priorities then today. stability, growth and public services. i start with stability. mr speaker, high inflation is the enemy of stability. it means higher mortgage rates, more expensive you and food bills, businesses failing and unemployment rising. it erodes savings, causes industrial unrest and cuts funding for public services. it hurts the poorest the most and eats away at the trust upon which a strong society is built. the office for budget responsibility confirms global factors budget responsibility confirms globalfactors are budget responsibility confirms global factors are the primary cause of inflation. most countries are still dealing with the fallout from a once in a century pandemic. a
support for public services means despite needing to find £55 billion in savings and tax rises, we are protecting the amount going into public services in real terms over the five year period. if we are going to sustain public services and avoid a doom loop of ever higher taxes and ever lower dynamism, we need economic growth. i now turn. they have never been interested in growth but we on their side. cheering i would like to get to the end of the budget statement like the rest of the the budget statement like the rest of the people in this country. chancellor of the exchequer. thank
nigel in 1986. smart regulatofy 7 smart regulatory reform that smart regulatory reform can spur investment from all over the world. today, using brexit world. today, using our brexit freedoms, i confirmed their next steps with our supply side transformation. by the end of next year we will decide and announce changes to eu regulations and are five growth industries, digital, life sciences, green industries, financial services and advanced manufacturingss financial services and advanced manufacturing. i financial services and advanced manufacturing. 1 asked the chief financial services and advanced manufac officer, asked the chief financial services and advanced manufac officer, asked th a:hief scientific officer, who did such a brilliantjob in a pandemic, to lead our work on how to do this. the second lesson of nigel lawson s big bang is the most important driver of global success is not tax subsidies but competition. we will legislate to give their digital markets unit new palace to
in cash terms and grow reasonable spreading at 1% a year in real terms in the three years that follow. although departments will have to make efficiencies to deal with inflationary pressures in the next two years this decision means overall spending on public services will continue to rise in real terms for the next five years. before i turn to our plan for schools and the nhs, i start with two other areas of spending. the department for work and pensions has a critical role in supporting people into work and i am proud to live in a country with one of the most comprehensive safety nets anywhere in the world. but i am also concerned we have seen a sharp increase in economically inactive working age adults of around 630,000 people since the start of the pandemic.
businesses. our plan for the cost of living delivers lower inflation, lower mortgage rates, shallower downturn and lower unemployment. it also involves public spending discipline so i turn next to how we protect public services through a challenging period. the prime minister s vision for this country has at its heart a strong nhs and world class education. we know a strong economy depends on strong public services so we will protect them as much as we can as we deliver our plan for stability and growth. we do have to take difficult decisions on public finances. so we are going to grow public spending but we will grow more slowly than the growth in the economy. for the remaining two years of the spending review we will protect increases in departmental budgets we have set out