{"id":97027,"date":"2018-10-29T18:14:00","date_gmt":"2018-10-29T18:14:00","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=05671e564268459f1ab37c96a2453dc7"},"modified":"2018-10-29T18:14:00","modified_gmt":"2018-10-29T18:14:00","slug":"speech-budget-2018-philip-hammonds-speech","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=97027","title":{"rendered":"Speech: Budget 2018: Philip Hammond’s speech"},"content":{"rendered":"
\n

Mr Deputy Speaker,<\/p>\n

Today, I present to the House a Budget for Britain\u2019s future;<\/p>\n

A budget that shows the perseverance of the British people finally paying off\u2026<\/p>\n

A Budget for hard working families\u2026<\/p>\n

\u2026who live their lives far from this place\u2026<\/p>\n

\u2026and care little for the twists and turns of Westminster politics.<\/p>\n

People who get up early in the morning\u2026<\/p>\n

\u2026to open up factories, shops, and building sites\u2026<\/p>\n

\u2026to drop their kids off at school\u2026<\/p>\n

\u2026to check on elderly relatives and neighbours.<\/p>\n

The strivers, the grafters and the carers who are the backbone of our communities and our economy.<\/p>\n

People who ask only of Government that we protect the jobs that put food on their table\u2026<\/p>\n

\u2026that we deliver the public services their families rely on\u2026<\/p>\n

\u2026and that we do it efficiently, minimising the amount of tax we need to take from their hard-earned wages.<\/p>\n

People who we, on this side of the House, are proud to represent.<\/p>\n

So I say to them:<\/p>\n

This Budget is unashamedly for you.<\/p>\n

Mr Deputy Speaker,<\/p>\n

The British people put their faith in us to do the job\u2026<\/p>\n

\u2026and today we repay that trust with a Budget that paves the way for a brighter future.<\/p>\n

And, Mr Deputy Speaker, let me be clear why:<\/p>\n

The tough decisions of the past eight years were not driven by ideology\u2026<\/p>\n

\u2026they were driven by necessity;<\/p>\n

[political content removed]<\/p>\n

And, as ever, we did what needed to be done.<\/p>\n

Now we have reached a defining moment on this, long, hard journey.<\/p>\n

Opening a new chapter in our country\u2019s economic history.<\/p>\n

Where we can look confidently to the future\u2026<\/p>\n

\u2026and set our course for where this remarkable country will go next.<\/p>\n

Because today, Mr Deputy Speaker,<\/p>\n

I can report to the British people\u2026<\/p>\n

\u2026that their hard work is paying off\u2026<\/p>\n

\u2026and the era of austerity finally coming to an end.<\/p>\n

Mr Deputy Speaker,<\/p>\n

I\u2019m sure like me – many members of the House, keenly remember the last Budget on a Monday\u2026<\/p>\n

\u2026it was 1962\u2026<\/p>\n

\u2026I was 6 years old\u2026<\/p>\n

\u2026tensions between Russia and the United States were rising\u2026<\/p>\n

\u2026and a former Foreign Secretary turned Chancellor\u2026<\/p>\n

\u2026labelled by some as \u201cstubborn\u201d and \u201cdifficult\u201d\u2026<\/p>\n

\u2026delivered a Budget amid Cabinet revolt\u2026<\/p>\n

[political content removed]<\/p>\n

And I remember my parents turning to me and saying: Philip, that could be you one day.<\/p>\n

Mr Deputy Speaker\u2026<\/p>\n

\u2026the media has been full of speculation about the timing of today\u2019s Budget\u2026<\/p>\n

Some were hoping for a December budget:<\/p>\n

I am sure the headline writers were ready with:<\/p>\n

\u201cSpreadsheet Phil turns Santa Claus\u201d.<\/p>\n

Others were desperate for it to be on Wednesday:<\/p>\n

\u201cHammo House of Horrors\u201d, perhaps.<\/p>\n

But the truth is, by choosing today, rather than Wednesday, I have not avoided the blood-curdling threats, the
\nanguished wailing, and the strange banging of furniture..<\/p>\n

\u2026I have kindly been invited to a special meeting of the 1922 committee this evening.<\/p>\n

Mr Deputy Speaker,<\/p>\n

Our economy continues to confound those who talk it down\u2026<\/p>\n

\u2026and we continue to focus resolutely on the challenges and opportunities that lie ahead\u2026<\/p>\n

\u2026as we build a new relationship with our European neighbours\u2026<\/p>\n

\u2026a new future outside the European Union.<\/p>\n

But as we do so, let us not forget the remarkable achievements of the British people in clearing up the aftermath of the recession:<\/p>\n

\u2026The British people have a record to be proud of:<\/p>\n

Eight straight years of economic growth;<\/p>\n

Over 3.3 million more people in jobs<\/p>\n

Higher employment and lower unemployment in every region and every nation of the United Kingdom;<\/p>\n

Wages growing at their fastest pace in almost a decade;<\/p>\n

[political content removed]<\/p>\n

An economy back on its feet again;<\/p>\n

An economy working\u2026<\/p>\n

\u2026 not for the few\u2026<\/p>\n

\u2026nor even for the many\u2026<\/p>\n

\u2026an economy working for everyone.<\/p>\n

Mr Deputy Speaker,<\/p>\n

We are at a pivotal moment in our EU negotiations\u2026<\/p>\n

\u2026and the stakes could not be higher:<\/p>\n

Get it right, and we will not only protect Britain\u2019s jobs, businesses and prosperity\u2026<\/p>\n

\u2026but we will also harvest a double \u201cDeal Dividend\u201d<\/p>\n

A boost from the end of uncertainty;<\/p>\n

And a boost from releasing some of the fiscal headroom that I am holding in reserve at the moment.<\/p>\n

We are confident that we will secure a deal which delivers that dividend.<\/p>\n

Confident, but not complacent.<\/p>\n

So we will continue to plan for all eventualities\u2026<\/p>\n

\u2026and I will do so at this Budget with a three-pronged approach:<\/p>\n

First, I have already allocated \u00a32.2bn to departments for Brexit preparations;<\/p>\n

And in the Autumn Budget last year I set aside a further \u00a31.5bn to be allocated for 2019-20.<\/p>\n

Today I am increasing that sum to \u00a32bn\u2026<\/p>\n

\u2026and in the coming weeks the Chief Secretary will announce allocations to individual Departments.<\/p>\n

Secondly, I shall today maintain the headroom to my fiscal rules broadly as set out in the Spring Statement\u2026<\/p>\n

\u2026retaining firepower to intervene if the economy needs more support in the coming months.<\/p>\n

And thirdly, as I have been clear since moving to an Autumn Budget\u2026<\/p>\n

\u2026 if the economic or fiscal outlook changes materially in-year\u2026<\/p>\n

\u2026 I will take whatever action is appropriate, including if necessary reserving the right to upgrade the Spring Statement to a full Fiscal Event.<\/p>\n

Mr Deputy Speaker,<\/p>\n

The House can be confident that we are working for the best outcome for Britain\u2026
\n\u2026but preparing for every eventuality.<\/p>\n

Mr Deputy Speaker,<\/p>\n

I shall first report to the House on the economic forecasts of the independent OBR\u2026<\/p>\n

\u2026and I thank Robert Chote and his team, for their work.<\/p>\n

The OBR expect growth to be resilient across the forecast period\u2026<\/p>\n

\u2026improving next year from the 1.3% forecast at the Spring Statement\u2026<\/p>\n

\u2026to 1.6%\u2026<\/p>\n

\u2026then 1.4% in 2020 and 2021; 1.5% in 2022; and 1.6% in 2023.<\/p>\n

Mr Deputy Speaker,<\/p>\n

This Government has prioritised getting people into work\u2026<\/p>\n

\u2026because the best way to help people is to provide them with the stability of a pay packet every month.<\/p>\n

Since 2010 over 3.3 million more people are in work\u2026<\/p>\n

And today the OBR confirm Britain\u2019s \u201cjobs miracle\u201d is set to continue\u2026<\/p>\n

\u2026revising up participation in the labour market\u2026<\/p>\n

\u2026 revising down the country\u2019s \u201cequilibrium unemployment rate\u201d\u2026<\/p>\n

\u2026predicting 800,000 more jobs by 2023.<\/p>\n

By my calculation that\u2019s over 4.2 million net new jobs since 2010\u2026<\/p>\n

[political content removed]<\/p>\n

But now we need to focus on pay\u2026<\/p>\n

\u2026and with the proportion of low paid jobs at its lowest since 1997\u2026<\/p>\n

\u2026with regular pay growth at 3.1%, its strongest in almost a decade\u2026<\/p>\n

\u2026and inflation forecast to average 2% next year\u2026<\/p>\n

\u2026the OBR is forecasting sustained real wage growth in each of the next five years\u2026<\/p>\n

[political content removed]<\/p>\n

I turn now to the fiscal forecast.<\/p>\n

We inherited the highest budget deficit in our peacetime history.<\/p>\n

But after eight years, the hard work of the British people is paying off.<\/p>\n

\u2026and we will not squander their efforts.<\/p>\n

Today\u2019s forecast, taking into account all announcements since the Spring Statement, including measures I shall
\nannounce today, shows the deficit down from almost 10% [political content removed]\u2026<\/p>\n

\u2026to less than 1.4% next year [political content removed] \u2026<\/p>\n

\u2026and falling to just 0.8% by 2023-24.<\/p>\n

Borrowing this year will be \u00a311.6bn lower than forecast at the Spring Statement\u2026<\/p>\n

\u2026just 1.2% of GDP\u2026<\/p>\n

\u2026and is then set to fall from \u00a331.8bn in 2019\/20\u2026<\/p>\n

\u2026to \u00a326.7bn in 2020-21\u2026<\/p>\n

\u2026\u00a323.8bn in \u201821\u2019-\u201822\u2019\u2026<\/p>\n

\u2026\u00a320.8bn in \u201922-\u201823\u2019<\/p>\n

\u2026and \u00a319.8bn in 2023-24, its lowest level in over 20 years\u2026<\/p>\n

We meet our structural borrowing target 3 years early\u2026.<\/p>\n

\u2026and deliver borrowing of just 1.3% of GDP in 20-21\u2026<\/p>\n

\u2026maintaining \u00a315.4bn headroom against our 2% Fiscal Rules target.<\/p>\n

We are no longer borrowing at all to finance current spending.<\/p>\n

And today the OBR confirm that our national debt peaked in 2016\/17\u2026<\/p>\n

\u2026at 85.2% of GDP\u2026<\/p>\n

\u2026and then falls in every year of the forecast from 83.7% this year; to 74.1% in 23-24\u2026<\/p>\n

\u2026that\u2019s lower in every year than forecast at the Spring Statement\u2026<\/p>\n

\u2026and it means that we meet our target to get debt falling 3 years early.<\/p>\n

\u2026a turning point in our nation\u2019s recovery<\/p>\n

[political content removed]<\/p>\n

Both our fiscal rules met; both of them three years early.<\/p>\n

So, Mr Deputy Speaker,<\/p>\n

Fiscal Phil says: Fiscal Rules OK.<\/p>\n

But Mr Deputy Speaker,<\/p>\n

[political content removed]<\/p>\n

I have always been clear:<\/p>\n

Sound public finances are essential \u2013 but they are not an end in themselves.<\/p>\n

So since I have been Chancellor, I have taken a balanced approach\u2026<\/p>\n

\u2026putting an additional \u00a360 billion into our public services and investment in our future\u2026<\/p>\n

\u2026cutting tax for 31 million people\u2026<\/p>\n

\u2026and all the while reducing borrowing and getting our national debt falling.<\/p>\n

Now we must do more\u2026<\/p>\n

\u2026and thanks to the hard work of the British people, in this Budget we can do more.<\/p>\n

I said at the Spring Statement\u2026<\/p>\n

\u2026that our careful management of the public finances was beginning to pay off\u2026<\/p>\n

\u2026and that if the improvement we saw then continued\u2026<\/p>\n

\u2026then I would be able to provide more support to our public services on a sustainable basis.<\/p>\n

Today, the OBR confirm a significant improvement in our public finances\u2026<\/p>\n

\u2026an upgrade that underscores the hard work of the British people\u2026<\/p>\n

\u2026and this government\u2019s stewardship of this economy since 2010\u2026<\/p>\n

\u2026and which means I can deliver on that promise I made in the Spring.<\/p>\n

Setting out a new path for public spending\u2026<\/p>\n

\u2026and a clear view for the British people of the fruits of their hard work.<\/p>\n

Next year we will conduct a full Spending Review<\/p>\n

\u2026setting our priorities for public spending within a sustainable funding envelope\u2026<\/p>\n

\u2026deciding on the right balance between investing in Britain\u2019s future\u2026<\/p>\n

\u2026and current consumption of public services.<\/p>\n

Today, I have set out an indicative 5-year path for departmental resource spending\u2026<\/p>\n

\u2026\u201dRDEL\u201d as it is known to aficionados of public finance.<\/p>\n

For context, Mr Deputy Speaker,<\/p>\n

In Spending Review 2010 average annual real growth was \u20133%;<\/p>\n

In Spending Review 2015 it was \u20131.3%;<\/p>\n

From next year it will be +1.2% annual average real growth.<\/p>\n

But that is not the limit of my ambition.<\/p>\n

When our EU negotiations deliver a deal, as I am confident they will\u2026<\/p>\n

\u2026I expect that the \u201cDeal Dividend\u201d will allow us to provide further funding for the Spending Review.<\/p>\n

The hard work of the British people is paying off.<\/p>\n

Austerity is coming to an end.<\/p>\n

Now Mr Deputy Speaker,<\/p>\n

You will know better than most that every Chancellor likes to have a rabbit or two in his hat as he approaches a
\nbudget\u2026<\/p>\n

\u2026but this year, some of my star bunnies appear to have escaped a little early!<\/p>\n

In June, My RHF the Prime Minister announced the single largest cash commitment to our public services ever made by a
\npeacetime Government\u2026<\/p>\n

\u2026An \u00a384bn five year deal for our precious NHS\u2026<\/p>\n

[political content removed]<\/p>\n

And let me be clear:<\/p>\n

We are delivering this historic \u00a320.5bn real terms increase for the NHS in full over the next five years.<\/p>\n

So, in a important sense, we made our big choice for this budget, four months before it was delivered.<\/p>\n

And this was the right decision: our NHS is the number one priority of the British people; and as we approached
\nthe 70th anniversary of its foundation, they had a right to know the scale of our commitment to it.<\/p>\n

But the British people also care that money invested in the NHS goes to the front line and to improvements in services.<\/p>\n

So we didn\u2019t just hand over money\u2026<\/p>\n

\u2026we agreed that the NHS would produce a ten-year plan\u2026<\/p>\n

\u2026setting out how the service will reform\u2026<\/p>\n

\u2026how waste will be reduced \u2026<\/p>\n

\u2026and exactly what the British people can expect to get for their money.<\/p>\n

That plan will be published shortly\u2026<\/p>\n

But I shall give the House a sneak preview today:<\/p>\n

There are many pressing demands on additional NHS funding\u2026<\/p>\n

\u2026but few more pressing than the needs of those who suffer from mental illness.<\/p>\n

And today I can announce that the NHS 10 Year Plan will include a new mental health crisis service\u2026<\/p>\n

\u2026with comprehensive mental health support available in every major A&E\u2026<\/p>\n

\u2026children and young peoples\u2019 crisis teams in every part of the country\u2026<\/p>\n

\u2026more mental health ambulances\u2026<\/p>\n

\u2026more \u201csafe havens\u201d in the community \u2026<\/p>\n

\u2026and a 24-hour mental health crisis hotline.<\/p>\n

These new services will ensure that people suffering from a crisis, young or old, can get the help they need\u2026<\/p>\n

\u2026ending the stigma that has forced too many to suffer in silence\u2026<\/p>\n

\u2026and ending too the tragedy of too many lives lost to suicide.<\/p>\n

We are proud to have made this extraordinary commitment to funding our NHS<\/p>\n

[political content removed]<\/p>\n

Mr Deputy Speaker,<\/p>\n

Departmental spending allocations with be settled at the Spending Review next year\u2026<\/p>\n

However, there are a small number of areas where I will provide further support now\u2026<\/p>\n

\u2026in order to deliver necessary certainty for forward planning.<\/p>\n

Local government has made a significant contribution to repairing the public finances \u2026<\/p>\n

\u2026.and this Budget ensures local councils have more resources to deliver high quality public services.<\/p>\n

We are giving councils greater control over the money they raise\u2026<\/p>\n

\u2026through the Adult Social Care precept\u2026<\/p>\n

\u2026through our plans for increased business rate retention from 2020\u2026<\/p>\n

\u2026and by removing the Housing Revenue Account cap so that councils can help to build the homes this country
\nneeds.<\/p>\n

We will shortly publish our Green Paper on the future of Social Care\u2026<\/p>\n

\u2026setting out the choices, some of them difficult, for making our social care system sustainable into the future.<\/p>\n

But I recognise the immediate pressures Local Authorities face in respect of social care.<\/p>\n

So today, building on the \u00a3240m for Social Care winter pressures announced earlier this month\u2026<\/p>\n

\u2026I will make available a further \u00a3650m of grant funding for English Authorities for 2019-20 \u2026<\/p>\n

\u2026and an additional \u00a345m for the Disabled Facilities Grant in England in 2018-19.<\/p>\n

And we\u2019ll invest a further \u00a384m over the next five years\u2026<\/p>\n

\u2026to expand our successful Children\u2019s Social Care programmes to 20 further councils with high or rising numbers
\nof children in care\u2026<\/p>\n

\u2026allowing councils to improve services for older people, for people with disabilities, and for children in care now\u2026<\/p>\n

\u2026while longer-term funding decisions will be made at the Spending Review.<\/p>\n

Mr Deputy Speaker,<\/p>\n

The UK spends more on defence than any NATO member except the US;<\/p>\n

But over the last year we have had stark reminders of the scale, scope and complexity of the threats we face.<\/p>\n

My RHF the Defence Secretary is working with the Cabinet Office and the Treasury to conduct a Review into the
\nmodernisation of our armed forces in response to the evolving threat\u2026<\/p>\n

\u2026which will form the basis for a comprehensive consideration of Defence spending next year.<\/p>\n

But as a former Defence Secretary myself, I understand the immediate pressures our Armed Forces are facing.<\/p>\n

So I will today provide an additional \u00a31bn to the MOD to cover the remainder of this year and next\u2026<\/p>\n

\u2026to boost our cyber capabilities\u2026<\/p>\n

\u2026and our anti-submarine warfare capacity\u2026<\/p>\n

\u2026and to maintain the pace of the Dreadnought programme to ensure Continuous At Sea Deterrence\u2026<\/p>\n

[political content removed]<\/p>\n

We are proud of our Armed Forces and we will always back them with the investment they need to keep this country safe.<\/p>\n

And, Mr Deputy Speaker\u2026<\/p>\n

It is not only our armed forces that keep us safe.<\/p>\n

Our Counter-terrorism police play a vital role in defending Britain against the evolving threats we face.<\/p>\n

We committed in 2015 to spend 30% more on Counter Terrorism capabilities over the current Spending Review period.<\/p>\n

And today I commit an additional \u00a3160m of CT police funding in 2019-20\u2026<\/p>\n

\u2026to protect CT police numbers\u2026<\/p>\n

\u2026and to allow future CT police funding to be considered in the round at the Spending Review.<\/p>\n

I recognise that policing more generally is under pressure from the changing nature of crime.<\/p>\n

I also recognise the representations made on this by many colleagues, such as my HF the Member for South-
\nWest Bedfordshire\u2026<\/p>\n

\u2026and I can tell the House today that my RHF the Home Secretary will review police spending power and further
\noptions for reform when he presents the provisional police funding settlement in December.<\/p>\n

Mr Deputy Speaker<\/p>\n

As I have already set out\u2026<\/p>\n

\u2026due to the hard work of the British people\u2026<\/p>\n

\u2026public borrowing this year is coming in substantially below forecast.<\/p>\n

This allows us to provide additional support for public services in the Spending Review\u2026<\/p>\n

\u2026and contributes to the significant reduction in forecast debt this year.<\/p>\n

But I also want to use this good news to give a little bit back, where it can be put to good use, in this financial year.<\/p>\n

Mr Deputy Speaker,<\/p>\n

This year marks a century since the end of the First World War.<\/p>\n

And as we remember our fallen servicemen and women whose sacrifice ensured the freedom we enjoy today\u2026<\/p>\n

\u2026many projects are raising money for veterans\u2019 charities from sales of commemorative items on which VAT is charged.<\/p>\n

Now we cannot waive the VAT due on these sales.<\/p>\n

But we can make a donation with the VAT we will receive\u2026<\/p>\n

\u2026and I commit today that the Treasury will mark the Centenary of the Armistice by making a donation of \u00a310m to
\nthe Armed Forces Covenant Fund Trust to support veterans with mental health needs.<\/p>\n

Many of our nation\u2019s village halls were built to commemorate the sacrifice of WW1\u2026<\/p>\n

\u2026and many are being refurbished to commemorate the centenary.<\/p>\n

So I will also provide funding for grants equivalent to the VAT chargeable on such refurbishment projects.<\/p>\n

And as our focus moves from anniversaries of the the First World War to the Second\u2026<\/p>\n

\u2026I will also provide \u00a31.7 million for educational programmes in schools to mark the 75th anniversary of the liberation of the Bergen-Belsen concentration camps\u2026<\/p>\n

\u2026ensuring the next generation hears the stories of those who survived the holocaust, and of the British soldiers
\nwho liberated them\u2026.<\/p>\n

\u2026because as the terrible events in Pittsburgh this weekend\u2026<\/p>\n

\u2026remind us, the battle against anti-Semitism did not end with the defeat of Nazi Germany.<\/p>\n

Across the length and breadth of England, our air ambulance services work tirelessly to get those with life-threatening illnesses and injuries quickly to the expert medical care they need\u2026<\/p>\n

\u2026funded entirely by philanthropy\u2026<\/p>\n

\u2026they do a fantastic job\u2026<\/p>\n

\u2026and today I am making \u00a310m of funding to help them to go on doing so.<\/p>\n

Mr Deputy Speaker,
\nWe\u2019re investing record amounts in our schools\u2026<\/p>\n

\u2026and that investment is paying off with 86% of schools now rated good or outstanding, compared to 68% in 2010.<\/p>\n

But I recognise that school budgets often do not stretch to that extra bit of kit that would make such a difference.<\/p>\n

So today I am announcing a \u00a3400m in-year bonus to help our schools buy the little extras they need\u2026<\/p>\n

\u2026a one-off capital payment directly to schools\u2026<\/p>\n

\u2026 averaging \u00a310,000 per primary school and \u00a350,000 per Secondary School.<\/p>\n

Mr Deputy Speaker,<\/p>\n

I have one final in-year measure to announce:<\/p>\n

Every Member of Parliament will testify that potholes are high on the public\u2019s list of concerns.<\/p>\n

So as autumn takes hold, I am making an additional \u00a3420m available immediately to Local Highway Authorities\u2026<\/p>\n

\u2026to tackle potholes, bridge repairs, and other minor works in this financial year.<\/p>\n

But Mr Deputy Speaker,<\/p>\n

If we want sustainable world class public services<\/p>\n

\u2026and rising living standards\u2026<\/p>\n

\u2026 we must make the serious long-term reforms our economy needs\u2026<\/p>\n

\u2026to tackle the productivity challenge\u2026<\/p>\n

\u2026prepare our nation for the technological change ahead\u2026<\/p>\n

\u2026and show the next generation that our market economy can evolve once again to meet the needs of the new
\nage.<\/p>\n

Because, [political content removed] \u201cending austerity\u201d is not just about funding public services;<\/p>\n

It\u2019s about real wage growth\u2026<\/p>\n

\u2026and it\u2019s about leaving more of people\u2019s hard-earned money in their pockets.<\/p>\n

This is the nation of the Industrial Revolution\u2026<\/p>\n

\u2026of Stephenson, of Whittle, Lovelace, Faraday\u2026<\/p>\n

\u2026people whose ideas shaped the world around them.<\/p>\n

And today, Britain once again can lead the world as we exploit a new wave of scientific and technological
\ndiscovery pouring out of our Universities and Research Institutes.<\/p>\n

And we can solve the productivity challenge if we are willing to embrace the future\u2026<\/p>\n

\u2026to make the choice to invest in infrastructure, in research, in skills and in our regions\u2026.<\/p>\n

\u2026to manage change, not hide from it.<\/p>\n

Mr Deputy Speaker\u2026<\/p>\n

\u2026I believe passionately in this agenda.<\/p>\n

But even I would admit that perhaps at the last two Budgets I might have given the House just a little bit more detailed
\ninformation on productivity and technological innovation than it strictly needed!<\/p>\n

So, Mr Deputy Speaker this time I will leave it to the Budget Red Book to set out more detail of the many measures we will take today\u2026<\/p>\n

\u2026including our commitment to technology with \u00a31.6bn of new investments to support our modern industrial strategy, from nuclear fusion to quantum computing\u2026<\/p>\n

\u2026and \u00a3150m for fellowships to attract the brightest talent to these shores from around the world so that our scientific research continues to lead the world \u2026<\/p>\n

\u2026and our commitment to infrastructure, expanding the National Productivity Investment Fund once again – to over \u00a338bn by 2023-24\u2026<\/p>\n

\u2026so that over the next five years, total public investment is growing by 30%\u2026<\/p>\n

\u2026to its highest sustained level in 40 years\u2026<\/p>\n

[political content removed]<\/p>\n

\u2026investing in the roads, railways, research, and digital infrastructure that will power this country in the 21st Century.<\/p>\n

Mr Deputy Speaker,<\/p>\n

Half of the UK\u2019s \u00a3600 billion infrastructure pipeline will be built and financed by the private sector.<\/p>\n

And in financing public infrastructure\u2026<\/p>\n

\u2026I remain committed to the use of public-private partnership where it delivers value for the taxpayer\u2026<\/p>\n

\u2026and genuinely transfers risk to the private sector.<\/p>\n

But there is compelling evidence that the Private Finance Initiative does neither.<\/p>\n

[political content removed]<\/p>\n

We will honour existing contracts.<\/p>\n

But the days of the public sector being a pushover, must end.<\/p>\n

We will establish a centre of excellence to actively manage these contracts in the taxpayers\u2019 interest starting in the
\nhealth sector.<\/p>\n

And we will go further.<\/p>\n

I have never signed off a PFI contract as Chancellor\u2026<\/p>\n

\u2026and I can confirm today that I never will.<\/p>\n

I can announce that the Government will abolish the use of PFI and PF2 for future projects.<\/p>\n

[political content removed]<\/p>\n

Mr Deputy Speaker,<\/p>\n

We\u2019re investing in our nation\u2019s infrastructure\u2026<\/p>\n

\u2026and backing the technologies of the future\u2026<\/p>\n

\u2026but we know that the real engine of growth is enterprise.<\/p>\n

[political content removed]<\/p>\n

\u2026because I want Britain to be one of the great winners of the technological revolution.<\/p>\n

[political content removed]<\/p>\n

We will always back enterprise and the market economy that underpins it\u2026<\/p>\n

\u2026because we know it is the only way to deliver the high-wage, high-skill economy of the future.<\/p>\n

As we finalise our departure from the EU\u2026<\/p>\n

\u2026and deliver a deal that secures Britain\u2019s future trade<\/p>\n

\u2026we must unleash the investment that will drive our future prosperity.<\/p>\n

So today I can announce a package of measures to stimulate business investment and send a message loud and clear to the rest of the world:<\/p>\n

Britain is open for business:<\/p>\n

I am increasing the Annual Investment Allowance, from \u00a3200,000 to \u00a31m for two years, delivering on a
\nlongstanding ask of the British Chambers of Commerce;<\/p>\n

I am providing a targeted relief for the cost of acquiring IP-rich businesses;<\/p>\n

And introducing a permanent tax relief for new non-residential structures and buildings\u2026<\/p>\n

\u2026partly funded by an adjustment in the special writing down rate for long-life assets from 8% to 6%\u2026<\/p>\n

\u2026to better align the tax and accounting treatment of these assets;<\/p>\n

To support British exports we will increase UKEF\u2019s direct lending facility by up to \u00a32bn;<\/p>\n

We\u2019ll open the use of e-passport gates at Heathrow and other airports\u2026<\/p>\n

\u2026currently only available to EEA nationals\u2026<\/p>\n

\u2026to include visitors from the US, Canada, New Zealand, Australia and Japan;<\/p>\n

And we will provide an additional \u00a3200m of funding to the British Business Bank to replace access to the
\nEuropean Investment Fund if needed;<\/p>\n

We\u2019ll back another 10,000 entrepreneurs by extending Start-Up Loans funding to 2021;<\/p>\n

And following representations from the FSB\u2026<\/p>\n

\u2026I am extending the New Enterprise Allowance \u2013 providing mentoring and support for benefit claimants to get
\ntheir business ideas off the ground.<\/p>\n

And with thanks to my HF the Member for Thirsk and Malton\u2026<\/p>\n

\u2026we\u2019re working with the FCA on expanding access to the Financial Ombudsman Service for larger SMEs\u2026<\/p>\n

As well as backing businesses to invest and grow, we will also make sure British workers are equipped with the
\nskills they need to thrive and prosper.<\/p>\n

We have introduced a new system of T level vocational training\u2026<\/p>\n

\u2026have put the first \u00a3100m into the new National Retraining Scheme\u2026<\/p>\n

\u2026and through the apprenticeship levy we are delivering 3 million high quality apprenticeships in this Parliament.<\/p>\n

But that system is paid for by employers\u2026<\/p>\n

\u2026and it has to work for employers.<\/p>\n

So today in addition to the flexibilities I announced earlier this month\u2026<\/p>\n

\u2026I can announce that for smaller firms taking on apprentices we will half the amount they have to contribute from
\n10% to 5%.<\/p>\n

In total a \u00a3695m package to support apprenticeships.<\/p>\n

Mr Deputy Speaker,<\/p>\n

As our economy evolves in the digital age\u2026<\/p>\n

\u2026so too must our tax system\u2026<\/p>\n

\u2026to ensure that it remains fair and robust against abuse\u2026<\/p>\n

\u2026and that it raises the revenues we need to fund our public services.<\/p>\n

The Employment Allowance was introduced to incentivise businesses to take on employees.<\/p>\n

But at a flat rate of \u00a33,000 per employer, it does not provide any real incentive for larger employers,
\nSo, from April 2020, we\u2019ll target it at small and medium businesses with an Employer NICs bill under \u00a3100k a year.<\/p>\n

We will also bring the treatment of capital losses for the largest companies into line with that of income losses;<\/p>\n

Mr Deputy Speaker,<\/p>\n

We re-commit today to keeping family homes out of Capital Gains Tax\u2026<\/p>\n

\u2026but some aspects of Private Residence Relief extend it beyond that objective\u2026<\/p>\n

\u2026and provide relief for people who are not using the home as their main residence.<\/p>\n

So from April 2020 we will limit Lettings Relief to properties where the owner is in shared occupancy with the tenant, and reduce the final period exemption from 18 months to 9 months.<\/p>\n

Mr Deputy Speaker,<\/p>\n

I have received representations that I should abolish Entrepreneur\u2019s Relief\u2026<\/p>\n

\u2026and put the savings towards funding our NHS commitments.<\/p>\n

But I do not believe we can have sustainable public services unless we have a dynamic economy.<\/p>\n

And encouraging entrepreneurs must be at the heart of our strategy.<\/p>\n

So I will retain the Entrepreneurs Relief\u2026<\/p>\n

\u2026but to ensure it is going to genuine entrepreneurs I will extend the minimum qualifying period from 12 months to 2 years.<\/p>\n

Mr Deputy Speaker,<\/p>\n

In the period since the last Budget\u2026<\/p>\n

\u2026we\u2019ve explored all avenues to address the cliff edge effect of VAT registration\u2026<\/p>\n

\u2026but our options are restricted by EU law.<\/p>\n

We will continue to work on this issue as our future VAT regime becomes clear over the years ahead.<\/p>\n

And in the meantime, to give small businesses certainty, and in response to representations from my HF the Member for Mid Worcestershire, the FSB and others, I will leave the threshold unchanged for a further two years.<\/p>\n

Mr Deputy Speaker,<\/p>\n

The off payroll working rules – known as IR35 \u2013 are designed to ensure fairness\u2026<\/p>\n

\u2026so that individuals working side by side in a similar role for the same employer\u2026<\/p>\n

\u2026pay the same employment taxes.<\/p>\n

Last year, we changed the way these rules are enforced in the Public Sector.<\/p>\n

But widespread non-compliance also exists in the private sector \u2026<\/p>\n

So following our consultation, we will now apply the same changes to private sector organisations as well.<\/p>\n

But after listening carefully to representations made during the consultation, we will delay these changes until April 2020\u2026<\/p>\n

\u2026and we will only apply them to large and medium-sized businesses.<\/p>\n

Mr Deputy Speaker,<\/p>\n

There is one stand-out example of where the rules of the game must evolve now if they are to keep up with the
\nemerging Digital Economy:<\/p>\n

Digital Platforms delivering search engines, social media, and online marketplaces have changed our lives, our<\/p>\n

society, and our economy\u2026<\/p>\n

\u2026mostly for the better.<\/p>\n

But they also pose a real challenge for the sustainability and fairness of our tax system.<\/p>\n

The rules have simply not kept pace with changing business models.<\/p>\n

And it\u2019s clearly not sustainable, or fair, that digital platform businesses can generate substantial value in the UK
\nwithout paying tax here in respect of that business.<\/p>\n

The UK has been leading attempts to deliver international corporate tax reform for the digital age.<\/p>\n

A new global agreement is the best long-term solution.<\/p>\n

But progress is painfully slow.<\/p>\n

We cannot simply talk forever.<\/p>\n

So we will now introduce a UK Digital Services Tax.<\/p>\n

This will be a narrowly-targeted tax on the UK-generated revenues of specific digital platform business models.<\/p>\n

It will be carefully designed to ensure it is established tech giants \u2013 rather than our tech start-ups – that shoulder
\nthe burden of this new tax.<\/p>\n

It is important that I emphasise that this is not an online-sales tax on goods ordered over the internet\u2026<\/p>\n

\u2026such a tax would fall on consumers of those goods \u2013 and that is not our intention.<\/p>\n

The Digital Services Tax will only be paid by companies which are profitable\u2026<\/p>\n

\u2026and which generate at least \u00a3500m a year in global revenues in the business lines in scope.<\/p>\n

We will consult on the detail to make sure we get it right, and to ensure that the UK continues to be the best place in the world to start and scale-up a tech business.<\/p>\n

The tax will come into effect in April 2020\u2026<\/p>\n

\u2026and is expected to raise over \u00a3400m a year.<\/p>\n

In the meantime we will continue to work at the OECD and G20 to seek a globally agreed solution.<\/p>\n

And if one emerges, we will consider adopting it in place of the UK Digital Services Tax.<\/p>\n

But this step shows that we are serious about this reform.<\/p>\n

Because, Mr Deputy Speaker, it is only right that these global giants, with profitable businesses in the UK, pay their fair share
\ntowards supporting our public services.<\/p>\n

And Mr Deputy Speaker,<\/p>\n

I am already looking forward to my call from the former Leader of the Liberal Democrats.<\/p>\n

We\u2019re updating the rules of the game\u2026<\/p>\n

\u2026but we must also make sure people play by the rules.<\/p>\n

And today we continue the work of the past eight years\u2026<\/p>\n

\u2026where we\u2019ve secured \u00a3185bn since 2010, which would otherwise have gone unpaid\u2026.<\/p>\n

\u2026with a package of measures today to further clamp down on tax avoidance, evasion, and unfair outcomes raising
\nanother \u00a32bn over the next five years.<\/p>\n

We\u2019ll make HMRC a preferred creditor in business insolvencies\u2026<\/p>\n

\u2026to ensure that tax which has been collected on behalf of HMRC – is actually paid to HMRC.<\/p>\n

We\u2019ll end the practice of purchasing services through overseas branches to avoid UK VAT\u2026<\/p>\n

\u2026and we\u2019ll crack down on insurance companies routing services through offshore territories.<\/p>\n

And we\u2019ll stop our generous R&D tax credits system being abused by re-introducing a PAYE restriction for the
\nsmall and medium sized companies scheme.<\/p>\n

[political content removed]<\/p>\n

Mr Deputy Speaker,<\/p>\n

Investing in our infrastructure;<\/p>\n

Backing the technologies of the future;<\/p>\n

Supporting British businesses;<\/p>\n

Updating our tax system for the digital age;<\/p>\n

That is how we will deliver the high-wage high-skill economy of the future.<\/p>\n

But we must also recognise that technological change will bring challenges \u2013 as well as opportunities\u2026.<\/p>\n

\u2026and there is one part of our economy that is currently confronting that challenge in spades:<\/p>\n

Our High Streets.<\/p>\n

Embedded in the fabric of our great cities, towns, and villages, the High Street lies at the heart of many
\ncommunities.<\/p>\n

And it is under pressure as never before as Britain adopts on-line shopping with greater alacrity than any other
\nlarge economy.<\/p>\n

So, if Britain\u2019s High Streets are to remain at the centre of our community life\u2026<\/p>\n

\u2026they will need to adapt.<\/p>\n

Today we support them to do so \u2013 responding to calls from across this House, especially from my RHF the Member for Putney, and my HFs the Members for Southport and Croydon South.<\/p>\n

We will provide \u00a3675m of co-funding to create a Future High Streets Fund to support Councils to draw-up formal plans for the transformation of their High Streets\u2026<\/p>\n

\u2026to invest in the improvements they need\u2026<\/p>\n

\u2026and to facilitate redevelopment of under-used retail and commercial areas into residential\u2026<\/p>\n

\u2026helping with the housing challenge\u2026<\/p>\n

\u2026and delivering much needed footfall to High Street Businesses.<\/p>\n

We\u2019ll consult on how modernisation of the Use Classes Order and CPO regime can help facilitate the
\ntransformation of the High Street;<\/p>\n

Mr Deputy Speaker,<\/p>\n

The change our High Streets face is irreversible and it will take them time to adapt to it.<\/p>\n

But I know that many small retail businesses are struggling to cope with the high fixed costs of Business rates.<\/p>\n

Since 2016 we have introduced business rates relief measures worth \u00a312bn\u2026<\/p>\n

\u2026and many of these reliefs will have benefitted High Street businesses.<\/p>\n

But today I can go further:<\/p>\n

At the next revaluation in 2021, rateable values will adjust to reflect changes in rental values.<\/p>\n

But I want to help retail businesses now.<\/p>\n

So for the next two years, up to that Revaluation, for all retailers in England with a rateable value of \u00a351,000 or
\nless, I will cut their business rates bill by one third.<\/p>\n

That\u2019s an annual saving of up to \u00a38,000 for up to 90% of all independent shops, pubs, restaurants and cafes.<\/p>\n

I will also extend the \u00a31,500 local newspaper discount for a further year:<\/p>\n

Mr Deputy Speaker, whatever the national press says, I have been assured of a warm welcome for my budget from the Royston Crow and the Keswick Reminder.<\/p>\n

Mr Deputy Speaker,<\/p>\n

Local Authorities have long been able to provide discretionary business rates relief to other bodies \u2013 but not to
\nthemselves.<\/p>\n

And so following representations from my HFs for North Cornwall and St Austell and Newquay\u2026<\/p>\n

\u2026I am pleased to announce a new mandatory business rates relief for public lavatories\u2026<\/p>\n

\u2026so that local authorities can, at last, relieve themselves.<\/p>\n

For the convenience of the House, Mr Deputy Speaker,<\/p>\n

\u2026and without wishing to get unduly bogged down in this subject\u2026<\/p>\n

\u2026this relief will extend to any such facilities made available for public use, whether publicly or privately owned.<\/p>\n

Honestly, Mr Deputy Speaker, this is virtually the only announcement in this Budget that hasn\u2019t leaked.<\/p>\n

Mr Deputy Speaker,<\/p>\n

We can\u2019t resolve the productivity challenge\u2026<\/p>\n

\u2026or deliver the high standards of living the British people deserve\u2026<\/p>\n

\u2026without fixing our housing market.<\/p>\n

In last year\u2019s Budget I launched a five-year, \u00a344bn housing programme\u2026<\/p>\n

\u2026to deliver the biggest increase in housing supply since 1970\u2026.<\/p>\n

\u2026and I abolished Stamp Duty for First Time Buyers on properties up to \u00a3300,000.<\/p>\n

121,500 First Time Buyers have already benefited from our new relief\u2026<\/p>\n

\u2026and the number of First Time Buyers is at an eleven year high.<\/p>\n

Today I am extending this relief to all first time buyers of shared ownership properties valued up to \u00a3500k\u2026<\/p>\n

\u2026and we will make this relief retrospective so any first time buyer who has made such a purchase since the last Budget will benefit.<\/p>\n

But we have more to do\u2026<\/p>\n

\u2026so I can announce today:<\/p>\n

A further \u00a3500m for the Housing Infrastructure Fund, to unlock 650,000 homes;<\/p>\n

The next wave of strategic partnerships with 9 Housing Associations which will deliver 13,000 homes across England;<\/p>\n

Up to \u00a31bn of British Business Bank guarantees to support the revival of SME housebuilders;<\/p>\n

We are consulting on simplification of the process for conversion of commercial property into new homes;<\/p>\n

And because we want to see parishes and neighbourhoods enabling more homes for sale to local people to buy, at prices they can afford\u2026<\/p>\n

\u2026we\u2019re providing funding to empower up to 500 neighbourhoods to allocate or permission land for housing\u2026<\/p>\n

\u2026through the neighbourhood planning system\u2026<\/p>\n

\u2026for sale at a discount to local people in perpetuity.<\/p>\n

I am also grateful to my RHF the Member for West Dorset for his review of build-out rates \u2013 published today.<\/p>\n

He concludes that the large housebuilders are not engaged in systematic speculative land-banking\u2026<\/p>\n

\u2026and makes several recommendations for reform of the planning system in respect of very large strategic
\nhousing sites.<\/p>\n

And we will respond in full to his report in the New Year.<\/p>\n

Mr Deputy Speaker,<\/p>\n

Meeting the productivity challenge\u2026<\/p>\n

\u2026means tapping the potential of every region and nation.<\/p>\n

Our devolution agenda is giving power back to the people\u2026<\/p>\n

\u2026and today we go further to fire-up the Northern Powerhouse, fuel the Midlands Engine and back our regions
\nacross the UK.<\/p>\n

We\u2019re increasing the Transforming Cities Fund to \u00a32.4bn<\/p>\n

\u2026and providing an additional \u00a390m to trial new models of smart transport, including \u2018on demand buses\u2019\u2026<\/p>\n

(\u2026Mr DS, which I think in our day, we used to call taxis\u2026)<\/p>\n

We\u2019re launching a competition for proposals for business led-Development Corporations;<\/p>\n

We\u2019re funding ten University Enterprise Zones;<\/p>\n

There\u2019s \u00a3115m for Digital Catapults in the North East, Northern Ireland, and the South East\u2026<\/p>\n

\u2026and the Medicines Discovery Catapult in Alderley.<\/p>\n

\u00a370m to develop the Defence and National Rehabilitation Centre near Loughborough;<\/p>\n

\u00a337m of additional development funding for Northern Powerhouse Rail\u2026<\/p>\n

\u2026and \u00a310m for a new pilot in Manchester to support the self-employed to acquire new skills.<\/p>\n

We\u2019re backing a new Special Economic Area in South Tees\u2026<\/p>\n

\u2026 and we\u2019re providing \u00a320m to further develop the plan for the critical central section of East-West rail between Oxford and Cambridge.<\/p>\n

And here in our Capital we support the delivery of a further 19,000 homes by improving the Docklands Light
\nRailway with Housing Infrastructure Fund money.<\/p>\n

Mr Deputy Speaker,<\/p>\n

The decisions announced in this Budget means by 20-21 an additional\u2026<\/p>\n

\u00a3950m for the Scottish Government;<\/p>\n

\u00a3550m for the Welsh Government.<\/p>\n

And \u00a3320m for a Northern Ireland Executive. With larger sums to come over the spending review period due to our record NHS funding.<\/p>\n

I can also announce funding for further City and Growth deals, including \u00a3150m for Tay Cities, \u00a3350m for Belfast,
\nand \u00a3120m for North Wales\u2026<\/p>\n

\u2026while negotiations progress with Ayrshire, Mid Wales and Borderlands\u2026<\/p>\n

\u2026and will begin with Moray, Derry\/Londonderry and Strabane as well.<\/p>\n

I was pleased to be able to respond to a joint request from the members for Belfast North, Belfast East, and
\nBelfast South to provide the city with \u00a32m help towards the recovery of the city centre following the fire at the iconic Bank Buildings\u2026<\/p>\n

\u2026and we\u2019re moving also forward with schools projects in Northern Ireland worth \u00a3300m, to increase the provision of shared and integrated cross community education.<\/p>\n

And we\u2019ve agreed to the establishment of a working group to progress plans for short haul APD devolution.<\/p>\n

To continue to support Scotland\u2019s oil and gas industry \u2026<\/p>\n

\u2026we will maintain headline tax rates at their current levels\u2026<\/p>\n

\u2026and launch a call for evidence on our plan to make Scotland a global hub for decommissioning.<\/p>\n

And finally, to support our vital fishing industry as we leave the EU\u2026<\/p>\n

\u2026we\u2019ll invest \u00a312m over the next three years in cutting edge fisheries technology and safety measures.<\/p>\n

[political content removed] Delivering for all our proud nations\u2026<\/p>\n

\u2026and for all our English regions.<\/p>\n

Mr Deputy Speaker,<\/p>\n

We are driven by a determination to ensure that the next generation\u2026<\/p>\n

\u2026will be more prosperous than ours.<\/p>\n

But we cannot secure our children\u2019s future unless we secure our planet\u2019s future\u2026<\/p>\n

So at this Budget I take further action with a package of measures, set out in the Budget Red Book<\/p>\n

[political content removed]<\/p>\n

\u2026so I will provide \u00a310m to deal with abandoned waste sites\u2026<\/p>\n

[political content removed]<\/p>\n

Mr Deputy Speaker,<\/p>\n

I also said at the Spring Statement that we must become a world leader in tackling the scourge of plastic littering
\nour planet and our oceans.<\/p>\n

Billions of disposable plastic drinks cups, cartons, bags and other items are used every year in Britain\u2026<\/p>\n

\u2026convenient for consumers\u2026<\/p>\n

\u2026but deadly for our wildlife and our oceans.<\/p>\n

Where we cannot achieve re-use, we are determined to increase recycling\u2026<\/p>\n

\u2026 so we will introduce a new tax on the manufacture and import of plastic packaging which contains less than
\n30% recycled plastic\u2026<\/p>\n

\u2026transforming the economics of sustainable packaging.<\/p>\n

We will consult on the detail and implementation timetable.<\/p>\n

I have also looked carefully at the case for introducing a levy on the production of disposable plastic cups\u2026<\/p>\n

\u2026not just for coffee, but for all types of beverage\u2026<\/p>\n

\u2026 I have concluded that a tax in isolation would not, at this point, deliver a decisive shift from disposable to
\nreusable cups across all beverage types.<\/p>\n

I will monitor carefully the effectiveness of the action the takeaway drinks industry is already taking to reduce single-use
\nplastics\u2026<\/p>\n

\u2026and I will return to this issue if sufficient progress is not made.<\/p>\n

In parallel, my RHF the Environment Secretary will look to address this issue through the reform of the Packaging
\nProducer Responsibility scheme.<\/p>\n

Working across government, this ambitious package reflects our determination to lead the world in the crusade to rid the oceans and the environment of plastic waste.<\/p>\n

Mr Deputy Speaker,<\/p>\n

It\u2019s only by dealing with our debts and tackling the long term challenges our country faces, that we can sustainably
\nraise wages and living standards.<\/p>\n

But I recognise that many people are feeling pressure on their household budgets now.<\/p>\n

And because the hard work of the British people is paying off I am pleased to be able to announce today a series of measures to help families across Britain with the cost of living.<\/p>\n

Mr Deputy Speaker,<\/p>\n

Turning first to duties\u2026<\/p>\n

\u2026as my RHF the PM has already announced\u2026<\/p>\n

\u2026we will freeze fuel duties for the ninth successive year\u2026<\/p>\n

\u2026bringing the total saving to the average car driver to over \u00a31,000\u2026<\/p>\n

\u2026and to the average van driver to over \u00a32,500\u2026<\/p>\n

The tobacco duty escalator will continue to rise at inflation plus 2%\u2026<\/p>\n

Mr Deputy Speaker,<\/p>\n

I have received numerous representations from my H and RHFs on one particular subject\u2026<\/p>\n

\u2026and in response I will be freezing beer and cider duty for the next year\u2026<\/p>\n

\u2026keeping the cost of beer down for patrons of the Great British Pub<\/p>\n

And, in response to the concerted lobbying of my Scottish Conservative colleagues\u2026<\/p>\n

\u2026I will also freeze duty on spirits\u2026<\/p>\n

\u2026so that we can all afford to raise a wee dram to Ruth Davidson on the arrival of baby Finn\u2026<\/p>\n

\u2026saving 2p on a pint of beer, 1p on a pint of cider, and 30p on a bottle of Scotch or gin compared to the inflation
\nassumption in the OBR forecast\u2026<\/p>\n

\u2026while proceeding with the usual RPI increases on wine.<\/p>\n

As promised at Autumn Budget 2017, so-called white ciders will be taxed at a new higher rate.<\/p>\n

From October next year, I can confirm that we will increase Remote Gaming Duty on online games of chance, to 21%\u2026<\/p>\n

\u2026in order to fund the loss of revenue as we reduce FOBT stakes to \u00a32.<\/p>\n

From April 2020 APD will be indexed in line with inflation, but there will be no change in the duty rate for short-
\nhaul flights.<\/p>\n

And the new 26-30 railcard, which I announced at Budget last year, will be available across the network by the end of the year\u2026<\/p>\n

\u2026saving up to 4.4 million young people 1\/3 off their fares.<\/p>\n

And we launch a package of measures on affordable credit and support for credit unions, which is set out in detail in the Red Book.<\/p>\n

Mr Deputy Speaker,<\/p>\n

The switch to Universal Credit is a long overdue and necessary reform\u2026<\/p>\n

[political content removed]<\/p>\n

This is not just a welfare measure\u2026<\/p>\n

\u2026it is a major structural reform to our economy that will help to drive growth and employment in the years
\nahead\u2026<\/p>\n

\u2026and I pay tribute to my RHF the Member for Chingford without whose tenacity Universal Credit would never
\nhave seen the light.<\/p>\n

But I recognise the genuine concerns among many H and RHFs about two issues:<\/p>\n

First, the implementation of this programme.<\/p>\n

It is an enormous undertaking\u2026<\/p>\n

\u2026and we have always been clear we want the migration process to be as smooth as possible.<\/p>\n

I have already delivered nearly \u00a33.5 billion to help with the transition\u2026<\/p>\n

\u2026including a \u00a31.5bn package of support at last year\u2019s Budget.<\/p>\n

Today I can go further\u2026<\/p>\n

\u2026with a package of additional measures worth a \u00a31 billion over 5 years\u2026<\/p>\n

\u2026enabling my RHF Secretary of State for Work and Pensions to introduce additional protections as existing
\nwelfare claimants move onto UC\u2026<\/p>\n

\u2026and she will announce details when she introduces the Managed Migration Regulations later this year.<\/p>\n

Secondly, I have heard the concerns about the rates and allowances within the design of the system.<\/p>\n

In my first Autumn Statement I reduced the UC taper rate from 65% to 63%.<\/p>\n

And today I can tell the House I am increasing work allowances in Universal Credit by \u00a31,000 per annum\u2026<\/p>\n

\u2026at a cost of \u00a31.7bn annually once roll-out is complete<\/p>\n

\u2026benefitting 2.4 million working-families-with-children and people with disabilities by \u00a3630 per year.<\/p>\n

Mr Deputy Speaker,<\/p>\n

Universal Credit is here to stay, and we are putting in the funding it needs to make it a success.<\/p>\n

Because [political content removed]- we believe that work should always pay.<\/p>\n

Mr Deputy Speaker,<\/p>\n

Delivering higher wages for those in work is core to my mission as Chancellor\u2026<\/p>\n

Under [political content removed] the poorest 20% have seen their real incomes grow faster than the richest 20% \u2026<\/p>\n

\u2026and the proportion of jobs that are low paid is at its lowest level for 20 years\u2026<\/p>\n

\u2026thanks to the National Living Wage introduced [political content removed] in 2016.<\/p>\n

From April the National Living Wage will rise again, by 4.9%, from \u00a37.83 to \u00a38.21\u2026<\/p>\n

\u2026handing a full-time worker a further \u00a3690 annual pay increase\u2026<\/p>\n

\u2026and taking his or her total pay-rise, since the introduction of the National Living Wage, to over \u00a32,750 a year.<\/p>\n

We also accept the Low Pay Commission\u2019s recommendations on National Minimum Wage rates\u2026<\/p>\n

\u2026supporting young people and apprentices with further above inflation increases.<\/p>\n

The current remit of the LPC is for the National Living Wage to reach 60% of Median Earnings by 2020, subject to
\nsustained economic growth.<\/p>\n

But next year we will need to give the LPC a new remit beyond 2020.<\/p>\n

We will want to be ambitious\u2026<\/p>\n

\u2026with the ultimate objective of ending low pay in the UK\u2026<\/p>\n

\u2026but we will also want to be careful \u2013 protecting employment for lower paid workers.<\/p>\n

So we will engage responsibly with employers, the TUC, and the LPC itself over the coming months\u2026<\/p>\n

\u2026gathering evidence and views\u2026<\/p>\n

\u2026to ensure we get this right – and I will confirm the final remit at the Budget next year.<\/p>\n

But as well as making work pay\u2026<\/p>\n

\u2026we want working people to keep more of the money they earn.<\/p>\n

When we came into office the personal allowance stood at \u00a36,475\u2026<\/p>\n

\u2026and the Higher Rate Threshold at \u00a343,875.<\/p>\n

In April, I raised the personal allowance to \u00a311,850\u2026<\/p>\n

\u2026and the Higher Rate Threshold to \u00a346,350\u2026<\/p>\n

\u2026as steps towards our manifesto commitments of \u00a312,500 and \u00a350,000 respectively by 2020.<\/p>\n

Those manifesto commitments were, of course, made before our new funding pledge to the NHS\u2026<\/p>\n

\u2026and I have received representations that the least painful way for taxpayers to contribute to increased NHS
\nfunding\u2026<\/p>\n

\u2026would be to abandon our manifesto pledges and freeze the Personal Allowance and the Higher Rate Threshold
\nat current levels.<\/p>\n

But let me reassure the House that \u2013 [political content removed]- my idea of ending austerity does not involve increasing people\u2019s tax bills.<\/p>\n

And the improvement we have delivered in the public finances means that, based on the OBR\u2019s forecast,
\npublished today\u2026<\/p>\n

\u2026I do not need to do so.<\/p>\n

I can therefore confirm today that I will meet our manifesto commitments in April 2020.<\/p>\n

Raising the Personal Allowance to \u00a312,500 and the Higher Rate Threshold to \u00a350,000.<\/p>\n

Before indexing both in line with inflation from 21-22.<\/p>\n

But our careful management of the economy allows me to go further:<\/p>\n

So I will raise both the Personal Allowance and the Higher Rate Threshold to these levels from April 2019\u2026<\/p>\n

\u2026delivering our manifesto commitments one year early.<\/p>\n

A tax cut for 32 million people\u2026<\/p>\n

\u2026\u00a3130 in the pocket of a typical basic rate taxpayer\u2026<\/p>\n

\u2026meaning since 2015 we\u2019ve taken 1.7m out of tax altogether\u2026<\/p>\n

\u2026and nearly 1m out of higher rate tax.<\/p>\n

\u2026And Mr Deputy Speaker,<\/p>\n

As a result of the announcements I have made today a single parent, receiving Universal Credit, and working 25 hours a week on National Living Wage will benefit by \u00a3890 next year.<\/p>\n

The hard work of the British people paying off \u2026<\/p>\n

\u2026in hard cash in their pockets.<\/p>\n

We have turned an important corner<\/p>\n

Now we must pull together\u2026<\/p>\n

\u2026to build the bright, prosperous future that is within Britain\u2019s grasp\u2026<\/p>\n

\u2026if we choose to seize it:<\/p>\n

Embracing change\u2026<\/p>\n

\u2026not hiding from it\u2026<\/p>\n

\u2026building on the inherent strength of the British economy\u2026<\/p>\n

\u2026and the indomitable spirit of the British people.<\/p>\n

Mr Deputy Speaker\u2026<\/p>\n

[political content removed]<\/p>\n

\u2026austerity is coming to an end \u2013 but discipline will remain.<\/p>\n

This Government is delivering on the British people\u2019s priorities\u2026<\/p>\n

\u2026supporting our public services\u2026<\/p>\n

\u2026investing in Britain\u2019s future\u2026<\/p>\n

\u2026keeping our taxes low<\/p>\n

and getting our debt down\u2026<\/p>\n

[political content removed]<\/p>\n

We are at a turning point in our history\u2026<\/p>\n

\u2026and we must resolve to go forwards, not backwards\u2026<\/p>\n

[political content removed]<\/p>\n

\u2026and work together to build a Britain we can all be proud of.<\/p>\n

I commend this Statement to the House.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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