00:00The Chancellor has been consistent and upfront with the public about her considerations in the
00:04lead-up to the budget last week. First, the Chancellor was clear on her priorities at the
00:11budget, which was to cut NHS waiting lists, to cut the cost of living, and to cut our debt and
00:16borrowing. The budget that she delivered last week delivered on those priorities. Secondly,
00:23the Chancellor was clear on November 4th that a lower productivity forecast would mean lower
00:28tax receipts. The OBR confirmed at the budget that tax receipts are £16 billion lower as
00:34a result of their reduced productivity forecast. Third, the Chancellor was clear on November
00:404th that she intended to build more headroom. She has done that, with a headroom against
00:45the stability rule at £21.7 billion. Fourth, the Chancellor was clear in the summer that
00:53the policy decisions we took on welfare would need to be paid for at the budget, and the
00:56budget document shows those decisions cost £6.9 billion in 29-30. And finally, the OBR
01:03have now confirmed that the Chancellor knew on 4th of November that she only had £4.2 billion
01:08of headroom against the fiscal rules, meaning that once the cost of those policy decisions
01:12was accounted for, there would be a deficit of £2.7 billion against the stability rule.
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