of the nation that's what the purpose of a government's budget is and therefore it is the only grace show up so to speak it alone has access to money and it can print so in that sense the government isn't a tool like a grocer's shop a grocery shop your shop has to go to a bank if it gets into debt it borrows from bank it has to repay government to have to repay government can borrow without limits technically it can simply print the money it wants to spend now that is a fact whether it wise to do so when you want to stop it by law from doing those kinds of things that's a different matter but it can do it and if it wants to spend 300000000000 in supporting the economy during the cove it it will spend 300000000000 and it will tell the bank of england to provide the money which is in fact what the bank of england's been doing it's been financing the whole of the kovac $19.00 pandemic

follow expenditure you say the standard view when does it come from i mean you can. assure us all at the back of england will go all the city police city of london police and arrest the chancellor of the exchequer v. doesn't balance the books no he won't do that the governor of the bank can go to the chancellor and say look you've given me an inflation target. i've got to make sure that inflation doesn't rise above 2 percent that's or the bank of england governor says now i think he says to the chancellor you're spending too much money and therefore risking that inflation is going to go off 2 percent now you've given me the mandate to keep it to 2 percent therefore if you go on spending money at the rate your doing i will shut up interest rates and i will shove them up to any

extent necessary any extent necessary to meet my inflation target and that means the money you borrow will the cost of the money you borrow chancellor will go up and up and up and in the end un be able to afford it any longer and much of this which of course he will do despite him being an independent governor underbelly is this corruption between the so-called independence of the governor of the bank of england chancellor issues and some people would call it could usually between back there and the treasury but the banks and others to call it coordination and cooperation and and and therefore not not challenging the independence of the bank what the bank would say zoners the government spending doesn't push us up against our inflation target we are prepared to go on financing it without a loss of independence it's only if the government spending threatens to push

prices a bond the banks to get that the bank will then say stop. we do not want you to go on now whether the government pays any attention so that in the last resort any sovereign government can tell a bank to do what you want in the last resort and therefore to gotch extent there's never bank independence even the european central bank in the end it's the most independent central bank there is if the council of ministers spawn the set which sped up with what you're doing you've got to do this rather than that there's no way an unelected banker can you know tell the politicians go to hell well you know show him christine legarde the former i.m.f. was knowing running the european central bank do you think the reason i used the

word corruption is the word collusion is that the accusations are levelled the chancellor is he's a neck about corruption whether it be known domiciles status he denies all wrongdoing of course why do you think he he well small businesses say attacked businesses the head of the c.b.i. saying that hacking as a whole business is that right rises in business tax and left amazon facebook the massive beneficiaries of the current a virus pandemic relatively untouched as regards tax well i think they haven't decided on a policy proper policy towards the big that forms and they don't have a policy this is not to be international. i mean these are global these are global things you can't just do you do small businesses they're your own they're your own concern you can do what you like with them as an economic historian what's it like looking as you find out that say the 20 pounds extra on universal

credit for the poorest and the 20 percent of the british population is living in poverty that that 20 pounds over come the autumn and yet those companies. we have to give them time to for an international consensus about taxation for the richest companies on a well that's that's the reality of it i mean politics is the art of the possible isn't it it doesn't macchiavelli who said that just macchiavelli who said that but everyone said it never once known it you can it's much easier to tax small people than to tax large people have got to have more political will more more cooperation to do it i'm not saying you should but it's just a bigger bigger bigger job and of course it's right people on universal credit should get more we did a report on that in parliament and it was intolerable were an awful lot they were doing to claimants but now they've only they have now only done the many raised it temporally. the upper limit and they should make it permanent. so

yes i'm not i'm not i'm always you know the government says giving the government says it's giving in other ways it is giving to this 20 percent of the population. that are under the poverty line. what do you think also that there is 00 pounds budgeted for the effect of the pandemic come the next fiscal year well this is a very very serious point you say. is going to go on until until september he's an hour and that says going to extra $60000000000.00 but what they're expecting is that the further money will tail off as the economy recovers so as the and the for cost is that we'll be back to where we were before i'm a by by by the middle of next year why do they think the economy's going to recover

so quickly because they think there's a lot of pent up demand that there's a lot of savings that people haven't been able to spend and then as the shops and entertainment places reopen people will flock to these places with the extra spending power and that'll make the whole thing revived but if you look at it realistically i'm very skeptical about this because national income has full it's fallen by 10 percent cent in 2020 that means savings of their own you know some people will have extra savings but what about all those whose incomes half full they're not going to have extra spending power that's an interesting way of looking at it obviously is not the way the former goldman sachs banker is she sort of looks at it i mean i have to ask the biographer of keynes what do you think john maynard keynes would have thought of the british government instituting

a thought of soviet system of firm or effectively i mean presume he knew the cambridge spies but do you think he would be amused or do you think you mean a back door do you think he would have been surprised by a response which involved the soviet ties ation of the country in the sense of for . well you know there are many ways he would have or he would have wanted the economy supported while there was this big doubt sure but how you support it whether you supported by giving people. a paid holiday or an indefinite amount of time and just paying their wages well you do it that way whether you try and give them work you see what we've forgotten about as the old concept of public works i mean in some space for hand when when the government spent money to spend money on keeping people in work and if they were being made on employed by their companies the government did work now and i'm in favor of a work work guarantee for people especially for young people and as we come out of

code i would have much preferred instead of the firm no money going on and on and on until september that some of it attendee rate was given to local authorities and and with that with the with the mandates spend it on what you need doing in your area and one of the world leading arms exporter this and there's an arms credit guarantee fund aren't public works can keynesian militaristic public works. obviously manifest in the war on you have been selling weapons to saudi arabia the building of weapons the trident obviously a multi-billion pound expansion there do you think that's the way the government are seeing your keynesian public work expansion now i don't think so because i think that's normal we're talking about people who are being made on employed

because small businesses are closing going bankrupt and or cutting down on their staff and rather than keeping that population on 1st. i would try and provide work for them and especially young people it's 80. you know it's it's not just the headline on employee that we'll to be worrying about lots and lots of people on short time work part time work there's 20101520 percent of the population which is really only very low precarious income people again the government might come back at you and say well in this week's budget there was plenty of talk all 3 ports and the idea of us being i don't know like. caribbean tax haven in the north sea. you don't think that could be one post bricks

a future that would benefit the people you're talking about well i think i think there's a good a very very very promising the i dare sleep or i mean it's good. to unites not going to it's open to do anything for us in the next year it goes back to the enterprise zones that was started in in the thatcher periods in over 5 years of cool shoots a very very good at i'd add i'd add in the report that have hong kong hong kong abroad just for people in the u.k. because lots of people are leaving leaving wanting to leave hong kong because of the new regulations and the oppressive regulations give them a give the most reports in the u.k. so i think the whole idea is good but it's not going to solve the problem of the collapse of an economy of 10 percent that's happened this year and he's not going to guarantee any rapid recovery nets 2 year olds could else be thank you after the break more on a budget in a country with some of the poorest financial and medical coronavirus records in the

world. by the 21st century americans exhausted it's just tired and it doesn't have anything approaching more. but china after being on the margins for so long does have something to prove and they do have the capacity and they are putting shoulder to the wheel and they are working. and say that i've given. them. a lot of the. right. type of his opinion. in the next. moment on.

the few good. little. animals on those on the. welcome back to his u.k. budget special let's go straight to oxford to speak to oxford university as well from akin to professor danny dorling his latest book is slow down the end of the great acceleration. thanks so much for coming back on the show you've written a book of the book about wealth disparity who has money who doesn't receive sooner what did you make of his budget you think he deliberately wants to punish the poor or he doesn't understand your work or he sees a different world to yours. i'd be amazed if which he seemed that could ever come across my work i doubt it's recommended to him some his officials tell him that what he's doing is reducing inequality and it's possible that he may not realize they're not telling him the truth if last year when he did the budget last year

they produced a report saying oh look at the reduction we've done in income inequality but to the polls they met fencepost said there's been an increase so the government mislead itself chanceless the exchequer repeatedly in the conservative party mislaid themselves that somehow and using the gap they're not and certainly this budget they have that the i.f.'s of come out their strongest ever criticism of any budget is this budget over what it does even the baby say. it was very doubtful about any kinds been made this budget would in some way help poor people new case a man in the b.b.c. haven't heard of that there were some talk about an 800000000000 mist in the treasury recently i mean this is a civil service a servant or advisors who might be misinforming the chancellor if we are going to forgive him for threatening the removal of universal credit increases of 20 pounds in the autumn i think in in the treasury over time chanceless of become surrounded

by a particular set of civil servants with particular set of beliefs ones that fit the conservative party so for instance a lot of money has been spent on the budget trying to prop up house prices again a new kind of help to buy the kind of prices are as possible and the certainty of belief in the treasury that the higher house prices are the better business doing so you can see they have money to spend when they want to spend it they can reduce taxes on stamp duty again to try to keep house prices are like these are deliberate choices over their priorities but they can't keep 20 pounds a week extra universal credit after september. you know the civil servants all say and the cabinet secretary would say they are completely impartial they've always been impartial and forget the idea of continually encouraging the housing market and the freezing of fuel duty that environmentalist on about

3000000000 on the n.h.s. is still going to go on the long term plan and the chancellor on said criticism about fraser on n.h.s. spending would saying 40 hospitals 50000 nurses 20000 police i'm not sure that's to replace the nearly 1000 people revolt it's also lay out the election campaign 9 day not wieber i think i've been hearing about these 40 hospitals where over 2 years now and of course they will be a bit. we don't know how big that they have a very small but 40 of all that's all it doesn't get you are all service we're spending let's spread or jerry's for your schools is the sound that always johnson used in this election let me even come up with in the soundbite letter likes to go to get it. and just very briefly on coronavirus i know you've written about the geographical spread of it and an enormous relatively low number

obviously britain is the worst in europe in london as compared to areas of the countryside do you think that will continue. well hopefully we have on the state of downward slope. and hopefully this is towards the end of pandemic but it's not just the worst in europe. we are near the top of the worst in the world. 18 that for every 10000 people who were alive at the start of 2020 the death toll from the pandemic is now around the same level as the death toll from austerity in the years before the preventive which which i p p r said was 131000 people so we've had by far the worst pandemic outcome in europe and that's despite having had seen so many frail elderly people die before the pandemic began president going thank you will the morris

don't think government budget here in the u.k. will arguably be seen through the lens of our only darkened media joins me now from london is under paris consultant editor of one of britain's and the world's most clicked media organizations the daily mail and jury thanks for coming back on going underground his lockdown special budget edition what did you may give people an universal credit they'll lose their 20 quid or term and i don't know if you have shares in facebook or amazon the great news is. alleged tax dodgers. well there are less hassle you just e-mail us at the views and i was a disappointment this chancery she said you know that who is who had to say oh you are probably even more difficult to crash easy 1008 because when i tell you that i mean injuring us all to tell you blair about. to seize even more complicated for a prime minister do you know if the 2nd law who all serial are all syria who are the enemy is not security rishi will you not see that i'm the prime minister who is

a coalition government united causes united this is different because the daily enemy is heavy surf grazing lands at length he resists the all the sensations of the last axes straightaway so personal our. mission next year after that sensor see 3 friends be hunky corporations that horrified it yes on the one hand if they have to race as hats. on the corporations crawfish rather than wacky on the a.b.c. wacky old people's even sas war v.a.c. is no mean corporation to have profit through haven't corporations businesses who have profits above 50000 pounds a year the message is a person is an ass it's up 250000 r.c.s. if you're below that you'll be ok but it will raise sensi 1000000 pounds at this

task for one measure i can recall in a very long time i have a hunch you know i see this each year e up through sheer letter she says the $23.00 which is low bad news is curse of uncivil head and ness you are expecting gross unprecedented seminar that is dramatic now you saw a dramatic arc to the. story it's actually called only all code was. or worse. 300 years so dramatically increase growth next year ok jobs back. then groups are selling 7073 and laura sessions if you still believe her he says i'm the man and i'm the man when of course even the speaker allows a commons said. here's your budget speech written a book most of it i mean in the press earlier how do you think martha jones is

viewing the p.r. spin coming from number 11 downing street he credit is due soon assholes he work no there is a chance of massive so much colonies in such a bad place that the ends are not all truth. that means such a lawsuit disagreeable and if he needs shots it's easier just to be successful lauriski onsen yes if he wins a lesser action he prices leave the next election good to see inside he the word out badly isn't got the money and he wants to get out into the crowd he says it will become all pseudo very quickly. johnson even johnson's leg cruelty that he think johnson may not her alone. yes i see you don't see that question in this. post that uneasy and says he's innocent mary cary much remarkably about how much power she poses people say since there's no use

our theories about us. really. isn't that assay has been again soon or that he's on his economic policy to get racing corporations ass governments he's hiring who knows. seems excessive. areas of the year you will now need the 40 percent people signed jack what he says here and hear me there he said remain as you know i've been very quiet about that in the european union has and because it's accusing reporter for the 2nd time breaking international law over the island protocol and the border they think that some sort of getting back a brit over the vaccinations they're the ones who ought to break is an absolute lie counted in tandem. massey's maybe i slice it brussels

commercial or the place like the british government lawyers or just the easily power there's a meeting of the mass media oh. and they can be a long serving actually horrid cold is it not drug commission. president i'm disappointed that it has british sas because if we can i think we could or chaps more countries to invest in britain we could count for your well our corporations have either worries us 25 percent below the average and considering it's only 5 b.n. but there's france's 30. 2 yeah only front may you go and you know i may. a drunk just says he likes a drink and obviously the european commission deny completely any any kind of signs of being like the mafia back to so neck i suppose you see in the magazine private eye talking about his personal links to non domiciles do you think there are

personal signs that we should watch for is regarding actual corruption in a former goldman sachs executive i mean were all of these free zones that he's announcing which around the world are known for are known for corruption arguably i know you probably back these free zones but britain's ports going to be like those of. nations that are accused of smuggling larry idea and let's try and it's. going to be a lot of many of. your sort of corruption issues just because he was a very successful bank that he's married to be yes to. success you know right. do you accept success or just sad. you know you weight loss.

we saw. all the success very very unconscious and i mean you can. say. easily less popular member of the front line can you eat the shadow shots actually . we'll have to get back to what private eye said about you at another time actually more than the budget of the people of britain and many people around the world will be looking to this feud in the royal family you've been very mean to markell talking about the wearing diamonds of saudi crown prince a moment when someone why you attacking meghan markle and their oprah winfrey. interview when when prince andrew i think is wanted by the f.b.i. for questioning. that has experience and you resorts to a lot of him and i think he should talk to the f.b.i. he tells me. he wants to talk to us a suspect there's a hell of

a race through. eastern sad. u.s.c. anywhere he's disappeared from. the revelation that. she really meant starr who left the policy to say the same thing. no he's denying that this e-mail uses these people lest the sheep are just an animator maurice jesus asked our warrior one who are else here she takes a fairly or it's worth millions in the crowd this area or this issue has asked us when it joey when i was christian who did what he did now sit in the same restaurant as us in some way use she will as it were then 3 nice article. it's like. a crown trees with salt to all did that murder he was murdered he farms

and shot up nights in a saudi embassy and she started her start knowing the press is it gosh they are expensive this is what agent rock she didn't say oh yes into the office and just that is it so are no. crown prince she got questions larger and she's got questions to ask about how she. does it she has it makes you look rather hypocritical and as a courtesy you halted a campaign against these take on the police taking over. ok well sure you know where the crown jewels actually come from who the queen west go to film where where there were so atrocities apparently as well and there piers thank . and that's it for the show when we're back on monday but until then go underground with poor social media and videos are you sure.

he was. killed at the. time. was running james olmos those who don't consume don't tell you then certainly don't joke the only thing i'm done in that are equal tony jones is my son's only clothes are still small come an inch and don't want to slow down please don't tell him to. move up to those old wooden unisys owners assume time souder.

there are 3 big events in him all the confused 3 which could not be predicted because they were ridiculous the good the prospects for because it was great will won because nobody read it can see that what would happen if you deployed us old and machine guns on so i could be called a machine guns because this was always done again civil war your school do you use drugs my. friends your vacation no serious french politician would could ever ever accepted up some good deal like year he become leader of the country and when we complete it was incomparable going to come up the soviet you. because again you know soledad it was. even. the soviets themselves.

slovakia's prime minister rejects calls to not use russia's sputniks the vaccine as the country's vaccination campaign gets bogged down by politics. u.k. medical workers are outraged after the government offered the offers them a fraught pay rise of only one per cent. and the dream holiday turns nightmare we heard we hear from a passenger who was trapped on a tally in cruise ship during a covert outbreak which resulted in the deaths of 3 people. if they refuse 24 mos a couple cases aboard the ship that they had tested positive there was no suspicion but people refused to give us information.