this is a this is 3 politics live special this is a politics live special as the chancellorjeremy hunt prepares to announce massive spending cuts and tax rises in his autumn statement. joining me for this politics live autumn statement special... deputy political editor vicky young, economics editor faisal islam and business editor simonjack.

reporter: who is responsible for this mess, mr hunt? - the chancellor will say that britain must "face into the storm," as he seeks to restore britain's tarnished economic reputation with a big package of tax rises and spending cuts. it all comes admist a cost—of—living crisis. i am very concerned because we are now entering the winter months when heating costs rise. i think the biggest worry at the moment is the heating cost, the fuel cost. we'll have the statement in full at 11:30am, full analysis. plus, we'll be hearing from both the government and labour. welcome to this special programme. a big moment for the chancellor, jeremy hunt. he big moment for the chancellor, jeremy hunt-— jeremy hunt. he left number11 downin: jeremy hunt. he left number11 downing street _ jeremy hunt. he left number11

downing street a _ jeremy hunt. he left number11 downing street a short - jeremy hunt. he left number11 downing street a short while i jeremy hunt. he left number“ i downing street a short while ago. you will see he is carrying that green folder, not the big red box. this is not a full budget. still critically important, this autumn statement. it will also come alongside figures for the independent office for budget responsibility. you will remember they were not there when kwasi kwarteng stood up to deliver his ill—fated mini budget. jeremy hunt making his way to the house of commons. we are expecting him to stand up and around 25 minutes' time. he has only been chancellor since the 14th of october. he was brought in at a moment of political and economic crisis when liz truss was prime minister. rishi sunak, who took over, has kept him on. he has talked aboutjeremy hunt, eye watering decisions, horrible decisions that will be made but with compassion at its heart. we will

judge all of that when he stands up and delivered his statement. some of the political context of this. three prime ministers and four chancellors. jeremy hunt has softened us up to some extent. there are political reasons for that. while the this particular point? it is worth going back further than the mini budget. when rishi sunak stood up mini budget. when rishi sunak stood up and gave the autumn statement. he promised investment was growing and public finances were stabilising. the uk was growing faster than our major competitors. global issues like the wall and the energy crisis. we had another dimension, political turmoil. this extraordinary turnover of prime ministers and ministers, borisjohnson being ousted and ministers changing incredibly quickly. maybe decisions were not being made over the summer. then the moment when everything was clear and

there was a moment of stability and tranquillity. liz truss and kwasi kwarteng unleash the economic plan. it was jaw—dropping and caused economic turmoil. nowjeremy hunt is the man who has to restore economic stability and the reputation of the country. something the conservatives do prize, he has to keep markets and voters happy and the back benches as well. we voters happy and the back benches as well. ~ , ., ., well. we were sitting here not that lona aao, well. we were sitting here not that long ago. on _ well. we were sitting here not that long ago. on the — well. we were sitting here not that long ago, on the 23rd _ well. we were sitting here not that long ago, on the 23rd of _ well. we were sitting here not that i long ago, on the 23rd of september. the market turmoil, you were monitoring as it was happening pretty shortly after kwasi kwarteng had stood there and delivered the plan for growth. what is driving the decisions thatjeremy hunt with rishi sunak had already decided to do and they will unveil today? how much is about the event we uncovered and how much of it would we have had to have done anyway? this

and how much of it would we have had to have done anyway?— to have done anyway? this is a rescue budget. _ to have done anyway? this is a rescue budget. part _ to have done anyway? this is a rescue budget. part of - to have done anyway? this is a rescue budget. part of the - to have done anyway? this is a - rescue budget. part of the rhetoric has been _ rescue budget. part of the rhetoric has been about overturning what has been acknowledged by both current inhabitants of downing street as being _ inhabitants of downing street as being the mistake of the mini budget — being the mistake of the mini budget. i think they want to step back and — budget. i think they want to step back and say, the bigger think they are dealing with in terms of the economy— are dealing with in terms of the economy is in fact a massive energy shock _ economy is in fact a massive energy shock both— economy is in fact a massive energy shock. both of those things. usually weighted _ shock. both of those things. usually weighted towards the energy shock. that means the national energy bill is now— that means the national energy bill is now about 8% of the worse the borough — is now about 8% of the worse the borough economy, about 190 billion. it is normally 2%, it has quadrupled. that is worth the value of our— quadrupled. that is worth the value of our spending on the nhs. the carveout — of our spending on the nhs. the carveout of who pays the bill, will it he _ carveout of who pays the bill, will it he the — carveout of who pays the bill, will it be the government, households, companies — it be the government, households, companies of some description? that is kind _ companies of some description? that is kind of— companies of some description? that is kind of what we will get here to some _ is kind of what we will get here to some degree. we will be able to judge _ some degree. we will be able to judge as — some degree. we will be able to judge as well. in the obr forecast, which _ judge as well. in the obr forecast, which we _ judge as well. in the obr forecast, which we get finally... that

judge as well. in the obr forecast, which we get finally. . ._ judge as well. in the obr forecast, which we get finally... that was one ofthe which we get finally... that was one of the problems. _ which we get finally... that was one of the problems. we _ which we get finally... that was one of the problems. we will _ which we get finally... that was one of the problems. we will get - which we get finally... that was one of the problems. we will get a - which we get finally... that was one | of the problems. we will get a sense of the problems. we will get a sense of whether or — of the problems. we will get a sense of whether or not _ of the problems. we will get a sense of whether or not we _ of the problems. we will get a sense of whether or not we are _ of the problems. we will get a sense of whether or not we are back - of the problems. we will get a sense of whether or not we are back to - of whether or not we are back to normai— of whether or not we are back to normal after the mini budget. interesting about being back to normal. is there a sense there could be in either correction? is there a sense from some conservative mps, i worry that perhaps the forecasts are not as dire as people are expecting them to bna could go too far? i them to bna could go too far? i think some of the green pitch roiling — think some of the green pitch rolling we have had refers to the post—election tightening we will have, _ post—election tightening we will have, taxes going up and spending going _ have, taxes going up and spending going down in kind of accounting terms _ going down in kind of accounting terms after the election. it may be what _ terms after the election. it may be what is _ terms after the election. it may be what is revealed today is we will -et what is revealed today is we will get a _ what is revealed today is we will get a very— what is revealed today is we will get a very different pattern before the election of significant extra taxes _ the election of significant extra taxes paying for significant continuation, badly needed support in the _ continuation, badly needed support in the next — continuation, badly needed support in the next couple of years. why? cabinet _ in the next couple of years. why? cabinet ministers are worried about

worsening — cabinet ministers are worried about worsening the recession they feel has already started.— has already started. let's have a look at the _ has already started. let's have a look at the figure _ has already started. let's have a look at the figure of _ has already started. let's have a look at the figure of inflation. i look at the figure of inflation. rishi sunak has said this is public enemy number one. ii.i%, a record high, something like the highest in 41 years. high, something like the highest in 41 ears. ~ ., , high, something like the highest in 41 ears. ~ . , high, something like the highest in 41 ears. . , ., ., 41 years. what is the impact of that on businesses _ 41 years. what is the impact of that on businesses as _ 41 years. what is the impact of that on businesses as well— 41 years. what is the impact of that on businesses as well as _ 41 years. what is the impact of that i on businesses as well as households? it is a cost of doing business crisis as well as a cost of living crisis. businesses have a double whammy. high prices are pushing costs up as well as emptying pockets of customers. if business groups are saying, i think i described it as thelma and louise last time when we were here eight weeks ago. we realised that was reckless. do not give up on great. if you suck to much money out of the economy immediately, you will make the recession worse. they are looking to date, give us some reason for hope and do not give up on growth. if your ultimate role is to bring debt

down as a percentage of gdp, bring debt down but do not forget trying to grow their growth bit because that can grow as well. they will say, give us reason to invest over this period. by, say, give us reason to invest over this period-— say, give us reason to invest over this period. a lot of commentators have said there _ this period. a lot of commentators have said there has _ this period. a lot of commentators have said there has not _ this period. a lot of commentators have said there has not been - this period. a lot of commentators l have said there has not been enough of a sense of contrition on behalf of a sense of contrition on behalf of rishi sunak and jeremy hunt. they have said mistakes were made when they were 30 their predecessors and they were 30 their predecessors and the mini budget we have discussed. is there a sense ofjeremy hunt tried to distance himself can detach himself from what is another conservative government? i do himself from what is another conservative government? i do not think that conservative government? i do not thinkthat will— conservative government? i do not think that will wash _ conservative government? i do not think that will wash with _ conservative government? i do not think that will wash with a - conservative government? i do not think that will wash with a lot - conservative government? i do not think that will wash with a lot of. think that will wash with a lot of voters. that is the problem he has got. he has coming and talked about the state as if they were made by the state as if they were made by the opposition. that is not what is happening here. it was mistakes made by the conservatives, some would say over several years when it comes to growth stock that makes his task a

lot more difficult. lots of people talking about george osborne when he brought in austerity and comparing it to that. there had been huge changes since then. george osborne, 80% spending cuts, that will not be the case here. a lot of people feel the case here. a lot of people feel the mood of voters has shifted. people feel like they need to be supported by the state, potentially, more than before. that is what you are hearing from some conservatives, not all. there are so many groups within the conservative party all wanting to protect what they care about. that will make their task incredibly difficult. by, about. that will make their task incredibly difficult.— incredibly difficult. a good point to no to incredibly difficult. a good point to go to an _ incredibly difficult. a good point to go to an indoor _ incredibly difficult. a good point to go to an indoor market - incredibly difficult. a good point to go to an indoor market in - to go to an indoor market in gloucester where our reporter is based, talking to people about the sort of support they would like to see and how they are hearing up like to see and how they are hearing up with the cost of living crisis and a higher rate of inflation. irate and a higher rate of inflation. we have 'ust and a higher rate of inflation. - have just come out of the indoor market. we are a the minutes away at

the cafe just outside the city centre in gloucester. a very busy period with lots of breakfast and hot drinks being served. we are joined by the home owner. you have put this tempting plate of hot food in front of us. it has hit you hard with so much going up. can you tell us how much more you are paying for things like butter and eggs? the cost is increasing daily. literally overnight. — cost is increasing daily. literally overnight, it was full pounds. the next _ overnight, it was full pounds. the next morning it is £7. there is a shortage — next morning it is £7. there is a shortage now of eggs. mushrooms are increasing _ shortage now of eggs. mushrooms are increasing daily in price. it really is a bit _ increasing daily in price. it really is a bit of— increasing daily in price. it really is a bit of a — increasing daily in price. it really is a bit of a struggle to know what will go _ is a bit of a struggle to know what will go up — is a bit of a struggle to know what will go up in price next. what is a bit of a struggle to know what will go up in price next.— will go up in price next. what is the most expensive _ will go up in price next. what is the most expensive food - will go up in price next. what is the most expensive food item | will go up in price next. what is. the most expensive food item on will go up in price next. what is - the most expensive food item on this plate? haste the most expensive food item on this late? ~ ., the most expensive food item on this late? . ., the most expensive food item on this late? ~ ., ., the most expensive food item on this late? ., ., , plate? we are looking at sausages, the rice plate? we are looking at sausages, the price of— plate? we are looking at sausages, the price of the _ plate? we are looking at sausages, the price of the bacon, _ plate? we are looking at sausages, the price of the bacon, the - the price of the bacon, the meat products definitely. the eggs, i am sure they—

products definitely. the eggs, i am sure they are going to be pumped i’ilht sure they are going to be pumped right up~ — sure they are going to be pumped right up~ it — sure they are going to be pumped right up. it is a bit of a worry. have — right up. it is a bit of a worry. have you _ right up. it is a bit of a worry. have you changed suppliers at all? we have tried to shop around. tried not to— we have tried to shop around. tried not to drop — we have tried to shop around. tried not to drop the price of it. we want to keep _ not to drop the price of it. we want to keep the — not to drop the price of it. we want to keep the quality but without losing — to keep the quality but without losing customers. i am not really sure _ losing customers. i am not really sure what — losing customers. i am not really sure what will happen next. especially with the price of the gas and electric. we are on a fixed term for a _ and electric. we are on a fixed term for a year— and electric. we are on a fixed term for a year but — and electric. we are on a fixed term for a year but after that it will be a decision— for a year but after that it will be a decision to decide what we will do. a decision to decide what we will do i_ a decision to decide what we will do i do— a decision to decide what we will do i do not— a decision to decide what we will do. i do not know how much it will rise by _ do. i do not know how much it will rise b . , , ., do. i do not know how much it will riseb. , ._ do. i do not know how much it will riseb. , ., , , _ rise by. this is a really busy cafe. it has rise by. this is a really busy cafe. it has been _ rise by. this is a really busy cafe. it has been going _ rise by. this is a really busy cafe. it has been going for— rise by. this is a really busy cafe. it has been going for 50 - rise by. this is a really busy cafe. it has been going for 50 years. i rise by. this is a really busy cafe. i it has been going for 50 years. you have been managing this place for about four years. so many customers

coming through the door. how are you managing to sustain those cuts and making sure you are making a profit? we are so busy, one of the busiest cafe is _ we are so busy, one of the busiest cafe is we — we are so busy, one of the busiest cafe is. we are still struggling. my wife daily— cafe is. we are still struggling. my wife daily is working out figures to see how— wife daily is working out figures to see how we can make things cope stop without— see how we can make things cope stop without losing the quality of everything. without losing the quality of everything-— without losing the quality of everything. without losing the quality of eve hin. ., ., , everything. you are saying it is really important _ everything. you are saying it is really important for _ everything. you are saying it is really important for you - everything. you are saying it is really important for you to - everything. you are saying it is| really important for you to keep everything. you are saying it is - really important for you to keep the customers coming in and to keep the quality of their produce at a good standard. ~ ., , , . standard. without putting the price u . standard. without putting the price u- b standard. without putting the price up by pounds _ standard. without putting the price up by pounds and _ standard. without putting the price up by pounds and pounds. - standard. without putting the price up by pounds and pounds. the - up by pounds and pounds. the customers— up by pounds and pounds. the customers will not come through the dooi’, _ customers will not come through the door, i_ customers will not come through the door, i think. customers will not come through the door, i think-— door, i think. thank you. you have been coming _ door, i think. thank you. you have been coming here _ door, i think. thank you. you have been coming here for— door, i think. thank you. you have been coming here for many - door, i think. thank you. you have been coming here for many years. | door, i think. thank you. you have - been coming here for many years. you love coming to this cafe. have you been coming less? how has he been changing your habits, being able to afford a breakfast like this? we have been _ afford a breakfast like this? we have been coming here the same as usual— have been coming here the same as usual because the price is good, there _ usual because the price is good, there breakfast is good, it is good quality— there breakfast is good, it is good quality and they have not tried to

rip off— quality and they have not tried to rip off the — quality and they have not tried to rip off the customers. you quality and they have not tried to rip off the customers.— rip off the customers. you have heard that _ rip off the customers. you have heard that prices _ rip off the customers. you have heard that prices are _ rip off the customers. you have heard that prices are going - rip off the customers. you have heard that prices are going up | rip off the customers. you have i heard that prices are going up and lived and his wife are really having to manage those costs. if that was passed on to the customer, would it change the amount of times he would come here? we change the amount of times he would come here? ~ ., , change the amount of times he would come here?— come here? we would still come the same. i come here? we would still come the same- i agree _ come here? we would still come the same- i agree he _ come here? we would still come the same. i agree he must _ come here? we would still come the same. i agree he must put _ come here? we would still come the same. i agree he must put the - come here? we would still come the same. i agree he must put the price| same. iagree he must put the price up same. iagree he must put the price up a little _ same. iagree he must put the price up a little bit, he has to pass a baton— up a little bit, he has to pass a baton to — up a little bit, he has to pass a baton to the customer. we will still come _ baton to the customer. we will still come because it is still a reasonable price and still a good breakfast. ~ ., ., , ., reasonable price and still a good breakfast. ~ ., ., ~' reasonable price and still a good breakfast. ., ., ~ ., breakfast. what would you like to see in the budget _ breakfast. what would you like to see in the budget today? - breakfast. what would you like to see in the budget today? i - breakfast. what would you like to see in the budget today? i would| see in the budget today? i would like to see _ see in the budget today? i would like to see him _ see in the budget today? i would like to see him give _ see in the budget today? i would like to see him give bit _ see in the budget today? i would like to see him give bit more i see in the budget today? i would like to see him give bit more to i see in the budget today? i would i like to see him give bit more to the peopie _ like to see him give bit more to the peopie who — like to see him give bit more to the people who are worse off and take more _ people who are worse off and take more of— people who are worse off and take more of the people who had more, the millionaires— more of the people who had more, the millionaires who do not pay a lower tax. millionaires who do not pay a lower tax~ peopie — millionaires who do not pay a lower tax. people send it to other countries, don't they? just have a reasonable — countries, don't they? just have a reasonable budget where most people will not _ reasonable budget where most people will not be _ reasonable budget where most people will not be ripped off. thank

reasonable budget where most people will not be ripped off.— will not be ripped off. thank you both very much _ will not be ripped off. thank you both very much indeed. - will not be ripped off. thank you both very much indeed. this i will not be ripped off. thank you | both very much indeed. this cafe will continue to be busy throughout the day. it is open seven days a week here in gloucester. so many people like luke will be watching carefully when the chancellor gets on his feet to deliver the budget. so many questions about tax changes and spending cuts. they will be watching very closely. one thing we are hearing time and again is how to restore stability. they want to see clear and detailed plan by the government.— clear and detailed plan by the government. ., ,, , ., , . government. thank you very much. i ho -e ou government. thank you very much. i hope you get — government. thank you very much. i hope you get to _ government. thank you very much. i hope you get to have _ government. thank you very much. i hope you get to have a _ government. thank you very much. i hope you get to have a big _ government. thank you very much. i hope you get to have a big breakfast| hope you get to have a big breakfast while you are back in the cafe. we will come back to you to get more reaction. we are expecting a statement in about ten minutes' time from jeremy hunt. let's have a look at some of the expected measures. pitch rolling, kite flying, the papers have been full of possible measures that might be announced. attacks threshold

freeze, which would bring more people into higher rates of tax. council tax increases, they may lift the referendum pack, which would allow local authorities and councils to increase council tax by more. the £2000 to £3000 energy price cap rise. we are going to hear more from jeremy hunt about the help that will be given to people following next april. it may be more targeted and less generous at that point. the top rate limit from £150,000 to £125,000. the increase in when phil tax has been called on by labour. pensions and benefits rising in line with inflation. that was a huge issue, wasn't it. you think with inflation. that was a huge issue, wasn't it. you think that with inflation. that was a huge issue, wasn't it. you think that is going to happen, don't you? i do. going to happen, don't you? i do. there was — going to happen, don't you? i do. there was no _ going to happen, don't you? i do. there was no manifesto _ going to happen, don't you? i u there was no manifesto commitment about benefits and tax credits going up about benefits and tax credits going up by that amount. they thought

about trying to save it by putting up about trying to save it by putting up earnings rather than the rate of inflation in september. my understanding is they will go up by 10.1% and that will cost about £5 billion. why? some of the things you have been hearing about, a deep concern about what will happen. the opposition made a lot about the windfall tax. this could go further and for longer. this could go further and for loner. ., ., ., , this could go further and for loner. ., ., , longer. the oil and gas companies already put _ longer. the oil and gas companies already put 20% — longer. the oil and gas companies already put 20% on _ longer. the oil and gas companies already put 20% on top _ longer. the oil and gas companies already put 2096 on top of - longer. the oil and gas companies already put 2096 on top of the i longer. the oil and gas companies| already put 2096 on top of the 4096 already put 20% on top of the 40% with a _ already put 20% on top of the 40% with a total of 25, we expect that to go— with a total of 25, we expect that to go to — with a total of 25, we expect that to go to 75%. labour have been calling — to go to 75%. labour have been calling for— to go to 75%. labour have been calling for that. it is a crowd pleaser _ calling for that. it is a crowd pleaser but not a massive moneyspinner. the big companies although— moneyspinner. the big companies although announcing record profits, little comes from the uk. and they can offset — little comes from the uk. and they can offset decommissioning oil rigs. they will— can offset decommissioning oil rigs. they will now go after other electricity providers for example

old renewable plants which has seen the electricity they sell soaring in price. _ the electricity they sell soaring in price, whereas the wind and nuclear reactions— price, whereas the wind and nuclear reactions haven't changed. keep an eye on— reactions haven't changed. keep an eye on that — reactions haven't changed. keep an eye on that. industry have little idea how — eye on that. industry have little idea how that mechanism will work but they— idea how that mechanism will work but they know the chancellor will be knocking _ but they know the chancellor will be knocking on their door. a very— knocking on their door. a very turbulent few months, a turbulent year. let's remind ourselves how we got here — from the mini—budget to now. i now call the chancellor of the exchequer to make a statement. chancellor... mr speaker, we are at the beginning of a new era. i'm not going to cut the additional rate of tax today, i'm going to abolish it altogether. the bank of england has been forced to take emergency action. last week's widely criticised mini—budget has been followed by a collapse in the pound. the chancellor is abandoning his plans to scrap the 45p rate of income tax.

will you be chancellor and liz truss will be prime minister— this time next month? absolutely 100%. he's out. he's been sacked. so kwasi kwarteng, the chancellor, he's gone. morning, chancellor. we will reverse almost all the tax measures i announced in the growth plan. gone, gone, gone. 45p tax cut, gone. two—year energy freeze, gone. economic credibility, gone. i am a fighter and not a quitter. i am resigning as leader of the conservative party. i will place economic- stability and confidence at the heart of this - government's agenda. this will mean difficult decisions to come. i the government's economic plan,

due to be announced on monday, is delayed. the prime minister and i have decided it is prudent to make that statement on the 17th of november. quite simply, we are increasing the bank rate because inflation is too high. it is the bank'sjob to bring it down. we are going to see - everyone paying more tax. we're going to see spending cuts. the inflation rate has jumped to 11.1%. it makes people poorer, that's what inflation does. it's the enemy we need to face down. that underlines the pace of change over the last few months. we are exhausted. can we talk about the black hole in public finances and

how they will address it? it is contentious, this description of what is a gap against self—imposed fiscal constraints is the idea of the national debt as a proportion of the economy should be falling after a period of time, five years is what they will confirm today as the rule, and if you want today as the rule, and if you want to do that, and get the obr what you have to do, plug in growth numbers, the difference set against current plans and what to do to correct it. from the right and left they are being attacked for even using this as a way of seeing the world. that gap we think will be 2% of the size of national income, £54 billion. the interesting thing is how contentious this is. today will get a response from the opposition but are they back this analysis, the idea of this gap- back this analysis, the idea of this gap. my back this analysis, the idea of this gap. my sense is they will accept it. not all the policies or reasons

but the principal and baseline, the keyword is baseline, this well conditioned politics for half a decade. first, on this issue of whether it is political, politically palatable, how will it go down? we have heard about fairness and compassion as the prime minister and chanceiior— compassion as the prime minister and chancellor keep talking about. that is crucial _ chancellor keep talking about. that is crucial to — chancellor keep talking about. that is crucial to whether this is palatable to their mps and voters. the host— palatable to their mps and voters. the host and there is no what is coming, — the host and there is no what is coming, that is clear, big tax rises — coming, that is clear, big tax rises. there is the people we talk about— rises. there is the people we talk about in— rises. there is the people we talk about in the middle who are not on universal— about in the middle who are not on universal credit or benefits who don't _ universal credit or benefits who don't think they are wealthy at all. that will— don't think they are wealthy at all. that will become the story for tory mps as, _ that will become the story for tory mps as, then talk about stealth taxes. — mps as, then talk about stealth taxes, the second you get your salary. — taxes, the second you get your salary. you _ taxes, the second you get your salary, you will see what has

happened, people will feel poorer and people will feel poorer. that will be _ and people will feel poorer. that will be an— and people will feel poorer. that will be an issue for tory mps as well— will be an issue for tory mps as well as— will be an issue for tory mps as well as idealistically they don't think— well as idealistically they don't think taxes should go up. let — think taxes should go up. let us _ think taxes should go up. let us talk to two mps. both in central lobby for us. thank you for taking time out. vicky ford, on that issue of tax rises, are you comfortable as a conservative with eye watering rises in taxation? we all know we have a very difficult economic— we all know we have a very difficult economic situation— we all know we have a very difficult economic situation due _ we all know we have a very difficult economic situation due to - we all know we have a very difficult economic situation due to global i economic situation due to global pressures— economic situation due to global pressures and _ economic situation due to global pressures and when _ economic situation due to global pressures and when you - economic situation due to global pressures and when you look i economic situation due to global pressures and when you look at i economic situation due to global - pressures and when you look at many other— pressures and when you look at many other similar— pressures and when you look at many other similar countries _ pressures and when you look at many other similar countries they— pressures and when you look at many other similar countries they face - other similar countries they face even _ other similar countries they face even bigger— other similar countries they face even bigger challenges. - other similar countries they face even bigger challenges. it - other similar countries they face even bigger challenges. it is - other similar countries they face i even bigger challenges. it is really important — even bigger challenges. it is really important this— even bigger challenges. it is really important this statement - even bigger challenges. it is really important this statement helps i even bigger challenges. it is really important this statement helps to| important this statement helps to -et important this statement helps to get a _ important this statement helps to get a firm — important this statement helps to get a firm grip— important this statement helps to get a firm grip on— important this statement helps to get a firm grip on inflation- important this statement helps to get a firm grip on inflation and i get a firm grip on inflation and brings— get a firm grip on inflation and brings fiscal _ get a firm grip on inflation and brings fiscal stability. - get a firm grip on inflation and brings fiscal stability. when i i get a firm grip on inflation and i brings fiscal stability. when i was knocking — brings fiscal stability. when i was knocking on — brings fiscal stability. when i was knocking on doors _ brings fiscal stability. when i was knocking on doors in— brings fiscal stability. when i was knocking on doors in chelmsfordl brings fiscal stability. when i was i knocking on doors in chelmsford that is what _ knocking on doors in chelmsford that is what they— knocking on doors in chelmsford that is what they were _ knocking on doors in chelmsford that is what they were all _ knocking on doors in chelmsford that is what they were all asking - knocking on doors in chelmsford that is what they were all asking for, i is what they were all asking for, fiscal— is what they were all asking for, fiscal stability. _ is what they were all asking for, fiscal stability. that _ is what they were all asking for, fiscal stability. that is _ is what they were all asking for, fiscal stability. that is going i is what they were all asking for, fiscal stability. that is going to. fiscal stability. that is going to

mean — fiscal stability. that is going to mean we — fiscal stability. that is going to mean we need _ fiscal stability. that is going to mean we need to _ fiscal stability. that is going to mean we need to find - fiscal stability. that is going to mean we need to find more i fiscal stability. that is going to i mean we need to find more money fiscal stability. that is going to - mean we need to find more money to keep our— mean we need to find more money to keep our public— mean we need to find more money to keep our public services _ mean we need to find more money to keep our public services going - mean we need to find more money to keep our public services going and i keep our public services going and it is absolutely— keep our public services going and it is absolutely right _ keep our public services going and it is absolutely right the _ it is absolutely right the chancellor _ it is absolutely right the chancellor has - it is absolutely right the chancellor has said i it is absolutely right the chancellor has said we i it is absolutely right the i chancellor has said we do it is absolutely right the - chancellor has said we do that in it is absolutely right the _ chancellor has said we do that in a compassionate _ chancellor has said we do that in a compassionate way— chancellor has said we do that in a compassionate way that _ chancellor has said we do that in a compassionate way that supports. chancellor has said we do that in a i compassionate way that supports the most vulnerable. _ most vulnerable. why _ most vulnerable. why is _ most vulnerable. why is this - most vulnerable. i why is this statement most vulnerable. _ why is this statement happening today and seen as an emergency statement byjeremy hunt needed to make eye watering lead difficult decisions? because of the very, very difficult economic— because of the very, very difficult economic situation— because of the very, very difficult economic situation we _ because of the very, very difficult economic situation we have. i economic situation we have. in economic situation we have. in the — economic situation we have. in the bank— economic situation we have. in the bank of— economic situation we have. in the bank of england i economic situation we have. in the bank of england theyl economic situation we have. i in the bank of england they were very clear— in the bank of england they were very clear when _ in the bank of england they were very clear when the _ in the bank of england they were very clear when the governor i in the bank of england they were i very clear when the governor came here even— very clear when the governor came here even before _ very clear when the governor came here even before september- very clear when the governor came here even before september they. very clear when the governor came i here even before september they were lloii'i here even before september they were going to _ here even before september they were going to need — here even before september they were going to need to— here even before september they were going to need to start _ here even before september they were going to need to start putting - here even before september they were going to need to start putting in- going to need to start putting in place _ going to need to start putting in place increases _ going to need to start putting in place increases in _ going to need to start putting in place increases in interest- going to need to start putting ini place increases in interest rates, to bring — place increases in interest rates, to bring inflation— place increases in interest rates, to bring inflation under- place increases in interest rates, to bring inflation under control. . to bring inflation under control. getting — to bring inflation under control. getting back— to bring inflation under control. getting back grip _ to bring inflation under control. getting back grip of— to bring inflation under control. getting back grip of inflation i to bring inflation under control. getting back grip of inflation is| getting back grip of inflation is what _ getting back grip of inflation is what we — getting back grip of inflation is what we and _ getting back grip of inflation is what we and other— getting back grip of inflation is what we and other similar- getting back grip of inflation is i what we and other similar countries across— what we and other similar countries across the _ what we and other similar countries across the world _ what we and other similar countries across the world need _ what we and other similar countries across the world need to _ what we and other similar countries across the world need to do. - what we and other similar countries across the world need to do. if- what we and other similar countries across the world need to do. if you i across the world need to do. if you look at _ across the world need to do. if you look at our— across the world need to do. if you look at our growth _ across the world need to do. if you look at our growth forecast, - across the world need to do. if you look at our growth forecast, higher than every— look at our growth forecast, higher than every other—

look at our growth forecast, higher than every other country— look at our growth forecast, higher than every other country in - look at our growth forecast, higher than every other country in the i look at our growth forecast, higher than every other country in the g7, our invasion — than every other country in the g7, our invasion is— than every other country in the g7, our invasion is lower. _ than every other country in the g7, our invasion is lower. but- than every other country in the g7, our invasion is lower. but we - than every other country in the g7, our invasion is lower. but we need| our invasion is lower. but we need to bring _ our invasion is lower. but we need to bring that — our invasion is lower. but we need to bring that pistol— our invasion is lower. but we need to bring that pistol stability- our invasion is lower. but we need to bring that pistol stability and i to bring that pistol stability and that is— to bring that pistol stability and that is what— to bring that pistol stability and that is what is _ to bring that pistol stability and that is what is absolutely- to bring that pistol stability and that is what is absolutely right. to bring that pistol stability and i that is what is absolutely right —— that is what is absolutely right —— that fiscal— that is what is absolutely right —— that fiscal stability. _ that fiscal stability. rushanara - that fiscal stability. rushanara ali, i that fiscal stability. . rushanara ali, when that fiscal stability. i rushanara ali, when you that fiscal stability. _ rushanara ali, when you look broadly at whatjeremy hunt has been saying, those with the broadest shoulders who will be paying the most once he delivers his statement, and he will be extending the number of people paying the higher rate of tax, these are policies that you and the labour party can support. we have to remember why we are here, because _ we have to remember why we are here, because li2— we have to remember why we are here, because liz truss crashed the economy— because liz truss crashed the economy and damaged our economic credibility— economy and damaged our economic credibility internationally, that is what _ credibility internationally, that is what the — credibility internationally, that is what the governor of the bank of england — what the governor of the bank of england said in committee. we have had a _ england said in committee. we have had a decade of austerity. they are offering _ had a decade of austerity. they are offering more tax rises and more austerity — offering more tax rises and more austerity. who is going to support that? _ austerity. who is going to support

that? what we now need to do is restore _ that? what we now need to do is restore economic credibility. one way is _ restore economic credibility. one way is by— restore economic credibility. one way is by having a proper windfall tax that _ way is by having a proper windfall tax that we believe could generate 50 billion, — tax that we believe could generate 50 billion, that would take some of the pain— 50 billion, that would take some of the pain away from people who suffered — the pain away from people who suffered already with their mortgages going up, inflation going up, mortgages going up, inflation going up. and _ mortgages going up, inflation going up, and wider context. do not forget this is— up, and wider context. do not forget this is a _ up, and wider context. do not forget this is a crisis— up, and wider context. do not forget this is a crisis caused by the conservative party in downing street and a _ conservative party in downing street and a government now since liz truss's— and a government now since liz truss's successor is trying to fix the failures _ truss's successor is trying to fix the failures and damage caused by the failures and damage caused by the conservative party. we need to make _ the conservative party. we need to make sure — the conservative party. we need to make sure that they ensure it is paid _ make sure that they ensure it is paid without causing more harm to our economy. we are already in recession — our economy. we are already in recession. this plan is unlikely to have _ recession. this plan is unlikely to have anything we can see in terms of growth _ have anything we can see in terms of growth we _ have anything we can see in terms of growth. we need investment for growth — growth. we need investment for growth. what we had was unfunded tax cuts in _

growth. what we had was unfunded tax cuts in the _ growth. what we had was unfunded tax cuts in the last budget. we need to make _ cuts in the last budget. we need to make sure — cuts in the last budget. we need to make sure people do not suffer on top of— make sure people do not suffer on top of what — make sure people do not suffer on top of what they have had inflicted on them _ top of what they have had inflicted on them by this conservative government. what is the point of the tory party, hang on, people will ask, when in 2019 which was meant to be the election manifesto rishi sunak is ticking by, that they will not raise income tax or national insurance or vat but we know everyone will be paying more tax asjeremy hunt said. this is no longer a party of low taxation. i would have to disagree. i will answer— i would have to disagree. i will answer the _ i would have to disagree. i will answer the question. - i would have to disagree. i will answerthe question. i- i would have to disagree. i will answer the question. i will- i would have to disagree. i will- answer the question. i will answer. where _ answer the question. i will answer. where we — answer the question. i will answer. where we are — answer the question. i will answer. where we are right _ answer the question. i will answer. where we are right now— answer the question. i will answer. where we are right now is- answer the question. i will answer. where we are right now is due i answer the question. i will answer. where we are right now is due to. where we are right now is due to global— where we are right now is due to global pressures. _ where we are right now is due to global pressures. the _ where we are right now is due to global pressures. the aftermathl where we are right now is due to. global pressures. the aftermath of covid, _ global pressures. the aftermath of covid, the — global pressures. the aftermath of covid, the war— global pressures. the aftermath of covid, the war in— global pressures. the aftermath of covid, the war in ukraine - global pressures. the aftermath of covid, the war in ukraine putting i covid, the war in ukraine putting pressure — covid, the war in ukraine putting pressure on _ covid, the war in ukraine putting pressure on economies - covid, the war in ukraine putting pressure on economies across i covid, the war in ukraine putting. pressure on economies across the world _ pressure on economies across the world unlike _ pressure on economies across the world. unlike the _ pressure on economies across the world. unlike the labour- pressure on economies across the i world. unlike the labour government which _ world. unlike the labour government which we _ world. unlike the labour government which we all— world. unlike the labour government which we all remember— world. unlike the labour government which we all remember left _ world. unlike the labour government which we all remember left us - world. unlike the labour government which we all remember left us in i which we all remember left us in 2010 _ which we all remember left us in 2010 with — which we all remember left us in 2010 with no _ which we all remember left us in

2010 with no money. _ which we all remember left us in 2010 with no money. this - which we all remember left us in i 2010 with no money. this government has rebuilt _ 2010 with no money. this government has rebuilt public— 2010 with no money. this government has rebuilt public finances. _ 2010 with no money. this government has rebuilt public finances. we - has rebuilt public finances. we could — has rebuilt public finances. we could put— has rebuilt public finances. we could put money— has rebuilt public finances. we could put money in— has rebuilt public finances. we could put money in to - has rebuilt public finances. we could put money in to support| could put money in to support 400 billion— could put money in to support 400 billion people _ could put money in to support 400 billion people in _ could put money in to support 400 billion people in covid, _ could put money in to support 400 billion people in covid, 37- could put money in to support 400 billion people in covid, 37 billion . billion people in covid, 37 billion has gone — billion people in covid, 37 billion has gone to— billion people in covid, 37 billion has gone to support _ billion people in covid, 37 billion has gone to support those - billion people in covid, 37 billion has gone to support those on . billion people in covid, 37 billioni has gone to support those on low incomes— has gone to support those on low incomes and _ has gone to support those on low incomes and cost _ has gone to support those on low incomes and cost of— has gone to support those on low incomes and cost of living - has gone to support those on low incomes and cost of living this . incomes and cost of living this year — incomes and cost of living this year it— incomes and cost of living this year it is— incomes and cost of living this year. it is that _ incomes and cost of living this year. it is that ability - incomes and cost of living this year. it is that ability to - incomes and cost of living this year. it is that ability to have i year. it is that ability to have stability— year. it is that ability to have stability in _ year. it is that ability to have stability in finances - year. it is that ability to have stability in finances coupled i year. it is that ability to have . stability in finances coupled with good _ stability in finances coupled with good employment _ stability in finances coupled with good employment numbers. - stability in finances coupled with . good employment numbers. every single _ good employment numbers. every single labour— good employment numbers. every single labour government - good employment numbers. every single labour government has - good employment numbers. every single labour government has lefti single labour government has left employment — single labour government has left employment worse _ single labour government has left employment worse than _ single labour government has left employment worse than when - single labour government has left| employment worse than when they single labour government has left - employment worse than when they came in. employment worse than when they came in this _ employment worse than when they came in. this government— employment worse than when they came in. this government has— employment worse than when they came in. this government has always - in. this government has always focused — in. this government has always focused on _ in. this government has always focused on supporting - in. this government has alwaysl focused on supporting especially young _ focused on supporting especially young people _ focused on supporting especially young people in— focused on supporting especially young people. in 2010 _ focused on supporting especially young people. in 2010 labour. focused on supporting especially. young people. in 2010 labour had 1 million _ young people. in 2010 labour had 1 million young — young people. in 2010 labour had 1 million young people _ young people. in 2010 labour had 1 million young people not _ young people. in 2010 labour had 1 million young people not in - million young people not in employment, _ million young people not in employment, education - million young people not in employment, education or| million young people not in - employment, education or training. to go— employment, education or training. to go back— employment, education or training. to go back to— employment, education or training. to go back to this _ employment, education or training. to go back to this point today, - employment, education or training. to go back to this point today, this| to go back to this point today, this is not what people want to hear. it is not what people want to hear. it is not what people want to hear. it is important to remember every labour— is important to remember every labour government— is important to remember every labour government has- is important to remember every labour government has left - labour government has left unemployment worse - labour government has left unemployment worse than i labour government has left - unemployment worse than when they came in _ unemployment worse than when they came in this— unemployment worse than when they came in this is— unemployment worse than when they came in. this is a _ unemployment worse than when they came in. this is a difficult— came in. this is a difficult economic— came in. this is a difficult economic time. _ came in. this is a difficult economic time. there - came in. this is a difficulti economic time. there are came in. this is a difficult- economic time. there are jobs out there _

economic time. there are jobs out there caused _ economic time. there are jobs out there caused by— economic time. there are jobs out there. caused by global— economic time. there are jobs out| there. caused by global pressures. the uk _ there. caused by global pressures. the uk is _ there. caused by global pressures. the uk is better— there. caused by global pressures. the uk is better off— there. caused by global pressures. the uk is better off in _ there. caused by global pressures. the uk is better off in growth - the uk is better off in growth numbers— the uk is better off in growth numbers than— the uk is better off in growth numbers than france, - the uk is better off in growth i numbers than france, germany, the uk is better off in growth - numbers than france, germany, italy, usa, _ numbers than france, germany, italy, usa. canada. — numbers than france, germany, italy, usa. canada. japan _ usa, canada, japan. we _ usa, canada, japan. we are _ usa, canada, japan. we are going - usa, canada, japan. we are going to- usa, canada, japan. i we are going to show usa, canada, japan. - we are going to show this usa, canada, japan. _ we are going to show this graph which stands in stark contrast to what you have said. economic growth since covid—i9. of g7 countries. us at the top, 4.2%. uk at the bottom at the top, 4.2%. uk at the bottom at 0.4%, -0.4%. the forecast is this year we will be ahead of all the others. we have to have this school —— fiscal stability in this statement. just to reiterate those are the official figures we have of growth in the united kingdom since covid—i9 and it stands at —0.4%. i will let you go back into the chamber because

jeremy hunt will be standing up and unveiling that statement. listening to them, you were talking about labour probably in pencil bowl support much of whatjeremy hunt will set out —— probably in principle support. if you look at the figures we have just seen, it doesn't feel good. you heard from a senior labour figure on the treasury select committee talking about austerity. if labour broadly accepted the that emerge from today, not the individual policies, they will have different priorities, then, that criticism i am sure will be faced by labour leadership from the left, and

the difference now, the analogy is 1997... ken clarke said i would never have seen through. that was consequential, we had pfi emerging. are we going to see a difference between what happens in the first three years? isn't a lot of this stuff going to be postponed? it isn't a lot of this stuff going to be postponed?— be postponed? if some of the sendin: be postponed? if some of the spending cuts _ be postponed? if some of the spending cuts are _ be postponed? if some of the spending cuts are after- be postponed? if some of the spending cuts are after the i spending cuts are after the election, labour has to say whether they will accept them or not. it does mean that anybody had to answer some of these questions. the does mean that anybody had to answer some of these questions.— some of these questions. the market will be watching _ some of these questions. the market will be watching quite _ some of these questions. the market will be watching quite closely. - some of these questions. the market will be watching quite closely. how i will be watching quite closely. how much _ will be watching quite closely. how much will _ will be watching quite closely. how much will you put off? i idrill will be watching quite closely. how much will you put off?— much will you put off? i will go to the . m much will you put off? i will go to the gym next _ much will you put off? i will go to the gym next week! _ much will you put off? i will go to the gym next week! exactly. - much will you put off? i will go to| the gym next week! exactly. they much will you put off? i will go to - the gym next week! exactly. they may want a down — the gym next week! exactly. they may want a down payment _ the gym next week! exactly. they may want a down payment now— the gym next week! exactly. they may want a down payment now on - the gym next week! exactly. they may| want a down payment now on restoring credibility _ want a down payment now on restoring credibility. what was said about the labour— credibility. what was said about the labour party accepting basic

analysis— labour party accepting basic analysis is quite important for the markets — analysis is quite important for the markets if— analysis is quite important for the markets. if that is true, it means the markets _ markets. if that is true, it means the markets do not think there will be a massive policy change, if example — be a massive policy change, if example the labour party when the next general election. that might -ive next general election. that might give them — next general election. that might give them some comfort. they will be walching _ give them some comfort. they will be walching to _ give them some comfort. they will be watching to see how much is put on the never— watching to see how much is put on the never never. looks like tax rises _ the never never. looks like tax rises are — the never never. looks like tax rises are first and spending cuts second — rises are first and spending cuts second. ., , , rises are first and spending cuts second. .,, , , , , second. people might be surprised the claim from _ second. people might be surprised the claim from the _ second. people might be surprised the claim from the chancellor- second. people might be surprised i the claim from the chancellor today, given we have heard i watering levels, they might try to claim that there are no cuts and not only are we not returning to 2010 austerity, because the balance... taste we not returning to 2010 austerity, because the balance. . ._ we not returning to 2010 austerity, because the balance... we are going to jeremy hunt- _ because the balance... we are going to jeremy hunt. mr _ because the balance... we are going to jeremy hunt. mr speaker, - because the balance... we are going to jeremy hunt. mr speaker, in - because the balance... we are going to jeremy hunt. mr speaker, in the l tojeremy hunt. mr speaker, in the face of unprecedented global headwinds, families, pensioners, businesses, teachers, nurses and many others are worried about the

future. today we deliver a plan to tackle the cost of living crisis and we our economy. our priorities are stability, growth and public services. we also protect the vulnerable because to be british is to be compassionate and this is a compassionate, conservative government. we are not alone in facing these problems. but today we respond to an international with british values. we are honest about the challenges and we are fair in our solutions. yes, we take difficult decisions to tackle inflation and keep mortgage rates down. our plan also leads to a shallower downturn lower energy bills, higher growth and a stronger nhs and education system. three

priorities then today. stability, growth and public services. i start with stability. mr speaker, high inflation is the enemy of stability. it means higher mortgage rates, more expensive you and food bills, businesses failing and unemployment rising. it erodes savings, causes industrial unrest and cuts funding for public services. it hurts the poorest the most and eats away at the trust upon which a strong society is built. the office for budget responsibility confirms global factors budget responsibility confirms globalfactors are budget responsibility confirms global factors are the primary cause of inflation. most countries are still dealing with the fallout from a once in a century pandemic. a

fellow scheme, their vaccine roll—out and the response of the nhs did our country proud. but they all have to be paid for. the lasting impact on supply chains has made goods more expensive and field inflation. this has been worsened by a maiden russia energy crisis. heating's war in ukraine has caused wholesale gas and electricity prices to rise at eight their historic average. —— putin's war in ukraine. inflation is high here but higher in germany, the netherlands and italy. interest rates have risen here but faster in the us, canada and new zealand. growth forecasts have fallen have fallen but fallen further in germany. the international monetary fund expects one third of the world's economy to be in recession this year or next. the bank of england, which has done an outstanding job since its

independence, now has my wholehearted support in its mission to defeat inflation. i today confirm we will not change its remit. we need fiscal and monetary policy to work together. that means that government and the bank working in lockstep. that means in particular giving the world confidence in our ability to pay our debts. british families make sacrifices to live within their means and so must their government because the united kingdom will always pay its way. i understand the motivation of my predecessor's mini budget. he was correct... he was correct to identify grace as a priority. but unfunded tax hats are as risky as unfunded tax hats are as risky as unfunded spending, which is why we reverse the planned measures. —— tax

cuts. the pound has strengthened and the obr says today the lower interest rates generated by the actions of the government already benefiting our economy and public finances. mr speaker, credibility cannot be taken for granted. yesterday's inflation figures show we must continue a relentless fight to bring it down, including a rock—solid commitment to rebuild our public finances. richard hughes and his team at the obr today layout starkly the impact of global headwinds on the uk economy. i am enormously grateful to him and his team for the thorough work. the obr forecast uk's inflation rate to be 9.1% and 7.4% next year. they confirm our actions today help information to full sharply from the middle of year stop they also judged

that the uk, like other countries, is now in recession. overall this year the economy is still forecast to grow by 4.2%. gdp then. in 2023 by 1.4%, to grow by 4.2%. gdp then. in 2023 by1.4%, before to grow by 4.2%. gdp then. in 2023 by 1.4%, before rising by to grow by 4.2%. gdp then. in 2023 by1.4%, before rising by1.3% to grow by 4.2%. gdp then. in 2023 by 1.4%, before rising by 1.3% by 2.6% and 2.7% in the following three years. the obr says higher energy prices explain the majority of most of the downward revision. they also expect a rise in unemployment from 3.6 per day —— attacker percent today to over 4%. the decisions today to over 4%. the decisions today mean over the next five years borrowing is more than halved. this year we are forecast by 7.1% of gdp and next to 5.5%, £140 billion. by

2027 - 2028. 2.4%, £69 billion. underlying debt as a percentage of gdp starts to full from a peak of 97.6% in 2025-26. i also gdp starts to full from a peak of 97.6% in 2025—26. i also confirm two new fiscal rules. the first is underlying debt wilful as a percentage of gdp by the fifth year of a rolling five year period, their second public sector borrowing over the same period must be over 3% of gdp. the plan i am announcing today meets both rules. the statement today considers a consolidation of £55 billion and means inflation and interest rates end up significantly lower. we achieve this, mr speaker, in a balanced way. in the short term, as growth slows and unemployment rises, we will use this book policy to support the economy.

—— fiscal policy. we will ensure the recession is shallower and inflation is reduced. unemployment is lower with about 70,000 jobs saved as a result of our decisions today. once growth returns, we increase the pace of consolidation to get debt falling. this further reduces the pressure on the bank to raise interest rates because, as conservatives, we do not leave our debts to the next generation. so, mr speaker... so, mr speaker, this is a balanced path to stability. tackling inflation to reduce the cost of living and protect savings of pensioners while supporting the economy on a path to growth. it means taking difficult decisions.

anyone who says there are easy answers is not being straight with the british people. some argue for spending cuts, but that would not be compatible with high quality public services. others say savings should be found by increasing taxes but conservatives know high tax economy is damage enterprise and erode freedom. we want low taxes and sound money but conservatives know sound money but conservatives know sound money has to come first because inflation eats away at the pounded people's pockets even more insidiously than taxes. with half of the consolidation coming from tax and half from spending, this is a balanced plan for stability. i turn first to our decisions on tax. i have tried to be fair by following

two principles. firstly, we are disposed with more and contribute more and secondly avoid tax rises that damage growth. although my decisions today do lead to a substantial tax increase but we have not raised headline rates of taxation and tax as a percentage of gdp will increase byjust1% over the next five years. i start with personal taxes. asking more from those who have more means that the first difficult decision i take on tax is to reduce the threshold on which the 45p rate becomes payable from £150,000 to £125,140. those earning £150,000 or more will pay just over £1200 more in tax every year. they also are taking difficult decisions on tax—free allowances. maintaining at current levels the income tax personal allowance high rate threshold, a national insurance

thresholds and inheritance tax thresholds and inheritance tax thresholds for a further two years, taking us to april 20 28. even after that, we'll still have the most generous set of tax free allowances of any g7 country. i am also reforming announces on an earned income. dividend allowance will be capped from £2000 to £1000 next year and then from £1000 from april 2024. the annual exempt amount of capital gains tax will be cut to £6,000 next year and £3000 from april 2024. this still leaves us with more generous allowances than countries like germany, ireland, france and canada. because the obr forecast half of all new vehicles will be electric by 2025, to make our motoring tax system fairer, i have decided that from then, electric vehicles will no longer be exempt from vehicle excise

duty. company car tax rates will remain low level electric vehicles and i have listened to industry bodies and will limit rate increases to one percentage point yearfor three years from 2025. the obr expect housing activity to slow over the next two years. the stamp duty cuts announced in the mini budget will remain in place but only until sist will remain in place but only until 31st of march 2025. after that i will sunset the measure, creating an incentive to support the housing market and jobs associated with it by boosting transaction during the period the economy most need it. i now turn to business taxes. while i have decided to freeze the employers threshold until april 2028, we will retain the employment allowance at its new higher level of £5,000. this means 40% of all businesses will pay no mix at will. that threshold is already more than twice as high as

the eu and oecd averages. i will maintain that until march 2026. the prime minister successfully negotiated a landmark deal to make sure multinational corporations, including big tech companies pay the right tax in the companies they operate. —— the countries they operate. —— the countries they operate. i will make sure the uk gets ourfair share. alongside further measures to tackle tax evasion, this will raise £2.87 billion by 2028. i had heard concerns about smes and tax fraud, i have decided to cut the rate to 86% and a credit rate to 10% but increase expenditure credit from 13% to 10%. despite raising revenue, the obr have confirmed these measures have no detrimental impact on the

economy. the head of the next budget will work with industry to understand what further support smes may require. next, went full taxes. i have no objection to windfall taxes if they are genuinely about windfall profits caused by unexpected increases in energy crisis. but i know the honourable members opposite are getting excited about talk of windfall taxes. any such tax should be temporary, not deter investment come and recognise the cyclical nature of energy businesses. so taking account of this, i have decided from january the 1st until march 28 we will increase the energy profits levy from 25 up to 35%, the structure of our energy market also

creates windfall profits for low carbon electricity generation so from january the 1st we have introduced a new temporary 45% levy on electricity generators together this measure is raising £14 billion next year. finally i turned to business rates. it is an important principle that bills should accurately reflect market values so we will proceed with the revaluation of business properties from april 23 but i will soften the bill on —— the blow with a £14 billion tax cut over the next five years, nearly two thirds of properties will not pay a penny more next year and thousands of pubs, restaurants and small high street shops will benefit. this will include a new government funded transitional relief scheme called for by the cbi, british retail consortium, federation of small businesses benefiting 700,000

businesses. our plan for the cost of living delivers lower inflation, lower mortgage rates, shallower downturn and lower unemployment. it also involves public spending discipline so i turn next to how we protect public services through a challenging period. the prime minister's vision for this country has at its heart a strong nhs and world class education. we know a strong economy depends on strong public services so we will protect them as much as we can as we deliver our plan for stability and growth. we do have to take difficult decisions on public finances. so we are going to grow public spending but we will grow more slowly than the growth in the economy. for the remaining two years of the spending review we will protect increases in departmental budgets we have set out

in cash terms and grow reasonable spreading at 1% a year in real terms in the three years that follow. although departments will have to make efficiencies to deal with inflationary pressures in the next two years this decision means overall spending on public services will continue to rise in real terms for the next five years. before i turn to our plan for schools and the nhs, i start with two other areas of spending. the department for work and pensions has a critical role in supporting people into work and i am proud to live in a country with one of the most comprehensive safety nets anywhere in the world. but i am also concerned we have seen a sharp increase in economically inactive working age adults of around 630,000 people since the start of the pandemic.

employment levels have yet to return to pre—pandemic levels which is bad for businesses who cannot fill vacancies and bad for people missing out on the opportunity to do well for themselves and their families. so the prime minister has asked the work and pensions secretary to do a thorough review of issues holding back workforce participation, to conclude early in the new year. alongside this i am also committed to helping people already in work to raise their incomes, progress work and become financially independent so we will ask over 600,000 more people on universal credit to meet with a work coach to get the support they need to increase their hours or earnings. i also decided to move the managed transition people from employment and support allowance on to universal credit to 2028 and will

invest in dwp to crack down on benefit fraud and error over the next two years. the review of the state pension age will also be published early 2023. our security at home depends on our security overseas. so i turn next to defence and other international commitments. the privilege of being this country's foreign secretary showed me first—hand the enormous respect in which this country is held because the united kingdom is and has always been a force for good in the world. nothing sums that up more than the courage of our armed forces, men and women who risk their lives every day in defence of our territory and our belief in freedom. alongside them, i salute the citizens of another country right on the that fight today, the brave of

ukraine. the uk has given their military support worth £2.3 billion since the start up yu ting's invasion, the second—highest contribution in the world after the united states, demonstrating our commitment to democracy and open societies remains steadfast. in that context the prime minister and i both recognise the need to increase defence spending. before we make that commitment it is necessary to revise and update the integrated review written as it was before the ukraine invasion and i have asked for that vital work to be completed ahead of the next budget and confirm we will continue to maintain the defence budget at least 2% of gdp. another important international commitment is to overseas aid, the obr forecast shows a significant shock to public finances so it won't be possible to return to their 0.7%

target until the fiscal situation allows. we remain fully committed to that target and the plans i have set out today assume spending will remain at 0.5% for the forecast period as a percentage we were the third—highest donor in the g7 last year and i am proud our aid commitment has saved thousands of lives the world. i look forward to working closely with my right honourable friend the member for sutton coldfield now rightly back in his place in cabinet to make sure we continue to play a leadership role in tackling global poverty. the uk has also been a global leader on climate change cutting emissions by more than any other g20 country. with the existential vulnerability we face now would be the wrong time to step back from our international climate responsibilities, so i also

confirm despite the economic pressures, we remain fully committed to the historic glasgow climate pact agreed at cop26 including a 68% reduction in our own emissions by 2030. i turn to education. being pro—education is being pro—growth. but providing our children with a good education is notjust an economic mission, it is a moral mission, one to which my right honourable friend the prime minister has always been deeply committed. thanks to the efforts of successive conservative education secretary is particularly my right honourable friend from surrey heath and from bognor regis, we have risen nine places in the global league tables for maths and reading in the last seven years. i still however have concerns that

not all school leavers get the skills they need for a modern economy. but for the first time this country has a conservative education secretary who left school at 16 to become an apprentice and knows first—hand why good skills matter. there are many important initiatives in place but as chancellor i want to know the answer to one simple question. well every young person leave the education system with the skills they would get injapan, germany or switzerland? so i have appointed sir michael barber to advise on the implementation of our skills reform programme. as we raise the skill levels of our school leavers, i want also to ensure even in an economic crisis, the improvement in schools standards improve to accelerate. some have suggested putting vat on

independent school fees as a way of increasing core funding for schools which would raise about £1.7 billion. according to saturn estimates that would result in up to 90,000 children from the independent sector is switching to state schools giving with one hand only to take away with another. so instead of being ideological i am going to be practical. because we want school standards to continue to rise for every child, we will do more than protect budget but increase it i can announce today that next year and the year after we will invest an extra £2.3 billion per annum in will invest an extra £2.3 billion perannum in our will invest an extra £2.3 billion per annum in our schools. will invest an extra £2.3 billion perannum in ourschools. our message to heads and teachers and classroom assistants is, thank you for your brilliant work, we need it to continue and in difficult

economic circumstances a conservative government is investing more in the public service that defines all our futures. mr defines all ourfutures. mr speaker, the defines all our futures. mr speaker, the service we defines all ourfutures. mr speaker, the service we depend on more than any other is the nhs. as a former health secretary i know how hard people are working on the front line and how much they are struggling after the pandemic. the biggest issues are workforce shortages and pressures in the social care sector. today i addressed both. on staff shortages, the former chair of the health and social care select committee put forward a case for a long workforce plan. even wrote a book about it which i have read. i have listened carefully to his proposals. i believe they have merits. the department of health and social care and nhs will publish an independently verified plan for the

number of doctors, nurses and other professionals we will need in five, ten and 15 years, taking full account of the need for better retention and productivity improvements. i have also listened to extensive representations about the challenges facing the social care sector. it did a heroicjob looking after children, disabled adults and older people during the pandemic. it's 1.6 people during the pandemic. it's1.6 million employees work incredibly hard but even outside the pandemic the increasing number of over—80s is putting massive pressure on services. i also had very real concerns from local authorities particularly about their ability to deliver the deal not reforms immediately. so i will delay implementation of this important reform for two years allocating funding to allow local authorities to provide more care

packages. i also want the social care system to help free up some of the 13,000 hospital beds occupied by those who should be at home. i have decided to allocate for adult social care additional grant funding of £1 billion next year and £1.7 billion the year after, combined with savings from the delayed reforms and more council tax flexibilities, this means an increase in funding available for the social care sector of up to £2.8 billion next year and £4.7 billion the year after, a big increase. but how we look after our most vulnerable is notjust a practical issue but speaks to our values as a society so the decision today will allow the social care system to deliver an estimated 200,000 more care packages over the next two years, the biggest increase

in funding under next two years, the biggest increase infunding underany next two years, the biggest increase in funding under any government of any colour in history. the nhs budget has been increased to record levels to deal with the pandemic. today i am asking the nhs tojoin all public pandemic. today i am asking the nhs to join all public services in tackling waste and inefficiency. we want scandinavian quality alongside singaporean efficiency, both better outcomes for citizens, better value for taxpayers. that does not mean asking people on the front line of an exhausted and burned out to work harder which would not be possible orfair. but it harder which would not be possible or fair. but it does harder which would not be possible orfair. but it does mean harder which would not be possible or fair. but it does mean asking challenging questions about how to reform all our public services for the better. with respect to the nhs, i have asked former health secretary and chair of the norfolk and waverly integrated care system patricia hewitt to help me and the health

secretary achieve that by advising us on how to make sure the new integrated scare —— integrated care boards, local nhs bodies, operate efficiently and with appropriate autonomy and i have also had discussions with nhs england about inflationary pressures on budgets. i recognised efficiency savings alone will not be enough to deliver the services we need. because of difficult decisions taken elsewhere, i will increase the nhs budget in each of the next two years by £33 budget in each of the next two years by £3.3 billion. the chief executive of the nhs has said this should provide sufficient funding for the nhs to fulfil its key priorities. she said it shows the government is serious about its commitment to

prioritise our nhs. 3.3 billion for the nhs, £4.7 billion. care. a record £8 billion package for our health and care system. that is a conservative government putting the nhs first. mr speaker, the nhs and schools in scotland, the nhs and schools in scotland, the nhs and schools in scotland, wales and northern ireland face equivalent pressures. the barnett consequential is mean an extra £1.5 billion for the scottish government, £1.2 billion for the welsh government, £650 million for the northern ireland executive. that is more resources for the schools and hospitals in our devolved nations. next year, the year after and every year thereafter. mr speaker, our

support for public services means despite needing to find £55 billion in savings and tax rises, we are protecting the amount going into public services in real terms over the five year period. if we are going to sustain public services and avoid a doom loop of ever higher taxes and ever lower dynamism, we need economic growth. i now turn... they have never been interested in growth but we on their side... cheering i would like to get to the end of the budget statement like the rest of the _ the budget statement like the rest of the people in this country. chancellor of the exchequer. thank

ou, mr chancellor of the exchequer. thank you. mr speaker- _ chancellor of the exchequer. thank you, mr speaker. let's _ chancellor of the exchequer. thank you, mr speaker. let's start - chancellor of the exchequer. thank you, mr speaker. let's start with l chancellor of the exchequer. thank you, mr speaker. let's start with a| you, mr speaker. let's start with a difficult message for the party opposite. you cannot borrow your way to growth. sound money, sound money is the rock upon which long—term prosperity rests. it is not enough on its own. our plan is designed to build a high wage, high skill economy which leads to long—term prosperity. my right honourable friend the prime minister identified the key to doing less. people, capital and ideas. today's increase in the education budget demonstrates our commitment to people and skills. i now outline three further growth priorities, energy, infrastructure and innovation. cheap, low carbon, reliable energy must sit at the heart of any modern economy. but

hughton's weaponisation of international gas prices has helped to drive the cost of our national energy consumption right up. this year we will be spending the next you're £150 billion on energy, compared to pre—pandemic levels, is the equivalent of paying for a second nhs through energy bills. a third of global emissions came from energy supply. unless we act radically to change our approach, we were both bankrupt the economy and harm the planet. over the long—term, there is only one way to stop ourselves being at the mercy of international gas prices. energy independence combined with energy efficiency. energy independence, so neither vladimir putin or anyone else can use energy to blackmail us and energy efficiency to reduce demand and climate impact as much as

possible. britain is a global leader in renewable energy. last year nearly 40% of our electricity came from offshore wind, solar and other renewables. since 2010, our renewables. since 2010, our renewable energy production has grown faster than any other large country in europe. we need to go even further with a major acceleration. home—grown technologies like offshore went, carbon capture and storage and a bubble, nuclear. this will deliver newjobs, explore opportunities and ensure the clean, affordable energy we need to reach net zero. today i can announce that government will proceed with their new nuclear power plant at sizewell c. the contracts for the initial investment will be signed with relevant parties, including edf, in the coming weeks.

this will create 10,000 highly skilled jobs and provide reliable, low carbon power to the equivalent of 6 million homes for 50 years. our £700 million investment is the first state backing for a nuclear project in over 30 years and represents the biggest step in ourjourney to energy independence. mr speaker, energy independence. mr speaker, energy efficiency isjust energy independence. mr speaker, energy efficiency is just as important. today we set our country a new national ambition. by 2030, we want to reduce energy consumption from the buildings industry by 15%. reducing demand by this manche means a £28 billion saving from the national energy bill, £450 of the average household bill. this must be average household bill. this must be a shared mission with families and businesses playing their part. but so will the government play our

part. in this parliament, we are already planning to invest in energy efficiency a total of £56 billion. today i am announcing a further £6 billion, doubling our annual investment to deliver this new national ambition. investment to deliver this new nationalambition. our investment to deliver this new national ambition. our commitments to the british people is overtime to remove the single biggest driver of inflation and volatility facing british businesses and consumers. my right honourable friend, the business and energy secretary, will publish further details on energy independence plans and launch a new energy efficiency task. shortly. mr speaker, if a modern economy needs secure, clean and affordable energy, it also needs good roads, rail, broadband and sg infrastructure. such connections matter because they allow wealth and opportunity to

spread to every corner of the country. that is why infrastructure is our second growth priority. thanks to decisions by this conservative government, right now workers right across the country are building or maintaining thousands of miles of roads and railways, installing mobile masts and broadband cables to connect to the remotest parts of rural britain, building and repairing hospitals in constructing new wind turbines in the north the. when looking for cuts, capital is sometimes seen as an easy option. doing so limits not our budgets but our future. today i can announce by not catching a penny from capital budgets in the next two years and maintaining them at that level in cash terms for the following three years. that means although we are not growing our capital budget as planned, it will still increase from £63 billion four

years ago to £114 billion next year, £115 billion a year after and remain at that level more than double what it was under the last labour government. smart countries build on their long—term commitments rather than discard them. today i confirm that because of this decision, alongside sizewell c we will deliver the northern powerhouse bail, the new hospitals programme and hs2 and a gigabit roll—out. all of these will be funded as promised with over £600 billion of investment over the next five years to connect our country and grow our economy. our national conservative mission is to level up economic opportunity across the country and that needs investment in infrastructure. i will

also proceed with round two of the levelling up find at least matching the £1.7 billion value of round one. we will also drive growth across the uk by working with the scottish government on the feasibility study for the a 75, supporting the advanced research technology centre in north wales and funding a test event next year. to unlock growth right across the country, we need to make it easier for local leaders to make it easier for local leaders to make things happen without banging on a whitehall door. our brilliant mayors like andy street and ben how the civic chen has shown the power of civic entrepreneurship. we chen has shown the power of civic entreprener today we a deal to and

area and to mayors. deal. taken together, devolution deal. taken together, that investment in future growth .———.— vflitrh’ew ..,., , — — —— rflitherlargeistiiii " i i the largest investment in represents the largest investment in public works for 40 years. our children and grandchildren can be confident this conservative government is investing in the future. energy and infrastructure. now the third growth priority, innovation. mr speaker, we a now the third growth priority, innovati genius ipeaker, we a now the third growth priority, innovati the jsipeaker, we a now the third growth priority, innovati the is ipea newton, a britain is the land of newton, darwin, of

berners—lee. the home of three of the ten universities. the world's top ten universities. the largest life in europe. of the wells, in europerfitne ,, . wells, my europ’e'r'lti the ,, . wells, my honourable the ,, . tunbridgerwetts, my'honourable the for this 7 this possible. making this possible. 21st—century economies will be defined by new quantum i quantum technologies robotics. 7 robotics. we 7 robotics. we need 7 robotics. we need :; a i " ” entrepreneur, i had to get former entrepreneur, i had to get backin former entrepreneur, i had to get back in somewhere... i want to combine our technology and science brilliance without formidable financial services, to turn britain into the world's next silicon valley. from

nigel in 1986. smart regulatofy 7 smart regulatory reform that smart regulatory reform can spur investment from all over the world. today, using brexit world. today, using our brexit freedoms, i confirmed their next steps with our supply—side transformation. by the end of next year we will decide and announce changes to eu regulations and are five growth industries, digital, life sciences, green industries, financial services and advanced manufacturingss financial services and advanced manufacturing. i financial services and advanced manufacturing. 1 asked the chief financial services and advanced manufac' officer, asked the chief financial services and advanced manufac' officer, asked th a:hief scientific officer, who did such a brilliantjob in a pandemic, to lead our work on how to do this. the second lesson of nigel lawson's big bang is the most important driver of global success is not tax subsidies but competition. we will legislate to give their digital markets unit new palace to challenge monopolies and increase the competitive pressure to innovate. to further

spur competition, i had listened to requests from businesses and today i am removing import tariffs on over 100 goods used by uk businesses in their production processes, from car seat parts to bicycle frames. i will also change our approach to investment zones, which will now focus on leveraging our research strengths by being centred on universities and left behind areas to help build clusters for new growth industries. my right honourable friend, the levelling up secretary, will work with mayors, devolved administrations and local partners ahead of the spring budget. i have heard some speculation we might cut the research and development budget today. i believe that would be a profound mistake. in a 2017 manifestly enhanced targets to invest 2.4% of our gdp in our and

d. the uk is close to meeting that target. i want to go further. today i protect our entire research budget and confirm we will increase public funding to 20 billion by 2024 to 2025 as part of our mission to make the united kingdom assigned superpower. finally, nigella lawson's big bang inspires us today but nearly 40 years on, we mistake true to its mission to make the uk the world's most innovative and competitive global financial centre. so to further support investment across economy, i also enhance we are publishing our decision on solvency 2 to unlock tens of billions of pounds of investment for our growth enhancing industries. three priorities for growth, energy, security, investment in infrastructure and a plan to turn the united kingdom into the world's

next silicon valley. transforming british intellectual genius into british intellectual genius into british commercial success. alongside british genius we must remember another great national quality, british compassion. this final part protects the most vulnerable and it is too that i now turn. strong public finances aren'tjust to make accountants happy, it is because we took difficult decisions in 2010 that we could avoid record funding increases for the nhs, the landmark furlough scheme, and the energy price guarantee. today there is a thing we have shown means we can provide targeted support to help our most vulnerable with the cost of living. one of the biggest worries forfamilies is energy living. one of the biggest worries for families is energy bills and living. one of the biggest worries forfamilies is energy bills and i pay tribute to my predecessor and the former prime minister the right

honourable memberfor the former prime minister the right honourable member for south west norfolk for their leadership in this area. this winter, we will stick with their plan to spend £55 billion to help households and businesses with their energy bills, one of the largest support plans in europe. from april we will continue the energy price guarantee for a further 12 months at a higher level of £3,000 per yearfor the 12 months at a higher level of £3,000 per year for the average household, with prices forecast to remain elevated throughout next year, this will mean an average of £500 support for every household in the country. at the same time for the most vulnerable we will introduce additional cost of living payments next year of £900 to households on means tested benefits, £300 to pensioner households, £150 for individuals on disability benefit. we will also provide an additional

£1 billion of funding to enable a further 12 month extension to the household support fund helping local authorities assist those who might otherwise fall through the cracks. for those households who use alternative fuels such as heating oil and lpg, i alternative fuels such as heating oiland lpg, lam doubling alternative fuels such as heating oil and lpg, i am doubling the amount of support from £100, to £200 which will be delivered as soon as possible this winter and before the end of the year will bring forward a new targeted approach to support businesses from next april. i want to go further to support people most exposed to high inflation. around 4 million families live in the social rented sector, almost one fifth of households in england. their rent is set at 1% above the september inflation rate which means on current plans they are set to see rent hikes next year up are set to see rent hikes next year up to 11%. for many that would be

unaffordable. today this government will cap this to a maximum of 7% in 2023 compared to current plans giving a saving of £200 next year on average. this government introduced, i thought they cared about the most vulnerable... this government introduced the national living wage which has been a giant step in eliminating low pay. today i am accepting the recommendation of the low paid commission to increase it next year by 9.7%, that means from april 2023, the hourly rate will be £10 42 which represents an annual pay rise worth over £1600 to a full—time worker. it is expected to benefit over 2

million of the lowest paid workers in our country and keeps us on track for our target to reach two thirds by 2024. it is the largest increase in the uk's national living wage ever. there have also been some representations to keep the uplift to working age and disability benefits below the level of inflation given the financial constraints we face. but that would not be consistent with our commitment to protect the most vulnerable. today i also commit to upgrade such benefits by inflation with an increase of 10.1%. that is an expensive commitment costing £11 billion. but it means 10 million working age families will see a much—needed increase next year which speaks to our priorities as a

government and as a nation. on average a family on universal credit will benefit next year by about £600 and to increase the number of households who can benefit in this decision i have also exceptionally increased the benefit cap with inflation next year. finally, i have talked a lot about british values, compassion, hard work, dignity, fairness. there is no more british value than our commitment to protect and honour those who built the country we live in. so to support the poorest pensioners i have decided to increase the pension credit by 10.1% which is worth up to £1470 for a couple. the cost of living crisis is harming notjust our poorest

pensioners but all pensioners. because we have taken difficult decisions elsewhere today, i can also announced we will fulfil our pledge to the country to protect pensions triple lock. in april, the state pension will increase in line with inflation, £870 increase, which represents the biggest ever increase in the state pension, and to the millions of pensioners who will benefit, i say now and always, this government is on your side. mr speaker, there is a global energy crisis, a global inflation crisis, a global economic crisis. but the british people are tough inventive and resourceful. we have risen to bigger challenges before. we aren't

immune to these headwinds but with this plan for stability, growth and public services, we will face into the storm. there may be a recession made in russia but there is a recovery made in britain. and we commit to our plan today with british resilience and british compassion. because of the difficult decisions we take today, we strengthen our public finances, bring down inflation, protectjobs, we build the first state backed nuclear station for 30 years, we continue the biggest programme of capital investment for 40 years, protect standards in schools, cut nhs waiting times, funded social care, cat energy bills, support those on benefits, protect workers with the biggest increase in the national living wage, and our pensioners on the triple lock with the biggest ever increase in the

state pension. this is a balanced plan for stability. a plan for growth, and a plan for public services. it shows that you do not need to choose either a strong economy or good public services which conservatives and only with conservatives and only with conservatives you get both. i commend this statement to the house. studio: jeremy hunt being congratulated by the prime minister and his colleagues in the treasury. time to hear the shadow chancellor. thank you. so, here we are, the end of 2022. three prime ministers, four chancellors, and four budgets later. where do we find ourselves? in a worse place than we started the year. inflation spiralling, growth

plunging, living standards are falling. mr speaker, britain is a great country with fantastic strengths but because of this government's mistakes we are being held back. what people will be asking themselves at the next election is this. army are my family better off with a conservative government? and the answer is no. the mess we are in is the result of 12 weeks of conservative chaos but also 12 years of conservative economic failure. growth dismal, investment down, wages squeezed, public services crumbling. what does the chancellor had to offer today? more of the same. with working people paying the price for his

failure. the chancellor should have come here today to ask for forgiveness. at the very least he could have offered an apology. but no, instead he says that his predecessor was correct in his analysis at the mini—budget, which put our economy into freefall. all the country got today was an invoice for the economic carnage this government has created. never again can nee—conservatives government has created. never again can neo—conservatives be seen as the party economic competence. now, it has been clearfor party economic competence. now, it has been clear for weeks what they wanted to do. step one, blame globalfactors. step what they wanted to do. step one, blame global factors. step two, pretend the mini—budget is nothing to do with any of them. step three, portray the chancellor and prime minister as the people who can clear up the mess of their party's own making.

pa rty�*s own making. and party's own making. and step four, attempt to lay some simple traps for the labour party. they have even had george osborne in to advise on how to party like it is 2010. but this isn't a game. this is about people's lives, their livelihoods, their ability to pay the mortgage, to pay the rent, to pay the bills after 12 years of conservative stagnation that has left our country so much worse off. it is about the fact that when the global storm hits, we are uniquely exposed because of the choices that the conservatives have made. now, nobody doubts that the covid pandemic and war in ukraine have had profound implications. and the whole house is united in its condemnation of russia's aggression. but

britain's problems started before the covid pandemic and they started before the illegal invasion of ukraine. the uk has grown by an average of 1.4% a year under the conservatives, compared to 2.1% a yearin conservatives, compared to 2.1% a year in the labour years before that. we are the only g7 economy that. we are the only g7 economy thatis that. we are the only g7 economy that is still poorer than before the pandemic. as the governor of the bank of england told the treasury select committee yesterday, the us has grown by 4.2% since the pandemic, the gdp of eurozone countries is 2.1% higher. and yet the uk is 0.7% smaller than at the start of the pandemic. we aren't recovering, we are heading into recession as the obr confirmed today. the governor described these differences as dramatic, and stark. how does the chancellor describe them and how does he explain them?

this is the price of a decade of tory choices and economic failure and is set to continue with the imf forecasting that out of the 38 most industrialised economies the uk will have the slowest growth of any in the next two years. the chancellor is saying today that he will be honest, so let us be honest. no one was talking about cuts to public spending two months ago, and no other advanced economy is cutting spending or increasing taxes on working people as they head into recession. this government has forced our economy into a doom loop where low growth leads to higher taxes, lower investment, squeezed wages, when a running down of public services. all of which hits economic growth again. instead of learning from the mistakes of the last decade, is simply repeating them. we

need to break free from this vicious cycle of stagnation with fairer choices and a proper plan for economic growth. the chancellor and prime minister are trying to convince us that britain faces problems that are nothing to do with them, that the mini—budget which imposed a tory mortgage premium, but in peril, trashed our reputation around the world, was alljust a bad dream. it is their bobby ewing strategy. downing street as dallas. old cast members return as if nothing had happened. with tangled plotlines. the truth is, it has lost all credibility and everyone knows it is long past time the series was cancelled stop the problem for the british people is this... it is not

a dream, it is the everyday nightmare of tory britain. mr speaker, the conservatives would have us believe they are not responsible for the last 12 years of failure. in doing so, they take the british people full. millions are already worried sick about how to make ends meet and are now facing added stress of higher mortgage payments. the prospect of homeownership becoming more and more remote and rents going through the roof. what does this mean? family holidays cancelled. savings depleted. hopes for the future replaced by sleepless nights. all of this on top of the fact that the average worker is earning less today than when the tories came to power 12 years ago. the government has presided over the biggest wage squeeze in centuries. this was the

crisis made in downing street and it is ordinary working people who are paying the price. now mr speaker, as i was coming into westminster today, i was coming into westminster today, i read a timely warning from the police about pickpockets in the area. they warn, you may have an idea of what a pickpocket looks like but they are far less likely to stand out in a crowd than you think. they may work in teams to try to distract the target. one of their tactics is where a thief would appear to be over friendly while pickpocketing you. i must report that in the last hour, the conservatives have picked the pockets of purses and wallets of the entire country as the chancellor has deployed alarm and stealth taxes, taking billions of pounds from ordinary working people. a conservative double whammy which sees frozen tax thresholds and

double—digit inflation erodes the real value of people's wages. just one of those freezes, in the personal allowance, will cost an average earner more than £600, making it even harder to make ends meet. at the same time, the government is forcing local councils to put up council tax. the chancellor seems to have confirmed today a council tax bombshell worth £100 for a typical band d property, taking council tax above £2000 for the first time. local people, including those with conservative councils, will be. pay more because of the destruction the conservatives have wreaked on our economy. this at a time when pencils are already in dire straits because of cuts by conservative governments. —— when councils are already in dire straits. they probably sat around a

table in downing street thinking it was a clever trick. no one is to blame except the government that has beenin blame except the government that has been in powerfor ten years, not local authorities. more taxes, been in powerfor ten years, not localauthorities. more taxes, more inflation, higher mortgages. instead of tricks and stealth taxes, why don't they have a proper economic plan for britain that puts working people at the heart? why do they refuse to have a real industrial strategy that gives business certainty and unlocks investment and means britain can lead the world in industries in the future? mr speaker, the chancellor is trying to claim this statement today is there. yet we learn that of all the things he could save from the wreckage of the kamikaze budget that he chooses to press ahead with, is the plan to lift the cap on bankers bonuses. at a time when he is urging wage

restraints for everybody else, how can he remotely claim this is fair? after weeks of will he, won't he? we learned today that the chancellor will not, after all, the clamping down on non doms. how can he possibly claim this is fair? he refuses to act and i wonder why! maybe that was the only policy that he cannot get signed off by number 10 downing street. i say, he cannot get signed off by number 10 downing street. isay, if he cannot get signed off by number 10 downing street. i say, if you make britain your home, you should pay your taxes. and what about the private equity managers? earning millions, who benefit from a tax break on their bonuses, meaning they pay far less tax as a proportion of

their incomes than ordinary, hard—working people. did the chancellor close that loophole today and make sure they pay their fair share of tax? he did not. he made ordinary working people pay the price instead. mr speaker, time and time again, we have seen how quickly the conservatives are to raise taxes on working people. —— how quick the conservatives are. he is asking working people to take the hit with less money in their pockets in the run—up to christmas but also for years to come. if you are a banker, a non dom, do not worry, scrooge has not cancelled your christmas. non doms do not pay taxes, that is the

whole point. he did not close that loophole today. this is before... this is before we even get onto energy. they do not pay taxes. artist before we even get onto energy giants. —— that is before. after months of resistance, the government has been dragged kicking and screaming to extend the windfall tax. they still leave billions of pounds on the table, profits which are the windfalls of wall, because they have failed to close a huge loophole they created handing out massive tax breaks to oil and gas giants for doing that things they can to do anyway. for those wondering why, some energy giants are paid know when full tax in the

last quarter, despite record profits and eye watering bills for consumers, the answer is, the decision of his prime minister made when he was chancellor, confirmed by the current chancellor, lets energy giants off the hook once again. mr speaker, that government has announced plans for energy bills next year. bill payers will still see prices go up next spring, leaving far too many people wondering how they will make ends meet. for every £1 of windfall tax left on the table, people are faced with higher prices on their bills. the failure of the tories on energy goes back much further. they closed down gas storage, blocked onshore wind and solar and slashed support for home insulation. today the chancellor says he will act on energy efficiency. i am afraid it is far too late. we called for the installation of 2 million homes a

year more than 12 months ago, that could cut bills i £1000 but notjust for one year but every year to come. they did nothing. insulation levels in 2021 were 20 times lower than in 2010 because of their neglect. and now he proposes a package but we had to wait until 2025 for them to act. why? when people are facing a bills crisis now, years and years will have gone by while he sits back, millions of families could have been helped and they have not been. and still they block renewable power, like onshore winds, which could bring energy bills down, create good jobs in all parts of the country and ensure that britain can lead the way in the industries of the future. clean power is the right solution to the energy price crisis but yet again the conservatives have failed. they have failed to protect us from

future shocks, failed to tackle the cost of living crisis and failed to take decisions in the interests of our country. it is because they have failed to grow the economy, they happened to bring forward yet another statement with tax rises and spending cuts. the last prime minister and chancellor embarked on a reckless sugar rush that abandoned fiscal rectitude and they all cheered for it. the current prime minister and chancellor have even up on growth altogether. how do we know? because the office for budget responsibility has seen the plans and downgraded growth in the months and downgraded growth in the months and years ahead. achieving the levels of growth this country needs is not like clicking on a switch. we need a serious long—term plan to get our economy growing again. powered by their talents and efforts of millions of ordinary working people and thousands of businesses. we need

and thousands of businesses. we need a fairer, greener, more dynamic economy creating good jobs in every part of the country in home—grown renewables, in green hydrogen, carbon capture and storage with labour's green prosperity plan with a modern industrial strategy, where the government works hand—in—hand with business by properly fixing business rates so that small businesses and high street businesses and high street businesses thrive again. and fixing the holes in the government's brexit deal to help uk businesses trading compete in the world. and ensuring that britain is the best place to start and grow a business, that is what a labour will do. start and grow a business, that is whata labourwill do. mr start and grow a business, that is what a labour will do. mr speaker, while our public services are struggling, and working people are being stretched, the rampant waste and cronyism from this government continues apace. it is not seen by the chancellor that his government

dished out billions of pounds of contracts to friends of donors of the conservative party. the latest prime minister has spent so much time when he was chancellor practising his signature for his glossy instagram graphics that he failed to put into place even the most simple checks on coronavirus support. that is why lord agnew described the current prime minister's failures as schoolboy errors. the prime minister left the doors to the vaults wide open to organised criminals and drugs gangs. they helped themselves to £67 billion of taxpayer's money, money that the government is failing to retrieve. and last month, last month it was slipped out that the taxpayer protection task force, set up to get this money back, has been wound down. that government has just given up down. that government has just given up and the conservatives are turning

yet again to our crucial public services to make up the money. mr speaker, the fraudsters may think they had got away with it but a labour government will hunt them down. the country are sick of being ripped off by the tories. we want our money back! because of tory failure, are crumbling public services are set to suffer even more. ordinary people lose yet again. never before have people paid so much in tax and yet got so little in return. at the weekend, the chancellor admitted that the nhs was already on the brink of collapse. 7 million people on nhs waiting list. how much longer will that list get? three in ten people are leaving education without gcse english and

maths. what will it do to our society and future economy? why did the tories have an ideological objection to putting vat on school fees, which the chancellor himself admits will raise £1.7 billion? by their actions, admits will raise £1.7 billion? by theiractions, it admits will raise £1.7 billion? by their actions, it is clear the government does not value public services or the contribution of those working in bonn. what to be here today? reviews on schools and the nhs workforce, on social care and waste. what we need is action. the time for delivery is now, not time for more reviews. now we hear from the chancellor, he had previously said that one of his biggest regrets as health secretary was failing to fix social care. today he has further delayed the government's much honest social care cap. another broken promise after 12 years of tory failure on social care. the tories have trashed public

services and the statement today has proved they are doing nothing to turn that around. mr speaker, the conservatives have crashed our economy, given up on growth, and sent information through the roof. as usual, it is ordinary working people who are paying the price. it is a familiar tune. every mortgage they raise, every cut they make every tax they break, the conservatives are costing you. today we have heard more excuses and unfair choices. they have failed to tackle the cost of living crisis, failed to show how they will fix our public services, failed to show how they will deliver growth, and they have no plan for the future of our country. and everything we have heard today and after 12 long years of tory failure, the conclusion that we must come to is that britain can

no longer afford a conservative government. let me start with the chair of the select— let me start with the chair of the select committee... studio: that brings us to the end of the autumn statement and the response by the shadow chancellor rachel reeves. there is an awful lot to unpack there. perhaps one of the most starting sentences came early on in the statement, britain is in recession. he said the economy will shrink by 1.4% next year, then growth of 1.3% in 2024, 2.6% in 2025. as we note the headline figure of inflation is at 11.1%. jeremy hunt said the office for budget responsibility agreed that

global factors were the primary cause of that high level of inflation, whereas labour was very keen to root it into what she called the kamikaze budget of liz truss, former conservative prime minister, and her chancellor kwasi kwarteng. they did confirm that pensions will rise by inflation, by over 10%, and the same with benefits. that rating will cost £11 billion a year. freezing tax allowances and thresholds many of them until 2028. but there was a somewhat surprising announcement of an increase in education spending, a commitment to schools of £2.3 billion a year, and £3.3 billion a yearfor schools of £2.3 billion a year, and £3.3 billion a year for the tax threshold is frozen, the top

rate tax threshold reduced from 150,000, to £125,000. those increases in education spending, and £2.8 billion for social care. overseas aid to remain at 0.5% of gdp, not going back up to 0.7% untilthe at 0.5% of gdp, not going back up to 0.7% until the economy can. stamp duty holiday ends march 2025, another measure of liz truss, the sizewell c nuclear plant to go ahead, extra spending for devolved governments and departmental spending to rise by 1% after 2025. many decisions being delayed until 2025 because we may well have had an election. energy price cap increases from april, the average bill of around £2500, will rise to £3,000.

the pensions triple lock protected. northern powerhouse rail and hs2 to go ahead. national living wage to rise from april. and benefits to rise from april. and benefits to rise in line with inflation. social rents capped at 7% in 2023. an awful lot to digest. ina in a moment we will speak to the chief secretary to the treasuryjohn glenn who will be joining us. vicki, your impressions of the budget, how politically palatable it will be and whether it is balanced in the wayjeremy hunt said. conservative mps having heard there was this very difficult news coming and knowing the circumstances, they feel the only chance conservatives have at the next election is if voters think this is fair, the

distribution of the pain is fair. that is why the first and only tax change the chancellor went into in detail was the very wealthy will pay more, more people will pay that top rate of tax. that was deliberate. he did not go into detail of the freezing of tax thresholds, stealth taxes, because they sound benign. in the end it means millions more will pay more tax, no doubt about that. the other side was protection for some, pensioners and those on benefits, that is about the fairness argument. the education spending, not many were thinking about that, but it is important to look at the detail. the energy package, there will be a cap for the average household, £3,000 a year, but lots of people will no longer get that rebate so they will pay higher bills without help. there will be millions looking at this knowing they will be

hundreds of pounds a year worse off. the question for labour, which measure will they oppose if any, we didn't get any sense. two budgets in one, a budget for after— two budgets in one, a budget for after the — two budgets in one, a budget for after the election, and that is the consolidation, the £55 billion, 2% of gdp, _ consolidation, the £55 billion, 2% of gdp, the down payment to the markets — of gdp, the down payment to the markets on credibility, for the future — markets on credibility, for the future. the opposition would argue you have _ future. the opposition would argue you have left the problem to us. but before _ you have left the problem to us. but before that, — you have left the problem to us. but before that, far more support in terms _ before that, far more support in terms of— before that, far more support in terms of government spending and energy— terms of government spending and energy spending. actually a net giveaway excluding the energy package, next year, in terms of supporting _ package, next year, in terms of supporting the economy, because the government wants to and its ability back with _ government wants to and its ability back with markets so interest rates are lower. — back with markets so interest rates are lower, but it is worried about recession— are lower, but it is worried about recession and does not want to belong — recession and does not want to belong it — recession and does not want to belong it so there is extra money

out there — belong it so there is extra money out there. tax, gdp, caused a lot of problems— out there. tax, gdp, caused a lot of problems for— out there. tax, gdp, caused a lot of problems for rishi sunak, it is now at the _ problems for rishi sunak, it is now at the highest level since the second — at the highest level since the second world war, 37.5%, even higher than the _ second world war, 37.5%, even higher than the level that caused him problems as chancellor. windfall taxes were yielding £55 billion— windfall taxes were yielding £55 billion over _ windfall taxes were yielding £55 billion over the _ windfall taxes were yielding £55 billion over the next _ windfall taxes were yielding £55 billion over the next five - windfall taxes were yielding £55 billion over the next five years, i windfall taxes were yielding £55| billion over the next five years, a bi! billion over the next five years, a big number _ billion over the next five years, a big number they— billion over the next five years, a big number. they went _ billion over the next five years, a big number. they went over- billion over the next five years, a big number. they went over thei billion over the next five years, a i big number. they went over the low carbon— big number. they went over the low carbon electricity— big number. they went over the low carbon electricity generators, - big number. they went over the low carbon electricity generators, that l carbon electricity generators, that is £4 _ carbon electricity generators, that is £4 billion~ — carbon electricity generators, that is 54 billion. 14— carbon electricity generators, that is £4 billion. 14 billion _ carbon electricity generators, that is £4 billion. 14 billion in - carbon electricity generators, that is £4 billion. 14 billion in total- is £4 billion. 14 billion in total next — is £4 billion. 14 billion in total next year _ is £4 billion. 14 billion in total next year. and _ is £4 billion. 14 billion in total next year. and looking - is £4 billion. 14 billion in total next year. and looking at - is £4 billion. 14 billion in total- next year. and looking at financial markets, — next year. and looking at financial markets, they— next year. and looking at financial markets, they are _ next year. and looking at financial markets, they are pretty- next year. and looking at financial markets, they are pretty calm, . next year. and looking at financial i markets, they are pretty calm, they don't _ markets, they are pretty calm, they don't mind — markets, they are pretty calm, they don't mind what— markets, they are pretty calm, they don't mind what they _ markets, they are pretty calm, they don't mind what they have - markets, they are pretty calm, they don't mind what they have heard. i don't mind what they have heard. some _ don't mind what they have heard. some is— don't mind what they have heard. some is to — don't mind what they have heard. some is to do _ don't mind what they have heard. some is to do with _ don't mind what they have heard. some is to do with because - don't mind what they have heard. i some is to do with because energy costs— some is to do with because energy costs have — some is to do with because energy costs have come _ some is to do with because energy costs have come down, _ some is to do with because energy costs have come down, what - some is to do with because energy| costs have come down, what would costs have come down, what would cost 60 _ costs have come down, what would cost 60 billion, _ costs have come down, what would cost 60 billion, the _ costs have come down, what would cost 60 billion, the energy- costs have come down, what would cost 60 billion, the energy support| cost 60 billion, the energy support up cost 60 billion, the energy support up to— cost 60 billion, the energy support up to march— cost 60 billion, the energy support up to march is— cost 60 billion, the energy support up to march is now— cost 60 billion, the energy support up to march is now estimated to i cost 60 billion, the energy support. up to march is now estimated to cost 43 billion, _ up to march is now estimated to cost 43 billion, and — up to march is now estimated to cost 43 billion, and what— up to march is now estimated to cost 43 billion, and what was _ up to march is now estimated to cost 43 billion, and what was running - up to march is now estimated to cost 43 billion, and what was running at. 43 billion, and what was running at 60 billion—

43 billion, and what was running at 60 billion every— 43 billion, and what was running at 60 billion every six _ 43 billion, and what was running at 60 billion every six months, - 43 billion, and what was running at 60 billion every six months, will. 60 billion every six months, will come _ 60 billion every six months, will come down _ 60 billion every six months, will come down to— 60 billion every six months, will come down to 25 _ 60 billion every six months, will come down to 25 billion, - 60 billion every six months, will come down to 25 billion, from . 60 billion every six months, will- come down to 25 billion, from march onwards— come down to 25 billion, from march onwards because _ come down to 25 billion, from march onwards because they— come down to 25 billion, from march onwards because they will— come down to 25 billion, from march onwards because they will make - come down to 25 billion, from march onwards because they will make it. onwards because they will make it slightly— onwards because they will make it slightly less — onwards because they will make it slightly less generous— onwards because they will make it slightly less generous but - onwards because they will make it slightly less generous but with - slightly less generous but with extra _ slightly less generous but with extra giveaways _ slightly less generous but with extra giveaways to _ slightly less generous but with extra giveaways to people - slightly less generous but with extra giveaways to people on i slightly less generous but with - extra giveaways to people on lowest incomes _ extra giveaways to people on lowest incomes. financial— extra giveaways to people on lowest incomes. financial markets - extra giveaways to people on lowest incomes. financial markets are - extra giveaways to people on lowest incomes. financial markets are likei incomes. financial markets are like this because — incomes. financial markets are like this because they— incomes. financial markets are like this because they don't _ incomes. financial markets are like this because they don't have - incomes. financial markets are like this because they don't have to - this because they don't have to stump— this because they don't have to stump up— this because they don't have to stump up and _ this because they don't have to stump up and lend _ this because they don't have to stump up and lend as- this because they don't have to stump up and lend as much- this because they don't have to stump up and lend as much to| this because they don't have to i stump up and lend as much to the government— stump up and lend as much to the government as _ stump up and lend as much to the government as they— stump up and lend as much to the government as they had _ stump up and lend as much to the government as they had thought. | government as they had thought. john glenn, — government as they had thought. john glenn, tough— government as they had thought. john glenn, tough decisions- john glenn, tough decisions announced today as jeremy john glenn, tough decisions announced today asjeremy hunt announced today as jeremy hunt admitted. do you now accept much of the substance of those tough decisions are in part necessary because of the economic mismanagement of liz truss and kwasi kwarteng and the mini—budget in september? no, i think mistakes were made and when the chancellor came to office he acknowledged that and corrected the mistakes of that mini—budget within three days. what we are dealing with here is a set of global challenges particularly inflation. inflation at 11%, a rate we haven't

seen for 40 years, that gets everywhere, damages savings, damages the prospects of growth in the economy. we need stability, to get back to growth and... but people are already struggling and suffering more with higher taxes, we now know they will be even higher than thought, higher mortgage payments. because of those mistakes and economic mismanagement of a conservative government. we need to look at the global context. i know you would like to. you have to admit as a result, you actually said it wasn't as a result of the mini—budget, the higher expenses people are struggling with are a direct consequence of the mini—budget. no, the obr says the measures we have taken today will reduce the duration and depth of that recession. what we have put together todayis recession. what we have put together today is a package that protects our

public services and supports the most vulnerable in society, but also gives the markets reassurance we have got stability in public finances. markets that were in turmoil as a result of the mini—budget. rishi sunak says his mandate, legitimacy as prime minister, comes from the last general election, from that mandate the conservatives's manifesto in 2019 which repeatedly promised to deliver a low tax economy, to protect the incomes of hard—working families. where is your mandate for all these tax rises that have been announced byjeremy hunt? when we had the general election we did not anticipate them four months later we would have to shut down the economy because of kevin. rishi sunak has said that would be his mandate as prime minister. when we came out of that and borrowed tens of billions, we then had a disruption to the supply of energy largely caused —— causing

inflation at unprecedented levels. that drives us to different considerations. we could not anticipate a this. of course conservatives believe in lower taxes but we have got to recognise inflation is the primary concern we have to deal with in short term. you are talking rightly historically in 2019 it is a long time ago but let us look at what rishi sunak promised not that long ago in august i am going to cut taxes and that is why today i set out a radical set of reforms to cut the basic rate of income tax by a fifth under my leadership because as conservatives we believe in hard work. i want to reward hard work and allow people _ i want to reward hard work and allow people to _ i want to reward hard work and allow people to keep more of their hard earned _ people to keep more of their hard earned money, so income taxes would fall at— earned money, so income taxes would

fall at the _ earned money, so income taxes would fall at the fastest rate since nigel lawson— fall at the fastest rate since nigel lawson and margaret thatcher. that _ lawson and margaret thatcher. that was — lawson and margaret thatcher. that was in august. we lawson and margaret thatcher. that was in august.— that was in august. we can all understand — that was in august. we can all understand the _ that was in august. we can all understand the impact - that was in august. we can all understand the impact of- that was in august. we can all i understand the impact of inflation and energy impact in terms of household bills is phenomenal. that is why the government has acted to give direct support to the most vulnerable. that needs to be paid for. we have realised we cannot borrow for unrealistic levels. we have got to date a plan for stability, growth and protection of public services, helping the most vulnerable, updating benefits, updating, holding the triple lock and helping those who can't own more who are pensioners, but also supporting people across the economy. inflation was already 9% when rishi sunak— inflation was already 9% when rishi sunak made that promise, it is now 11%. sunak made that promise, it is now ii%~ the _ sunak made that promise, it is now 11%. the difference isn't that much. he promised to bring down income tax. he promised to bring down income tax it— he promised to bring down income tax. it suggests something happened

which was _ tax. it suggests something happened which was the causal factor for you having _ which was the causal factor for you having to _ which was the causal factor for you having to go further to give almost a blood _ having to go further to give almost a blood sacrifice to the market. this _ a blood sacrifice to the market. this 50 — a blood sacrifice to the market. this 50 billion consolidation by 2028 _ this 50 billion consolidation by 2028 is — this 50 billion consolidation by 2028 is a — this 50 billion consolidation by 2028 is a single g7 country announcing this. the _ announcing this. the chancellor has been transparent that this has not been an easy set of decisions. it has been spread over difficult tax decisions for businesses and individuals as well as spending considerations. your case is it is all global, this suggests— your case is it is all global, this suggests if— your case is it is all global, this suggests if no other g7 country is doing _ suggests if no other g7 country is doing this, — suggests if no other g7 country is doing this, it is not global but domestic. _ doing this, it is not global but domestic, only the uk is taking 2% out of— domestic, only the uk is taking 2% out of the — domestic, only the uk is taking 2% out of the economy whilst in a recession _ recession. the - recession. the intensification of the pressures on household bills, driven by inflation, driven by the increase in cost of energy which is a direct result to what putin has done in ukraine... the invasion happened in february.

when i _ the invasion happened in february. when i worked with rishi sunak as chancellor we brought in interventions that moved with the understanding of the stress it would bring to the economy. this is a practical response. lots of people watching will think you or— lots of people watching will think you or somebody— lots of people watching will think you or somebody should - lots of people watching will thinki you or somebody should apologise lots of people watching will think i you or somebody should apologise for what has _ you or somebody should apologise for what has happened. _ you or somebody should apologise for what has happened. it _ you or somebody should apologise for what has happened. it sounded - you or somebody should apologise for what has happened. it sounded for. what has happened. it sounded for what has happened. it sounded for whatjeremy— what has happened. it sounded for whatjeremy hunt— what has happened. it sounded for what jeremy hunt was _ what has happened. it sounded for what jeremy hunt was saying i what has happened. it sounded for. what jeremy hunt was saying actually the conservative _ what jeremy hunt was saying actually the conservative government- what jeremy hunt was saying actually the conservative government is- the conservative government is taking _ the conservative government is taking no— the conservative government is taking no responsibility- the conservative government is- taking no responsibility whatsoever for any _ taking no responsibility whatsoever for any of _ taking no responsibility whatsoever for any of this _ for any of this. i don't - for any of this. i don't think. for any of this. i i don't think that is for any of this. - i don't think that is what for any of this. _ i don't think that is what is for any of this. — idon't think that is what is being i don't think that is what is being said. the prime minister and chancellor both said very clearly when they came into office three weeks ago, four weeks ago they regretted very much what happened. ourjob now regretted very much what happened. our job now as regretted very much what happened. ourjob now as government ministers is to put this right, bring stability, set the conditions for growth, and recognise we have an obligation and duty to look after the most vulnerable in society compassionately. the windfall tax is doing the heavy lifting _ the windfall tax is doing the heavy lifting. something the previous prime —

lifting. something the previous prime minister said they weren't ideal— prime minister said they weren't ideal logically in favour of. you have _ ideal logically in favour of. you have taken labour party policy and replicated — have taken labour party policy and replicated it. i don't accept that. replicated it. i don't acce -t that. �* , i don't accept that. but it is true. if i don't accept that. but it is true. if anything _ i don't accept that. but it is true. if anything you — i don't accept that. but it is true. if anything you have _ i don't accept that. but it is true. if anything you have gone - i don't accept that. but it is true. if anything you have gone further than labour. what people in business to tell— than labour. what people in business to tell me _ than labour. what people in business to tell me is— than labour. what people in business to tell me is if your aim is to bring — to tell me is if your aim is to bring debt— to tell me is if your aim is to bring debt as a percentage of gdp down, _ bring debt as a percentage of gdp down, don't forget about the growth. there _ down, don't forget about the growth. there is— down, don't forget about the growth. there is in— down, don't forget about the growth. there is in here much to stop businesses hibernating this winter. no additional tax incentives to invest — no additional tax incentives to invest. you have given up growth. ido i do not think that is true. with the tax on energy companies we need to maintain investment. we have bought in the electricity generators because they are enjoying profits

that are extreme and beyond anything that are extreme and beyond anything that can be