Theatrical panel this evening, criminal barrister and former tory mp jerry hayes, and the author and journalist michael crick. As always , i want to hear crick. As always, i want to hear from you. Its a crucial part of the programme. You know the email by now its mailmogg gbnews. Com, but now its your favourite of the its your favourite part of the day. The news with polly day. Its the news with polly middlehurst. Middlehurst. Most kind jacob, thank you and good evening to you. Well the top story from the gb news room tonight is that the labour led Birmingham City council has approved a wave of financial cuts in whats being described as double whammy of higher as a double whammy of higher taxes and fewer services. The plans include a 21 increase in council tax over two years , and council tax over two years, and £300 million of cuts to Public Services. Speaking during todays meeting, the Council Leader , john cotton, leader, john cotton, unreservedly apologise to the citys residents for the budget but said it was a result of a raging crisis in local government. But birminghams conservative leader said the cuts will mean streets are no longer cleaned. Dumped waste is longer cleaned. Dumped waste is not enforced and broken street lights are not repaired. Well, lights are not repaired. Well, the news from birmingham comes just hours before the chancellor unveils his budget tomorrow, with jeremy hunt expected to ask councils to cut wasteful spending on equality and diversity programmes. Its also being rumoured he could announce a £0. 02 cut in the pound to National Insurance contributions. Hes aiming to put the uks economy and rishi sunaks popularity on the road to recovery. Thats despite the fiscal watchdog suggesting the government has little scope for tax cuts. Suella braverman told gb news today she doesnt believe the former tory mp lee anderson is islam phobic. Todays exclusive interview with the former home secretary comes after mr anderson claimed islamists had got control of the london mayor. He is not racist, he is not islamophobic. Hes calling out very poor performance by the mayor of london, who is completely failed to hold the met commissioner to account, and which is why weve seen emboldened islamism in the streets of london. Weve seen an mp hounded out of office because of islamism. Of islamism. Gb news understands that the policing, however, of a pro palestinian protest in london this weekend will remain unchecked. Changed officers will unchecked. Changed officers will reportedly use existing public order and anti terror laws that is after rishi sunak called on police to crack down on extremist behaviour. A 42 year extremist behaviour. A 42 year old man has admitted to starting a fire at the Constituency Office belonging to conservative mp mike freer, on Christmas Eve last year. Paul harwood denies the attack was politically motivated , but still pleaded motivated, but still pleaded guilty to two charges of arson at the old bailey earlier on. Today. A second person, 32 year old defendant zahra kasirye, denied the charges. Both defendants were remanded in custody and a further hearing has been set for march the 12th. Now the rwanda bill suffered another series of defeats in the house of lords last night, nearly 50 amendments being put forward with peers backing five changes to the governments flagship immigration bill, including assurance that including an assurance that courts can challenge whether rwanda is safe. Staff. For the rwanda is safe. Staff. For the latest stories, sign up to gb news alerts. Scan the qr code on your screen or go to gb news. Camels back now to. Jacob. Twas camels back now to. Jacob. Twas the night before the budget when all through the house not a creature was stirring, not even a mouse. A mouse. Possibly the torpor is because jeremy hunt has suggested that although he would like to be like nigel lawson, margaret thatchers famous chancellor, he needs to be more prudent. Like gordon brown. Prudent. Like gordon brown. However, the opposite is true the chancellor needs to be must be like nigel lawson. The uk tax system is a muddle and it was a muddle that was created, devised and invented in many ways by gordon brown. It disincentivised growth and innovation. Its filled with bizarre anomalies and it is in fundamental need of simplifying and rationalisation. So first, the chancellor ought to implement the following tax cuts. The Corporation Tax rise from 19 to 25 should be reversed since filoli the tourism tax that has stopped tourists from claiming back vat on their purchases should be removed. Two today stuart makin, removed. Two today stuart makin, the chief executive of marks and spencers, argued for the abolition of this harmful tax and went to on say that existing policy makes being an employer of people and Running Stores really hard. He also railed against the apprenticeship levy and the Business Rates model. And the Business Rates model. The next tax in need of axing is inheritance tax. As ive explained before, not only is inheritance tax rather sinister as the tax man lurks, visiting with the undertaker, but it also discourages investment. The Growth Commission has calculated that its abolition would boost gdp by 1. 3, and bring 300,000 people back into the workforce. People back into the workforce. The fiscal drag is another problem. It means that cutting headune problem. It means that cutting headline rates wont end up being a real cut , and it would being a real cut, and it would being a real cut, and it would be better to deal with some of the anomalies that have arisen through the banding system that we have of, and there are many anomalies within our system. As ive discussed before, some people in britain pay marginal tax rates of over 60 owing to quirks in childcare and tax free allowances. We should make a rule that no ones marginal rate should ever exceed that of the top income tax rate of 45, but with tax cuts, we need spending cuts. Two indeed, one of the cuts. Two indeed, one of the main reasons the chancellor didnt have the headroom that was previously expected was because of increased borrowing costs, partly because the inert bank of england has not started cutting rates. We should also cutting rates. We should also remove any bailouts to local councils , which just look what councils, which just look what were hearing about birmingham. Were hearing about birmingham. Theyve shown that they cannot be trusted to use public money effectively. A radical effectively. A radical transformation of our benefit system is needed. We have 5. 5 million working age people on out of work benefits, which is £180 billion of taxpayer expenditure. But its also a expenditure. But its also a waste of human as well as economic potential. Shift in economic potential. Shift in incentives is needed to cut into this spending. Saving money and enabung this spending. Saving money and enabling tax cuts to 20 billion is currently being spent on Carbon Capture and Experimental Technology that is yet to be shown to be particularly efficient. When you add all of this to the vast sums of whitehall waste and net zero spending and Public Sector spending, theres plenty of headroom to be made to afford serious tax cuts. So my advice to jeremy hunt is if we want to win the next election, unleash britains growth and improve everyones standard of living. Be nigel lawson , not gordon be nigel lawson, not gordon brown as ever. Let me know your thoughts. Mel mogg at gb news comm. And im delighted to be joined now by jonathan porteous, professor of economics and pubuc professor of economics and Public Policy at Kings College london. Jonathan thank you for coming back on. Youre always very what would you be very welcome. What would you be advising the chancellor to do. 7 do advising the chancellor to do . Do you think he should be like gordon brown . Um, no. And i agree with you. The tax system needs to be reformed simplified. Both reformed and simplified. Both gordon and George Osborne gordon brown and George Osborne have made it considered more complicated and some of the issues around , um, the high issues around, um, the high marginal rates at the top are absolutely right. However, in overall money terms, this isnt a huge amount of money. The what the chancellor should do is plug some of the really gaping holes in our Public Services. Homelessness has shot up over the last 15 years. We are letting criminals out of jail early because theres no room for them. The courts and criminal justice system, as we know , are at the point where know, are at the point where they are clogged up with delays. And while its true that some not but some local councils not all, but some local councils have not managed their finances well, although i would say theyve in general managed them a lot better than the government in you served, which has in which you served, which has wasted more money. Um, it is wasted far more money. Um, it is nonetheless the case that a lot of councils from all parties, conservative, labour and no control , um, are at conservative, labour and no control, um, are at on the conservative, labour and no control , um, are at on the verge control, um, are at on the verge of going bust simply because they cannot afford to fund services. Um, for Vulnerable Children and social care , which children and social care, which are by far the vast bulk of what council spend. Council spend. Thats very generous of you, though , isnt it . Because a lot though, isnt it . Because a lot of them have made really silly Property Investments because they could borrow money cheaply. They could borrow money cheaply. Um, just today the government agent, simon hall, the minister at dluhc , has written to the at dluhc, has written to the west of England Combined Authority to say that it isnt performing satisfactorily in terms financial controls. Terms of its financial controls. There are councils up and down the country that are spending money really poorly and not on sensible priorities. Well thats true. Um, the thurrock council, for example, went under conservative control, did waste a huge amount of money and go bankrupt on bizarre, absolutely bizarre schemes. Um so there is a bit of that. Schemes. Um so there is a bit of that. Um, but schemes. Um so there is a bit of that. Um, but theres schemes. Um so there is a bit of that. Um, but theres actually that. Um, but theres actually rather more of that in central government. Um, to be honest. Government. Um, to be honest. And the point, the main point, however, is that even councils, which are extremely well run and efficient , are facing the pinch efficient, are facing the pinch because of the pressure on cost from Childrens Services from homelessness, which of course, as i said, the government has allowed to get out of control. It was brought under control underin it was brought under control under in the 2000 and the government is unfortunately allowed it to get completely out of control again. Um, and on social care, im very interested in this point on on homelessness or or ruthlessness because it was brought under control during the pandemic as, as well. And i dont really understand. I actually had a meeting earlier on today with an organisation from from bath that tries to help people who are ruthless. What has gone wrong . Ruthless. What has gone wrong . Why has it gone back to the levels of ruthlessness that we saw many years ago . Um, it is a it is a because government has essentially taken its eye off the ball. It doesnt require a huge amount of money. You require some money. But its not mostly about money. Its about political will targeting some money, working with local councils , and precisely the sort councils, and precisely the sort of voluntary group that youre talking we will talking about and saying we will ensure that there is a bed for everybody, but it is fund. Sorry to interrupt, but it is fundamentally a authority fundamentally a local authority issue. And i know that westminster city council, uh, labour run now is extremely good at dealing with homelessness. If they can persuade people to take up the services there, there is a room for everybody in westminster for yes, councils that have a sufficient resources is sufficient. Um , the, the sufficient um, the, the sufficient capacity and the voluntary sector locally, as you said. Um, and have the political will from whatever party can do it. But it does also require pressure from government to say, look, we are a relative rich country. We know we can control this problem if we can control this problem if we take it seriously. And thats what were going to do. Okay, jonathan, thank you very much indeed. With me now is one of my great economic heroes who i have admired for as long as ive known his name. Its patrick minford, professor of applied economics at the cardiff business school. Now, patrick, business school. Now, patrick, um, just to make you big headed, youve got practically every forecast right in the last 3 or 4 decades. Youve got more experience on than almost experience on this than almost anybody else. What would be anybody else. What would you be doing were the doing if you were the chancellor . Would you chancellor . Where would you start try and get better start from to try and get better Economic Performance . Well, jacob. Well, well, thank you jacob. Well, the that the fiscal the thing is that the fiscal rules nonsense because rules are nonsense because theyre opposite theyre doing the exact opposite of to do, of what theyre supposed to do, which fiscal solvency. Which is create fiscal solvency. And terme , uh, debt and long terme, uh, debt security. See if to get long security. See if to get long terme debt security, get debt ratios coming down. You need growth. And so what the fiscal growth. And so what the fiscal rules are doing are stopping growth with all this headroom discussion. Because of course, discussion. Because of course, the economy is in a recession. So theres no money. Instead of thinking long terme about how do we get growth and therefore improve the prospects long terme of getting the economy going and also solving any problems of debt . Um, there they, theyve, theyre using these very short run fiscal rules which are destroying jeremy hunts , um, destroying jeremy hunts, um, budget essentially. Budget essentially. And theyre relying on the abr , the office for budget abr, the office for budget responsibility, which has an absolutely terrible record of making forecasts. So youre setting fiscal rules, which you then judge on the basis of people who couldnt make a forecast to save their life . Forecast to save their life . Well, their record of forecasts is poor, but its worse than that because they dont model the effects on growth of things like the marginal tax rates you were talking about earlier. Those destroy growth and they dont cost very much. But you know, nor do nor did Corporation Tax costs very much. But its very costs very much. But its very important for growth. And so important for growth. And so instead of modelling the, the, the what we know from research, which is that these lower tax rates bring in growth, which then solves the fiscal problem , then solves the fiscal problem, they dont model it at all. They regard growth as completely like manna from heaven. That they cant model well. Modelling is byzantine their modelling is byzantine because they apparently model a National Insurance cut for growth, they dont model an growth, but they dont model an income cut for growth , which income tax cut for growth, which doesnt to make any sense doesnt seem to make any sense as they are effectively the same i yes. Yes. And the Corporation Tax also very important for growth because it it it it it affects business incentives to invest and to innovate. So thats absolutely at the core of growth as are all these marginal tax rates. You talked about which hit which hit, you know, entrepreneurs that would innovate and invest particularly hard. It destroys their incentive. Incentive. Yes. And the capital taxation that youve got that im very worried. I very much dislike this phrase of jeremy hunt that he has to be gordon brown because gordon brown did such damage to the tax system with a complex system of rates , endless complex system of rates, endless twiddling, stealth taxes to try and hide what he was really doing that has made our tax system so complex that most people dont know how to use it, and takes a lot of energy and money to implement it. Well, exactly. I mean , all well, exactly. I mean, all our troubles really start from the gordon brown period of free spending and raising of raising of the top marginal rates of tax , essentially as a trap for the conservative party, because they find it very difficult to bring it down, whereas , of course, if it down, whereas, of course, if they hadnt been so mealy mouthed about it, they could have this is a key have said, look, this is a key element in growth equation. Element in the growth equation. Weve bring down as weve got to bring that down as a priority. It brings no a high priority. It brings in no revenue. Marginal tax revenue. I mean, marginal tax rates are those ridiculous levels you were talking about bnngin levels you were talking about bring in no revenue at all. So ironically its costless to get rid them. And then if you got rid of them. And then if you got rid of them. And then if you got rid those and brought growth rid of those and brought growth in then with growth your revenues start to, to, to rise rapidly. And then you can then rapidly. And then you can then bnng rapidly. And then you can then bring down these other tax rates and reinforce the pro growth environment and if you think that spending more money is the way to improve Public Services, i dont, as it happens, i think the lack of productivity in the pubuc the lack of productivity in the Public Sector means you need to focus on improvements first. You get growth, then but if you get growth, then you can afford to put more money into Public Services, which is what nigel achieved what nigel lawson achieved exactly, exactly. There are