delivering our promise to £3000. delivering our promise to fully equalise the income tax threshold, and not incrementally over many years, but in one go, this year. from thisjuly, people will be able to earn £12,570 a year without paying a single penny of income tax or national insurance! that is a £6 billion personal tax cut for 30 million people across the united kingdom. a tax cut for employees worth over £330 a year. the largest increase in a basic rate threshold ever and the largest single personal tax cut in a decade. the institute for fiscal studies has

called it the best way to help low and middle earners through the tax system. it creates what the centre for studies has called a universal working income. it is a tax cut that rewards work. and mr speaker, mr speaker, around 70% of all workers will have their taxes cut by more than the amount they will pay through the new levy. 0nce than the amount they will pay through the new levy. once again showing it is this conservative government delivering for hard—working families and helping with the cost of living. so mr speaker, the first part of our tax plan for a stronger economy is to support families through the cost of living, but as i set out in last month's may�*s lecture, we need the private sector to train, invest and

innovate more. people, capital, ideas, that's how we will create a new culture of enterprise, the second part of our tax plan. the plan sends out tax—cutting options on investment and innovation with final decisions to be announced in the autumn budget, but these are complex questions so we will work with businesses over the summer to get the answers right. let me explain to the house the direction of travel. first, people. we lack international peers and technical skills. 18% of 25 to 64—year—olds, hold qualifications, a third lower than the 0ecd average. so we will consider whether the current tax system, including the operation of the apprenticeship levy, is doing enough to incentivise businesses to invest in the right kinds of training. second, ideas. 0verthe

last 50 years, innovation drove around half the uk's productivity growth, but since the financial crisis, the rate of increase has slowed more than in other countries and our lower rate of innovation explains almost all our productivity gap with the united states. right now, we know that the amount businesses spend on research and development as a percentage of gdp is less than half the 0ecd average. that is despite us spending more on tax reliefs than almost any other country. something is not working. so we will reform rnd credit so they are effective and better value for money, —— r&d, and we will consider in the autumn weather to make the r&d expenditure credit more generous. third, capital. weak private sector investment is a long—standing cause of our

productivity gap internationally. capital investment by uk businesses is considerably lower than the 0ecd average of 14% and it accounts for half our productivity gap with france and germany. 0nce half our productivity gap with france and germany. once the super deduction ends next year, our overall tax treatment for capital investment will be far less generous than other advanced economies. we are going to fix that. in the autumn budget, we will cut the tax rate on business investment and i look forward to discussing the best ways to do that with businesses. people, capital, ideas. three priorities for business tax cuts this autumn. mr speaker, i want to help smaller businesses right now, so let me remind the house of our plan. 0ur remind the house of our plan. our business rate discount will take effect in april for retail, hospitality and leisure businesses. they will get a 50% discount on their business rates bill up to

£110,000. a typical pub will save £5,000. that is a tax cut for hundreds of thousands of small businesses worth £1.7 billion, taking effect in just one week. our help to grow management scheme offers businesses a benefit worth several thousand pounds. help to grow digital gives discount on buying new software up to £5,000. we have also increased the annual investment allowance to £1 million so businesses will feel the benefit. but mr speaker, i want to respond to their specific calls from small businesses with one further announcement today. the employment allowance cuts small businesses tax bills making it cheaper to employ workers. in my first budget two years ago, i increased that allowance. today i'm going further.

from april, the employment allowance will increase to £5,000, that is a new tax cut worth up to £1000 for half a million small businesses starting injust half a million small businesses starting in just two weeks�* time. mr speaker, future tax cuts on business and innovation, a business rate discount worth £1.7 billion, helped to grow schemes and an annual investment allowance worth up to £1 million and a new tax cut on the cost of employment worth £1000 per company. 0nce cost of employment worth £1000 per company. once again mr speaker, it is this conservative government delivering for british business. mr speaker, the tax plan i have announced today will help people and businesses deal with rising costs. we�*ll help raise the future growth rate of this country, but we want the proceeds of growth shared

fairly. the third objective of our tax plan. the knowledge you can keep more of what you earn is a powerful incentive for people to work hard. it means greater economic security, and we know that individuals spend their money better than governments do. we have already announced today the equalisation of personal tax thresholds giving over 30 million workers a tax cut worth over £330, and over time i want to go further. but tax cuts must be paid for, they must be prioritised and they must fit the economic circumstances of the time. a clear goal for conservative chancellors and even some labour ones has been to cut income tax. the fact this has happened only twice in 20 years tells you how hard it is to do.

covid and the war in ukraine have only added to the difficulty of achieving this by the end of this parliament. i am sure all members of this house recognise and understand those challenges. it would clearly be irresponsible to meet this ambition this year, and yet i refuse to let that ambition wither and drift. by 2024, the obr to let that ambition wither and drift. by 2024, the 0br currently expect inflation to be back under control. debt falling sustainably and the economy growing. 0ur fiscal rules are met with a clear margin of safety, and so my final announcement todayis safety, and so my final announcement today is this... i can confirm before the end of this parliament, in 2024, for the first time in 16 years, the basic rate of income tax will be cut from 20 to 19p in the

pound. a tax cut for workers, pensioners and savers. a £5 billion tax cut 30 million people. let me be clear with the house, it is fully costed and fully paid for in the plans announced today. last year, i told the house i would cut taxes for hard—working families but i would do so in a responsible and sustainable way. and today, i am delivering on that promise. so let me say this, cutting taxes is not easy. it requires hard work, prioritisation and a willingness to make difficult and a willingness to make difficult and often unpopular arguments elsewhere. it is only because this government has been prepared to make those difficult but responsible choices to fix our public finances that i can stand here and tell this

house that not only are taxes being cut but the debt is also falling whilst public spending is increasing. this doesn�*t happen by accident, mr speaker, we can deliver for the british people today and into the future because unlike the party opposite, we have a plan. a plan that reforms and improved public services, a plan to grow our economy, a plan to level up across the united kingdom, a plan that helps families with the cost of living, and yes, a tax plan that cuts taxes on working families by over 330 pounds, cuts taxes on fuel by 5p a litre, cuts taxes on business and for the first time in a long time, but is income tax. —— cuts income tax. my tax plan

delivers the biggest cut in over a quarter of a century and i commend it to this house. studio: rishi sunak sitting down, a dramatic end, the rabbit out of the hat is a cut in the basic rate of income tax from 20 to 19p by the end of the parliament. let�*s listen to rachel reeves, the shadow chancellor, who will take to her feetin chancellor, who will take to her feet in just a moment.- chancellor, who will take to her feet in just a moment. thank you, mr seaker. feet in just a moment. thank you, mr speaker- today _ feet in just a moment. thank you, mr speaker. today was _ feet in just a moment. thank you, mr speaker. today was the _ feet in just a moment. thank you, mr speaker. today was the day - feet in just a moment. thank you, mr speaker. today was the day the - speaker. today was the day the chancellor could have put a windfall taxm _ chancellor could have put a windfall taxm to _ chancellor could have put a windfall tax... to provide real help to families _ tax... to provide real help to families. but he didn't. today was the day— families. but he didn't. today was the day the — families. but he didn't. today was the day the chancellor could have set out _ the day the chancellor could have set out a — the day the chancellor could have set out a proper plan to support businesses and create good jobs. but he didn't _ businesses and create good jobs. but he didn't. today was the day that he could _ he didn't. today was the day that he could have _ he didn't. today was the day that he could have properly scrapped his hationat— could have properly scrapped his national insurance hike, but he

didn't — national insurance hike, but he didn't we _ national insurance hike, but he didn't. we said it was the wrong tax at the _ didn't. we said it was the wrong tax at the wrong time, the wrong choice. today— at the wrong time, the wrong choice. today the _ at the wrong time, the wrong choice. today the chancellor has finally admitted he got that one wrong. inflation— admitted he got that one wrong. inflation is at its highest level for 30 — inflation is at its highest level for 30 years and rising. energy prices — for 30 years and rising. energy prices at — for 30 years and rising. energy prices at record highs, people are worried _ prices at record highs, people are worried sick. for all his words, it is clear— worried sick. for all his words, it is clear the — worried sick. for all his words, it is clear the chancellor does not understand the scale of the challenge. he talks about providing security— challenge. he talks about providing security for working families, but his choices — security for working families, but his choices are making the cost of living _ his choices are making the cost of living crisis— his choices are making the cost of living crisis worse, not better. mr speaker, — living crisis worse, not better. mr speaker, the situation following putih's— speaker, the situation following putin's criminal assault on ukraine remains _ putin's criminal assault on ukraine remains gravely serious. just one month— remains gravely serious. just one month after the invasion, so much has changed with repercussions for years— has changed with repercussions for years to _ has changed with repercussions for years to come. but the chancellor

has failed — years to come. but the chancellor has failed today to explain why he chose _ has failed today to explain why he chose to _ has failed today to explain why he chose to sign off on a reduction in our country's _ chose to sign off on a reduction in our country's armed forces last 0ctoher~ — our country's armed forces last october. will the chancellor confirm if the _ october. will the chancellor confirm if the government's target army size is stilt— if the government's target army size is still being reduced by 10,000 troops? — is still being reduced by 10,000 troops? and let me say this to the chancellor, — troops? and let me say this to the chancellor, labourwill troops? and let me say this to the chancellor, labour will support whatever — chancellor, labour will support whatever is needed on defence and security— whatever is needed on defence and security to — whatever is needed on defence and security to keep our country safe. mr speaker, the tremors following putih's_ mr speaker, the tremors following putin's aggression will impact on britain _ putin's aggression will impact on britain including economically, but the cost _ britain including economically, but the cost of— britain including economically, but the cost of living crisis predates putih's— the cost of living crisis predates putin's attack on ukraine. in october. _ putin's attack on ukraine. in october, inflation was already forecast — october, inflation was already forecast to be double the bank of england's— forecast to be double the bank of england's targets, and yet the prime mirrister— england's targets, and yet the prime minister said fears of inflation were — minister said fears of inflation were unfounded. today we learned that inflation has reached 6.2% and is expected to go higher in the

coming — is expected to go higher in the coming months. people are rightly looking _ coming months. people are rightly looking to — coming months. people are rightly looking to their government to help them _ looking to their government to help them weather this storm. labour will support— them weather this storm. labour will support sensible measures to ease this pressure, but what the chancellor has announced today says everything _ chancellor has announced today says everything we need to know about his priorities _ everything we need to know about his priorities. the cost of living crisis — priorities. the cost of living crisis is _ priorities. the cost of living crisis is hitting people particularly hard because income has been squeezed during the last 12 years— been squeezed during the last 12 years of— been squeezed during the last 12 years of conservative governments. ordinary— years of conservative governments. ordinary families, disabled people, pensioners facing really difficult choices — pensioners facing really difficult choices. mothers are skipping meals so that— choices. mothers are skipping meals so that their children don't. families _ so that their children don't. families are struggling to buy new school— families are struggling to buy new school shoes and uniforms for their chiidreh _ school shoes and uniforms for their children. older people hesitating to put children. older people hesitating to out their— children. older people hesitating to put their heating on because they are worried about the cost. at the weekend, — are worried about the cost. at the weekend, the chancellor was asked about— weekend, the chancellor was asked about fuel— weekend, the chancellor was asked about fuel poverty and he didn't even _ about fuel poverty and he didn't even know the numbers. it is shameful— even know the numbers. it is shameful that he doesn't because when _ shameful that he doesn't because when martin lewis predicts that 10

million _ when martin lewis predicts that 10 million people could be pushed into fuel poverty, the chancellor should sit up _ fuel poverty, the chancellor should sit up and — fuel poverty, the chancellor should sit up and listen. and we know that pensions _ sit up and listen. and we know that pensions and security are not going to keep _ pensions and security are not going to keep up — pensions and security are not going to keep up with inflation. pensioners and those on social security— pensioners and those on social security will be getting a real terms — security will be getting a real terms cut in their incomes, so what analysis— terms cut in their incomes, so what analysis has— terms cut in their incomes, so what analysis has the chancellor done on the impact — analysis has the chancellor done on the impact of benefits being operated by less than inflation? how marry— operated by less than inflation? how marry more _ operated by less than inflation? how many more children and pensioners will many more children and pensioners wiit drift— many more children and pensioners will drift into poverty because of the choices of this government? and who does— the choices of this government? and who does the chancellor prioritise? he continues to defend the record profits— he continues to defend the record profits of— he continues to defend the record profits of oil and gas producers, who themselves admit they have more money— who themselves admit they have more money than _ who themselves admit they have more money than they know what to do with _ bp describes this crisis as a cash machine — bp describes this crisis as a cash machine for— bp describes this crisis as a cash machine for them but it is british people _ machine for them but it is british people who are paying out, and it is deepiy— people who are paying out, and it is deeply regrettable that the snp have joined _ deeply regrettable that the snp have joined the tories in wanting to

shield — joined the tories in wanting to shield oil— joined the tories in wanting to shield oil and gas producers from labour's — shield oil and gas producers from labour's progressive measures. when i set labour's progressive measures. when i set out _ labour's progressive measures. when i set out... when i set out labour's piahs _ i set out... when i set out labour's plans for— i set out... when i set out labour's plans for a — i set out... when i set out labour's plans for a windfall tax in january, we estimated that it would have raised _ we estimated that it would have raised £1.2 billion. now, because of the continued rise in global oil and -as the continued rise in global oil and gas prices, — the continued rise in global oil and gas prices, it would today raise over— gas prices, it would today raise over £3— gas prices, it would today raise over £3 billion. that is money that could _ over £3 billion. that is money that could be _ over £3 billion. that is money that could be used to help families and pensioners and businesses, with a cut to _ pensioners and businesses, with a cut to vat. — pensioners and businesses, with a cut to vat, a real brexit dividend that would — cut to vat, a real brexit dividend that would help working families and pensioners across our country. and a targeted _ pensioners across our country. and a targeted war— pensioners across our country. and a targeted war homes discount that would _ targeted war homes discount that would see families and pensioners on the lowest _ would see families and pensioners on the lowest and modest incomes being supported _ the lowest and modest incomes being supported by £600. today the chancellor comes along, after 12

years— chancellor comes along, after 12 years of— chancellor comes along, after 12 years of failure on energy efficiency, and announces a vat cut on building — efficiency, and announces a vat cut on building materials. this is wholly— on building materials. this is wholly inadequate. a proper energy efficiency _ wholly inadequate. a proper energy efficiency scheme, like the one we have set _ efficiency scheme, like the one we have set out, could cut bills by £400, — have set out, could cut bills by £400, to — have set out, could cut bills by £400, to people from next year. and the silence _ £400, to people from next year. and the silence from the chancellor on our energy— the silence from the chancellor on our energy intensive manufacturing industries _ our energy intensive manufacturing industries is appalling. at this time — industries is appalling. at this time of— industries is appalling. at this time of national crisis, people and businesses — time of national crisis, people and businesses need a government that is on their— businesses need a government that is on their side. the chancellor spoke of difficult — on their side. the chancellor spoke of difficult choices, and i agree, there _ of difficult choices, and i agree, there are — of difficult choices, and i agree, there are always choices to be made. like hutu _ there are always choices to be made. like hutu tax and who to shield. despite — like hutu tax and who to shield. despite his reluctant measures, the facts are _ despite his reluctant measures, the facts are that he is still taking money— facts are that he is still taking money out of people's purses and watiets _ money out of people's purses and wallets with an increase in national ihsurahce _ wallets with an increase in national insurance contributions. the changes he is making — insurance contributions. the changes he is making today begs the question, why did he embark on these

changes— question, why did he embark on these changes in— question, why did he embark on these changes in the first place despite the warnings from the labour party and from _ the warnings from the labour party and from many others? it is one thing _ and from many others? it is one thing for— and from many others? it is one thing for the prime minister and chancellor to disagree with each other _ chancellor to disagree with each other. but the centrepiece of the statement of the chancellor has delivered today is based on a disagreement with himself. and for all his— disagreement with himself. and for all his tax— disagreement with himself. and for all his tax rising, and millions in the middle, where is the increased tax contribution for the very wealthiest in society? a landlord a large _ wealthiest in society? a landlord a large number of properties will not be paying — large number of properties will not be paying a penny more in taxes, but theirtenants— be paying a penny more in taxes, but their tenants will appoint someone with significant income from buying and selling stocks and shares will not pay _ and selling stocks and shares will not pay any more in tax but those people _ not pay any more in tax but those people powering our economy will. the chancellor has made the wrong choices _ the chancellor has made the wrong choices. the chancellor says we cannot — choices. the chancellor says we cannot help everyone, and that is absolutely — cannot help everyone, and that is

absolutely true. but who has the chancellor been helping out? those who have _ chancellor been helping out? those who have been swindling the taxpayer. the chancellor left open the vaults — taxpayer. the chancellor left open the vaults for widespread waste, crony— the vaults for widespread waste, crony contracts, and a frenzy of fraud — crony contracts, and a frenzy of fraud it — crony contracts, and a frenzy of fraud. it was, as is former tory treasury— fraud. it was, as is former tory treasury minister put it, happy days if you _ treasury minister put it, happy days if you are _ treasury minister put it, happy days if you are a — treasury minister put it, happy days if you are a crook. 7 billion items are ppe — if you are a crook. 7 billion items are ppe not _ if you are a crook. 7 billion items are ppe not usable and now being burned _ are ppe not usable and now being burned. taxpayer money literally going _ burned. taxpayer money literally going up— burned. taxpayer money literally going up in smoke. £3.5 billion worth— going up in smoke. £3.5 billion worth of— going up in smoke. £3.5 billion worth of contracts awarded to friends, — worth of contracts awarded to friends, donors and public landlords, and it gets worse. the chancetior— landlords, and it gets worse. the chancellor has been signing cheques to fraudsters, including organised criminais — to fraudsters, including organised criminals and drug dealers. let's put the _ criminals and drug dealers. let's put the chancellor's fraud failure in context — put the chancellor's fraud failure in context. he has lost a staggering £118— in context. he has lost a staggering £11.8 billion of in context. he has lost a staggering £118 billion of public money to

fraud — £118 billion of public money to fraud. this is twice the amount that a previous— fraud. this is twice the amount that a previous conservative government lost on — a previous conservative government lost on black wednesday. as a result of, lost on black wednesday. as a result of. tet's _ lost on black wednesday. as a result of, let's face it, thisjaw—dropping incompetence, the conservatives have been funding crime instead of fighting — been funding crime instead of fighting it. and now the chancellor has the _ fighting it. and now the chancellor has the audacity to come to british taxpayers. — has the audacity to come to british taxpayers, asking them to pay more to fitt— taxpayers, asking them to pay more to fill his _ taxpayers, asking them to pay more to fill his black hole. but there can be — to fill his black hole. but there can be no— to fill his black hole. but there can be no cover—up to hide political embarrassment. let's call in the nationat— embarrassment. let's call in the national crime agency to investigate. we need answers, people held to _ investigate. we need answers, people held to account, because let's be clear. _ held to account, because let's be clear, taxpayers want their money baci

forecast we have seen today should be flashing red on the chancellor's desk, _ be flashing red on the chancellor's desk, and — be flashing red on the chancellor's desk, and the chancellor says in his statement — desk, and the chancellor says in his statement that the work starts today — statement that the work starts today is — statement that the work starts today. is he serious? the conservatives have been in government now for 12 years, not 12 hours. — government now for 12 years, not 12 hours. what— government now for 12 years, not 12 hours. what has taken them so long? because _ hours. what has taken them so long? because since his party entered government, the uk has experienced the biggest downgrade in growth of any major— the biggest downgrade in growth of any major economy. with the last labour— any major economy. with the last labour government, economic growth was 2~i%_ labour government, economic growth was 2~i% a _ labour government, economic growth was 2.1% a year. under the last 12 years— was 2.1% a year. under the last 12 years of— was 2.1% a year. under the last 12 years of the — was 2.1% a year. under the last 12 years of the conservatives, it has averaged — years of the conservatives, it has averaged 15%. and now we know that growth _ averaged 15%. and now we know that growth has _ averaged 15%. and now we know that growth has been downgraded this year as wett~ _ growth has been downgraded this year as well. growth is essential for funding — as well. growth is essential for funding our public services, keeping taxes _ funding our public services, keeping taxes under control, and keeping a

handle _ taxes under control, and keeping a handle on — taxes under control, and keeping a handle on public finances as well. that is— handle on public finances as well. that is why— handle on public finances as well. that is why labour have announced a tough _ that is why labour have announced a tough set _ that is why labour have announced a tough set of — that is why labour have announced a tough set of fiscal rules to get our debt and — tough set of fiscal rules to get our debt and our deficit down. but the truth _ debt and our deficit down. but the truth is _ debt and our deficit down. but the truth is that because of this government's failure to get the economy— government's failure to get the economy growing, it is this chancellor who has to put up taxes on families— chancellor who has to put up taxes on families and businesses a staggering 15 times. this chancellor has raised _ staggering 15 times. this chancellor has raised taxes more in the last two years— has raised taxes more in the last two years than any previous chancellor in the last 50. he says it is att— chancellor in the last 50. he says it is all down to the pandemic but the truth — it is all down to the pandemic but the truth is — it is all down to the pandemic but the truth is the conservatives have become _ the truth is the conservatives have become the party of high taxation because _ become the party of high taxation because they are the party of low growth _ because they are the party of low growth i— because they are the party of low growth. i understand that the chancellor has a portrait of nigel lawson— chancellor has a portrait of nigel lawson above his desk. well, today we have _

lawson above his desk. well, today we have an — lawson above his desk. well, today we have an energy price crisis, record — we have an energy price crisis, record prices at the pumps, inftation _ record prices at the pumps, inflation is back. the truth is, he is not _ inflation is back. the truth is, he is not niget— inflation is back. the truth is, he is not nigel lawson, mr speaker, he is not nigel lawson, mr speaker, he is ted _ is not nigel lawson, mr speaker, he is ted heath! with an instagram account~ — is ted heath! with an instagram account. labourwould is ted heath! with an instagram account. labour would be getting the economy— account. labour would be getting the economy firing on all cylinders, ensuring — economy firing on all cylinders, ensuring that we buy, make and sell more _ ensuring that we buy, make and sell more in _ ensuring that we buy, make and sell more in britain, scrapping business rates _ more in britain, scrapping business rates and _ more in britain, scrapping business rates and replacing them with a fairer— rates and replacing them with a fairer system fit for the 21st century. _ fairer system fit for the 21st century, something that small businesses and high street businesses and high street businesses are crying out for and the chancellor mentioned it not at all in _ the chancellor mentioned it not at all in his— the chancellor mentioned it not at all in his statement today. a ciimate _ all in his statement today. a climate investment pledge to decarbonise the economy, create good 'obs decarbonise the economy, create good jobs in _ decarbonise the economy, create good jobs in every— decarbonise the economy, create good jobs in every part of britain, and strengthen our energy security as wett~ _ strengthen our energy security as well. businesses are seeing unprecedented increases in their costs— unprecedented increases in their costs right now, but all we hear from _ costs right now, but all we hear from this— costs right now, but all we hear

from this chancellor is a promise of 'am from this chancellor is a promise of jam tomorrow rather than the support that is— jam tomorrow rather than the support that is needed now. and today's statement lacks the long—term plan for productivity, skills and growth. where _ for productivity, skills and growth. where was — for productivity, skills and growth. where was it, chancellor? mr speaker, _ where was it, chancellor? mr speaker, i_ where was it, chancellor? mr speaker, i cannot help but feel that in both— speaker, i cannot help but feel that in both the — speaker, i cannot help but feel that in both the chancellor's recent mais iecture _ in both the chancellor's recent mais lecture and — in both the chancellor's recent mais lecture and his statement today, we are prevented with increasingly credibie — are prevented with increasingly credible claims. perhaps he has been taking _ credible claims. perhaps he has been taking inspiration from the characters in alice in wonderland, or should — characters in alice in wonderland, or should i— characters in alice in wonderland, or should i say, alice in sulek tand? — or should i say, alice in sulek land? because nothing here is quite as it seems — land? because nothing here is quite as it seems either —— in sunak land. it is as it seems either —— in sunak land. it is the _ as it seems either —— in sunak land. it is the sort— as it seems either —— in sunak land. it is the sort of— as it seems either —— in sunak land. it is the sort of place where a chancellor celebrates giving people £200 to _ chancellor celebrates giving people £200 to help them with their spiralling energy bills before explaining that he needs it all baci

white _ proclaims i believe in lower taxes white at _ proclaims i believe in lower taxes while at the same time as hiking alices— while at the same time as hiking atice's at— while at the same time as hiking alice's at national insurance contributions. so alice asks the chancellor wended lower taxes mean higher— chancellor wended lower taxes mean higher taxes? chancellor wended lower taxes mean highertaxes? has chancellor wended lower taxes mean higher taxes? has down really become the new— higher taxes? has down really become the new up? _ higher taxes? has down really become the new up? the chancellor follows humpty— the new up? the chancellor follows humpty dumpty's advice and says, when _ humpty dumpty's advice and says, when i _ humpty dumpty's advice and says, when i use — humpty dumpty's advice and says, when i use a word, it meansjust what _ when i use a word, it meansjust what i _ when i use a word, it meansjust what i choose it to mean, neither more _ what i choose it to mean, neither more nor— what i choose it to mean, neither more nor less. alice knows that under— more nor less. alice knows that under the — more nor less. alice knows that under the conservatives taxes are at their highest level in decades, as a result— their highest level in decades, as a result of— their highest level in decades, as a result of the policies of this very same _ result of the policies of this very same chancellor. in fact, this chancetior— same chancellor. in fact, this chancellor was the only 67 finance minister— chancellor was the only 67 finance minister to — chancellor was the only 67 finance minister to raise taxes on working people _ minister to raise taxes on working people during this crucial year of recovery — people during this crucial year of recovery. curiouser and curiouser. as aiice _ recovery. curiouser and curiouser. as alice climbs out of the rabbit hole to — as alice climbs out of the rabbit hole to leave sunak land, she recalled — hole to leave sunak land, she

recalled the words of the white rabbit— recalled the words of the white rabbit and concludes, that perhaps the chancellor's reality isjust different _ the chancellor's reality isjust different from yours. the actual reality. — different from yours. the actual reality. mr _ different from yours. the actual reality, mr speaker, is that this chancellor's failure to back a windfall— chancellor's failure to back a windfall tax and his stubborn desire to pursue _ windfall tax and his stubborn desire to pursue a — windfall tax and his stubborn desire to pursue a national insurance tax rise are _ to pursue a national insurance tax rise are the — to pursue a national insurance tax rise are the wrong choices. in eight days' _ rise are the wrong choices. in eight days' time, — rise are the wrong choices. in eight days' time, people's energy bills will be _ days' time, people's energy bills will be rising by 54%. two weeks today, _ will be rising by 54%. two weeks today, the — will be rising by 54%. two weeks today, the chancellor's latest tax hike witt— today, the chancellor's latest tax hike will start hitting working people — hike will start hitting working people and their employers. his nationat— people and their employers. his national insurance tax rise was a bad idea — national insurance tax rise was a bad idea last september and he has admitted _ bad idea last september and he has admitted it is an even worse one today _ admitted it is an even worse one today the — admitted it is an even worse one today. the chancellor is making an historic— today. the chancellor is making an historic mistake. today was a day to scrap _ historic mistake. today was a day to scrap the _ historic mistake. today was a day to scrap the tax — historic mistake. today was a day to scrap the tax rise onjobs, the day to bring _ scrap the tax rise onjobs, the day to bring forward a windfall tax, the day for _ to bring forward a windfall tax, the day for the — to bring forward a windfall tax, the day for the chancellor to set out a plan to _ day for the chancellor to set out a plan to support british businesses. but on _ plan to support british businesses. but on the — plan to support british businesses. but on the basis of the statement

today— but on the basis of the statement today and — but on the basis of the statement today and the misguided choices of this chancellor, families and businesses will from now on endure significant _ businesses will from now on endure significant hardship as a result. the chancellor has failed to appreciate the scale of the challenge that we face and yet again he is making the wrong choices for our country — he is making the wrong choices for our country. the he is making the wrong choices for our country-— our country. the chancellor of the exchequer- _ our country. the chancellor of the exchequer. studio: _ our country. the chancellor of the exchequer. studio: that - our country. the chancellor of the exchequer. studio: that was - our country. the chancellor of the i exchequer. studio: that was rachel reeves, exchequer. studio: that was rachel reeves. the — exchequer. studio: that was rachel reeves, the shadow _ exchequer. studio: that was rachel reeves, the shadow chancellor, - reeves, the shadow chancellor, sitting down and giving her response to rishi sunak�*s spring statement, never an easyjob to do. before we digest, and there�*s a lotto digester, you can see in a moment we have various statements and plans in front of our panel, laura kuenssberg, political editor, business editor simonjack, faisal business editor simon jack, faisal islam, business editor simonjack, faisal islam, economics editor, and we are joined by pauljohnson from the stewed for fiscal studies but before i come to you, i�*m going to go through a couple of measures —— the

institute for fiscal studies. the most eye—catching was the promise to cut the basic rate of income tax by 1p cut the basic rate of income tax by ip by cut the basic rate of income tax by 1p by the end of this parliament, so by 2024. national insurance thresholds, which we discussed, increased by £3000, which will equalise it with income tax allowance. is expected from a fuel duty cut by 5p per litre from 6pm this evening, and lasting for a year. in terms of what perhaps will be the most meaningful for households themselves, there seems to be a bit giving with one hand but are still going ahead with the national insurance rise next month of 1.25 percentage points for employees and employers. stilt]! of 1.25 percentage points for employees and employers. still going ahead with the _ employees and employers. still going ahead with the increase _ employees and employers. still going ahead with the increase but _ employees and employers. still going ahead with the increase but he - employees and employers. still going ahead with the increase but he is - ahead with the increase but he is taking the sting out of it,

critically for lower earners, by increasing quite significantly at the point at which you start to pay national insurance contributions, up to the same level as the income tax personal allowance, £12,500, at least from july meaning that people earning about 35— £36,000 per year will be a bit better off as a result of those two things, and if you earn more than that you will be worse off. but as we go further through time, because it is freezing that alongside the income tax personal allowance on the point at which you get, you start to get better off will come further down the distribution so it�*s good policy for that particular policy helping lower earners and will keep a big tax rise on the high earners. {line earners and will keep a big tax rise on the high earners.— on the high earners. one of the other dramatic— on the high earners. one of the other dramatic figures - on the high earners. one of the other dramatic figures is - on the high earners. one of the other dramatic figures is the . other dramatic figures is the inflation figure. the obr, office for budget responsibility, said on average 7.4% for the rest of this year. average 7.4% for the rest of this ear. , ., , ., ~

average 7.4% for the rest of this ear. , ., , .,~ ., ., , average 7.4% for the rest of this ear. ,., , ., ., year. yes, and eight peak towards 996 b the end year. yes, and eight peak towards 996 by the end of— year. yes, and eight peak towards 996 by the end of the _ year. yes, and eight peak towards 996 by the end of the year _ year. yes, and eight peak towards 996 by the end of the year and _ year. yes, and eight peak towards 996 by the end of the year and what - year. yes, and eight peak towards 996 by the end of the year and what they l by the end of the year and what they are also saying that when you take into account that and their protection is about earnings, this will be the worst year, in their words, for living standards since records began in 1956. which is a pretty extraordinary thing to say and critically strong words from the government independent public sector organisation, the office for budget responsibility. find organisation, the office for budget responsibility-_ responsibility. and that puts this cost of living _ responsibility. and that puts this cost of living crisis _ responsibility. and that puts this cost of living crisis as _ responsibility. and that puts this cost of living crisis as we - responsibility. and that puts this cost of living crisis as we have . cost of living crisis as we have discussed, to some context for millions of households. we can show you the other headlines of the figures at the beginning of rishi sunak�*s spring statement and he was very keen to route the uncertainty, or most of it, in the war in ukraine. having knocked off some of his figures and forecast from last year. the inflation forecast to average 7.4%, the uk growth expectation downgraded quite significantly to 3.8% this year. and

then hovering