, but it sends a signal of our determination and we will continue to work in the International Arena to find a sustainable and fair long Term Solution that properly taxes Digital Businesses that operate in cyberspace. Following representations from a number of honourable friends we are taking action to address online vat fraud that costs the taxpayer £1. 2 billion per year, by making all Online Marketplaces jointly liable with their sellers for vat, ensuring sellers operating through them pay the right vat just we expect retailers on the high street to do. I want to turn to the challenge of the housing market. Before i do, i wa nt to the housing market. Before i do, i want to touch on the aftermath of the appalling events at Grenfell Tower. We have provided Financial Support for victims of this terrible tragedy and today i announce we will provide kensington and Chelsea Council with a further £28 million for Mental Health and counselling services, the generation support and to provide a new Community Space for residents. This tragedy should never have happened and we must ensure nothing like it ever happens again. All local authorities and Housing Associations must carry out any identified necessary safety work as soon as possible. If any local authority cannot Access Funding to pay for essential fire safety work, they should contact us immediately, andi they should contact us immediately, and i have said before and will again today, we will not allow financial constraints to get in the way of essential fire safety work. I wa nt to way of essential fire safety work. I want to also address the issue of empty properties. It cannot be right to leave property empty when so many are desperate for a place to live. We will legislate to give local authorities the power to charge a 100 Council Tax Premium on empty properties. We will also launch a consultation on barriers to longer tenancies in the private rented sector and how we might encourage landlords to offer them to tenants who want extra security. I want to Say Something about rough sleeping. It is not acceptable in 21st century britain people are sleeping on the streets. We will invest today £28 million in three new Housing First pilots in the West Midlands, manchester and in liverpool, and we will establish a task force as part of our commitment to halving rough sleeping by 2022 and eliminating it by 2027. I sleeping by 2022 and eliminating it by 2027. I would like to thank the many colleagues who submitted ideas on how to tackle the challenge of the housing market, including my honourable friends for north east hampshire, eastleigh and Weston Super Mare in particular. By continuing to invest in britains infrastructure, skills and r d, we will ensure productivity and Economic Growth that is the key to delivering a stronger, fairer and more balanced economy and the assurance to the next generation of their Economic Security, but however successful in that endeavour, there is an area where young people will rightly feel concerned about their future prospects and that is in the housing market. House prices are increasingly out of reach. It takes too long to save for a deposit and rents absorbed too high a portion of monthly income. The number of 25 34 year old is owning their own home has dropped from 59 to 38 in 13 yea rs. Has dropped from 59 to 38 in 13 years. Put simply, successive governments over decades have failed to build enough homes to deliver the homeowning dream this country has a lwa ys homeowning dream this country has always been proud of, or indeed to meet the needs of those who rent. In manchester a few weeks ago the Prime Minister made a pledge to the Younger Generation that she would dedicate her premiership to fixing this problem and today we take the next steps to delivering on that pledge. By choosing to build we send a message to the next generation that getting on the housing ladder is not just a that getting on the housing ladder is notjust a dream of your parents passed, but a reality for your future. We have started with schemes like help to buy that has helped 320,000 people buy a home. We have increased the supply of homes. By more than1. 1 increased the supply of homes. By more than 1. 1 billion since 2010. Including almost 350,000 Affordable Homes by more than 1. 1 million. The latest figures show that over 217,000 additional homes were added to the stock last year, that is a remarkable achievement, but we need to do better still if we are to see affordability improved. This is a complex challenge and there is no single magic bullet. If we dont increase the supply of land for new homes, more money will simply inflate prices and make matters worse. If we dont do more to support the growth of the smt House Building sector that was all but wiped out by labours great recession, we will remain dependent on the Major National House Builders that dominate the industry. Growth of the sme House Building sector. Solving this challenge will require money and it will require planning reform and it will require intervention. So today we set out an ambitious plan to tackle the housing challenge. Over the next five years we will commit a total of at least £44 billion of capital funding, loa ns £44 billion of capital funding, loans and guarantees to support our housing market, to boost the supply of skills, resources and building land and to create the financial incentives to deliver 300,000 net additional homes on average by the mid 20 205, the biggest annual increase in housing supply new money for the fund to get sme House Building began, a £30 million fund, a further £2. 7 billion to more than double the housing infraStructure Fund, £400 million more for a state regeneration, air £1. 1 billion fund to unlock strategic sites, including new settle m e nts strategic sites, including new settlements and urban regeneration schemes, a listing of h r eight caps for councils in high demand areas to get them building again and £8 billion of new financial guarantees to support House Building and the private rented sector. Because we need a workforce to build these new homes, we are providing an additional 30 formally in pounds to develop construction skills across the country. Mr Deputy Speaker, solving the housing challenge takes more than money, it takes planning reform. We will focus on the urban areas where people want to live, and where mostjobs are created, making best use of our urban land and continuing the strong protection of our green belt. In particular, building high quality high density homes in city centres and around major transport hubs. And to put the needs of our young people first, we will insure that councils in high demand areas permit more homes for First Time Buyers and affordable renters. The communities secretary will set out more detailed in a statement to the house in due course. However, one thing is very clear, there is a significant gap between the number of planning permission is granted, and the number of homes built. In london alone, there are 270,000 residential planning permission is an built. We need to understand why not built. Im establishing an urgent review to look at the gap between planning permissions and housing starts. It will be chaired by the member for west dorset and will deliver an interim report in time for the spring statement next year. And if that report finds that fighter lee needed land is being withheld from the market for commercial rather than technical reasons, we will intervene to change the incentives to ensure such land is brought forward for development, using direct intervention, compulsory purchase powers as necessary. My right honourable friend the Prime Minister has said we will fix this problem, and no one should doubt the governments determination to do so. But the solution will not deliver itself. Local authorities will need help and support. Developers will need encouragement and persuasion. Infrastructure to facilitate higher Density Development must be funded undelivered. So the homes and Communities Agency will expand to become homes england bringing together money, expertise and planning and compulsory purchase powers with a clear remit to facilitate delivery of sufficient new homes where they are most needed, to deliver a sustained improvement in housing affordability. The battle to achieve and sustain affordability will be a long term one, so we also need to look beyond this parliament, to long term measures. We will use new Town Development corporations to kick start five new locally agreed garden towns in areas of demand pressure, delivered through Public Private partnerships, designed to attract long term Capital Investment from around the world. Last week, the national in the Structure Commission published their report on the Cambridge Milton keynes oxford corridor. Today, we back their vision and commit to building up to1 million homes by 2050, completing the road and Rail Infrastructure to support them. As a down payment on this plan, we have agreed an ambitious housing deal with oxfordshire, to deliver 100,000 homes by 2031. Capitalising on the Global Reputations of our two most famous universities and britains biggest new town, to create a dynamic new growth corridor for the 215t dynamic new growth corridor for the 21st century. Mr Deputy Speaker, this is our plan to deliver on the pledge we have made to the next generation. That the dream of Home Ownership will become a reality in this country once again. But i also wa nt to ta ke this country once again. But i also want to take action today to help young people who are saving to own a home. One of the Biggest Challenges facing young First Time Buyers is the cash required upfront. We have put £10 billion more money into help to buy equity loan to help those saving for a deposit, but i want to do more still. I have received representations for a temporary stamp duty holiday to First Time Buyers, but this would only help those who are ready to purchase now, and would offer nothing for the many who will need to save for years. So with effect from today, for all First Time Buyer purchases up to £300,000, i am abolishing stamp duty altogether. If you want more, you are going to have to let the chancellor finish chancellor of the exchequer. And mr Deputy Speaker, to ensure this release also helps First Time Buyers in very high priced areas like london, it will also be available on the first £300,000 on the Purchase Price of properties up to £500,000. Meaning an effective reduction of £5,000. Mr Deputy Speaker, that is a stamp duty cut for 95 of all First Time Buyers who pay stamp duty, and no stamp duty at all of 80 of First Time Buyers from today. When we say we will revive the homeowning dream in britain, we mean it. We do not underestimate the scale of the challenge, but today we have made a substantial down payment. Mr Deputy Speaker, one of the things that i love most about this country is its sense of opportunity. I have always felt it andi opportunity. I have always felt it and i want young people growing up today to have that same sense of boundless opportunity. In this budget, i have set out a vision for britains future, and a plan for delivering it. But by getting our debt down, by supporting british families and businesses, by investing in the technologies and the skills of the future, by creating the homes and infrastructure our country needs, we are ata infrastructure our country needs, we are at a turning point in our history, and we resolve to look forwards, not backwards. To build on the strengths of the british economy, to embrace change, not hide from it. To seize the opportunities ahead of us, and together, to build ahead of us, and together, to build a britain fit for the future. I commend this statement to the house. Studio and the chancellor was on his feet for just a little bit more than an hour there. He sits down. We will be back to the house to hear the response from Jeremy Corbyn, the leader of the opposition. Before we do, we have time to go through some of the main measures. A lot of this taking place in the context of the downgraded growth by the office for budget responsibility for this year, next year and the year after that. There were a few rabbits he pulled out. Stamp duty now abolished for First Time Buyers on properties up to £300,000. That will happen right away. 300,000 new homes a year. Now he is saying that is the target by the mid 20 205. They are committed to building 200,000 new homes so i dont think it will take that long to get to 300,000. Fuel duty is frozen for another year. That seems to bea frozen for another year. That seems to be a measure that is baked into every budget we have a cover but there will be additional funding to provide for the next pay deal for nhs staff. In other words, the funding forany nhs staff. In other words, the funding for any pay deal does not come out of existing budgets, there will be more money to be found. Lets just look at the Economic Forecast on which all of this spending is based. The obr, the independent forecasting body the chancellor relies on has downgraded Economic Growth for the next five yea rs. Economic growth for the next five years. Indeed, it is by about 2. 5 in total that the economy will be smaller than what it thought in the march budget over the next five year period. Even so, borrowing does continue to fall over the five yea rs, continue to fall over the five years, but at a slower rate than the chancellor envisaged even in march. This means there is a fiscal loosening in this budget. That is at the core of it. We will give you more forecasts in a minute but lets go back to the chamber and hear mr corbyn. Test of the budget is how it affects the reality of peoples lives all around this country. I would submit that the reality. If somebody wants to go for an early cup of tea, please do so. I am told there are men despise waiting. But what i will haveis men despise waiting. But what i will have is the leader of the opposition listened to and quietly from this side in the same way i expected the other side of the house. Jeremy corbyn. Thank you, mr Deputy Speaker. The reality test of this budget has to be how it affects ordinary peoples lives, and i believe as the days go ahead and this budget unravels, the reality will be a lot of people will be no better off and the misery many r. N. Will be continuing. Paid, mr speaker is now lower than it was in 2010 and wages are now falling again. Economic growth in the first three quarters of this year is the lowest since 2009, and the slowest of the Major Economies in the g7. It is a record of failure with the forecast of more to come. Economic growth has been revised down, productivity growth has been revised down, Business Investment revised down, peoples wages and Living Standards revised down. What sort of Strong Economy is that . What sort of fit for the future is that . You may recall, mr Deputy Speaker, the deficit was due to be eradicated by 2015. Then that moved to 2016. Then to 2017. Then 2020 and now we are looking at 2025. They are missing their major targets, but the failed and damaging policy of austerity remains. The number of people sleeping rough has doubled since 2010, and this christmas, this christmas 120,000 children will spend christmas in temporary accommodation. Three new pilot schemes to look at rough sleeping across the whole country simply doesnt cut it. We want action now to help those poor people that forced to sleep on our streets and beg. Order. I think forced to sleep on our streets and beg. Order. Ithink the forced to sleep on our streets and beg. Order. I think the whip know better. We do not need any more from you or leave the chamber. The point iam making you or leave the chamber. The point i am making is three new pilot schemes for rough sleepers simply doesnt cut it. It is a disaster for those people sleeping on our streets, forced to beg for money for a night shelter. They are looking for action now from government to give them a roof over their heads. In some parts of the country, Life Expectancy is actually beginning to fall. The last Labour Government lifted 1 million children out of poverty. It was an amazing achievement. Under this government, an extra 1 million children will be plunged into poverty by the end of this parliament. 1. 9 million pensioners, one in six of all pensioners living in poverty, the worst rate anywhere in western europe. It is falling pay, slow growth, rising poverty and this is what the chancellor has the cheek to call a Strong Economy. His predecessor said they would put the burden on those with the broader shoulders. How has that turned out . The poorest tenth of households will lose 10 of their income by 2022 while the richest will lose just 1 . So much for tackling burning injustices, this is a government tossing fuel on the fire. Personal debt levels are rising. 8. 3 Million People over indebted. If he wants to help people out of debt, he should back labours policy for a real living wage of £10 per hour by 2020. Working class young people now leaving university with £57,000 of debt because this government, his government, troubled tuition fees and the new government policy is to win over young people by keeping fees at the same rate per year trebled tuition fees. That is just one of the multitudes of injustices presided over by this government and another is universal credit which we called on ministers to pause and fix. That is the view of this house and the verdict of those on the front line. To shout out, keep going, he will, but you will be going, he will, but you will be going out of the chamber. Jeremy corbyn. I would going out of the chamber. Jeremy corbyn. Iwould rather going out of the chamber. Jeremy corbyn. I would rather people staged to listen, actually, mr Deputy Speaker. To the reality. Silence it will be in silence. Thank you, mr speaker. Maybe those opposite would like to listen to martins experience. A full time worker on a minimum wage, he said, i get paid four weekly meeting my pay date is different each month and because under the universal Credit System he was paid twice in a month and deemed to have earned too much universal credit was cut off and lead to rent arrears and he had to use a food bank for the first time in his life. That is the humiliation he and many others have gone through because of the problems of universal credit. Would it not be better to pause the whole thing and look at the problems it has caused . Whole thing and look at the problems it has caused . The chancellors solution to a failing system causing more debt is to offer a loan and the six week wait with 20 waiting longer simply becomes a five week wait. This system has been run down by £3 billion of cuts to work allowa nces, by £3 billion of cuts to work allowances, the two child limit and the perverse and appalling clause that caused evictions because housing benefit is not paid direct to the landlord. I say put this system to the landlord. I say put this syste m o n to the landlord. I say put this system on hold so it can be fixed and keep1 system on hold so it can be fixed and keep 1 million system on hold so it can be fixed and keep1 million of our children out of poverty. For years, we have had the rhetoric of a long Term Economic plan that never meets its targets. When all too many are experiencing long Term Economic pain. And the hardest hit are disabled people, Single Parents and women. It is disappointing the chancellor did not back the campaign by my honourable friend to end period poverty. He could have done that. Well done to her on the campaign, shame on him for not supporting it. The conservative ma nifesto supporting it. The conservative manifesto in the last election disappeared off its website after three days, and now some ministers opposite have put forward some half decent proposals, conspicuously borrowed from the labour manifesto. Let me tell the chancellor, as socialists we are happy to share ideas. The communities secretary is called the borrowing to invest in House Building presumably the Prime Minister slapped him down for wanting to bankrupt britain. Where is the money to fund the pay rise if he says the pay cap is over . The chancellor has not been clear for nhs workers, police, firefighters, teachers and assistants, bin collectors, armed forces personnel. Will the chancellor listen to claire, who says her mum works for the nhs and she goes above and beyond for her patients. Why does the government think it ok to underpay, over stress and under appreciate all those who work in the nhs . The nhs chief executive says the budget for the nhs next year is short of what is currently needed. From what the chancellor has said, it is still going to be well short of what is needed. He said in 2015 they would fund another 5000 gps. In they would fund another 5000 gps. In the last year, 1200, we have had 1200 fewer gps and we have lost community and Mental Health nurses. The chancellor promised 10,000,000,02015 and delivered 4. 5. If you dont mind, we will wait for the small print on the announcement but even what he said falls well short of the 6 billion labour would have delivered from ourjune ma nifesto. Have delivered from ourjune manifesto. Over 1 million have delivered from ourjune manifesto. 0ver1 million of our elderly are not receiving the care they need. Over. Over 6 billion will have been cut from social care budgets by next march. I hope he begins to understand what it is like to wait for social care, stuck in a hospital bed, with other people having to give up work to care for them. The uncaring, uncouth attitude of certain members. Order. Carry on. Mr speaker, that is why social care budgets are so important for so many desperate people in our country. Our schools will be 5 worse off by 2019, despite the conservative ma nifesto 2019, despite the conservative manifesto promising no school would be worse off. 5000 headteachers from 25 counties wrote to the chancellor saying, we are simply asking for the money that has been taken out of the system to be returned. A Senior Science technician wrote to me, robert, saying, my pay has been reduced by over 30 . I have seen massive cuts at my school, good teachers and support staff leave. That is what does for the morale of both teachers and students. According to this government, 5000 headteachers are wrong, robert is wrong, the ifs is wrong, everybody is wrong, except the chancellor. And if the chancellor bothered to listen to what local government is saying, they have been Warning Services for they have been Warning Services for the most Vulnerable Children are under more demand than ever. More children being taken into care, more in desperate need of help and support, yet they are labouring with a2 support, yet they are labouring with a 2 billion shortfall in the cost of dealing with Vulnerable Children. Because local councils have lost 80 , will have lost 80 of direct funding by 2020. The reality of this, across the country, is winnings refuges closing, youth centres and libraries and museums closing, public facilities understaffed, under resourced and underfinanced. It could be so different, but compassion can cost very little. Just £10 million is needed to establish the child funeralfund, needed to establish the child funeral fund, campaigned for brilliantly by my honourable friend the memberfor brilliantly by my honourable friend the member for swansea east. Brilliantly by my honourable friend the memberfor swansea east. Why could not the chancellor at least have agreed to fund that . Under this government there are also 20,000 fewer Police Officers and another 6000 Community Support officers and 11,000 Fire Service Staff cut as well. You cannot keep communities safe on the cheap. Tammy explains this. Our Police Presence has been taken away from the village, meaning an increase in crime, as a single pa rent an increase in crime, as a single parent i no longer feel safe an increase in crime, as a single parent i no longerfeel safe in an increase in crime, as a single parent i no longer feel safe in the village where i live, particularly at night. 5. 5 million workers earn less tha n at night. 5. 5 million workers earn less than living wage, 1 million more than five years ago. The chancellor last sunday could not even see 1. 4 Million People unemployed in this country. There is a crisis of low pay and insecure work affecting one in four women and one in six men, a record 7. 4 Million People in working households living in poverty. If we want workers earning better pay, less dependent on in work benefits, we need strong trade unions, the most effective way of boosting workers pay. Instead, this government weakened trade unions and introduced employment tribunal fees, now scrapped, unions and introduced employment tribunalfees, now scrapped, thanks to the victory in the courts by unison, a trade Union Representing members. Why did the chancellor not ta ke members. Why did the chancellor not take the opportunity to make two changes to control debt . First, to cap Credit Card Debt so nobody pays back more than they borrowed. And second, to stop Credit Card Companies increasing peoplescredit limit without their say so. Debt is being racked up because the government is weak on those who exploit people such as Rail Companies hiking fares above inflation, and Water Companies and energy suppliers. During the general election he promised an energy cap to benefit around 17 million families on standard variable tariffs. But every bill tells millions the government has broken that promise. And with 10 billion in housing benefit going into the pockets of private landlords every year, housing is a key factor in driving up the welfare bill. Not too many words from the chancellor about excessive levels of rent in the private rented sector. With this government delivering the worst rate of House Building since the 205, and a quarter. And a quarter of a million fewer council homes, any commitment would be welcome. But we have been here before. The government promised 200,000 starter homes, three years ago, and not a single one has yet been built in those three years. We need a large scale publicly funded House Building programme, not this governments accounting tricks and empty promises. We back the abolition of stamp duty for First Time Buyers because it was another labour policy in our manifesto injune, not a tory one. This government continues preference for spin over substance, that means across this country, in the words wolf powerhouse and midlands engine, now met with derision. Yorkshire and humber get only one tenth of the transport investment per head given to london. And government figures show every region in the of england has seen a fall in spending on Services Since 2012. The midlands, east and west is receiving less than 8 of total transport Infrastructure Investment compared with 50 going to london. In the east and West Midlands one in four workers are paid less than the living wage, so much for the midlands engine. We announced funding for the Trans Pennine rail route will not cut it and the other announcements today will not that balance. Combined with counter productive forced Erraid Davies lack of investment has consequences in sluggish growth and shrinking pay packets. Public investment has virtually halved. Under this government britain has the lowest rate of Public Investment in the g7. But it is now investing in driverless cars. After months of road testing back seat driving in the government. By by moving from rpi to cpi indexes non Business Rates, the chancellor has adopted another labour policy. But why dont they go further and adopt labours entire Business Rates including the annual revaluation of Business Rates. Nowhere have their chaos been more evident than over brexit. Following round after round of fruitless brexit negotiations, the brexit secretary has been shunted out for the Prime Minister who has got no further. Every Major Business organisation has written to the government telling them to pull their finger out the government telling them to pull theirfinger out and the government telling them to pull their finger out and get on with it. Businesses are delaying crucial Investment Decisions because of this government doesnt get its act together soon, they will be taking relocation decisions. Crashing out with no deal and turning britain into a tax haven would damage peoples jobs and Living Standards would serve only a wealthy few. It is not as if this government isnt doing its best to protect tax havens and its clients in the meantime. The Paradise Papers exposed how a super rich elite gets away with dodging taxes. This government has opposed measure after measure in this house and their tory colleagues in the european parliament, to clamp down on the tax havens that facilitate this outrageous leaching from our public purse. Nonpaid tax, clever reinvestment to get away with tax, actually, it is hospitals, schools, housing and it hit the poorest and most needy in our society. There is nothing immoral about dodging tax. There is everything in moral about evading it. Mr speaker, too often it feels like there is one rule for the super rich and another for the rest of us. The horrors of Grenfell Tower we re of us. The horrors of Grenfell Tower were a reflection of a system which puts profits before people, that failed to listen to working class communities. In 2013, the government received advice in a kronas report that sprinklers should be fitted in all high rise buildings. Today, once again, the government failed to fund the £1 billion investment needed. The chancellor says council should contact them. But not in house, Westminster House and they have been refused. Nothing was offered to them. We have the privilege to be members of parliament, in a building thatis members of parliament, in a building that is about to be retrofitted with sprinklers, to protect us. The message is pretty clear. This government cares more about what happens here then happens to People Living in high rise homes. In effect saying they matter less. Our country, mr speaker, is marked by growing inequality and injustice. We we re growing inequality and injustice. We were promised a revolutionary budget, the reality is nothing has changed. People were looking for help from this budget and they have been let down. Let down by a government, that like the economy be presided over, is weak and unstable and in need of urgent change. They called this a budget fit for the future. The reality is, this is a government no longerfit future. The reality is, this is a government no longer fit for office. Nicky morgan. Studio and Jeremy Corbyn sits down after a long and wide ranging response to the budget. If you wish to continue to watch what is happening in the house of commons, you can switch to the Bbc Parliament channel and that will tell you what is going on there. Here, we will go through the budget measures. The speech was 7973 words, and there was quite a lot in it. Lets go through some of the main measures and see what the chancellor has done. The surprise in the budget was the abolition of stamp duty for First Time Buyers on properties of up First Time Buyers on properties of up to £300,000. That is to start immediately. If you look at average prices outside of london, they are all well under £300,000. North east england 125,000, the south west, 200,000. That will make something of a difference in terms of the stamp duty there. The chancellor also promised 300,000 additional homes in england each year by the mid 20 205. That is quite a way off given they are already claiming to be creating over 200,000 additional new homes every year. Fuel duty has been frozen for another year. That is probably on the f1 key for the budget submission because they seem to do it every year. The chancellor pointed out how much money that has costed over the years, over £40 billion by not raising fuel duty. And he promised additionalfunding to provide for the next pay deal for nhs staff. There will be negotiations. Nhs staff will get some sort of pay rise. He will come up some sort of pay rise. He will come up with the extra money. Other measures announced by the chancellor the personal allowance will increase to £11,850, that is the you have to earn before you pay tax. That is in line with inflation. He is aiming to get to £12,500 by 2020. The high Rate Threshold will come in at £46,350. That is in line with inflation. He did commit to reaching £50,000 by the end of the decade. The Young Persons railcard is extended from ages 26 to 30. There will be lots more young people on the roadways, i am sure as a result of that. On the railways. There were a number of changes on universal credit which is the rolling up of several Welfare Benefits into a single universal credit. We will look at that in more detail later. I think he said the changes would cost around £1. 5 billion. What was a problem for the government, he has thrown a bit of money at it. All of this is behind the growth forecast. This in the macroeconomic terms is the most interesting. The independent office for budget responsibility, which does this forecast, has done some quite substantial downgrades and growth. Even in march of this year it said the economy would grow by 2 in 2017, now it is down to 1. 5 . There was one year in november they predicted the growth rate for that year and it was way out. But nevertheless, that is what is saying. 2018, it goes down a little bit further to 1. 4. Then two years of 1. 3 bit further to 1. 4. Then two years of1. 3 and then1. 5 . Bit further to 1. 4. Then two years of 1. 3 and then 1. 5 . The reality is in the next three years in no stage according to this forecast does the british economy come anywhere near 2 Economic Growth. That is quite a substantial downgrade. It would seem to imply that the underlying rate of growth we can manage has fallen substantially. Other Economic Forecasts, because of the lower Economic Growth, then you have to borrow a bit more. The chancellor is still planning for borrowing to fall in the next five years but not in nearly the same rate. In two or three years time, the amount of borrowing will be double what the obr was forecasting in march of this year. So deficit reduction continues, but at a slower rate. That surplus that the chancellor sometimes talks about, he did not mention it much today, seems to slip ever further into the distant future. Part of the reason why the growth has come down and the borrowing slowdown in reducing the deficit has taken place, is because the obr has assumed our productivity, our ability to produce things efficiently is not going to grow nearly as quickly as it hoped. That affect tax revenues and Economic Growth. However, the obr says despite unemployment on most measures now, we are pretty much at full employment, there will be 600,000 more people in employment by 2020. Here is one that the government regards as a watershed. It is saying that debt, our National Debt, all the money previous governments have borrowed over the yea rs, governments have borrowed over the years, and we have not yet paid back, the National Debt will peak at 85. 65 of back, the National Debt will peak at 85. 65 of National Income this year and then start to fall it will peak at 86 point 5 . The government exist as a watershed that debt. To come down. As an a percentage. In health, there were lots of announcements on health. The Health Service is to receive an extra 10 billion in Capital Investment over the course of this parliament the chancellor said. £2. 8 billion extra resource funding for nhs england and new funds to include 350 million this winter. The tobacco duty to rise by inflation plus 2 . There will be an extra 1 duty on hand rolling tobacco. Sorry to the hand rollers. The increased duty on some ciders will not be popular in devon. And on business. He has decided not to rise the threshold for Small Businesses. Businesses rates will not go up so quickly and business rate revaluations will take place every three years, not every five. That may put the rates up a little bit again. Other measures before we start our analysis, he announced £3 billion for brexit preparations. Whether he will have to spend all that, we dont know. The National Living wage will rise to £7 83 an hour i april next year. There will be £2 billion extra for scotland, £1. 2 billion for wales and £650 million the Northern Ireland. Vehicle excise duties will increase for the most polluting now unpopular diesel cars. A lot of other things in the budget but i think these are the main headlines. Pauljohnson, the main headlines. Pauljohnson, the institute for fiscal studies is joining us round this table. Lets get our in house experts first. The politics of this, laura . get our in house experts first. The politics of this, laura . I think Philip Hammond is digging a plaster on some of the problems the government has had. Whether that is improvements to universal credit, more money for the nhs and on housing, what the government will claim isa housing, what the government will claim is a very big response to problems and anxieties that were expressed in the election and the last few months, that this is really the crisis of our time, which the Prime Minister has personally promised to fix. The announcement of scrapping stamp duty for First Time Buyers up to £300,000, is something that will get tory backbenchers cheering. Number ten were delighted they were able to come up with an announcement like that that without question will grab some of the headlines. I think it will be difficult in the coming days for the government to escape the rather more grim economic picture behind that. The reality is if the forecasts prove to be correct, the economy and how we will all feel about whether or not we are feeling skint and grumpy, or whether things are improving under this government, is the economy is not as healthy as previously thought. Notable that £3 billion for brexit preparation, around the same money which is going into the nhs. Indeed, expensive. Kamal, what is your headline . M into the nhs. Indeed, expensive. Kamal, what is your headline . It is the downgrading growth. The office for budget responsibility has been more negative than the bank of england was a few weeks ago. Also, it has cut productivity. That means tax receipts for the government are set to fall. The judgment is in the numbers they have just published alongside the budget by £20 billion by the end of the forecast period. In response to that, Philip Hammond has tried to do two things. He has tried to do the vision thing. He was asked to have this idea of optimism. At the start of this budget it did not have any figures in. He was talking about the challenges and then the eu money. But what accompanies this is a big fiscal loosening. He is allowing for much more borrowing. If you compare the march 20 17 more borrowing. If you compare the march 2017 budget with this one, over the last three years of the forecast period, the tax takes were going to beat the spending giveaways. For every year of the forecast period, spending giveaways or borrowing giveaways are far higher than tax takes. So he has allowed for the borrowing lock to be loosened slightly over then whole five years up to 2022. I think that is the most significant change. Big changes in Business Rates. Will business be happy, disappointed, relieved . I think they will raise a small cheer. Business rates revalued according with cpi rather than rpi which is at 4 and cb is at 3 and they will bring it forward which will save business 2. 3 billion over the period and the other one, did not reduce the vat threshold from 85,000, which was a major banana skin. If he stepped onto which it would have been a bad idea. The other thing, talk of the future, extra money for productivity and Investment Fund. The kitty was 23 billion. He is now adding another year to the programme of five billion and i calculate roughly 3 billion and i calculate roughly 3 billion in new money there. He will have to find the money. Paul johnson. We mention the headwinds the deficit reduction faces because of Slower Growth in productivity growth but he has found more money to spend, which reduces the deficit reduction. He has loosened his belt. Quite a lot. He has moved, he has taken the hit to the Public Finances and added the same amount again in additional spending with the result we will be borrowing more than expected two, three years hence and if you compare this budget with the one in march 2016, when George Osborne was promising a surplus in 2019 of 10 billion, we now have a 35 billion deficit in 2019, a very big turnaround in less than two years. Most of it down to the significantly worse Economic Forecasts but a large chunk because the government, not surprisingly, has found it difficult in fact impossible to implement the scale of spending cuts talking about a couple of years ago. How significant is it our National Debt asa significant is it our National Debt as a percentage of our annual gdp, wealth creation, now starts to fall . Is it wealth creation, now starts to fall . Isita wealth creation, now starts to fall . Is it a watershed for the government orjust a is it a watershed for the government or just a mathematical formula . Is it a watershed for the government or just a mathematical formula . W does matter that it is not growing for ever. We do not know what a sustainable level of National Debt is and it might be bigger, but we know it cannot grow for ever. One of the worries for the government in the worries for the government in the long crumb is the obr appears to say instead of looking at the obr is saying they are looking at a Sustainable Growth rate and if that is the case, to get the debt down you have to borrow less because you do not get the economy growing to offset some of the impact of the deficit. Things get harder if the economy is not doing well. When you look at the growth figures. The obr might be wrong, it has in the past, but if we take them at face value as the chancellor had to to construct the chancellor had to to construct the sums, that is how it works. We look like being stuck in the slow lane for the indefinite future. That is my initial understanding by what they are saying, they seem to say over the next five years and potentially beyond, with poor productivity growth, we will be growing by Something Like 1. 5 a year and historically opted to thousand eight we were growing by at least 2 a year on average. We are stuck in the international slow lane. Over the past couple of years the rest of the World Economy has been going great guns in our economy has fallen behind the rest of the world. Why . A series of reasons, partly the productivity growth and depreciation of sterling. The rest of the world has done well and that has helped us. If the rest of the world had been doing badly we would be doing worse but we have gone from a short period of doing better than the rest of the world to one where we are doing worse. Have they given up we are doing worse. Have they given up on banners in the budget . They missed it. They were going to do it by 2015, then 2020, then it was to be the mid 205. Call it 2025. I do not see much of a reference to it any more, is it over . They have not said it is over but it looks over to me. Facing another deterioration in the Public Finances, what the chancellor did not do is say we have to hold our course or cut spending as much, he said the Public Finances have got worse and did a sense making them worse again by spending more. The deficit today is no higher thanit more. The deficit today is no higher than it was before the recession so the deficit does not look terribly worrying. It is the question for the government, are they worried about the debt . They are not the individual measures that affect people directly but have we moved, is the government asking us to say stop looking at balancing the budget, getting to surplus, look at our National Debt that will fall as a percentage of gdp gently and that is the metric we should concentrate on . It is a change . They have not said it explicitly but i think that is the impression one gets. In the long run, that is what matters. It does not matter whether we are at budget balance. We could have the debt gradually falling when we are not that budget balance but the risks are if the economy goes wrong, the debt starts rising quickly. Because we are growing less quickly we can afford less in the long run ofa we can afford less in the long run of a deficit. There is no sign the markets are particularly fazed by the new borrowing. There were important announcements and quite complicated announcements on Health Spending including extra pay for nurses. Lets go to the bbc Health Editor in birmingham, at a hospital. Hugh pym, give us your overall impression, how significant are the announcements for our nhs . impression, how significant are the announcements for our nhs . I think they are significant politically and iam sure they are significant politically and i am sure there will be headlines about budget billions but looking at the numbers it does not add up to a huge amount compared to what the nhs wanted. You have £350 million for hospitals in england this winter to deal with winter pressures, but already Senior Health leaders tell me what do you do at this late stage with that money . You can only use it to bring in staff, agency workers, overtime, and it is difficult to find people to do extra shifts. You have 1. 6 billion revenue funding for nhs into next year. The think tank had asked for 4 billion next year and Simon Stevens had not disassociated himself from that number. You have 1. 6 of day to day spending and capital on top but the view is it falls short. Im sure some will say there is money for the nhs and they are complaining again but the pressures are so intense it needed something significant the next couple of years and it is welcome to appoint that does not go as far as they wanted. They will be relieved that if and when nurses get a pay rise and it looks like the pay cap has gone, or what the rise will be is another matter, that the chancellor will not ask the hospital like the one behind due to fund it out of its existing budget, he will find extra money, is that right . That is right. The chancellor said when it came to nurses pay, the pay review body would make recommendations early next year and he would find extra money to pay for any increase that may be awarded above the current 1 . That is a big relief to nhs and employers that they will not have to fund it. Some people are saying, it will be welcome, but we do not know about doctors pay and other health staff. Thank you. Back in the studio i am joined by the chief secretary to the treasury liz truss. Welcome. Why is this conservative government presiding over declining growth . We are presided over a period of solid growth. Hugely increased employment. One of the most welcome things today in the obr forecast is 600,000 people are projected to go into jobs over the next few years but there is a challenge about growth. Why is it declining under your watch . It was supposed to be 2 this year and it will be 1. 5. Supposed to be 2 this year and it will be1. 5. Obr supposed to be 2 this year and it will be 1. 5. Obr says it will be 1. 4,1. 3,1. 3. Will be 1. 5. Obr says it will be 1. 4, 1. 3, 1. 3. You Never Get Close to 2 in the foreseeable future. This is the analysis of the obr. We have an issue with productivity as a country and that is what the chancellor last budget talked about the National Productivity Investment Fund and investment in skills, making sure people in work, which is a major achievement what we have done on employment, have the ability to earn more, get skills they need, and we can turbo charge some of those fantastic companies. Wages are stagnant. To earn more we need to improve productivity and the way to do it is to boost high productivity companies, more investment, in infrastructure, which is what our overall budget package is about. George osborne in his first budget in 2010 talked about britains week productivity and that was seven yea rs productivity and that was seven years ago. Productivity has been downgraded further by the obr and new growth is downgraded. You are coming up to a decade and it gets worse. Productivity is a longterm problem and some of the measures. Long term under your government. Some measures, improving maths in schools, it will take a while for those young people to get into the workforce and improve productivity. If you look at building crossrail, the other lines, the north london line, those take time. What we are doing is taking short term measures to improve the Living Standard of people, whether it is the freeze on fuel duty or tax while dealing with long term issues by investing in skills and infrastructure. After seven skills and infrastructure. After seve n yea rs skills and infrastructure. After seven years and growth is getting worse. Over the next years, under your government, productivity is forecast to fall, gdp growth is done every year and borrowing continues higher than you were promising even in march. Where is the good news . What is important is despite the difficult news on areas like productivity, we are keeping to our Public Finance rules and it is important we have a budget that keeps within those disciplines, which keeps control of the Public Finances. What we are facing is a labour party that wants to increase debt by half a trillion pounds. We are keeping strong Public Finances and yes we want growth to improve and yes we want growth to improve and that is why this budget is about investing in skills, new companies and helping people get on in life. Every year you fail to meet the deficit forecast. In march, by 2021, you talked by 21 22 you said we would borrow only 16 billion and now use a 30 billion. Youre not keeping a tight fiscal grip, you are going to borrow more. We are sticking with fiscal rules so we will see debt falling next year, at the same time acknowledging the real issues we have. Lets be clear. A percentage of gdp. You the absolute level of debt is rising . Accept that. As a percentage of gdp, which is the right measure, because it is what the economy can afford. Let me ask about housing. Housing was to be at the centre of this budget. Why after seven the centre of this budget. Why after seve n yea rs the centre of this budget. Why after seven years in power have you not got additional net dwellings back to the increase it was in 2007 . What we have been able to do is get the number of new houses being built up to 217,000 a year and that is the highest since 2008. But lower than 2007. By highest since 2008. But lower than 2007. By the end of the parliament we will be at a level not seen since the 19705 and the planning reforms are having an effect and we are seeing new homes. Of the 217,000 net additional dwellings, and they are not all new build. You are talking about the category that includes conversions of commercial property to homes and big houses being converted into apartments. Of the 217,000, how much would the government classify as affordable . do not have that figure. The key point is the more homes we build, the more affordable they will become and we are seeking to achieve to stop the houses becoming more unaffordable overall. Eusebio aim is to make housing affordable for more people. So the figure for new Affordable Homes out of the 217,000 is 41,000, down 20,000 on 201011 Affordable Homes out of the 217,000 is 41,000, down 20,000 on 2010 11 so asa is 41,000, down 20,000 on 2010 11 so as a percentage it is not worth. A lot of people would argue with your definition of affordable. Some cannot afford to buy homes at all. They can only created . Last year by this government . I do not have that figure. I thought housing was at the centre of the budget. It is at the centre. We are always happy to help the treasury. In the first year the conservatives were in power, almost 40,000 homes were built for social rent. We used to call them Council Houses or social housing. It is not a huge number but it was nearly 40,000. Look what has happened under your watch. By last year that was down to just over your watch. By last year that was down tojust over 5000. Your watch. By last year that was down to just over 5000. For many people on the lowest incomes, that is all they can do, is trying to get a social rent house, and you will you build 5000 . My point is we are building more across the board. The more homes we build across the board, the average price. But you are not doing it across the board. On social rent you have allowed it to collapse by what, seven acres . And we have recently made an announcement in the party conference, we are putting more money into Building Council homes. We need to build more right across the board and the key point is we wa nt to the board and the key point is we want to get to levels we saw before 1970 when we were building 300,000 a year. But if your main concern is making housing more affordable, is it really the best use of taxpayers money to scrap stamp duty for First Time Buyers, when the obrs book says actually, it may push prices up little bit and i quote from the book the main gainers from this policy are people who already own property, not First Time Buyers themselves. That is a policy cheered to the raft by tory mps and it will sound good, but the idea is it will push prices up and people who are already in their own homes will be the biggest beneficiaries. Are you proud of that . Am proud of that. When i was young many more people my age were able to buy a home and get on the housing ladder. I know how frustrated the next generation are that they dont have those opportunities. While we are doing the long term changes we need to do to our planning system, and we do need to get to that 3000 level, i think it is right. But you are push up the demand and the supplied as not come until several years latest in the meantime youre pushing prices up. The effect of building many more homes will be far greater. But when . This is great clear that the main gainers from this policy which is designed to help people you say you want to help, the Younger Generation who are finding it hard to get on housing ladder, the main beneficiaries will be people who already own their property. Is it the best use of taxpayers money to essentially be subsidising homeowners than putting in money for people at the bottom . The key policy we have got is increasing supply, changing the planning rules to allow buildings to be built up so we can build more in city centres around railway stations and so on. Those are the policies which will make the difference in the long term. In the short term, there are those buyers in their 205 and 305 who cannot get on the housing ladder. I do think it is real important we dontjust look at the long term which is vital, we help them out now with that issue. This will give people up to £5,000 off their bill to be able to buy a new home. I dont think we can just ignore that and say lets wait until we build crossrail to, lets wait until we have the new towns in place, we do have to help people now which is why it is important that we do do this measure for the short term. Do do this measure for the shortterm. Can i ask a little bit about the Brexit Effect . You have had to commit more money. You said 1. 5 billion for the next two years which is £3 billion, almost the same money you have committed to the nhs . The obr report they have just brought out said since the referendum, the pattern for gdp growth is consistent with an adverse shock to the economys future capacity. I wondered shock to the economys future capacity. Iwondered if shock to the economys future capacity. I wondered if you agreed with that and the costs of the Brexit Issues are the really big effect . You answered and about why we are not growing quickly. The obr says one of the big issues is brexit and one of the big issues for you for spending money is also brexit. We do have to spend that money making sure we are prepared for all eventualities. People want to know we have the customs arrangements in place at our ports, that our regulatory authorities work when we leave the European Union, regardless of what the scenario is. It is prudent that we put £3 billion aside for doing that. His cabinet colleagues pressured him to do so. That is and fair on the chancellor. He has already put 700 million aside for brexit preparation. That has been given to departments and this £3 billion is more money to be able to do that. That is for any scenario we have to go through, because whatever the negotiations end up with, we will have to look at customs arrangements. On kamals point. On this thing about spending ahead of brexit, the plan was to have a bit of head room, silly things went bad later down the road and we had a bit of a problem, there was a bit of a cutie left to smooth the path. Has he spent that today . There was a bit of a kick the left today . There was a bit of a kick the left we are spending on maths and science to get peoples skills up and science to get peoples skills up in that area, huge number of Computer Science teachers, really important for new Industries Like Artificial Intelligence. That is how we will deal with the challenge of leaving the European Union. We will not deal with the challenge by spending more money willy nilly. We are dealing with the challenge for making us sit. You have talked about how you stayed within the fiscal rules. Two yea rs how you stayed within the fiscal rules. Two years ago you put the balance of the Housing Associations onto the national Balance Sheet so it became part of our National Debt. This eu have moved them back onto the Balance Sheet of the Housing Associations. In, out, shake it all about. If you had not done that, would you have met your the school rules . Would you have met your the school rules . That was the decision by the office for National Statistics because those are deemed to be private sector organisations. Has only two years ago it was on your Balance Sheet. If that hadnt happened, would you have stayed within your fiscal rules . That is not a relevant point because those organisations are being treated as private sector organisations. Only two years ago you made them public. That was a decision by the ons based on the activities of those organisations. We have to go with the ons and the obr on their independent forecast. There is a reason why the treasury is not doing the forecast and it is independent organisations. We have to leave it there which is a pity because we have more to talk about. Thank you to liz truss. We now say goodbye to our viewers in scotland. Lets go back tojo coburn and get reaction in peterborough. Yes, andrew, i have been here watching the budget with employees and businesses at lawrence david, one of the countrys leading manufacturers of lorry trailers. They have all been busy at work while the budget has gone on. I will talk to two people who run Small Businesses. Philip hammond the chancellor described you as the backbone of the economy. Chuan bass who makes banners and raj who runs a lakeside cafe in peterborough. Joanne base. These were talked about in the budget Business Rates were talked about in the budget. Has this effect did you at all . Not at all. What would you have liked to have seen . Cut in Business Rates and more investment put back into businesses. How much harder has it got for you in the last year . Quite a lot harder. With minimum wages increasing and pensions coming in, there are more stretched resources which are available for Small Businesses to put back into training of staff to put in improvements and increase productivity. What skills do you need . There is a massive shortage of sales skills in the uk, good customer service. It is a section which suffers. Raj, you run a cafe so i assume the increase in food prices affect the . Massively. We already struggle in terms of the delivery of our bottom line and with the minimum wage going up and the pension contribution going up next year, it is affected even further. It was quite disappointing to see nothing there for Small Businesses like myself today. We were also hoping to see some sort of reduction in vat and hospitality which we have been talking about for years and years now. I am disappointed that nothing has happened now. Are you able to budget in the way that you would like to . Yes, we are Small Company which is constantly reinvesting money back into the business. We will look for ways we can cut money so business. We will look for ways we can cut money so we are more sustainable. At the end of the date is about sustainability. We have to make sure it is a viable operation to run. Thank you for your thoughts on the businesses you run here in peterborough. Lets catch up on some of the announcements that were made which will affect people in terms of their personal finances. Simon gompertz is down on the factory floor. I will run down there in a minute. Simon, over to floor. I will run down there in a minute. Simon, overto you. Floor. I will run down there in a minute. Simon, over to you. Thank you. Lots of comments and questions coming in. Jerome says wont a stamp duty holiday just a coming in. Jerome says wont a stamp duty holidayjust a few house prices rather than get houses built . A lot of people have said that. One state agent says he advises people to get their deals done quickly, before prices start rising, before this stamp duty abolition effect kicks in. Susie turnbull says our son is a First Time Buyer buying a flat in north london for £520,000. Will he benefit from this damp duty abolition . You get on £300,000 purchase for a home up to £500,000. It does not look good. You will have to check the details for yourselves. Yvonnein to check the details for yourselves. Yvonne in london says why havent benefits been increased . Yvonne in london says why havent benefits been increased . The freeze continues. That is a subtext in this budget not mentioned. The chancellor would say he has done something to help people claiming universal credit to get the money more quickly. Keep the questions coming in to have your say at bbc. Co. Uk budget. Jo. Lets in to have your say at bbc. Co. Uk budget. Jo. Lets talk in to have your say at bbc. Co. Uk budget. Jo. Lets talk more broadly about cost of living issues. Because of inflation they say will peak at 3 and come down next year, but what is the effect on people . We have had an economy growing slowly, wages not going up as much as people would like. The effect is our money does not going far them affected our money does not go as far. Our only hope is inflation starts to come down. Price increases are not so high over the next couple of yea rs. We so high over the next couple of years. We might feel better off because of that and there is help as well in the budget because of this. The government is going ahead with the increase in personal allowance, the increase in personal allowance, the amount you can earn before you start paying tax. That is going up to £11,800. A little bit of help will hopefully help people along. Simon gompertz, thank you. That is it from us on the factory floor but we will be back with more people to talk to with their reaction to the statement. Andrew. Thank you. Lets go back to jane hill on college green. Thank you. Lets get the views of the tuc and the institute of directors from everything we have heard from Philip Hammond. We can welcome the assistant secretary of the tuc and the institute of directors. There is a little bit about nurses pay. What is your take on that . One of the key tests was would the chancellor deliver a pay rise for britain path that workers and the Public Sector workers. I must have missed most of the announcements because he dropped some hints about what might happen in the nhs but the reality is what we needed was a pay rise for all of britains Public Sector workers who have had seven years in real terms pay cuts. Unfortunately, it means Public Sector workers will face another year of falling Living Standards and another hit on their pay packets. There is extra money for the nhs. There is an immediate lump sum for winter brochures and a big slump in terms of capital expenditure. Is that to be welcomed . There is a big amount in terms of capital expenditure. there is a big amount in terms of capital expenditure. I think we need to get into the detail. For me we have 4 million hard working public serva nts have 4 million hard working Public Servants who will face another year of falling Living Standards and that is not good enough from the chancellor. We know Public Sector workers work as part of a team. It does not matter if you are a nurse, teacher, a classroom assistant or people supporting elderly people, people supporting elderly people, people were expecting a pay rise and the chancellor has let them down. Was talk about devolution positive . It was positive. He mentioned Northern Ireland and scotland and wales that is good news for members that we would like to see more than words, we would like to see whether money is spent and what it will do to productivity and growth. In terms of productivity and growth, not positive news from the obr when we look into the next few years. The statistics looking forward are wea ker statistics looking forward are weaker than the bank of england declared recently and it is a worry because we need improve productivity to catch up with colleagues in the g7 and make sure we can create jobs and wealth needed to provide more employment. I would echo that but there is a danger the government gives with one hand and takes away with another and at the same time the chancellor talks about funding the chancellor talks about funding the Northern Powerhouse, in my city, liverpool, it is getting £330 million a year less from government than in 2010 and that is not alleviating pressures in Public Services so any investment in Public Infrastructure is good. We are behind the oecd average. Even with the announcement today. Not enough to give us the confidence we need going into the Brexit Process. To give us the confidence we need going into the Brexit Processm this a budget that makes this country brexit ready . this a budget that makes this country brexit ready . I would say in a short no, because this was an important budget to make big announcements of the bold because this is effectively the last budget until brexit day. The next one will be too late to increase Business Confidence and encourage them to go out and invest and implored people and there was not enough for business to go out there and increase confidence. Business wanted a steady as she goes budget, did they get that . By and large, he did not score any own goals and did not go backwards in that sense but it did not move enough forward in terms of how we tackle challenges of the 215t of how we tackle challenges of the 21st century, productivity, skills gap, training. Not enough detail on that. In housing, £44 billion was mentioned but we would be interested to see what that equates to. Steady as she goes was not good enough for this budget and the millions we represent, for working people and families and communities who see pay packets stagnating again. We have had a squeeze on Living Standards the past few years this was not an ambitious budget and did not deliver for working people. When we look future figures, every department, every minister will be wanting more money for their department and eve ryo ne money for their department and everyone would like to see different sectors of the Community Benefit but if the money and productivity is not there, how much room for manoeuvre does he have . This is linked. This is why he needed to invest more in infrastructure. We estimated the Public Sector pay cap has sucked billions out of the uk economy this year alone. The people we represent in schools, hospitals, councils, when they get a pay rise they spend it in the local economy, they do not squirrel it in an offshore account that money has been sucked out when we needed it. I think the budget, he dipped his toe in the water but did not make a big enough splash for business. All right. Thank you. Back to you, andrew. We can go through some of the main measures again and get some more analysis. The main measures, the headline measure, the popular papers will concentrate on, stamp duty abolished for First Time Buyers of properties up to £300,000, £300,000 is above average outside london and the south east so many may benefit from that. Sellers will also benefit. 2. 8 billion extra resource funding in nhs england for winter and the next two years. Sounds a lot but not what the nhs asked for. Quite a bit less. Additionalfunding on top of that will be provided when a new pay deal is agreed with nhs staff. The pay cap is now dead and buried in the nhs and other parts of the Public Sector. Other main measures, the maximum wait for universal credit will be reduced to five weeks. Changes in the introduction, quite expensive, he had to find 1. 5 billion to ease the introduction of this welfare payment. That is one of the changes he is able to make. He says 300,000 additional homes in england each year by the mid 20205 and the figure is already just over year by the mid 20205 and the figure is alreadyjust over 200,000 that he wa nts to is alreadyjust over 200,000 that he wants to reach 300,000 by the mid 20205, which might mean it will ta ke mid 20205, which might mean it will take a while to get planning changes through and it takes awhile to get consent and infrastructure in place. The tories know they are not popular among young people, they have extended the railcard. 26 30. I am sure young people will now be flocking to the tory banner on that, by train, of course he has frozen fuel duty another year and chancellor is now do that every year. It has ceased to be a way of the treasury raising additional revenue. The Macro Economic picture in which this budget has been drawn up in which this budget has been drawn up is not exciting. In places it is grim. Economic growth downgraded the next five years and each year, including this year, at no stage does the economy get close to growing at 2 says the obr, but it could be wrong. Borrowing is to fall in each of the next five years but it does not follow the same rate the chancellor contemplated even in march, so by 22 23 we will still borrow around 26 billion. The government wants us to focus on not this annual deficit, it is not a big percentage of gdp, not reaching surplus, it is that our overall National Debt, the government believes, is peaking and in this Financial Year of 2017 18 and thereafter begins to come down. Not in absolute terms. It will probably head towards close to two trillion at some stage but as a percentage of the National Economy it begins to come down and the treasury thinks it is significant and will keep the bond markets happy and it is the bond markets happy and it is the bond markets happy and it is the bond markets that lend us money to pay for all this spending we did not finance by tax. The obr said there would be another 600,000 people in work by 2022. Laura, bless you. Thank you. I was sneezing off microphone. The nation heard i bless you. What further political thoughts . As we expected before Philip Hammond got up onto his feet that we saw what we were predicting, no giant strides that were supposed to reboot the government but tiptoeing around potential banana skin is making small steps in terms of economic concern and political concern. I think this will not be a game changer because it does not seem there are any things that could prove to be a total disaster that the chancellor will have to unpicked. Nor does it seem the kind of event that will dramatically change the conversation around westminster, giving the government more confidence about their position. That said, from the treasury and other politicians in the government i have been speaking to, theiraim was the government i have been speaking to, their aim was not to ruffle feathers and get this through safely. I would watch out for grumbles about the stamp duty idea. Clearly it will help people who already have property and i understand from the figures buried in here it will only in theory fund an additional 3000 purchases. In here it will only in theory fund an additional3000 purchases. Not great shakes. 3000, that is it . Not great shakes. 3000, that is it . Not great shakes. 3000, that is it . Not great shakes if that was his defining mission bert 15 billion of new money overall over the next few yea rs of new money overall over the next few years of a package of measures. New money overall over the next few years of a package of measuresm is usually at this time in budget specials we find something that they result in the budget unravelling. Have we done that . This is where the stamp duty policy, there might be rumbles. I do not think we will see a grand unravelling. Liz truss defended it robustly. She knows it is popular on the backbenches. Defended it robustly. She knows it is popular on the backbenchesm will grab headlines and make the tory party happy in parts. Simon, any unravelling . I am worried about Business Rates. The Community Calling for that so Business Rates will go up by the lower inflation measure but they said they will devalue every three years. That is good but it does not give people an incentive to invest to unlock the productivity problem. If i have a property and put new plant in, i increase its rateable value and end up increase its rateable value and end up paying more Business Rates and there were calls to try to exempt any additional investment from that and every three years you could see people paying higher Business Rates sooner. What is interesting, with all budgets, of the dogs that did not bark. Nothing around benefits beyond the issue of universal credit. And nothing about social care, which was supposedly alongside housing the big mission of this government. It was on that issue that mrs may effectively lost the election. The other issue, which talks to what simon raised with liz truss, the idea that if the economy takes further terms for the worse and certainly the obr suggests the Brexit Process could be a significant adverse economic shock, what headroom is there left for the chancellor, given he has now expanded the amount he is allowing the Public Finances to borrow over the Public Finances to borrow over the next five years already, at this early stage in this cycle in these tough negotiations and they may be more positive than many believe, but if there is a significant possible adverse shock as the obr suggests, has mr hammond put all his money upfront now, because of the political pressure he faces, but actually, in three years, he will be thinking, it is looking there. We are going to say goodbye to the bbc news channel now. We continue wagg for northern scotland, the rain turning the snow. Temperatures in the south east staying in the double figures. Greater human relations of smoke over high ground in scotland. It will turn to rain as we move through the day. It could be wintry in nature over high ground. It will turn a bit cloudier with some rain later. Temperatures tomorrow at a maximum of 14 celsius. This is bbc news im jane hill at westminster where the chancellor has delivered his budget, with money for housing, the nhs and brexit preparations. Mr hammond said hed prepared a balanced budget which was full of change, full of challenges and full of new opportunities. I report today on an economy that continues to grow, continues to create more jobs than ever before and continues to confound those who seek to talk it down. They call this a budget fit for the future. The reality is this is a government no longer fit for office. Growth forecasts for the uk are substantially downgraded with output expected to be lower over the coming years. On housing, stamp duty for all First Time Buyers in england and wales will be scrapped immediately for purchases up to £300,000