now it's time for your questions answered. now as the uk's voters begin to digest how labour's first budget in m years will impact them, the bbc has received hundreds of questions from viewers asking what it means for them. here to answer your questions in this special budget edition of your questions answered, we have our political correspondent helen catt in westminster. and we also have our economics correspondent andy verity and cost of living correspondent kevin peachey here with me in the studio. we have a question from anita who says, for several months which will reeves has talked

about £22 billion black hole, will tax increases be used to pay off their debt? i will tax increases be used to pay off their debt?— will tax increases be used to pay off their debt? i think the answer is _ pay off their debt? i think the answer is yes. _ pay off their debt? i think the answer is yes. one _ pay off their debt? i think the answer is yes. one of- pay off their debt? i think the answer is yes. one of the - pay off their debt? i think the l answer is yes. one of the main messages from the budget yesterday. the status of the £22 billion black hole which is a problematic phrase in the first place is in question. the office for budget responsibility, which looks at these matters, did a review of what the government said, claiming the previous government had not been frank with the office for budget responsibility about the spending pressures on things like public—sector pay having to go up by more than projected, but also cost of asylum seekers, housing them, being much higher, and what they have done is a review and they have done is a review and they have done is a review and they have said, yes, it should have been much higher than we estimated at the time. but actually, we cannot say how much higher, which is half helpful. the government says there was a meeting in february were £9.5 billion of difference was identified which did not

feed into the full cost of the previous government. anyway, it comes out in the wash because rachel reeves the same partly because of that we have to raise taxes, but it cannot account for all of the rise in taxes, we are talking about 36-40,000,000,000, and 70 billion rise in spending, £22 billion rise in spending, £22 billion is only a third of that. , . ., , ., ., that. explain what you mean when you — that. explain what you mean when you say _ that. explain what you mean when you say it _ that. explain what you mean when you say it is _ that. explain what you mean i when you say it is problematic anyway to refer to it as a black hole?— anyway to refer to it as a black hole? i, . , , ., black hole? physicists would ob'ect black hole? physicists would object because _ black hole? physicists would object because you - black hole? physicists would object because you cannot . black hole? physicists would | object because you cannot fill a black hole, you cannot look at it, it sucks up the light, difficult time. what you are talking about is the difference between an uncertain forecast of how much the economy will grow over the next five years and an arbitrarily chosen political target for what you want to be happening to debt in five years' time. the targets, although projected to be met, when they have the budget, five years from now, who knows? the whole economy could be very different. a question as to whether the fiscal tail wags the economy dog and they end up

doing arithmetic handstands in order to make sure on paper to meet the target five years from now. should we be setting policy that way? it never really works out that way. hopefully we will not be upsetting any physicists with the next question which will be for helen. from benjamin in bradford, how unprotected government departments are going to be impacted by the budget? it going to be impacted by the budaet? , ., budget? it is quite a good question _ budget? it is quite a good question because - budget? it is quite a good question because we - budget? it is quite a goodj question because we have budget? it is quite a good - question because we have not yet had — question because we have not yet had rachel reeves's full spending review to set out the money — spending review to set out the money she is giving to departments for the rest of the parliament. but what we have seen — parliament. but what we have seen is — parliament. but what we have seen is how you put a lot of money— seen is how you put a lot of money into departments like the department of health, the nhs, more _ department of health, the nhs, more money into schools, and it is very— more money into schools, and it is very much— more money into schools, and it is very much up front in the first— is very much up front in the first couple of years and there has been _ first couple of years and there has been questions raised by people — has been questions raised by people like the think tank institute for fiscal studies about— institute for fiscal studies about what happens if it does not pay — about what happens if it does not pay off for rachel reeves, if we _ not pay off for rachel reeves, if we get — not pay off for rachel reeves, if we get to the end of the couple _ if we get to the end of the couple of years and the

pressures are still there and perhaps— pressures are still there and perhaps the economy has not really — perhaps the economy has not really grown, what does she do? does _ really grown, what does she do? does it— really grown, what does she do? does it mean she has the pencilling pretty hefty spending restrictions on other government departments? of course — government departments? of course it— government departments? of course it is worth saying the conservatives' plans had very tight— conservatives' plans had very tight spending pencilled in for those — tight spending pencilled in for those departments over the next few years — those departments over the next few years which people at the iff amongst others had raised serious — iff amongst others had raised serious questions and criticisms over how credible they— criticisms over how credible they were. criticisms over how credible they were-— criticisms over how credible they were. let us talk about some of— they were. let us talk about some of the _ they were. let us talk about some of the tax _ they were. let us talk about some of the tax rises - they were. let us talk about some of the tax rises talked j some of the tax rises talked about in the budget. kevin, this question is for you, from mike, he asks very simply, when will capital gains tax rise? simple question and simple answer, it has happened. this is an immediate change following the budget. there were lots of measures on a budget, it was packed, but this one was one of an immediate change and that is not true of every policy. always worth

paying close attention to that. of course, capital gains tax, a tax on assets that have increased in value when you come to sell them. so, the rates of those taxes have increased, so it will cost probably the wealthier end of the spectrum more, it does not affect property, they have been frozen as they were before. so, it is one of the big tax changes that we saw from rachel reeves yesterday, which she says were unavoidable. i reeves yesterday, which she says were unavoidable. i might brin: in says were unavoidable. i might bring in helen _ says were unavoidable. i might bring in helen here _ says were unavoidable. i might bring in helen here on - says were unavoidable. i might bring in helen here on that - bring in helen here on that subject. the issue of what is unavoidable, what has got to be done. politically, what do you make of the decision for labour to do that?— to do that? this is the whole olitical to do that? this is the whole political debate _ to do that? this is the whole political debate that - to do that? this is the whole political debate that is - political debate that is surrounding this budget. we had the specific promises that labour— the specific promises that labour made in the manifesto on tax around — labour made in the manifesto on tax around not raising the

taxes _ tax around not raising the taxes on _ tax around not raising the taxes on working people and specifically talking about national insurance, the rates of income tax, vat. a question about— of income tax, vat. a question about whether the national insurance rise we have seen is a breach— insurance rise we have seen is a breach of— insurance rise we have seen is a breach of the manifesto or not — a breach of the manifesto or not. questions being asked about— not. questions being asked about more general pitch rachel reeves — about more general pitch rachel reeves was making at the election, that she said several tintes— election, that she said several times she _ election, that she said several times she had no plans to raise taxes _ times she had no plans to raise taxes beyond what she had already— taxes beyond what she had already set out and she was saying — already set out and she was saying she was not going to be a big _ saying she was not going to be a big tax— saying she was not going to be a big tax chancellor, not her intention, _ a big tax chancellor, not her intention, they were notjust going — intention, they were notjust going to _ intention, they were notjust going to throw money at things, things— going to throw money at things, things had to come with reform. what _ things had to come with reform. what we — things had to come with reform. what we have got yesterday... bil what we have got yesterday... big spending, big boring budget... a lot of questions being — budget... a lot of questions being asked, was it really made clear. _ being asked, was it really made clear. the — being asked, was it really made clear, the pitch made to voters at the — clear, the pitch made to voters at the election? rachel reeves will argue the 2020 £2 billion black— will argue the 2020 £2 billion black hole, all the caveats and discussed _ black hole, all the caveats and discussed iran that, that is the — discussed iran that, that is the reason she has had to change _ the reason she has had to change course, but that is

really _ change course, but that is really the fundamental political question around this budget— political question around this budget today. political question around this budget today-— budget today. one of the tax rises that _ budget today. one of the tax rises that had _ budget today. one of the tax rises that had been - budget today. one of the tax rises that had been talked i rises that had been talked about quite widely and got a lot of press coverage was the vat on private school fees and, andy, a question for you from jamie in bournemouth, will be additional income that government will receive from this be enough to cope with what he says will be an influx of new students in state schools?— of new students in state schools? , ., ., , , schools? the short answer is, es, schools? the short answer is, yes. some — schools? the short answer is, yes, some interesting - schools? the short answer is, | yes, some interesting analysis going — yes, some interesting analysis going alongside the budget, you have to — going alongside the budget, you have to delve into the accompanying documents. they have _ accompanying documents. they have done impact analysis and they— have done impact analysis and they reckon private schools wiiim _ they reckon private schools will... about i5% of the fee income _ will... about i5% of the fee income they will have to find, some — income they will have to find, some of— income they will have to find, some of that they will find from — some of that they will find from reserves, some they will stab _ from reserves, some they will slap on — from reserves, some they will slap on the fees, perhaps 10%, they— slap on the fees, perhaps 10%, they point— slap on the fees, perhaps 10%, they point out the fees have gone — they point out the fees have gone up _ they point out the fees have gone up by that much previously and it— gone up by that much previously and it has— gone up by that much previously and it has not put those who pay for — and it has not put those who pay for private schools. tend to be — pay for private schools. tend to be in _ pay for private schools. tend to be in the top tenth, fifth, of the — to be in the top tenth, fifth, of the population. they reckon about— of the population. they reckon about 37,000 pupils according to the — about 37,000 pupils according to the treasury analysis will

leave — to the treasury analysis will leave or _ to the treasury analysis will leave or and to state schools because _ leave or and to state schools because the parents can longer afford — because the parents can longer afford the fees. 6% of current private — afford the fees. 6% of current private school population. but it will— private school population. but it will be — private school population. but it will be cash positive because although it might increase the cost of paying full state school by about 300 million. — full state school by about 300 million, they reckon, they will rake _ million, they reckon, they will rake in— million, they reckon, they will rake in about 1.8 billion in extra _ rake in about 1.8 billion in extra vat.— rake in about 1.8 billion in extra vat. . , , extra vat. that is well beyond what it is _ extra vat. that is well beyond what it is going _ extra vat. that is well beyond what it is going to _ extra vat. that is well beyond what it is going to cost - extra vat. that is well beyond what it is going to cost for- what it is going to cost for them to attend a state school. exactly. it makes you reflect the taxpayers have been offering a subsidy, 1.5 billion, _ offering a subsidy, 1.5 billion, for people sending kids— billion, for people sending kids to _ billion, for people sending kids to private school. | billion, for people sending kids to private school. i will return to — kids to private school. i will return to helen _ kids to private school. i will return to helen with - kids to private school. i will return to helen with the - kids to private school. i will. return to helen with the next question. the big announcement yesterday that was of course around the rising national insurance for business owners. mark says, if business costs are going up by more than £30 billion, surely they must expect businesses to pass on the costs to customers? so, is the costs to customers? so, is the government raising the tax revenues for working people by stealth? the reference to working people being a phrase,

it has generated a lot of controversy around the definition, helen? it controversy around the definition, helen? it has. partly because _ definition, helen? it has. partly because of - definition, helen? it has. partly because of what i i definition, helen? it has. - partly because of what i spoke about a little while ago around the particular pledge in the manifesto about not raising taxes on working people and labour pointing to that being, they say, in particular the rates of income tax, vat, and as they have started to say in recent days, protecting the payslips of working people. also a phrase they use more widely than not, this government. keir starmer has said that his government is about being in the service of working people. it is quite a key phrase. ministers have struggled a bit to pin down the definition. this idea of whether the national insurance rise will end up feeding through to people who are not paying it, the business is paying it, the business is paying it, the business is paying it in the first place, certainly we have heard from businesses saying it will be passed on and set at has come out in some analysis. the

office for budget responsibility had downgraded how much they think responsibility had downgraded how much th