plan for jobs and growth. mr. speaker, today parliament faces a choice. it is a choice between stability and uncertainty. it is a choice between principle and opportunism. our government is focused on securing our recovery from the global recession. we will keep taxes low. we will undertake additional targeted investments to support jobs and growth. we will control government spending and stay on track to eliminate the deficit. [applause] ..we will not cut transfer payments for crucial services -- [cheers and applause] in education. we will not cut those transfers for health care, like the previous government did. [applause]

and we will not give in to opposition demands to impose massive tax increases. [cheers and applause] this is a reckless policy that would lead to a continuing deficits and higher taxes for all canadians. kill hundreds of thousands of jobs and set families back. mr. speaker, is comes from the private sector. >> translator: we will help businesses create jobs. we will not raise taxes on growth. this is a key principle, moving forward in the next phase of canada's economic action plan. i encourage all the hon. members of this house to examine in detail the comprehensive plan we are presenting today. for now i will mention just a

few highlights. >> first hour low tax plan to create jobs. since july of 2009 the canadian economy has created 480,000 new jobs. [applause] >> still we remain concerned about the number of canadians looking for work. we need to keep protecting and creating jobs now. we need to keep building the foundation for long-term growth. a key part of that foundation is low taxes. our government has delivered tax relief for all canadians. for our cuts to the personal income tax the average canadian family today, the average canadian family of four is saving $3,000.

[applause] >> tower tax cuts are helping employers to invest, grow and create jobs. our commitment to low taxes is supported by strong consensus that protecting canada's tax advantage is key to securing our recovery. it is key to creating jobs now and to insuring long-term growth. that means greater job security for workers and greater financial security for their families. our government will preserve this advantage for canada. we will keep taxes low, to keep creating jobs for canadians. [applause] >> even so, in the current global economic climate many businesses remain hasn't to invest. it is time for the private

sector to invest again. our government will take further action to encourage them to expand and create jobs. to encourage small business to hire employees. we will provide a new target incentive. the hiring credit for small business will provide a 1-year break for some 525,000 canadians small-businesses. [applause] >> this will reduce payroll costs for new jobs and encourage hiring. we will also take further action to help manufacturing and processing sector to encourage investment and job creation. we will extend the 50% straight line accelerated capital cost allowance for manufacturing and additional two years.

[applause] this will help businesses and exporters to invest, improve productivity and stay competitive. it will benefit of broad range of industries including primary manufacturing, computers and electronics and the automotive industry. >> translator: the canadian forestry industry, we will extend current force innovation and market development programs. [applause] >> through a consultative process involving the aerospace industry association of canada and their member firms, we will conduct a comprehensive review of policy and programs to

develop a federal policy framework to maximize the competitiveness of canada's aerospace and space industry. [applause] >> be on this we will promote new export opportunities for all canadian businesses. canada is one of the world's great trading nations. we need to keep expanding our access to foreign markets to create new jobs at home. our government has signed a trade agreements with eight countries and we have launched negotiations with some 50 other countries including india and the european union. [applause] >> to support these expanding trade relationships we will modernize a custom tariff legislation which will cut red tape, make it easier for canadian businesses to compete

internationally. also we will expand canada's temporary powers to support canadian businesses in the domestic financing market for an additional year. [applause] we will also enhance canada's in gauge and with india through stronger bilateral ties among business people, public servants be turtle researchers and academic institutions. in the next phase of canada's economic action plan our government will also take further action to support families and communities to build on higher quality of life for all canadians. we will provide greater financial security for canadians and practical home to help make ends meet. >> translator: canadians work hard looking after their families and contributing to

their communities. many individuals and families have added responsibilities in caring for infirm parents or relatives. these family caregivers make special sacrifices often leaving the work force temporarily and forgoing employment income. one may be carrying for her mother just as her mother once cared for per. another may be at home full time to look after her young son who has a disabling illness. another maybe helping his wife as she faces the challenges of airmass. each family caregiver is unique but all of them are generous

canadians. they are our neighbors, our friends, and our family and they deserve some extra help. to recognize and support canadians caring for in from loved ones we will establish a new family caregiver tax credit. [applause] this new tax credit will be on an amount of $2,000 and will benefit more than 500,000 canadians caring for loved ones. it will include for the first time those caring for infirm spousees, law partners and miners, children. who have a disabling illness. >> taking action on other fronts

to help families make ends meet. for so many canadian children involvement in the arts is a part of growing up whether it is a dance or music lessons. it is a great way to make friends and develop their creativity but for some families there are other costs involved that can be beyond their reach. to help parents in providing these important opportunities for their children we well-established a new children arts tax credit covering $500 per child. [applause] >> we will further help families make their homes more energy efficient by extending for one year the eco energy retrofit

homes program. [applause] this will help families lower their energy bills and support jobs and home renovation. mr. speaker, we will also take action to help low-income seniors. in communities across the country there are seniors struggling to pay their bills each month. often they are women. often they are widows. they worked hard for their whole lives for their family and communities but lack any pension in come. to provide greater support to seniors most in need we will provide benefit to the guaranteed income -- [applause] >> this new measure will provide

$600 extra per year for single seniors and up to $840 per year for senior couple. [applause] >> will improve the financial security of some 680,000 canadians who helped build our country, help them live their senior years in dignity. >> translator: our government will also provide additional help to canadians saving for retirement, including self-employed canadians, through a new low-cost pension option. we will work with our provincial and territorial partners to implement a registered pension plan as soon as possible.

federal, provincial and territorial governments are continuing works on options for a modest enhancement to the canada pension plan. any changes to the see pp will require a consensus among governments and reflect the need to protect canada's economic recovery. >> as i mentioned earlier, through canada's economic tax plan we have implemented the largest federal investment in infrastructure in over 60 years. [applause] >> going forward we will work with territories, federation of -- developed a new long-term plan for public infrastructure. we will also introduce legislation to confirm permanent funding for municipal

infrastructure through the gas tax spike. [applause] this will ensure a stable and predictable source of revenue for the renewal of local infrastructure to improve the quality of life in our cities and towns. mr. speaker, our government will take action to strength and rural and remote communities. the number of doctors and nurses in canada has increased in recent years but canadians in some regions continue to experience a shortage. we will help address this problem by forgiving a portion of federal student loans for new doctors, nurses and nurse practitioners who agree to practice in underserved rural or remote areas.

[applause] we will provide $52 million over the next two years to support programs for aboriginal communities across the country including those in the territories. these include support to assist first nations who upgrade and replace their essential fuel tanks on reserve. [applause] >> we will also take action to support volunteer firefighting services. [applause]

>> volunteer firefighters sacrifice their time and expenses to provide crucial services. as we were reminded just days ago by the tragic fire in ontario, they are willing to sacrifice their lives to protect others. [applause] >> we will recognize the importance of this noble necessary work and help to sustain volunteer fire departments by establishing a new volunteer firefighter tax credit. [applause] >> in addition to these concrete measures to strengthen communities our government will keep investing in the knowledge and skills canadians need to

prosper over the long term in the global economy. since 2006 we have made major investments in research and development in post secondary education and skill training. as noted in a recent issue of the chronicle of higher education canada is increasingly attracting top talent from a brn gain, and the world is taking notice. [applause] mr. speaker, in reporting research and development, our goal is to promote innovation. and ultimately, to create good new jobs for canadians. in the next phase of canada's economic action plan, we will build on our successful investments so far. we will establish additional can

add that excellence research shares. we will invest in a world class research through support for the perimeter institute, brain canada, and -- [speaks french] we will extend and vince research funding to students and researchers that canada's colleges and pauly techniq so f. we will we will establish an industrial research chair at colleges and polytechnic across canada. we will also provide new support for joint commercialization projects between colleges, universities and companies.

our investments in research and development and in higher education, our government has also made substantial investments in it skills training. our goal is to help canadian workers reach the next stage of their career and to seek new opportunities in the years to come. >> to koster competitiveness in the digital economy, we will encourage colleges to work with small businesses to accelerate the [applause] we will encourage colleges to work with small-businesses to accelerate the adoption of information and communication technologies. we will provide student enrollment in secondary science, technology, engineering and mathematics programs. we will also provide tax relief for canadians who are required to certify their skills in

carpentry and medicine and other fields by making their exams eligible for the tuition tax credit. [applause] >> to respond to increased demand for help in the career transition through post secondary education we will enhance the canada student loan program for part-time students. [applause] to hubble workers who may need special help to re-enter the workforce we will extend the targeted initiative for older workers. over the past two years work sharing has protected almost 280,000 jobs. our government will continue helping businesses to keep canadians working. to continue protecting canadian jobs we will enhance and extend

the work sharing program. [applause] we will also take further action to support the outstanding canadians who have served our country in uniform. we will build on continuing -- through veterans affairs, canada, in addition our support for the helmets to hardhats program will help former canadian military personnel to find work. [applause] >> our brave canadian veterans have earned our deepest gratitude and highest respect. this is just one more practical way to provide the support they deserve.

the next phase of canada's economic action plan is designed to build on our actions so far. it is our plan to create jobs now and sustain economic growth for years to come. looking ahead, canada's leading private-sector economists projects growth in the next two years. the plan our government is presenting today is based on a conscious estimate of canada's economic growth in the near-term. it reflects our government's consistent, responsible and balanced approach to the economy. >> translator: mr. speaker, a key part of that balanced approach is our commitment to sound fiscal policy. among other things, sound fiscal policy requires that we protect the integrity of the tax system. as promised in the speech from

the throne last year we will keep taxes low while taking action to close unfair tax loopholes that allow a few businesses and individuals to take advantage of canadians who pay their fair share. >> beyond this and most of all, sound fiscal policy requires that we return to balanced budgets and canada's deficit is smaller than most other advanced countries. we are emerging from the global recession with the lowest net debt to gdp ratio of any g-7 economy by far. [applause] >> even so we must not be complacent. we must ensure that canada remains financially sound and we can continue building a future

of hope and opportunity for all canadians. the global recession required extraordinary investments to protect canadians to stimulate our economy and create jobs. canadians understand that a temporary deficit was necessary to limit the impact of the global recession in canada and all parties in parliament agree. going forward to secure our recovery we must now focus increasingly on controlling government spending. we must complete the transition from providing temporary stimulus to ensuring long-term economic growth. to that end we will continue implementing our plan to eliminate the deficit and return to balanced budgets by 2015. [applause]

>> we will complete our stimulus package as promised. secondly, we will continue specific measures to restrain the growth of government programs bending. third, we will complete within the next year a comprehensive review of government spending. this strategic and operating review is designed to realized substantial additional savings through greater efficiency and effectiveness. it will place us in a strong position to resume paying down government debt and continue investing in priorities and supporting canadian families. >> translator: our government has laid out the next phase of canada's economic action plan, a

low tax plan for jobs and growth. it is based on our extensive consultations with canadians from coast to coast to coast. it reflect their values and responds to their priorities. our plan does not say yes to every demand. it does not contain massive new spending. because that is not leadership. >> leadership is about finding a balance between needs. it is about staying focused on our number-1 priority, securing our economic recovery by creating jobs and growth now and the years to come. we believe the hon. members of the opposition will recognize that our plant addresses practical concerns with responsible solutions.

as i said earlier, today, parliament faces the choice. up with choice between opportunism and working together to secure a recovery and strengthen financial security of canadians. our government is focused on providing principle stable government our country needs at this challenging but promising time in our history. we will keep taxes low and preserve canada's advantage in the global economy to keep needed jobs for canadians. we will strengthen the financial security of canadian workers, seniors and families. by implementing the next phase of canada's economic action plan we can keep building a higher quality of life for our families and communities. by choosing to act in the best interest of our country we can ensure a bright future for our

children and grandchildren. we invite all hon. members to support our low tax plan for jobs and growth. [applause] of the wreck applause] [applause]

>> canada's opposition parties will vote against the government's proposed budget. this move will likely trigger new elections to be held in may. coverage of the canadian politics continues this afternoon as canadian prime minister steven harper participate in the house of commons question time live beginning at 2:30 p.m. eastern on c-span2. >> author, poet and playwright ishmael reed is on dips -- in depth at noon eastern on april 3rd. net for his satirical approach to american political culture he has written 25 books including airing dirty laundry:another day at the front and barack obama and jim crow media. join our conversation taking phone calls, e-mail and tweets for each nail read at noon eastern on c-span2 and what previous in-depth programs on booktv.org where you find the

entire weekend schedule. >> each week while parliament is in session british prime minister david cameron comes to the house of commons to answer questions. following today's half-hour session, the chance -- chancellor will present the annual -- live coverage of the british house of commons. >> cooperation with them. i have met martin callahan, the new commissioner. imac the tee shirt in washington last week and i follow up recent discussions with the minister of justice. together working with them we will pare down on these dangerous terrorists. gregory campbell. >> they announced yesterday the end of the 50/50 discrimination.

insuring that ten years of discrimination is at an end and young protestants and catholics can combat those levels and insure a return to normal. >> we are happy to represent the community. offer a career path attracting people from across the community and the issue is in the hands of the place it should be. >> question for the prime minister. john woodcock. >> i am sure the house will join me in paying tribute from the second battalion regiment who died at queen elizabeth hospital and being wounded in afghanistan. he had just become a father and

our deepest condolences to be with his family, friends, especially his wife and newborn son. we must make sure he grows up in a country where everyone honors the memory of his father and all of our armed forces. this morning i had meetings -- in addition to my duties in the house i have further such meetings later today. >> john woodcock. >> associate with myself on this side of the house with his moving tribute to private daniel prior. the prime minister has taken the right decisions to extend the life of the -- tower arm forces remain equipped to protect in this conflict. he knows the uncertainty we now face so will he in due course extend that capability more widely? >> we will look closely at all the lessons we should learn from what we are engaged in diplomatically, politically, in

terms of foreign policy and military equipment as well. the strategic defense and security review called that we should be able to deployed at speed anywhere in the world with flexible arm forces with particular emphasis on transport and things like special forces. we did anticipate what we are doing now with further lessons to learn and we should learn them. >> our hearts go out to the people of japan as we watch things unfold and the warnings today by heightened radiation in tokyo's water supply. it is not just earthquakes and tsunamis that strengthen the nuclear reactors. does the prime minister agree that what happened in fukushima will have consequences for the power stations proposed in the u.k.? >> i am sure the house will join the hon. lady in sending our condolences to people in japan but also our admiration for

their incredible bravery and resilience in dealing with this crisis. we must learn any lessons that need to be learned about nuclear power which is why the head of the safety inspector is looking at this issue. as i said before the power stations we have in britain are different types to those in japan. we are not planning to build any like those. we are not in an earthquake zone or a zone subject to tsunamis but you always have to test against all eventuality and further testing we can do in terms of nuclear power in terms of japan, i do think they are doing a good job dealing with this problem. in terms of the nuclear station signs are better than they were a few days ago but suddenly it is in the danger zone. we should make sure we get the correct advice to all british citizens in tokyo which is what we have done and continue to do. >> can i join the prime minister in paying tribute to private

daniel prior who demonstrated outstanding bravery in the line of duty and always his wife and young son and all his family and friends. i am sure the whole house will also want to think about on forces personnel now in action in the military operations in libya and paid tribute to their outstanding work that they are doing. following the vote in the house on monday update the house on the progress of our military operations and the actions of british forces. >> i am sure the right hon. gentleman what he said and his speech in that debate on monday which was extremely powerful. in terms of updating the house and military operations a no-fly zone is in place over libya. there are 11 nations contributing 150 aircraft. as we discussed on monday there has been an early end good effect on regime forces having to retreat but clearly there is great concern about what the

regime is doing and any idea that the second cease-fire was more meaningful than the first we can see is complete nonsense. we made good progress in the no-fly zone in terms of turning those forces back and protecting civilians but clearly this is early stages and more remains to be done. >> thank you for that, would use it in the debate on monday. we support resolution 1973 to support the people of libya. the support of the arab league was a key factor in securing the un resolution. update on the military contributions, to make the operation and what conversations he had with arab leaders about their continued role in the enforcement of the resolution and plan of action. >> the arab league met again today and reinforce their view that a no-fly zone is right and they support you and security

council resolution 1973. in terms of concrete assets i confirm that yesterday they deployed the first contribution in terms of mirage aircraft and other support aircraft. we will be getting logistic contributions from kuwait and jordan. i further support will be forthcoming. i will be clear about this. because we had to act so quickly saturday it was impossible to bring forward as much arab supporters. by everybody in this house but the clear supporter from the secretary general of the arab nations had a meeting with the foreign minister. support in the arab world, also the arab people for saving lives in libya is very strong. >> let me emphasize something the prime minister said on monday which is the importance of the contribution of arab countries to military operations but also that there would be a regular formal process with the arab league and it is important

it seems to me that the process does take place. let me ask one other thing about our action. can the prime minister clarify the government's position regarding the tarnishing of colonel gaddafi? it is important that we stick to the terms of the un resolution as we seek to maintain the coalition we have built in relation to the un resolution. >> thank you for the chance to set this out clearly to the house. all our targets must be selected to be in line with u.n. security council resolution 1973. that allows us to take all necessary measures to enforce a no-fly zone and put it in place as safely as possible and take action to protect civilian life. all targets should be in line with that but i don't propose to give a running commentary on targets or say anything beyond that. >> as my friend struggles to work out the mess left behind --

by anti last run labor government, would my right hon. friend take this opportunity to unite the house on health matters by praising the work of mary curie nursess highlighting the dangers of prostate cancer and supporting lowestoft week? >> i yield to no one in blaming the last government for all sorts of ills. but even i would draw the line. we will have to -- should be praised by everyone in this house and the whole point of we

do -- >> with the intention to become chief executive under a new government powers. does the prime minister think the mayor elected on a political ticket who is -- a political role should go back to the election in the true spirit -- and get their opinion on this issue? >> i think the old lady for reminding us that there is an excellent conservative -- doing a great job but frankly will be a matter for her to work out what a fantastic job she can do

in the future. >> board tuned town centers 50 minutes on the by rail but values are 60% lower. there is a huge potential to save public money by relocating part of the government from the most expensive site and the country. >> i heard the suggestion, a new place for itself to be based. we have already saved fifty million pounds by relocating government property. my right hon. friend the minister of civil service who sits in the cabinet and does an excellent job saved 2.6 billion pounds in combining public bodies and i am sure there is more we can do. >> can the prime minister explain why he is proposing to remove the mobility component of

disability living allowance from 80,000 care home residents? >> the short answer is we are not. [shouting]] mr. speaker. mr. speaker. mr. speaker. not for the first time i have to tell him his own selective places. 83 of the welfare reform bill proposeds precisely that. people don't understand why he is doing it. if he says he will abandon the policy let's abandon the policy. that is what is happening. this is a point that has been raised from right across the house of commons. it is a point we have responded to.

it is a review he can take part in and perhaps say something constructive. >> it is not a review. it is a flawed -- a clause in his bill to take away the mobility component. 2022 disabled persons organization that and down the country are saying he should examine the policy. a suggestion for him because he has done it before. why doesn't he complete the review now and say something in the policy? >> the first thing the gentleman said about the living allowance was he wanted support on gateway reform. you don't hear about that much very much anymore. as i said the review is rolled into the personal independence payment. that is how we will reform the mobility component and instead of getting excited he should congratulate the government for

listening to opinion from across the house. >> paul mccartney. >> the prime minister may be aware of the financial times reported earlier this week that gaddafi is sitting on $6.5 billion worth of gold in his water. we should commend the current leader of libya for going across the inflation hedge throughout our history. this seoul kospi gold reserve and the carrier at this. in order to do that to the euro. it is quite flawed. >> an ingenious question by my hon. friend. i have to say spending the gold was one of many appalling decisions and advised by the two people now responsible for their economic policy in opposition. >> chris evans. >> what about the banking

industry with massive bonuses? >> what we have done in the banking industry is make sure they are paying a 2.5 million pound banking levee. should wel.

>> unemployment in my constituency will increase as a result of public sector cuts. tell me what the government is doing to expand private-sector job opportunities in the areas such as supply chain jobs such as those programs and when he asked his business secretary to boost jobs in the northeast? >> i am happy to arrange an meeting. what the deck of the lady makes is right. we have to make sure at daytime when any government would have to be making public sector cuts we make sure the public sector grows. that is why we have a growth fund putting money and leveraging new jobs in the northeast. that is why we are introducing

things like enterprise zones and why if she sits and waits patiently she will hear a whole series of measures to fire up the private sector and make sure we get growth across the country. >> council tax is the most despised tax in the country and under the last labor government it increased mercilessly year on year. and prime minister tell me how many councils have taken advantage of the offer made in last year's budget and frozen or reduced council tax? >> good point. it is worth while noting that we now know fed every single council in the country has agreed to take part in the government's tax freeze. i would have thought that would be something welcome from across the house of commons because people do face a difficult situation with cost-of-living. we have taken action and are lifting people out of income-tax and operating the pension with

earnings and 9 of the chancellor has a few things to say in a minute or two. >> the prime minister's note of passion to the campaign -- and i know he will be watching day and night on that subject but i have another passion which is -- i wonder what the government will do to protect all those who the part and to potentially get rid of everything in the legal system. >> this is a devolved issue for scotland but we have done elsewhere in the united kingdom is maintain the grants we give to the citizens to make sure the work goes ahead. if he looks at the comparative figures this country spends more per head on legal aid and comparative countries ended is right that it should be reformed. >> to lawrence robert some.

>> as the prime minister aware of what is going on between crosser and london? because of a problem the hon. member's have paid long and hard for the line between president kendall to be redoubled. will the prime minister give every consideration possible to that project? >> i know the problems between london and blauser and to the west of london know the problems which have recently been improved through redoubling. i hope he will sit patiently. i hope the chancellor has something to say about how to make life easier for a constituent to get to and from gloucester to london. >> can the prime minister of state the house on representation he has received from the prime minister, to check the forge master? >> the hon. lady knows this was

done on the basis of affordability and she also knows sheffield masters have been encouraged to bid under the regional growth front which is an approach taken take. this is about trust.hey can tak. this is about trust. >> in the central role -- the great action of our personnel despite the ongoing uncertainty, isn't it time that we confirm the future as -- >> the honorable lady makes an important representation on behalf of a vital base in her constituency with the opportunity to pay tribute to what our brave attributes -- pilots for doing what the flying typhoons to police the no-fly zone or flying tornadoes to carry out final operations on the ground in libya. she makes a strong case but others would also make a case

too. these will be taken in due course by the ministry of defense. >> last week the prime minister told this house that people here are twice as likely to suffer a heart attack as people in france. isn't the truth that survival rates are improving, a lower death rate by next year with record levels of satisfaction. when will we stop talking about that -- >> they have the extraordinary things for me and my family. i am passionate about that and want it to remain free as a point of use on the basis of need and not related to the ability to pay. the point of reforming is to safeguard for the future. that is what i do. everyone in this house wants that. i will never talk that down but if we really believe we can do better on cancer or heart

disease or stroke. if we can't do everything we are fooling ourselves. we must do better. that is the aim of our reform. >> the coalition agreement, greater accountability commissioning, directly elected individuals on the floor is of primary care trust. since pcps are on the way out will the prime minister accept the best way to deliver this commitment is to reserve places on consortium forces for locally elected people. >> one of the ways we can make it more accountable is through the better combination of the nhl said local government and that is what our proposal envisageds. that is the best way to get good democratic accountability for what happens. >> mr. speaker, the government has not factored into the future budget proposals sell-off of bank assets that we own.

given the commitment to volunteering and the dire straits many young people face in terms of unemployment, for nationwide volunteer programs building on the national citizens' service with both individuals and the nation as a whole. >> an interesting suggestion. it will be an opportunity to sell the bank assets that we own. i don't think we should wait to get national citizens' service that he rarely mentions up and running. i want to see every 16-year-old have the opportunity to take part in something like that to make a few more part of our country and recognize the responsibility we all have as we move towards adulthood. >> with the recent reports underlining the fact that structural deficits with difficulties for our economy, does the prime minister agree with me that it is all the more

important that we upgrade our industry and business by providing trading opportunities for young people? >> an important point. that is why we are making quite bold and difficult reforms in education as we stand today. less than 50% of young people at 16 are getting a-z in english and math and people are properly prepared for the world of work and that is not good enough which is why i pay tribute to the education secretary who is setting a higher bar for himself and the government. we need to make sure we get over it. >> dennismac shane. >> may i welcome the prime minister's you turn with the announcement united kingdom will sign or opt into the un directive of slave trafficking. this is a cross party issue. we take it seriously.

particularly at unaccompanied children arriving in turtles because there is evidence some of those may be traffic. we may put some loss on this terrible thing. >> i am grateful. you're absolutely right. this is an issue of cross party concern. we completely agree with what was proposed by the trafficking directive. we were locked into that with parliamentary permission. we have to make sure our arrangements are in place to help children including a way he suggests. >> mathew hancock? >> recent public accounts committee report found that in the past hospitals were built under psi even though it was

more expensive than others. in some hospitals it costs 333 pounds to change a light switch. what are you going to do about it and whose fault was it? >> an important point. some of the deals that were entered into were extremely expensive and those were going to rack upon taxpayers for years to come but he doesn't have to believe me. we have it from labor's health secretary who made a number of interventions in recent weeks. the latest one was in the morning star where he said -- not a paper i always -- whether -- he is talking to a communist paper or backing for replant he is consistent and in favor of what the government is doing. there is definitely a case for saying we are for at negotiating contracts from the outset. i couldn't agree more. >> 180 pounds of property assets

assembled by one morpheus. it benefits central government confidence. the association of northeast cal's join forces in a bid to take on these efforts for the benefit of our region. will the prime minister practice this and that his warm words including warm words on localism into action? >> it is an important issue that we make sure as we move from regional development to the new local enterprise partnerships many of which are up and running and doing a good job that we make sure we have good consistency and continuity and i look for the case you make. >> well my right hon. friend advance about it with the financial situation in this country? in terms that i can use to convey to my as constituents the dreadful state of the economy we inherited. >> one way of putting the inheritance we had is we had a

budget deficit that was bigger than portugal, bigger than spain, bigger than grease and only because of the action we have taken to show how to pay down our debt that we have interest rates at a similar level to germany. that is will we have been able to do with huge help to our economy with no help from the party opposite. >> it was over the weekend that the department of health failed to publish research that it commissioned and received last autumn which shows the highest ever level of satisfaction with the any chess. will the prime minister urge the secretary of state to publish the research without further delay or by not doing so will he confirm that the bsa was right last week when it deplored the government's use of misleading

and inaccurate information. >> this government has published more information about the national health service by local government and indeed he is quoting from a published report. the point i make is -- the point i make is if we have the same survival rates for cancer as the european average we would save 5,000 lives every year. the members opposite want to save those lives? are you going to stick with the status quo and say there shouldn't be choice, patients should not have a say in how they're treated or doctors shouldn't be involved in the health service. what a backward loss. >> a 15 hour pre nursery condition they give us. they met with me and are concerned about the new guidelines not giving enough flexibility. i talked to my right hon. friend the secretary of education about

the problem. >> what we have done is make sure we properly funded the extra hours of education for a 3-year-olds and for the first time introduced that provision for disadvantaged 2-year-olds and it is the big step forward at a time of spending constrained that we have help the poorest families in our country to have a better future. i take of the points you make and make sure she leads by the education secretary to make sure this is introduced in the right way. >> the secretary of state for energy in the newspaper interviewed this week, on the viability of investment in the civil nuclear energy industry. ..

>> thank you very much, mr. speaker. last night a college in my constituency, i spoke to a bright group of economic students. we discussed that government cannot spend money they do not have. [shouting] >> the students understood that. why does my right honorable friend think they don't understand? >> the honorable lady makes a very good point. i know the party opposite doesn't like to hear about the massive that they left. but let me give them some new publish information about the mess they left. this is where we were.

72nd and wastefulness of government spending, 108th on government debt behind libya. and on standards this is the vessel, standards a bank, 133rd, our banks under labour for less sound than they were inserted, estonia, madagascar, and chad. that's a record we inherited from the party opposite. we will not tire from reminding them. >> order.

[inaudible conversations] [inaudible conversations] >> order, order. before i call the chancellor of the exchequer it may be convenient to remind honorable members that copies of the budget resolutions will be available to them in the office at the end of the chancellor's speech. it may be also appropriate to remind members that it is not the norm to intervene either on the chancellor of the exchequer or the leader of the opposition. i know, -- i now call the right honorable chancellor of the exchequer george osborne. >> thank you, mr. deputy speaker. mr. deputy speaker. last year emergency budget was about rescuing the nations finances and paying for the mistakes of the past. today's budget is about reforming the nation's economy so that we have an enduring

growth and jobs in the future. and it's about doing what we can to help families with the cost of living and the high price of oil. we understand how difficult it is for so many people across our country right now that we are able now set off on the route from rescue to reform, and from reform to recovery is because of the difficult decisions we have already taken. those decisions have fought economic ability. and without stability there can be no sustainable growth and no new jobs. without stability governments have to keep coming back to their citizens for more, more taxes and more spending cuts, in britain we do not have to do that today. we have inherited a record budget deficit, but we have set out a credible comprehensive plan to deal with it. we have had to undertake difficult measures but we have already asked the british people for what is needed your and

today we do not need to ask for more. so this is not a tax raising budget, nor can we afford to take give away. taken together the measures i will announce today are fiscally neutral across the period. this is a budget built on sound money, a budget that encourages enterprise, that supports exports, manufacturing and investment. that is based on robust independent figures, a budget for making things, not for making things up. [shouting] britain has a plan and we are sticking to it. in recent months any other countries have seen their ratings downgraded and their borrowing costs soar. our country's fiscal plans have been strongly endured by the imf, the european commission, the oecd, and that every reputable business body in britain. and for anyone who questions whether this massive in the real world, the real businesses and families, consider this.

market interest rates increase our at 12-point by persevered in ireland close to 10%. in portugal and spain they are 7% and 5%. today, our country's market interest rates have fallen to 3.6%. we have a higher deficit in portugal, greece, and spain but we are virtually the same interest rates as germany. this is our powerful monetary stimulus to our recovery economy. stability, credibility, lower interest rates, that is what we have achieved. [shouting] but stability, mr. deputy speaker, is not enough. so today in addition to the redbook we're publishing a plan for growth. this budget confronts the harshest truth that it has been ignored too long. britain has lost ground in the world's economy and needs to catch up your in the last decade other nations have reduced their

business taxes, remove barriers to enterprise, improved education systems, reformed welfare systems and increased exports. sadly, the reverse has happened in britain. we gambled on a debt fueled model of growth that failed. with a state now account for almost half of all economy can we simply cannot afford to go on like this. britain has to earn its way in the modern world. mr. deputy speaker, i turned to the forecast. last november i told the house that the recovery was going to be more challenging than recoveries from recessions in recent decades. that is inevitable when we've had the sharpest fall since the 1930s, the highest budget deficit in our peacetime, and the largest banking crisis in our entire history. but i said thanks to the course we've set, the independent forecast was for our economy to growth in each of the next five years, for unappointed peak this

year and then fall, and for employment to rise through the parliament. that remains the case in the independent forecast we publish today. those forecasts have been drawn up by the office for budget responsibility. this important change has transformed the way budgets are put together. so instead of chancellors nixing the figures to fix the budget may not to fix the budget to fit the figures. yesterday, the legislation for the office for budget responsibility on a prominent statutory an independent received royal assent, and i'm sure the whole house will want to thank robert, steve, graham parker, and their whole staff for the very professional job they are doing. let me start with their growth forecast. now it has been know for chancellors in recent years to wrap these office such great state in hopes that no one will keep on or notice. [laughter] >> i will not do that.

although average quarterly growth this year is set to be higher than was previously forecast the annual forecast for 2011 has been revised to 1.7%. this the obr a true specifically to the weekend reports of last year, the rise in world commodity prices and a high than expected inflation in the u.k. however, the obr points out that the effect in their words is to create scope of slightly stronger growth in later years. so while the expect real gdp growth of 2.5% next% next year, they forecast it will then rise to 2.9% in 2013, the 2.9% in 2014 followed by 2.8% in 2015. the european commission has also this month published its growth forecast. the show that the uk's full cast

to grow more strongly in the coming years and spain, italy, france but the average for the euro zone and the average for the european union. all countries have to steer a course between two central risks. the risk of european sovereign debt crisis, on the one hand, and on the other the risk that comes from rising global poverty prices. food prices around the world have increased by nearly 50% since the beginning of last year. or has risen by 35% in just five months. that is why the obr expects inflation to remain between four and 5% for most of this year, before dropping to 2.5% next year and then 2% in two years time. i have today, tricky written to the governors of the bank of england to confirm that the inflation target for the monitor policy committee will remain at 2% ash but by the consumer prices index. i can also confirm that the

facility set up by my predecessor will remain in place. one cause of current instability is the conflict inside libya. the whole house will praise the courage and professionalism of our armed forces are trying to bring the conflict to an end and save lives. i can confirm that the additional cost of military operations will be met entirely on the treasure reserve. house will also know that last week i authorized the u.k. to part in according to g7 currency innovation in support of the japanese yen. our hearts go out to the japanese people, and this is one way in which britain can help. it is still too early to say what lasting impact the earthquake and tsunami will have on the world economy. but this is an opportunity for me to report that we had already decided to rebuild the uk's foreign currency reserve, which are at historically low levels. we will purchase a range of high quality assets that will unfortunately the price of gold now at a record high we will not

be able to replenish the gold reserves that sold at a record low. [shouting] >> mr. deputy speaker, i turn now to the fiscal forecast for our debt and deficit. borrowing to fund the deficit this year is now set to come in below target at 146 billion pounds. then fall to 122 billion next year, in 101 billion the year after, than 70 billion in 2013-14. in 46 billion, and 29 billion by 2015-16. inflation has had its impact but crucially the obr a fix that next years structural deficit remains the same as forecast last november. in other words, the size of the task or repairing britain's finance is unchanged. our national debt and the share of our national income is forced to be 60% this year, before peaking at 71%, and then

starting to fall reaching 69% by the end of the period. this leads me to one of the central task of the obr. that is assessing the government's performance against its stated budget goals. in an open and independent way, so that we avoid repeating disastrous experience of the so-called golden rule. our fiscal mandate is to achieve a cyclically adjusted current balance by the end of the rolling five year forecast period, which is currently 2015-16. we have not with a 6% target as the debt should be following in the proportion of gdp by the year 2015-16 as well. i can report to the house that the obr confirmed that on the central forecast we will meet both these objectives, a thousand structural current budget, and falling national debt by the end of the parliament. indeed, the forecast remains that we will meet both these objectives one year earlier. [shouting] mr. deputy speaker, i said at

the start of the stability and fiscal responsibility were not enough. our country has to compete if we are going to create jobs and growth. britain has fallen behind many others in the world in the last decade. we've dropped in the world global competitiveness seen and growth in the country has become so unbalanced, consider this staggering truth. during the boom years before the bust, private sector employment actually felt in the region as important as the west middle. so today's budget is an urgent call for action for britain. private sector growth must take the place of government deficits. prosperity must be shared across all parts of the united kingdom. yes, we want the city of london to remain the world leading center for financial services, that we should resolve that the rest of the country becomes a world leader in advanced manufacturing, life sciences, industries, business services, green energy and so much more. this is our vision for growth.

difficult decisions and major reform are needed to make it happen. but the alternative is to accept britain's economic decline and a continuing fall in the living standards for our population. and that is not an alternative anyone in this house should be prepared to accept. mr. deputy speaker, this budget sets are but these four economic ambitions. britain should have the most competitive system energy 20. be the best place in europe to start finance and grow a business. the a more ballots economy by encouraging exports and investment. and have a more educated workforce that is the most flexible in europe. let me set up the measures now that will achieve these ambitions. first, taxation. here's the truth. britain used the third lowest corporate tax in europe and now has the sixth highest. at the same time our tax code has become so complex that in recent years it took india to become the longest in the world. from adam smith to others people

set out the principles of good taxation. this government for the modern age. our taxes should be efficient and support growth. they should be certain and predictable. they should be simple to understand and easy to comply with. and our tax system should be fair, reward work, and asked the most from those who can't afford the most. in july last year we set out the office of tax simplification to provide independent advice -- advice. i want to thank michael jack and john for the work they have done. following their recommendations i can announce today that its budget abolishes no fewer than 43 complex release. this includes the money and give a system which we will let me for another 989 years. [laughter] >> however i decided not to

follow their advice to post the committee investment tax relief and instead i encourage people to take it up. this budget at a stroke removes over 100 pages from our tax code that begins the work. in the last budget i announce that from next month welfare payments and public service, pensions will be in line with the consumer price index. i said at the time we should also consider operating the tax system in the same way. from april 2012 the assumption for direct taxes will move to cbi. there will be protection to this of those eligible for age-related, married couples, and blind persons allowed his, and for employers national insurance contributions. the increase in the personal tax allowance already announced will fast exceed anything, and that's even before any further increases in that allow its. but this will bring coherence to the facts and benefit system and we look to moving into a taxes over the same basis for what the

fiscal system allowed. but there is in one service which we want to undertake, that will dramatically supervise the tax system. for decades we've operated income tax and national insurance as two fundamentally different tax code, and force businesses large and small to operate two completely different systems of administration with two different periods of basis of charge. the resulting anomalies are legion, and it imposes totally unnecessary costs and complexity on employers, and it costs the taxpayer in the extra burden it places on a gym or see. so i am announcing today that the government will consult on emerging the opposition of national insurance and income tax. i am not proposing we extend national insurance to commissioners are other forms or we abolish the contributory principle. our purpose is not to increase taxes. it is disabled by the.

and huge task will therefore require a great deal of consultation and take a number of years to complete. but it is time we took this historic step to simplify dramatically our tax system and make it fit for the modern age. making our tax system more competitive is another challenge for the times we live in. again, let's face facts. other countries are quite deliberately making their tax systems more competitive and attracting multinational companies away from the united kingdom. we could stand and do nothing, increasing the living standards of every house and come in the country depends on key things, investment and the tax revenues that come with them here in the united kingdom. so we will go ahead with a highly competitive tax rate on profits derived from industries like pharmaceuticals. we will fundamentally reform the complex rules that control foreign companies and make them

more territorial. we will introduce new rules that effectively applied older competitive by .75% rate for overseas financing income. this will give us a far more attractive system than france, america or germany. i want britain to be the place international businesses go to, not the place that they leave. but today i wanted even more. so i can announce that from april this year, corporation tax will be reduced not just by the 1% my previous announce but by 2%. and it will continue to fall by 1% in each of the following three years taking on corporate tax rate right down to 23%. 16% lower than america, 11% lower than france, 7% lower than germany, the lowest corporation tax in the g7. let it be heard clearly around the world, from shanghai to seattle, britain is open for business.

[shouting] >> and to ensure, and to ensure that this is not a net tax cut for banks. i am adjusting the bank levy rate next year to offset its affect. [shouting] >> in each -- mr. deputy speaker, in each and every year of this parliament, our permanent bank levy raises more in any one year of the last parliament bank taxes. the most competitive access and energy 20 is the first of our economic ambitions. the second is that britain becomes the best place in europe to start, finance and grow a business. again let's face facts. in the last decade countries like germany, denmark, finland and the netherlands have all overtaken us in international rankings of competitiveness.

that is not surprising when the total cost of regulation imposed on business since 1998 is almost 90 billion pounds a year. so in today's plan for growth we take action. 350 million pounds worth of specific regulations will go, including the quality act, discrimination rules, the recommendations on health and safety laws will be implemented in full, and no win no fee legal services that prey on employers will be restricted. existing regulation will restrict neither the public process, and from april we're going to impose a moratorium exempting all businesses employing fewer than 10 people, and all genuine startups funded domestic regulations for the next three years. [shouting] >> we'll also take this fight against regulation to brussels where this week my right honorable friend the prime minister bibby including other

allies. we will tackle what every government has identified as a chronic obstacle to economic growth in britain. and no government has done anything about the planning system. councils of spending 13% more in real terms than they did five years ago despite the fact that applications have fallen by a third. yes, local communities should have a say in planning, but from today will expect all bodies involved in planning decisions to prioritize growth in jobs. will introduce a new presumption in favor of sustainable development so that the people say yes. we will retain existing controls on greenbelt, but we will remove the national impose targets on use of praided lands. and will also allow certain use class changes introduced time limits on applications, and pilot for the first time ever auctions of planning commission on land.

planning rules and bad regulations stand in the way of new jobs. so too, mr. deputy speaker, does the shortage of finance. small businesses are the innocent victims of the credit crunch. that is why we have agreed with the banks to pay 50% increase in the availability of credit to small businesses. and lack of startup capital has long been a problem in the british economy. too often with very ideas and britain but it is other countries that exploit them. today i announce sweeping changes. from april this year income tax relief will increase from 20%, to 30%. next year we will double the amount of any individual can invest increase the size of companies that qualify for investment and raise the limit on the amount that can be invested in the company by 400%. and next week my right honorable friend the prime minister of the business sector will launched a

new campaign by entrepreneurs for entrepreneurs, supported by many of britain's most successful firms that will help people start and grow a business. today we can add to the help from the six of april this year i am doubling the size of entrepreneurs relief to 10 million pounds. let britain be the home of enterprise in an age when people can't invest all over the world. it's time that we ended the uncertainty around the taxation of non-domiciles. they are welcome in this country but i always believe they should be pay something in return for the special tax status. the last government followed our advice and introduce a 30,000-pound charge for those who have lived here for seven years. i think we can ask more for those who have been your even longer so i'm increasing the charged up 50,000 pounds for non-dom so been in the country for 12 years. this will raise over 200 million pounds in the coming years. but in return and to encourage

investment in our country i am removing the tax charge when non-dom's remain capital gains to the u.k. for the purpose of investing in a british business. we will introduce a statutory residents test to end the speculation and uncertainty and to provide stability, i confirmed that i will be making no further changes to the taxation of non-domiciles in this parliament. in an age when business and capital and people can't increasingly move anywhere, high tax rates can do real damage. that's true for high corporate tax rates, and it's true for high personal tax rates, also. they crush enterprise. the divine aspiration. they often undermined tax revenues and people avoid them. i include that the 50% tax rate would do lasting damage to our economy if it were to become permanent. that is why i regard it as a temporary measure. just as my labour predecessor, the right honorable did when he introduced a. i said before and that wouldn't

be the right time to remove it and we're asking others in our society on much lower incomes to make sacrifices, for we are all in this together. [shouting] >> i think it is sensible -- to see how much revenue it actually raises. i've asked hmrc, mr. deputy speaker, i've asked hmrc to find out the truth when the self assessment forms start coming in. of course, the taxation must be fair. it's right that the wealthy should pay more than others and it's especially wrong when they avoid taxes. i will have much more to say later on in his speech on tax avoidance and evasion, but there's one area that needs extra work in the coming months and that's on the taxation of a very high value prop it would evasion and avoid and are widespread in the some of the wealthiest are not paying their fair share. so as well as reviewing revenues from the 50 the tax rate will also be redoubling our efforts

to find ways of ensuring that owners of high by your property cannot avoid and their fair share. help for small businesses, a boost for enterprise, reforms to planning, cuts to existing regulations, and a moratorium on new ones. all part of our ambition to make britain the first place in your to start, grow, and finance a business. [shouting] >> our third edition is to encourage investment and exports to a more balanced economy for britain. in the plan for growth we publish today we set out specific measures we can take to help a wide range of businesses. and life sciences we dramatically reduce the time it takes to get approval for clinical trials. in our digital and creative industries we will approve intellectual-property regime. in our professional and business services, one of our unsung success stories, we will reform our burdens of money-laundering

regime now for legal obligation and launch a new trust in business for the services to our retail sector includes many small shopkeepers, anxious about the impact of coming business rises. the last government planned at the current rate holiday for small businesses should end in october this year. i don't think that would be right. so i can announce that at a cost to the exchequer of 370 million pounds i will extend the right holiday for small businesses for another year to october 2012. [shouting] >> we will also take action to help the construction industry. stamp duty will not be levied on the mean value of the house is being purchased within, and real estate investment trust will be simplified to encourage homebuilding. but average mortgage deposits are close to 30% and this goes homeownership beyond the reach of many, many families. this is not fair.