Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: Chanceferor, thank you so much for joining us on Bloomberg TV.
Speaker 2: It's been two weeks since the UK election. You've certainly
Speaker 2: hit the ground running today. There was also talk about
Speaker 2: this fiscal lock in why do you feel they need.
Speaker 3: To do that.
Speaker 4: We've introduced to Parliament today the Budget Responsibility Bill that
Speaker 4: was first announced in the king Speech just yesterday, and
Speaker 4: the purpose of this bill is to provide the fiscal
Speaker 4: lock so that never again can a Prime Minister or
Speaker 4: a Chancellor do what Liz Trust and Quasi Quatting did
Speaker 4: with their disastrous mini budget just under two years ago.
Speaker 4: So this will mean that the Office of Budget Responsibility,
Speaker 4: the Independent Office, can always provide a forecast when there
Speaker 4: are significant and permanent tax and spending changes, specifically worth
Speaker 4: more than one.
Speaker 3: Percent of GDP.
Speaker 4: That would have meant it would have triggered an OBR
Speaker 4: forecast back when Liz Trust and Cosey Quatin introduced that
Speaker 4: disastrous Many budget.
Speaker 2: And so that I guess it is something that investors
Speaker 2: will you take solace to. You've announced a what the
Speaker 2: Premister has said that you will achieve that two point
Speaker 2: five percent target.
Speaker 1: Are you confident that's achievable.
Speaker 4: So the purpose of today really was to give businesses,
Speaker 4: give investors that confidence that Britain is a stable place
Speaker 4: to invest and do business.
Speaker 3: I'm determined to do that.
Speaker 4: We were elected two weeks ago on a mandate to
Speaker 4: grow our economy based on that stability that is so
Speaker 4: essential to underpin any economic decision making, and so that's
Speaker 4: why this bill is so important.
Speaker 3: Now.
Speaker 4: I'm under no illusions about the scale of the challenge
Speaker 4: that I face in this job. There are going to
Speaker 4: be difficult decisions ahead, but I was really clear during
Speaker 4: the election that everything that we put forward, whether that
Speaker 4: is on the NHS or on defense or on tax policy,
Speaker 4: will always be fully cost did and fully funded. That's
Speaker 4: very different so what we've had these last fourteen years
Speaker 4: with decisions with no regard to where the money's going
Speaker 4: to come from, and I'm going to be different and.
Speaker 2: Chance I know a lot of course of what you're
Speaker 2: trying to put in place will depend on private capital
Speaker 2: coming into the UK. Have you had discussions with institutions, investors,
Speaker 2: even pension funds of their willingness to come to the UK.
Speaker 4: You're absolutely right that our plans to grow the economy
Speaker 4: depend on businesses and investors choosing Britain as a place
Speaker 4: to invest. And I want investors to look at Britain
Speaker 4: and see a country that's got a stable government with
Speaker 4: a clear mandate to grow the economy and chooses Britain
Speaker 4: as a stable place to invest in an increasingly volatile
Speaker 4: and uncertain world. Which is why the fiscal lot today
Speaker 4: is so important, but also the other changes we've announced
Speaker 4: in the last two weeks. We have announced more policies
Speaker 4: to grow the economy than the last government did in
Speaker 4: fourteen years. In the first seventy two hours in the job,
Speaker 4: I made more comprehensive changes to the UK planning system
Speaker 4: than the previous government did in more than a decade.
Speaker 3: Because I know that we need to unlock.
Speaker 4: That private investment that businesses tell me they are ready
Speaker 4: to invest if we get rid of some of those blockages,
Speaker 4: and the blockages in the planning system I think are
Speaker 4: more significant than anything else. And so those changes to
Speaker 4: bring back mandatory housing targets for local authorities, ending the
Speaker 4: moratorium on shore wind calling in planning decisions on data
Speaker 4: centers and on housing really crucial, both to send a
Speaker 4: signal to business that Britain is a place to invest,
Speaker 4: but also to make sure that we can get on
Speaker 4: with things and get building in Britain again.
Speaker 1: And are they listening?
Speaker 2: Have you gotten cars from big investors saying yes, that's
Speaker 2: a plan that I wanted to see and I'm.
Speaker 3: In absolutely so.
Speaker 4: In my first speech at the Treasury a week and
Speaker 4: a half ago, we had businesses, we had investors in
Speaker 4: the audience met afterwards. The following day we announced the
Speaker 4: creation of a National Wealth Fund work led by Mark Carney.
Speaker 4: The task was led by Mark Carney for the Labor
Speaker 4: Party when we were in opposition, now reporting to a
Speaker 4: Labor government, and on that Wealth Fund task force we
Speaker 4: also had Amanda Blank from a Viva Vencat, from Berkley's,
Speaker 4: Antonio from Energy and other big UK investors. And that
Speaker 4: is absolutely crucial because there's no plans that I can
Speaker 4: draw up in my new office in the Treasury that
Speaker 4: are going to work unless we have business buy in.
Speaker 4: And I hope that businesses saw in Labour's manifesto and
Speaker 4: also in the plans that we've announced in government have
Speaker 4: the fingerprints of business all over them, because these plans
Speaker 4: have been co written with business, because they're all about
Speaker 4: unlocking private sector investment into our economy.
Speaker 2: Chanser, are you considering tax breaks to either boost pension
Speaker 2: savings or make UK investments more attractive.
Speaker 4: I'm not going to announce any tax breaks or tax
Speaker 4: changes without saying where the money is going to come from,
Speaker 4: and we will have a budget later this year. But
Speaker 4: I also just need to be really clear and honest
Speaker 4: about the scale of the challenge that we have inherited.
Speaker 4: With the public finances, We're going to have to make
Speaker 4: difficult decisions. We need to fix the foundations before we
Speaker 4: can start rebuilding things in Britain. But unlike the previous government,
Speaker 4: I am going to be honest about the scale of
Speaker 4: the challenge. I'm going to level with people and together
Speaker 4: we're going to rebuild our country based on that private
Speaker 4: sector business investment to get our economy growing. Because I
Speaker 4: asked the Treasury officials to give me an assessment of
Speaker 4: how much stronger the UK economy would be today if
Speaker 4: we'd have grown at just the average rate of OECD
Speaker 4: economies these last fourteen years, and the answer is we'd
Speaker 4: be one hundred and forty billion pounds bigger today, worth
Speaker 4: five thousand pounds for every family in Britain. We have
Speaker 4: got to grow our economy. It's the only way to
Speaker 4: improve living standards, keep taxes low and have the money
Speaker 4: that we need for our dilapidated public services.
Speaker 1: Jender.
Speaker 2: You're also promising to reset the relationship with European partners.
Speaker 1: Are there any quick wins there to be had?
Speaker 3: Well?
Speaker 4: The Prime Minister is hosting European leaders at blenh And
Speaker 4: Palace in England today and that's really important as a
Speaker 4: chance to reset those relationships and foster a new era
Speaker 4: of trust between the UK and our nearest neighbors and
Speaker 4: trading partners in Europe.
Speaker 3: And we're determined to do that.
Speaker 4: It doesn't mean going back into the Single Market or
Speaker 4: Customs Union or bringing back free movement of labor, but
Speaker 4: it does mean having a closer trading relationship and also
Speaker 4: building a stronger strategic security alignment with our neighbors in
Speaker 4: Europe given the threats that we face as a continent,
Speaker 4: and so blenh And Palace just today is a chance
Speaker 4: for us to begin to reset those relationships and foster
Speaker 4: a stronger relationship between Britain and our neighbors and allies
Speaker 4: in Europe.
Speaker 2: But are there any industries that you would see you
Speaker 2: again a win in terms of parallel kind of you know,
Speaker 2: some of the laws being together.
Speaker 4: Well, there's a number of areas where we would like
Speaker 4: to make some changes to the deal that the previous
Speaker 4: government secured. We would like the mutual recognition of professional
Speaker 4: qualifications to help our services sector, reduce the bureaucracy for
Speaker 4: our cultural industries when touring around Europe. And a veterinary
Speaker 4: agreement to help our fantastic food and farming sector in Britain.
Speaker 4: That will require negotiation and that will require give and
Speaker 4: take on both sides, but we want to boost our trade,
Speaker 4: make it easier for great British businesses big and small
Speaker 4: to sell goods and services right across Europe.
Speaker 2: Given the challenges you were mentioning, when can we expect
Speaker 2: a budget from new September or October?
Speaker 4: Well, I said in my first speech as Chancellor of
Speaker 4: the Exchequer last Monday that before the summer recess I
Speaker 4: would come to Parliament with an update on the fiscal position,
Speaker 4: the spending inheritance that this incoming labor government is now
Speaker 4: having to do with, and I will set out when
Speaker 4: we do that statement the date for the budget in
Speaker 4: the autumn.
Speaker 2: But do you see that being a three to five
Speaker 2: year spending review or does it need to be shorter
Speaker 2: to make sure that the OBR then takes into the
Speaker 2: growth you're expecting.
Speaker 4: Well, we will set out those the details and the
Speaker 4: dates when I come to the House of Commons in July.
Speaker 4: But you know, Francing that I want to bring back
Speaker 4: stability to the UK economy and that gives means giving
Speaker 4: certainty to businesses and families, the state of the public finances,
Speaker 4: what we're going to do to put them on a
Speaker 4: firmer footing. But all that depends on bringing growth back
Speaker 4: to our economy so that we can repair our public services,
Speaker 4: repair our public finances and ensure that living standards increase,
Speaker 4: that working people are better off by bringing investment, bringing
Speaker 4: business back to Britain.
Speaker 2: But chance for that growth target, is it two point
Speaker 2: five percent for next year or is that something that
Speaker 2: you'll you'll have to assess now.
Speaker 4: Our ambition is to have the fastest growing economy in
Speaker 4: the G seven, with good job some productivity growth in
Speaker 4: all parts of the UK. And that's why all the
Speaker 4: announcements that I've made since becoming Chancellor, the Planning Reform,
Speaker 4: the creation of the National Wealth Fund. The fiscal lock
Speaker 4: that we've introduced to Parliament today all about bringing the stability,
Speaker 4: investment and reform to our economy so that we can
Speaker 4: grow our economy and be competitive in that global economy.
Speaker 1: Again, so difficult to put a number on it.
Speaker 3: I'm not going to.
Speaker 4: Put a number on it, and it's the end up
Speaker 4: to the Office of Budget Responsibility to make those forecasts.
Speaker 4: But I'm doing everything within my power, working with my
Speaker 4: colleagues in the Cabinet, to ensure that we are pursuing
Speaker 4: a pro growth, a pro business agenda to bring investment
Speaker 4: back to Britain, because investment is the bedrock of a
Speaker 4: strong successful economy. We have the lowest share of investment
Speaker 4: of neg seven economy. I want to turn that around
Speaker 4: so we can bring good jobs, bring prosperity back to
Speaker 4: the United Kingdom.
Speaker 2: Transfer do you worry about wealthy tax payers moving to Europe?
Speaker 1: What can you tell us about Nanda.
Speaker 4: Well, we were really clear in our manifesto that if
Speaker 4: you make Britain you're home, you should pay your taxes
Speaker 4: here and that's what the outgoing Conservative government we're looking
Speaker 4: to do as well. But it is important that we
Speaker 4: bring in that tax revenue, and that if you live here,
Speaker 4: you should contribute to investment in our health service, in
Speaker 4: our defense, in our law and order, and that will
Speaker 4: happen under this labor government.
Speaker 3: But we want Britain to be a really attractive.
Speaker 4: Place for investors and businesses and successful wealth creators and
Speaker 4: entrepreneurs from around the world, and that's why we're determined
Speaker 4: to unlock our economy for private sector investment through the
Speaker 4: planning reforms, through the National Wealth Fund, and indeed through
Speaker 4: the other changes we're going to bring in, whether that's
Speaker 4: through the skills system or pensions reform.
Speaker 2: None times would be very different to what the Conservatives announced.
Speaker 2: The plan that you're expecting for them, Well.
Speaker 4: There's two differences between what the outgoing government was proposing
Speaker 4: and what we'll do. First of all, we will bring
Speaker 4: those changes forward by a year, and second we will
Speaker 4: make reforms, for example around inheritance tax.
Speaker 3: But it is right that if you make.
Speaker 4: Britain your home, you should pay your share of taxes
Speaker 4: here and an outdo data system based on where your
Speaker 4: father was born to determine how you're treated in the
Speaker 4: tax system. That's just not right, it's not fit for
Speaker 4: a modern economy. Now, of course we will have rules
Speaker 4: that if you come to Britain for a short period
Speaker 4: of time on common with work, for example, that we
Speaker 4: will not be taxing your global income. But if you
Speaker 4: make Britain your home, if this is your permanent place
Speaker 4: of residents, then just like everybody else, you should pay
Speaker 4: your taxes. Here what a modern system fit for a
Speaker 4: modern economy. We don't have that today. Those are reforms
Speaker 4: we want to bring in Chanson.
Speaker 2: When you look at Sheen, would you welcome an IPO
Speaker 2: in the UK and the City of London.
Speaker 4: Well, I welcome the FCA changes just last week to
Speaker 4: really turbocharge listings in the UK, and I want a
Speaker 4: businusinesses to choose Britain as a place to list. For
Speaker 4: the last few years, we've seen story after story about
Speaker 4: companies delisting from the London Stock Exchange, listing in New York,
Speaker 4: listing in Europe.
Speaker 3: I want to turn that around.
Speaker 4: I want Britain to be the place of choice to
Speaker 4: make an IPO to grow your business.
Speaker 3: That's why I welcome.
Speaker 4: The reforms that the FCA put in place last week.
Speaker 4: It's also why I'm determined to change our pension system
Speaker 4: so we can unlock some of those assets under management
Speaker 4: to help start up and scale up businesses access the
Speaker 4: capital they need, so we can keep more businesses here
Speaker 4: in Britain.
Speaker 1: Chance the US is.
Speaker 2: Also really going quite hard on tariffs with China. We're
Speaker 2: going up to an election. The UK has not really
Speaker 2: squared with the EU on ev terrorifts, for example, or
Speaker 2: the US. How would you deal as a small open
Speaker 2: economy with China and Chinese tariffs.
Speaker 4: Well, we are a small, open trading economy and we
Speaker 4: benefit from those trade links with countries around the world,
Speaker 4: both for exports and imports, but also for foreign director investment.
Speaker 4: And our view is that where possible we trade, we cooperate,
Speaker 4: and we challenge in areas where it's important to challenge,
Speaker 4: but we don't want to close the UK economy down
Speaker 4: to imports and exports. We benefit from those trade links
Speaker 4: around the world, including with China.
Speaker 1: Chancellor, thank you so much for your time.
Speaker 3: Thank you