organized by the deputy prime minister. he and i met at the supermarket which was raised to the ground from the violence on august 8. she is still waiting for compensation. does she agree with me that eight months on is just not right. and does she further agree with me that it's up to the government to make sure she gets the compensation she deserves? >> i'll look into that specific case. one of the reasons why introduced funds alongside the riots act was to get that money out to local authorities faster. where we have got to with the riot damages act. and also i'll look at the individual case that he mentions. >> mr. speaker, about people who haven't been helped by that money that was provided to local authorities and can't get help. three things need to happen to make good on this, first of all

there needs to be proper information on the payments made by the right damages act, under the urgency. there is one report, they say there is information, there is information from the metropolitan police, b reality is that the information available is very patchy about what is happening around the country. so first thing we need proper information. second i ask him to ask a member of the home office to make sure these claims are paid and thirdly can he come back to the house with a clear indication of a 100% of legitimate claims will be properly settled. it was a shock also with the number of flats above it. but i suggest eight months is too long and the honorable member in the home office used the policing ministry taking a

lead on this, but i have also held follow-up meetings to make sure the money is paid out. >> thank you mr. speaker. the prime minister may be aware that this is a charity that provides support to veteran servicemen. in order to raise awareness of this name change, will the prime minister join me in in order to see it firsthand the wonderful work they do in supporting our veterans? >> i always enjoy my visits, perhaps i will be able to -- they assist former service personnel who tragically lost their sight, i think he pays them a great complement, does his duty by changing the names. as a country and as a government, we have a huge debt to pay to former service personnel. they have done extraordinary things on behalf of their country and we need to look after them through their life,

am i right? >> the prime minister said last year that his government would fall year on year. in my constituency, there's 55.4 people in every job vacancy. the recent job has supported only four businesses. why should the 550 workers -- and that many others lose their job on the specific case, i know how important that is and we're working with the company to do what we can to help get those people to work. though i understand toe are still in negotiations with

the potential purchaser of that plan. what i would say to him about employment and up employment is clearly about we need more jobs in the economy. but since the election, we have had about 6 hung new jobs in the private sector. the level of employment is up by around $250,000 and there are fewer people on out of work benefits now than there were at the time of the election and in terms of what's happening in the northeast, we should also celebrate the good news, the fact that this hanged is -- the fact that hitachi is expanding, we should be talking up the northeast instead of talking it down. >> allan reid. thank you, mr. speaker. coast guard talk that was recently withdrawn from service. all the prime minister please

look into this as a matter of urgency before a worse incident happens? >> prime minister, i know this issue is being looked into at the moment, so i'm very happy to write to the honorable gentleman and give him the details. i know he represents island communities that can be extremely cut off particularly during the winter months and he needs to know that those services are there. >> question number seven, closed question, mr. graham allen. >> question 7 mr. speaker. >> prime minister. >> well, first of all, let me pay tribute to the work the honorable gentleman does in this area. urban development is absolutely essential to what this government is going to improve. it will base funding decisions on what comes out of the first three years, but as he will know, the early intervention grant is going to rise next year.

>> i have to thank the prime minister and the leaders of all parties for that continuing support for early intervention, early intervention not only helps babies, young children the social and emotional capability to make the best of themselves, it saves the country billions of pounds in the long run. would he as the chancellor, take this as the first representation, not for today's budget, but for next year's budget. would he consider theming next year's budget around early intervention, bringing forward proposals for tax changes to stimulate the social finance market that we heard about in earlier questions and move 1% only of departmental budgets from late intervention to early intervention. >> i praise him for the work he has done. as we're going to be setting up

the early intervention foundation that is going to be i have certainly discussed this with my friend the chancellor, what we're trying to do is look at all the mechanical anymores we have, make sugar the early intervention grant is going up, or trying to change people's life chances before it's too late. >> thank you, mr. speaker, is the prime minister aware that the holland has the highest growth in the whole of the united kingdom. thanks to a concerted counsel that is open for business and a concerted led government that is invested in an enterprise only. will the prime minister come to harlan so we can show britain how to lead the economic recovery. >> in danger of being accused of -- i know he speaks up for

his county, and i would congratulate harlow on the fantastic achievement they have. the government wants to play its part. >> thank you mr. speaker. in hindsight, over 7,000 hard working families depend on working tax credits, yet less than 200 people have to pay tax. which of these groups does then most support in the chancellor's budget? >> what i can tell you, negligegentle lady that we have replaced the tax break that will go up another 130 pounds this year. and in terms of the very richest in our country, let me assure her, after the budget, they'll be paying for many tax.

>> as well as the liberal democrat priority to lift the tax priority to 10,000 pounds -- >> order! >> mr. hughes must be heard. simon hughes. does the prime minister agree that one of the best ways of helping families on low and medium income to build more affordable housing. and give labor relations in longed, 350,000 families on the waiting list, can you assure us that there will be more country >> we do want to get our housing market started again, including affordable housing, and that's why the higher right to buy the discounts. at the same time, we're doing more to kick start those -- can't get under way because of problems withfina be and that's putting extra money into those schemes to make sure that

building takes place this year or next year. >> john mcdonald. >> part of the -- must come, could have only come from the police force security services. when 3,000 mostly celebrities had their telephones hacked. the government -- the whole section went 3, -- many of them have lost their livelihoods. the factory simply suggested they go to the ippc. why is there one group for justice to celebrities and another for working people. >> there is one that has to cover everybody in this land and if there is any accusations of wrong do police who are completely independent of government can investigate and that is what should happen.to t say that on his behalf, but he could do something on everyone else's behalf.

he runs the right to work campaign that is stopping young people from getting work experien experience. >> thank you, mr. speaker. my country has below average household income as for a long time been some of the lowest in the country. does my right honorable friend share my view that this is unfair and whether he personally support measures to change the funding and to get a deal for my county and for similarly fe we're also introducing the pupil premium where parts of the country like his where there

are -- for those children who are on free school meals and that should help the funding of those that need the money the most. >> i'm trying to do the honorable thing, including the action that's needed to mitigate the risks that this still caposes. >> on both occasions, there was a significant majority of the government had many, many opportunities to public risk registers and they didn't do it. >> i always appreciate the prime minister's gratitu sure. >> thank you mr. speaker, for ten years or more, the leading skeftd like the noble lord have argued for working people and

pensioners on low incomes to be taken out of income tax all together. does my right honorable friend agree that this is a thoroughly er whose time has well and truly arrived. what i would say to my honorable friend is, almost uniquely, i'm not going to prejudge what is in the chancellor's budget. but i these we can say, in reference to what we say, this is a kaleidoscope budget. >> i'm so encouraged that the prime minister is using my language.

>> thank you mr. speaker, the prime minister may recall that at the time of the strategic defense and security review, he described it as a mistake and an error to take over the vertical landing of the joint strike fighter. as the ministry of defense is about to perform a u turn on that original decision, doesn't he now accept and understand the real mistake and error has been a defense review that's been inadequate and is fast unraveling. >> the real mistake in error is eand to pay tribute to my friend, what he wants as defense secretary is to be the first defense secretary in a generation, frankly to announce a balanced and funded budget for defense for this year and for many years to come. that is what we're discussing, we will look at all of the evidence, all of the costings and costings as he will know change in defense. but i do make this pledge,

unlike previous governments, if costs change and facts change, we wochbtd just plow on regardless and make wrong decisions for political reasons. >> order. >> the right honorable george oswald. >> mr. deputy speaker, this budget rewards work. this budget is going to earn it's way in the -- this budget supports working families and helps those looking for work. it unashamedly backs business and it is on the side of apicture ration, those who want to do better for themselves and for their families. this budget reaffirms our unwavering commitment to deal with britain's record debts. but because we have already taken difficult decisions, this can also be a reforming budget

that seeks to repair the disastrous model of economic growth that created those debts. a model that saw manufacturing almost half as a share of our national economy while the national debt doubled. mr. deputy speaker, this is how britain will earn its way in the world. with far reaching tax reform. with a simpler tax system. where ordinary taxpayers understand what they're being asked to pay, with a fax system that is more competitive for business than any other major economy in the world. a tax system where millions of the lowest paid are lifted out of tax all together. while the tax revenues we get from the wealthiest increase. but reforming tax is only part of the story. we will earn our way in the world by saying to all business, large and small, we will provide you with a modern

infrastructure, new growth friendly planning roles and employment laws, the kinds that schools and universities and colleges our future workforce needs and in return, you british business have the self-confidence to invest, expa expand, hire and innovate and be the best. if we stop being afraid to identify britain's strength and backing them instead. a deliberate strategy to create a more balanced national economy where financial services are strong, but they're not the only spring to our boat. mr. deputy speaker, reminds us today of the risks to stability. despite the wealth to action by the european central bank, the impact on the sovereign debt crisis on the european economy

has been significant. italy, the netherlands, belgium and others are now in recession. in today's report, the obr are sharply dividing down their forecast for euro area growth this year by .8% to minus .3%. their forecast for world economic growth is also revised down over the next two years, b. of course kbrin is not immune from these developments in our largest export markets. and the obr say today that the situation in the euro area remains a major risk to our forecast. another risk they identify is a further risk in oil prices and there is no doubt that the high oil price driven by real demand and the iranian situation is of great concern across the world.

it means that the overall assessment and outlook and risks to the british economy is broadly unchanged since last november's report. despite these head winds, there are however more -- avoid a technical reception with positive growth in the first quarter of this year. they say the british economy has in their words carried a little more than previously anticipated. then they forecast 2% next year, 2.7%. >> order, order. we have to give a chance to -- chancellor.

>> they then forecast 2% next year, 2.7% in 2014, and3% in bo 2015 and 2016. the forecasted unemployment rate is the same as last autumn. they expect it to peak before falling each year to 6.3% by the end of the forecast period. they have revised down their estimates of the count which they now expect to be around 100,000 lower in the next four years than they previously forecast. peaking at 1 pngt 67 this year rather than the 1.8 million they forecast in november. and they forecast one million more jobs in the economy over five years. inflation is expected to fall throughout the period. from 2.8% this year, to 1.9% next year, and 2% by the end of the forecast period. i am today writing to the gov

nefrt bank of england to reaffirm the cpi inflation target of 2%. the government's credible and responsible fiscal policy allows the independent central bank to pursue an activist monetary policy consistent with targeting low insflags. i confirm the asset purchase responsibility will remain in place for the coming year. so unememployment is growing, inflation is coming down, so too is the deficit. when this government came to office, the budget deficit stood at over 11%. the state was borrowing one in four of every single pound that it spent. today i can report that the deficit is falling and forecast to reach 7.6% next year. the share of national income will fall to 43% next year. we must stick to the course so there will be no giveaways

today. because we've taken difficult decisions nor do we need to tighten further, over the five-year period, this is a fiscally neutral budget, and this is achieved through a modest reduction in taxation and spending. so mr. speaker, let me turn to those fiscal forecasts. the whole house will be pleased to know that these have improved a little from the forecasts i presented in november. borrowing this year to come in at 126 billion pounds, 1 billion poundses i forecast in the autumn and 30 billion the year before we came to office. we will then fall to 120 billion next year if you exclude the transfer of royal mail pension assets. it will then fall to 98 billion in 2013 and 14. and 75 billion then 52 billion, reaching 21 billion by 2016, '17. in total, borrowing is 11

billion pounds less than in the autumn. this will be used to pay down debt. in my first budget i sent the government the fiscal mandate of achieving a sick lickly adjusted current balance by the end of the five-year horizon, we are on course to achieve that man date and have eliminated the structural current deficit by 2016, 17. they also confirm that we are on course to reach our target, the debt to be falling as a percentage of national income by the end of the parliament in 2015, 16. public seconder net debt is set to peak at 23% almost 2% lower than previously forecast before falling the following year. a balanced structural budget and falling debt are deficit reduction plan is on course. and mr. deficit speaker we will not waiver from it.

to do so would risk a southern loss of confidence and we will not risk that. insaid we reinforce today our commitment to fiscal responsibility. not just this year, but in the years ahead. the transfer of the 28 billion pounds assets from the royal mail pension funds will free it from its crippling pension debts, ensure the pensions of hardworking staff are paid and help to bring in new private sector investment. and some would have been tempted to spend the windfall, i do not propose to spend it. instead i've used it to pay off debt. we will also maintain our control on welfare spending. the passing of the welfare reform act two weeks ago, was an historic moment, and i pay tribute to the work of the pension secretary. and to all my coalition colleagues for supporting him against determined opposition

from those who defend unlimited welfare. but even with the act, the welfare budget is set to rise to consume one third of all public spending. if nothing is done to curb welfare bills further, the full weight of the spending restraint will fall on departmental budgets. the next spending review will have to confront this. i am publishing analysis that shows if in the next achieve departmental spending as in this review, we would need to make savings in welfare of 20 billion pounds by 2016. we will address the rising costs of an aging population. and the burden this places on future generations. we will be publishing a white paper on social care. i've also said we would consider proposals to manage future increases in the state pension age, beyond the increases already announced. i can confirm today there will be an automatic review of the

state pension age to make sure it keeps pace with longevity. details of how this will operate will be published this summer. one area where government spending is expected to be lower than planned is as the prime minister just indicated, afghanistan. we were reminded again yesterday of the sacrifice so many of our servicemen and women have made. and as the prime minister made clear with the u.s. president last week, uk forces will cease combat operation by the end of 2014. as a consequence, i can tell the house that the cost of operations which are funded by the government's special reserve, and entirely separate from the defense budget are expected to be a total of 2.4 billion pounds planned. let me be clear today, the full cost of operations will continue

to be met from the reserve and our braved armed forces will get the equipment they need to complete the job. but i can ensure the sum of the benefit of the lower cost is felt by those who fight so hard and give so much for our nation's security. we will fund an extra 100 million pounds of improvements in the accommodation of our armed forces. i will also double the families welfare grant which is used to bribe additional support to families left behind, we've already doubled the operational allowance. today i am doubling the rate of counsel tax relief. the thousands serving our country and operations overseas will receive 100% relief on an average council tax bill. mr. deputy speaker, our commitment to reduce the deficit is keeping interest rates low. in this budget we take measures to ensure that the benefits of those low market interest rates

are 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 tote afl 36 billion pounds in debt interest pavements compared to its predecessor. this year is the 400th anniversary of the creation of the treasury board and modern treasury. there have been times recently where the treasury has been borrowing mo 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 it's way. i want to test whether we can extend these benefits further into the future. at present the longest guild we currently offer into the market is 50 years, the debt management office will consult on the case for issuing guilds for

maturities longer than 50 years, and the case for a perpetual guild, something britain last failed to do six decades ago. we're taking the opportunity to rebuild britain's reserves, which had fallen to historically low legals. i can confirm mr. speaker, our gold holdings have risen in value to 11 billion pounds. sadly this does not include the 400 or so tons of gold sold a decade ago for 2 billion pounds, which would now be worth six times that at over 13 billion pounds. mr. deputy speaker, working families are already being held by historic low mortgage rates. the new scheme we introduced last week, us