historically high rates of unemployment, and too few jobs. looking at all the evidence on energy prices, it's hard to come to any conclusion other than that high energy prices are part of president obama's plan. the policies he's put in place have intentionally elevated the price of gasoline, much to the detriment of the american consumer. mr. president, i yield the floor. a senator: mr. president. the presiding officer: the senator from new jersey. mr. menendez: thank you, mr. president. mr. president, i rise in support of s. 2204 which is my legislation to repeal big oil subsidies. mr. president, this bill is

pretty simple. we end wasteful subsidies to the big five oil companies, and we use those proceeds to invest in clean energy, in creating jobs, and reducing the deficit. i think the american people are sick and tired of paying ridiculously high gasoline prices and then at the -- at the pump and then paying big oil again with our collective taxpayer subsidies, which they get. i think that money is better spent keeping our economy going and developing alternatives to that will create competition in the marketplace and help to reduce gas prices. madam president, we're poised to waste $24 billion over the next ten years subsidizing only five companies who are poised to make

over a trillion dollars -- let me repeat it -- a trillion dollars in profits -- not proceeds, in profits -- over the same time frame. and as we all pay more at the pump, big oil rakes in more money. exxon boasts in its securities and exchange commission filings that for every dollar increase in the price of oil, their profits rise by $375 million. for every dollar the price of oil goes up, they boast in their filings that their profits -- not proceeds, profits -- rise by $375 million. the american drivers' pain is big oil's profit. and what is big oil doing with its profits? well, the answer's not a lot useful.

as you can see in this chart, the profits from the big five oil companies were $137 billion in 2011. that's an impressive 75% increase from 2010. did they use that extra money to produce more oil, as some of my colleagues here would suggest? no, they didn't. they took your money and actually in that time frame didn't produce a drop more of oil. as you can see, despite the fact that overall u.s. production is higher now than it has been in the last eight years, last year, these five companies actually produced 4% less oil. they produced 4% less oil. so it's fair to ask, if they did

not invest to produce more oil, then what are they doing with this $137 billion in profits, this 75% increase in profits in one year? well, they spent about $38 billion repurchasing their own stock to enrich themselves, and they spent nearly $70 million on campaign contributions and lobbying to protect their billions of dollars in subsidies. as you can see here, it was a pretty smart investment. for every dollar that they spent in lobbying, they got about $30 in subsidies. one might say that's not a bad return on their investment. so, madam president, instead of

giving these subsidies to big oil so they can enrich themselves and seek to affect and control our political system, i think we could use some of those funds to reduce the deficit. i think we can all agree that we need to reduce the deficit, where there seems to be some considerable disagreement on how to do it. last week, those on the other side of the aisle came out with what i call the romney-ryan budget, their proposed budget, and it would drastically cut funding for wounded soldiers, for seniors, for students. but it leaves in place these wasteful subsidies. it leaves in place these wasteful subsidies, even though we have this enormous profit. now, through some political sleight of hand, they defy reality when they tell us with a straight face that we have to

make tough choices and then they cut funding for wounded soldiers, for seniors and students but won't touch the subsidies for big oil. somehow in this republican parallel universe, logic is turned on its head and we are asked to believe that fairness doesn't mean treating everyone equally, it means more for the very rich and more for big oil. but we don't live in a parallel universe, we live in the real world. fairness means that working families should not be the only people sacrificing, and we can't lower the deficit while we give taxpayer dollars away to big oil companies who are making record profits and not producing more energy.

it's really amazing to me that anybody can come and make that argument. now, what makes these subsidies even more ridiculous is that when we pressed those who have supported the industry or those who have come from the industry, everyone seems to admit that oil companies do not need these subsidies. former president bush, who was very good with the oil industry, said that oil companies do not need incentives to drill when oil hits $55 per barrel. those were his remarks. and now it's over $100 a barrel. so if they didn't need incentives to drill when it was at $55 a barrel, god, how does anybody come to the floor and suggest that they need incentives now when it's a hundred dollars a barrel? over a hundred. and then the former c.e.o. of

shell said that subsidies are not necessary for drilling and production. so that's pretty much probably clear when they're making $137 billion just in that one year and where they will make a trillion over the next decade. of the $24 billion that we save by cutting these subsidies to the big five, we can use over $11 billion to extend a series of critically important expiring energy tax incentives. these clean energy technologies will cut demand for oil, it will drive economic growth, it will create jobs and it will allow america to lead the global clean energy market. now, despite big oil's rhetoric, let me just tell ya, it's amazing, i see they're spending a lot of that money, all this

money here. they're not making oil but they're spending it on television to scare everybody and to say that, oh, if you take any of their money away, take any of those subsidies away, that somehow prices will rise. well, we know that despite big oil's rhetoric, cutting subsidies will not raise gas prices. we know that, why? because experts from the united states treasury department, from the nonpartisan congressional research service, and from oil executive testimony that came before the finance committee that i sit on made it very clear that's not the case. but more than that, some of the most important tax policies that will be extended in this bill will help drive down gas prices by creating competition for oil as a transportation fuel. these incentives include one for

biofuels, like cellulosic ethanol, biodiesel, also incentives for natural gas and propane used as a transportation fuel. there's also incentives for alternative fuel refueling infrastructure and for electric vehicles. taken together, these incentives are laying the groundwork for a truly competitive market, where we are not beholden to one type of fuel to power our vehicles. but the good news doesn't even end there. there are also tax incentives that will help the united states compete for the renewable industries of the 21st century. for example, the section 1603 treasury grant program has helped finance renewable energy projects around the country. it has leveraged over 35 billion in investments to create tens of thousands of energy projects. in my home state of new jersey

alone, 750 grants were given for solar, geothermal, landfill gas, hydropower, wind projects. these projects are worth over $350 million, creating many jo jobs, and will help new jerseyans on energy bills for decades to come. another renewable energy credit is the production credit for wind. since the last reauthorization of p.t.c. in 2005, wind power capacity has more than tripled. but if that production tax credit is not extended, it's estimated that annual installations of wind will drop by more than 75% and wind supported jobs will decline from 78,000 in 2012 to 41,000 in 2013 and total wind energy investment will drop by nearly two-thirds. so, madam president, it's time

to get back to reality, time to tell middle-class families struggling to make ends meet that fairness means everyone -- everyone -- pays their fair share when it comes to reducing the deficit. and it means ending ridiculous taxpayer giveaways to the most profitable -- five most profitable companies in the world. i just cannot understand how the oil industry is spending money on radio and other forms of -- of media to say, oh, my god, if you take any of our subsidies away -- and these even aren't all of the subsidies they have, these are just a couple, the $24 billion over ten years -- they're going to make a trillion dollars over ten years. so you're telling the american people that when you're going to make a trillion dollars over ten

years that we, collectively as taxpayers, must still give you $24 billion or else somehow a trillion minus $24 billion wouldn't be enough for you in profits, that you would gouge the consumer at the pump? i don't think the american people are going to accept that. it's time for to us stop wasting taxpayer money on oil subsidies and use this money to invest in clean energy, in jobs, in lowering the deficit. all of that can be done on this opportunity when we vote in favor of moving forward on s. 2204, the repeal big oil subsidies act. it's time to put the interests of the american people ahead of the moneyed interests in this congress. with this vote, and then moving

forward -- i hear my colleagues may very well vote for us today to have a debate, which i more than welcome. i'm looking forward to it. i've got a lot more to talk about in this regard. but then won't vote at the end to repeal the subsidies. so i guess that what we'll hear is a chorus of voices that will speak about defending big oil and defending its $24 billion in subsidies and justifying that even with a trillion dollars in profits, they still need in -- they still need to get their hands into the pockets of taxpayers and take another $24 billion in addition to what they get at the pump so that they can make even more profits. and somehow there'll be a justification for that. i hope the american people will be watching, because that type of justification is beyond comprehension. i know it as i hear it from

families in new jersey. i'll also be talking about, when we -- i hope we will have this debate. i hope we'll be able to move forward. i want to talk about how, you know, i hear my colleagues talk about "drill, baby, drill." well, it's -- i was incredulously amazed that actually we are now exporting from the united states millions of gallons of gasoline and refined petroleum products everyday to other places in the world. it seems to me that if we drill it here, particularly on federal lands and water, we should keep it here. because obviously the bigger the supply we have, the more we're going to create downward pressure on prices. but i think most americans would be pretty shocked to know that we're actually exporting. they think everything that's created here is kept here. which is why i found it interesting -- i keep hearing my colleagues talk about the

keystone pipeline. there are th? you make it with materials made in america here so that we can ensure that american jobs are created with it and if you keep the energy here -- not export it someplace around the world -- then there are a lot of people who would say, yea, along with the right environmental safeguards, yeah, let's consider it. but overwhelmingly, that was voted against. so so much for american jobs, so much for securing american energy because what's the use of a pipeline to bring an energy source and then have it sent to other places in the world? that doesn't help us. so i'm a big believer, if you're going to drill it here on federal lands and water, you are gagoing to keep it here. i am a big believer, if you're

going to do something like keystone, let's make sure it is made with american hands and at the end of the day, energy is kept here in the united states. i am a big believer, in a time of shared sacrifice, it is wrong to ask working families to do more and yet give the oil companies $24 billion and they'll make $1 trillion in profits. it is wrong to say to a sounded soldier we're going to cut programs that will help you get back on your feet and your long-term health care but we're going to give big oil $24 billion. it is wrong tell students who are trying to determine their future and get access to that college education and who will encumber significant costs along the way, no, you pay more, but we're going to give big oil $24 billion. it's goin wrong to tell seniorst we're going to end medicare as we know it, but we're going to

give big oil $24 billion. that is beyond my comprehension. so i look forward to the debate, because it is going to be very interesting to see some of the remarkable ways in which people are going to have to explain that. i don't think it is explainable to the american people. tonight's vote starts a process on who's on -- which side are you on? are you on the side of the american taxpayer or are you on the side of big oil? i hope an overwhelming number of our colleagues will, starting tonight and moving towards final passage, say we're on the side of the american taxpayer, the american consumer. and if we do that, we can create some justice in this process, we can help create competition in the energy market to drive down prices, we can reduce the deficit by another $12 billion, and we can be a lot fairer to working families in this

country. that's the choice before us. that's a choice i hope the senate will make in a positive way. with that, madam president, i yield the floor and observe the absence of a quorum. the presiding officer: the clerk will call the roll. quorum call:

quorum call: the presiding officer: the senator is recognized. without objection, so ordered. the clerk will report the motion to invoke cloture. the clerk: cloture motion. we the undersigned senators in

accordance with the provisions of rule 22 of the standing rules of the senate hereby move to bring to close a debate on the reid motion to proceed to calendar number 337, s. 2204, a bill to eliminate unnecessary tax subsidies and he promote renewable energy and energy conservation. signed by 17 senators. the presiding officer: by unanimous consent, the mandatory quorum call has been waived. the question is: is it the sense of the senate that debate on the motion to proceed to s. 2204, a bill to eliminate unnecessary tax subsidies and promote renewable energy and energy conservation, shall be brought to a close? the yeas and nays are mandatory under the rule. the clerk will call the roll. vote:

vote:

the presiding officer: is there anyone in the chamber who wishes to vote or to change their vote? on this vote, the yeas are 92, the nays are 4. three-fifths of the senators duly chosen and sworn have voted in the affirmative, the motion is agreed to.

the presiding officer: the senator from new york. mr. schumer: i suggest the absence of a quorum. the presiding officer: the clerk will call the roll. quorum call:

>> the senator from new york. the clerk will call the roll. tt

quorum call: quorum call:

mr. durbin: madam president? the presiding officer: the senator from illinois. mr. durbin: i ask consent the quorum call be suspended. the presiding officer: without objection. mr. durbin: i ask consent the senate proceed to a period of morning business with senators permitted to speak therein for up to ten minutes each. the presiding officer: without objection. mr. durbin: i understand that s. 2237, introduced earlier today by senator reid of never and i ask for its first reading. the presiding officer: the clerk will read the title of the bill for the first time. the clerk: s. 2237, a bill to provide a temporary income tax credit for increased payroll and extend bonus depreciation for an additional year and for other purposes. mr. durbin: madam president, i now ask for its second reading and i object to my own request. the presiding officer: objection is heard. mr. durbin: i ask unanimous consent -- the presiding officer: the bill will be read for the second time on the next legislative day. mr. durbin: thank you, madam president. i ask unanimous consent the senate proceed to executive session to consider the following nominations: calendars number 615, 616, 617, 618, 619, 620, 621, 622, 623, 625, 626,

627, 628 and all nominations 627, 628 and all nominations all nominations place on then secretary's desk on the marine corps and navy, mena nominations be confirmed or blocked motions to reconsider and laid upon they table without an injection or debate.at if no other motions in order, tt with any related statements bett printed in record, may thect president be noted of the senate's action. >> without objection.ar >> president, the appointment appears separately in the record is made by the chair. >> without. objection. t, >> it is the consent of when th, senate completes its business today, the senate will resume ao 10:00 a.m.our the general proceedings will be approved today.minuteeach,

senators permitting the speaker up to 10 minutes each.signees, with the time equally dividedg e and controlled by the twoajory c leaders of what the republicansf controlling the first and 337 democrats controlling the second. calendar number 337, 22042ll reveal big oil subsidy act. finally, at 12:30 p.m., the senate accommodates the weekly caucus meetings and the official photograph of the hundred 12th congress. >> without objection. >> madam w president, we hope to continue on tuesdays section, i asked to return if there's noor. further >> the senate stands adjourned until 10:00 a.m. tomorrow.

>> the senate today begin work on a bill to roll back tax breaks for oil and gas companies. originally, the senate was not expected to get the 60 votes needed to move forward with the bill. but it did with a vote of 92 to four. congressional reporter for the washington post, senate with the leaders had their caucus so that republicans focus on tax cuts, energy costs and gas prices. later this week, the chamber is expected to take up the postal service bill, which would close thousands of post offices and and saturday mail delivery. you can see live coverage of the senate always here on c-span two. >> starting april 1, see the winners of the student tim video documentary contest 

we will air the top 27 videos mornings at 6:50 a.m. eastern time. and the students who created them. for a preview of the winning video, check student cam.org. congratulations to everyone who participated this year. >> you're watching c-span two. weekdays, featuring live coverage of the u.s. senate. weeknights watch key public policy events. and watch the tv. you can see past programs, visit her schedule, and see our website. >> chancellor george osborne unveiled a budget last year before members of parliament in the british house of commons. the annual budget speech proposes spending plan for reducing the deficit and

creating job growth. the chancellor chancellor said the cost of funding the mission in afghanistan was 2.4 billion and priestly forecasted. the top income tax rate will be reduced from 50 to 45% by next april. from london, this is about one hour and 15 minutes. >> [cheers] >> mr. speaker, this budget rewards work. wor. britain is going to earn its wae in the world . there is no other road to recovery. budget supports workingng families and helps those looking for work. it unashamedly ask business, ana it is on the side of aspiration, those who want to assert themselves and their families. this budget reaffirms our unwavering commitment to deal de with britain's record debt.

but because we have artie takena physical decisions, this wouldgt be a reforming budget that seeks to repair the disastrous economic growth that created those debts. a model while the national debt britai doubles. mr. speaker, this is how you will earn its way in the world. with our reaching tax reform. a simpler tax system, whereked taxpayers understand what they are being asked to pay. a tax system that is more competitive for business than ldy other major economy in theor world. a tax system where millions of the lowest paid in the highest bidder tax altogether. while the tax revenues we get from the wealthier increase. reforming tax is only part of the story. we will earn our way in the

world large and small, a modelle infrastructure, new growth rulei and employment rolls, the kinds of schools and universities of colleges schools and workforcesd need. in return, british business will have the confidence to expand and be the best. we earn our way in the world. we need to stop being afraid.s we identify your strengths and enforce them, backing industries by aerospace, energy, pharmaceuticals, creating media. a deliberate strategy to create a more balanced national economy where financial services arecial strong, but they are not the buy only strength to a our party. mr. speaker, stability comes first. the report from the office of thdget responsibility minds us

of the risk of responsibly. despite the action of the european centralcr bank, the impact on the european economy has been significant. countries are now in recession. in today's report, countries are down .8% 2.83%.do the world economic growth has also gone down by .2% and .3%, respectively. of course, britain is not immunn from these developments in our largest export market. the ob are we face today, the situation in the euro areahe remains a major risk to our forecast. another risk is a further fight in real crisis. there is no doubt that the highl oil prices driven by real demand

and the iranian situation, is of great concern across the world.s it means that the overall assessment of the outlook and risk is broadly unchanged asgede members report. despite these headwinds, there are, however, a more positive or sign. we expect the british economy t avoid a recession with growth this year, they say that the british economy carried a little more than previouslybudget anticipated. the office of budgetro responsibility is revising us 2.8% [cheers] then they forecast 2% next year, 3.7%. >> the house has to breathe.heqd

we can't do that on either sidet >> they then forked forecast 2% next year and 4% in 2015 and ish 2016. i it is the same as it was lastau 8.tumn, they expect to keep his 30.7% before falling each year to 6.3% by the end of theave re forecast period, but they havee revived down that claimant expeo count, which they now expect to be about 100,000 lower in each of the nyeext four years than previously forecasted, takingant 81.76 this year rather than they 1.8 million they forecasted in november.mi they forecast 1 million more jobs in the economy over five years. by the end of

the forecast period. door of ay writing to the >> i am today writing the governor of the bank of england to reaffirm the inflation target of 2%.nt the governments in credible and responsible fiscal policy once a consistent policy. i assure the policy rule remain infl in place for the coming year. inflation is coming down, and so is the dataset. when this government takes office, the budget was 11%. it was one in four of every single pound. the debt is falling. to it will be expected to reach aiv new percentage next year. it will be 40% only took orders

tube 43% next year. there will be no definiteoday. giveaway today, because we have taken difficult decisions, nor do we need to tighten further, f over the five-year period this is a neutral budget, and this is rehieved through a modest reduction in taxation and spending. to tho so, mr. speaker, let me turn to those fiscal forecast. the whole house will be pleasede to know that these have improved a little from the forecast i presented in november.ear [cheers]n >> coming in atds tt i 126 billion pounds, 1 million ir the autumn, and over 30 millionr in the year before we came to office. it will then fall to 120 billion next year if you exclude the transfer of royal mail pension.l it will fall to 98 billion in 2013 and 2014, and 75 billion a

month than 52 billion, reaching 21 billion by 2016. a total borrowing is 11 million pounds then when lasd forecasted in the autumn, and my this will be used to pay down debt. in my first budget, i have set the government achieving a fiscal mandate by the end of the five-year her hasn't. the ob are confirmed that we are on course to achieve this mandate and the lemonade theent structur current deficit by 2016 -- 2017 they also said we are on course to reach our target with debts falling as a percentage of national income by the end of the parliament in 2016 and 2017t before following the previous year. a balanced structural current dedget and falling that, our deficit reduction plan, is ondey course.er,

mr. speaker, we will not waver from it. so to do so would risk a loss of confidence and a sharp rise in interest rates, and we will not risk that. we instead, we reinforced today our commitment to fiscal responsibility, not just this year, but in the years ahead. te the transfer of the 28 billion-pound active from the royal pension fund will free ite from its pension debt in short a of pensions of hard-working people are paid and helped to bring in a second investment. some would have been tempted to spend the windfall. i do not propose to spend it. of instead, i have used it to pay>, off debt [cheers] >> we will also maintain our si. control on welfare spending. the passing of the welfarerefoco reform act two weeks ago was a d good measure, and i pay tributeo to the pensions secretary.

all my colleagues for supportinh against determined opposition from those who defend unlimited welfare. even with the act, the welfareie budget is set to rise to one d third of all public spending. if nothing is done to curb welfare sooner, the full weightf of the spending restraint will fall on budget. am tay the next review will have to confirm this. iys am today showing that we wil maintain the same rate of reduction in key parliament shall spending rate we will need to make savings and welfare ofny 10 billion pounds by 2016. we will also direct devisinghi wests of an aging population and the burden it is placing on future generations. we will be publishing a whited paper. i have also said that we will consider her puzzles to managese future increases in the state

pension age, beyond the increases already announced. i can confirm today that there will be an automatic review of the state pensionc age to assurs it keeps pace with the increase in longevity, details of how this will operate will be published along the side the ob ours long term fiscalust sustainability report. one area, mr. speaker where expect government spending is expected to be lowered than planned is, s the prime ministers indicated, is afghanistan. we were reminded again yesterday of the sacrifice so many of our servicemen and women have made.i as the prime minister a clear with u.s. president last week, uk forces will seek combatend of operation by being and 2014. t i can tell the house that the cost of operations which areby funded by the government speciay reserve, entirely separate from the defense budget, is expectedt to be a total of 2.4 billion pounds lower than 2

planned over the remainder of p the parliament.loth let me be clear today the full s cost of operations will continuo to be met from the reserve, andr our brave armed forcesme will gt the equipment they need to complete the job.i but i can enter some of the cos benefit of the lower cost by those who fight so hard and givs so much for our nations ex security, we will fund an extrae a0 million pounds of improvements and accommodations of our armed forces. >> [cheers] >> i will also double the family's welfare grant, which is used for additional support for families left behind of those who are deployed. we have already doubled the operational ounce. today i'm doubling the rate off council tax relief, that. thousands serving our country and operations overseas will receive 100% relief on an average council. mr mr. speaker, our commitment to g

reducing the deficit is keeping interest rates low. in this budget, we take measures to ensure thatur the benefit tol low market interest rates arecrs felt across the economy they are certainly benefiting the taxpayer thanks to the reduction in the deficit and our low interest rates. this government is saving a total of 36 billion pounds in debt interest payments compared to its predecessor. this year is the 400th anniversary of the creation of the treasury board and the modern treasury. there have been times recently when the treasury has been borrowing money more cheaply than at any previous time in that 400-year history. and few countries in europe could say that at the moment. this reflects the confidence investors have in britain's ability to pay its -- >> here, here! >> i now want to test whether we can extend these benefits further into the future and diversify our portfolio. at present the longest guild we

currently offer to the market is 50 years. the debt management office will consult on the case of issuing guild longer than 50 years, something britain last was able to do six decades ago. we are also taking the opportunity to rebuild britain's reserves which have fallen to historically low levels. i can confirm, mr. deputy speaker, our gold holdings have prisonnen in value to 11 billion pounds. sadly, this does not include the 400 or so tons of gold sold a decade ago for two billion pounds which would now be worth six times that at over 13 billion pounds. mr. deputy speaker -- [inaudible conversations] >> order! >> working families are already being helped by historic low

mortgage rates. the new buy scheme that we introduced last week used the government's balance sheet to help those who cannot afford the large deposits. it comes alongside a new, reinvigorated right to buy and to insure that there are new homes to buy, we are today expanding the britain building fund that provides up-front finance to construction firms. we are also passing on our low interest rates to small businesses through the national loan guarantee scheme. this started operation yesterday. barclays, lloyd, the rbs are all involved. 20 billion of guarantees in total will be available. in the autumn statement, i also allocated one billion pounds to invest in funds to lend directly for the mid cap businesses that are the backbone of our economy. this is an alternative source of finance for the banks. the response has exceeded our expectations, 24 funds have

submitted proposals. i am today short listing seven of them, and such has been the quality of the bids, i am also today expanding the enterprise finance guarantee. credibility, the low interest rates they bring and passing those low rates to families and businesses, these are necessary for growth, but alone they are not sufficient. and as a nation we have to make a choice. this country became seduced by large deficits and the illusion of cheap finance. now, do we watch as the brazils and the chinas and the indias of this world power ahead of us in the global economy, or do we have the national resolve to say, no, we will not be left behind, we want to be out in front? and that is this government's resolve. under this government britain has moved into the top ten of the most competitive places in the world to do business, but we

have to do more, and here's how. first, exports. over the last decade, our share of world exports shrank as germany's grew. we sold more to ireland than to brazil, russia, india and china put together. that was the road to britain's economic irrelevance, and we want to double our nation's exports to one trillion pounds this decade. so we're expanding u.k. export finance and setting out new plans to help smaller firms in new markets. exports abroad must be accompanied by investment at home. britain has a reputation as a remarkably open and welcoming place for investment. we must never allow protectionist rhetoric to creep into our political system. >> here, here! >> instead, we're actively seeking investment from overseas pension and sovereign wealth funds and working to develop london as a new offshore market for the chinese currency.

we also want investment from british pension funds and british infrastructure, and we're now working with a dozen of the large pension pension schemes specifically on that. we're the first british government to set out a national infrastructure plan the projects we're going to prior toize in the -- prioritize in the coming decade. the roads, railways, broadband networks we all need and we have identified. i also believe this country must confront the lack of airport capacity in the southeast of england -- [inaudible conversations] we cannot cut ourselves off from the fastest growing cities in the world. and the transport secretary will set out government thinking later this summer. we want to look at the opportunities for increasing the role of private investment in the road network, learning lessons from the water industry. and i confirm today that network rail will extend to the northern

hub adding to the electrification of the railways by upgrading the hope valley between manchester and sheffield and improving the manchester to bradford lines. for years, for years transport investment in the north of england was neglected. not under this government. [cheers and applause] we are working with our greatties to devolve decision making powers, and we are striking a groundbreaking deal this week with manchester to support 1.2 billion pounds in growth-enhancing infrastructure in that city. we will support 150 million pounds of tax increment financing to help local authorities promote development, and we will provide an extra 270 million pounds to the growing places fund. in all this we are working with

local areas to support their ideas for growing the private sector in parts of the country where the state has taken a larger and larger share of the economy. mr. deputy speaker, the major of london is also a very effective champion for the city he runs so well. [cheers and applause] we will work with him on plans this summer to go on investing in london transport, lengthening commuter trains, extending the underground and exploring new river crossings in east london. so from the allocation made for the major through the -- mayor, he will be creating a new 70 million pound development fund to attract new business and new jobs. >> here, here! >> and the mayor has persuaded me of the opportunities the new royal dock enterprise zone offers our largest city if we also enhance capital allowances there, so we will.

mr. deputy speaker, 24 enterprise zones are now going ahead across england. chinese investment is pouring into the zone in liverpool, the zone in the west midlands is already expanding. i want other parts of the united kingdom to benefit from these policies. and the chief secretary can confirm today that we will offer enhanced capital allowances for businesses starting up in the new scottish enterprise areas in dundee, irvin and there will be a new welsh enterprise zone while we look forward to the first sewer prize zone -- enterprise zone in northern ireland. i also want to see investment in renewables. we've launched the green investment bank, open for business next month. we've introduced the price to our tax system to encourage investment, and we set the rate today. combined heat and power plants will not be liable to carbon price support rates on fuels

used for heat. renewable energy will play a crucial part in britain's energy mix, but i will always be alert to the costs we're asking families and businesses to bear. environmentally sustainable has to be fiscally sustainable as well. the carbon reduction commitment was established by the previous government. it is cumbersome, bureaucratic and imposes unnecessary costs on business. so we will seek major savings in the administrative costs of the commitment for business, and if those cannot be found, i will bring forward proposals this autumn to replace the revenues with an alternative environmental tax. gas is cheap and has much less carbon than coal and will be the largest single source of lek terrorist in the coming -- electricity in the coming years. and the energy secretary will set out our strategy in the autumn to secure investments. and i also want to insure we extract the greatest possible amount of oil and gas from our reserves in the north sea.

we are today introducing a major package of tax changes to achieve this. we will end the uncertainty over decommissioning tax relief that has hung over the industry for years by entering into a contractual approach, and we are also introducing new allowances including a three billion pound new field allowance for large and deep fields to open up west of shetland, the last area of the basin left to be developed. a huge boost for investment in the north sea. >> here, here! [laughter] >> now, mr. deputy speaker, we shouldn't be shy about identifying our successful industries and reinforcing them. around one-fifth of the world's top 100 medicines originate from u.k. research, so we're backing our life sciences sector through creating the -- [inaudible] and cutting taxes on patients to

make this one of the most attractive places in the world to invent new medicines. we've protected the science budget, now we're committing 100 million pounds of support alongside the private sector for investment in major new university research facilities. and with the world's second largest aerospace industry, we will also establish a u.k. center for aerodynamics that will encourage innovation in aircraft design and commercialize new ideas. and today we also set this industrial ambition, that we turn britain into europe's technology center. we will start with digital content. the film tax credit helped generate over a billion pounds of investment in the u.k. last year alone. today i am announcing our intention to introduce similar schemes for the video games, animation and high-end cd production industry. not only will this help stop premium british tv programs like birdsong being made abroad, it

will also attract top international investors like disney and hbo to make more of their premium shows in the u.k., it will support our brilliant video games and animation industries too. because, mr. deputy speaker, it is the determined policy of this government that we keep wallace and grommet exactly where they are. [cheers and applause] >> order, order! order, order! i would have thought that the government's side would want to hear more from the chancellor. [laughter] >> mr. deputy speaker, to be europe's technology center, we also need to be -- have the best technology infrastructure. two years ago britain had some of the slowest broadband speeds in europe. today our plans will deliver some of the fastest with 90% of

the population having access to super fast broadband and improve mobile phone coverage for rural areas and along key roads across the u.k. but we should not be come play sent by saying it's enough to be the best in europe. so today we're funding ultra fast broadband and wi-fi in ten of the u.k.'s largest cities. belfast to birmingham, bradford, bristol, manchester, leeds and london. now, my honorable friend from brighton campton asked me to help small cities too -- no doubt with his own city in mind. i agree, 50 million pounds will be available for smaller cities, too, and the fastest digital speeds in the world available in our cities with the most connected countryside in europe, the most created digital continent everywhere. that is what a modern industrial policy looks like. and the business secretary and i have asked michael to review by

the autumn how government spending departments and other public bodies can work better with the private sector on economic development. from liverpool to canary, michael knows how it's done. and, of course, these projects succeeded, these projects succeeded because they were not killed off by the planning system. you can't earn your future if you can't fete planning per -- get planning permission, and global businesses have diverted specific investments that would have created hundreds of jobs in some of the most deprived communities in britain to countries like germany and the netherlands because they can't get planning permission here. that is unacceptable. and next week my right honorable friends, the community secretary and the planning minister, will publish the results of our overhaul of planning regulation. we're replacing a thousand pages of guidance with just 50 payments. we're introducing a presumption

in favor of sustainable development while protecting our most precious environments. the new policy comes into effect when the national planning policy framework is published next tuesday. this is the biggest resumption in business red tape ever undertaken. as a country, we also want to make the most of the olympic and paraolympic games. some of the biggest events will be on a sunday when millions of visitor come to britain to see them. we don't want to hang up a "closed for business" sign, so we will introduce legislation limited to relaxing the trade laws for eight sundays only starting on july the 2nd. mr. deputy speaker, earning our way in the world means giving young people the skills to compete. and in time my right honorable friend, the education secretary's school reforms will do more to improve the economic performance of our country than

any budget measure ever will. but we've got to help the young adults who have already been let down by the school system. we're offering a record number of apprenticeships, and our youth contract comes into force next month. i can tell the house we are also exploring the idea of enterprise loans. young people get a loan to go to university or college. now we want to help them get a loan to start their own business. >> here, here! >> we're also looking to see whether we can make public sector pay more responsive to local pay rates. it is something, as we've just heard, the last government introduced into the court system. london waiting already exists across the public sector. indeed, the opposition have proposed the interesting idea of regional benefit rates. so we should see what we can do to make our public services more responsive and help our private sector to grow and create jobs in all parts of the country.

we've asked the independent pay review bodies to look at this issue. today we're publishing the evidence of the treasury submitting to them and some departments will have the option of moving to more local pay for those civil servants through pay freezes. mr. deputy speaker, new infrastructure and investment, ambitious reforms on planning, education and welfare to help businesses to create jobs, these all help britain earn its way in the world, but we also need a tax system that supports work. 200 years ago adam smith set out the four principles of good taxation, and they remain good principles today. taxes should be simple, predictable, support work, and they should be fair. the rich should pay the most and the poor the least. the tax system this government inherited from its predecessor has drifted far from these principles. >> here, here! >> we've already addressed some

of the problems. we've established an office of tax investigation to drive out complexity. companies are moving to britain, not away. we stopped the jobs tax. we've taken one million low-paid people out of tax altogether. >> here, here! >> but now we need further reform. we need to get written a modern tax system fit for the modern world. the first goal is a far simpler tax system which businesses can easily navigate and where ordinary taxpayers understand what they're being asked to pay. so we will radically change the administration of tax for our smallest firms. last year i asked the office of tax certification for recommendations. they have proposed that we tax small terms on the basis of the cash that passes through their businesses rather than asking them to spend a huge amount of time doing calculations designed for big businesses. i agree. so we will consult on this new cash basis for calculating cash

for firms with a turnover of up to 77,000 pounds -- double, actually, what the office proposed. this will make filling in tax returns dramatically simpler for up to three million pounds. we're also pressing forward with our ambition to integrate the operation of income tax and national insurance i announced in last year's budget so we don't ask businesses to run two different payroll tax administrations, a detailed consultation on how we do this is being published next month. we will also address some of the loopholes and anomalies in our v.a.t. system. for example, soft drinks and energy drinks are taxed, sports drinks are not. some new hot takeaway products in supermarkets are not, and some companies using the v.a.t. rules to avoid the tax that their competitors are paying. we're publishing our plans today to remove loopholes and

anomalies, but we keep the broad exemptions on food, children's clothes, printed books and newspapers. we should also simplify the eight related allowances which the office of tax simplification had highlighted as a particularly complicated features. it points out many pensioners don't understand them. these allowances require around 150,000 pensioners to fill in self-assessment forms, and as we have real increases in the personal allowance, their value is already being eroded away. so we will simplify the tax system by doing away with the complexity of the additional age-related allowances for anyone reaching the age of 65 on or after the 6th of april, 2013, and i will freeze the cash value of the allowance for existing pensioners until it aligns with the personal allowance. this will protect the existing level while introduce agnew, single, personal allowance for all. it is a major simplification,

and no pensioner will lose in cash terms. under this government pensioners next month will receive the largest-ever cash increase in the basic state pension of -- [inaudible] now we want to simplify the basic state pension and its interaction with the second state pension. i pay tribute to the work my honorable friend, the pensions minister, has done on this. such is the complexity of this system. only someone like our pensions minister can work out exactly what someone's entitled to and what they need to save, so i can confirm that we will into -- introduce a new means test. it will be based on contributions, and it will cost no more than the current system in any year. we will brick forward further -- bring forward or further details later this spring.

a single, generous pension for those who have worked hard and saved hard all their lives and a further major simplification of our tax and benefit system. mr. deputy speaker, in the information age people should know what taxes they're paying and what their money is being spent on. now, my honorable friend, the member from ipswich, recently proposed to this house that we send the taxpayers an annual statement showing them just that. i think this is an excellent idea, and i intend to put it into practice. >> here, here! >> hmrc contrasts half of taxpayers each year from 2014. these 20 million taxpayers will at the same time receive a new personal tax statement. this will tell people how much income tax and national insurance they have paid, their average tax rate, how this contributes to public spending. in other words, how much proportionally of their tax bill

goes to fund the health care, education or welfare bills and how much it spent on servicing interest payments on the national debt. people will know what they're paying and what they're paying it for. a tax system that is simple and transparent. >> here, here. >> now, now, mr. deputy speakert is our first goal. our second goal is a tax system that is more competitive for business than any other major economy in the world. our predecessors wanted to increase taxes on small businesses. instead we've cut the tax rate on small companies to 20%. >> here, here. >> our predecessors wanted to increase national insurance on jobs, and we've cut it. our new control foreign company rules will be legislated for in the coming finance bill and will stop global firms leaving britain as they were and encourage them to start coming

here. this government also supports research and development here in britain instead of abroad. we've already increased the generosity of the r&d tax credit for smaller firms. i confirm that for next year we will also introduce an above the line tax credit like the cbi has campaigned hard for, and we will help new start-up businesses recruit and retain talent by doubling the grant limit to 250,000 pounds and easing the rules so that academics in our universities can turn great ideas into great companies. the treasury will review for this autumn what more we can do to encourage employee ownership. all of these tax reductions will help win business for britain. but the headline rate of corporation tax remains the most visible sign of how competitive our country is. we've already cut the rate from 28% to 26%. this april it is due to fall again to 25%.

i can tell the house today that we will have a further cut of 1% to be implemented right away. from next month britain will have a corporation tax rate of just 24%. >> here, here! >> and we will continue with the two further cuts planned next year and the year after so that by 2014 britain will have a 22% rate of corporation tax. and this is the biggest sustained reduction in business tax rates for a generation. a headline rate that is not just lower than our competitors, but dramatically lower, 18 percent lower than the u.s., 16 percent lower than japan, 12 percent lowe france and 8 percent lowe germany. an advertisement for investment and jobs in britain. gha here, here! >> and it is a rate that puts our country within sight of a 20% rate of business tax that would align basic rate income tax for small companies' rate

and the corporation tax rate. i'm also increasing the rates of the bank levy to 0.105% from next january so that the additional corporation tax cuts do not benefit the banks -- [laughter] and, and so our levy will in addition raise to two-and-a-half billion pounds a year the -- [inaudible] now, mr. deputy speaker, that brings me to the main duties. [inaudible conversations] [laughter] let me start with alcohol duty. the government will shortly be publishing its alcohol strategy to address the growing problem of alcohol abuse and the many billions of pounds it costs our nhs and the criminal justice system. but today i have no further changes to make to the duty rates set out by my predecessor.

turning to tobacco duty, smoking remains the biggest cause of preventable illness and premature death in the u.k. there is clear evidence that increasing the cost of fact encourages smokers to quit and discourages young people from taking it up. so duty on all tobacco products will rise by 5% above inflation, that's 37 pence on a packet of cigarettes, and this will take effect at 6 p.m. tonight. [inaudible conversations] one area where i am today making substantial changes in -- one area, mr. deputy speaker, where i am making substantial changes is gamble duty. [laughter] the treatment of gaming machines is being repeatedly challenged by operators in the courts, so i will introduce a new machine games duty with a standard rate of 20% and a lower rate for low stakes and prize machines of 5%

of net takings. the current duty regime for remote gambling introduced by the last goth was levied on a place of supply basis. this allowed overseas operators to largely avoid it, and much of the industry has, as a result, moved offshore. 90% of online gambling consumed by our citizens is now supplied from outside the u.k., and the remaining u.k. operations are under pressure to leave. this is clearly not fair and not a sensible way to support jobs in britain. so we invent or introduce a tax regime based on the place of consumption, where the customer is based, not the company. and from this april we will also introduce double taxation re4r50e6 for remote gambling. these changes will create a more level playing field and protect jobs here. i turn now to fuel and vehicle excise duties. high oil prices have put real pressure on household budgets and on businesses. that is why we took action in last year's budget to cut fuel duty so it is six pence lower

than our predecessors planned. we have also scrapped the last government's fuel duty escalator of annual above inflation rises regardless of the oil price. and we are today confirming the fair fuel stablizer. above inflation prices will only return if fuel price falls below 40 pounds, currently equivalent to around $75. these measures mean this goth has eased the burden on motorists by 4.5 billion pounds at a time when money is very short. i do not propose to make any further changes to the fuel duty plans already set out. i am increasing vehicle excise duty by inflation only to encourage fuel-efficient fleets we will extend the 100% first-year capped allowance for low emission business car, e are lease the co2 terrible hold for allowance rates and increase the list price of company cars subject to tax.

i can also announce that i am, again, freezing vehicle excise duty for road -- [inaudible] mr. deputy speaker, i now turn to personal and property taxation. my goal is a tax system where the lowest paid are lifted out of tax altogether. >> here, here! while the revenues we get from the richest increase. now, most wealthy people pay their taxes, and without them we could not begin to afford the public services upon which this country depends. but under the last government it was the boast of some high earners that with the help of their accountants, they were paying less in tax than their cleaners. i regard tax evasion and, indeed, aggressive tax avoidance as morally repugnant. >> here, here! >> we've increased both the resources and the number of staff working on evasion and avoidance at hmrc.

taken together the anti-avoidance measures in this year's finance bill will increase fax revenue over the next five years by around a billion pounds and protect a further ten billion pounds that could have been lost. this week we have signed a further agreement with the swiss to stop u.k. residents from evading tax. we've done all these things, but today we do even more. on coming to office, i asked graham aaronson to study whether a general avoidance rule could work in the u.k. tax system. he recommended that such a rule would improve our ability to tackle tax avoidance without damaging the competitiveness of the u.k. as a place to do business. we agreed, so we will introduce one. we will consult on the details of the new rule and legislate in next year's finance bill. a major source of abuse and one that rouses the anger of many of our citizens is the way some people avoid the stamp duty that the rest of the population pays

including by using companies to buy expensive residential property. i have given plenty of public warnings that this abuse should stop, and now we are taking action. i am increasing the stamp duty land tax charged applied to residential properties over two million pounds bought into a corporate envelope. this charge will be 15%, and it will take effect today. [cheers and applause] we will also consult on the introduction of a large annual charge on those two million pound residential properties which are already contained in corporate envelopes. and to insure the wealthy nonresidents are also caught by these changes, we'll be introducing capital gains tax on residential properties held in overseas envelopes. we are also announcing legislation today to close down

the subsales relief rules as a route of avoidance. and let me make this absolutely clear to people. if you buy a property in britain that is used for residential purposes, then we will expect stamp duty to be paid. this is the clear intention of parliament, and i will not hesitate to move swiftly, without notice and retrospectively if inappropriate ways around these new rules are found. cause of action people have been warned. now, mr. deputy speaker, it is fair when money is tight and so many families could do with help that those buying the most expensive homes contribute more. from midnight tonight we will introduce a new stamp duty land tack rate of 7% on properties worth more than two million pounds. i also intend to deal with the unlimited use of income tax relief. let's be clear.

most rich people pay a lot of tax. it is also right that we have tax relief that promote investment, support charitable giving and reflect genuine business loss. but it can't be right that some people make unlimited use of these reliefs year after year. everyone in this country and particularly those with the highest incomes should contribute a fair share to the exchequer. now, some relief like the enterprise investment scheme and pension relief are already capped, and i don't intend to make any significant change to pensions relief in this budget. but to make sure that those on the highest income contribute a fair share, i am introducing a new cap on those reliefs that are currently uncapped. from next year anyone seeking to claim more than 50,000 pounds of these reliefs in any one year will have a cap set of 25% of their income. we've capped benefits, now it is right to cap tax relief too.

mr. deputy speaker, that brings me to the rates of income tax and the additional rates of 50 pence. [inaudible conversations] this tax rate is the highest in the g20. it is higher not just in the tax rate of america, but also of major european countries like france, italy and germany. it is widely acknowledged by business organizations and international observers as harming the british economy. and like the previous chancellor who introduced it, i've always said it was temporary. but i also said three years ago that i would not be prepared to reduce it while we were asking the whole public sector to accept a pay freeze, and i will stick to those pledges. a 50-p tax rate can only be justified if it raises significant sums of money. in last year's budget, i asked her majesty's revenue and

customs to look at the evidence and especially to look at the self-assessment tax receipts that have come in since this january. i am publishing that report today. and what it reveals is that the 50-p tax rate has caused massive distortions. hmrc find that an astonishing 16 billion pounds of income was deliberately shifted into the previous tax year at a cost to the taxpayer of one billion pounds. something that the private government's figures made no allowance for whatsoever. [inaudible conversations] self-assessment receipts this year are below forecast by some 3.6 billion while other tax receipts have held up. the increase from 40-3 to 50-p raised just a third of the income we were told it would raise. of course, mr. deputy speaker, the previous government initially proposed the rate of

45 pence and then increased that to 50 pence. let me tell the house what her majesty's revenue and customs say about the difference between 50-p and 45-p -- >> [inaudible] >> i'm coming on to the obr. there you are. [laughter] their figures tell the story. the direct cost is only 100 million pounds a year. indeed, hmrc calculated the loss of other tax revenues may even cancel that out. in other words, it raises at most a fraction of what we were told and may raise nothing at all. so from april next year the top rate of tax will be 45 pence.ñi >> here, here! >> no chancellor, no chancellor can justify a tax -- >> order! order! we're nearly coming to the end, is and i want the same respect to be given to the leader of the

opposition so, please, chancellor of the exchequer. [inaudible conversations] >> mr. deputy speaker, no chancellor can justify a tax rate that damages our economy and raises next to nothing. it is as simple as that. [cheers and applause] and thanks to the other new taxes on the rich i've announced today, we'll be getting five times more money each and every year from the wealthiest in our society. so the richest pay more or -- >> order. you're getting very excited in the back. i'm sure you want to calm down. it's not good for your health. [laughter] chancellor of the exchequer. >> so the richer pay more, the economy benefits, britain is competitive again. now, the shadow chancellor and quite a few members have said that the hmrc report is not enough and the office for budget responsibility should pass

budget. they have. because these days the direct costing the treasury applies to every budget measure is independently assessed and certified by the obr, and unlike the previous government they also assess the consequences of forestalling. when it comes to the 100 million pound direct permanent cost to this measure, the obr say this: we believe that this is a reasonable and central estimate. and they also assess as reasonable the estimate that the new taxes i've introduced on the rich today directly raise five times that amount. that is half a billion pounds, half a billion pounds we can now use to help people on lower and middle incomes keep more of their earnings. [cheers and applause] mr. deputy speaker, in the spending review we took the difficult decision to remove child benefits from families with a higher rate taxpayer.

i said then i simply could not justify asking those earning 15 or 30,000 pounds a year to go on paying child benefits to those earning 80,000 or 100,000, and i stand by that principle. all sections of society must make a contribution to dealing with the deficit. without this measure we wouldn't get the job done. but i said i wanted to do this in a way that is fair and that does not involve setting up some new means-tested tax credit system for millions of families. and i said i would set out exactly how this measure would be implemented in this budget. we want to avoid a cliff edge that means people use all their child benefit when they earn just a pound more, so i can confirm that instead of withdrawing child benefit all at once when people earn more than the higher rate threshold, the benefit will only be withdrawn when someone in the household has an income of more than 50,000 pounds, and the withdrawal will be gradual, 1% of child benefit for every extra 100 pounds earned over 50,000.

there's no cliff edge, and only those with an income of more than 60,000 pounds lose all of their benefits. [inaudible conversations] this means an extra 750,000 families will keep some or all of their child benefit, 90% of all families will remain eligible for child benefits. now, we can afford to implement the child benefit policy in this way because instead of extending the full benefit of this budget's increase to all high rate taxpayers as we did last year, we will pass on a quarter of the benefit to high rate taxpayers and be spend the rest on helping families with children towards the bottom of the higher rate band as i've explained. mr. deputy speaker, that brings me on to the personal allowance and the central goal of this budget which is to support working families. [cheers and applause] this coalition government believes that the best way to

support working people on the lowest incomes is to take them out of tax altogether. [cheers and applause] and the best way of getting money directly into the pockets of working families on middle incomes is to increase the amount of their earnings they can keep before they pay tax. that is why this government has set itself the goal of raising the personal taxpayer allowance to 10,000 pounds. and we promise real increases every year to reach that. in my last two budgets, we have made great strides forward. last year the personal allowance rose by a thousand pounds. in two weeks' time, it will go up by another 630 thowndz to 8, 105, and together these have taken a million people out of tax altogether. today, mr. deputy speaker, i want to go much further and much faster. [cheers and applause] i am announcing the large-ever increase in the personal

allowance, that is the amount people can earn tax-free. from next april that amount will increase by 1,100 pounds. every working person on low or middle incomes will benefit. people will be able to earn up to 9,205 pounds before they have to pay any tax. [cheers and applause] mr. deputy speaker, millions of working people will be 220 pounds better off every year, that's 170 pounds better off after inflation. because higher rate earners will also benefit, 24 million people earning less than 100,000 pounds a year will gain from this measure. we are in touching distance of the goal of a 10,000-pound personal allowance that -- [inaudible] and i can tell the country that as a result of our budget, people working full time on the

minimum wage will have seen their income tax bill cut in half. and this coalition government will have taken two million people, two million of the lowest-paid people in our country out of tax altogether. [cheers and applause] mr. deputy speaker, in the middle of this parliament in difficult economic times this coalition government has not settled for a do-nothing budget. we have not ducked the difficult choices. we've taken them head on. a competitive top rate of tax, more revenues from those best able to pay, fewer relief, a tax cut for working people, support for families, low income earners taken out of tax altogether. alongside it one of the lowest rates of business tax in the world, a simpler tax code and a country where its citizens know th

going to earn our way out. stila order! order! order! order! triet >> thank you. [laughter] >> you got a new job. standing order number 51 must be

decided it without the bait. please move forward. the question is section 5 of the texas act 1968 and shall be given to the following motions. tobacco products, number 40. alcohol number 41, amusement machines due to the rates motion number 47. landfill sites in scotland number 58. the of layton's etc. number 65, and the residential property records 2 million pounds. motion number six. stop land tax acquisitions companies etc number 67. as many of that opinion say aye.

i think the ayes have it. the ayes have it. i saw no call upon an amendment to the law and this is the motion that the debate will take place today and succeeding days. the motions will be felt at the end of the budget on the 26 of march. will the chancellor please move the amendment of the motion? the question is to amend the law with respect to the national debt and public revenue and further provisions in the connections. this resolution does not extend to make any amendments with respect to the tax to provide triet for zero supply acquisition of importation, the refunding and amount of tax, the relief act so far as this applicable goes to every

description and number to come so far as the duplicable to services like the services of every direction i called the leader of the opposition the right honorable edward miller band. >> mr. deputy speaker, the chancellor spoke for an hour but if one of the phrases was missing. today is the end of we are all in it together. >> because after today's budget -- >> i don't think we need you to lead. given the respect, i expect the same respect to be given to the leader of the opposition ed miller band because after today's budget, millions will be paying more while millionaires pay less.

>> a year ago, a year ago the chancellor said in his speech and i quote now wouldn't be the right time to remove the tax rate when we are asking the others in our society and he didn't say it, he said now would not be the right time to remove the tax rate so we are asking others in our society on much lower income to make tax advice. if that is exactly what is done it. a tax credit cuts taken away and what will be chosen to make his priorities for the millionaires, a massive income tax cut each and every year. >> health and middle-income families. he has failed the test.

anyone who listens to the question what are he and the prime minister living on? 1 million young people out of work. 50 businesses going bust things have gotten worse, not better. what did he promise in last year's budget? he said he was the commander quote, but fuel in the tank of the british economy he formed a group of 2.5% in 2012. today he comes to the house and it tells us it will be .8%. growth is down last year and this year and down next year. every time he comes to the house

in the face of failure what does he offer? not a change in economic strategy, not a guarantee of jobs to the young and the unemployed and not targeting every penny he could on working families. no. we know the driving ambition of the budget for the chancellor to deliver the tax cuts of people earning over 150,000. there are 40 million in this country there will deutsch absolutely nothing with

29 million, 700,000 of them. how can the priority of income tax cuts for the richest 1% at a time when they're facing the crisis, higher energy bills, tax credits and been cut? she could have reversed the cuts to tax credits, he could have done something for pensions and in fact i think there's a tax rise in the details of the budget. he could have done more to undo the damage on the benefits but he claims he cannot afford it. let me tell the chancellor every time in the future he traced to justify an unfair decision by saying times are tough we will remind him he is the man who chose to spend hundreds of millions on those wrong choices and priorities and value. out of touch and they are on the

sound of duty, mr. dickey speaker. there are 300,000 people benefiting each and every year from the tax cut. there are 4,000 houses sold each year for more than 2 million pounds, so 99% of those from the millionaires' tax cuts will be unaffected by the rising and they will gain and massive windfall from the chancellor. the chancellor didn't tell us what this meant in the towns. he thinks the chancellor did say how much each person is getting. he didn't and i am going to tell him how much. there are 14,000 people earning over a million pounds in britain. the chancellor's decision today

means each of them did it tax cut, not 5,000 pounds, not a 10,000 lb, a tax cut of over 40,000 pounds. >> order. it's not good for the opposition >> ed gillibrand? >> not just this year but for every year and mr. deputy speaker what happens to the families who earn half of what the chancellor has given away to the rich in the last hour? families on 20,000 a year. even after the personal change they are not going to be better off. put aside all the other tax rises that have happened from this april alone there will be a further two wondered 53 pounds a

year. all he's doing for the ordinary family is is taking far more away with the other. it's a millionaire budget that squeezes the metal. wrong choices, wrong values, all of the cuts. same old tory. under his tax cut, a banker earning 5 million pounds will get an extra 240,000 pounds a year. let's call it what it is. the government's bankers bonus. estimate triggered authority thousand is necessary to make them work harder. it's one rule for them and another for everyone else because this april the chancellor will be telling a family working for 16 hours on the minimum wage if they don't work more hours they will lose

for the present pounds of tax credits. it tells you everything you need to know about the values of the chancellor and the prime minister so he will only work harder and of the rich will only work harder by making them richer. wrong choices, wrong values, wrong priority, same old tory and what is the priority? the chancellor talks a lot about tax transparency. let's have some. >> it's not good for you. >> if you are going to benefit from the income tax cuts.

>> come on. come on. >> order. >> order. order. all of you. >> i think we need a little bit of silence. i think we understand each other. ed miller band? spec he said it is the best disinfectant just not if you can benefit from it but shake your head if you can. thank you. come on. come on. [laughter] come on. we've got plenty of time. we've got plenty of time. >> order! order! both sides of the house will come to order. the leader of the opposition will be heard in the same way that courtesy was given to the

chancellor. it's only right that the opposition. i don't need any examples. ed millman? >> one more chance. are you going to benefit? >> mr. deputy speaker, i've got one thing to say let sunshine when the day. but i hear it's good news for him, mr. deputy speaker, now she is going to be able to buy his own. >> we will not have any clapping in the chamber. stomach it does no good if the leader of the opposition and i

think it's important to give courtesy now. immelt and? >> mr. deputy speaker what about the deputy prime minister? i do have to say only the liberal democrats can be done to say the budget. this is what you said to us about the tax rates. i do not believe the priority in a time like this is to give tax cuts to a tiny number of people to do much better off than anyone else now reduce the following. the party the delivered the budget of 1909 supporting the billionaires' budget of 2012. they should be ashamed for for