Chancellor welcomes 0.25% cut in interest rates

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Chancellor Rachel Reeves says the 0.25% cut in interest rates will be "welcome news  for millions of home owners and businesses”. Report by Blairm. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn

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00:00It's welcome news for millions of homeowners and businesses that interest

00:05rates have been cut today to 4.75%. I do though recognise that for many people

00:12who took out mortgages a few years ago they're still looking at higher rates

00:16because of the spike in interest rates after the Conservative mini-budget

00:20two years ago. Well interest rates are now on a downward path evidenced by the

00:23cuts in the interest rates today by the Bank of England and both the Office of

00:28Budget Responsibility and indeed the Bank of England forecast today shows

00:32that the economy is growing, interest rates and inflation are coming down but

00:37that is a world away from the last Parliament which was the worst

00:39Parliament on record for living standards. Inflation reaching more than

00:4311%, interest rates spiking after the mini-budget and growth stagnant too. When

00:48I became Chancellor I inherited a 22 billion pound black hole in the public

00:53finances. That means that I had to make a number of difficult decisions in the

00:57budget around tax, spending and welfare but our public finances are now on a

01:02firm footing. We've reset public spending so that our schools and our

01:07hospitals are properly funded and businesses now have the certainty as

01:10indeed do families that we've drawn a line under the chaos and instability

01:15over the last few years. We've wiped the slate clean and so our public finances

01:20are on a firm footing and so we're not going to have to come back with another

01:25load of tax increases in ways that the Conservatives did.

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