1 Madame Deputy Speaker thank you.
2 This is a budget for the working people of Britain for British businesses big and small delivered at a time when global uncertainties and pressures a swirling worldwide and hitting people here at home.
3 A budget built on fiscal discipline which matches immediate action today with clear direction for the future.
4 First by giving Britain some breathing space on the cost of living and the cost of business Second by backing the enterprise of British business to unleash innovation and growth in every postcode and third by tackling the big challenges on energy, on national security, on public service procurement and transformation and on housing.
5 In this budget I will set out the new approach this administration is taking led by the vision of our new Prime Minister demonstrated in our first 100 days demonstrated in our first 100 days carried through today's budget the 10 year plan for Britain and the spending review next year.
6 To steer us through the global economic storms today to chart a new course for Britain in the years ahead to give people fresh hope for Britain's future.
7 Madame Deputy Speaker it's an honor to stand here as the chancellor of the Exchequer to deliver my first budget.
8 And I had hope that I might be the most closely watched member of the government this week until the Prime Minister went on gogglebox.
9 But at the outset but at the outset of this budget statement I want to pay tribute to my predecessor my right honourable friend the member for Leeds West and Pudsey Britain's first ever female chancellor after 800 years.
10 She brought fiscal discipline to this country she took she took the decisions required to boost investment cut Enclist waiting list order colleagues who are chuntering will need a lot of stamina we've got many hours to go so let's keep the chamber calm chancellor she took the decisions required to boost investment to cut wake NHS waiting lists and to lift half a million children out of poverty and I also want to thank my outstanding team of Treasury ministers and treasury officials and the Office for Budget Responsibility for Producing today's forecasts.
11 Madame Deputy Speaker analysts like to speak of economic headwinds but what we face today a global economic storms.
12 With trade tensions acting as a drag on global growth and Putin's illegal of invasion of Ukraine approaching now the end of its fifth year.
13 The OBR sets out that the war in the Middle East is a key driver affecting their forecasts today.
14 And this government continues to work with our allies to end the conflict and restore shipping through the Strait of Hormuz.
15 Madame Deputy Speaker we did not want this war and we rejected calls from the leader of the opposition to jump to jump two footed into it it's a war that has driven up costs driven up costs on British families and on British businesses inflation which was dutiful earlier this year to the 2% target has now risen.
16 Driven by higher oil and gas prices oil is up from around $70 a barrel to well over $100 and gas prices have nearly tripled since February.
17 For families this means higher prices at the pump higher energy bills higher mortgages for businesses it means higher running costs and more expensive business loans and the impact is felt in public finances too.
18 Driven by the conflict in the Middle East government borrowing costs across the G7 are reaching highs not seen for decades and in today's forecast the OBR predict that we will spend £14 billion more on debt interest this year.
19 Those are the storms we face we cannot wish them away we must choose the course we steer through them.
20 And fiscal discipline is my first commitment as Chancellor.
21 More than ever it underwrites every promise this government makes to the British people.
22 In the budget today I meet the fiscal rules the stability rule that day-to-day spending must be covered by tax receipts and the investment rule that government debt defined as public sector net financial liabilities must be falling as a percentage of GDP.
23 This year for the first time I must meet these rules in the third year of the forecast and I do.
24 My plans continue to reduce government borrowing so we spend less on debt interest and more on the priorities of the British people.
25 First the stability rule in the budget today I've chosen to use some of the headroom established last year to absorb the impact of the Iran war.
26 To protect the economy and to protect family budgets.
27 My choices in this budget mean I've kept the labour manifesto promise not to raise tax on working people and I've rejected.
28 And I have Mr. Bower you sitting far too close to me to be that noisy Chancellor and I've also rejected broad based tax rises or slashing public services recognizing that families and businesses need this breathing space.
29 Madame Deputy Speaker the OBR confirms today that headroom against the stability rule is £15 billion in 2930 before rising to £22 billion in 203031 that is what a buffer is for use it when you need it rebuild it when you can. And so despite the global challenges this budget puts us on track to eliminate the current budget deficit and get Britain's finances into the black within three years.
30 Madame Deputy Speaker is a Labour government last year we cut borrowing to its lowest level in six years.
31 From 5.1 to 4.4% of GDP I continue that work today in today's forecast Borrowing falls to 4.2% this year 3.4 next year 2.9 in 2829 2.1 in 2930 and 1.8 in 2030 31 and 3132.
32 Our debtors a percentage of GDP is 83.2% this year 83.8 next year and in 2028 29 before falling to 83.1% in 2930 82.3 in 3031 and 81.7 in 3132.
33 It is because of our labour decisions it is because of our labour plans that the international monetary fund has said that the UK and I quote now stands out as a country where stands out as a country where I quote action to reduce debt and deficit has been taken decisively.
34 They project our UK deficit will be the lowest in the G7 by 2029.
35 Madame Deputy Speaker the last time the IMF called the UK standout was when Liz Truss crashed the economy.
36 A new book.
37 Says she could have taken the British people to Mars but in reality what she achieved in government with help from the shadow chancellor was blowing a big black hole in the budget.
38 That is the difference between laboring government and a conservative government before us.
39 Madam Deputy Speaker.
40 During this year of global economic shocks forecasters predicted that the UK economy would slow down those predictions of gloom are about as accurate as the predictions of who would be the chancellor.
41 But Madame Deputy speaker.
42 Britain is defying expectations in the first half of this year our economy was the fastest growing in the G7 alongside the US.
43 That is testament to the British people the innovators the business leaders and the workers on the front line and its testament to the labor decisions taken over the last two years.
44 Government investment up business investment up productivity up real wages up more since the election than in the first 10 years of the previous conservative governors.
45 I will never be complacent but these are signs of resilience in the UK economy.
46 Madame Deputy Speaker three months ago the Bank of England upgraded their forecasts for UK growth this year.
47 Two weeks ago the IMF did the same and today the OBR has upgraded its forecast to 1.2% this year.
48 Followed by 1% next year 1.1.6 1.6% in 2028 1.8% in 2029 1.7% in 2030 and 1.6% in 2031.
49 Yes there are real challenges ahead but Britain has beaten the forecasts this year and with the action I'm taking today I believe Britain can beat the forecasts again.
50 Madame Deputy Speaker despite the resilience of our economy I know that people are under pressure too many people feel this country isn't working well for them and in particular households and businesses face challenges from rising energy costs due directly to the conflict in the Middle East.
51 In the face of that what matters is how we respond as a government.
52 And my choice in the budget today is to give families and businesses some breathing space now and to begin the radical reform of energy to reduce bills in the future.
53 Last week my right honorable friend the energy secretary approved.
54 Okay.
55 All right.
56 The long way to get Dr.
57 Luke Evans you will have to write yourself a prescription just to calm down Chancellor at least they're still awake.
58 My right honorable friend the energy secretary she approved the Jackdaw gas field boosting our energy security this will protect hundreds of jobs and adding an estimated 2.9 billion to the UK economy a pragmatic common sense decision and alongside that I launched a new energy wealth fund for the UK today I'm setting a new course on energy to get UK energy costs down in line with Europe. From this point our Labour government priority is first and foremost cheaper energy with clean power key to achieving this.
59 Is possible because of the progress we've made towards clean power over the last two years and this government remains unshakably committed to net zero by 2050.
60 This will demand deep reform of our energy system and starting at the budget today carried through the 10 year plan into the months and the years ahead.
61 Madame Deputy Speaker for many years under conservative governments policy costs were simply loaded onto household bills through levies today I'm putting an end to that we'll introduce a new cost control framework to drive down all aspects of energy bills and 01 I will scrap the upcoming gas shippers obligation and levy to fund hydrogen projects and instead back those projects directly from government.
62 And I'm making further big build are making further big changes to bring bills down in the long term.
63 First on clean power generation.
64 This government will only buy and build new projects when they lower bills and when they can connect to the grid.
65 Second we will further break the grip of international gas prices on our bills by moving more of our old renewables onto fixed price contracts and third we will build cheaper faster grid connections through GB grid and reform the complex web of institutions that govern the system.
66 This is how we deliver radical change Britain needs on energy it won't happen overnight and so I'm taking immediate action to give families and businesses breathing space in the here and now in the first week of this new government we took VAT off electricity for 29 million households 02 today I'm extending that VAT cut through the winter and spring to July taking 50 pounds off the annual price cap and for business 03 our new British industrial competitiveness scheme will take 25% off electricity bills for 10,000 firms at the heart of British industry it will go live in April and I confirm that we'll make backdated payments for energy costs this year too.
67 Next year working with my right honourable friend the energy secretary will go further to make bills fairer gas standing charges these standing charges cost people over £100 a year regardless of how much gas they use so from next year through off gem 04 we will remove standing charges from household gas bills and we will set out similar reforms to follow for electricity bills Madame Deputy Speaker let me say this to families at home I know that with the conflict in the Middle East rising energy bills are a real worry I know that people look to government at times like this not to solve all their problems but to give them a bit of breathing space so today I'm taking one further step this winter for 20 million households in council tax bans a to D 05 I'm announcing a £100 energy payment for households .
68 Paid directly into people's bank accounts to deal with rising energy bills that's a 2.6 billion pound scheme to take the pressure off in the coldest months and see people through to the spring.
69 The Scottish, Welsh and Northern Ireland governments will receive their share of this funding and I call on them to do the same and give people of all nations in the UK breathing space on their energy bills this winter.
70 Madame Deputy Speaker 50 pounds off VAT 100 pounds of council tax for this winter two tax cuts for next year fairer bills and for the long term radical reform of the energy market to produce cheaper power breathing space now hope for the future delivered to the British people by this Labour government.
71 Let him deputy speaker.
72 For millions of people the cost of living and the cost of doing business are the same.
73 The home is the office the van is the family car Earlier this year the government extended the 5P cut to fuel duty and slash red diesel to its lowest rate in over 20 years.
74 With the war in the Middle East still driving high fuel prices 06 I'm extending these tax cuts for motorists through the winter and spring to July .
75 Supporting households hauliers and farmers and for anyone who relies on their car for work from care workers to engineers 07 I'm increasing the higher mileage rate from 25p to 30p per mile from 25 to 35p per mile and I'm making permanent the increase to the standard mileage rate introduced earlier this year.
76 And in this budget I'm acting on other costs too.
77 To help with the weekly shop 08 I'm suspending tariffs on over 100 supermarket products to keep prices down .
78 For pensioners and delivering the new pension tax allowance so that 09 pensioners with income of up to the value of the full new state pension will not pay income tax in this parliament .
79 Forex mine workers 10 I'm guaranteeing that every penny of the pension fund surplus now goes to miners I know the job's not done and I will go on to ensure the full transfer of the guarantor's fund for carers 11 I'm getting rid of the cliff edge on earnings so that people don't lose their entire carers allowance when they earn a penny over that threshold and for 2.3 million of our lowest paid workers 12 I'm increasing both the national minimum wage and the national living wage by 3.9%
80 Madame Deputy Speaker I know that for families the worst thing is feeling that your kids are missing out even on little things because money is tight so today I'm announcing 13 £15 million for organization like Dolly Parton's imagination library and the book trust who give books to children I've heard calls for pay transparency on job adverts to close the gender pay gap and we will act soon to make sure women are paid and promoted fairly the Slabour government is determined to make the economy work better for all families and so I've listened to representations from colleagues across the house about paternity leave and I'm making a down payment on change today.
81 And as a mark of respect for their role 14 I will make self-employed fathers and partners eligible for paid parental leave for the first time .
82 Madame Deputy Speaker since day one I've said that I'll be a chancellor who champions the small British firms that give character to our communities the bakeries, the cafes, the hair salons they make the places that we live and work the places we love and I want these businesses to invest, to recruit to expand. And so today I'm taking action to support our high streets.
83 In the first week of this government 15 we cut 20% off business rates for pubs, clubs and music venues from April next year.
84 And I've heard calls from members across this house and a call from one member in particular the right honorable member for the member for Makerfield. And so 16 I'm increasing the threshold for small business rate relief for retail hospitality and leisure businesses from £12,000 to £18,000 .
85 That means 70,000 more businesses, I'm not just cutting their rates and taking them out of paying business rates altogether.
86 That means half of our shops, restaurants and gyms pay no business rates at all.
87 And for all other businesses in these sectors 17 I will freeze their rates in real terms so that none face an above inflation rise for the next two years.
88 Madam Deputy Speaker to pay for this support for our high streets and raising taxes on gambling.
89 18 By increasing machine games duty from 20% to 25% for higher stakes machines whilst protecting pubs and seaside arcades.
90 19 I will carve out adult gaming centers and vape shops from business rates reliefs and extend the business rates transitional relief supplement for another two years and 20 I will strengthen the requirements for online marketplaces so that sellers cannot avoid paying VAT when they sell online .
91 Deputy speaker for those who feel like celebrating tax cuts for our high streets and providing a 21 £10 million alcohol duty relief for around 2,000 small British brewers and British side of acres.
92 Madame Deputy Speaker breathing space now fresh hope for the future delivered to the British people by this Labour government.
93 Madame Deputy Speaker I've made my commitment to fiscal control clear and every policy in this budget is fully funded.
94 I begun by making sure that people who pay the tax they owe when they owe it and by closing loopholes in our tax system.
95 First 22 I'm giving HMRC funding to improve compliance and stronger powers to collect overdue tax from those who can clearly afford to pay but ignore repeated contact.
96 And I'm reforming the administration of self-assessed income tax from 2029 bringing more of these taxpayers in line with the majority so that they make smaller more regular payments instead of facing large bills that are often harder to pay.
97 Second 23 I'm changing outdated rules so that people taking profits out of their companies are taxed consistently .
98 And I will protect the treatment of genuine commercial transactions and families passing their businesses down to the next generation Third 24 I'm modernizing the tax treatment of investment by foreign sovereigns . This will bring UK rules more in line with other investment and other nations.
99 While remaining still one of the world's most generous regimes in the world.
100 And fourth 25 I will resolve the question of VAT for larger taxi companies ensuring they play by the same rules no matter where they're located while still protecting smaller local firms.
101 Madame Deputy Speaker providing support for British families and businesses has meant raising some tax to meet my commitment to fiscal discipline.
102 I've done this in a balanced way protecting the incentives for business investment and the incentives and income from work.
103 I'm maintaining full expenses in corporation tax for eligible assets.
104 For other assets I'll provide greater upfront relief for new investment 26 increasing the main first year allowance from 40% to 50% while reducing the main writing down allowance rate from 14% to 12% and 27 reducing the threshold for business asset disposal relief in capital gains tax from £1 million to £500,000 meaning no change for 3 and 4 claimants.
105 And 28 I'm increasing the rates on tax on income from property and savings by a further 2 percentage points from April 2027 with no change to tax on income from dividends and no change on tax to income from employment.
106 Madam Deputy Speaker 88% of people will pay no more tax on their savings and I'm taking a new approach today to encourage people on ordinary incomes to save and to invest.
107 29 I will not go ahead with the cut to the tax free amount that people can put into a cash ISA . The limit will stay at £20,000 per year tax free for people of all ages and to make investment more accessible. I will work with the sector to create a new starter ISA to reward first time investors.
108 Finally let me turn to banks.
109 Our world leading banks make a huge contribution to this country.
110 In the tax they pay, in the jobs industry and investment they support.
111 As Chancellor I want to say directly to our banks.
112 I celebrate and I am grateful for the role that you play.
113 And amid and amid the global economic storms I am looking to our banks to help fund breathing space for British families.
114 And so 30 banks will pay an extra 3% on the bank surcharge . This will be time limited to pay for immediate support on energy bills starting in January entering 15 months later.
115 I have made my choice at this budget.
116 Asking a bit more of our banks to support ordinary people raising taxes on gambling to support good growth on every high street. And so I challenge the leader of the opposition. Does she support today our support for British families and British firms? And does she back the action we are taking to pay for it?
117 Madam Deputy Speaker?
118 The only way we keep Britain's families and Britain's finances secure for the long term is an economy that is growing strongly.
119 And our country is one of the most innovative in the world. We have top ranking universities, vibrant startups and deep capital markets.
120 Just today I can announce over a billion pounds of new life sciences investment from cadaver, from vertex and connovac backed by almost 70 million pounds of government funding and support over 1,000 jobs.
121 And I can announce that Rolls Royce will develop their next generation of turbine engine technology here in the UK in partnership with this government, a 2.5 billion pound investment supporting thousands of jobs across the Midlands Bristol and the UK.
122 Madame Deputy Speaker I want to build on our strengths to unleash the innovation power of Britain.
123 To drive competition and raise profits in British business.
124 Drawing a line on the costs holding business back with stronger public control as I've done today on energy. Proudly backing Britain's entrepreneurs to succeed and unlocking the potential of every part of this country with a new wave of devolution.
125 Madame Deputy Speaker, the biggest barrier to fast growth firms here in Britain is investment here in Britain.
126 In today's budget I'm boosting investment through our public financial institutions. 31 A further 20.4 billion for the National Wealth Fund and the British Business Bank over the coming years supporting 140,000 jobs.
127 And I'll work with pension providers, with asset managers and with a wider industry to accelerate more private investment into Britain's innovative fast growth firms.
128 We will prevent regulation from holding back investment, by 32 removing regulation and tariffs worth 800 million pounds to business .
129 We will legislate for a regulatory carve-out so that innovative products like drones and medicines can be safely tested and rapidly scaled and I'm reestablishing the better regulation executive to cut out dated regulations and admin burdens on business and on workers scrapped by the Tories reestablished by this Labour government.
130 And I'm determined that we use public procurement to back British businesses, to buy British goods and promote British exports.
131 So I'm expanding challenge led procurement just as I did in defence so government can be the first customer for innovative firms and I'm developing a new definition of UK supplier.
132 To identify the companies creating genuine wealth genuine investment and jobs here in Britain.
133 Madame Deputy Speaker.
134 Mr Cartridge I think you spoke more words and the chancellor joined this statement so let's cry.
135 Miss.
136 Atkins did not leave that.
137 Chancellor.
138 Prem Deputy Speaker thank you.
139 Nowhere is the necessary role for the state clearer than in artificial intelligence.
140 To forge a British way to seize opportunities and guard against the risks that is based on security we're already world leaders in AI safety and security which 33 today's budget backs with an extra half a billion pounds and it is based on sovereignty.
141 With our first of its kind sovereign AI unit.
142 Protecting UK interests by channeling government investment into strategic British AI firms backed today with another 140 million pounds. And to ensure our most sensitive data stays under British control. I'm setting out a new deal for data centers in the UK.
143 When the NHS uses AI to treat patients, we want that data here.
144 When our armed forces UA use AI to keep us safe we want that data here.
145 So here's the deal.
146 And today 34 launching a new British data center covenant with strict tests that data centers must meet to invest in local communities, create local jobs and protect local water supplies.
147 In return critical data centers will get the grid connections they need and where necessary be allowed to build onsite generation while they wait.
148 Built on sovereignty and security, I want to ensure that the British people can benefit from the huge potential upsides of AI. With the new AI challenge prize to find innovative uses for AI in public services and 35 the union learning fund to back workers . This is how Britain leads on AI secure, safe and working for the British people.
149 Madame Deputy Speaker let me turn to enterprise.
150 Britain does not lack great entrepreneurs.
151 Too often we invent technologies the world wants here in the UK and then see the jobs and the profits go somewhere else.
152 High growth firms.
153 Make up less than 1% of small and medium sized businesses and they generate more than half the output.
154 From the startups of today to the scale ups of tomorrow to the billion pound companies of the 2030s, I want to see them succeed and stay in Britain.
155 So for those just starting out and 36 tripling the trading allowance , the amount you can earn from a new venture tax free from £1,000 to £3,000.
156 37 I'm launching a new young entrepreneurs allowance which will cover a year of living costs for young founders while they turn their ideas into businesses.
157 And as recommended by the women in Take Task Force, I'm also announcing a new scale up program to support female founders and the British business bank will double its commitments to women led businesses and funds to £200 million.
158 We need to get the best talent into our fast growth firms and so I'm reforming skilled worker visas and non-compete clauses in contracts.
159 And so that people who help build one successful company can move easily onto the next.
160 And building.
161 On our world leading EMI scheme 38 today I'm launching EMI 2 doubling the generosity of the company share option plan so more companies can hire and retain top talent as they grow.
162 Madame Deputy Speaker let me say this to the men and women building their businesses in Britain.
163 I know starting a company takes, I know starting a company means taking a risk.
164 Often leaving a secure job and build something that there's no guarantee will work.
165 And I believe that when business founders take that risk build an exceptional company create wealth for Britain we should recognize that success and keep those people here to invest again.
166 That is why today 39 I'm announcing a Founders Relief, a brand new relief in capital gains tax , a 10% rate on lifetime gains up to £10 million for the founders of our most successful firms.
167 Madame Deputy Speaker. This is how we make Britain the place where the companies of the future are built. Entrepreneurs backed by this budget investment backed by this budget talent backed by this budget innovation backed by this budget growth backed by this budget and delivered to the British people by this Labour government.
168 Madame Deputy Speaker when I talk about unleashing Britain's innovation power I mean in every part of Britain.
169 That's why we reformed the Treasury's investment manual the Green Book so that we can invest in the potential of every town and city.
170 That is what I do today.
171 In the West Midlands 40 £10 million for a new market hall in Stafford in the southwest £10 million for Bristol's Temple Quarter and £3 million to help Plymouth's young people get jobs in defence. In the east of England new access to government borrowing for the Cambridge Development Corporation in the north £50 million to upgrade the Leeds College of Building £10 million for berries indoor market 20 million to restore Liverpool's Little Woods building and £3 million for a tech company incubator in the Don Valley. And I can announce that we will hold the next international investment summit in Gateshead in the spring.
172 Madame Deputy Speaker the Divolve governments will receive equivalent funding for the measures in this budget.
173 And today I'm also investing directly in high growth industries in Scotland, Wales and Northern Ireland. In Wales 2.5 million for a science park in North Wales 11 million for the Aberraven Bridge 30 million for the Cardiff Parkway station.
174 In Scotland 18 million for advanced chip design led by Edinburgh University 6 million for Glasgow Scottish event campus and in Northern Ireland 7.5 million for AI and cyber in Belfast I'm sorry to interrupt the Chancellor again Mr Holmes just like last year your voice is carrying far too heavily across the chamber. And the member and the member for Bridlington on the world promised me and his young daughter this morning on the way to work that he would behave. He has let himself down and his daughter down.
175 Chancellor.
176 Madame Deputy Speaker all power to your elbow.
177 Madame Deputy Speaker London is the UK's economic powerhouse but if our other great cities match their counterparts in France and Germany growth in this country would be transformed. And local leaders shouldn't have to come cap in hand to Whitehall to build a new tram or a new concert hall.
178 And when those projects lead to growing local companies and rising local incomes, it should be those same areas who keep the proceeds.
179 This radical rewiring of the state is a dual mission.
180 Led by the treasury and number 10 North.
181 In today's budget 41 I'm announcing new good growth funds for mayors and incubator capital for areas without mayors.
182 I'm announcing flexible funding to invest in local economies boosted by a further 1.5 billion pounds of devolved loans for mayoral authorities.
183 Funds that will back projects like the new Black Country metric extension led by the mayor of the West Midlands or the urban regeneration in Gatesside Gateshead Quayside led by the mayor of the Northeast.
184 And in my home region the reopening of Doncaster Airport led by the Mayor of South Yorkshire.
185 Madame Deputy Speaker this is Unfinished Business for me.
186 As the Treasury Minister and the last Labour government I was proud to help create the regional development agencies. They delivered economic growth, local regeneration before they were axed in 2010 by the Tory Lib Dem Coalition.
187 But there is a further step, there is a further step we never took.
188 The most radical act of devolution in a generation, the devolution of tax revenues. That is the step I take today. Alongside this budget a roadmap for fiscal devolution.
189 For the first time I'm making the commitment that 42 100% of business rates will be retained locally by the end of the decade . So if local leaders help businesses to start and grow more of the rates they pay will stay in that area.
190 From next year 20% of business rates revenues will go to Mayor's.
191 And from 2028 a share of income tax receipts will go to Mayor's as well.
192 Also from 2028 Mayors and other strategic authorities will have 43 new powers to introduce an overnight visitors levy .
193 Taken together these are long term funding streams they can be used to back investment into big local infrastructure.
194 So that more of the money that is raised locally can be invested and spent locally spent on projects like the Trent Sports District led by the mayor of the East Midlands and the Bakerloo line extension led by the mayor of London.
195 Madame Deputy Speaker new powers to the people who know their areas best not sentimentality but supply side economics. The biggest wave of devolution in a generation driving good growth in every postcode delivered to the British people by this Labour government.
196 Madame Deputy Speaker I decided on an early budget to give the country a bit of breathing space.
197 And to provide stability and direction in the face of speculation.
198 We'll continue to map out that direction for Britain through the Prime Minister's 10 year plan and the spending review.
199 Madame Deputy Speaker the Labour Party is the party of public services.
200 Since 2024 we've rejected austerity. We've been rebuilding our public services with over 40 billion pounds a year of extra day-to-day spending.
201 We're making our streets and borders safer. We're fixing clumbering crumbling classrooms. We're extending childcare and we're restoring our NHS.
202 We're restoring our NHS spending $37 billion more on health this year than in the last year of the last conservative government. And today I'm accelerating our work to high up violence against women and girls and 44 setting up a new misogyny prevention fund partnering with the private sector.
203 I want to pay tribute to my cabinet colleagues and thank them for everything they're doing prioritising within their department budgets in the face of tough fiscal constraints.
204 In today's budget 45 I'm fully funding the defence investment plan including through capital reprioritization across white walls. This honours the commitment made both by me and by the Prime Minister.
205 And as we look ahead to the spending review, we start from a position of strength, with spending at that higher base.
206 There will be choices. We have to make about priorities. As we have shown we can.
207 And efficiencies we must deliver as we've shown we can.
208 Last year departments hit double their productivity and efficiency target generating £16 billion of savings.
209 Asylum costs which tripled under the last conservative government have been cut by a billion pounds under this labor government.
210 Strong public services, strong fiscal discipline two pillars of our labor approach.
211 But delivering the next spending review will also require a fundamental rewiring of the state.
212 First a digital overhaul of government.
213 In the budget today I'm investing in AI for the civil service transformation.
214 To support 46 saving a further 600 million from back office costs .
215 And alongside our admirable friend the health secretary I'm launching a review of NHS productivity and AI. So staff can spend their time with patients and not on admin second streamlining the state through devolution reducing the double running between central and local government.
216 And today's budget provides 47 £100 million for a local apprenticeship service to match young people with local firms funded from savings in welfare fraud and error. And third with a new focus on prevention.
217 Just as we ring fence capital spending to invest in future success. So at the next spending review I will prevention spending that brings down costs in the future.
218 With a new preventative departmental expenditure limits.
219 Madame Deputy Speaker when it comes to welfare.
220 The last conservative government left a broken system.
221 A broken system which we are changing bringing back face to face assessments rebalancing universal credit so it doesn't force people to label themselves too sick or to work.
222 We're reforming mobility and we're clamping down on those living abroad from accessing a UK state pension on the cheap.
223 But there is more to do.
224 I refuse to write off a million young people like the last conservative government.
225 I refuse to see disabled people suffer the indignities of a system that has been found not fit for purpose. And I refuse to allow the burden of paying for this failing system to fall on taxpayers for decades to come. As the Prime Minister and I have both said we will bring down the welfare bill and we will do it in a labor way.
226 Madam Deputy Speaker Alan Milburn and the Timms panel will publish their final reports next month.
227 This government will then set out our response before the end of the year with a white paper and legislation to follow next year.
228 The Prime Minister has already announced that 48 from 2030 we will adjust the triple lock so that the state pension rises every year and keeps pace with their earnings and inflation.
229 This will save £15 billion a year by the end of the 2030s £50 billion by 2050.
230 A new settlement for older generations. A rising state pension and a national care service that is there when older people need it. Taking the burden of families taking the burden off our NHS.
231 Taken together. These reforms reject crude cuts that intensify cost of living pressures and drive up costs elsewhere in the system. Taken together, these reforms will rebuild our welfare system so that it supports people from youth into old age. This is our labor approach tackling long term challenges, improving public services, restoring hope for the future.
232 Madame Deputy Speaker let me come now to two more long term challenges.
233 First defence.
234 The weak in Kiev started with Russia launching another brutal ballistic missile attack on the city.
235 And this morning the Prime Minister and I called President Zelensky to tell him about our commitments in the budget today.
236 He told us you've made my day.
237 49 £10 billion of additional economic and military support based on loans export finance guarantees and half a million in urgent military funding for this winter.
238 The whole house, the whole country is united for Ukraine and today we send a clear message to Moscow.
239 Britain will stand with Ukraine for as long as it takes.
240 New era of threat the demands on our UK defence are rising.
241 Keeping the people safe by equipping our armed forces is the first duty of any government.
242 I say this as chancellor. I say this as former defense secretary and I say this as a dad whose son is an Army reservist.
243 A reservist that came back four years ago from early training to say they had no kit and they had no bullets to fire. That's the truth. For 14 years conservative governments hollowed out and underfunded our armed forces.
244 And I'm proud to be part of a Labour government that has made the biggest increase in defence spending since the end of the Cold War.
245 This year our defense budget is £14 billion higher than it was in the Conservatives last year of government.
246 And at the spending review next year I confirmed that I will set out the details of how we will meet our NATO commitment to spend $3.5% of GDP on defence by 2035 with a target date for 3% in 2030.
247 I'm getting work underway to get there in a fiscally sustainable way.
248 That will include looking hard at public spending as I have done today to fund defence investment plan.
249 But I'm also determined to use more innovative financing alongside the private sector and our international allies.
250 So first I'm launching today a new innovative defence finance task force to lead this work ahead of the spending review.
251 Second I'm now confirming that we will commence treaty negotiations on the multilateral defence mechanism or bank with Finland, Poland and the Netherlands to boost defence investment and joint procurement across NATO allies Third we will expand our defense industrial base by getting the maximum amount of private investment into defence including through public-private partnerships. And fourth as an immediate step, I can tell the House that the National Wealth Fund and the British Business Bank will launch a new focus on defence dual use technology and sovereign capability 50 deploying up to £5 billion of investment and lending over the next four years. Madame Deputy Speaker, I will ensure this record defense investment works twice.
252 For our national security and once for British jobs and British business.
253 Places across all four nations Baro Rossif allership all the shot Plymouth Glascoyd and Belfast re-industrialized and transformed.
254 Security for our nation jobs for our people fresh hope for the future delivered for Britain by this Labour government.
255 And let me now turn to housing.
256 On Monday the Prime Minister and I met Les at the Connections Project in St Martin's in the Fields just a stone throw from this chamber.
257 He'd spent three months sleeping on the streets. Now he has a room, he has medical help and he has a bit of hope for the future.
258 And Les told me now I have a chance. Now I have a chance. I want to make something of my life.
259 And Anne, the nurse at the project put it this way. She said they put the team around the person.
260 And that's what we will do as a nation.
261 The Conservatives did promise to end rough sleeping. Yet when they left office it had doubled.
262 Ten years ago his shadow housing secretary, I argued that rough sleeping was a shame on the nation.
263 I said it could be solved but only with national will.
264 Government can fix this if it chooses. And this government has chosen.
265 We've already promised everyone sleeping rougher route off the streets this winter.
266 And today 51 I confirm a further 430 million pounds to keep that offer open for the rest of this parliament . Not just this winter but every winter. This is amoral mission for me. It's a moral mission for the Prime Minister. It is a moral mission for the Labour Party.
267 Madam Deputy Speaker Holm is the heart of all our lives.
268 It's the foundation on which we raise our families and build our hopes.
269 Rough sleeping is the sharp end, a symptom of a system that feels broken to too many people.
270 Since the 1980s Britain has lost over 2 million council homes. Tonight more than 170,000 children will sleep in temporary accommodation. And two in five young people are trapped.
271 Paying more than a third of their income on rent while they watch the hopes of buying their own home slip away.
272 So I'm taking action today to deal with immediate pressures and taking decisions to start to deal with the long term challenges.
273 To get more homes built I'm drawing the line on constant changes to building regulations. 52 No major changes to building regulations in this parliament except where it's critical for safety.
274 And I'm removing biodiversity requirements for more brownfield sites.
275 To get more council homes built.
276 And extended cheaper borrowing for councils and 53 making all land sold to social housing providers VAT free .
277 And today 54 I'm providing an additional 1.5 billion pounds for the social and affordable housing program taking our total government commitment back in council housing to £40 billion.
278 Madame Deputy Speaker the Conservative sold off our council Howard.
279 Labour is now building them back.
280 And finally for every young person who's working hard saving what they can and dreaming of their first home, I'm taking action.
281 I'm announcing that 55 a first time buyer ISA will replace the lifetime ISA .
282 And from today I'm dealing with the lice of penalty.
283 So that 56 if the home you want costs more than the limit you will get back at least what you put in .
284 And I'm going further.
285 From next spring a new scheme for first time buyers who don't have the Bank of Mum and Dad behind them.
286 57 Your first home and equity loan scheme which I'm funding today with 4.7 billion pounds of government backed lending .
287 Madame Deputy Speaker hope starts with a home.
288 A route off a streets, a secure home to raise your kids, the keys to your own front door delivered to the British people by this Labour government.
289 Madame Deputy Speaker. This is a Lever Budget for the Worker, the sole trader, the parent at the school gate. The young person desperate to start their first job or start their first business.
290 These are my choices.
291 Raising revenue from those who can afford to pay no tax rises on wages or dividends cutting taxes for millions of families and businesses.
292 And just as the British people helped support our banks 20 years ago, it is our banks that will help give families breathing space today. And for our high streets, its gaming machines and vape shops that will help provide the funding for our pubs, our shops and our cafes to thrive.
293 Breathing space now while taking the long-term action to get costs down for good.
294 The decision I've taken today will help steer Britain through.
295 And when the storms pass, what matters is where Brittany is heading.
296 A Britain reindustrialized. A Briton with power returned to communities. Threats deterred, global opportunities seized.
297 In our first 100 days this Labour government has set a course for fresh hope, good growth and support for those who need it.
298 We know who we are.
299 We know who we are. We know where we're going.
300 Mr Batty.
301 No need, no need.
302 Chancellor.
303 Madame Deputy Speaker.
304 We know who we are. We know where we're going. We can see the Britain we want to be.
305 It's a vision burned into every line of this budget statement. Madam Deputy Speaker breathing space now, fresh hope for the future delivered to the British people by this Labour government. I commend this statement to the House.
306 Order.
