[speaking chinese] >> translator: i'm also concerned whether we could make rapid progress towards shifting the inefficient model of growth. i said it's no good to be poor in a beautiful environment, but nor is it good to be well off but live with the consequences of environmental degradation. we need to develop a new thinking on development, and pursue that the element in a scientific way. first, we shouldn't incur any new problems, and we need to

raise environmental threshold. second, we need to speed up efforts to overcome long-standing problems, which include phasing out backward production facilities. we will face the situation and punish the offenders without mercy, and enforce the law with an iron fist. [speaking chinese] [speaking chinese]

[speaking chinese] >> translator: we shouldn't pursue economic growth at the expense of the environment. such growth will set by the people. it's very important that the extent of pollution, the real food safety situation, and the efforts of our cleanup, results our cleanup efforts must be made public so that the people and media organizations can supervise the government's efforts to more fully and more

effectively. this will also in a way force enterprises and government to firm up our own responsibilities. and help the people to take some precautionary measures. since we breathe the same air, we have to work hard together. everyone should pitch in, and as far as the government is concerned, we will show greater resolve and take actions to reassure the peoples, thank you. [speaking chinese] >> translator: china's

websites, mr. bremer can you talked a lot about the goals and the best of reform. we pay close attention to the reform of the reeducation through labor system. mr. premier, is there a timetable for reforming it? [speaking chinese] >> translator: let me answer your question very precise. the relevant authorities are working intensively on the plan to reform the reeducation through labor system. and the plan might be unveiled before the end of the year. thank you. [speaking chinese]

[speaking chinese] >> translator: i noticed one

detail, mr. premier. in the course of the press conference you have raised your hand over 30 times, which reminds me of the meeting i had with you the 11 years ago. at that time you were working and hunan province entering that many hours impressed by your confidence and wisdom. the question is, in 2011, he visited hong kong and brought along a large gift box from the central government. what new measures will your government take to support hong kong's development? and i, myself, and my family also dissented from that province. i was born in taiwan. i'm working in hong kong. and over the past decade and more i have shuttled frequently between the mainland, taiwan and hong kong. i know that people want to get a full understanding of you as a person. you have worked your way up from

the lowest level of chinese society to the highest echelons of government. can you talk about your personal experience and your personal philosophy? [speaking chinese] >> translator: thank you for the plight reminder that if i raise my hand to freakily, people will focus on my body movement, not what i say. [speaking chinese] >> translator: but you asked a question about the three places. these can raise a lot of emotions within me.

[speaking chinese] [speaking chinese]

[speaking chinese] [speaking chinese] >> translator: in 2011, i made a visit to hong kong here during the trip, announced the central government's policies for supporting hong kong's prosperity and deepening cooperation between the mainland and hong kong. you described these policies as a large gift box. i think that's a pretty good analogy. but to open the gift box and to

take out the solid gift therein, we need to work together, both the mainland and hong kong. actually, some of these policies have already paid off, and the central government will continue to do its best to advance our work. during the trip in 2011, i was deeply impressed by the fact that hong kong was brimming with vitality under one country, two systems. our compatriots in hong kong our hard-working and smart. the hong kong society is open, inclusive, and a vibrant. and there's great space for deepening the cooperation between the mainland and the hong kong. the central government will do its level best to advance those initiatives that will enhance the well being of our compatriots in hong kong. that would deepen the cooperation between the mainland

and the hong kong and the macaw. and that will contribute to the long-term prosperity of hong kong and maccoll. [speaking chinese] [speaking chinese]

[speaking chinese] [speaking chinese] >> translator: you asked about my personal experience and mentioned in your question. i was once a youth.

i won't forget the hard times i have spent with a local presence. it was known for its poverty across the country. it was also the place where the rural household responsibility system reform originated. i still remember in 1977, ma when i was working in the fields i learned of the news that i was enrolled by university. reform and opening night has changed the destiny of our country, and this year, hundreds of millions of peasants out of poverty. it is also changed the course of many individuals, including me. now, they had the responsibility of reform has fallen on the shoulders of our generation. we will do our best to make sure that the dividends of reform will reach everyone in our society. so that the elderly will enjoy

their old age, and the young will be full of hope, and our country will be full of vitality. [speaking chinese] [speaking chinese] >> translator: i don't have time to talk more about my personal experience, but in my

life, through reading, through handling various matters, and through my cultural upbringing, i've learned the following, which is to follow a great way, to put the people first, and to benefit all under heaven. you cannot find these exact words in any classical works. these are things i have learned in my life. i'm convinced that only by being upright in conducting oneself, and only by being fair, in handling affairs, can one benefit, the country and benefit the people. thank you. [speaking chinese] >> translator: i think we are running overtime and we will have just one last question. [speaking chinese] >> translator: i defer to the moderator and the lady.

and i respect everyone of you here. [speaking chinese] >> translator: russian international news agency. you've answered a question about china-u.s. relations, so let me raise one about china russia relations. president xi jinping will soon make a visit to russia. mr. premier, how do you look at china-russia relations and how do you intend to push forward cooperation between the two

countries? [speaking chinese] [speaking chinese]

[speaking chinese] [speaking chinese] >> translator: soon, president xi jinping him make a visit to russia. this in itself shows how important our bilateral relationship is. china and russia are each other's biggest neighbor. i remember when i made a visit

to russia last year myself, the russian leaders were very straightforward with me. they say, our political relations are in very good shape. there is nothing that we don't agree on. so why don't we spend more time talking about enhancing our practical cooperations? and you my contact with local government personnel and people from outside the government, i get the strong sense that they have a strong desire to raise the level of practical cooperation, and leverage economic commonalities between the two sides. i remember during the trip i attended an economic and trade forum. i said that currently the bilateral trade currently at $80 billion, to our joint efforts mad maybe we can more tn double that in the years ahead. and that deliver benefits to both sides. [speaking chinese]

[speaking chinese] [speaking chinese]

>> translator: china and russia will keep advancing our practical cooperation, and communication and coordination on regional and international affairs. this will help to not just consolidate our bilateral relationship, but maintain peace and stability in our region, and the whole world. let me say that china has been working with our neighboring countries to advance mutually beneficial cooperation. and to take such cooperation to a new level by joining our respective strengths so that we can make peace, development and cooperation in asia, and in asia pacific, an irresistible trend. [speaking chinese]

[speaking chinese] [speaking chinese] >> translator: our moderator has says this is going to be last question, and i know many foreign journalists present

today haven't got an opportunity to raise questions. so let me just say a few more words. recently, i've been following very closely news reports about china, including the issues discussed by foreign media organizations. i think there are two main concerns. first, whether the chinese economy will continue to grow sustainably. and secondly, whether a stronger china will become more assertive, and even -- [inaudible] [speaking chinese]

[speaking chinese] >> translator: i think these two concerns are really necessary. china is capable of achieving sustainable and a healthy economic development, in pursuing social progress. and that are more than 1.3 billion people in this country so we are on a long journey towards modernization. for that we would require an international environment of lasting peace.

even if china becomes stronger, we will not seek edge me. because we have learned from our own experience in the modern period that one should not impose on others what he himself does not desire. this is an article of faith for us. [speaking chinese] [speaking chinese]

[speaking chinese] >> translator: let me underscore here that china has an unwavering commitment to peaceful development. we also have an unshakable determination to safeguard our country's sovereignty and territorial integrity. these two are not contradictory to each other. in fact, they are essential to regional stability and world peace. china will shoulder our new international obligations as a large developing country. we are willing to work with the countries of the world to maintain global peace, and

expand global prosperity in the 21st century. thank you. [speaking chinese] [speaking chinese] >> translator: the moderator has again indicated to me that our time is really up to i know many of you came to this hall very early in the day. i know that without the press we would have no news stories to read, so i really appreciate your hard work. i hope you will take care. i'm sure will have future

opportunities to meet with each other. [speaking chinese] >> translator: thank you again. goodbye. >> its estimated 70,000 people have died since the start of protest against president assad in syria. today, house foreign affairs committee examines the student civil war and his from u.s. ambassador to syria, robert ford. live coverage starts at 9:25 a.m. eastern on c-span3. >> the federal open market committee is meeting this week on monetary policy. federal reserve chairman ben bernanke will hold a news conference to talk about the economy and fed policy. you can see it live this afternoon starting at 2:30 p.m. eastern on c-span3. >> we could take pictures of the brain with mri scans or ct scans

and see the whole thing, but there's this enormous gap in between about how the circuits of the brain functions in order to be able to move my hand, or to look at you and process that information, or to lay down a member. we don't know how that works. with technologies yet to be invented, so a lot of this will be technology development and a lot of it will be nanotechnology. what we need to be do is to be able to record hundreds of thousands of brain cells at the same time. and be able to afford to understand how the circuits work. that's the brain activity now that's been talked about. very early days we really don't have a scientific plan yet about milestones and timetables and costs, but it's getting to be a very exciting moment to put something together that we couldn't have thought of. >> more with dr. francis collins sunday night at 8 p.m. on c-span's q&a. >> and now to london for prime

minister's question time live from the bridge house of commons. every wednesday while parma is in session, prime minister david cameron takes questions from members of the house of commons. prior to questions on the house is wrapping up other business. this is live coverage on c-span2. >> and we have created a growing social investment market supported by capital which will enable them to get to the first time access to capital to fund those projects. >> order. questions to the prime minister. mr. philip david. >> mr. prime minister. >> thank you, mr. speaker. mr. speaker, this morning i had meetings with minister colleagues and others and in addition to my duties in this house i shall o have further suh meetings later today. >> does the transfer every with me that today we need a blue-collar conservative project which has taxes are people who work hard, do the right thing

and want to get on? stop spending billions of pounds we don't have on overseas aid where we saw -- helping with their cost of living -- [inaudible] >> first of all, can i thank the honorable frien thing for givine the opportunity to remind people that even before this budget in two weeks time there will be a tax cut for 24 million people in our country? [shouting] as we raise the amount of money you can earn before you pay tax come we will take an over too many people out the tax altogether. we have frozen the council tax. we have canceled fuel duty increase after fuel duty increase, and we are legislating -- and i can also tell him where not going to carry on with a proposal made by the previous energy secretary which was about 179 pounds on everybody's bill. we decided to scrap that.

>> ed miliband. [shouting] >> trento want to ask the primers about the situation in cyprus. can the prime minister update the house what is being done to protect the british nationals including our armed forces who have deposits in cyprus banks? >> the leader of the opposition raises and externally important issue, and a very sensitive and difficult time for the republic of cyprus. first of all on the issue of anyone who is in cyprus because they've been sent there by the british government in the armed forces, m.o.d., or the foreign office, we've guaranteed that they won't anyway lose out in terms of their earnings or their savings. that is the first thing to say. we've also sure that money will be available which is why a plane with the money was sent to cyprus last night. in terms of, in terms of british citizens in cyprus, assumed our many thousands, of course we cannot insure them against any losses in terms of cyprus bank

accounts. but we can do is make sure that they did and they get safely to the pensions and benefits to which they're entitled. we've frozen those payments for the time being until the situation becomes clear, but everyone should know they will get those payments. >> ed miliband. >> mr. speaker, on monday the minister said to the uk government had intelligence about what went on in discussions among the euro zone members who negotiated the plan. can the prime minister tell us what the government knew in advance that what they said about the plan? >> first of all, as we are not in the euro, we do not join the discussions about eurozone bailout. [shouting] i think this is important and it is worth noting that because of the deal i did in brussels getting us out of the bailout fund -- [shouting] we will not be contributing the otherwise up to perhaps a billion pounds that we would be contributing under the previous government's plan. obviously, what we are doing is

now waiting to see the action that the cyprus government and the your group would agree in making sure we do everything to bridged citizens in the years and weeks ahead. >> ed miliband. >> the point of would make is this is a just matter for the eurozone, but our other european economies that goes in the banking system. i think it should've been obvious that everyone had a sudden levy imposed on all would undermine basic trust and confidence in banks. so could he send a clear message that a negotiated bail out that is going to be sides will agree with the government of cyprus needs to rebuild trust and banking system and not undermine it further? >> we've made our views very clear. in our view, when you have a deposit protection scheme as we have in this country, as all of your put in place after the crash of lehman brothers, those deposit protection schemes

should be respected. that is the whole portrai point. that is why they are there for small savings. >> harriett baldwin. >> the civil service union as threatened today to go on strike. but the country does not seem to have grounds to have hope. does the prime minister agree with me that that probably indicates that there is a bit more room to save in terms of public sector setting so we can put labour sector, get this country back on track? spent i think my friend raises an important void. it is important to recognize that we should do everything we can to save and find efficiencies in public spending in order to help hard-working families keep their tax bill do. that is exactly what this government will continue to do. >> thank you, mr. speaker. on january 9, the prime minister told me they would be no hostile to the organizations unless they were in support of the local gp

commissioners, proper public engagements and evidence-based. will now admit that not one of those test is met in the case of hospitals where he proposes to close down half the services and sell off two-thirds of the land the bailout neighboring savings trust? mr. speaker, can anyone trust this prime minister on the mh as ever again? ever again? >> i have to say to the honorable lady that it is worth remembering who set up this bfi deal that has meant for this action had to be taken. the apology over what is happening at the south london health care trust should come from the party opposite for they are responsible for creating this situation. as she knows, 1 million pounds a week is being lost from frontline care. no change is not an option, but under the health secretary's plan, he has made sure that they will retain medical and

emergency cover. >> gordon. spent great man. great men. >> thank you, mr. speaker. today, it is just under 6500. in 2008 it was just under 3500. does my right honorable friend agree with me that the real investors in this economy agree with the governors economic policy -- [inaudible] deliver by the party opposite? >> my honorable friend makes a good point. it is a very difficult and hard road we are traveling to turn this economy around after the huge mess that was made by the party opposite. but when you look at the facts, just this morning we can see an extra 131,000 people in work. we are seeing the changes necessary to start the rebuilding of our economy. >> mr. ed mella van. [shouting] >> mr. speaker, last week in the

foreign secretary said it was a strong case of amending the arms embargo of syria in the months ahead. given that no decision was taken in the eu council, does it remain the primary's intention to seek a relaxation of the eu arms embargo? >> first of all let a us look at what we've achieved and amending the arms embargo when we specifically asked it to be chained to we could give technical support to the opposition. we've achieved that at the french president and i discussed at the european council looking for further changes to the arms embargo that will be discussed by foreign affairs ministers this weekend at and the reason for that is twofold. first of all its and a peculiar message that the arms embargo still applies pretty much equally to this hateful regime and to the opposition who we now recognize as a legitimate representative of the syrian people. and second, the french president is concerned and i'm concerned that we should not be restricted

for months and months ahead when we don't know exactly what could happen in syria, including a good warning reports use of chemical weapons. >> trying to i think the prime minister for that answer. everyone is appalled by the actions of the assad regime. but he will know that there is not only a lack of unity among syrian opposition groups, but there's also the known presence of al qaeda backed organization on the ground in c. does the prime minister understand the widespread concern that remains about the idea of seeking supplies and weapons to rebels? >> i think the leader of the opposite puts the point right. there is widespread concern about the nature of the opposition and the argument i think we have to engage in is this. are we more likely to help the good elements of the opposition by standing back, or are we more likely to help by getting into and shaping and helping and giving this technical assistance so we can play a part in building up the syrian opposition so they are legitimate and credible

alternatives to this hateful regime? it is worth recalling and we should all recall the fact that current policies are not working for the people of syria. 70,000 people are dead, and this hateful regime is still in place. >> he's right that the current situation is a terrible situation. we don't want to make it worse. the u.n. has said, the u.s. secretary joe has said the introduction o of more weapons industry is adequate counterproductive or not will lead to a resolution for special representative brahimi called for renewed diplomatic initiative bring the warring party to negotiating table. can the prime minister set out what steps you a cake government is taking to support the u.n. and advancing this initiative? >> we are taking specific steps to help the u.n. with his initiative and try to achieve a diplomatic solution would transition at the top of the regime is worthwhile pursuing. that is why we have detailed talks with the russian foreign and defense ministers in the

last week. i would just make one of the point about the issue of the arms embargo, because i felt sitting about the european council chamber there was a slight similarity between some of the arguments that were being made about not putting more weapons into syria that seem to be very familiar to the discussions we had about bosnia and the appalling events that followed. and in my view it is better to be engaged working with the syrian opposition trying to bring this conflict to an end. >> anne marie morris. >> thank you, mr. speaker. the numbers on the coastal railway lines are growing fast. given local tourism, can the prime minister assure me urgent investment letter and to repair recent flood damage? >> i can get my auto a friend that assurance and in no the transport sector will be visiting her constituency. investment is going into the hole of the line, including the

major investment shortly to be completed which will help capacity all down the line. >> mr. speaker, the prime minister will be aware of the growing disquiet across the uk regarding his government welfare reform proposal. deep proposals are deeply unfair. and will they lead to chaos or does the prime minister agree with me that in terms of legacy for him, welfare reform will be his -- [inaudible] spent i don't agree at all. i find that there is strong support for the housing benefit cap so we no longer find homes, capital in our country up to 100,000 pounds a year. there is strong support for the welfare cap, and, indeed, very strong support for universal credit which will make sure that in every case people are better off in work and are better off when you choose to work extra hours. that is what we want is a welfare system that supports

enterprise, work, and aspirati aspiration. >> mr. henry bellingham. [shouting] >> is the prime minister a whether some people have died on the road in the last week? furthermore, eight have died on the last 10 weeks. does he share my concern about this tragic loss of life? is he aware of a campaign run for myself and other colleagues more broadly to improve the road? people don't understand the current budgetary restraints, simply a fair share of resources spent well, i'm grateful to my honorable friend for bring me up to date with this important campaign that he and others are meeting in norfolk. we do have a much better record oon road safety to we vetted recent years but we should never be complacent but we should continue to work on that. i know that money has been made available for road schemes in norfolk. of course, i can see from the transfer minister nodding vigorously behind my honorable friend there may be more to,.

>> -- more to come. >> does the prime minister i agree with me that people are suffering under depression and it would be the wrong politics at this time tournament to 50 the top rate of tax? and will be now, with the now canceled next month's tax cut for millionaires? [shouting] spent the point i would make to the honorable lady is after the start of the financial year, the top rate of tax will be higher than in any year when labour was in office. and i'm sure that something he would fully agree with. >> thank you, mr. speaker. today, the 20th anniversary of the wilmington bombing, and the prime minister may recall, or will recall over 20 were killed and injured almost a 12 year-old boy. will he join me in congratulating tim's parents for the way they've worked

tirelessly for piece over the past two decades? in particular, establishment of the foundation for piece which brings help to victims of conflicts around the world. >> i certainly join my honorable friend in praising that family. for the incredible bravery they have shown. when you suffer tragedy like this, it must be so much easier to try to put behind you and forget about it. but to go on and campaign for piece and to bring together the people of oregon adde have it di think shows enormous character and fortitude. they have the backing of the whole country. ..

that makes pretty good sense. just a few weeks back my friend became the first serving prime minister to visit -- as a british seat can i actually say how warmly it was received. congratulate them on the work they have done in searching the european airport. this shows you of a proactive relationship with europe than a reactive one. can i thank my honorable friend for all the work he doesed in the area and the way he consistently raises issues about the british seat community, the immense -- and the respect we should show them. and accompanying me on the gulf and temple. something i will never forget. how much british give to britain

and how much we thank them for. >> thank you, mr. speaker, my constituent found himself homeless at age 17. he was offered social housing and now determined to improve the situation from the education. he will lose fourteen pounds in the tax and three pounds in council tax leaving 11 pounds per week after utility. based on the prime minister's experience of hardship what advice does he have for jordan? >> the point i would make to the honorable lady, first of all, the government is investing in social housing. she'll hear more about that in a moment or two. the second point, when housing benefit costs 23 billion pounds a year, we have to reform it. there's a basic issue of fairness which is why should someone who is living in private rented accommodation not receive

a spare room subsidize when someone in social housing should? there's a basic issue of fairness. that's why it should be put right. >> i might be honorable member for -- i'm very proud of our coalition for sticking to -- [inaudible] >> the honorable lay by's question -- lady's question must be heard. >> we set an example for the world and later on this month the prime minister goes to bali to co-chair the high level panel to discuss the next -- development goals. will he use his -- to prep for some of the gender equality and women empowerment. >> i would very carefully what the honorable lady says about the importance of gender

equality in term of the new goal. the point i would make to anyone who races the -- races the issue, i don't think we should break our promises to the poorest people in the world. when you think about it our key ought to be eradicated the extreme poverty people living on less than $1.25 a day. that's what we're talking about. we should be proud of the fact we're keeping our promises. >> of the money saving on budget day, in line with the education secretary wants to teach us, could the prime minister the chancellor and the cabinet on performance-related pay. how does he think he would save? >> it's this job that has seen the deficit come down by a third since he became chancellor. and private sector jobs. he's cutting the country out of a whole we were left in by the party opposite.

[cheering and applause] [inaudible] >> the prime minister welcome. the country's first local enterprise fund people who care have raised 400,000 pounds to invest in businesses and encouraging enterprise securing employment and in so many others where they lead the rest of the country -- [inaudible] i'm sure my friend is right about that the leadership of all things. he makes an important point, need to see more small businesses start, more enterprise. we need to see more to keep the private sector going. >> alex cunningham. >> rising unemployment remains an issue in my constituency. based on the reemployment and recession which claims hard working families in the most

vulnerable for the obscene tax for millionaires. [cheering and applause] -- looks at the figures today he'll see there are 131,000 more people in work over the last quarter, we have seen 600,000 more people employed compared with a year ago, that is what is actually happening in terms of employment. and i have to say when we look at the mess we were left by the party opposite being given advice on economic and budget day for the party asking is like asking emeril for accounting advice. in less than a time the government will have taken 3,168 of my constituents. -- [inaudible] let it show that the conservative government are on the side of hard working low paid people. >> i think my honorable friend makes an important point.

we have consistently lifted the possible tax allowance. the amount of money you earn before you start paying tax starting around 600,000 pounds and rising all the time. with 2 million people have already been taken out all together and -- may have further news. >> thank you, mr. speaker. does the prime minister agree with the honorable friend that his government should be on a looking after people struggling to pay the mortgages rather than protecting those in 2 million pound houses? >> we should be helping people paying the mortgages. that's why it's vital we -- stick to the lane. we have no interest rate in the country because we have a plan to get the deficit down. that's the key. the other point i would make, if you look for the lending scheme that has successfully reduced mortgage rates and made sure that people who don't have

access to a large deposit able to look at buying a house. we are making progress but there's more to do. >> williamson . >> we had the wonderful news that -- [inaudible] 700 jobs -- last year we saw the creation of 70,000 manufacturing jobs in the u.k. does my friend think that the staff correct can of a 1.7 million manufacturing jobs -- [inaudible] >> they make an important point. it has been a massive success story for our country. i would raise all of those who invested money in the business and those who work in the business and apprenticeships trained in the business. it's hard on recovery of the automatictive sector that has seen a surplus in the number of cars that we export overseas and

as part of a picture where toyota, honda, other auto motics are doing well and we support them. >> of the birth of dr. davey livington marked by a service. he will know one of hiving stoun's proudest moment -- does the prime minister agree with me it's time for the government taingt lead to -- take the lead that understand the two and a half million people in modern day slavely as a result of people trafficking. >> i think the gentleman makes an important point. gives me the opportunity to praise her for her work and what she's doing to lift people out of slavery. thank you for visiting this week.

he makes an important point about slaf i slavery. we need to take action. action at the european level, national level, and on the local level with the police. the government will continue to take that. >> whatever change pay slips of working people will show a tax cut from the personal allowance liberal democrats. [inaudible] what does it say about the priority of this coalition government? >> it's an important priority we have taken on in budget after budget even in difficult times say we are on your side, we want to cut your taxes bills. in two weeks time there are is a tax cut of over 200 pounds for 24 million people in our country. each and every taxpayer at the same time lifting over 2 million people out of tax and don't pay

any income tax at all. it's progress on the side of people who work hard and want to get on. >> what is the prime minister planning to spend his millionaire's tax on? [cheering and applause] >> honorable lady, when the top rate of tax put up, millionaires paid 7 million pounds less. that's incompetent and inefficient sei she left -- to support. >> the question is asked, when the prime minister is giving -- [inaudible] dr. julian lewis. give him the sas nighting gail had the qirks quashed following the quashing of his military prison sentence last year, does the prime minister agree with me that it would be totally against

the public interest and against the sas regimen for him to have to face a fresh trial when others are benefiting from it rightly introduced by the state of defense as a result of the . >> my honorable friend raise answer important point. let me say how strongly i support those of the service. you get a opportunity meet them as prime minister. they are some of the bravest and finest people of the country. i don't want to get any trouble. i'll leave the issues to the gold. >> the government is set aside to help people on the tax -- [inaudible] of the really hard and paralyzed

constituent -- acute housing shortage in europe and they have nowhere to move to. will the prime minister do one more u-turn on the tax and scrap it? >> first of all, let me remind the honorable gentleman, only the labour party can cause a welfare reform on the tax. it shows how little they understand about how tax and benefit actually work. what we are doing is making available a discretionary which is therefore the hard cases but recognizes there's a basic issue of cost about 23 billion spend on housing every year and a basic issue of fairness. not just fairness between the private and social sector but recognizing there are 1.8 million people on housing waiting list who would love to have a bedroom. >> the business act with milton

as the best place in the country to do business. [inaudible conversations] rebuilding our economy. i >> i was aware of the statistic. he helpfully reminded me of it together recently talking about exactly the issue. what a fantastic location for business it is. it is encouraging business start-up and leading to a growth and employment in the region. >> given that the chancellor this morning joined twitter, could the prime minister remind the chancellor and the house what two million tweets make? [laughter] >> i made a number of remarks about twitter over the years. i had to withdrawal because i'm tweeting myself. i look forward to the first

tweet after the budget this afternoon. but what is clear he could tweet even now that we are cutting tacks in two week's time for 24 million working people. taking people out of tax and certainly tweeting that would not cause any discharges for them. -- discharge for him. >> recently the secretary admitted when they were there they got the immigration policy wrong. does the prime minister agree with me that the cost of -- to make a similar admission as far as the economic policy? >> i think my honorable point makes a good point. we inheritedded a shambles when it came to immigration. completely -- we still had. we had apologies or sort of apologies for that. we haven't had any sort of apology for the borrowing, the spending, and the debt for the

mess we were left in by the party opposite. >> mr. speaker, it's estimated for the cost of one nuclear reak reactor seven million household -- [inaudible] eye boggling 14 billion pound price tag and -- and electricity is that something they are -- can prime minister tell us what works? >> i'm afraid i don't agree with the honorable lady. a fleet of nuclear power stations are coming to the end of their life. i think it's important we work hard to replace some of their capacity. that is what it is about. that is why i think my friend was absolutely right to give it the go ahead. i think it's going to be an important provider of carbon free electricity in the years ahead. >> order. [cheering and applause]

>> before i call the -- to remind members of the resolution will be available in the box office at the end of the chancellor's speech. it may be appropriate to remind our members it's the norm not to intervene on the chancellor or the leader of the opposition. i now call the chancellor the right chancellor of exchequer george osbourne. >> mr. speaker, this is a budget of people who aspire to work hard and get answers. it's a budget for people who realize there are no easy answers to problems that will come over many years. just the pain staking work of putting right what went so badly wrong, and together with the british people, we're slowly but

surely fixing our country's economic problems. we have now cut the deficit not by a quarter but by a third. e with we have helped business create not a million new jobs but one in a quarter million new jobs. we have cut interest rates at record lows. but mr. speaker, despite the programs we have made, there is much more to do. today i'm going level with people about the difficult economic circumstances we still face and the hard decisions required to deal with them. it is taking a longer than anyone hopes. we must all -- [inaudible] and by setting free the aspirations of the nation we will get that. our economic combines the monetary activism with fiscal responsibility and supply side

reform. and today we go further on all three components of that plan. monetary fiscal and supply side reform. but we also understand something else more fundamental. our nation is in a global race competing alongside new center of enterprise around the world for investment and jobs that can move anywhere. and what was the response of those who came before us to expand this in a way we couldn't afford? to drive businesses overseas with taxes that became more and more uncompetitive? so let's go -- let a bloated welfare system pick up the human casualty and uncontrol thanking boom pick -- to win in the global race, we are doing the exact opposite.

building a modern reform state that we can afford. bringing businesses to our shores with competitive taxes, fixing the barning, improving our schools, our -- order, order. obviously the country is waiting to hear the chancellor. i'm sure most of the people in the chamber also want to hear the chancellor. let us hear the chancellor. >> for years people have felt that the whole system is tilted against those who work, who save, aspire, these are the very people we must support if britain is to have a prosperous future. it's a budget of those who aspire to own their own home, who aspire to get their first job, or start their own business, a budget for those who want to save for retirement and

provide for their children. it is a budget for aspiration nation. mr. deputy speaker, the forecast for the independent for budget responsibility today reminds us of the economic challenge at home and abroad. but it also --. >> order! order! we need go on. >> the chancellor may not have been the chancellor. he have the courtesy and know better. [cheering and applause] >> >> from the government should know better than to display -- otherwise let us continue. and let us not become a circus of the day. >> mr. deputy speaker, revised again the forecast for global

comic growth as sharply revised in the forecast for the world trade. growth in the u.s. and japan was flat in the last quarter, the jones shrank by.06%. the problems in cypress this week are further evidence that the crisis not over and the situation remains worrying. i can confirm that the prime minister said that the people sent to cypress to serve our country and military or government will be protected in full for any tax. and the obr has a sharp -- that future forecast for the eurozone and expect remain in recession throughout the year. the underlying situation in the eurozone remains very fragile. and i will be straight with the country. another bout of economic reform in the eurozone -- would head 40% of all exported export to

the eurozone. there's a huge anthem across the government to grow britain with a vast growing past of the world and export to brazil, india, and china are up 2,000. you can -- e.u. countries than e u countries. the first time it happened in over two decades. we are exposed to what happens on the continent. indeed last year domestic demand was actuallily stronger than forecasted. it was a weakness of net trade that held account -- the unexpectly poor performance of export is more than sufficient on the own to explain the short fall. gdp for last year is set to be higher than the forecast in december. this year the forecast is reduced to.6% growth. and despite the recession in the

eurozone, the obr central forecast is we avoid a second quarter of negative growth here in the uk. while less than we would like, the growth this year and next year forecasted by the imf to be higher than france and germany. it's a reminder that western nations live in challenging economic times. the only -- recovery pick up to 1.8% in 2014 to.3% in 2015, to.7 in 2016, and 2.8% in 2017. crucially jobs are being created. the worse the unemployment continues to surprise in the upside in the forecast. mr. deputy speaker, when we started the unavoidable task of reducing the size of the public sector work force, some in the house expressed doubt that the private sector would be able to make up the difference. i'm glad to report to the house that the lack of confidence in

british businesses has been misplaced. [cheering and applause] >> it is a tribute to the energy and enterprise the british companies of every one job lost in the public sector in the last year six jobs have been created in the private sector. the employment rates have been growing faster than in the u.s. and three times as fast as in germany. and despite the weak end gdp at the budget the obr -- compared to this time last year they expect 600,000 more jobs in 2013, and there will be 60,000 fewer people claiming unemployment benefits. we see more people in work than ever before including a record number of women, a quarter of million -- and than two years ago and the unemployment rate is lower than when we came to office.

[cheering and applause] mr. deputy speaker, the deficit continues to come down. three years ago, the government was borrowing one pound for every four it spent. it was completely reckless and unsustainable. we have taken many tough decisions to bring that deficit down and we will continue to do so. the deficit has fallen from 11.2% of gdp in 2009-2010 to a forecast of 7.4% this year. it's an eventful further to 6.8 next year. 5.9 percent in 2015, 3.4% the following year reaching 2.12% by 2017,' 18 knees numbers excludes the transfer of the royal pension fund to the government which reduces the deficit further for the year alone. it is sometimes a circus in the

house borrowing has gone up under the government and the facts show as we just -- and the facts show the opposite to be true. the previous government, the previous government borrowed -- [yelling] >> order! order! order! >> we can't have all talk without the year. it's not a competition who can shout loudest. you don't want to boo your own chancellor. i'm sure your constituents would understand if you believe the chamber. let us continue. chancellor exchequer. >> mr. deputy speaker, the facts show the opposite to be true. the previous government borrowed 159 billion. this year the government is forecasted to borrow 114 billion pounds. that's 45 pounds a year less

borrowing. borrowing from 108 billion next year and 97 billion in 2014, and 87 billion in the last year before holding 61 billion and 42 billion in the following two years and ensure complete transparency the odr published the number without the cash transfer. they show on the measure too borrow is forecast to fall. we admitted to a fiscal mandate that would balance the current budget over the following rolling five years, i can confirm that they we're on course to meet our fiscal mandate and meet it one year only. however, the likelihood of meeting the supplementary has deor ituated -- this year 79.2% next year, 82.6% the year after

85.1% 2015, so far falling to 86.8% in 2017, '18. in response there are those who want cut more than we are planning to coand change the -- i said in december i thought with the current weak conditions across europe that would be a mistake. we have got a plan to cut the structure deficit, and our country's credibility comes from the delivering that plan, not altering it with every forecast. that's why interest rates remain so low. our judgment has been since supported by the imf, the bank of england. i propose to change that judgment three months later. mr. deputy speaker, i have representation of the budget for measures that would add 33 billion pounds a year extra to

borrowing on top of the figures i've announced. it's from people to borrow less is to borrow more. they would return us to the double budget deficit of the last government and give us one of the highest deficits in the western world. that would pose a huge risk to the stability of the british economy, threaten a sharp rise in interest rates, and leave the burden of debt to our children and grandchildren. and i will not take that gamble with the future of this country, especially when those representations came from the very same people who have the previous gamble with our economy lead for the mess we're clearing up in the first place. [shouting] >> be deputy speaker, the spending reduction we promise have been more than delivered. welfare reform have been legislative are taking place.

here is a clear sign of progress, the proportion of national income spent by the state has fallen from 47.4% three years ago to 43.6 percent today. and on course to reach 40.5% at the end of the period. we have set out a deficit plan and delivering that plan. and the measures i will announce today are fiscally neutral overall. ask the british people and they will tell you our problem with the country is that we tax too little but that the government spends too much. and i agree them. the tax cuts in this budget aren't borrowed, they are paid for. that is our way and it's the only responsible way. mr. deputy speaker, it's the central plank of our economic plan that a tough and credibility fiscal policy creates the space for active

monetary policy. from recovering to the financial shortcomings to conventional policy. we had to iran elevate and develop new tools. so have other countries. i confirmed today that the asset purchase facility will remain in place for the coming year. we actively considering with the bank of england whether there are potential -- for the lending scheme that will boost lending still further. and we're also setting out the plan for lending from our new business bank. but i want to make sure that an active monetary policy plays a full role in supporting the economy. so i am today sending out an updated for the monetary policy committee. alongside it, we're publishing a review of the monetary policy framework. this budget confirms the privacy of price stability and the inflation target in britain's monetary policy framework. we are re-- reaffirming the inflation target as 2% as

measured by the 12-month increase in the consumer price index. it will apply at all times. but as we have seen over the last five years, low and stable inflation is necessary but sufficient condition. the new rebate explicits targeted with the trade-off it made in deciding how long it will be before inflation returns to target. to ensure a fuller communication between the bank and treasury, i'm changing the timing of the letter system when inflation is above target wlg the governor will write to me on the day the minute the next meeting are published to allow for a more substantiative change of views. the it recognizes that the monastery policy committee may need to use unconventional monetary instrument to support the economy while keeping inflation clear. it may wish to -- including

using intermediate threshold in order influence expectations on the future path of interest rates. for example, that is what the u.s. federal reserve has now done making a commitment to keep interest rates low while unemployment is high. provided inflation is not expected to rise too much. this can help the economy because it gives families planning their futures and businesses wondering whether to invest more confidence than interest rates will stay lower for longer. so i'm asking the monetary policy committee to provide an assessment of how intermediate threshold might work in britain and give the assessment. the 2013 report. it will be the first issued under the governorship of -- while interimmediate thresholds are used -- seen the new and

both agreed to it. mr. deputy speaker, active monetary policy can only operate freely when securely anchor by credible fiscal policy. that's the next component of our economic plan. we have substituted new public spending controls in government when money is short, we make no excuses for the rigorous financial management we have run. let me be clear with the house this is one of the reasons why we have got forecast borrowing falling in this year and next. the traditional splurge of cash by the department at the end of the financial year just to get the money spent has to be curtailed. and thanks to the tough financial control of my friend the chief secretary, government is forecast to underspend the budget by more than 11 billion pounds this year. if you want to bring borrowing down, you have to control spending is what we have done.

the budget more closely aligned to what they actually spend. both next year and the year after we will reduce departmental expenditure limit to the equivalent to a 1% reduction. the school and health blujt remain protected because our promise to is a promise we will keep. [cheering and applause] local government and police allegations for 2013, 2014 already set out and not be affected. we will also deliver in this coming year on this nation's long standing commitment to the world's forest to spend 0.7% on the national income on international -- and we should all take pride as i do in the historic achievement for our country. [cheering and applause] as previously, the budget will be adjusted to ensure we have spend more than 0.7%. mr. deputy speaker, departmental

budget in 2015, 2016 which starts before the end. it on the 26th of june. i said last autumn we would require around 10 billion pounds of saving from the spending round. i we will be seeking 11.5 million pounds of current saves. we have to make difficult decisions so britain can live within the means. woe make those decisions question get our deficit down and focus on the economic priority. will be set at 745 billion pounds. how the savings achieved is a massive with spending round but existing protections apply. we're also taking steps to help all departments achieve the savings required. together my honorable friends the chief secretary and the minister identified 5 billion pounds of e fresh sei and savings and cutting the cost of

administration can be made. this will gain a huge way toward delivering the spending round in a way that saves money but protects services. so to too will action on pay. the government will extend thirty years by limiting increases to an average of 1% in 2015, it will apply to the service civil and work forces with pay review bodies. local government and the administration budgets adjusted according dpli in the spending round. we will also seek substantial savings for what is called profession pay. the and yule increases in the -- i think they are difficult to justify with others in public sector and millions more in the private sector have seen pay frozen or even cut. i know, that's tough. it's fair. and in difficult times for the inevidentble trade-off between paying people more and saving

jobs, we should put josh -- put jobs first. [inaudible] also the tenth anniversary of the start of the iraq war. and the -- james ash worth this week reminds us of the courage and sacrifice that all serving in the armed forces are still making to defend our country. so we will exempt our military from changes to progression pay. and we are also accepting in full from the first of may this year, the armed forces pay review bodies recommended

increase in the so-called "x factor" payment made to military personnel to realize the particular sacrifices they make. can announce further awards have gone to military courses with money for combat stress to help veterans with mental health issues and chai's boxes for -- christmas boxes for this year and next. those who paid fines in the financial sector because they demonstrated the worse of values are paying to support those in our armed forces who demonstrate the best. mr. deputy speaker, ultimately the country will not be able to spend more on the services we value from the nhs to the armed forces or invest in the infrastructure unless we go on tackling the growth of spending of well tear budget. the public spending framework provided government -- six departmental budget and annually

managed expenditure. it was annually unmanaged expenditure. it includes almost the tire welfare budget as debt interest and payments to the european union. i can tell the house according to the forecast today, the european budget deal secured by my right prime minister has a total of 3.5 being pounds. we are introducing a new limit on a significant proportion of annually managed expenditure. it will be set out in a way that allowing the automatic to operate but bring real control of the public spending out of control. we will set out more detail on this works in the new tsh new spending limit works as a spending round in june. all decisions on welfare pay and departments are tough and they affect many people. but if we didn't take them, what is a typical situation to them

and the whole country would be worse. ability imonetary policies and fiscal spronlt two component of the economic plan. we need to supply side reform to throw the full weight of our effort behind the entrepreneur yam forces in our society. our fundamental overhaul of the plan laws and hoping homes to be built and businesses expand. our reform to school, university, and apprenticeship is probably the single most long-term economic policy we are pursuing. support for european free trade agreement with india, japan, and the u.s. is a priority tiff our policy. and building the tax system. we need to do more. first, we can provide the economy with the infrastructure it needs. we're already supporting the largest program of the investment since victd began times and spending more time on new roads than in a generation. we are giving britain the

fastest broadband in europe and the treasury now righting guarantee to major project from supporting the regeneration of the old station sites to building new of tomorrow. we have switched billions of pounds from current to capital spending since the spending review to mitigate the sharp decline set in motion by the last government. but on existing plans capital spending is too small in 2015, i don't think that is sensible. by using our extra savings from government departments we will boost the infrastructure plannings by 3 billion pounds a year from 2015-16. 15 billion in extra capital spending over the next decade. by investing in the economic of the country we will get growth flowing to every part of it. and mr. deputy speaker, public

investment will be higher on average as a percentage of the national income under our plans than it was in the whole period of the last labor labor government. >> we will set out long-term spending plans for the long-term capital budget and use the expertise of the man who lead the olympics and serve in treasury to deliver big project that make great use of independent advice. the second thing we can do to support enterprise to give our cities more control of the over the economic destiny and back those that are global success. businesses that created more jobs in the first three years of the government than the first ten years of the labor movement. private sector employment has been growing more quickly than across the whole country.