six of them the russians in ukraine. six of them have been orphaned. they will be in the ipu room from 1pm tilt 2pm this afternoon. all colleagues are welcome to drop by. will the prime ministerjoin me in paying tribute to these children and take this opportunity to reiterate our support for ukraine in theirfight opportunity to reiterate our support for ukraine in their fight for independence, freedom and survival? ijoin my honourable friend in paying tribute to the parents of these children and many others but also to take the opportunity to say that while events in the middle east have been dominating the headlines, i assure my friend that rain our allies are steadfast in our resolve to support ukraine for as long as it takes to achieve victory. that is why the foreign secretary visited last week and confirmed the uk's unwavering support. putin cannot outlast the hope or spirit of the

ukrainian people and they should continue to have our support for as long as it takes. fix, continue to have our support for as long as it takes.— long as it takes. a few weeks ago, the world cringed _ long as it takes. a few weeks ago, the world cringed at _ long as it takes. a few weeks ago, the world cringed at the _ long as it takes. a few weeks ago, the world cringed at the prime - the world cringed at the prime minister's fawning welcome for elon musk and this time, they are fleeing his platform on the latest vile outburst. what exactly is the prime minister thinking he might learn from an unelected super—rich individual who had taken over a once successful organisation and plunged it into a death spiral? mr successful organisation and plunged it into a death spiral?— it into a death spiral? mr speaker, it's a striking... _ it into a death spiral? mr speaker, it's a striking... from _ it into a death spiral? mr speaker, it's a striking... from the - it's a striking... from the honourable memberfrom cambridge, of all places, to not understand the importance of technology sectors and companies to the growth of our economy. it illustrates everything wrong with labour�*s approach to the economy. the world saw the uk

playing a lead in defining regulations to technology that will transform how we live. it was a great example of the uk leading the way and tribute to our incredible entrepreneurs and businesses which are poorly represented by... read wednesday _ are poorly represented by... read wednesday when _ are poorly represented by... read wednesday when we _ are poorly represented by... y-” wednesday when we remember millions of christians worldwide persecuted for their faith. of christians worldwide persecuted fortheirfaith. people of christians worldwide persecuted for their faith. people like margaret artur, a nurse, mother of four, here from nigeria, who hid behind the altar as their church service was attacked. 100 were injured, 41 killed, simply for being injured, 41 killed, simply for being in church. margaret lost both legs and an eye. thousands more suffer similarly in nigeria each year. does the prime minister agree that the best way we can honour red wednesday

todayis best way we can honour red wednesday today is committed to quickly implementing the good words of the international development white paper predicted yesterday to ensure uk development policies going forward are inclusive of those marginalised for their religion or beliefs? . ~ , ., ., beliefs? can i think my honourable friend for her— beliefs? can i think my honourable friend for her continuing _ beliefs? can i think my honourable j friend for her continuing dedication as my special envoy for this vital issue? red wednesday is an important moment to show solidarity for christians and all those persecuted across the world for their religion or belief. marking this event annually was one of the recommendations of the bishops report and i'm pleased that today we will light up buildings in the uk in red in support. i'm also pleased to say we have taken forward all 22 recommendations in a way we believe is making a real change for those persecuted for their religion or belief. ., . ., , , belief. that completes prime minister's — belief. that completes prime minister's questions. -

belief. that completes prime minister's questions. before | belief. that completes prime - minister's questions. before i call the chancellor, jeremy hunt, it may help to _ the chancellor, jeremy hunt, it may help to set — the chancellor, jeremy hunt, it may help to set out how the autumn statement will unfold. once the chancellor has delivered his statement, copies of the resolutions relating to— statement, copies of the resolutions relating to the statement will be made _ relating to the statement will be made available at the vote office and online. i will then call the shadow— and online. i will then call the shadow chancellor, and other members to ask_ shadow chancellor, and other members to ask questions. this will follow the usual— to ask questions. this will follow the usual pattern for a ministerial statement. at the end of questions, the chancellor will be called to move — the chancellor will be called to move a motion on section five of the provisional_ move a motion on section five of the provisional collection of taxes act 1968~ _ provisional collection of taxes act 1968~ the — provisional collection of taxes act 1968. the question on this motion must _ 1968. the question on this motion must be _ 1968. the question on this motion must be put without debate. we will then proceed to do the debate on the statement _ then proceed to do the debate on the statement resolutions and a minister will move _ statement resolutions and a minister will move the resolutions and open the debate. debate will take place over three days, concluding on mondax — over three days, concluding on monday. at the end of the debate on monday, _ monday. at the end of the debate on monday, the question on the resolutions will be disposed of and the questions on the remaining

resolutions will be taken formally without _ resolutions will be taken formally without further debate. i now call the chancellor to make the autumn statement. jeremy hunt. mr speaker, i come today _ statement. jeremy hunt. mr speaker, i come today with _ statement. jeremy hunt. mr speaker, i come today with good _ statement. jeremy hunt. mr speaker, i come today with good news. - statement. jeremy hunt. mr speaker, i come today with good news. it - statement. jeremy hunt. mr speaker, i come today with good news. it is - i come today with good news. it is my wife's birthday and unlike me, she is looking younger every year. i turn to the statement. after a global pandemic and energy crisis, we have taken difficult decisions to put our economy back on track. we have supported families with rising bills, cut borrowing and halve deflation. ratherthan bills, cut borrowing and halve deflation. rather than a recession, the economy has grown. rather than falling as predicted, real incomes have risen. our plan for the british economy is working but the work is not done. others proposed a more short—term approach. but we have not

made an affordable pay offers to the unions, we have not stopped oil and gas exploration and not increased borrowing by £28 billion a year. that would have... that would have pushed inflation up just when we needed to bring it down. under this prime minister we take decisions for the long—term. in today's autumn statement,, our choices not to big spending and high tax, we know that leads to less growth not more. instead, we cut taxes and reward work. we deliver world—class education, domestic sustainable energy and back british business. 110 growth measures that, don't worry i won't go through them all...

i will if you like. in summary, they remove planning red tape, speed up access to the national grid, support entrepreneurs raising capital, get behind the fastest growing industries, unlock foreign investment, boosts opportunity to every corner of the country and cut business taxes. the office for budget responsibility say the combined impact of these measures will raise business investment, get more people into work, reduce inflation next year and increase gdp. but conservatives also know that a dynamic economy depends on the energy and enterprise of people more than any other diktats or decisions by ministers. ministers do notjust remove barriers to investment, they reward effort and

work. i will go through the measures in three parts. in the first, i will use updated obr forecasts to show progress we are making against the prime minister's economic priorities. part two set up growth measures to back british business and finally, measures to make work pgy- and finally, measures to make work pay. before i start with the forecasts, i want to express my horror at the murderous attack on israeli citizens 0ctober seven and the subsequent loss of lives. i remember for the the subsequent loss of lives. i rememberfor the rest the subsequent loss of lives. i remember for the rest of my life as i know many others will, being taken to auschwitz and the remarkable holocaust educational trust but i am deeply concerned about the rise of anti—semitism in our country. i am announcing up to £7 million over the next three years for organisations like the holocaust education trust to tackle anti—semitism in schools and universities. i will also repeat

the £3 million uplift to the community security trust. when it comes to anti—semitism and all forms of racism, we must never allow the clock to be turned back. i move onto the obr for school forecasts. i thank richard hughes and his team for their sterling work in preparing it. three of my right honourable friends of the five pledges of the start of the year were economic. growing the economy and reducing debt. today i can report to the house we are delivering on all three. let's start with inflation. the shadow chancellor didn't mention it in her conference speech. my conference speech was before hers so all she had to do was copy and pasting... but it speaks volumes

that during the worst global inflation shot for her generation it didn't even get a mention. if controlling inflation isn't a priority for labour, it is for us. when the prime minister and i took office, inflation was 11.1%. last week it fell to li.6%. we promise to half invasion and we have halved it. quite inflation is now lower than half the economy in the eu and the obr say the headline inflation will fall to 2.8% by the end of 2024 before falling to 2% target in 2025. i will not take risks with inflation. the obr confirmed that the measures i take today make inflation lower next year than it would otherwise have been. i thank the independent bank of england monetary policy committee for their crucial role in bringing inflation

down and we will continue to back them to do whatever it takes until he is done. but as we do, we will continue to support families in difficulty. today i add for further measures to help the cost of living. those in the lowest incomes, i understand the concerns have on the effect of working centres on matching benefit increases to evasion. i know has been speculation that we will increase benefits next year by the october figure for inflation, but because of living pressures remain at their most acute for the poorest families. someone said, the garment has decided to increase universal credit and other benefits from next april by 6.7% in line with september's inflation figure, an average increase of £470 for five and a half million households next year. vital support to those on the very lowest incomes from a compassionate conservative

government. second, because rent can constitute more than half the living gusts of private renters on the lowest incomes, i have listened closely to many colleagues as well as the institute for fiscal surveys uk and is thejoseph rowntree foundation said that unfreezing local housing allowance was an urgent priority. i will therefore increase the local housing allowance rates to 30th percentile of local market rents giving 1.6 million households an average of £800 of support next year. third, although i will increase duty on hand—rolling tobacco by an additional 10% above the tobacco duty escalator, i know for many people, going to the pub has become more expensive. i have listened closely to the persuasive arguments on alcohol duties from my

honourable friend for murray and right honourable friend for a dumb... have also listened to the great british client, the right honourable friend for glamorgan in buckingham, mine constituency to councillorjane austin supporting a farmer pub in bramley and to the sun. as well as confirming our brexit pubs guarantee, which means the duty on a pint is always lower than in the shops, i have decided to freeze all alcohol duty until august one to next year. that means no increase in duty on beer, cider, wine or spirits. finally, pensions. the triple lock has helped lift 250,000 older people out of poverty since it

was instituted by a conservative government in 2011. it has been a lifeline for many during a period of high inflation. there have been reports that we would operate by lower amount to smooth out the effect of higher public sector bonuses injuly, but that effect of higher public sector bonuses in july, but that would effect of higher public sector bonuses injuly, but that would have been particularly difficult for 1 million pensioners whose only income is from the state. so instead, today, we are now our commitment to the triple lock in full. from april 24, we will increase the full new state pension by eight and a half cents to £221 20 a week to £900 state pension by eight and a half cents to £22120 a week to £900 a year. this is one of the largest ever cash increases to the state pension, showing a conservative government will always back our pensioners. including today's measures, our commitments to easing clustering pressures has risen 104

billion. that means paying half the cost of the average ben do energy bill since last october and amounts to an average of £700 per household. we are able to do that only because we reduce the deficit by 80% ahead of the pandemic which the party opposite might reflect on having imposed us every step of the way. next, i turned to my right honourable friend, the prime ministers pledged reduce debt. before it decisions on last year's autumn statement, debt was predicted to rise to almost 100% of gdp by the end of the forecast. since then, the economy has outperformed expectations and i have taken difficult decisions to reduce borrowing. as a result, headline debt is predicted to be 94% of gdp tjy debt is predicted to be 94% of gdp by the end of the forecast. the obr

today forecasts underlined it will be under 90... 93.2% in 26—7 before it reducing to 28—29. that is lower in every year compared to forecasts in every year compared to forecasts in the spring. we therefore meet our fiscal rule to have underlying debt falling as a percentage of gdp in the final year of the forecast with double the headroom compared to the obr march forecast. we will continue to have the second lowest government debt in the g7. lower than the united states, canada, france, italy orjapan. i tend to borrowing. the rat honourable lady opposites said when it comes to rowing, she will take it up to £28 billion a year. takeit take it up to £28 billion a year. take it up, mr speaker. indeed, she has opposed every decision we are made to reduce borrowing. but this side of the house will bring

borrowing down because as the late lord lawson said, borrowing is a deferred tax on future generations. i see the leader of the opposition shaking his head. in fact, we do have something in common. both he and i wanted to make a jeremy have something in common. both he and i wanted to make ajeremy prime minister. in fairness, his party and mine are probably equally really relieved we failed. and the numbers and... the numbers... the numbers show the contrast. according to the obr, borrowing is lower this year

and next and an average across the forecast by not .7 billion every year compared to the spring budget forecasts, it falls from four and a half percent to 3%...1.1% forecasts, it falls from four and a half percent to 3%... 1.1% in 28 — 29. that means we meet our second fiscal rule that public sector borrowing must be below 3% of gdp in almost every year of the forecast. some of this improvement is from higher tax receipts from a stronger economy but we also maintain a disciplined approach to public spending. as i set out in the spring budget, resource spending will increase by 1% a year from 25—6 in real terms and we are sustaining the record 2020 increase in capital spending in cash terms until the end of the forecast. within this, we will meet our nato commitment to

splendid 2% of gdp on defence critical at a time of global threats to the international order most notably in putin's evil war in ukraine. we also support a group of people to whom we owe our freedom, our brave veterans. i will extend national insurance relief to honourable veterans and provide £10 million to support the pathways in people programme and i thank our excellent veterans minister for championing their cause. we are showing we are prepared to increase funding for vital public services with record numbers of police officers, doctors, nurses and teachers. we are nearly doubling the numbers of doctors and nurses we train, having given the nhs is first ever long—term workforce plan as i promised to do a year ago. we are also attacking the biggest single preventable cause of mortality the nhs deals with by bringing forward

plans for a smoke—free generation. but alongside extra funding and support, we need to see reform. we need a more productive state, not a big estate. that's why i want the public sector to increase productivity growth by at least half a percent a year, the level at which the side of our state starts to reduce as a proportion of gdp. i have already announced plans to cap and reduce the size of the civil service to pre—pandemic levels. today, i pay tribute to my friend, the former chief secretary of the two who started our brilliant public sector programme which will now be pursued by his successor who is already with me to meets personnel to understand why bureaucracy is holding them back. through this vital work, we will ensure that over time, the growth in public spending is lower than the growth in the

economy whilst always predicting the services the public value. i will provide hmrc the resources they need to ensure everyone pays a tax they owe, raising an additional £5 billion across the forecast period. my billion across the forecast period. my right honourable friend also promised to grow the economy. since 2010, despite inheriting what was then the worst recession since the second world war, conservative administrations have provided —— presided over growth of many competitors including spain, italy, france... they don't like to hear this but... spain, portugal, france, italy, netherlands, austria, germany, japan. we've grown fasten all of them since 2010. but all those countries have faced the

pandemic and energy shock and as a result, last autumn, the obr forecasted a recession in which it was supposed to shrink by 1.4% this year. instead, it grew. infact, it has grown faster than the euro area, revise numbers from the 0ns said the economy is 1.8% larger than pre—pandemic. looking ahead, the obr express economy to grow by not .6% this year and not .7 next year. after that, 1.4%, 1.9%, this year and not .7 next year. afterthat,1.4%,1.9%,2% and 1.7% after that, 1.4%, 1.9%, 2% and 1.7% in 28. afterthat,1.4%,1.9%,2% and 1.7% in 28. if we want those numbers to be higher, we need higher productivity. the private sector is more productive in countries like the united states, germany and france because it invests more stop on average two percentage points more of gdp every year. the hundred and ten measures i take today help

close that gap by boosting business investment by £20 billion a year. they do not involve borrowing more and ramping up debt is some advocate. instead, they unlock investment with supply side reforms that back british business in the following areas. first, skills. no economy can prosper without investing in the potential of its people. despite strong opposition, we took difficult decisions to reform our schools. england's nine to ten—year—olds are now the fourth best readers in the world is and since 2015, our 15 to 16—year—olds have risen in rankings for maths not least due to the efforts of the right honourable member for right honourable memberfor bognor regis. 9 million adults in england still have low basic literacy or

numeracy skills. the garments that are a new standard to ensure all school leavers reach minimum standards in maths and english and while the party opposite wants to reduce the number of apprentices, we want to increase them. following engagement announcing more funding to pilot the number of apprentices in engineering and other key growth areas where there are shortages. next, planning. it takes too long... there are 110 of these measures so be patient. i'm advance planning. it takes too long to approve infrastructure projects and business planning applications. many businesses say they would be willing to pay more if they knew their application would be approved faster. next year, working with the

community secretary, i will reform the system to allow local authorities to recover the full gusts of major business planning applications in return for being required to meet guaranteed faster timelines. if they fail, fees will be refunded automatically with the application processed free of charge. a prompt service or your money back, just as would be the case in the private sector. many planning applications are for house—building. the leader of the opposition tells us he wanted to be a builder not a blocker. it didn't last long. just a few months later, labour blocked reforms to the rules and nutrients neutrality, shamelessly preventing 100,000 houses from being built. conservatives on the other hand are the builders of more has been completed in 21—22 than any single

year of the last labour government. and today we take further decisions to unlock the building of more homes. we will invest £110 million over this year and next to deliver high quality schemes, invest £132 million to undo the backlog and invest in quarters in cambridge, london and leeds, leading to additional dwellings. 150 —— £450 million the local housing fund to deliver new homes and consult on a new permitted development rights to allow any house to be into two flats provided the exterior remains unaffected. it's also taking too long for clean energy businesses to access the electricity grid. after talking to businesses such as national grid, octopus energy and

sse, we published ourfull response to the review and action plan. this will cut grid access delays by 90% and offer up to £10,000 off electricity bills over the next ten years for those living closest to new transmission infrastructure. taking together these grid forms, is expected to accelerate over £90 billion of additional business investment over the next ten years. next, foreign direct investment which each and very grateful for how to increase foreign direct investment. we accept all his headline recommendations and in particular will put in place a concierge service for large international investors modelled on the best search service offered by competitors and increase funding for the office for investment to deliver it. i now turn to reforms to pension funds that will increase the flow of

capital going to our most promising companies in a way that also improves outcomes for savers. i will take forward my reforms starting with measures to consolidate the industry. by 2030, the majority of workplace savers will have the pension pots managed in schemes over 30 billion and by 2040, all pension funds will be invested in pools of 200 billion or more. i support the establishment of pension funds including the lift competition, a new growth fund run by the british as bank and investment vehicle for smaller pension schemes. i will also consult on giving savers a legal right to require a new employer to pay pension contributions into their existing pension pot if they choose, meaning people can move to having

one pension pot for life. these reforms could unlock an extra £75 billion of financing for high—growth companies by 2030 and provide an extra £1000 a year in retirement for an average earner saving for 18. alongside this, proposing further capital market reforms to boost attractiveness of our markets and make sure the uk remains one of the most attractive places to start, grow and listed company and is part of this, i will explore options for a natwest retail share offer in the next 12 months, subject to market conditions and achieving value for money. it is time to get seared investing again. next, measures of support. our most innovative industries. in the last decade, under are conservatives, we have

grown to become the third—largest technology sector in the world, double the size of germany, three times in france. the biggest life science industry in europe, the third largest generator of renewable electricity after germany and norway and the eighth largest manufacturing in the world. when it comes to tech, we know ai will be at the heart of any future growth. i want to make sure our universities, scientists and start—ups can access the computer power they need. so building on the success of the supercomputing centres in edinburgh and bristol, iwill supercomputing centres in edinburgh and bristol, i will invest a further £500 million over the next two years to fund further innovation centres to fund further innovation centres to help make us an ai powerhouse. 0ur creative industry supports the largest film and tv sector and this year blockbuster barbie was filmed in the constituency of watford where

the sun always shines. i know that even work could be invested in visual effects to increase the generosity of the film and tax credits so i will talk on how to make that happen. it is discovered flaxseed dry vaccines and treatments disc tray more lives across the world than any other country and i'm incredibly proud of our life sciences industry. to further support research and development i am creating a new simplified r&d tax relief combining the existing tax credit and sme schemes and i will reduce the rate of which loss—making companies are taxed within the merge scheme from 25% to 19% and lower the threshold for additional support for r&d and smes that i announced in the spring to 30% benefiting a further

5000 smes. because 2028 marks the centenary of the invention of penicillin by alexander fleming, i am giving £5 million to imperial couege am giving £5 million to imperial college healthcare nhs trusts to set “p college healthcare nhs trusts to set up a flaming centre to inspire the next generation of world changing innovations. —— mike fleming centre... for our advanced manufacturing and green energy sectors, international investors say the biggest things we can do is to announce a longer term strategy for their industries so would the secretaries of state and business and trade and energy security and a zero i am today publishing those plans. i confirm we will make available for and a half billion pounds in support over the five years to 2030 to attract investment into strategic manufacturing sectors that include support of £2 billion of zero emission investments in the automotive sector, something that has been warmly welcomed by the nissan and toyota and £975 billion

for airspace building in decades of successful firms for airspace building in decades of successfulfirms like for airspace building in decades of successful firms like airbus and rolls—royce and £520 million for life sciences building the strength of world class british pharmacy companies like astrazeneca and gsk. we'll also provide £960 billion for the green industry growth —— million pounds. nuclear commerce is us and hydrogen. these targeted investments will ensure the uk remains competitive in sectors where we are already leaders and innovative in sectors where we are not. and taken together across our fastest—growing innovation sectors, the support will attract an estimated £2 billion of additional investment every year over the next decade. 0ne additional investment every year over the next decade. one of the reasons we support manufacturing and clean energy sectors is they help to level up growth across the united kingdom so i now turn to further

levelling up measures. in the spring i announced we would deliver 12 new investment cells where we would create institutes to collaborate across the uk. since then the exchequer secretary has done outstanding work across government to bring this vision to fruition. following tenacious representations of the honourable member without whom a mention would mean no chance of a public speech was complete and representations from the unstoppable mayor of tees valley, i have decided to extend the financial incentives for investment zones in the tax release for free ports from five years to ten years. i will also set “p years to ten years. i will also set up hundred and £50 million investment opportunity fund to capitalise investment into the programme. —— catalysed... today

having listened to representations from the west midlands sales chief andy street as well as the honourable memberfor andy street as well as the honourable member for mansfield and the honourable memberfor bury north i am the honourable memberfor bury north iam announcing the honourable memberfor bury north i am announcing three further investment zones focused on advanced manufacturing in the west midlands, east midlands and greater manchester. together, local partners expect these will help catalyse over £3 billion of private investment and 65,000 newjobs. and having listened to the honourable memberfor wrexham and the honourable memberfor clywd south, i can announce a second investment zone in wales and the fantastic region of wrexham and fincher which i will visit tomorrow. we are publishing new devolution deals with four areas, including hull and east yorkshire and offering devolved powers to even more county

areas. one of those areas would be the leaf used and most charming counties in the country, namely surrey. where the leader of the opposition grew up. we don't get everything right. 0n opposition grew up. we don't get everything right. on monday, we saw the announcement of £1 billion of funding through round three of the levelling up fund, supporting projects of the campaigning efforts for dewsbury, doncaster scunthorpe for dewsbury, doncaster scu nthorpe and for dewsbury, doncaster scunthorpe and chorley. i can also confirm that we will proceed with over £15 million of funding for high quality regeneration projects in communities such as bolsover, monmouthshire, warrington and eden valley, all of which have particularly effective local mps as their champions. and because we are proudly the conservative and unionist party, i

am announcing £80 million for the new levelling up partnerships in scotland, £500,000 in additional funding to support the successful tackling paramilitary is programme in northern ireland. next, small businesses. i run my own for 14 years and i have always known that every big business was a small business wants. the federation of small businesses say the biggest thing i could do to help their members is end the scourge of late payments. the procurement act we passed means the 30 day payment terms which were already set for public sector contracts will automatically apply throughout the subcontract supply chain but from april 24, subcontract supply chain but from april24, i subcontract supply chain but from april 24, i will also introduce a condition that any company that reading for large government contracts should demonstrate they pay their own invoices within an average of 55 days, which will

reduce progressively to 30 days. any small business will also tell you the biggest frustration they have is the biggest frustration they have is the tax you pay before making a penny of profit, not least business rates. the government has already taken a third of properties out of rates completely through small business rates relief. we have frozen the tax rate for the last three years at a cost of 14 and a half billion pounds and we have removed our caps from transitional relief and for retail, hospitality and leisure businesses, we have introduced a one 75% dismissed r rate discount and business rates to £110,000 and those measures as are the average independent shop over £20,000. it's not possible to continue with temporary support measures forever, but whilst the standard multiply, which applies to high value properties will rise in line with inflation, i have today decided that we will freeze the

small business multiplier for a further year and following extensive discussions with the fsb and many colleagues in this house i have decided to extend the 75% business rate discount for retail, hospitality and leisure for another year. this will save the average independent pub over £12,800 next year and at a cost of £4.3 billion is a large tax cut which recognises the role of pubs and high—street shops our communities. i thank the members for stockton south, barrow in furness and east devon further tenacious campaigning on this issue and finally, mr speaker, i change the smallest of all businesses, those run by the self—employed. these are the people who literally kept our country running during the

pandemic. the plumbers who fixed our boilers on lockdown, the delivery drivers who brought us our shopping, the pharmacies farmers who kept food on our plates and i want to reform and simplify taxes paid by the self—employed. today i am announcing a major reform of one of those taxes. it's when most people haven't heard of but it's a big dealfor those who have to pay it. class two national insurance is a flat rate of compulsory charge currently £3 40 per week paid by self—employed people earning more than 12,570 which gives state pension entitlements. today, after careful consideration, and in recognition of the contribution made by self—employed people to our country, i can announce that we are abolishing class two national insurance altogether. it will save

the average self—employed person £192 per year. access to entitlements and credits will be maintained in full and those who choose to pay voluntarily will still be able to do so but this change simplifies and cuts tax for nearly 2 million self—employed people whilst protecting the interests of those on the lowest pay and because we value their work i am taking one further step for the self—employed. they also pay class four national insurance on 9% on all earnings between 12,570 and 15,270. i have decided to cut that tax by one percentage point to 8% from april and taken together with the abolition of the compulsory class to charge and these reforms will save around 2 million self—employed people an average of £350 per year from april. mr speaker, we are

backing small businesses by freezing their business rates, extending retail hospitality and leisure relief, abolishing compulsory class to national insurance payments and reducing class for a national insurance by one percentage point in today puzzling autumn statement for growth and small businesses work so hard for us in the conservative government today is working hard for them. i turned out to my final measure to back british business. as i said, since 2010, we have seen the second highest growth in investment of any g7 country. however, if we are to raise productivity, we need to increase business investment further. in 2021, my right honourable friend, the prime minister, introduced a super deduction for large businesses to further stimulate business investment and the spring i introduced full expenses for three years and this means that for every

million pounds a company invests, they get £250,000 of their tax bill in that year. the cbi and other groups have said that making this measure permanent would be the single most transformative thing i could do for business investment and growth. the centre for policy studies say it would maximise business investment, boost productivity and deliver higher levels of gdp, because it cost £11 billion per year, i made clear i would only do so it was affordable. well, with inflation halved, borrowing down and debt falling, today i deliver on that promise. i will today make full expenses

permanent and thus the largest business tax cut in modern british history. it means we have notjust the lowest headline corporation tax rate in the g7 but the most generous capital allowances on the 0b are say this will increase annual investment tjy this will increase annual investment by around £3 billion per yearfor a total of £14 billion over the forecast period. we know underside of the house the weight back british businesses is not to borrow more or subsidise more but to increase the incentives to invest and we do that today by introducing one of the most generous tax reliefs anywhere in the world, a huge boost to british competitiveness in an autumn statement for growth. skills, planning, infrastructural reform, pension fund reform, support for innovation industries, levelling up, backing small businesses and full expensing. under labour or it was...

since 2010 it has been 9.8% of gdp but today we go further because taken together the overall impact of today puzzling growth measures will be to increase business investment in the uk economy by around £20 billion per year within the decade, 1% of gdp are today's level. this is the biggest level boost for business investment in modern times, decisive step towards closing a productivity gap with other major economies in the most effective way we can raise wages and living standards for every family in the country. as well as backing business, conservatives know you need to back the people, without whose effort no business can succeed. the entrepreneur taking risks, the builder working weekends, the nurse working nights and the job—seeker leaving benefits behind.

i therefore conclude with three further supply—side reforms designed to improve the incentives to work in a modern dynamic economy. and i begin with welfare and i want to start by thanking the outstanding work on the pension secretary for his help in developing these reforms. he builds on the work of my right honourable friend who introduced universal credit. those reforms help to reduce unemployment which has fallen by over1 million, but to their shame, the party opposite voz voted against it 30 times because they think compassion is about giving money but we think it's a giving opportunity. but post—pandemic, we still have over 7 million adults of working age, excluding students, who are not working despite a 1 million vacancies in the economy. money can and want to work but are system

makes it too hard. in the spring budget i announced 30 hours of free childcare for working parents of 1—2 —year—olds. that plan still opposed by the party opposite to start rolling out in april and will help tens of thousands of parents return to work without having to worry about damaging their career prospects. till we die we focus on helping those with sickness or disability in the long term unemployed. every year, we sign off over 100,000 people and to benefits with no requirement to look for work because of sickness or disability. that waste of potential is wrong economically and wrong morally. when the secretary of state for work and pensions and with a person i nasty back to work plan and we will make sure the treatment rather than time off becomes the default and we will

reflect greater flexibility and availability of home—working after the pandemic and we will spend £1.3 billion over the next five years to help nearly 700,000 people conditions find jobs. help nearly 700,000 people conditions findjobs. 0ver180,000 more people will be helped through the universal support programme and nearly 500,000 more people will be offered treatment and meant for mental health conditions and employment support. 0ver mental health conditions and employment support. over the forecast period, the 0b ijudge these measures will half the flow of people who are signed off work with no work search requirement and at the same time will provide a further 1.3 billion funding to offer extra help to the 300,000 people who have been unemployed for over a year without any sickness or disability. but we will ask for something in return. if, after 18 months of intensive support, job—seekers have

not found a job, we will run out a programme requirement bring them to take part in mandatory work placement to increase their skills and improve their employability and if they choose not to engage with the work search proved service for six months, we will close their case and stop their benefits. taken together with the labour supply measures i announced in the spring, the 0b are say we will increase the number of people in work by around 200,000 at the end of the forecast period that will permanently increase the size of the economy. i know some on the benches opposite would prefer to fill those vacancies in a different way, they would hanker after more liberal immigration regime of dream of ringing bring back free movement but conservatives say we should unlock the potential we have right here at home. and we do that with the

biggest set of welfare reforms in a decade into the puzzling autumn statement for growth. mr speaker, if we are to incentivise work, we must also tackle low pay. people get up early, putting the hours and work hard for the families deserve be paid fairly. since 2010, those on the minimum wage, now the national living wage, have seen their hourly wage go up from £5 80 per hour to £10 42 an hour. that's real terms increase of than 20% but because we also double the threshold by which you also double the threshold by which y°u pay also double the threshold by which you pay tax or national insurance, their after—tax income has gone up, not by 20%, but by 25%, more than any other income group. today i confirm we will go further and accept the low pay commission recommendation to increase the national living wage by 9.8% to £11 44 per hour and that is the largest

ever cash increase in the national living wage, worth up to £1800 for a full—time worker and since the national living wage has been introduced, the proportion of people on low pay defined as earning less than two thirds of national median hourly income has halved, but of the new rate of £11 44 per hour, delivered our manifesto commitment to eliminate low pay altogether. that means that by next year, someone working full—time in the national living wage will see the real take—home after—tax pay go up, not by 25%, but by 30% compared to 2010 and that is the difference. the party opposite try to reduce poverty by tinkering with benefits and tax credits, they wanted to move people from just below the poverty line to just above it, but conservatives know the best way to tackle poverty

is through work. by reforming the welfare system, reducing workless households and tackling low pay, we have helped to lift 1.7 million people out of absolute poverty since 2010 because a central part of our plan for growth is to make work pay. and so to the final supply—side measure in today puzzling autumn statement for growth. because of the difficult decisions we have taken in the last year, today's forecast shows that borrowing will be lower than forecast in the spring. that was a proportion of gdp that will be lower than forecast in the spring. inflation will continue to fall on our fiscal headroom has doubled. i said i would cut taxes when we could, but only responsibly and only in a way that did not fuel inflation. the 0b

in a way that did not fuel inflation. the obi in a way that did not fuel inflation. the 0b i confirmed i can deliver a package which does that. businesses, i have deliver the biggest businesses tax cut in modern history with a can most competitive investment allowances of any large economy. forthe investment allowances of any large economy. for the self—employed, investment allowances of any large economy. forthe self—employed, i have simplified their taxes by abolishing the class to charge and cutting class four national insurance but a high employment taxes and 27 million people working in the public and private sectors also this incentivises the hard work we should be encouraging. 0n also this incentivises the hard work we should be encouraging. on top of income tax at 20%, they pay 12% national insurance and earnings between 12,570 and 50,270 and that is of 32% marginal tax rate. if we want people to get up early in the morning, if we want them to work nights and want an economy where people go the extra mile and work hard, then we need to recognise that

their hard work benefits us all, so today i am going to cut the main 12% rate of employee national insurance. if i could buy one percentage point to 11%, that would be an extra £225 in the pockets of the average worker every year. but instead, i'm going to go further and cut the main rate of employee national insurance by two percentage points from 12% to 10%. that change will help 27 million people. it means somebody in the average salary of £35,000 will save over £450. for the average nurse is a saving of £520 and for the typical police officer and saving of £630 every single year. i would normally bring in a measure like this from the start of the new tax year in april and instead

tomorrow i'm introducing urgent legislation to bring it in from january the 6th so people can see the benefit in their payslips at the start of the new year. the 0b are say reducing attacks on work means more people in work and they say the's measures will lead to the equivalent of 94,000 full—time employees in our economy because lower tax means higher growth and thatis lower tax means higher growth and that is the difference between this side and that one. in 13 years, labour raised taxes in every single budget, but conservatives cut taxes when we responsibly can. and today we do just that. we cut taxes to help bigger businesses invest, we

cut taxes to help small businesses grow, we cut taxes for the self—employed to give a country running and from january we cut taxes for 27 million working people whose hard work drives our economy forward. mr speaker, the best universities, the clever scientists and the smartest entrepreneurs have given us your�*s most innovative economy, but we can be the most prosperous as well. in the face of global challenges we have halved inflation, reduced our debt and growing our economy. as a country we are sticking to a plan is working on this autumn statement for growth will attract £20 billion of additional business investment per yearin additional business investment per year in the next decade. it will bring tens of thousands of people into work and support our fastest growing industries in a package which leaves borrowing lower, debts lower and keeps inflation falling. we are delivering the biggest business tax cut in modern british

history, the largest ever cut to employee and self—employed national insurance and the biggest package of tax cuts to be implemented since the 19805. tax cuts to be implemented since the 1980s. an autumn statement for a country that has turned a con two corner in a statement for growth would i commend to the house. —— that has turned a corner... i would i commend to the house. -- that has turned a corner. . .- that has turned a corner. .. i now call the shadow _ that has turned a corner. .. i now call the shadow chancellor - that has turned a corner. .. i now call the shadow chancellor of. that has turned a corner. .. i now| call the shadow chancellor of the exchequer, rachel reeves. thank you, mr speaker- — exchequer, rachel reeves. thank you, mr speaker- the _ exchequer, rachel reeves. thank you, mr speaker. the chancellor _ exchequer, rachel reeves. thank you, mr speaker. the chancellor has - mr speaker. the chancellor has lifted the lid on 13 years of economic failure. we were told that this was to be an autumn statement for growth but the economy is now forecast to be £40 billion smaller by 2027 than the chancellor said backin by 2027 than the chancellor said back in march. growth revised down, next year, then you're actively back year after and a year after that as

well. the chancellor claims the economy has turned the corner, yet the truth is that under the conservatives, growth has hit a dead end. what has been laid bare today is the full scale of the damage that this government has done to our economy over 13 years. and nothing that has been announced today will remotely compensate. mortgages are rising, taxes eating into wages, inflation high with prices are still going up in the shops, public services on their knees and too many families are struggling to make ends meet. as the sun begins to set in this divided out of touch weak governments, the only conclusion that the british people will reach is this— after 13 years of conservative, the economy is simply not working and despite after all

the promises of today, working people are still worse off. mr speaker, the centrepiece of today's autumn statement is the cuts in the headline rates of national insurance. mr speaker, iam headline rates of national insurance. mr speaker, i am old enough to remember when the prime minister wanted to put up national insurance. that was as recently as january last year and he said, "we must go ahead with the increase in health and care levy. it's progressive in that the burden falls most and those who can afford it." utter nonsense. it was a tax on working people and we are it for that very reason. yet again the prime minister is left arguing against himself. in response to last a's autumn statement, i was warned that it was pickpocketing working people through

stealth taxes. i've long argued that taxes on working people are too high and i said in my conference speech that i would like them to be lower. from their failure to lift income tax and forcing councils to raise income taxed, the conservatives have pushed their failure onto others. the british people won't be taken for fools. the british people won't be taken forfools. they the british people won't be taken for fools. they know from what has been announced today the cynicism of a party desperate to cling onto power than the real priorities of the low tax conservative government. so we can forgive tax—payers for not celebrating when they see the truth behind today's announcements. going to the statement, the government had already put in place tax increases worth the equivalent of a 10p increase in national insurance. so today's to peek cut will not compensate for the tax increase put

in place by the conservative government. the fact is, taxes will be higher at the next election than they were at the last. this is the legacy of the conservatives and that is their record. mr speaker, the chancellor and prime minister have spent the last two weeks marching their mps up a hill only to march them down again on inheritance tax. let's not forget when they've remember they have money to spend. either go get yourself a cup of tea or be _ either go get yourself a cup of tea or be quite. either go get yourself a cup of tea or be quite-— either go get yourself a cup of tea or be uuite. ~ , ., , , or be quite. when they realise they have money — or be quite. when they realise they have money to _ or be quite. when they realise they have money to spend, _ or be quite. when they realise they have money to spend, the - or be quite. when they realise they have money to spend, the first - have money to spend, the first instinct was a tax cut for millionaires. but in the end, even they realised they could not get away with it in the middle of the cost of living crisis. can the chancellor told the house today, is cutting inheritance tax a decision delayed or abandoned? this autumn

statement for growth is now the 11th conservative economic growth plan from the fifth prime minister, the seventh chancellor and ninth business secretary. and what do those numbers add up to? according to the most recent gdp data, a big fat zero. that is zero growth in the most recent data in this year. the chancellor mentioned some countries we are performing in growth but he failed to mention the advanced economies that have grown faster than the uk. 0ver economies that have grown faster than the uk. over the last 13 years of the slow growth conservative government, the uk lands in their bottom third when it comes to growth. there were 27 0ecd companies do make countries that have grown faster than us since 2010, and in

fact over the next two years, no fewer than 177 economies are forecast by the imf to grow faster. it doesn't bother me, mr speaker. it bothers me. i expect the same courtesies. those who wish to not .ive courtesies. those who wish to not give that — courtesies. those who wish to not give that courtesy, please go find something else to do because my constituents are interested even if yours _ constituents are interested even if yours aren't. constituents are interested even if yours aren't-— yours aren't. next year, we are forecast to — yours aren't. next year, we are forecast to be _ yours aren't. next year, we are forecast to be the _ yours aren't. next year, we are forecast to be the slowest - yours aren't. next year, we are i forecast to be the slowest growing economy in the whole of the g7. when it comes to economic growth, under the tories, we are more wild following the end of world beating. and let's look at the record on growth comparing that to labour government. gdp growth has averaged 1.5% per year. with labour, it grew

an average of 2% a year. that was in 13 years. had the economy continued to grow at the rate it did with labour? it would now be... lower growth and higher borrowing with debts of more than doubling. now at almost 100% of gdp. this is a product of their failures over 13 years, a tory government that has failed on growth, debt, levelling up and cost of living to. and they expect the british people to believe that when they say they are going to turnit that when they say they are going to turn it all around, when it is them thatis turn it all around, when it is them that is the problem and not the solution. mr speaker, if we are going to grow the economy, we must get more people into work. let me be clear, people who can work should work. that is why we have long

argued that the capability assessment needs work. right now it is discouraging people from seeking work. but there is a wider problem that yet again this government is failing to face up to. britain is the only country in the g7 where the employment rate still has not returned to pre—pandemic levels. with the increase in the number of people out of the workforce due to long—term health issues costing the tax—payer a staggering £15.7 billion a year. nhs waiting lists have swelled to 7.8 million, an additional half a million since the prime minister said he would cut them. and 2.6 million people are out of work due to long—term sickness. a healthy nation is critical to a healthy nation is critical to a healthy economy. that is why labour has pledged to cut hospital waiting lists, investing an additional £1.1

billion a year to deliver 2 million more appointments, scans and operations. it will be funded by abolishing the non—dance hack status and replacing it with a scheme for people when... 0nce and replacing it with a scheme for people when... once again, we see this policy has been vetoed by the prime minister. mr speaker, the best way to get people back to work is to get to our nhs working but the reality is, you can never trust the tories with our nhs. the chancellor has made a great fanfare about public sector efficiency and value for money. this is from a government that has blown £140 million on a discredited miranda scheme and is not able to send a single celibacy, —— and a

£8.7 billion on ppe that has been written off, hs2 costing £7 billion with not a single piece of track going north of birmingham. no one can trust the tories with taxpayers' money. and it says it all that after 13 years of tory government, there are still nearly 12,000 nhs computers running on outdated software that is vulnerable to cyber attacks. ten years ago, when he was health secretary, the now chancellor promised a paperless nhs by 2018. yet today, in 2023, 26 nhs trusts are still using a fax machine. why on earth should people experience deteriorating services under this conservative government trust them to fix it. his six years as health secretary makes it one of the

biggest architects of failure. if you put your hands into people's pockets and take money out of them and they don't see visible improvements in the services they receive, they get very angry indeed. not my words, the chancellorwords. and i agree with him. they had 13 years to improve public services and they have failed. this is too little, too late. i want to welcome the chancellor's nelson today to tackle anti—semitism to keep our community safe as well as the additional money for the holocaust educational trust. there is no place for hate in our society and i know a cross as we work together to eliminate it. mr speaker, the chancellor calls this an autumn statement for growth. but it's labour who has led the agenda on

growth. and today, we see the conservatives have released their own poor cover version of what we have already announced. the chancellor today is talking about unlocking capital by reforming pensions. the labour would go further. encouraging investment into british start—up firms and scale up firms and introducing measures to ensure the consolidation of pension funds. so our pension systems get better returns for savers and the uk economy. 0n planning, the conservatives are following labour's leader in providing many of the bills for infrastructure and planning decisions. what has taken them so long? labour will get britain building again with a once in a generation set of reforms to accelerate the building of our country's national infrastructure and build housing too. we will fast track 5g technology to grow our

economy and provide good jobs in every part of our country. we welcome the fact that the chancellor has announced that he will make full expensing permanence. that's another thing we have been calling for. but that doesn't make up for the years of uncertainty that businesses have faced where tax is going up and down like a yo—yo. small and medium businesses play such a pivotal role in growing our economy, left exposed to the economic volatility. labour will get the economy firing on all cylinders which is why this week we have established a new british infrastructure counsel with key investors in the uk economy focused on unlocking private investment by addressing the delivery challenges businesses face when investing in britain. through labour's new national wealth fund, we work alongside the private sector to back the growth of british industries so we can make the crucial transition

to a zero carbon economy. and every £1 of public investment, we will average in three times as much private investment while also getting a return to tax—payers. labour will boost the economy, get debt falling and make working people better off. if you listen to the benches opposite, he would believe the cost of living crisis was behind us. but inflation is still double the bank of england's target rate. i know the importance of low and stable inflation from my time as an economist at the bank of england. it is of course welcome that the chancellor has accepted this year's recommendations from the low pay commission that we set up on the minimum wage. the reality is, the conservatives record, average wages for working people have been held back. average weekly root wages have increased byjust 3% in 13 years.

compared to a 27% increase under the last labour government. worth an additional £120 for every week for someone going out to work every day. and today's equal pay day so it's also important to recognise that the living standards of working women have also been held back by a gender pay gap that i am determined to close. the chancellor and prime minister say the cost of living crisis is dealt with. everything might look a bit better, 10,000 feet up might look a bit better, 10,000 feet up in your helicopter. but down here, on planet earth, people are approaching christmas and the year ahead with worry and trepidation. the cost of living crisis has hit is harder because tory mismanagement has left us so exposed. 11 million uk households don't have enough savings to cover three weeks of

living expenses if they needed it. working families have been skating on thin ice for too long and is there resilience eroding and so has our national economy's. let's not forget it was this government that oversaw the closure of our critical gas storage facilities which left our country more exposed to the huge fluctuations in international energy markets. the former prime minister, for prime ministers ago, cuts energy efficiency programmes leading to higher bills for homeowners. and last year, we saw the true cost of the conservatives when they kamikaze budget crash the economy, leading to market turmoil and a spike in interest rates. 1.6 million families will see their mortgage deals and this year. those remortgaging since july have seen their payments rocket by an average of £220 a month. next

year, one .5 million families will face a similarfate. year, one .5 million families will face a similar fate. the economic recklessness inflicted a tory mortgage penalty across the country. families with a mortgage will be expected to find an additional £190 every single month. in north yorkshire, homeowners face £200 more a month on their mortgage and in the chancellor's own constituency but maybe not for long, families with a mortgage will see an average increase of £420 a month because of this conservative government's economic failure. and with increase costs for landlords, i know the chancellor knows about that, meant a higher price too. the truth is, working people don't have the sort of money lying around. but this is what we have come to after 13 years

of conservative government. and this is the record upon which people will judge the conservatives at the next election. this tory economic recklessness is not a thing of the past. the british people are still paying the price. and we say never again. last week, labour put forward an amendment to the kings beach to put a fiscal look into law. it would prevent a repeat of last year's economic horror show and yet the tories voted against it. it is clear that today, labour is the party of economic and fiscal responsibility. and what have the conservatives learned? they have learned absolutely nothing. the country is crying out for change. a decaying government can change in personnel but they have failed to change the direction of our country. in 13

years, we have had seven chancellors who wouldn't run a business like this. you can't run a country like it either. and he can't promise that this chancellor will be in place at the next election. we have all heard the next election. we have all heard the reports. when i first came together it was a fairy tale marriage. 0ne together it was a fairy tale marriage. one year on, the relationship has hit the rocks. the pair have grown apart, rumours running rife that the premise already has his eyes on someone else. that whoever this prime minister picks as the chancellor, the truth is this. britain is and will be worse off under the conservatives. they have held back growth, crashed our economy, increased debt, trashed our public services, left businesses out in the cold and made life harderfor working people. our country cannot afford five more years of the conservatives. the ravens are

leaving the tower when even saatchi and saatchi are saying to result working. the questions people will be asking at the next election and after today's autumn statement are simple. to me and my family feel better off after 13 years of conservative government? de our schools, hospitals, police, do they work better after 13 years of conservative government? in fact, does anything in britain work better today than when the conservatives came into office 13 years ago? we all know that's working people are worse off under the conservatives. growth is down, mortgages are up, prices are up, taxes are up, debts are up and their time is up. it is time for change, a changed labour party to lead britain and make working people better off.

chancellor of the exchequer. mr chancellor of the exchequer. speaker. rachel reeves, there shall chancellor has sat down after delivering her response tojeremy hunt who is now responding to her. before that, in an hour—long speech, he outlined big changes and said to business and of course as expected, those cuts to national insurance. the surprise if you like is he cut national insurance by more than we had thought. he said a turning point in them that allowed him to actually introduces tax cuts and they are coming in injanuary, some of them. not april as expected. national insurance, there is a cut of 2% from the 12% main employee national insurance rate whichjeremy hunt

says will help 27 million people and save those on an average income of £35,000 a year about £450. he said, i can deliver that tax cut responsibly and without fuelling inflation because the office for budget responsibility has said so. he then went on to the cuts from national insurance for self employed class two, national insurance flat rate, it has been abolished. that will save a certain amount of money combined with what they call a class for national insurance rate saving £350 a year for about 2 million self—employed. this was announced against a backdrop of figures on growth which were significantly down —— downgraded. but the government

was going for growth, he says, by doing what he terms as supply—side reforms including all sorts of measures to boost business. the obr, he says, will contribute £20 billion a year in business investment. i'm happy to say we have a treasury minister here with us to discuss all that. welcome to you. about £10 billion worth of tax cuts which i have broadly outlined. do you accept overall you are still raising taxes? thank you for having me on your show. i think today was composed of three major components. the first was to reward work by cutting national insurance contributions for both employees and self—employed. we are also making sure that work pays by raising the national living wage to £11 44. that is the largest rise

in national living wage. we are boosting investment as you say by £20 billion, which is the key aspect to getting growth motoring in this country. and we are supporting the vulnerable by upgrading pensions and earnings and benefits. but vulnerable by upgrading pensions and earnings and benefits.— earnings and benefits. but will overall you _ earnings and benefits. but will overall you be _ earnings and benefits. but will overall you be raising - earnings and benefits. but will overall you be raising taxes? l earnings and benefits. but will l overall you be raising taxes? we have overall you be raising taxes? - have brought 3 million people out of paying any tax at all since 2010. but the answer is yes, isn't it? we fed so since _ but the answer is yes, isn't it? - fed so since a pandemic is make difficult decisions. we've cut significant taxes today and would like to go further in the future but we still have to make sure we are managing... we still have to make sure we are managing- - -_ we still have to make sure we are managing... fik. inflation is still managing... 0k. inflation is still down managing... ok. inflation is still down significantly but too high and we want to ensure we keep it down our debt. ibis we want to ensure we keep it down our debt. �* , we want to ensure we keep it down our debt. . , �*, we want to ensure we keep it down ourdebt. a 2 , ., we want to ensure we keep it down ourdebt. a 2, ., our debt. as i said, let's show you this graph- — our debt. as i said, let's show you this graph. this _ our debt. as i said, let's show you this graph. this is _ our debt. as i said, let's show you this graph. this is from _ our debt. as i said, let's show you this graph. this is from the - our debt. as i said, let's show you this graph. this is from the office | this graph. this is from the office for budget responsibility and you

can see here, the lines for the end, is a bit complicated but you can see the trajectory is still up when you look at taxes as a share of gdp. they are going up. and they are going up significantly. the institute for fiscal studies has said in total you've raised taxes overall by £100 billion a year and thatis overall by £100 billion a year and that isjust since overall by £100 billion a year and that is just since the last election. you have announced something in the region of £10 billion of tax cuts. but in the end, it is a drop in the ocean. iii billion of tax cuts. but in the end, it is a drop in the ocean.— it is a drop in the ocean. if you look at where _ it is a drop in the ocean. if you look at where we _ it is a drop in the ocean. if you look at where we are - it is a drop in the ocean. if you look at where we are cutting . it is a drop in the ocean. if you i look at where we are cutting tax, it is a drop in the ocean. if you - look at where we are cutting tax, we are rewarding work and stimulator growth. if you actually look at what we're trying to achieve with this budget, we are trying to achieve strong economic growth over a sustained long period of time. another say, we reward work by cutting national insurance contributions. also, able to make sure workplace. if you look at where

we are cutting tax, you can understand our approach and strategy for the british people. but understand our approach and strategy for the british people.— for the british people. but you have increased taxes. _ for the british people. but you have increased taxes. you _ for the british people. but you have increased taxes. you aren't - for the british people. but you have increased taxes. you aren't the - increased taxes. you aren't the party of low taxation. you are the party of low taxation. you are the party of low taxation. you are the party of high taxation and we have seen it right across parliament. it would be good to hear a minister in the treasury say you are right. well, we accept on the back of two global shocks in this parliament, covid, which are provided support for and energy support, we believe in paying back our debt. we make no apology and that requires raising revenue and making difficult decisions on spending. that is why you are seeing debt come—down. i5 you are seeing debt come—down. is how can you afford these tax cuts? 0ne how can you afford these tax cuts? one is we made an agreement to halve

inflation... . , ., , ., inflation... prices are still going u . inflation... prices are still going on though- _ inflation... prices are still going up though. this _ inflation... prices are still going up though. this is _ inflation... prices are still going up though. this is why - inflation... prices are still going up though. this is why we - inflation... prices are still going up though. this is why we still l up though. this is why we still can't no up though. this is why we still can't go as _ up though. this is why we still can't go as low— up though. this is why we still can't go as low as _ up though. this is why we still can't go as low as you - up though. this is why we still can't go as low as you want. up though. this is why we still| can't go as low as you want to. up though. this is why we still - can't go as low as you want to. 4.696 can't go as low as you want to. 4.6% as half of what it was but not at our target of 2%. we completely accept that. the second reason is we need to ensure we are paying down our debt. we continue to make difficult decisions. that will continue because we manage our finances responsibly. what we won't do is make massive commitments like the labour party wanting to add £28 billion to our debt for green initiatives. we won't do that. we will cut taxes to grow the economy, reward work and keep focusing on getting inflation down. this package will not be inflationary. it's for growth. will not be inflationary. it's for urowth. ., ., , ., . growth. you mentioned debt. how much is the government _ growth. you mentioned debt. how much is the government currently _ growth. you mentioned debt. how much is the government currently spending i is the government currently spending on debt interest payments? tao

is the government currently spending on debt interest payments? too much. £97 billion. when — on debt interest payments? too much. £97 billion. when your _ on debt interest payments? too much. £97 billion. when your government - £97 billion. when your government came to power back in 20 ten, the bill wasjust 40. just £40 came to power back in 20 ten, the bill was just 40. just £40 billion in 2010. now it is 97 billion. so it soared under the conservatives. it is way too high but it is because we stepped in with significant support during covid. £400 million. that allowed us to grow quicker than g7 countries because we put in place... so how can you afford tax cuts? brute so how can you afford tax cuts? we have so how can you afford tax cuts? - have headroom, £30 billion. but that is low by historical standards. we've decided to use some money we have available to us to stimulate, not spending all of it, to stimulate economic growth to reward work. who; economic growth to reward work. why didn't ou economic growth to reward work. why didn't you pay down the deficit

then? ~ . ., ., didn't you pay down the deficit then? ~ _, ., ., ,, didn't you pay down the deficit then? ~ ., .«r , . then? we continue to make difficult decisions. then? we continue to make difficult decisions- we _ then? we continue to make difficult decisions. we would _ then? we continue to make difficult decisions. we would like _ then? we continue to make difficult decisions. we would like to - then? we continue to make difficult decisions. we would like to go - decisions. we would like to go further on tax cuts but we continue to have a balanced approach. that is coming down significantly. foot well. coming down significantly. foot well- thus _ coming down significantly. foot well- thus a — coming down significantly. foot well. thus a significant - coming down significantly. foot well. thus a significant drop - coming down significantly. foot well. thus a significant drop in l well. thus a significant drop in debt. well. thus a significant drop in debt- that _ well. thus a significant drop in debt. that question _ well. thus a significant drop in debt. that question about - well. thus a significant drop in - debt. that question about headroom, “ust to debt. that question about headroom, just to exolain — debt. that question about headroom, just to exolain to _ debt. that question about headroom, just to explain to our— debt. that question about headroom, just to explain to our viewers, - debt. that question about headroom, just to explain to our viewers, the - just to explain to our viewers, the documents — just to explain to our viewers, the documents in the context of the event, — documents in the context of the event, on — documents in the context of the event, on that headroom figure, you quoted _ event, on that headroom figure, you quoted £13 _ event, on that headroom figure, you quoted £13 billion. they say that number— quoted £13 billion. they say that number incorporates the extra revenue — number incorporates the extra revenue anticipated from increasing fuel duty— revenue anticipated from increasing fuel duty rates which you tend to freeze _ fuel duty rates which you tend to freeze. that suggests it's an illusionary number.- freeze. that suggests it's an illusionary number. freeze. that suggests it's an illusiona number. ., ., ., illusionary number. you have to take that with the — illusionary number. you have to take that with the obr, _ illusionary number. you have to take that with the obr, they _ illusionary number. you have to take that with the obr, they are - that with the obr, they are independent. we are working off the obr forecasts scoring.—

obr forecasts scoring. you're either u e obr forecasts scoring. you're either u- to obr forecasts scoring. you're either on to decreasing _ obr forecasts scoring. you're either up to decreasing inflation _ obr forecasts scoring. you're either up to decreasing inflation or - obr forecasts scoring. you're either up to decreasing inflation or you - up to decreasing inflation or you are not. if you have a number you are, if you haven't you're not. what are, if you haven't you're not. what we have done _ are, if you haven't you're not. what we have done is _ are, if you haven't you're not. what we have done is cut _ are, if you haven't you're not. what we have done is cut taxes - are, if you haven't you're not. what we have done is cut taxes for - we have done is cut taxes for working people with a national insurance cut. we continue to focus on growing the economy by stimulating business investment. but before i come to you, in the end it's about how people feel. all they feel better off? this is the obr in a tweet... the fall is less but still the largest reduction in living standards since records began. are you proud of that?— standards since records began. are you proud of that? people have gone throu~h a you proud of that? people have gone through a difficult _

you proud of that? people have gone through a difficult time _ you proud of that? people have gone through a difficult time with - you proud of that? people have gone through a difficult time with high - through a difficult time with high inflation. we have stepped in as i said, with significant support. this statement steps in with a pay rise for millions of people, 3 million people. we upgraded the housing allowance and benefits and pensioners are seeing pensions rise by 8.5%. pensioners are seeing pensions rise b 8.5%. pensioners are seeing pensions rise b 8.596. , pensioners are seeing pensions rise b 8.596. y , by 8.596. foot they will be welcomed. you want to — by 8.596. foot they will be welcomed. you want to balance _ by 8.596. foot they will be welcomed. you want to balance is _ you recognise that next year growth is lower than forecasted march... the obr have made clear the package today has no impact on inflation. we have always been consistent... we would not cut taxes.

for the first time, the obr has reassessed the income tax threshold level. originally, when rishi sunak introduced that, it was going to raise several billion pounds. now, having expanded, extended and hit a soupy high inflation, it will raise £44.6 billion. —— super high inflation. so this is not a tax cut. you have taken the taxes, via thresholds, in a stealthy way that people don't notice as much. and then you have given a little bit backin then you have given a little bit back in the form of national insurance, and you want credit for that? ., . ., that? you referenced that the freezin: that? you referenced that the freezing of — that? you referenced that the freezing of thresholds, - that? you referenced that the freezing of thresholds, that l that? you referenced that the l freezing of thresholds, that was that? you referenced that the - freezing of thresholds, that was in 2021 come on the back of a pandemic, where we spent billions of pounds supporting families and businesses. we need to take that get down and take difficult decisions. we would like to go further. what we are doing is focusing on national insurance and traditions, which focuses on work. we want to reward

work. income tax includes lots of different types of income such as dividends and others. we are focusing on national insurance contributing is for employees because that absolutely focuses on rewarding... because that absolutely focuses on rewarding- - -_ because that absolutely focuses on rewarding- - -— because that absolutely focuses on rewardinu... , ., �* . rewarding... why wouldn't increasing the threshold — rewarding... why wouldn't increasing the threshold is _ rewarding... why wouldn't increasing the threshold is reward _ rewarding... why wouldn't increasing the threshold is reward work? - rewarding... why wouldn't increasing the threshold is reward work? so - the threshold is reward work? so many people have been dragged into a higher tax band, where they are paying more tax on their income. why wouldn't that reward work? it would reverse the freezing of tax thresholds, which has brought in so much money because of inflation? because that includes notjust earnings from work, it can include earnings from work, it can include earnings from work, it can include earnings from david evans and other areas of income, what we want to do with the packages reward specifically work. —— david evans. 95% of it is income from work. it 95% of it is income from work. focuses on 95% of it is income from work. it focuses on those in work, not income, from other means of income.

if you had raised thresholds anywhere in line with inflation, people — anywhere in line with inflation, people would be talking about a genuine — people would be talking about a genuine tax cut. this looks entirely cosmetic, — genuine tax cut. this looks entirely cosmetic, as— genuine tax cut. this looks entirely cosmetic, as a token. it is £45 billion— cosmetic, as a token. it is £45 billion per— cosmetic, as a token. it is £45 billion per year extra in tax by the end of— billion per year extra in tax by the end of the — billion per year extra in tax by the end of the period. that billion per year extra in tax by the end of the period.— end of the period. that is not something — end of the period. that is not something i— end of the period. that is not something i accept, - end of the period. that is not something i accept, i- end of the period. that is not something i accept, i think. end of the period. that is not something i accept, i think it| end of the period. that is not i something i accept, i think it is end of the period. that is not. something i accept, i think it is a significant tax cut for those in work, with the self—employed, we are cutting it. work, with the self-employed, we are cuttin: it. ., work, with the self-employed, we are cuttin: it. . , . cutting it. looking at the office for budget _ cutting it. looking at the office for budget responsibility - cutting it. looking at the office - for budget responsibility documents, saying _ for budget responsibility documents, saying that _ for budget responsibility documents, saying that the — for budget responsibility documents, saying that the tax _ for budget responsibility documents, saying that the tax changes _ for budget responsibility documents, saying that the tax changes in - for budget responsibility documents, saying that the tax changes in the - saying that the tax changes in the autumn _ saying that the tax changes in the autumn statement _ saying that the tax changes in the autumn statement reduce - saying that the tax changes in the autumn statement reduce the - saying that the tax changes in the| autumn statement reduce the tax burden— autumn statement reduce the tax burden by— autumn statement reduce the tax burden by 07%— autumn statement reduce the tax burden by 0.7% of— autumn statement reduce the tax burden by 0.7% of gdp, _ autumn statement reduce the tax burden by 0.7% of gdp, but - autumn statement reduce the tax burden by 0.7% of gdp, but it- autumn statement reduce the tax| burden by 0.7% of gdp, but it still rises _ burden by 0.7% of gdp, but it still rises every— burden by 0.7% of gdp, but it still rises every year. _ burden by 0.7% of gdp, but it still rises every year, to _ burden by 0.7% of gdp, but it still rises every year, to a _ burden by 0.7% of gdp, but it still rises every year, to a post—war - burden by 0.7% of gdp, but it still. rises every year, to a post—war high of 37%~ _ rises every year, to a post-war high of 3796. ., ., , �* . ., of 3796. that figure doesn't change. b 28-29, of 3796. that figure doesn't change. by 28-29. the _ of 3796. that figure doesn't change. by 28-29, the frozen _ of 3796. that figure doesn't change. by 28-29, the frozen thresholds . of 3796. that figure doesn't change. j by 28-29, the frozen thresholds we by 28—29, the frozen thresholds we are talking — by 28—29, the frozen thresholds we are talking about _ by 28—29, the frozen thresholds we are talking about at _ by 28—29, the frozen thresholds we are talking about at the _ by 28—29, the frozen thresholds we are talking about at the moment, . by 28—29, the frozen thresholds we i are talking about at the moment, the concept _ are talking about at the moment, the concept of— are talking about at the moment, the concept of fiscal — are talking about at the moment, the concept of fiscal drag, _ are talking about at the moment, the concept of fiscal drag, resulted - concept of fiscal drag, resulted nearly— concept of fiscal drag, resulted nearly 4— concept of fiscal drag, resulted nearly 4 million _ concept of fiscal drag, resulted nearly 4 million additional- concept of fiscal drag, resulted . nearly 4 million additional workers paying _ nearly 4 million additional workers paying income _ nearly 4 million additional workers paying income tax. _ nearly 4 million additional workers paying income tax, 3— nearly 4 million additional workers paying income tax, 3 million- nearly 4 million additional workers i paying income tax, 3 million moving into the _ paying income tax, 3 million moving into the higher— paying income tax, 3 million moving into the higher rate, _ paying income tax, 3 million moving into the higher rate, 400,000 -

paying income tax, 3 million moving into the higher rate, 400,000 intol into the higher rate, 400,000 into the initial— into the higher rate, 400,000 into the initial rate. _ into the higher rate, 400,000 into the initial rate. you _ into the higher rate, 400,000 into the initial rate.— the initial rate. you are taking this whole _ the initial rate. you are taking this whole discussion, - the initial rate. you are taking this whole discussion, and - the initial rate. you are taking this whole discussion, and it i the initial rate. you are taking | this whole discussion, and it is focused on you picking a point in time since 2010. this focused on you picking a point in time since 2010.— focused on you picking a point in time since 2010. this is from the office for budget _ time since 2010. this is from the office for budget responsibility. | office for budget responsibility. you are — office for budget responsibility. you are reading _ office for budget responsibility. you are reading it— office for budget responsibility. you are reading it brilliantly, - office for budget responsibility. | you are reading it brilliantly, but you are picking it, you are doing very well at reading it out, but you are picking a point in time, 2021, where we made a really difficult decision to freeze the thresholds. i take another period of time, since 2010, we have brought 3 million people out of paying any tax whatsoever. in this country, thanks to this conservative government, you can earn £1000 per month because you have paid no tax. but can earn £1000 per month because you have paid no tax— have paid no tax. but with the inflation... — have paid no tax. but with the inflation... 3— have paid no tax. but with the inflation... 3 million _ have paid no tax. but with the inflation... 3 million people i have paid no tax. but with the l inflation... 3 million people are -a in: inflation... 3 million people are paying no _ inflation... 3 million people are paying no tax. _ inflation... 3 million people are paying no tax, thanks - inflation... 3 million people are paying no tax, thanks to - inflation... 3 million people are paying no tax, thanks to the . inflation... 3 million people are - paying no tax, thanks to the change. 66% of adults are taxpayers, and by the end _ 66% of adults are taxpayers, and by the end of— 66% of adults are taxpayers, and by the end of the process, it will be 66% again — the end of the process, it will be 66% again-— the end of the process, it will be 6696 aaain. u, . , ., ., . 6696 again. the conclusion from what chris has just —

6696 again. the conclusion from what chris hasjust read _ 6696 again. the conclusion from what chris hasjust read is _ 6696 again. the conclusion from what chris has just read is that _ 6696 again. the conclusion from what chris has just read is that what - 6696 again. the conclusion from what chris has just read is that what the i chris has just read is that what the obr is saying is that everything that has been spelled—out and outlined today, still there will be a record tax burden. the tax burden will be at a record high, despite everything you have announced, and i take your point about the cuts on national insurance and what that can mean, when you step back, the tax burden will still be at a record high. would you accept that? i repeat what i said earlier, people don't like to talk about this any more in the press, but we had a once in a generation... let mejust finish, because it is important, we had a once in a generation global pandemic. in that time, we stepped in with £400 billion of support. the measures that were introduced to cost a lot, and it increased our debt to a significant level, absolutely. we make no apology for supporting families and businesses that are most vulnerable through a global pandemic. that needs paying back. we believe in paying back our debt. when the global energy crisis

spiked, we stepped in and paid half of people's energy bills. i came on shows like this, and i was interviewed, saying, what are you going to do to support people? look at this graph on wholesale gas prices. we stepped in and help with bills. that cost money. we also believe in sustainable public finances, which means paying that back. that means difficult decisions on spending and difficult decisions on spending and difficult decisions on taxes. today, we are showing that we want to cut taxes, we are significantly cutting taxes, we want to go further but we are not going to go further but we are not going to do anything inflationary or which puts public finances injeopardy. all we're asking is about the political choices. you could have done other things. yes, we haven't forgotten about the pandemic or the war in ukraine, growth has been higher sincejust before war in ukraine, growth has been higher since just before the pandemic, it is all about where you take your date from in other

comparable countries than here. but if you think about the other choices, the other choices would have been perhaps you have reduce borrowing, and i thinkjeremy hunt was quoting nigel lawson, margaret thatcher's chancellor, he said over the weekend, extra borrowing always means extra taxes in the future. so you will have to raise taxes later to pay for the taxes you have cut today. to pay for the taxes you have cut toda . ., , ., today. not if we simulate significant _ today. not if we simulate significant growth - today. not if we simulate significant growth in - today. not if we simulate significant growth in the l today. not if we simulate - significant growth in the economy, business investment, unlocking business investment, unlocking business investment, unlocking business investment would boost employment, bring investment, the reforms we have made to fti, the planning reforms, all of these things, capital allowances, which all major business investment bodies asked for, their number one asked was making the permanent, we are doing all of that. just the full expensing alone, the obr forecasts that it would bring in £3 billion. in the obr book, it says it is a result— in the obr book, it says it is a result of— in the obr book, it says it is a result of making this permanent, they expect lower investment in the

shorter— they expect lower investment in the shorter term because people wanted to invest _ shorter term because people wanted to invest before it expired, so you are going — to invest before it expired, so you are going to— to invest before it expired, so you are going to see lower investment in the next _ are going to see lower investment in the next two years. they admit it will be _ the next two years. they admit it will be higher than last year's. they— will be higher than last year's. they question whether it works or not. they question whether it works or not they— they question whether it works or not. they say of the £109 they question whether it works or not. they say of the £10.9 billion cost of— not. they say of the £10.9 billion cost of the — not. they say of the £10.9 billion cost of the tax cut in 2028—29, 9.2 billion— cost of the tax cut in 2028—29, 9.2 billion derives from the static costing. _ billion derives from the static costing, this is investment that would — costing, this is investment that would have happened anyway, and only 1.8 would have happened anyway, and only 18 billion— would have happened anyway, and only 18 billion of— would have happened anyway, and only 1.8 billion of the cost is because of extra — 1.8 billion of the cost is because of extra investment that this very measure — of extra investment that this very measure has stimulated. in a way, the 0br— measure has stimulated. in a way, the obr is— measure has stimulated. in a way, the obr is saying it is a very expensive policy, and it is questionable whether it works or not. questionable whether it works or not they— questionable whether it works or not. they have put it under the highly— not. they have put it under the highly uncertain category of tax cuts _ highly uncertain category of tax cuts you — highly uncertain category of tax cuts. you are putting a lot of weight — cuts. you are putting a lot of weight on— cuts. you are putting a lot of weight on this? it cuts. you are putting a lot of weight on this?— cuts. you are putting a lot of weiaht on this? , . , , weight on this? it is what industry has asked for, _ weight on this? it is what industry has asked for, by _ weight on this? it is what industry has asked for, by a _ weight on this? it is what industry i has asked for, by a disproportionate amount. we know that it will stimulate increased investment, forecasts and forecasts, but we know it is part of a broader package, 120 different measures. it is a

significant part of the tax of, and by the way we are also freezing business rates for small business as well. we are looking to boost investment through tax measures, but also nontax measures such as the planning, grids, energy companies that want to come here and connect to the grid. we are making that a lot easier. fin to the grid. we are making that a lot easier. . . .. lot easier. on the planning think i think you're _ lot easier. on the planning think i think you're saying _ lot easier. on the planning think i think you're saying you're - lot easier. on the planning think i think you're saying you're going i lot easier. on the planning think i | think you're saying you're going to .ive think you're saying you're going to give £10,000 over ten years to people _ give £10,000 over ten years to people affected by energy infrastructure, which is very close to them, — infrastructure, which is very close to them, and you think you can cut the planning — to them, and you think you can cut the planning time for some of the offshore _ the planning time for some of the offshore wind, for example, from 15, down _ offshore wind, for example, from 15, down to— offshore wind, for example, from 15, down to seven years, as purdie nick wins a _ down to seven years, as purdie nick wins a report. many governments, local— wins a report. many governments, local and _ wins a report. many governments, local and national, wins a report. many governments, localand national, have wins a report. many governments, local and national, have floundered on the _ local and national, have floundered on the rocks of thinking they can change _ on the rocks of thinking they can change the planning rules. do you think— change the planning rules. do you think £10,000 bribes is going to do it. , . , , , ., it. the principle behind it is that if ou are it. the principle behind it is that if you are willing _ it. the principle behind it is that if you are willing to _ it. the principle behind it is that if you are willing to host - if you are willing to host nationally significant infrastructure that will benefit the whole country, we believe you should benefit too. so the community benefit too. so the community

benefit aspect is absolutely right, in my opinion. benefit aspect is absolutely right, in my opinion-— benefit aspect is absolutely right, inm oinion. ., ., in my opinion. thank you for staying with us so long. _ in my opinion. thank you for staying with us so long. too _ in my opinion. thank you for staying with us so long. too much _ in my opinion. thank you for staying with us so long. too much more - with us so long. too much more things i want to show you. this is, if you like the visual graph of what chris was explaining earlier. tax as a percentage of gdp, we showed that before the autumn statement, the dotted line at the end, the projection is still pretty much the same. the new figure is 37.7%, the record high, from the office for budget responsibility. when we come back to the issue of choices, of course, you could have used some of what we broadly call headroom to put into public services, for example. the obr has just said into public services, for example. the obr hasjust said if into public services, for example. the obr has just said if you were to the obr hasjust said if you were to spend _ the obr hasjust said if you were to spend the _ the obr hasjust said if you were to spend the same. _ the obr hasjust said if you were to| spend the same, inflation—adjusted, on public— spend the same, inflation—adjusted, on public services, _ spend the same, inflation—adjusted, on public services, you _ spend the same, inflation—adjusted, on public services, you would - spend the same, inflation—adjusted, on public services, you would have i on public services, you would have allocated _ on public services, you would have allocated in— on public services, you would have allocated in the _ on public services, you would have allocated in the £19 _ on public services, you would have allocated in the £19 billion, - on public services, you would have allocated in the £19 billion, just. allocated in the £19 billion, just to keep — allocated in the £19 billion, just to keep the _ allocated in the £19 billion, just to keep the service _ allocated in the £19 billion, just to keep the service is— allocated in the £19 billion, just to keep the service is going, i allocated in the £19 billion, just i to keep the service is going, with the prices — to keep the service is going, with the prices going _ to keep the service is going, with the prices going up— to keep the service is going, with the prices going up so— to keep the service is going, with the prices going up so much, - to keep the service is going, with the prices going up so much, but| to keep the service is going, with. the prices going up so much, but the chancellor— the prices going up so much, but the chahcelloriust— the prices going up so much, but the chancellorjust added _ the prices going up so much, but the chancellorjust added £4 _ the prices going up so much, but the chancellorjust added £4 billion. - chancellorjust added £4 billion. that means _ chancellorjust added £4 billion. that means a _ chancellorjust added £4 billion. that means a squeeze _ chancellorjust added £4 billion. that means a squeeze on - chancellorjust added £4 billion. that means a squeeze on public| that means a squeeze on public services —

that means a squeeze on public services when _ that means a squeeze on public services when many _ that means a squeeze on public services when many viewers - that means a squeeze on public| services when many viewers will that means a squeeze on public. services when many viewers will be saying. _ services when many viewers will be saying. well, — services when many viewers will be saying, well, public— services when many viewers will be saying, well, public services - services when many viewers will be saying, well, public services don't i saying, well, public services don't seem _ saying, well, public services don't seem to _ saying, well, public services don't seem to be — saying, well, public services don't seem to be in _ saying, well, public services don't seem to be in the _ saying, well, public services don't seem to be in the smartest- saying, well, public services don't| seem to be in the smartest nicki? saying, well, public services don't i seem to be in the smartest nicki? is seem to be in the smartest nicki? [£3 the seem to be in the smartest nicki? the chancellor pointed out, in real terms, spending on public services is going up by some £85 billion. it's an £85 billion increase in public services over the period. but we do in public services to work better as well, and that is why we've got a productivity review. sorry, jo? we've got a productivity review. sorry. jo?— we've got a productivity review. sorry. j°?_ my - we've got a productivity review. - sorry, jo?_ my response sorry, jo? no, carry on. my response is that we are — sorry, jo? no, carry on. my response is that we are seeing _ sorry, jo? no, carry on. my response is that we are seeing a _ sorry, jo? no, carry on. my response is that we are seeing a real— sorry, jo? no, carry on. my response is that we are seeing a real terms - is that we are seeing a real terms increase in public spending. we decided with the autumn statement to focus on growth, we make no apologies for that, we want to reward work unstimulated growth. thank you forjoining us. any moment, we will speak to the shadow chief secretary to the treasury, but before that, let me remind everyone of the key measures that were announced byjeremy hunt in that autumn statement. the headline, national insurance cut by 2%. not

just 1%, as we were perhaps expecting, from 12, down to ten, from january to six. the minimum wage to increase to £11 .40 4p per hour for workers aged 21 and over. that has come down to a lower age. mandatory work placements for job—seekers who have not found work after 18 months, and i think if they don't accept something that is offered to them after a further six months, they are there benefits or their case will be closed, and their benefits will be stopped. we are also going to say goodbye to chris mason, the bbc political editor, and bejoined by mason, the bbc political editor, and be joined by vicki young, the deputy political editor. the key measures here, state pension to increase by 8.5%, from april. it was one of those things that was discussed, a straw man, if you like, but in the end, the state pension is rising by the highest figure available from

september, and that is 8.5%. that will be expensive. universal credit and other benefits will be increased from april by 6.7%, and as usual, the septemberfigure is higher than october. local housing allowance rate is to increase to the 30th percentile of local market rents. that will be welcome. and all alcohol duty, many people will be raising a glass to this, all alcohol duty will be frozen until august the 1st next year, not least the hospitality industry. 75% of business rates, the discount for retail hospitality and leisure businesses, extended for another year. and then the national insurance cut for the self—employed, what is called class two traditions, they are abolished. full expensing, and it is a big tax breaks, jeremy hunt said it is the largest in history, to deduct spending on investment made permanent, and four

additional investment zones across england and wales. as expected, an awful lot of things included. new rules to encourage local authorities to fast tracked business applications, speed—up business, in some way in answer to the keir starmer conference speech about being the builders. £450 million to the local authority housing fund to deliver 2100 new homes. consultation on allowing any house to be converted into two flats and up to £10,000 off electricity bills over ten years for those living closest to a new power lines. some sort of incentive, there. so, those are so more certainly an awful lot of the key measures. let's welcome darren jones, chief secretary to the treasury. we often hear from jones, chief secretary to the treasury. we often hearfrom rachel reeves and keir starmer, they say they want taxes on working people to come down, they have and you must be delighted? incite come down, they have and you must be deliahted? . _, come down, they have and you must be deliahted? ~ _, , ., delighted? we welcome them, but a cou - le delighted? we welcome them, but a coule of delighted? we welcome them, but a couple of hundred _ delighted? we welcome them, but a couple of hundred quid _ delighted? we welcome them, but a couple of hundred quid per - delighted? we welcome them, but a couple of hundred quid per year, - couple of hundred quid per year, when on average families are paying £4000 more per year under the tories doesn't go anywhere near enough. the

reason for that is because the tories have failed to grow the economy, they've been borrowing to cover their inability to pay the bills every month for years and years, and the economy is in a bad state. jeremy hunt said today that everything was looking good, but on growth, it is projected to be 0%, inflation is projected to be higher over the coming years than it had been previously. the tax burden are still the highest it has been since the second world war. that doesn't seem pretty good to me. i

rises, the tax burden, as a percentage of gdp, which is going to be extremely high. we discussed that with gareth davies. what would you do, would you cut taxes more, if you had been delivering the autumn statement today? incite had been delivering the autumn statement today?— had been delivering the autumn statement today? we can only cut taxes when _ statement today? we can only cut taxes when we _ statement today? we can only cut taxes when we can _ statement today? we can only cut taxes when we can afford - statement today? we can only cut taxes when we can afford to - statement today? we can only cut taxes when we can afford to do . statement today? we can only cut| taxes when we can afford to do so. the fact is, the conservatives have got the economy into a position where there is very little money to play with. we need to do a couple of things which we will be talking about. i do you think they were affordable, the tax cuts? everything we hear today, we welcome, because we hear today, we welcome, because we have to have the maths checked, because they do it unfunded in the tory party. because they do it unfunded in the to -a . ., , , , tory party. never happens in the labour party? — tory party. never happens in the labour party? not— tory party. never happens in the labour party? not under- tory party. never happens in the labour party? not under keir- tory party. never happens in the - labour party? not under keir starmer and rachel reeves. _ labour party? not under keir starmer and rachel reeves. you _ labour party? not under keir starmer and rachel reeves. you are _ labour party? not under keir starmer and rachel reeves. you are only - and rachel reeves. you are only going to get a position where you can give further tax cuts if you get the economy going and improve productivity and the public sector, which tories failed to do. is productivity and the public sector, which tories failed to do.- which tories failed to do. is there “ust one which tories failed to do. is there just one tax _ which tories failed to do. is there just one tax cut _ which tories failed to do. is there just one tax cut you _ which tories failed to do. is there just one tax cut you could - which tories failed to do. is there just one tax cut you could give . which tories failed to do. is there just one tax cut you could give us| just one tax cut you could give us today that you would like to see?

the shadow chief secretary to the treasury, you are very unhappy with tax rises, there must be one tax cut you are looking at?— tax rises, there must be one tax cut you are looking at? you've asked me this before. — you are looking at? you've asked me this before. i — you are looking at? you've asked me this before, iwill— you are looking at? you've asked me this before, i will give _ you are looking at? you've asked me this before, i will give you _ you are looking at? you've asked me this before, i will give you the - this before, i will give you the same answer. it would be irresponsible at this point in time to start announcing tax cuts when we don't even have the final books before the next election, let alone seeing the books. i before the next election, let alone seeing the books.— seeing the books. i will ask you a broader question, _ seeing the books. i will ask you a broader question, i _ seeing the books. i will ask you a broader question, i would - seeing the books. i will ask you a broader question, i would hate i seeing the books. i will ask you a| broader question, i would hate to repeat myself, will the overall tax level be higher or lower under a labour government. incite level be higher or lower under a labour government.— level be higher or lower under a labour government. we want it to come down. _ labour government. we want it to come down, but _ labour government. we want it to come down, but of _ labour government. we want it to come down, but of course - labour government. we want it to come down, but of course we - labour government. we want it to come down, but of course we are| come down, but of course we are going to inherit a position, if we win the election. this going to inherit a position, if we win the election.— going to inherit a position, if we win the election. this is what it is ro'ected win the election. this is what it is projected to _ win the election. this is what it is projected to be. _ win the election. this is what it is projected to be, tax _ win the election. this is what it is projected to be, tax as _ win the election. this is what it is projected to be, tax as a - win the election. this is what it is i projected to be, tax as a percentage of gdp, will it be lower or higher than that. ,., ., than that. the point of the next election it _ than that. the point of the next election it might _ than that. the point of the next election it might be _ than that. the point of the next election it might be even - than that. the point of the next| election it might be even higher because of the next budget we have from the conservatives in march next year. that's why i can't answer on specific numbers today. who knows what they will do in the next 12 months before the election. but we do want the tax burden to come down on working people over the course of the next parliament. incite on working people over the course of the next parliament.— the next parliament. we do know a coule of the next parliament. we do know a coople of tax _ the next parliament. we do know a couple of tax rises _ the next parliament. we do know a couple of tax rises you _ the next parliament. we do know a couple of tax rises you want, - the next parliament. we do know a couple of tax rises you want, you i couple of tax rises you want, you want to scrap the non—dom status,

you want to put vat on private school fees, so they will go up? there are some loopholes we are closing, one is non—dom, if you're working here you should pay tax year. we are going to close those loopholes. put that money into the national health service and schools. private schools had a loophole where they don't have to pay vat, we will put that into the education system. the third hole was private equity bosses, where they get charged corporate gains tax, not income tax, their earnings. we will close that as well. we think those are three tax loophole changes that are worth doing. ii tax loophole changes that are worth doini. ., ., .. tax loophole changes that are worth doini, f~ ' doing. if we look the 28-29 figure, we don't know _ doing. if we look the 28-29 figure, we don't know when _ doing. if we look the 28-29 figure, we don't know when the _ doing. if we look the 28-29 figure, we don't know when the election i doing. if we look the 28-29 figure, j we don't know when the election is going to be, but will the tax burden be higher or lower? would you like it to be lower by 28—29? be higher or lower? would you like it to be lower by 28-29?_ it to be lower by 28-29? you're askin: it to be lower by 28-29? you're asking the _ it to be lower by 28-29? you're asking the same _ it to be lower by 28-29? you're asking the same question - it to be lower by 28-29? you're asking the same question in - it to be lower by 28-29? you're asking the same question in a i asking the same question in a slightly different way, my answer is the same. ., ., ., ., .,

the same. you want them to go down, so why can't — the same. you want them to go down, so why can't you _ the same. you want them to go down, so why can't you commit _ the same. you want them to go down, so why can't you commit to _ the same. you want them to go down, so why can't you commit to them - so why can't you commit to them being lower? d0 so why can't you commit to them being lower?— so why can't you commit to them bein: lower? , ., ,, ., ., being lower? do you know what the weather is going — being lower? do you know what the weather is going to _ being lower? do you know what the weather is going to be _ being lower? do you know what the weather is going to be in _ being lower? do you know what the weather is going to be in 2028? - being lower? do you know what the weather is going to be in 2028? we have forecasts. and _ weather is going to be in 2028? we have forecasts. and forecasts - weather is going to be in 2028? we have forecasts. and forecasts are i have forecasts. and forecasts are often wrong. _ have forecasts. and forecasts are often wrong, which _ have forecasts. and forecasts are often wrong, which is _ have forecasts. and forecasts are often wrong, which is why - have forecasts. and forecasts are often wrong, which is why you . have forecasts. and forecasts are i often wrong, which is why you have to carry your umbrella with you. before i open it up, let's look at it through the other end of the lens. we have talked about, as you say, tax rises, you want the burden to be lower, but why don't you increase taxes? why not be proud of increasing taxes and putting up money into public services? because ublic money into public services? because public services _ money into public services? because public services are _ money into public services? because public services are on _ money into public services? because public services are on their _ money into public services? because public services are on their knees. i public services are on their knees. but they are spending quite short of money. look at the national health service, jeremy hunt said, we have increased money. in cash terms, they have, but they are getting through fewer patients. so there is a huge question about how we spend taxpayer money more effectively, modernising and reforming public services. you can'tjust keep throwing cash at a broken system. you got to get in there and do the hard work to fix. you don't think the nhs needs more

cash? i you don't think the nhs needs more cash? .. you don't think the nhs needs more cash? ,. ,, you don't think the nhs needs more cash? ~' ,, , ., cash? i think the nhs needs reform, and wes streeting _ cash? i think the nhs needs reform, and wes streeting things _ cash? i think the nhs needs reform, and wes streeting things very - and wes streeting things very strongly about that. its, and wes streeting things very strongly about that.— and wes streeting things very strongly about that. a couple of ears aio strongly about that. a couple of years ago you — strongly about that. a couple of years ago you might _ strongly about that. a couple of years ago you might have - strongly about that. a couple of years ago you might have got i strongly about that. a couple of. years ago you might have got away with saying, let's see what the next couple _ with saying, let's see what the next couple of _ with saying, let's see what the next couple of fiscal events are, but people — couple of fiscal events are, but people will want to know your instincts — people will want to know your instincts here. you said taxes are too high, — instincts here. you said taxes are too high, which suggests they should be lower _ too high, which suggests they should be lower. you said some areas of spending — be lower. you said some areas of spending are low, so that should be higher _ spending are low, so that should be higher you — spending are low, so that should be higher. you are going to borrow more to invest _ higher. you are going to borrow more to invest. something has got to give there _ to invest. something has got to give there. what is going to give? give us a sense — there. what is going to give? give us a sense of where your priorities lie. ., , ., , us a sense of where your priorities lie. you used the words instincts, no -a lie. you used the words instincts, no party would — lie. you used the words instincts, no party would set _ lie. you used the words instincts, no party would set out, _ lie. you used the words instincts, no party would set out, this - lie. you used the words instincts, no party would set out, this far i no party would set out, this far away from a general election, when you still have a budget coming in march, the final, fully costed, economic plan.— march, the final, fully costed, economiclan. ., �* ., ., ., economic plan. gordon brown followed tory spending — economic plan. gordon brown followed tory spending plans- — economic plan. gordon brown followed tory spending plans. he _ economic plan. gordon brown followed tory spending plans. he did _ economic plan. gordon brown followed tory spending plans. he did that - tory spending plans. he did that very close to the election, not a year away. very close to the election, not a yearaway. let very close to the election, not a year away. let me tell you my

instincts. year away. let me tell you my instincts-— year away. let me tell you my instincts. ~ ., ., ., , ., instincts. we do want to see the tax burden coming _ instincts. we do want to see the tax burden coming down _ instincts. we do want to see the tax burden coming down on _ instincts. we do want to see the tax burden coming down on working i instincts. we do want to see the tax i burden coming down on working people and get the economy growing. we need to get national debt down as a percentage of the economy. egg percentage of the economy. £44 billion tax rise, _ percentage of the economy. £44 billion tax rise, unfreeze those thresholds? incite billion tax rise, unfreeze those thresholds?— billion tax rise, unfreeze those thresholds? ~ . ., thresholds? we have said that the fiscal dra: thresholds? we have said that the fiscal drag has _ thresholds? we have said that the fiscal drag has been _ thresholds? we have said that the fiscal drag has been a _ thresholds? we have said that the fiscal drag has been a huge i thresholds? we have said that the | fiscal drag has been a huge burden on working families across the country, which is why we want to reduce it. i'm not going to announce tax policy today, in advance of what i hope will be a very good first labour budget at some point in the next 18 months. i(eir labour budget at some point in the next 18 months.— next 18 months. keir starmer promised _ next 18 months. keir starmer promised to _ next 18 months. keir starmer promised to raise _ next 18 months. keir starmer promised to raise income i next 18 months. keir starmer promised to raise income tax | next 18 months. keir starmer i promised to raise income tax on high earners, or higher earners, specifically when he ran to be the leader of the labour party. he is now said he's not going to do that, but people might think, well, public services are on our knees. why not? we are not raising income tax rates. why? we are not raising income tax rates. wh ? , ., ., ., we are not raising income tax rates. wh? why? there is a lot of money going into the system. _ why? there is a lot of money going into the system. people _ why? there is a lot of money going into the system. people at - why? there is a lot of money going into the system. people at home i why? there is a lot of money going l into the system. people at home are happy to pay for a health system and schools, but they want to make sure

that money is being spent effectively. they know at the moment it is not. how we fix public services have to be at the heart of it. , ., ., ~ services have to be at the heart of it. , ., services have to be at the heart of it. lets look at where the uk sits in terms of _ it. lets look at where the uk sits in terms of the _ it. lets look at where the uk sits in terms of the amount - it. lets look at where the uk sits in terms of the amount of- it. lets look at where the uk sits in terms of the amount of tax i it. lets look at where the uk sits in terms of the amount of tax we it. lets look at where the uk sits i in terms of the amount of tax we pay as a percentage of gdp, compared to other countries. look at canada, germany, italy and france. 53%. compared to those countries, tax isn't that high, compared to them, and the amount of money they spend on public services, particularly health. ,, , ., . ., ., health. sure. i see that. we are not france, health. sure. i see that. we are not france. we — health. sure. i see that. we are not france. we are _ health. sure. i see that. we are not france, we are not _ health. sure. i see that. we are not france, we are not italy _ health. sure. i see that. we are not france, we are not italy or- health. sure. i see that. we are not| france, we are not italy or germany. we think we can turn the economy around with proper approaches to economic growth. the tories fail to do it for 13 years. the conservatives have not been interested in fixing public services. they don't mind that you can't get a dental appointment or get seen in the health service. you can't say they _ get seen in the health service. you can't say they haven't put cash in. is notjust about money, it's about money and reform.— is notjust about money, it's about money and reform. what is wrong with bein: a bit money and reform. what is wrong with being a bit more _ money and reform. what is wrong with being a bit more like _ money and reform. what is wrong with being a bit more like germany, i being a bit more like germany, france and canada when it comes to

tax levels? i france and canada when it comes to tax levels? ., �* ,, ., france and canada when it comes to tax levels?— tax levels? i don't know what they send tax levels? i don't know what they spend their _ tax levels? i don't know what they spend their money _ tax levels? i don't know what they spend their money on _ tax levels? i don't know what they spend their money on in _ tax levels? i don't know what they spend their money on in those i spend their money on in those countries. i don't think we should aspire to being an even higher tax take country, when nothing is working. take country, when nothing is workini. �* ., ., , take country, when nothing is workini. �* ., ., , working. but growth has also been hirin: cuite working. but growth has also been hiring quite a _ working. but growth has also been hiring quite a few _ working. but growth has also been hiring quite a few of _ working. but growth has also been hiring quite a few of those - hiring quite a few of those countries. i hiring quite a few of those countries.— hiring quite a few of those countries. ,, . , , , countries. i think that is because of different _ countries. i think that is because of different reasons, _ countries. i think that is because of different reasons, like i of different reasons, like industrial policy. which is why i say, time and time again, it's not just the money you spend, it is how you run the country, how you engage with business. 13 years, the tories have failed. the autumn statement today will not anywhere near enough today will not anywhere near enough to turn that around.— to turn that around. thank you very much forjoining — to turn that around. thank you very much forjoining us. _ to turn that around. thank you very much forjoining us. welcome i to turn that around. thank you very much forjoining us. welcome to i much forjoining us. welcome to vicki young, bbc deputy political editor. what do you make of what you have heard from the treasury minister and darrenjones? it’s have heard from the treasury minister and darren jones? it's hard to look at this _ minister and darren jones? it's hard to look at this without _ minister and darren jones? it's hard to look at this without thinking i to look at this without thinking about when the election is going to be. everybody thinks we are obsessed with it in westminster, it is what conservative mps are obsessed with. what they were looking at today was, could jeremy hunt say anything that will move the dial? they feel that

rishi sunak has tried to pull lots of different levers, they haven't necessarily worked. they look to a year ago, we were sitting there on that day, what was going on then, they think he has steadied the ship. what they are looking for now is something about it, can they go out the doorsteps and sell something to people, and sell it to voters? the problem they have got, one tory mp said to me yesterday, theirfear problem they have got, one tory mp said to me yesterday, their fear is that he could announce almost anything, and they talk about ken clarke in 1996, he cut income tax. he also delivered a benign economy to labour. ., , , ., . to labour. their worry is, no matter what jeremy — to labour. their worry is, no matter what jeremy hunt — to labour. their worry is, no matter what jeremy hunt says _ to labour. their worry is, no matter what jeremy hunt says now- to labour. their worry is, no matter what jeremy hunt says now or i to labour. their worry is, no matter what jeremy hunt says now or in i to labour. their worry is, no matter| what jeremy hunt says now or in the whatjeremy hunt says now or in the budget, people are not listening any more. it was interesting jeremy hunt used the phrase compassionate conservatism. i think he is trying to show there is economic competence, after a time when lots of people would say there has not been. in the end, he has to get over the fact that people will look at

this and think, am i better off than i was five years ago or ten years ago? i was five years ago or ten years aio? ~ . i was five years ago or ten years aio? . ., , ., �* ago? we had the figures from the obr in terms of living _ ago? we had the figures from the obr in terms of living standards. _ ago? we had the figures from the obr in terms of living standards. paul i in terms of living standards. paul johnson is from the institute for fiscal studies. you have obviously had some site of the books in front of you. had some site of the books in front of ou. ., , ., ., had some site of the books in front of you— in - had some site of the books in front i of you— in terms of you. hours to read them. in terms of you. hours to read them. in terms ofthe of you. hours to read them. in terms of the national _ of you. hours to read them. in terms of the national insurance _ of you. hours to read them. in terms of the national insurance cutter, i of you. hours to read them. in terms of the national insurance cutter, it i of the national insurance cutter, it was bigger than we thought, 2%. we have the treasury minister saying they want to put more money in people's pockets because of the cost of living. in terms of the overall tax burden, what difference will it make? ., ., , , make? two or three things, the first is that if you — make? two or three things, the first is that if you are _ make? two or three things, the first is that if you are going _ make? two or three things, the first is that if you are going to _ make? two or three things, the first is that if you are going to cut i make? two or three things, the first is that if you are going to cut a i is that if you are going to cut a main tax rate, national insurance is probably better to do than income tax, that helps lower earning people in work. the overall effect of the tax changes we have seen, particularly the freezing of the income tax thresholds and allowances, for most people this is still going to be a tax rise when you put all of them together.

indeed, in the long run, this 2p off insurance does not even undo the effect of greater inflation we are going to see over the next three or four years in terms of the fiscal drag on the system. he four years in terms of the fiscal drag on the system.— four years in terms of the fiscal drag on the system. he said he could do it responsibly _ drag on the system. he said he could do it responsibly and _ drag on the system. he said he could do it responsibly and give _ drag on the system. he said he could do it responsibly and give these i drag on the system. he said he could do it responsibly and give these tax l do it responsibly and give these tax cuts, and they would not be inflationary. he said the obr had given him permission to do so. do you agree with that, broadly? thefie you agree with that, broadly? these are relatively _ you agree with that, broadly? these are relatively small— you agree with that, broadly? these are relatively small numbers - you agree with that, broadly? these are relatively small numbers in - you agree with that, broadly? iii"? are relatively small numbers in the 2.5 trillion economy. will they be inflationary? if they are going to push in any direction, they will push in any direction, they will push to being slightly inflationary. overall, i doubt the bank of england is going to be desperately worried. but they take risks on that side, rather than on the other side. fiscal drag, can you explain that for us so that everybody understands? we use this term and talk about freezing tax thresholds, what does it mean in reality? ianthem

what does it mean in reality? when inflation is high _ what does it mean in reality? when inflation is high under _ what does it mean in reality? wuez'i inflation is high under earnings what does it mean in reality? wuez�*u inflation is high under earnings and incomes are rising, if you keep at the same point in cash terms, where you start to pay income tax, you drag more of your income into tax, about £12,500, so you earn £22,500, then you get a pay rise, you pay tax on more of your income. so you then pay tax on a greater part of your income. usually, the tax thresholds rise with prices, but the government might go frozen for six years. the obr thinks it is an enormous tax rise. ~ ., ., ~' obr thinks it is an enormous tax rise. ~ ., ., ~ ., obr thinks it is an enormous tax rise. ~ ., , , rise. when we look at spending, before the _ rise. when we look at spending, before the autumn _ rise. when we look at spending, before the autumn statement, i rise. when we look at spending, i before the autumn statement, the state is bigger than conservative governments might have planned in the past, we have the treasury minister sitting there, gareth davies, saying we want growth in the economy, we think the measures for business will boost that, and then

you look at the forecast, it has been downgraded quite significantly, growth for this year, next year and a year after? it growth for this year, next year and a year after?— a year after? it looks like the obr is expeeting _ a year after? it looks like the obr is expeeting the — a year after? it looks like the obr is expecting the size _ a year after? it looks like the obr is expecting the size of— a year after? it looks like the obr is expecting the size of the - a year after? it looks like the obr i is expecting the size of the economy to be about where it was expecting in march, isjust a different part of the economy grew. it started at a high level, the base of statistics were wrong, the economy was bigger than we thought, and we have not had a recession this year, which the obr thought we might have back in march. from here on, the growth looks pretty feeble. and whilst the chancellor said that overall the economy is bigger now than it was a pre—pandemic, if you look at the size of the economy per person, it is still no bigger than it was pre—pandemic. is still no bigger than it was pre-pandemic._ is still no bigger than it was re- andemic. ,, ., , ., pre-pandemic. simon, you tweeted this, the chancellor _ pre-pandemic. simon, you tweeted this, the chancellor announced - pre-pandemic. simon, you tweeted this, the chancellor announced a i this, the chancellor announced a long—term cash freeze on investment spending, a significant real cut. we already have public—sector investment well below that on most comparable countries, this is not good for growth. what is the long

term cash freeze in investment spending? in term cash freeze in investment spending?— term cash freeze in investment sendina? ., spending? in march already, the chancellor _ spending? in march already, the chancellor said _ spending? in march already, the chancellor said we _ spending? in march already, the chancellor said we are _ spending? in march already, the chancellor said we are going - spending? in march already, the chancellor said we are going to i spending? in march already, the - chancellor said we are going to keep a stable in cash terms the amount we spend on infrastructure spending and so on. he has extended that for another year. so on. he has extended that for anotheryear. in so on. he has extended that for another year. in real terms, so on. he has extended that for anotheryear. in realterms, it's going down, and is a fraction of national income it is going down even faster. to be fair to the government, they have brought up quite a lot over the last five or six years, starting with philip hammond. they have invested quite a lot. but this is quite a significant cut over the next five years, in real terms. cut over the next five years, in realterms. if cut over the next five years, in real terms. if there's one thing we are pretty confident of in terms of what matters for growth, it is investing on our roads and infrastructure, and those sorts of things. infrastructure, and those sorts of thins. ~ . infrastructure, and those sorts of thins. l ., ., infrastructure, and those sorts of thins. ~ ., ., i” infrastructure, and those sorts of thins. l ., ., .«r ., things. what do you make of the government _ things. what do you make of the government criticism _ things. what do you make of the government criticism of - things. what do you make of the government criticism of labour. government criticism of labour wanting to borrow an extra £20 billion per year if they win the election on green policies? but on this debate on borrowing, and whether it is a good or a bad thing? the government has chosen today not

to bring borrowing down as much as they could have done, had they essentially do nothing today than borrowing would have come down a little bit more, and actually, borrowing is coming down to very low levels. the real problem here is that debt is high, debt interest payments are incredibly high. and that means that within a year or two, the government will be taking more out of the economy than it is spending on staff, because it is spending on staff, because it is spending so much on debt interest. for the first time in 25 years we will be running what is called a primary surplus, bringing in more in revenue than we are spending on things other than debt interest. even so, debt is still essentially flat over this period. i think that really illustrates the huge challenge that we have got a year. very high levels of tax, and the highest historically we have had, and apparently not very much for public services, partly because we are spending so much on interest.

the single biggest ticket item on the whole thing was the full expensing of business investment, and it_ expensing of business investment, and it is_ expensing of business investment, and it is going to cost about £11 billion— and it is going to cost about £11 billion per— and it is going to cost about £11 billion per year by 2028—29. the chancellor— billion per year by 2028—29. the chancellor said that is going to generate — chancellor said that is going to generate business investment of £3 billion_ generate business investment of £3 billion per— generate business investment of £3 billion per year. what did you make of the _ billion per year. what did you make of the maths, was it a good use of money? _ of the maths, was it a good use of mone ? , ., ., , , money? given that we had this fully exensed money? given that we had this fully exoensed and _ money? given that we had this fully expensed and introduced _ money? given that we had this fully expensed and introduced for - money? given that we had this fully expensed and introduced for three l expensed and introduced for three years back in march, everybody thinks it makes no sense to have temporarily, it is something you want permanently. and it is much cheaper than that in the long run. once you get seven or eight years down the road, we think it will only cost a couple of billion per year. higher gdp, highertax receipts? higher gdp, higher tax receipts? more _ higher gdp, highertax receipts? more because of the way that corporation tax works at the moment. if your company is investing in staff, your tax bill goes down over time, whereas if you bring the full expensing on, you lose corporation tax immediately. in a way, it is a pre—election sort of budget, and

thatis pre—election sort of budget, and that is quite a statement, i don't live many people are going to vote on the basis of that. it costs quite a lot in the short run, but the expectation is that it is valuable in the long run. so not all of this autumn statement, by any means, was just a pre—election bribe. there is real stuff in here that i think is genuinely aimed at getting the economy growing. do you think, when unit of the national— do you think, when unit of the national insurance cut, bigger expected, then the tax threshold fiscal_ expected, then the tax threshold fiscal drag point you made, in this current_ fiscal drag point you made, in this current year — fiscal drag point you made, in this current year coming up, is that still_ current year coming up, is that still a — current year coming up, is that still a net — current year coming up, is that still a net tax cut? it current year coming up, is that still a net tax cut?— current year coming up, is that still a net tax cut? it depends what ou are still a net tax cut? it depends what you are comparing _ still a net tax cut? it depends what you are comparing it _ still a net tax cut? it depends what you are comparing it with - still a net tax cut? it depends what you are comparing it with the - still a net tax cut? it depends what you are comparing it with the if- still a net tax cut? it depends what | you are comparing it with the if you compare 2021 to next fiscal year, if you are on average earnings, you're probably a bit better but if you are below you are probably worse off. comparing this year to next, for most people, the value of the national insurance cut is more than

just this one year bus for in the real value of the thresholds, but pretty much everyone is going to be paying more tax at the end of this parliament than at the beginning. fin parliament than at the beginning. on your point about not everything was done with a pre—election hat on, the announcement on pensions, that you will be able to transfer cash, that sounded quite positive for employees. aha, sounded quite positive for employees-_ sounded quite positive for employees. sounded quite positive for emlo ees. ~ ., ., employees. a positive note for employees _ employees. a positive note for employees who _ employees. a positive note for employees who can _ employees. a positive note for employees who can use - employees. a positive note for employees who can use it. - employees. a positive note for employees who can use it. i i employees. a positive note for. employees who can use it. i think employees. a positive note for- employees who can use it. i think it will worry employers, as it will be quite expensive. it, absolutely, we want a system where individuals keep a single pot and don't end up at retirement with 15 different pots. the real issue is how you are going to make this work. at the moment, if you have a group of relatively low—paid employees, as an employer, you can probably negotiate quite a deal with the pension provider to if you have lots of turnover and end up

with ten different pension providers you may end up with a less good deal, and we need to sort that out. i was going to ask about the nhs and productivity in public services, and we heard _ productivity in public services, and we heard a — productivity in public services, and we heard a lot from jeremy hunt about— we heard a lot from jeremy hunt about how, as you say, there is money— about how, as you say, there is money go — about how, as you say, there is money go again but the productivity doesn't _ money go again but the productivity doesn't seem to be improving, and you pointed — doesn't seem to be improving, and you pointed out before about the work _ you pointed out before about the work force in the nhs, that there have _ workforce in the nhs, that there have been— work force in the nhs, that there have been more people recruited but the number— have been more people recruited but the number of people being treated doesn't _ the number of people being treated doesn't seem to be going up, and that seems— doesn't seem to be going up, and that seems to be a big problem, i think. _ that seems to be a big problem, i think. not— that seems to be a big problem, i think, notjust for this government, whoever— think, notjust for this government, whoever becomes the next government and what _ whoever becomes the next government and what they do about it. i feel like we've — and what they do about it. i feel like we've heard so much about productivity in public services but it never_ productivity in public services but it never seems to improve the was there _ it never seems to improve the was there anything you heard today about that? we _ there anything you heard today about that? ~ �* ., ., , there anything you heard today about that? ~ �* . ., , ., , that? we didn't hear any details about what _ that? we didn't hear any details about what might _ that? we didn't hear any details about what might happen - that? we didn't hear any details about what might happen to - that? we didn't hear any details - about what might happen to improve productivity in the nhs. productivity in the nhs was rising in the 2010 pin, with a bit more money but quite a lot productivity

since 2019, a lot more money and no more activity. it seems to me there are issues like this around the world, but it could be because there are still some people in kronecker beds, which creates problems with isolating, it may be that staff are somewhat disengaged and there is a problem with getting people at the other end into social care. there are probably a lot of these things but these are hypotheses at this present is that we don't have a definite answer to what role each of those plays, and there is an opportunity here for tips it should be possible to regain that trend we were on pre—2019 but we are not there yet. g0 were on pre-2019 but we are not there et. . ~ were on pre-2019 but we are not there yet-— there yet. go back to the overall tax burden _ there yet. go back to the overall tax burden take _ there yet. go back to the overall tax burden take a _ there yet. go back to the overall tax burden take a percentage i there yet. go back to the overall tax burden take a percentage of| tax burden take a percentage of national— tax burden take a percentage of national income, should we get used to, with _ national income, should we get used to, with an— national income, should we get used to, with an ageing population, the fact it's _ to, with an ageing population, the fact it's going to be hard to ship, come _ fact it's going to be hard to ship, come what — fact it's going to be hard to ship, come what may, and it's naive to expect— come what may, and it's naive to expect that — come what may, and it's naive to expect that to come down to levels we saw _

expect that to come down to levels we saw five — expect that to come down to levels we saw five or ten years ago? | expect that to come down to levels we saw five or ten years ago? i fear it is. we saw five or ten years ago? i fear it is- most — we saw five or ten years ago? i fear it is- most of— we saw five or ten years ago? i fear it is. most of my _ we saw five or ten years ago? i fear it is. most of my life, _ we saw five or ten years ago? i fear it is. most of my life, which - we saw five or ten years ago? i fear it is. most of my life, which is - we saw five or ten years ago? i fear it is. most of my life, which is now| it is. most of my life, which is now getting quite long, taxes have been about 33, 34% of national income that they are shooting up over this decade to 37 or 38% of my guess is that they will stay there for the remainder of my life. something to be “0 ul remainder of my life. something to be joyful about- _ remainder of my life. something to be joyful about. said, _ remainder of my life. something to be joyful about. said, perhaps- remainder of my life. something to j be joyful about. said, perhaps we'll oerate be joyful about. said, perhaps we'll operate pensions _ be joyful about. said, perhaps we'll operate pensions by _ be joyful about. said, perhaps we'll operate pensions by the _ be joyful about. said, perhaps we'll operate pensions by the lower - be joyful about. said, perhaps we'll. operate pensions by the lower mode, only to backtrack and say, don't worry, it's triple log all the way. presumably at some point there has to be discussion. its health and care more than pensions that are really putting the pressure on finances but clearly, if you carry on with the triple lock, that gets more expensive over time in a random way for a trip we don't quite know how much the triple lock is going to cost because we don't quite know

what the relationship between income and earnings going to be philip if we had had the triple lock in the 20th up to 2008, it would have cost almost nothing because every year you had earnings above inflation at almost the same as you had with the triple lock. because we've had such a bizarre economy since 2010, it turned out different what people expected when they put in place. pauljohnson, thank you forjoining us and we'll let you go and ijust every page of those books in front of you for the rest of the afternoon and evening. don't say i never give you everything. let's go to hole and talk to the bbc political editor for lincolnshire at yorkshire let's find out what people there think of what jeremy hunt announced. —— let's go to hull. welcome back to market community centre in hull. a lot has happened since we spoke before the speech and it's good to put some meat on the bones. a regional director of the

cbi in yorkshirejoined us earlier. did jeremy hunt tell you what you wanted to hear it did jeremy hunt tell you what you wanted to hea— wanted to hear it was good to see the move on _ wanted to hear it was good to see the move on national— wanted to hear it was good to see the move on national insurance i wanted to hear it was good to see l the move on national insurance for hard—pressed households, something we spoke about a lot earlier i think the news but full capital expensing be made permanent is great news for the business community of the many of our members have spoken about that and asked us to campaign for. and you're hopeful of a devolution dealfor this area and and you're hopeful of a devolution deal for this area and you got it. it's great to see a devolution deal on both sides of the humber and we really hope that we will see some really hope that we will see some really good messaging from the two joint mayors when they eventually arrive and i think that's a great opportunity to put in the area on the map and promoting business investment opportunities. let's hear from a restaurant in east yorkshire.

you were talking earlier from a restaurant in east yorkshire. you were talking earlie— you were talking earlier about the sub'ect you were talking earlier about the subject people — you were talking earlier about the subject people will _ you were talking earlier about the subject people will be _ you were talking earlier about the subject people will be clear- you were talking earlier about the subject people will be clear with, | subject people will be clear with, the cost of living, the cost to produce in your restaurant. did the chancellor do anything to address that? �* , , , chancellor do anything to address that? �* , ,, ., , chancellor do anything to address that? , ,, ., , that? business rate, 75% discount... it will help us- _ that? business rate, 75% discount... it will help us. duty _ that? business rate, 75% discount... it will help us. duty on _ that? business rate, 75% discount... it will help us. duty on the _ that? business rate, 75% discount... it will help us. duty on the drinks, i it will help us. duty on the drinks, which will help us with the price, people can come to the restaurant for a price, so people can come to the restaurant fora price, so i'm people can come to the restaurant for a price, so i'm looking forward to see these benefits. m because you were talking about staff retention many businesses in the hospitality sector find many businesses in the hospitality sectorfind it many businesses in the hospitality sector find it hard to hang many businesses in the hospitality sectorfind it hard to hang on many businesses in the hospitality sector find it hard to hang on to star. ~ ., ., ., , ., . star. will the national insurance cut is it? it's _ star. will the national insurance cut is it? it's the _ star. will the national insurance cut is it? it's the biggest - star. will the national insurance l cut is it? it's the biggest problem for businesses. _ cut is it? it's the biggest problem for businesses. if _ cut is it? it's the biggest problem for businesses. if you _ cut is it? it's the biggest problem for businesses. if you want - cut is it? it's the biggest problem for businesses. if you want to - cut is it? it's the biggest problem i for businesses. if you want to bring staff from london or the big cities,

the wages were high, so the contribution, which is affecting the business. day—to—day planning for next year. 50 business. day-to-day planning for next ear. ., ., , ., next year. so a cautious welcome to jeremy hunt — next year. so a cautious welcome to jeremy hunt bus _ next year. so a cautious welcome to jeremy hunt bus proper _ next year. so a cautious welcome to jeremy hunt bus proper statement i next year. so a cautious welcome to l jeremy hunt bus proper statement to let me bring in angus west, a director of a package company in hull for the is also a prominent brexiteer. on the statement itself, wasn't a good statement or about one? ., wasn't a good statement or about one? . .. wasn't a good statement or about one? ., _, _ wasn't a good statement or about one? ., one? you could say too little, too late. one? you could say too little, too late- this — one? you could say too little, too late. this could _ one? you could say too little, too late. this could all _ one? you could say too little, too late. this could all have _ one? you could say too little, too late. this could all have been - one? you could say too little, tool late. this could all have been done a year ago. it was liz truss and kwasi kwarteng plans a year ago, so thank goodness they have finally come. the one thing for small and medium—sized enterprises with the increase to 25% in corporation tax, which is unwelcome for there is 100% capital allowances now if you are buying new equipment for your business and we are a manufacturing company and we invest heavily in

capital equipment and have a look at that area at the moment, but that's all about spending money to improve your business. ok, that's going to be100% attach right. i welcome that there is far more that should be done for particularly manufacturing businesses and small businesses. that's how we create wealth and increase the size of the wealth cake and that's what this country needs. you said the liz truss, kwasi kwarteng budget was a good one. fir kwarteng budget was a good one. (1) it could have been if it was allowed to go forward and this has adopted many things they were talking about in the 46 days that liz was prime minister for the it's formative they have come a year later. a lot of these were the ideas and policies that liz truss and kwasi kwarteng were espousing 12 months ago. 30 said that people are perhaps talking about brexit again, perhaps because farage is in thejob. you are a prominent brexiteerfor farage is in thejob. you are a prominent brexiteer for the do you

believe brexit has been good for this area i believe brexit has been good for this area , �* ., , ., this area i believe brexit has not been fully implemented - this area i believe brexit has not been fully implemented to - this area i believe brexit has not been fully implemented to dip i this area i believe brexit has not been fully implemented to dip a | this area i believe brexit has not i been fully implemented to dip a lot of people have tried to prevent that i believe, if we go with it, the opportunities are huge but had to do it and that's something i guess nigel talked about and the brexiteers talked about but there have been impediments throughout the time since the vote in 2016 and all the messing about. it's about time we actually did brexit properly and became an independent, sovereign nation, responsible for our own actions, out and trade laws and everything else. in this city voted in large numbers, two thirds vote in favour of brexit. i5 in large numbers, two thirds vote in favour of brexit.— favour of brexit. is there still a big brexit _ favour of brexit. is there still a big brexit effect _ favour of brexit. is there still a big brexit effect on _ favour of brexit. is there still a big brexit effect on the - favour of brexit. is there still a i big brexit effect on the economy here big brexit effect on the economy hers �*, big brexit effect on the economy her �* , ' . ., big brexit effect on the economy her �*, '. big brexit effect on the economy here it's difficult to say because only other _ here it's difficult to say because only other things _ here it's difficult to say because only other things have - here it's difficult to say because only other things have come i here it's difficult to say because | only other things have come into here it's difficult to say because i only other things have come into the mix. the impact of the pandemic has been huge on this area at the tip really, we want to work with businesses and the community and work with local leadership to make sure this area, with a devolution

deal, can rise up above that and really achieve the heights it wants to step really achieve the heights it wants to ste -_ , really achieve the heights it wants to ste_ , ,., ., . really achieve the heights it wants toste_ , ,., ., _ ., really achieve the heights it wants toste_ , ., _ ., ., to step very diplomatic. we have to co to step very diplomatic. we have to to back to to step very diplomatic. we have to go back to the _ to step very diplomatic. we have to go back to the studio. _ go back to the studio. tim in hull, thank you. picking up on one of the points, there was a bit of nostalgia for some of the measures that one of the guests was talking about when liz truss was prime minister and kwasi kwarteng was chancellor. he said that some of the things they were trying to do has now happened in this particular autumn statement do you think that's true? it’s autumn statement do you think that's true? �* , . . , autumn statement do you think that's true? ., , true? it's certainly the case there are some. _ true? it's certainly the case there are some, lots _ true? it's certainly the case there are some, lots of _ true? it's certainly the case there are some, lots of tory _ true? it's certainly the case there are some, lots of tory mps i true? it's certainly the case there are some, lots of tory mps who i true? it's certainly the case there i are some, lots of tory mps who said, what they were trying to do was necessarily wrong, it was the way they set about it, so not having those obr forecasts. if you don't do that, it makes it look like you're not wanting someone to mark your homework, so that was part of the

problem. they didn't prepare people. it was the way they did it not necessarily what they were trying to do so there will be tory mps who say, if we'd done this a year ago, where would we be now with growth forecasts? you never know to dip some of the things they were aiming for were the right things to do, given there is such a problem when it comes to the growth forecast. when you do these what are called supply—side measures, where you try and improve — supply—side measures, where you try and improve the workings of the economy, — and improve the workings of the economy, lots of measures, it takes some _ economy, lots of measures, it takes some time _ economy, lots of measures, it takes some time to come through, as it would _ some time to come through, as it would have — some time to come through, as it would have done for liz truss. which is why— would have done for liz truss. which is why they— would have done for liz truss. which is why they weren't given the benefit — is why they weren't given the benefit of the doubt, as they would probably— benefit of the doubt, as they would probably see it. i thinkjeremy hunt will properly say, we have put in place _ will properly say, we have put in place the — will properly say, we have put in place the tough measures on borrowing, the credibility, and now we can— borrowing, the credibility, and now we can do— borrowing, the credibility, and now we can do these measures which go for growth _ we can do these measures which go for growth but, in terms of the electoral— for growth but, in terms of the electoral cycle, it's going to take five to— electoral cycle, it's going to take five to ten— electoral cycle, it's going to take five to ten years. some of the stuff about _ five to ten years. some of the stuff about improving business investment doesn't _ about improving business investment doesn't come through until after the

four cut _ doesn't come through until after the four cut ends in five years. that's pretty— four cut ends in five years. that's pretty impressive.— four cut ends in five years. that's pretty impressive. rishi sunak said he was making _ pretty impressive. rishi sunak said he was making long-term - pretty impressive. rishi sunak said i he was making long-term decisions. he was making long—term decisions. and there is a benefit to long—term decisions _ and there is a benefit to long—term decisions that don't have an immediate, upfront electoral dividend. the reason why it's tough for it— dividend. the reason why it's tough for it is, _ dividend. the reason why it's tough for it is, if— dividend. the reason why it's tough for it is, if they are going to affect— for it is, if they are going to affect growth, they'll be politically difficult, like pylons across— politically difficult, like pylons across the country will cause a political — across the country will cause a political pylon. planning problems. they do— political pylon. planning problems. they do take time, don't they? the tax cut comes _ they do take time, don't they? the tax cut comes in _ they do take time, don't they? tus tax cut comes in in they do take time, don't they? tts tax cut comes in injanuary they do take time, don't they? tt2 tax cut comes in injanuary so there is a crowd pleaser out that the things that upgrading the ——, getting the planning consent, our energy network, these famously take ages and attempts to track short cut and speed up the planning process, many governments have found it on

those particular rocks. it doesn't worth the trip you saw what happened with housing targets. those are some of the issues. the other point i'd make of this is that the biggest single ticket measure was this full expensing, if you are a business, you can go out and buy new stuff and not run off your profits, and business called for that. that works if you are a manufacturer and you want a shiny new factory. if you're in professional services, which is a service based economy, it's going to be much harder to access those tax breaks. it's not going to help if you are buying a new piece of software or whatever or leasing stuff or buying second hand stuff. i think a lot of business would say, we like the ambition but what is it going for me?— we like the ambition but what is it going for me? we like the ambition but what is it ttoin for me"). ., ., ., going for me? what about the cost of livina ? going for me? what about the cost of living? those — going for me? what about the cost of living? those pressures _ going for me? what about the cost of living? those pressures are _ going for me? what about the cost of living? those pressures are still- living? those pressures are still enormous for millions of households. the rate of inflation has come down to 4.6% the rate of inflation has come down to it.6% and is on a trajectory to come down further, although not, i

think, until2025. come down further, although not, i think, until 2025. that's the focus, 2%, the bank of england tock the money that will go back into people's pockets or won't leave it because of that cut to national insurance will it make people feel better off? t5 insurance will it make people feel better off? , , ., , , insurance will it make people feel better off? , , , ., better off? is the problem is about the inflation _ better off? is the problem is about the inflation rates _ better off? is the problem is about the inflation rates coming - better off? is the problem is about the inflation rates coming down, i the inflation rates coming down, it's a basic point, prices are still going up, so it's not that they are coming out everyone knows when they go to the shops, they never expect something to come down in price whatever has gone up will properly stay around that price. generally. the other thing is that that hasn't fed through the economy yet i think there was a statistic that only about half of that impact, so people or mortgages will still have to remortgage and this plays into when you call an election. there are still lots of people who in the next year will have to remortgage at a higher rate than they had. actually, the full impact of this hasn't even been felt for some people so you could argue for some that there is still worse to come. fin

could argue for some that there is still worse to come.— still worse to come. on the other hand, still worse to come. on the other hand. you'll— still worse to come. on the other hand. you'll get _ still worse to come. on the other hand, you'll get cash _ still worse to come. on the other hand, you'll get cash increases i still worse to come. on the other. hand, you'll get cash increases the benefits _ hand, you'll get cash increases the benefits of— hand, you'll get cash increases the benefits of 6.7%, pension of 8%, the minimum _ benefits of 6.7%, pension of 8%, the minimum wage up ten to 12%, some of the arm— minimum wage up ten to 12%, some of the arm the— minimum wage up ten to 12%, some of the arm the ages 20% of the at the time that— the arm the ages 20% of the at the time that inflation is falling to dip so— time that inflation is falling to dip so i— time that inflation is falling to dip so i think there will be a material— dip so i think there will be a material impact from that plan, the cup and _ material impact from that plan, the cup and were hoping it would be pulling _ cup and were hoping it would be pulling will it feel like 2024 is light— pulling will it feel like 2024 is light at— pulling will it feel like 2024 is light at the end of the tunnel or will people feel so weighed down by the past _ will people feel so weighed down by the past couple of years with that squeeze. — the past couple of years with that squeeze, you showed the chart record squeeze? _ squeeze, you showed the chart record squeeze.? |t— squeeze, you showed the chart record su ueeze,? , , squeeze, you showed the chart record saueeze,? , , ., ., squeeze,? it depends how far your memory goes _ squeeze,? it depends how far your memory goes back _ squeeze,? it depends how far your memory goes back to _ squeeze,? it depends how far your memory goes back to you - squeeze,? it depends how far your memory goes back to you could i squeeze, ? it depends how far your | memory goes back to you could be, before the pandemic, how was i feeling? you might think, ifeel better off than i did a year ago but this is all under the same government.— this is all under the same covernment. ., ., , government. the data is, will there be a short-term — government. the data is, will there be a short-term sugar _ government. the data is, will there

be a short-term sugar rush? - government. the data is, will there | be a short-term sugar rush? people be a short—term sugar rush? people think— be a short—term sugar rush? people think i'm _ be a short—term sugar rush? people think i'm 21. — be a short—term sugar rush? people think i'm 21. my— be a short—term sugar rush? people think i'm 21, my living _ be a short—term sugar rush? people think i'm 21, my living wage - be a short—term sugar rush? people think i'm 21, my living wage is - think i'm 21, my living wage is going — think i'm 21, my living wage is going up— think i'm 21, my living wage is going up 20% _ think i'm 21, my living wage is going up 20% i've _ think i'm 21, my living wage is going up 20% i've got- think i'm 21, my living wage is going up 20% i've got more i think i'm 21, my living wage is i going up 20% i've got more money think i'm 21, my living wage is - going up 20% i've got more money in my pocket, _ going up 20% i've got more money in my pocket, l'm — going up 20% i've got more money in my pocket, i'm going _ going up 20% i've got more money in my pocket, i'm going to— going up 20% i've got more money in my pocket, i'm going to go— going up 20% i've got more money in my pocket, i'm going to go and - going up 20% i've got more money in| my pocket, i'm going to go and spend it. my pocket, i'm going to go and spend it to— my pocket, i'm going to go and spend it to what— my pocket, i'm going to go and spend it. to what extent _ my pocket, i'm going to go and spend it. to what extent does _ my pocket, i'm going to go and spend it. to what extent does that _ my pocket, i'm going to go and spend it. to what extent does that prolong i it. to what extent does that prolong hi-h it. to what extent does that prolong high interest— it. to what extent does that prolong high interest rates— it. to what extent does that prolong high interest rates and _ it. to what extent does that prolong high interest rates and make - it. to what extent does that prolong high interest rates and make the i high interest rates and make the back of— high interest rates and make the back of an — high interest rates and make the back of an egg. _ high interest rates and make the back of an egg, i'm _ high interest rates and make the back of an egg, i'm going - high interest rates and make the back of an egg, i'm going to i high interest rates and make the| back of an egg, i'm going to keep rates _ back of an egg, i'm going to keep rates higher— back of an egg, i'm going to keep rates higher for— back of an egg, i'm going to keep rates higher for longer— back of an egg, i'm going to keep rates higher for longer and - rates higher for longer and therefore _ rates higher for longer and therefore my— rates higher for longer and therefore my mortgage i rates higher for longer and therefore my mortgage isi rates higher for longer and i therefore my mortgage is more expensive, _ therefore my mortgage is more expensive, therefore _ therefore my mortgage is more expensive, therefore my- therefore my mortgage is more i expensive, therefore my borrowing costs— expensive, therefore my borrowing costs as _ expensive, therefore my borrowing costs as a — expensive, therefore my borrowing costs as a business _ expensive, therefore my borrowing costs as a business stay _ expensive, therefore my borrowing costs as a business stay higher- expensive, therefore my borrowingl costs as a business stay higher than otherwise — costs as a business stay higher than otherwise. that— costs as a business stay higher than otherwise. that will— costs as a business stay higher than otherwise. that will be _ costs as a business stay higher than otherwise. that will be the - otherwise. that will be the interesting _ otherwise. that will be the interesting thing. - otherwise. that will be the interesting thing. i- otherwise. that will be the interesting thing. i like i otherwise. that will be thej interesting thing. i like the otherwise. that will be the - interesting thing. i like the phrase the short—term _ interesting thing. i like the phrase the short—term sugar— interesting thing. i like the phrase the short—term sugar rush, - interesting thing. i like the phrase the short—term sugar rush, that'sl the short—term sugar rush, that's what _ the short—term sugar rush, that's what the — the short—term sugar rush, that's what the government _ the short—term sugar rush, that's what the government will- the short—term sugar rush, that's what the government will be i the short—term sugar rush, that's i what the government will be hoping for in _ what the government will be hoping for in their— what the government will be hoping for in their calculations _ what the government will be hoping for in their calculations about - what the government will be hoping for in their calculations about whenl for in their calculations about when to go— for in their calculations about when to go for— for in their calculations about when to go for a — for in their calculations about when to go for a general— for in their calculations about when to go for a general election. - for in their calculations about when to go for a general election. just i to go for a general election. just to go for a general election. just to underline _ to go for a general election. just to underline what _ to go for a general election. just to underline what you _ to go for a general election. just to underline what you were i to go for a general election. just i to underline what you were saying about _ to underline what you were saying about prices, _ to underline what you were saying about prices, if— to underline what you were saying about prices.— about prices, if you look at the chan . e about prices, if you look at the change in _ about prices, if you look at the change in prices, _ about prices, if you look at the change in prices, the - about prices, if you look at the change in prices, the increase| change in prices, the increase between january 21 and october last month look at the percentage increases. much of that pectin a whopping 82% in energy. the government did a significant amount to help people with those increases for a portion of time at the same

with businesses, which i think is continuing. what will it mean in terms of timing for the next election?— terms of timing for the next election? ., ., ., ., election? the fact that national insurance cut _ election? the fact that national insurance cut comes _ election? the fact that national insurance cut comes on - election? the fact that national insurance cut comes on in i election? the fact that national. insurance cut comes on in january, election? the fact that national- insurance cut comes on in january, a insurance cut comes on injanuary, a lot of those tax changes normally don't come into april, at which point you've already had a march budget. you are running ahead of yourself as a by doing it in january, there will be some at westminster thinking that leaves the option open potentially to have a bit more of an impact for people but when you are looking at price rises, for some people that means you're into debt. other people were lucky enough to have savings that it might mean they've used up a lot of savings. i don't think it was away because you have slightly more in your pay packet. because you have slightly more in your pay packet-— because you have slightly more in your pay packet. tomorrow, while the chancellor is — your pay packet. tomorrow, while the chancellor is preparing _ your pay packet. tomorrow, while the chancellor is preparing for _ your pay packet. tomorrow, while the chancellor is preparing for his - chancellor is preparing for his breakfast media around offjim release — breakfast media around offjim release the new price cap which at the minute — release the new price cap which at the minute we are told might go up. unexpectedly for many people, who

think it's _ unexpectedly for many people, who think it's finally coming down, but it could _ think it's finally coming down, but it could bounce back again. —— ofgem release _ it could bounce back again. —— ofgem release the _ it could bounce back again. —— ofgem release the new price cap. and it boils _ release the new price cap. and it boils down, _ release the new price cap. and it boils down, i think, for a lot of people — boils down, i think, for a lot of people don't happens with interest rates _ people don't happens with interest rates if— people don't happens with interest rates. if you are the bank of england _ rates. if you are the bank of england look at this, thinking, we can continue on our path because, although— can continue on our path because, although it — can continue on our path because, although it wouldn't be a huge move if you _ although it wouldn't be a huge move if you did _ although it wouldn't be a huge move if you did move, i think the government would clearly want to sell this— government would clearly want to sell this as, 0k, government would clearly want to sellthis as, 0k, we really government would clearly want to sell this as, 0k, we really are turning — sell this as, 0k, we really are turning around, interest rates are starting _ turning around, interest rates are starting to— turning around, interest rates are starting to come down the bank of england _ starting to come down the bank of england yesterday in front of mps were a _ england yesterday in front of mps were a bit— england yesterday in front of mps were a bit sceptical about the idea, the presumption in markets that interest— the presumption in markets that interest rates would definitely come down _ interest rates would definitely come down. clap let's get more political reaction — down. clap let's get more political reaction. ben thompson is on college screen _ reaction. ben thompson is on college screen. ~ �* , . ~' reaction. ben thompson is on college screen. ~ �* , ., ~ ., screen. we've been talking about when there _ screen. we've been talking about when there could _ screen. we've been talking about when there could be _ screen. we've been talking about when there could be a _ screen. we've been talking about when there could be a general i when there could be a general election with the college screen to talk about some of the reaction to what we've heard from jeremy hunt, ed davey, lib dem leader, and dave

doogan the snp to dip the chancellor says this is a nonsense desperate autumn statement for growth. from its e - ic autumn statement for growth. from its epic perception _ autumn statement for growth. from its epic perception of _ autumn statement for growth. fn'frnn its epic perception of british people tojeremy hunt is cutting rates but in fact he is raising taxes by £400 when you take into account the fact he has frozen national insurance allowance, frozen income tax allowance, big rises in tax and those tax rising conservative government is doing it at a time when people can't afford it. if you look at the independent office of budget responsibility report published today, it shows that people are suffering from the biggest reduction in living standards since the 19505. no wonder people are upset with the conservatives. the cost of living crisis goes on to dip but this is about getting people back into work to the obr says reducing the tax on work means more people in work, and that's good for the economy but if i

that's good for the economy but if that's good for the economy but if that's how it pans out but the most pernicious — that's how it pans out but the most pernicious element of this statement is the _ pernicious element of this statement is the way— pernicious element of this statement is the way the chancellor championed putting _ is the way the chancellor championed putting disabled people into impossible situations and threatening to remove benefits from them altogether, throwing disabled people _ them altogether, throwing disabled people to the wolves and red meat to his backbenchers. this is a deceptive autumn statement. it doesn't — deceptive autumn statement. it doesn't give any kind of solution to hard—pressed households up and down this island _ hard—pressed households up and down this island and in scotland over energy— this island and in scotland over energy pricesjust that this island and in scotland over energy prices just that the issue at the moment for the energy prices are 83% higher— the moment for the energy prices are 83% higher than the moment for the energy prices are 83% higherthan in the moment for the energy prices are 83% higher than in 2021 and no £400 rebate _ 83% higher than in 2021 and no £400 rebate to _ 83% higher than in 2021 and no £400 rebate to help people with that. there _ rebate to help people with that. there is — rebate to help people with that. there is nothing in here for mortgage interest relief the after the tories, the same tories championing this autumn statement, tanks take _ championing this autumn statement, tanks take a year ago, there is nothing — tanks take a year ago, there is nothing to— tanks take a year ago, there is nothing to get here help with food prices _ nothing to get here help with food prices or— nothing to get here help with food prices or to compete with the scottish— prices or to compete with the scottish government bus from council tax freeze _ scottish government bus from council tax freeze at scottish child payment, so it's a phony budget prospectus. we

payment, so it's a phony budget prospectus-— payment, so it's a phony budget --rosectus. ~ ., ., . ., prospectus. we got an incentive to work, prospectus. we got an incentive to work. which _ prospectus. we got an incentive to work. which is _ prospectus. we got an incentive to work, which is a _ prospectus. we got an incentive to work, which is a reduction - prospectus. we got an incentive to work, which is a reduction in i work, which is a reduction in national insurance, and we are told the average could save people pondering £50 a year, an increase in pensions in with a higher figure the septemberfigure, for pensions in with a higher figure the september figure, for inflation. pensions in with a higher figure the septemberfigure, for inflation. at the same for benefits. that is giving money to people who are working, that's the point, isn't it? but it doesn't touch the sides of the when — but it doesn't touch the sides of the when people can't pay their mortgage and for their groceries to on their— mortgage and for their groceries to on their heating, getting a few quid extra _ on their heating, getting a few quid extra of— on their heating, getting a few quid extra of your tax bill doesn't make a difference. the chancellor is not being _ a difference. the chancellor is not being honest with people. he was talking _ being honest with people. he was talking but reducing class two national insurance for self—employed people _ national insurance for self—employed people earning less than £12,005 a year that— people earning less than £12,005 a year that if— people earning less than £12,005 a year that if you pounds a month or not very— year that if you pounds a month or not very many people. he's not being clear with _ not very many people. he's not being clear with the uk population and we don't _ clear with the uk population and we don't have _ clear with the uk population and we don't have a chancellor with his hand _ don't have a chancellor with his hand on— don't have a chancellor with his hand on the tiller for the we have a prime _ hand on the tiller for the we have a prime minister directing his chancellor to do what he thinks he has to— chancellor to do what he thinks he has to do— chancellor to do what he thinks he has to do to make the damage as

little _ has to do to make the damage as little as— has to do to make the damage as little as possible at the next election, and the sooner that election— election, and the sooner that election comes the better. one of the biggest _ election comes the better. one of the biggest drivers _ election comes the better. one of the biggest drivers of— election comes the better. one of the biggest drivers of growth i election comes the better. one of the biggest drivers of growth will| the biggest drivers of growth will be getting business back up and running the chancellor described his tax relief is the biggest business tax relief is the biggest business tax cuts in modern times. that means business can be at the front of this build back to make the economy grow and create jobs and build back to make the economy grow and createjobs and make build back to make the economy grow and create jobs and make us build back to make the economy grow and createjobs and make us better off? that's a step in the right direction?— direction? the lib dems back business backed _ direction? the lib dems back business backed growth i direction? the lib dems back business backed growth but i direction? the lib dems back- business backed growth but what the chancellor didn't say is that the conservatives have increased business taxation over this parliament by a record amount. what we need to grow the economy is to help people back to work but the chancellor has the wrong ideas. if we cut the nhs waiting lists, if we help people back to work who are on these very long waiting lists, that would make a huge difference. what liberal democrats have been saying is there is far too many people who have been forced out of work and not

able to get back to work because they can't see their gp or get their operation or the treatment they need. if we fixed our health system, which the tories have totally underinvested in, we could fix the economy as well and lots of businesses feel that, too. the other thing that was really missing, in terms of business, was a very strong and stable policy on infrastructure on railways, on energy, water, or housing. all the businesses i talk to say the chancellor, the government keep changing the goalposts, keep changing their policies, and that instability has undermined investment in our country. across the piece, whether it's the failure to invest in the nhs, the deception on tax, the failure to deal with infrastructure, i'm afraid this government has got it badly wrong. bit i'm afraid this government has got it badly wrong-— it badly wrong. all eyes will be on that possible _ it badly wrong. all eyes will be on that possible general _ it badly wrong. all eyes will be on that possible general election. i it badly wrong. all eyes will be on i that possible general election. when that possible general election. when that will be, we don't yet know, but the growth is quite damning downgrading growth odds against into

a 25, down from 245% to downgrading growth odds against into a 25, down from 245%to1.1t% in 2026, down to 1.9%. on average, growth downgrading every year from here on in. where will that growth come from? how'd we get this country going again? we come from? how'd we get this country going again?— going again? we won't get that urowth in going again? we won't get that growth in the — going again? we won't get that growth in the real— going again? we won't get that growth in the real economy i going again? we won't get that i growth in the real economy under this tory— growth in the real economy under this tory government because the chancellor— this tory government because the chancellor and the treasury that he presides— chancellor and the treasury that he presides over a very clear about the cost of— presides over a very clear about the cost of everything and very ignorant about _ cost of everything and very ignorant about the _ cost of everything and very ignorant about the price of everything and energy— about the price of everything and energy is— about the price of everything and energy is a prime example. on the content _ energy is a prime example. on the content for— energy is a prime example. on the content for different scheme, they .et content for different scheme, they get their— content for different scheme, they get their lowest possible price, squeezing out all opportunities for uk supply chain to develop those projects— uk supply chain to develop those projects and bring in that infrastructure from abroad. it's one example _ infrastructure from abroad. it's one example of— infrastructure from abroad. it's one example of the growth is disastrous in the _ example of the growth is disastrous in the uk _ example of the growth is disastrous in the uk and is scheduled to get worse _ in the uk and is scheduled to get worse ln — in the uk and is scheduled to get worse. in the next few years, growth in the _ worse. in the next few years, growth in the uk _ worse. in the next few years, growth in the uk will be the lowest in the g7 in the uk will be the lowest in the 67 but _ in the uk will be the lowest in the 67 but it's— in the uk will be the lowest in the g7 but it's notjust that that's deceptive. the chancellor himself is taking _ deceptive. the chancellor himself is taking credit for getting inflation down _ taking credit for getting inflation down but actually that's monetary

policy _ down but actually that's monetary policy from the bank of england and his challenge to make sure that the fiscal— his challenge to make sure that the fiscal policy is in a position to marshal— fiscal policy is in a position to marshal the resources, such as they are, marshal the resources, such as they are to _ marshal the resources, such as they are to get — marshal the resources, such as they are, to get the economy onto the front— are, to get the economy onto the front foot — are, to get the economy onto the front foot and looking for people. the way — front foot and looking for people. the way to — front foot and looking for people. the way to make sure that the economy— the way to make sure that the economy is working is not having people _ economy is working is not having people haemorrhaging over £2000 a year on _ people haemorrhaging over £2000 a year on their energy bills, and the key element to this today which really— key element to this today which really troubles me is the way the chancellor— really troubles me is the way the chancellor repeatedly told parliament that debt has fallen when actually— parliament that debt has fallen when actually debt is rising, it'sjust not rising _ actually debt is rising, it'sjust not rising as fast as the economy so it's a _ not rising as fast as the economy so it's a really. — not rising as fast as the economy so it's a really, this government has tripled _ it's a really, this government has tripled uk — it's a really, this government has tripled uk sovereign debt, a fact that's— tripled uk sovereign debt, a fact that's not— tripled uk sovereign debt, a fact that's not much talked about but it should _ that's not much talked about but it should be — that's not much talked about but it should be clear if households triple their debt — should be clear if households triple their debt in that way, would know about— their debt in that way, would know about it _ their debt in that way, would know about it. ~ . ., , about it. when will the election be? janua . about it. when will the election be? january- april- _ about it. when will the election be? january. april. april— about it. when will the election be? january. april. april or _ about it. when will the election be? january. april. april or may? - about it. when will the election be? january. april. april or may? they i january. april. april or may? they were quick _ january. april. april or may? they were quick off _ january. april. april or may? they were quick off the _ january. april. april or may? they were quick off the mark, - january. april. april or may? they were quick off the mark, won't save the on the labour party, since we've

spoken to the lib dems and the snp, what will their strategy be now? tt what will their strategy be now? tit was interesting listening to darren jones because he made the point that, when gordon brown was in opposition, it took them quite a long time before they said, we are just going to follow conservative plans. that's the easy thing to do in many ways, especially if you are 20 points ahead in the polls, so the question is, do they think people are so disillusioned with the conservatives that they are just going to turn to labour without labour really haven't offer much? i don't think so for the eye detect from some in the shadow cabinet they are particularly concerned about i don't know is at the recent by—elections. a lot of them raising the point that i've offer everything that happened, some people still don't know, that doesn't suggest they are chomping at the bit to try and vote labour and they are going to have to do a bit more than that. but i think what this autumn statement does is it poses questions for labour about all sorts of things, notjust about for labour about all sorts of things, not just about tax, for labour about all sorts of things, notjust about tax, but i was struck by what he had to say about the nhs and public services,

he said you just can't keep pouring money into the nhs you need to reform. the plan for that? there is a realfeeling reform. the plan for that? there is a real feeling that a labour government is much more able to tinker and do stuff with the nhs perhaps than a tory government, so i think there are questions for labour and i wouldn't say we put any answers. and i wouldn't say we put any answers-— and i wouldn't say we put any answers. �* ., ., ., answers. before a final comment, because i know — answers. before a final comment, because i know you _ answers. before a final comment, because i know you have - answers. before a final comment, because i know you have to i answers. before a final comment, because i know you have to go i answers. before a final comment, because i know you have to go in l answers. before a final comment, | because i know you have to go in a few minutes, just to say that you've been watching we are on until 3:15pm covering the autumn statement but at this point we will say goodbye to viewers from the news channel. thank you for keeping us company.

live from london. this is bbc news the chancellorjeremy the chancellor jeremy hunt the chancellorjeremy hunt has announced various measures and what he has described as an autumn statement for growth. the most noteworthy measure was the main national insurance rate, which will be cut by two percentage points,

from 12%, down to 10%, from the 6th of january, from 12%, down to 10%, from the 6th ofjanuary, with from 12%, down to 10%, from the 6th of january, with some from 12%, down to 10%, from the 6th ofjanuary, with some new emergency legislation. the chancellor said that workers on the average salary would save around £450 per year. he said that around 2 million self—employed people, they will benefit from the axing of class to national insurance, and a cut to the class four national insurance, down to 8%, which could save them £350 per year. to 8%, which could save them £350 peryear. it to 8%, which could save them £350 per year. it also announced that the state pension will go up by 8.5% from april of 2024, up to £221t per week. he promised to honour the triple lock in full. the chancellor also confirming that universal credit and disability benefits will rise by 6.7% in line with september's inflation rate. there was speculation he would choose the october rate, which was lower, but that did not happen. he said welfare recipients that do not find a job with an 18 months will be forced to

undertake work experience, under plans to get more people into employment. he said there was that don't comply with the rules will have benefits, including access to things like free prescriptions, legal aid, they will be cut off. he said businesses are set to benefit from the announcement, but is making full expensing for businesses permanent. that means for every £1 a business invests in things like it, machinery and equipment, they will get 25p back in corporation tax. he says that will cost £11 billion per year. that represents the biggest business tax cut in modern british history. also today, good news for those on lower incomes. the national living wage will rise byjust over £1, up to £11.44 per hour. that will start in april. importantly, it will also be extended to cover all workers aged 21 and over for the first time, rather than previously those that were aged 23 and over. he

also told mps that alcohol duty will be frozen until the 1st of august next year, that means no increase in duty on beer, cider, wine or spirits, but the tobacco duty, that will increase. with the story of the day, let's find out what was announced by the chancellor in the autumn statement, with this report from damian grammaticas. tax cuts. if few weeks ago, he said they were virtually impossible. now he says we can afford them. share they were virtually impossible. now he says we can afford them. are you bein: he says we can afford them. are you being honest — he says we can afford them. are you being honest with _ he says we can afford them. are you being honest with the _ he says we can afford them. are you being honest with the public- he says we can afford them. are you being honest with the public about i being honest with the public about the state of the economy?- the state of the economy? jeremy hunt has some _ the state of the economy? jeremy hunt has some good _ the state of the economy? jeremy hunt has some good news - the state of the economy? jeremy hunt has some good news he i the state of the economy? jeremy i hunt has some good news he wants to trumpet. the bank of england has driven inflation down, it has halved this year. now the chancellor says it is time to try to get the economy growing. tit it is time to try to get the economy curowin. ., ,�* it is time to try to get the economy curowin. ., ~ ,,., growing. in today's autumn statement for arowth, growing. in today's autumn statement for growth. our — growing. in today's autumn statement for growth, our choice _ growing. in today's autumn statement for growth, our choice is _ growing. in today's autumn statement for growth, our choice is not _ growing. in today's autumn statement for growth, our choice is not big i for growth, our choice is not big government, high spending and high

tax, because we know that leads to less growth, not more. instead, we reduce debt, cut taxes and reward work. he reduce debt, cut taxes and reward work. ., ., . , work. he announced under the triple lock, the state _ work. he announced under the triple lock, the state pension _ work. he announced under the triple lock, the state pension will - work. he announced under the triple lock, the state pension will go i work. he announced under the triple lock, the state pension will go up . lock, the state pension will go up by over 8% next year. many benefits, up by over 8% next year. many benefits, up by by over 8% next year. many benefits, up by more than 6%. i’m by over 896 next year. many benefits, up by more than 6%.— by over 896 next year. many benefits, up by more than 696.— up by more than 696. i'm going to go further and — up by more than 696. i'm going to go further and cut _ up by more than 696. i'm going to go further and cut the _ up by more than 696. i'm going to go further and cut the main _ up by more than 696. i'm going to go further and cut the main rate - up by more than 696. i'm going to go further and cut the main rate of - further and cut the main rate of employee national insurance by two percentage points, from 12%, down to 10%. it percentage points, from 1296, down to 1096. ., ., ., ., percentage points, from 1296, down to 10%. a, a, a, a, a, , a, 1096. it mean someone on a salary of £35,000 per— 1096. it mean someone on a salary of £35,000 peryear— 1096. it mean someone on a salary of £35,000 per year would _ 1096. it mean someone on a salary of £35,000 per year would save - 1096. it mean someone on a salary of £35,000 per year would save over i £35,000 per year would save over £450. to encourage businesses to invest, he is making a temporary scheme permanent, it allows the cost of any upgrades, computers, machinery and the like to be deducted from profits before they are taxed. i deducted from profits before they are taxed. . ~ are taxed. i will make full expensing _ are taxed. i will make full expensing permanent, i are taxed. i will make full| expensing permanent, the are taxed. i will make full- expensing permanent, the largest business tax cut in modern british history. fin business tax cut in modern british histo . ., , ., ., , history. on top of that, they will be no increase _ history. on top of that, they will be no increase on _ history. on top of that, they will be no increase on duty - history. on top of that, they will be no increase on duty on - history. on top of that, they will be no increase on duty on beer, | history. on top of that, they will - be no increase on duty on beer, wine or spirits. be no increase on duty on beer, wine orspirits. his be no increase on duty on beer, wine or spirits. his issue is how voters

are feeling. living standards are still forecast to fall, interest rates are over 5%, and inflation at almost the same, still biting. lilsed almost the same, still biting. used to net almost the same, still biting. used to get seven _ almost the same, still biting. used to get seven for _ almost the same, still biting. used to get seven for it _ almost the same, still biting. used to get seven for it is _ almost the same, still biting. used to get seven for it is four. - almost the same, still biting. iiflr to get seven for it is four. hard for the customer and hard for us. the government hope is that a tax cut can lift some of the gloom. before, we paid 300, now it is more than £2000. i5 before, we paid 300, now it is more than £2000-— than £2000. is at the right time for tax cuts? under— than £2000. is at the right time for tax cuts? under the _ than £2000. is at the right time for tax cuts? under the government, i than £2000. is at the right time for. tax cuts? under the government, tax has one tax cuts? under the government, tax has gone up — tax cuts? under the government, tax has gone up to _ tax cuts? under the government, tax has gone up to record _ tax cuts? under the government, tax has gone up to record levels, - tax cuts? under the government, tax has gone up to record levels, partly l has gone up to record levels, partly because rishi sunakfroze has gone up to record levels, partly because rishi sunak froze the entry point at which it is paid. the column shows what an average worker earns, £29,000 last year. above the dotted line is what you pay tax on. this year, that work at get over £30,000. inflation has pushed up wages. since the personal allowance, the black dotted line has not shifted and the government is taxing

over £3000 more of your income. rachel reeves. the over £3000 more of your income. rachel reeves.— over £3000 more of your income. rachel reeves. the total amount of tax the government _ rachel reeves. the total amount of tax the government was _ rachel reeves. the total amount of tax the government was taking - rachel reeves. the total amount of| tax the government was taking from the economy is still growing, as labour immediately pointed out. going into this statement, the government had already put in place tax increases worth the equivalent of a iop increase in national insurance. so today's cut will not remotely compensate for the tax increases already put in place by this conservative government. what this conservative government. what jerem this conservative government. what jeremy hunt — this conservative government. what jeremy hunt did _ this conservative government. what jeremy hunt did not _ this conservative government. what jeremy hunt did not say _ this conservative government. what jeremy hunt did not say is that official figures jeremy hunt did not say is that officialfigures for how jeremy hunt did not say is that official figures for how much the economy may grow next year and the year after have been revised down. does anything in britain work better today than when the conservatives came into office 13 years ago? we all know that working people are worse off under the conservatives. with growth down, mortgages up, prices are up, taxes up, debt is up, and, mr speaker, theirtime is

prices are up, taxes up, debt is up, and, mr speaker, their time is up. mr hunt was appointed chancellor by liz truss, to clear up after her disastrous mini budget. today, the government hope is a corner, economically and in the polls, can be turned. we will talk about some of the announcements injust a we will talk about some of the announcements in just a second with our political correspondent. as well as the tax and spending plans, we also have forecasts for how the economy will fare in the years ahead. during the speech, the chancellor revealed the latest forecast. these are from the independent office for budget responsibility. let me run you through the numbers. they have downgraded their forecasts. they say the economy will only grow by 0.6% this year, and by 0.7% next year. they have also said that inflation is forecast to fall, it will fall to 2.8%, they say, by the end of next year, falling to 2%, that is the target. but it won't do that until the year 2025. the office for budget

responsibility also forecast that debt, underlying debt, will be 91.6% of gdp. that is the value of everything our economy does next year, before rising again, it will go year, before rising again, it will 9° up year, before rising again, it will go up to 92.7% between 24—25. with me now as our political correspondent, and there is a lot to get through. let's start with what the chancellor hopes will be a headline grabbing announcement, the tax cuts. we had from rachel reeves and we have heard from others today, it is not really a tax cut. just explain. it is not really a tax cut. just exlain. ., . , it is not really a tax cut. just exlain. ., , , , explain. to her reasons why it is not really _ explain. to her reasons why it is not really a _ explain. to her reasons why it is not really a tax _ explain. to her reasons why it is not really a tax cut, _ explain. to her reasons why it is not really a tax cut, one - explain. to her reasons why it is not really a tax cut, one is - explain. to her reasons why it is not really a tax cut, one is that. not really a tax cut, one is that the office for budget responsibility, which has been publishing a separate document alongside the statement, they say we will still have one of the highest tax burdens in recent memory. over the course of the parliament. so, taxes are still at record highs, they are still going to be high despite the cuts to national insurance. the other reason is that we have got this threshold, the

freezing of the income tax threshold, which has not been undone, whichjeremy hunt could have undone, whichjeremy hunt could have undone, he could have unfrozen them but he didn't. the freeze goes ahead. it takes more people into different tax bands as their wages increase to compensate for high inflation. that did not get undone. more people paying tax. by 2028, it would be raising about £1i5 billion per year, just from those freezing of the thresholds. people are still paying more tax, but they are getting a tiny bit of a refund in the way of national insurance cuts, which will come in from january. it will feel like tax cuts have kind of reduced slightly, but going from a higher base than we have for some time. , ., , . . , time. the thresholds are really interesting- — time. the thresholds are really interesting. no _ time. the thresholds are really interesting. no indication - time. the thresholds are really interesting. no indication they| time. the thresholds are really . interesting. no indication they will change any time soon. more people, as you said, are being dragged into paying tax. so the chancellor does nothing, and makes more for the treasury? nothing, and makes more for the treasu ? ., . ., ., , treasury? you have got more people -a in: tax, treasury? you have got more people paying tax. but _ treasury? you have got more people paying tax. but he — treasury? you have got more people paying tax, but he has _ treasury? you have got more people paying tax, but he has given... - treasury? you have got more people paying tax, but he has given... you | paying tax, but he has given... you know, it is a giveaway, to give

people a tax break in terms of national insurance contributions, businesses were also given quite a big tax break in the form of something called full expensing, where you are able to offset investment in capital against profits. ultimately, they pay less tax because they can count their investments, they can take it away from their profits. these were to make a big tax breaks that is going to cost the treasury money. but they are gambling on the business side, certainly, that it is going to prompt growth in the longer term. there is a lot in here that is basically gambling that these measures, now, are going to stimulate growth in the future, so that a lot of business targeted measures like the full expensing, the thing about freezing business rates, cuts to national insurance contributions, specifically for the self—employed, lots of things that are targeted to try to get businesses investing, even some of the measure is about getting people back into work, it is all designed to get people into work, boost the workforce and boost the economy.

this is a longer term prospect, as well as a shorter term prospect, as well as a shorter term prospect, as well as a short—term giveaway. well as a shorter term prospect, as well as a short-term giveaway. there are a lot of — well as a short-term giveaway. there are a lot of assumptions _ well as a short-term giveaway. there are a lot of assumptions in _ well as a short-term giveaway. there are a lot of assumptions in the - are a lot of assumptions in the numbers, because we were talking earlier about what wiggle room, what room for manoeuvre the chancellor might have to offer giveaways before the general election. if we look at the general election. if we look at the growth figures from the obr, they are pretty damning. it's not a recession, but it's not growth. exactly, not as high as they previously thought. they have been downgraded from their earlier forecast in march, and we were talking earlier about how you have to be careful about assuming inevitability of these things in the assumptions, and some of the details coming out in the budget or responsibility document are quite interesting. some of the wiggle room we are talking about is funded by a real term squeeze on departmental spending. we know now that departmental budgets, the ones that are not ring fenced, are going to be squeezed in real terms, and spending is going to fall in real terms, and there is an assumption, for example, about fuel duty going up, which we

know has been frozen successfully. there is a lot of smoke and mirrors in the announcements, but there is no doubt there are giveaways. interesting to see that pensioners are still going to get their pensions rising in line with the higherfigure. there had been speculation it could be downgraded. again, targeting an increase in benefits, in line with higher inflation figures. you know, he is trying to say, look, i am giving something to everybody, again, with one eye on a broad base ahead of a possible election. but it's very interesting that there is a lot of wing under prayer, assuming a lot of growth can come out of some of the measures designed to increase productivity the future, to ultimately pay for this. particularly things like getting people back into work. as always, the detail and the interesting stuff is perhaps what we didn't hear. lots of things speculated about, but we did not hear about inheritance tax. that was rumoured to be a potential cut. we didn't hear anything about housing or help for first—time buyers. nothing like isas saving

rates, nothing on income tax. one would wonder if we make you more about this closer to a possible election, may be injanuary or february? election, may be in january or february?— election, may be in january or februa ? , ., ., , february? there is no doubt said thins february? there is no doubt said things had _ february? there is no doubt said things had been _ february? there is no doubt said things had been held _ february? there is no doubt said things had been held back- february? there is no doubt said things had been held back to - february? there is no doubt said things had been held back to the j things had been held back to the further sweeteners, closer to the time of an election. you've got a budget in the spring, that could be either very close to an election in may or another election later in the year. there is definitely going to be stuff that is held back. nothing on inheritance tax, nothing on stamp duty. of course, the thought there is where that is targeted, who are the voters you are trying to win over with those sorts of policies? nothing on the nhs, nothing on spending for schools. i think a lot of the emphasis and certainly the message to government was trying to get across was that this is all about working age people, they are getting the benefit of that. the benefits policies, starting to mandate people for mandatory work programmes, if they have been out of work for 18 months, and then reducing benefits altogether if they haven't accepted work after six

months. quite controversial policies, no doubt they will come in for some criticism. that is all about getting people into work. the childcare policy that had already been announced, jeremy hunt referenced that, it's all about getting people into work. the idea of boosting the workforce is ultimately going to increase growth in the longer term. i think that was the focus today. we will see how all of these policies unravel and if they have any impact at all in the next six months, and what ground is prepared for further tax cuts. it prepared for further tax cuts. it will be so interesting. thank you for running us through that. we have talked about what was announced and what wasn't announced. but what difference could it make for your own finances at home? let's talk to mr money jar own finances at home? let's talk to mr moneyjar a content creator and mr money jar a content creator and podcast mr moneyjar a content creator and podcast host. good news if you are on the minimum wage, and a cut in

national insurance contributions. what did you make of what you heard from the chancellor today? thank you for havin: from the chancellor today? thank you for having me- — from the chancellor today? thank you for having me. as _ from the chancellor today? thank you for having me. as you _ from the chancellor today? thank you for having me. as you said, _ from the chancellor today? thank you for having me. as you said, we - from the chancellor today? thank you for having me. as you said, we saw. from the chancellor today? thank you for having me. as you said, we saw a| for having me. as you said, we saw a decrease in the rate of national insurance, by two percentage points, from 12%, down to 10%. it is expected to save the average worker £450 per year. like last year, we also saw increases to the national living wage state pensions and benefits. i also think the introduction of an australian style pot for life will help to resolve some of the issues around the 27 billion or so of lost pension money. the thing is, i'm trying to translate the decrease in the national insurance tax rate into real terms. £450 over the course of a year is £8.55 per week. i don't really see that as it the needle on day—to—day expenses. £37.50 per

month is half a grocery shop, at best. ., , month is half a grocery shop, at best. . , ., best. that is what we were discussing _ best. that is what we were discussing with _ best. that is what we were discussing with our - best. that is what we were discussing with our little i discussing with our little correspondence, because of the fiscal drag, a terrible phrase, it means more of us are paying tax, because the thresholds at which you start paying tax have not changed for a long time, and as wages go up, more of us are put into new tax brackets. and that is cancelling out anything the chancellor offered today? anything the chancellor offered toda ? ~ , ~ anything the chancellor offered today? absolutely. with income tax s-ends today? absolutely. with income tax spends frozen _ today? absolutely. with income tax spends frozen until— today? absolutely. with income tax spends frozen until 2028, _ today? absolutely. with income tax spends frozen until 2028, it - today? absolutely. with income tax spends frozen until 2028, it means| spends frozen until 2028, it means we will be paying back more tax overall. if i could be really honest, listening to the autumn statement today, it was a bit like waiting for a sneeze that never comes, there were things i was expecting to hear around increasing the isa allowance, reforming the lifetime i won, and changes to income tax, and none of that came. i agree with some of the commentary, some of the conversations you have a before, that may be stuff was being

held back to the spring budget, but