- 3 months ago
British Finance Minister Rachel Reeves unveiled her plan to “rebuild Britain’s economy,” announcing a £120 billion public investment drive, tax reforms, and new trade deals with the U.S., EU, and India. Reeves said real progress takes time, but falling interest rates, rising wages, and lower NHS waiting lists show the plan is working — ahead of her November Budget announcement in Parliament.
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NewsTranscript
00:00Later this month, I will deliver my second budget as Chancellor of the Exchequer.
00:06At that budget, I will make the choices necessary to deliver strong foundations for our economy.
00:13My budget, led by this government's values of fairness and opportunity,
00:20and focused entirely on the priorities of the British people,
00:24protecting our NHS, reducing our national debt,
00:30and improving the cost of living.
00:34There is a lot of speculation about the choices that I will make.
00:38I understand that.
00:40These are important choices that will shape the future of our country for years to come.
00:47I want people to understand the circumstances we are facing,
00:51the principles guiding my choices,
00:54and why I believe they will be the right choices for our country.
01:02We are a country with considerable economic strengths,
01:06an open trading economy,
01:08a global hub for cutting-edge industries from AI to biotech,
01:13with world-leading universities and scientific institutions,
01:17and a talented and a committed workforce.
01:21But years of economic mismanagement has limited our country's potential,
01:26with long-term issues continually unchecked,
01:29and potential unrealised.
01:33At the budget last year, I fixed the foundations,
01:38dealing with the aftermath of Liz Truss's disastrous mini-budget,
01:42and the £22 billion black hole in the public finances left by the previous government.
01:47I put our public finances back on a firm footing,
01:52provided an urgent cash injection into our faltering public services,
01:56and began rebuilding our economy.
02:01But since that budget, the world has thrown even more challenges our way.
02:07The continual threat of tariffs has dragged on global confidence,
02:11deterring business investment and dampening growth.
02:15Inflation has been too slow to come down.
02:17As supply chains continue to be volatile,
02:21meaning the costs of everyday essentials remain too high.
02:25And the cost of government borrowing has increased around the world,
02:29a shift that Britain, with our high levels of debt left by the previous government,
02:35has been particularly exposed to.
02:37And in an uncertain world,
02:39we also face pressure to increase our defence spending,
02:43and it is right that we do that,
02:45protecting ourselves from hostile actors,
02:48and supporting our allies.
02:52And there are other pressures on the public finances.
02:54The Prime Minister,
02:57the Secretary of Work and Pensions,
02:59and this whole government are committed to reforming our welfare state,
03:05so that it is not a system that counts the costs of failure,
03:09but one that invests in success and protects those who need it most.
03:13There is nothing progressive about refusing to reform a system that is leaving one in eight young people out of education or employment.
03:24So we have begun the job of creating a system that protects people who cannot work and empowers those who can.
03:32And there are longer-term challenges, too.
03:37That feeling, shared by millions of people across the country,
03:41that the economy isn't working as it should.
03:45Alongside the budget this month,
03:47the Office of Budget Responsibility,
03:49the UK's public finance watchdog,
03:52will set out the conclusions of their review of the supply side of the UK economy.
03:57I will not pre-empt those conclusions,
04:00but it is already clear
04:01that the productivity performance that we inherited from the last government
04:05is weaker than previously thought.
04:08A less productive economy
04:09is one that produces less output per hour worked.
04:13That has consequences for working people,
04:16for their jobs,
04:17and for their wages.
04:19And it has consequences for the public finances, too,
04:23in lower tax receipts.
04:25It's not a question of how hard people work.
04:29Poor productivity means that we're putting in more,
04:32we're getting out less.
04:34It means too many businesses and workers
04:36don't have the tools that they need.
04:38Trains that run on time,
04:40broadband that's fast and reliable,
04:42access to new technologies,
04:45or proper training
04:46so people have the right skills for the job.
04:49For a long time,
04:51commentators have talked about Britain's productivity puzzle.
04:54But it's not a puzzle.
04:56The causes of our economic underperformance are well understood.
04:59The chronic stop-go cycle of public investment
05:03has left us with roads full of potholes,
05:06high energy prices,
05:07and unstable conditions for vital business investment in skills and technology.
05:12And long-term failure to invest in our regions
05:15has built growth on a narrow base,
05:18with some parts of the country forging ahead,
05:22while others fall behind.
05:23The truth is that previous governments
05:27have not adequately faced up to these challenges.
05:31Too often,
05:33political convenience
05:34has been prioritised
05:35over economic imperative.
05:38The decision to pursue a policy of austerity
05:41after the financial crisis
05:42dealt a hammer blow to our economy,
05:46gutting our public services
05:47and severing the flows of investment
05:49that would have put our country
05:51on a path to recovery.
05:53The years that followed
05:54were characterised by instability
05:57and indecision,
05:59with crucial capital investment
06:01continually sacrificed
06:02and hard decisions put off
06:04again and again.
06:06And then a rushed
06:08and ill-conceived Brexit
06:09that brought further disruption
06:11as businesses trying to trade
06:14were faced with extra costs
06:15and extra paperwork.
06:18All this meant
06:19that when the pandemic arrived,
06:22our country was underprepared,
06:24our public services weakened
06:26and our economy fragile.
06:28And we finished the pandemic
06:29with higher death rates
06:31and higher debt
06:32than our peers.
06:34This isn't about
06:36re-litigating old choices.
06:39It's about being honest
06:40with the people
06:41about the consequences
06:42that those choices have had.
06:45It is my job
06:46to deal with the world
06:47as we find it.
06:50Not the world
06:51that I might wish it to be.
06:53Not to commentate
06:55or to speculate,
06:57but to act.
07:00In my Mays lecture last year,
07:02I set out our plan
07:04for solving our productivity problem
07:06through a programme
07:08of stability,
07:09investment and reform.
07:10And when I became Chancellor,
07:12I began to put that plan
07:13into action.
07:15Stabilising our public finances,
07:17making the tax
07:18and spending decisions
07:19to get debt down
07:20and to fund our public services
07:22sustainably.
07:24Changing the fiscal rules
07:26to increase public investment
07:28by £120 billion
07:29over the course
07:30of this Parliament.
07:32And crowding in private investment too.
07:35For road and for rail.
07:36For housing and nuclear power.
07:39And reforming our economy.
07:41Ripping up the planning rules
07:42so we can build housing
07:44and infrastructure
07:45right across the country.
07:47Bringing the brightest
07:48and the best to our shores
07:49with a new visa regime.
07:52And signing trade deals
07:53with the EU, the US and India
07:55to help businesses export
07:57around the world.
07:58We've begun to see
08:01the results of those plans.
08:02In falling interest rates
08:04and falling NHS waiting lists.
08:06In rising wages
08:08and rising investment.
08:10But I know
08:10that real progress
08:12takes time.
08:14Our growth
08:15was the fastest
08:16in the G7
08:17in the first half
08:17of this year.
08:18I don't expect anyone
08:20to be satisfied
08:21with growth of 1%.
08:22I'm not.
08:24And I know
08:25that there is more to do.
08:27The first part
08:28of our planning reforms
08:29will add an additional
08:30£6.8 billion
08:31to the size of our economy
08:32in the next five years.
08:34But the next part,
08:35our planning bill,
08:36must complete its passage
08:37through Parliament
08:38before it can make a difference.
08:39Interest rates
08:41which rose from 0.1%
08:43to 5.25%
08:44in the last Parliament
08:45have now been cut
08:47five times.
08:48But at 4%,
08:49they are still a constraint
08:51on business borrowing
08:52and a burden
08:53on family finances.
08:55Inflation
08:56is already
08:56much lower
08:57than the double digits
08:58seen under the
08:58previous government.
09:00And the choices
09:00I make in this budget
09:02this month
09:03will be focused
09:04on getting
09:04inflation falling
09:06and creating
09:07the conditions
09:08for interest rate cuts
09:09to support
09:10economic growth
09:11and improve
09:12the cost of living.
09:14I understand
09:15the urge
09:16for easy answers.
09:19Politicians
09:20of recent years
09:21have become
09:22addicted
09:23to shelling out
09:23for short-term
09:24sticking plaster solutions
09:26rather than making
09:27long-term
09:28economic plans.
09:30They were
09:31irresponsible then.
09:32And those
09:33who continue
09:34to push
09:34for easy answers
09:35are irresponsible
09:37now.
09:39The UK's
09:40national debt
09:41now stands
09:42at £2.6 trillion
09:44equivalent
09:45to 94%
09:47of GDP.
09:49Before the
09:50mini-budget
09:50our borrowing costs
09:52were in the middle
09:52of the pack
09:53of advanced economies.
09:54But now
09:55we have the highest
09:56borrowing costs
09:57of any G7 country.
09:59Today
10:00one in every
10:01£10 of
10:02taxpayers' money
10:03is spent
10:04on debt
10:05interest.
10:05not paying
10:07that debt
10:08down
10:08but
10:09just
10:10paying
10:10the interest
10:11to our
10:11creditors.
10:13At the budget
10:14last year
10:14I changed
10:15the fiscal
10:16rules
10:16to strike
10:17a careful
10:17balance
10:18to invest
10:19more in
10:19capital
10:20alongside
10:20a credible
10:21plan
10:21to grow
10:22our economy
10:23and bring
10:24debt down
10:24within this
10:25parliament.
10:26That was
10:27the right
10:27decision
10:27to break
10:28the cycle
10:29of low
10:29productivity
10:30and low
10:31growth.
10:31But that
10:33additional
10:34investment
10:34can only
10:35be delivered
10:36because markets
10:37know my
10:38commitment
10:39to the fiscal
10:40rules
10:40is ironclad.
10:43Some people
10:44say that we
10:44should just
10:45sidestep those
10:46rules.
10:46That we can
10:47borrow more
10:48without consequence
10:49by simply
10:49reclassifying areas
10:51like defence
10:52or education.
10:54But no
10:55accounting trick
10:55can change
10:56the basic
10:57fact that
10:58government debt
10:58is sold
10:59on financial
11:00markets.
11:01There are
11:02limits on
11:02the price
11:03that banks
11:03hedge funds
11:04and pension
11:05funds are
11:05willing to
11:05pay for
11:06our debt.
11:07And we
11:07are competing
11:08constantly
11:09with other
11:10countries
11:10also selling
11:12debt.
11:13The more
11:14that we
11:14try to
11:15sell
11:15the more
11:16it will
11:16cost us.
11:18It is
11:19important
11:19that everyone
11:20the public
11:21and politicians
11:22understand
11:23that reality.
11:25The less
11:26we spend
11:27on debt
11:27interest
11:28the more
11:29we can
11:29spend on
11:30the priorities
11:30of working
11:31people.
11:32Our
11:32NHS,
11:34our schools,
11:35our national
11:36security.
11:37The public
11:38service is
11:38essential to
11:40both a decent
11:40society and
11:41a strong
11:42economy.
11:44At the budget
11:45last year
11:45I provided
11:46our public
11:47services with
11:48a vital
11:48cash injection
11:49and I am
11:50proud of
11:50that choice.
11:52Proud
11:52that it is
11:53a Labour
11:53government
11:54that is
11:54providing
11:54record
11:55investment
11:55in our
11:56NHS
11:56getting
11:57waiting
11:57lists
11:58down
11:58by
11:58over
11:58200,000
11:59since the
12:00election.
12:01Proud
12:02that it is
12:03a Labour
12:03government
12:04that is
12:04investing
12:04in our
12:05children
12:06through the
12:07rollout of
12:07free breakfast
12:08clubs
12:08and free
12:09school
12:09meals.
12:10And proud
12:11that it is
12:12a Labour
12:13government
12:13that is
12:13funding
12:14our armed
12:14forces
12:15and remains
12:16resolute
12:16in our
12:17NATO
12:17commitments.
12:19The
12:20alternative
12:20is to
12:21row back
12:22on those
12:23investments.
12:24To return
12:25to the
12:25cycle of
12:25austerity
12:26and decline
12:27which is
12:27what got
12:28us here
12:28in the
12:28first place.
12:30Passing
12:30the cost
12:31of government
12:31failure
12:32onto
12:32communities
12:32and
12:33families.
12:34Stifling
12:35our economic
12:35growth
12:36and weakening
12:37Britain's
12:38foundations
12:38in an
12:39unstable
12:40world.
12:41I will
12:42not repeat
12:43those mistakes.
12:45But if
12:46we want
12:47strong
12:48public
12:48services
12:48in the
12:49decades
12:49to come
12:50then we
12:51must
12:51recognise
12:51that
12:52productivity
12:53and
12:53efficiency
12:54are not
12:54only a
12:55challenge
12:55for
12:55business
12:56they are
12:57a challenge
12:57for the
12:57public
12:58sector
12:58too.
13:00At the
13:00spending
13:00review
13:01I
13:01announced
13:01£14
13:02billion
13:02of
13:02efficiencies
13:03per
13:03year
13:04to be
13:04delivered
13:04by
13:052029.
13:06Cutting
13:07government
13:07spend
13:08on
13:08consultancies
13:08getting
13:10rid of
13:10bureaucratic
13:11quangos
13:11and
13:11regulators
13:12and
13:13driving
13:13efficiency
13:14through
13:14AI
13:14and
13:15digital
13:15technologies
13:16but I
13:17know
13:18that
13:18there
13:18is
13:18more
13:18to
13:18do
13:18in
13:20the
13:20budget
13:20and
13:20beyond
13:21I
13:21will
13:21continue
13:22to
13:22drive
13:22for
13:23more
13:23productive
13:23and
13:24more
13:24efficient
13:24public
13:25services
13:25right
13:26across
13:26government
13:26making
13:28savings
13:28and
13:29rooting
13:29out
13:29waste
13:30wherever
13:30I
13:30find
13:31it.
13:32Now
13:32my
13:33opponents
13:33will
13:33tell
13:33you
13:34that
13:34they
13:34could
13:34do
13:34more
13:35reform
13:36who
13:37promise
13:38savings
13:38from
13:38our
13:38public
13:39services
13:39and
13:40yet
13:40in
13:41Kent
13:41County
13:41Council
13:42and
13:42councils
13:42they run
13:43across
13:43Britain
13:44apparently
13:45they
13:45can't
13:45find
13:45a
13:45single
13:46penny
13:46and
13:47instead
13:47going to
13:48increase
13:48council
13:48tax
13:49for
13:49more
13:49than
13:492
13:50million
13:50people
13:50or
13:52the
13:52Conservatives
13:52who
13:53promised
13:54£47
13:54billion
13:55of
13:55cuts
13:55when
13:56during
13:5614
13:57years
13:57in
13:57power
13:58they
13:58oversaw
13:58rising
13:59welfare
13:59costs
14:00and a
14:00growing
14:00civil
14:01service
14:01what
14:02what
14:02were
14:02they
14:03doing
14:03for
14:0314
14:04years
14:04let
14:06us
14:06be
14:06clear
14:07there
14:08is
14:08no
14:08way
14:09that
14:09cuts
14:09on
14:09that
14:10scale
14:10equivalent
14:11to
14:11cutting
14:12our
14:12entire
14:13armed
14:13forces
14:13or
14:14cutting
14:14every
14:15single
14:15police
14:16officer
14:16in
14:16the
14:16country
14:17twice
14:18over
14:18could
14:19be
14:19delivered
14:19without
14:20devastating
14:21consequences
14:21for our
14:22public
14:22services
14:23austerity
14:25reckless
14:26borrowing
14:26made up
14:27numbers
14:28they
14:29are
14:29the
14:29problems
14:30not
14:30the
14:31solutions
14:31they
14:32are
14:32the
14:33mistakes
14:33of
14:33the
14:33past
14:33which
14:34would
14:34only
14:34take
14:35us
14:35backwards
14:35I
14:36will
14:37not
14:37repeat
14:37them
14:38when
14:40I
14:40was
14:40appointed
14:41chancellor
14:41people
14:42put
14:42their
14:42faith
14:43in
14:43me
14:43to
14:43take
14:43our
14:43country
14:44forward
14:44not
14:45to
14:45be
14:46swayed
14:46by
14:46political
14:46convenience
14:47not
14:48to
14:49always
14:49do
14:49what
14:49is
14:49popular
14:50but
14:51to
14:51do
14:51what
14:52is
14:52right
14:52at
14:54the
14:54budget
14:54I
14:54will
14:54continue
14:55to
14:55deliver
14:55on
14:55the
14:56priorities
14:56of
14:56the
14:56British
14:57people
14:57cutting
14:58NHS
14:59waiting
14:59lists
15:00cutting
15:01the
15:01national
15:01debt
15:02and
15:02cutting
15:03the
15:03cost
15:03of
15:03living
15:04and
15:05in
15:05the
15:05context
15:06of
15:06the
15:06long
15:07term
15:07challenges
15:07on
15:07our
15:08productivity
15:08and
15:09heightened
15:09global
15:09uncertainty
15:10any
15:11chancellor
15:12of
15:12any
15:13party
15:13would
15:14be
15:14standing
15:14here
15:15today
15:15facing
15:16the
15:16choices
15:16that
15:17I
15:17face
15:18the
15:19difference
15:20is
15:20in
15:20the
15:21priorities
15:21and
15:22the
15:22values
15:23that
15:23will
15:24guide
15:24those
15:24choices
15:25mine
15:27will
15:27be
15:27a
15:27budget
15:27for
15:27growth
15:28with
15:28fairness
15:29at
15:29its
15:29heart
15:30and
15:31a
15:31budget
15:31that
15:31supports
15:32businesses
15:32to
15:33create
15:33jobs
15:34and
15:35to
15:35innovate
15:35as
15:37I
15:37take
15:38my
15:38decisions
15:38on
15:39both
15:39tax
15:40and
15:40spend
15:41I
15:41will
15:41do
15:42what
15:42is
15:42necessary
15:42to
15:43protect
15:43families
15:44from
15:44high
15:44inflation
15:45and
15:46interest
15:46rates
15:46to
15:47protect
15:48our
15:48public
15:48services
15:49from
15:49a
15:49return
15:50to
15:50austerity
15:50and
15:52to
15:52ensure
15:52that
15:53the
15:53economy
15:53that
15:54we
15:54hand
15:54down
15:54to
15:55future
15:55generations
15:56is
15:56secure
15:57with
15:57debt
15:58under
15:58control
15:59if
16:01we
16:01are
16:01to
16:01build
16:02the
16:02future
16:02of
16:03Britain
16:03together
16:03we
16:05will
16:05all
16:05have
16:05to
16:06contribute
16:06to
16:07that
16:07effort
16:07each
16:09of
16:09us
16:09must
16:10do
16:10our
16:10bit
16:10for
16:11the
16:11security
16:12of
16:12our
16:12country
16:12and
16:13the
16:13brightness
16:14of
16:14its
16:14future
16:15there
16:17is
16:17a
16:17reward
16:17for
16:18getting
16:18these
16:18decisions
16:18right
16:19to
16:20build
16:20more
16:21resilient
16:21public
16:22finances
16:22with
16:23the
16:23head
16:23room
16:24to
16:24withstand
16:24global
16:25turbulence
16:25giving
16:27business
16:27the
16:27confidence
16:28to
16:28invest
16:28and
16:28leaving
16:29government
16:29freer to
16:30act
16:30when the
16:30situation
16:31calls
16:31for it
16:32to
16:33continue
16:33to
16:34invest
16:34in
16:34our
16:34infrastructure
16:35and
16:36our
16:36industry
16:36to
16:37build
16:37a
16:37stronger
16:38economy
16:38and
16:39to
16:40get
16:40the
16:40cost
16:40of
16:40borrowing
16:41down
16:41spending
16:42less
16:42on
16:42debt
16:43interest
16:43and
16:43more
16:43on
16:44schools
16:44and
16:45on
16:45our
16:45health
16:45service
16:46the
16:48Office
16:48of
16:49Budget
16:49Responsibility
16:49will
16:50make
16:50their
16:50forecasts
16:51at
16:51the
16:52end
16:52of
16:52this
16:52month
16:52but
16:54let's
16:54be
16:55clear
16:55about
16:55what
16:56forecasts
16:56are
16:57they're
16:58not
16:59visions
16:59of
16:59the
16:59future
17:00they're
17:01a
17:01look
17:01in
17:01the
17:02rearview
17:02mirror
17:02the
17:04OBR
17:04rightly
17:04make
17:05their
17:05predictions
17:05based
17:05on
17:06the
17:06data
17:06that
17:06has
17:06gone
17:07before
17:07but
17:08I
17:08do
17:08not
17:09believe
17:09that
17:09our
17:09past
17:10has
17:10to
17:10determine
17:10our
17:11future
17:11or
17:12that
17:12a
17:12stuttering
17:13economy
17:13poor
17:14productivity
17:14and
17:15falling
17:15living
17:15standards
17:16is
17:16somehow
17:16Britain's
17:17destiny
17:17a
17:18brighter
17:19future
17:19is
17:20within
17:20our
17:20grasp
17:21we
17:22were
17:23elected
17:23to
17:24break
17:24with
17:24the
17:24cycle
17:25of
17:25decline
17:25and
17:26this
17:26government
17:26is
17:27determined
17:27to
17:27see
17:28that
17:28through
17:28so
17:29we
17:30will
17:30go
17:30further
17:30and
17:30faster
17:31on
17:32planning
17:32on
17:33the
17:33industrial
17:33strategy
17:34on
17:35reforming
17:35regulation
17:36all
17:37to
17:38deliver
17:38growth
17:38throughout
17:39our
17:39economy
17:39in
17:40all
17:40parts
17:41of
17:41our
17:41country
17:42we
17:43will
17:43bear
17:43down
17:44on
17:44waiting
17:44lists
17:45on
17:45the
17:45cost
17:46of
17:46living
17:46and
17:47on
17:47the
17:47national
17:47debt
17:48which
17:48compound
17:49these
17:49challenges
17:49and
17:51when
17:51that
17:51requires
17:51hard
17:52choices
17:52we
17:52will
17:52act
17:53guided
17:54by
17:54the
17:55interests
17:55of
17:56working
17:56people
17:56we
17:58we
17:58were
17:58elected
17:58on
17:59a
17:59commitment
17:59to
18:00put
18:00country
18:00before
18:01party
18:01the
18:02national
18:03interest
18:03before
18:04political
18:04calculation
18:05and
18:06whatever
18:07challenges
18:07come
18:07our
18:08way
18:08whatever
18:09challenges
18:10come
18:10my
18:10way
18:11we
18:12will
18:12not
18:12be
18:12swayed
18:13from
18:13that
19:43and
19:44the
19:44office
19:44of
19:44budget
19:44responsibility
19:45will
19:45set
19:45all
19:46that
19:46out
19:46they've
19:46done
19:47the
19:47review
19:47of the
19:47supply
19:48side
19:48of the
19:48economy
19:49that
19:49looks at
19:49the
19:49past
19:50but they use the past to predict the future
19:53and
19:55as
19:55Chancellor
19:56I have to face the world as it is
19:57not the world that I want it to be
19:59and when challenges come our way
20:01the only question is
20:03how to respond
20:04to them
20:04not whether to respond
20:05or not
20:07and
20:07as I respond
20:08at the budget on the 26th of November
20:10my focus will be on getting NHS waiting lists down
20:14getting the cost of living down
20:16and also getting the national debt down
20:19Robert Peston from ITV News
20:22Chancellor
20:23good to see you
20:24you've just made the case
20:26in effect
20:27for raising taxes
20:28by tens of billions of pounds
20:29the
20:30HMRC stats don't lie
20:32if you do that
20:33you will have to put up taxes
20:36for millions of people
20:39including those
20:41you call working people
20:42won't you
20:43well today it is not about individual choices
20:48they will be set out in the usual way
20:49in the budget
20:51but what I want people to understand
20:53as we go into that budget
20:55is the circumstances
20:57which we face
20:58and that is circumstances
21:00of great opportunities
21:01for our country
21:02for the reasons that I set out
21:04but also big challenges
21:05and
21:06as Chancellor
21:07I could do what previous governments
21:08have done
21:09which is to sweep those challenges
21:11under the carpet
21:12to cut capital spending
21:13to make the numbers add up
21:15but then we'll be back here
21:16in a year
21:17or in five years time
21:18with productivity still on its knees
21:20growth underperforming
21:22compared with our peers
21:24and the national debt
21:25continued to rise
21:26so I'm being honest with people
21:29that at the election
21:31I said
21:32that we would put the national interest first
21:35people can see
21:37that
21:38that things are changing
21:39that the global circumstances
21:41are challenging
21:42and I hope they will see
21:44at the budget
21:45on the 26th of November
21:46that the focus
21:47on getting the debt down
21:49getting NHS waiting lists down
21:51and getting the cost of living down
21:53which continues to be
21:54people's number one concern
21:55are the priorities
21:57that I will be focusing on
21:59Neil Macdonald
22:01from Channel 4 News
22:02Hello Chancellor
22:04Concerns about the OBR's
22:09assessment of productivity
22:10have been around
22:11for years and years and years
22:13you must surely have known
22:15this problem was lurking out there
22:17does that mean
22:18that you should have been clearer
22:19with people at the time
22:20of the election
22:21that you might have put up taxes
22:22to deal with that problem
22:23Well we did increase taxes
22:26last year at the budget
22:27to fill the £22 billion
22:29black hole
22:30in the public finances
22:31Chancellor of course
22:34has to use
22:35the independent forecasts
22:36of the Office of Budget
22:37Responsibility
22:38and we used those
22:39last year at the budget
22:41at the spring statement
22:42and at the spending review
22:44but of course
22:45it is their right
22:45to change those forecasts
22:48but the most important thing
22:50is that we use
22:50those forecasts
22:51to underpin a budget
22:55or a spending review
22:57and in fact
22:57when a Chancellor
22:58decides not to do that
22:59you go the way
23:00that Liz Truss
23:01and Kwasi Kwasing did
23:02Kwasi Kwarteng did
23:03where they wouldn't even allow
23:05the OBR to do a forecast
23:07I have respect
23:08for independent economic institutions
23:09whether that is
23:11an independent Bank of England
23:12or an independent
23:13Office of Budget Responsibility
23:14and that's why
23:15I use their forecasts
23:17in the way
23:18that we should
23:19but they will update
23:22as we all know
23:23their view
23:24about the supply side
23:25of the economy
23:25they will set out
23:26the reasons for doing that
23:28and the reasons
23:29for their new assumptions
23:31on total factor productivity
23:34the productivity predictions
23:38for the forecast
23:39but forecasts are by their nature
23:41based on past data
23:42I don't believe
23:44that the past
23:45is our destiny
23:48I believe
23:49and I am determined
23:50to defy those forecasts
23:52but it is right
23:53that we use those forecasts
23:54to underpin
23:56our economic policy
23:57otherwise
23:58I am afraid
23:59it is the road to ruin
24:01which is the road
24:02that Liz Truss
24:03and Kwasi Kwarteng chose
24:04which is why
24:05we still have
24:06higher borrowing costs
24:07than every other
24:08G7 economy
24:09that was not the case
24:10before that mini budget
24:12I am determined
24:12to bring those borrowing costs down
24:14and to bring
24:15our national debt down
24:16so instead of spending
24:17one in every ten pounds
24:18of taxpayers money
24:19on servicing our national debt
24:21we can put that money
24:22to good use
24:23in our public services
24:24Chris Mason
24:26from BBC News
24:26Thank you Chancellor
24:28Chris Mason
24:29BBC News
24:30I have got your manifesto
24:31here from last year
24:32and on page 21
24:33it says explicitly
24:35that Labour
24:36will not increase taxes
24:37on working people
24:37which is why
24:38we will not increase
24:39national insurance
24:39the basic higher
24:40additional rates
24:41of income tax
24:41or VAT
24:42what do you say
24:43to those
24:44who have listened
24:45to you this morning
24:45and yes they will wait
24:46for your choices
24:47in a few weeks time
24:48but will say
24:49perhaps
24:50crikey
24:50it looks like
24:51the Chancellor
24:52is about to drive
24:53a coach and horses
24:54to either that promise
24:55or the promise
24:56from a year ago
24:57not to come back
24:58for more
24:59and if I may
25:00on last week's news
25:02how did you manage
25:03to make such a mess
25:04of applying for
25:05a rental licence
25:06on your home
25:07having championed
25:07the very policy
25:08yourself
25:09and then managed
25:10to give one account
25:11to the Prime Minister
25:11only to come back
25:13and have to give
25:13another one
25:14thank you
25:15so I will set out
25:19the specific
25:21policy choices
25:22on the 26th
25:23of November
25:24and that's the
25:25right thing to do
25:26and we're going
25:27through that process
25:28and the iterative
25:29process with the OBR
25:30at the moment
25:30with the forecast
25:32and different
25:33policy measures
25:34what I want people
25:36to understand
25:37and I think it is
25:38the right thing
25:38and the courteous
25:39thing to do
25:40to explain
25:42those challenges
25:42but also the principles
25:44that will guide me
25:45in confronting them
25:48and that's what
25:49today's speech
25:50is about
25:52you know
25:54there would be
25:54a different route
25:55through this
25:56as I said
25:57in a previous answer
25:59I could say
26:00as I said
26:00to Robert
26:01and what previous
26:02chancellors did
26:02was okay
26:04we've got these
26:04challenges coming our way
26:06the easy thing to do
26:07would be to cut
26:08investment in housing
26:09to cut investment
26:10in energy security
26:11to cut investment
26:12in our transport
26:14infrastructure
26:15the reason we have
26:17such low productivity
26:18today
26:18and the reason why
26:19the OBR are updating
26:20their forecasts
26:21is because governments
26:23have done that
26:24for the last 14 years
26:26and that's why
26:27we face so many
26:28of the challenges
26:28we face today
26:29and I'm not going
26:30to be a chancellor
26:31like that
26:32I am going to put
26:33the country first
26:33I'm going to put
26:34the national interest first
26:35so that chancellors
26:37in the future
26:37are not going to
26:39have to address
26:40the productivity puzzle
26:41I don't think
26:42it's a puzzle
26:43but the productivity
26:43problem
26:44that we face today
26:45I'm going to take
26:46the long term interests
26:47in our country's interest
26:49and as I make
26:52those decisions
26:52I am going to be
26:54laser focused
26:54on what I think
26:55are the key things
26:57for our country
26:58right now
26:58and that is to
26:59get our debt down
27:00because if we weren't
27:01spending one in every
27:02ten pounds
27:03on just servicing the debt
27:04not even repaying it
27:05but just on the interest costs
27:06then we'd have more money
27:07for our NHS
27:08or indeed
27:09money for tax cuts
27:10getting NHS waiting lists down
27:14we've already cut them
27:15by over 200,000
27:16in the first year
27:18of this Labour government
27:19but of course
27:20there's more to do
27:21with the waiting list
27:22is still more than 7 million
27:23and to get the cost
27:24of living down
27:25because interest rates
27:26and inflation
27:27of course
27:28are putting pressure
27:28on family finances
27:30in the same way
27:31that taxes put pressure
27:32on family finances
27:34so I set out
27:35the circumstances
27:36that I'm confronting
27:38going into this budget
27:39and also the principles
27:40and then people
27:41will be able to judge
27:42whether they think
27:43I've made the right decisions
27:45I will argue
27:47that they are
27:48the right decisions
27:48in our country's
27:49national interest
27:50of course
27:51it's the role of others
27:52to scrutinise
27:52but for other political parties
27:54it's their responsibility
27:55to put forward
27:56an alternative
27:57and an alternative
27:58not of fantasy economics
27:59like what we're hearing
28:00at the moment
28:00from reform
28:01and the conservative
28:02but serious plans
28:04because that's what
28:04these times demand
28:05Ben Reilly-Smith
28:07from the Daily Telegraph
28:08oh sorry
28:09and on the issue of housing
28:10there was an exchange
28:11of letters last week
28:12between myself
28:12and the Prime Minister
28:13and the Prime Minister's
28:15ethics advisor
28:16has passed his judgment
28:18I don't have anything
28:19more to say than that
28:20Ben Reilly-Smith
28:21from the Daily Telegraph
28:23Thank you Chancellor
28:24it's pretty clear
28:24you're keeping open
28:25the possibility
28:26of breaking your manifesto
28:28as you say
28:28you want to do
28:29what's right
28:29but not what's popular
28:31if you look at history
28:32well I'd like to do both
28:33but I will do
28:36what is right
28:36well often governments
28:37that have broken manifestos
28:38have been turfed out
28:39are you willing to lose
28:40the next election
28:41if it puts the public
28:42finances right
28:43we've got to do
28:44the right things
28:44you know the problem
28:45of the last 14 years
28:47is that political expediency
28:48always came above
28:50the national interest
28:50and that is why
28:52we are in the mess
28:52that we are in today
28:53you know there's no reason
28:55why borrowing costs
28:56in Britain should be higher
28:57than every other G7 economy
28:58well why are borrowing costs
28:59are higher than in Italy
29:01or in France
29:02the reason they are
29:03is because
29:04the damage done
29:05by that mini budget
29:06it might have been
29:07three years ago
29:08but we're still paying
29:09the price of that
29:09but also the price
29:10of keep racking up
29:12the national debt
29:1294% of GDP
29:142.6 trillion
29:15pounds
29:17if we had lower debt
29:18and we had lower debt
29:19servicing costs
29:20we wouldn't be having
29:21to make the choices
29:22that we have to make
29:24today
29:25and I'm determined
29:25to put our country
29:27on a more sustainable footing
29:28public finances
29:29that are under control
29:31public services
29:33that are properly funded
29:34and yes
29:36with a focus
29:37on fairness
29:37and on growth
29:39because in the end
29:40growth is the best way
29:42out of the challenges
29:43that we face
29:44I set all that out
29:46but if you're asking me
29:47what comes first
29:48the national interest
29:49or political expediency
29:50it's the national interest
29:52every single time with me
29:55you
29:55you
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