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tv   BBC News at One  BBC News  September 4, 2019 1:00pm-1:30pm BST

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i know the father of the house and i know the father of the house is well aware o and i know the father of the house is well aware 0 that. the opening remarks of the chancellor were frankly out of order, that is the reality of the matter, order, i don't need any help from anybody challenging the position, no, no, with the greatest of respect i will provide the rulings from the chair, thatis provide the rulings from the chair, that is the way it works in this place. i hope everybody's very clear about that. that is the way it works in this place. the opening remarks from the chancellor were out of order, i exercised a degree of latitude, but the right honourable and learned member is right that the statement should be focussed on and exclusively concerning the spending round. as it is, the right honourable gentleman consulted me yesterday because he was concerned about the length of the statement, it shouldn't be longer as a result of remarks that don't relate to that subject. that is all i need to say. very straightforward and i knee the
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chancellor will comply with that simple stricture. thank you, mr speaker. mr speaker, let me reassure people of this. if we leave with no deal, we will be ready. within my first few days as chancellor, i provided £2.i ready. within my first few days as chancellor, i provided £2.1 billion of extra funding for brexit and no deal preparedness and today, i can announce that we will provide a further £2 billion for brexit delivery next year as well. that means more border force staff, better transport infrastructure at oui’ better transport infrastructure at our ports and more support for business readiness. i have tasked the treasury with preparing a comprehensive economic response to support the economy if needed and will work closely with the independent bank of england to coordinate fiscal and monetary policy. sensible economic policy means that we should plan for both outcomes, and we are doing so. but we should be careful not to let our
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focus on planning and preparedness distract us from the opportunities that lie ahead. brexit will allow us to reshape the british economy and reaffirm our place as a world leading economic power. we will have the opportunity to design smart and flexible regulation or to cut red tape which stifles innovation. we will be able to replace inefficient eu programmes with better, homegrown alternatives. even if we leave with no deal, i'm confident that we will be able to secure a deep, best in class free trade agreement with the eu and we will be able to pursue a genuinely independent free trade policy with the rest of the world. deal or no deal, mr speaker, i'm confident that our best days lie ahead. of the talks is uncertain, there are some things which we can be certain about with regard to the economy and oui’ about with regard to the economy and our ability to spend what we can afford to spend. as we look forward
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to our future outside the uk, we afford to spend. as we look forward to ourfuture outside the uk, we can build on some extraordinary economic strengths. at its heart, outside of the eu, at its heart, this country is an open, outward —looking, trading nation. we are at our best when we looked out to the world beyond our shores. that's notjust a slogan, we are the number one destination in europe for inward investment. our language, our location, our legal system, and most of all, our people, make the uk a global hub for business. we are the home of world—class businesses, a strea m home of world—class businesses, a stream of ideas and innovation flows from our brilliant universities and research institutions, making the uk second only to the us in all—time rankings for nobel prize winners. and we have an economic landscape thatis and we have an economic landscape that is being watched over by long—standing, well respected institutions. and all of that will continue as we for a new economic relationship with the eu. but mr
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speaker, the vision of an open, free—market, enterprising economy, is under threat. and if that transpires, it will have a direct impact on our spending power. it is not under threat from the people on the other side of the, but from the people on the other side of the chamber. let's be in no doubt about the biggest threat to the uk in economy. “— the biggest threat to the uk in economy. —— the other side of the channel. the number one issue raised by businesses and international investors is not the form of our exit from the eu, the real project fear is the agenda of the party opposite. if they had their way, whole sectors of the economy... order, order. it really is very, very unseemly, and i'm sorry to have to say that to the chancellor of the exchequer, who has always been unfailingly courteous in his personal dealings with me and probably with everybody else, i say what i say with a heavy heart and
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not without reflection, there is a procedure to statements of this kind, a very long established procedure, and it bothers me greatly that the right honourable gentleman in the course of a statement seems to be veering into matters outwith, not even tangential, but unrelated, to the spending round upon which he is focused. and i know that i say what i do with the vigourous concurrence of people who've been in this house a great deal longer than he has, or than this house a great deal longer than he has, orthan i have. and so, i must ask the chancellor, who i'm sure is fleet of foot, so to adjust his remarks from his prepared text, that he focuses on that upon which he should focus and not upon that which is immaterial to the statement. and i'm setting out the
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position, and no—one, be he ever so high, is going to tell me what the procedures in the chamber of the house of commons are. the chancellor of the exchequer. mr speaker... mr speaker, when i first... mr speaker, you will recall that when i first took my seat as a member of parliament for bromsgrove, the economy was in a very different position, and since then we've had to work hard to restore the nation's finances, and it is precisely because we have restored the nation's finances that we can have the spending commitments that i am about to make today. and mr speaker, ifi about to make today. and mr speaker, if i may set out the context of what the situation was then, and how we have got out of there, so that we can focus on how we can generate the spending power that we are able to deploy today. and i know, mr speaker, that back then, our budget
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deficit was 10% of gdp. we borrowed £150 billion in labour's last year in office, it was the highest deficit in our peacetime history. we we re deficit in our peacetime history. we were borrowing £1 in every £4 that was spent. the party opposite lost control of the nation's finances, as they always do, and it fell to conservatives to pick up the mess. mr speaker, my two immediate predecessors took the difficult decisions that we need to bring the deficit under control, that allows us deficit under control, that allows us to have the spending that i am setting out today. they didn't do that for ideological reasons, but because running an enormous deficit meant that our debt was rising at an unsustainable rate, making our economy vulnerable to shocks and passing on a huge burden to the next generation. the deficit now, mr speaker, is 1.1% of gdp. for the first time in a generation, public—sector debt is falling sustainably as a share of our
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national income, and we've boosted our credit ability around the world and build confidence in uk economy again. labour left behind a bankrupt britain and we've fixed it. thanks to those difficult decisions and the ha rd to those difficult decisions and the hard work of the british people, we can now hard work of the british people, we can now afford to turn the page of austerity and move forward from a decade of recovery to a decade of renewal. mr speaker, our careful management of the public finances means we can now management of the public finances means we can now afford to spend more on vital public services. so, today, i'm deciding to set the real increase in day—to—day spending next year at £30.8 billion, delivering on the people's priorities across the nhs, education and the police, and giving certainty to all departments about their budgets for the next year, clearing the decks for a government that is delivering brexit, and i've always believed in the importance of living within our
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means, and unlike the party opposite, i won't squander the hard work of the last nine years. so, even work of the last nine years. so, even with the extra spending, we are still meeting the current fiscal rules. but while our biggest challenge decade ago was getting the deficit down, our biggest challenge todayis deficit down, our biggest challenge today is getting our long—term economic growth back to where it was before labour's great recession. if we can do that, mr speaker, we can make sure that there can be future spending increases that can also be sustainable, boosting wages and raising living standards, which have stagnated for too long, levelling up across the regions and nations. and we need to improve our productivity. the amount that is produced every hour worked. that isn'tjust a technical term. slower productivity means technical term. slower productivity m ea ns lower technical term. slower productivity means lower wages and uneven growth across the country. if productivity had continued to grow at its pre—crisis levels, then average
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annual wages would be £5,000 higher. that pressure on the pay packet speaks to a wider sense of unfairness and disappointment, especially in so many towns and cities outside london and the south—east. even as the economy has grown, people work hard but not eve ryo ne grown, people work hard but not everyone feels they have benefited. there is a real sense of anxiety which has emerged over the years, a sense that politicians aren't listening and that the system isn't working, that the free—market model isn't living up its promise. we are seeing divisions emerge throughout society between regions and communities, rich and poor, rural and rural, young and old. and addressing those concerns will be a serious effort and that is what will be shown in these spending plans today. so, we will develop a new economic plan for the years ahead, a plan that moves beyond the last decade of economic recovery and looks forward to a decade of renewal, a plan that invests more in the future growth of this country.
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so, mr speaker, we can afford to invest more because our economy is growing and our public finances are strong. and we are also deciding on our fiscal strong. and we are also deciding on ourfiscal approach at strong. and we are also deciding on our fiscal approach at a time when the cost of government borrowing is at record lows. interest rates have been low for many years. and in recent weeks, the cost of government borrowing has fallen below 1% across all charities. in the years after the financial crisis, many expected interest rates to swiftly rise to precrisis levels. —— all maturities. increasing our confidence that we will be able to continue to see low rates for a number of years. so, it is myjudgment rates for a number of years. so, it is my judgment today that with a strong fiscal position and record low cost of borrowing, we can invest more in our growing economy. that doesn't mean that we can borrow more
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for ever and ever. the sustainability of our public finances depends on wider factors, not just the cost of finances depends on wider factors, notjust the cost of borrowing. our population, the global economy is slowing, the challenge of decarbonisation is real. so, we won't be writing blank cheques, unlike the party opposite. we won't be able to afford everything, and we will need to prioritise investment in policies that deliver real productivity gains and boost economic growth in the long term. we will still need to make difficult choices about our national priorities within a clear set of rules to anchor our fiscal policy and keep control of our national debt. so, mr speaker, today, i can announce that ahead of the budget later this year, i will review our fiscal framework to ensure it meets the economic priorities of today, not of a decade ago. mr speaker, the first priority of our new economic plan will be to rebuild our national. high quality and reliable
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infrastructure is essential to how we live and work and travel. but the truth is that across many decades, governance of all colours have underinvested in infrastructure. the quality of our infrastructure means we've fallen behind our competitors. we are the fifth largest economy in the world. it isn't good enough that we are so far behind on infrastructure. it isn't good enough that so many commuters and spend their mornings staring at a delay sign. it isn't good enough that our small business owners waste so much time because of slow internet speed and poor mobile communications. we're going to change that. we want faster broadband for everyone in the country, quicker mobile connections and better signal coverage, cleaner energy, greener transport and more affordable fuel bills for our homes and offices. we want more trains and buses to connect the great cities of the north. we want to build
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world —class the north. we want to build world—class schools and hospitals, we wa nt world—class schools and hospitals, we want to push the frontiers of science and technology and turbocharge our ambition on research and development. we want to build and development. we want to build and invest in every region and every nation of this great united kingdom, from the motor highway to the information highway, we will settle for nothing less than an infrastructure revolution. mr speaker, to keep spending under control, we will, of course, set a high barforfunding control, we will, of course, set a high bar for funding projects control, we will, of course, set a high barforfunding projects and they will have to show real value for money with credible delivery plans and budgets, starting with the government's rapid review of hs2. we will target that investment at national priorities like regional growth and decarbonisation. let me ta ke growth and decarbonisation. let me take this opportunity, mr speaker, to thank my honourable friend the memberfor to thank my honourable friend the member for chelmsford for her tireless work is the chair of the all—party group on infrastructure. so, yes, mr speaker, we will use the government's resources to kickstart
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the infrastructure revolution but we will also do more to give private investors the confidence to back these projects has he we want all of this to be underpinned by strong, independent institutions. we've set up independent institutions. we've set up the national commission in 2015 and we will continue to rely on its expert advice as we look carefully at other institutional reforms that might be needed. so, our infrastructure revolution will be strategic and carefully planned. and speaking of revolutionaries, mr speaker, let's contrast that with labours approach. i will invest in new infrastructure which will grow the economy, and labour will borrow hundreds of millions to renationalise unproductive assets and then run them into the ground. mr speaker, the choice for the country is clear, between a wasteful ideological opposition with outdated ideas and a government that will kickstart a decade of renewal for this country.
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today we lay the foundations of a new economic plan, turning the page ona new economic plan, turning the page on a decade of necessary work to fix the public finances and writing a new ca ptu re the public finances and writing a new capture in our public services. health and education aren'tjust the names of departments. they are lifelines and opportunities, just as they were for me when i was growing up. the teachers and lecturers who persuaded me to study economics in the first place. i apologise for interrupting the chancellor. there will be ample opportunity for colleagues to question the chancellor of the exchequer, but the statement must be heard. mr speaker, health and education are lifelines of opportunitiesjust health and education are lifelines of opportunities just as they were for me when i was growing up. the lecturers who persuaded me to study economics in the first place, the police officers who kept us safe
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when the street i grew up and became a centre for drug dealers. the nhs that cared for my dad in his final days. these are just numbers on a spreadsheet, these are the beating heart of our country and we invest to support them today. as i turned to support them today. as i turned to the details of the day's announcement. wait, it's coming. let me first thank the dedicated officials and the treasury for all officials and the treasury for all of their hard work. delivering what lam of their hard work. delivering what i am told is the fastest sr in history and let me thank my right honourable friend who has taken the approach to spending you would expect from a yorkshireman. he has displayed the typical energy, courtesy and rigour, and let me say there is no productivity prop —— problem in the chief secretary's office. next year i will add £13.4
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billion to the plans for total public spending including £1.7 billion added to capital spending. these extra funds take the real increase in day to day spending to £13.8 billion, or 4.1%. increase in day to day spending to £13.8 billion, or4.1%. i increase in day to day spending to £13.8 billion, or 4.1%. i am delivering the fastest increase in day to day spending in 15 years. that funding allows us to start a new chapter for our public services that funds the people's priorities. decisions today have been guided by our ambition to build a safer britain, healthier britain, better educated britain and a more global britain. mr speaker, my family grew up britain. mr speaker, my family grew up on britain. mr speaker, my family grew upona britain. mr speaker, my family grew up on a road in bristol that a national newspaper described back then as britain's most dangerous street. but to us, it was just home. after we left, my brother became a policeman has been in the force for
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25 years. so i have seen the impact that the job has on the lives of those who are courageous enough to do it. today i pay tribute to the bravery, courage and dedication of our hard—working bravery, courage and dedication of our ha rd—working police bravery, courage and dedication of our hard—working police officers. as home secretary, i saw first—hand how the demands of police forces are changing and increasing. yes, traditional crime is down by a third since 2010, but the threats from terrorism have escalated and evolved. the internet is changing how criminals operate and break the law. and we have seen too many horrifying studies on britain's streets. —— horrifying stabbings. so with our office is reporting that they are overstretched, it's clearly time to act and do more. and today i can announce a time to act and do more. and today i can announce a 6.3% real terms increase in home office spending, the biggest increase in 15 years.
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that means £750 million to fund of the first year of our plan to recruit 20,000 new police officers. with an extra £45 million this year so that recruitment can start immediately, getting the first 2000 officers in place by the end of march. let me thank my right honourable and honourable friends, the members for south west adventure, wokingham, isle of wight, nuneaton and telford for championing the police and police resourcing. the threats facing our police officers are evolving as well, for the way we resource them we have to evolve in three areas. first, serious and organised crime is the most deadly national threat faced by the uk, costing the nation at least £37 billion per year. the scale and the complexity of this thread means we need to do more to develop our
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response. so i'm announcing today a formal review to identify the powers, the capabilities, governance and funded needing a head of a full spending review next year. second, this year, sadly, has seen more tax on places —— attacks on places of worship including mosques and synagogues. that is unacceptable in a diverse, open, tolerant society ours. soto protect our religious and minority communities, i am announcing today that i will double the places of worship fund next year. and i thank my honourable friend the member sport hendon and the memberfor friend the member sport hendon and the member for finchley and friend the member sport hendon and the memberfor finchley and golders green for their tireless work in combating hate crime. also today i am announcing £30 million of new funding to tackle the scourge of online child sexual exploitation. a better resourced police force will deliver better outcomes for the british people and it will increase
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the demands on our already overstretched criminaljustice system. today, we invest more in our criminal justice system system. today, we invest more in our criminaljustice system to manage that increasing demand with a 5% real terms increase in the resource budget from the ministry ofjustice and an increase in their capital budget to £620 million next year. and an extra £80 million for the crown prosecution service stop taken together, today's spending round will dramatically improve the functioning of the criminaljustice system with more prosecutors, a reformed probation system, better security in prisons and funding to begin delivery of 10,000 new prison places. mr speaker, the spending round is delivering on the people's priority and there is no higher priority and there is no higher priority than the nhs. last year we increased nhs spending by an extra £34 billion per year by 2023 — 24.
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that was the single largest cash increase in public services for more than 70 years. today we reaffirm our commitment to the nhs with a £6.2 billion increase in funding next year. what are investing more in professional training for doctors and nurses and over £2 billion of new capital funding, starting with an upgrade of 20 hospitals this year and £250 million for ground—breaking new artificial intelligence technologies to help solve some of health care's biggest challenges today, like easier cancer detection, discovering new treatments and relieving the workload on doctors and nurses. we can't have an effective health system without an effective health system without an effective social care system as well. their prime minister has committed to a clear plan to fix social care and give every older person the dignity and security they
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deserve. i can person the dignity and security they deserve. i can announce person the dignity and security they deserve. i can announce today that councils will have access to new funding of1.5vilic councils will have access to new funding of 1.5 vilic —— £1.5 billion for social care next year. alongside the largest increase in local government spending power since 2010. and on top of the existing 2.5 billion in social care grants, that's a solid foundation to protect the stability of the system next year and the stability of the system next yearand a the stability of the system next year and a down payment on the more fundamental reforms that the prime minister will set out in due course. to is the action i am taking day to support vulnerable people. on any given night there are too many people sleeping rough on our streets. the human cost is too high. today we will do more, with £54 million of new funding to reduce homelessness and rough sleeping, taking it to a total funding of £422
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million next year. that is a real terms increase of 13%. and can i thank my honourable friend the member of harrow east for his tireless work in fighting homelessness. mr speaker, a healthy environment is a precondition for a healthy population, and that is why we have set out an ambitious 25 year plan for the uk's natural environment. and today we go further. leaving the eu provides an opportunity to set a world leading environmental standards and we are giving deaf £432 million of funding to do so. we are providing £30 million of new money to tackle the crisis in ourair million of new money to tackle the crisis in our air quality and another 30 million for biodiversity, including the expansion of the blue belt programme, a vital part of the campaign to protect precious marine species like turtles and sea birds. we are stepping up leadership on
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climate change with new funding for development of new programmes to help with the net zero commitment by 2050 and we will set out further details for our plans on decarbonisation and infrastructure in the strategy later this year. keeping our promise to be the first government in history to leave our environment in a better condition that we found it. —— than we found it. alongside providing for the health of the population, the most important task of a government is to educate the next generation. education and skills are at the heart of our vision for national renewal. the economy is notjust about gdp or psn b, there are many broader tests that matter as well. our children, are they growing up to be better off than their parents? do ha rd be better off than their parents? do hard work and talent matter more than where you are born? a good
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school, inspirational teachers are the most effective engine for social mobility that there is. that is why today we are delivering on our pledge to increase school spending by {7.1 pledge to increase school spending by £7.1 billion by 2023 compared to this year. next year, we will make sure that day—to—day funding for every school can rise at least in line with inflation, with the schools that have been historically underfunded benefiting the most. every secondary school will be allocated a minimal additional £5,000 for every pupil next year, and every primary school will be allocated at least £3750 per pupil, on track to reach £4000 per pupil the following year. this funding will mean that teachers starting salaries can rise as well, up to
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£30,000 by 2023 so we can attract more of the best graduates into teaching. we have allocated nearly £1.5 billion per year to contribute to teachers pensions, and we are providing over £700 million to give more support for children with special educational needs, an 11% increase compared to last year. nearly every other department i am announcing today will be funded for just one year, but we recognise the importance of schools being able to plan, so we are now seeing today a full three year resource settlement for schools, levelling up education, improving standards and giving every young person the same opportunities in life where ever they live in our great country. and let me particularly thank my honourable friend the member is for bexhill and
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cheltenham and st albans for championing schools. mr speaker, the education system is about more than just schools. for too long, further education has been a forgotten sector. over 1 education has been a forgotten sector. over1 million young people continue their education beyond the age of 16 continue their education beyond the age of16 in continue their education beyond the age of 16 in colleges or sixth forms, and i know, because i was one of them. i went to my local ft couege of them. i went to my local ft college and if i had not had the teachers and lecturers that i did, i wouldn't be standing here today as chancellor. further education transformed my life and today we start transforming further education with a £400 million increase in education funding next year. the base rate will increase to £4188, a faster rate of growth than the core school funding, let me congratulate my right honourable friend the memberfor harlow my right honourable friend the member for harlow and my honourable
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friend for their representations and further education. the government will also increase early year spending by £66 million to increase the hourly rate that has been paid to maintain nursery schools and other childcare providers who deliver on the government's free child care offer. i want to thank my right honourable friend the member for chipping barnet for raising the issue with me. our young people deserve high quality services and support, even after the school day is over. earlier this year, following a recommendation from my right honourable friend, the member for chingford, i visited the fantastic on—site youth zone in barking. it was a brilliant example of how much britain's network of youth centres add to their local communities. getting young people off the streets and changing lives for the better. so today i am asking
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