1 00:00:02,800 --> 00:00:05,000 Speaker 1: In the long history of the British government, only one 2 00:00:05,040 --> 00:00:08,000 Speaker 1: woman has served as Chancellor of the Exchequer, in effect 3 00:00:08,039 --> 00:00:10,600 Speaker 1: the Secretary of the Treasury of the British government. That 4 00:00:10,640 --> 00:00:13,680 Speaker 1: woman is Rachel Reeves. Had a chance at Davos recently 5 00:00:13,840 --> 00:00:16,120 Speaker 1: to sit down with Rachel Reeves and talk about her 6 00:00:16,200 --> 00:00:19,000 Speaker 1: role as Chancellor of the Exchequer and the British economy. 7 00:00:19,520 --> 00:00:22,360 Speaker 1: In your position, Chancellor of the Exchequer, you're the equivalent 8 00:00:22,400 --> 00:00:24,560 Speaker 1: of the United States or the Secretary of Treasury. Yes, 9 00:00:24,600 --> 00:00:26,759 Speaker 1: but also the head of the officer management and budget. 10 00:00:26,960 --> 00:00:29,840 Speaker 1: Do you not prepare the budget for the government? I do. 11 00:00:29,920 --> 00:00:32,720 Speaker 2: I do also prepare the budget. 12 00:00:32,760 --> 00:00:36,919 Speaker 3: We have an independent forecaster who provides the forecast and 13 00:00:37,080 --> 00:00:40,839 Speaker 3: costs the policies that we put forward. But what is 14 00:00:40,920 --> 00:00:44,680 Speaker 3: in the budget is my choice, the policies that I 15 00:00:44,760 --> 00:00:47,280 Speaker 3: put forward, and we have an annual budget. I delivered 16 00:00:47,280 --> 00:00:50,400 Speaker 3: the last of my budgets in November last year in England. 17 00:00:50,440 --> 00:00:51,960 Speaker 1: Do you have to balance the budget or you can 18 00:00:52,000 --> 00:00:52,640 Speaker 1: borrow money? 19 00:00:53,120 --> 00:00:55,480 Speaker 3: You can borrow money, but we're reducing that. I don't 20 00:00:55,520 --> 00:01:00,000 Speaker 3: think that it is a good fiscal or economic policy 21 00:00:59,760 --> 00:01:03,240 Speaker 3: to just constantly borrow, especially to pay for day to 22 00:01:03,280 --> 00:01:05,640 Speaker 3: day spending, and for the last few years, like many 23 00:01:05,640 --> 00:01:09,000 Speaker 3: countries including the US, we've been running a budget deficit 24 00:01:09,040 --> 00:01:12,240 Speaker 3: of around five percent of GDP. We are now bringing 25 00:01:12,240 --> 00:01:15,279 Speaker 3: that down steadily. It will be just over four percent 26 00:01:15,319 --> 00:01:18,280 Speaker 3: I think this year, then falling to about three and 27 00:01:18,319 --> 00:01:21,000 Speaker 3: a half percent. We've got the fastest rate of fiscal 28 00:01:21,000 --> 00:01:23,520 Speaker 3: consolidation going on in the UK of any country in 29 00:01:23,560 --> 00:01:26,640 Speaker 3: the G seven. Our debt burden as a share of 30 00:01:26,680 --> 00:01:31,600 Speaker 3: GDP is not too far of one hundred percent. I 31 00:01:31,640 --> 00:01:34,360 Speaker 3: want to bring that down. I also want to bring 32 00:01:34,400 --> 00:01:37,440 Speaker 3: down the cost of servicing that debt because at the moment, 33 00:01:37,520 --> 00:01:40,080 Speaker 3: one in ten pounds of everything government spends is actually 34 00:01:40,120 --> 00:01:44,800 Speaker 3: on debt interest and so reducing government borrowing costs, which 35 00:01:44,880 --> 00:01:49,200 Speaker 3: we managed to achieve last year, and reducing the debt 36 00:01:49,360 --> 00:01:52,280 Speaker 3: burden as a share of GDP are two important priorities 37 00:01:52,320 --> 00:01:52,560 Speaker 3: for me. 38 00:01:52,840 --> 00:01:55,480 Speaker 1: In the budget you've proposed You propose a tax increase? 39 00:01:56,080 --> 00:01:58,360 Speaker 1: Is that very popular to doing? Will you get it approved? 40 00:01:58,400 --> 00:02:00,400 Speaker 1: Because you control the parliament. 41 00:02:00,240 --> 00:02:04,320 Speaker 3: We do have a big majority in Parliament. When I 42 00:02:04,360 --> 00:02:07,680 Speaker 3: became chancellor, I inherited a bit of a mess, A 43 00:02:07,720 --> 00:02:10,960 Speaker 3: bit of a mess fiscally and in terms of economic performance. 44 00:02:11,000 --> 00:02:13,520 Speaker 3: And the cost of living, and the previous government had 45 00:02:13,520 --> 00:02:15,800 Speaker 3: made a number of spending commitments without saying where the 46 00:02:15,800 --> 00:02:17,919 Speaker 3: money was going to come from, and what is called 47 00:02:17,960 --> 00:02:21,400 Speaker 3: the reserve, which is set aside for emergencies, had been 48 00:02:21,520 --> 00:02:25,040 Speaker 3: spent three or four times over just three months into 49 00:02:25,080 --> 00:02:26,000 Speaker 3: the financial year. 50 00:02:26,720 --> 00:02:27,799 Speaker 2: I had to put that right. 51 00:02:28,040 --> 00:02:32,000 Speaker 3: That required a number of adjustments, both on spending and 52 00:02:32,120 --> 00:02:35,120 Speaker 3: indeed on tax. When you come in as a business 53 00:02:35,160 --> 00:02:38,240 Speaker 3: leader and you're taking on a business that has not 54 00:02:38,400 --> 00:02:42,240 Speaker 3: been working well, that is not living within its means, 55 00:02:42,280 --> 00:02:43,640 Speaker 3: does not have a clear. 56 00:02:43,480 --> 00:02:45,040 Speaker 2: Plan, you have to sort it out. 57 00:02:45,080 --> 00:02:47,240 Speaker 3: And I had to fix that mess now on being 58 00:02:47,240 --> 00:02:50,120 Speaker 3: able to pursue my plans, my plans for growth and 59 00:02:50,160 --> 00:02:52,280 Speaker 3: to ease the cost of living challenges. 60 00:02:52,440 --> 00:02:53,200 Speaker 2: But that did. 61 00:02:53,080 --> 00:02:55,840 Speaker 3: Require quite a big repair job to put the public 62 00:02:55,840 --> 00:02:57,200 Speaker 3: finances on a solid footing. 63 00:02:57,240 --> 00:02:58,799 Speaker 2: Again, as we look. 64 00:02:58,680 --> 00:03:01,280 Speaker 1: In this calendar year, do you think the UK will 65 00:03:01,320 --> 00:03:03,799 Speaker 1: grow at two or three percent or so? What kind 66 00:03:03,800 --> 00:03:05,760 Speaker 1: of projections are you for GDP growth? 67 00:03:06,320 --> 00:03:08,840 Speaker 3: Real GDP growth expected to be around one and a 68 00:03:08,840 --> 00:03:12,520 Speaker 3: half percent. Obviously nominal all that would be around three 69 00:03:12,520 --> 00:03:16,079 Speaker 3: and a half percent a year. I want growth to 70 00:03:16,120 --> 00:03:19,200 Speaker 3: be faster than that. Last year. I think we'll come 71 00:03:19,240 --> 00:03:21,520 Speaker 3: out as the second fastest growing economy in the G 72 00:03:21,639 --> 00:03:26,960 Speaker 3: seven when all the numbers are totted up. But none 73 00:03:26,960 --> 00:03:29,280 Speaker 3: of the economies in the G seven are growing as 74 00:03:29,320 --> 00:03:31,880 Speaker 3: fast as we could, as fast as I think our 75 00:03:31,880 --> 00:03:35,120 Speaker 3: potential is. And that's why as a government, growth is 76 00:03:35,440 --> 00:03:39,440 Speaker 3: our number one priority for the Prime Minister Kirstarma and myself, 77 00:03:40,040 --> 00:03:43,960 Speaker 3: and our industrial strategy backing sectors like AI and tech, 78 00:03:44,360 --> 00:03:48,840 Speaker 3: clean energy, life sciences and our defense sectors focus on 79 00:03:48,880 --> 00:03:54,520 Speaker 3: stability to bring down interest rates and inflation. Investment both 80 00:03:54,520 --> 00:03:59,600 Speaker 3: public and private in infrastructure, including ambitious plans for Oxford 81 00:03:59,640 --> 00:04:03,440 Speaker 3: and Bridge and also in the North of England, and 82 00:04:03,480 --> 00:04:09,720 Speaker 3: then deregulation, reforming our planning system to make it easier 83 00:04:09,760 --> 00:04:12,200 Speaker 3: to get things done in Britain. I think we'll start 84 00:04:12,280 --> 00:04:15,360 Speaker 3: seeing the benefits of that payoff this year now. 85 00:04:15,360 --> 00:04:18,839 Speaker 1: Many wealthy people who are not British by birth, who 86 00:04:18,839 --> 00:04:22,800 Speaker 1: have moved to England in recent years, maybe to avoid 87 00:04:23,400 --> 00:04:28,480 Speaker 1: their local countries taxes, have found that recently the non 88 00:04:28,600 --> 00:04:33,120 Speaker 1: dom taxes have increased dramatically in the UK and they 89 00:04:33,120 --> 00:04:35,760 Speaker 1: have left the UK. Has that been a problem having 90 00:04:35,839 --> 00:04:38,360 Speaker 1: wealthy people leave the UK or it's not a big problem. 91 00:04:39,000 --> 00:04:42,080 Speaker 3: We want Britain to be a magnet for wealth and 92 00:04:42,200 --> 00:04:46,360 Speaker 3: talent entrepreneurs from around the world. We did have quite 93 00:04:46,400 --> 00:04:50,360 Speaker 3: an anachronistic system that if your father was born abroad 94 00:04:51,000 --> 00:04:54,760 Speaker 3: you could claim a non domicile for tax purpose in 95 00:04:54,800 --> 00:04:57,240 Speaker 3: the UK. That wasn't fair. It's not a rule that 96 00:04:57,279 --> 00:05:02,080 Speaker 3: any other country has, so the previous government and now 97 00:05:02,120 --> 00:05:06,760 Speaker 3: this government have got rid of that. We also made 98 00:05:06,800 --> 00:05:10,919 Speaker 3: some changes around trusts and inheritance tax, although in the 99 00:05:10,920 --> 00:05:15,640 Speaker 3: budget just in November we relaxed some of those rules 100 00:05:16,279 --> 00:05:19,560 Speaker 3: so that for a flat fee you could take trusts 101 00:05:19,600 --> 00:05:23,640 Speaker 3: out of your inheritance tax. So we have listened to 102 00:05:23,720 --> 00:05:28,360 Speaker 3: feedback from wealthy individuals who perhaps want to make Britain 103 00:05:28,400 --> 00:05:31,120 Speaker 3: that home, or have already made at Britain their home. 104 00:05:31,160 --> 00:05:34,240 Speaker 3: We've also introduced a very generous scheme for people coming 105 00:05:34,560 --> 00:05:37,920 Speaker 3: to the UK wanting to bring foreign income and gains 106 00:05:37,960 --> 00:05:41,760 Speaker 3: to the UK. Previously they were taxed at normal rates 107 00:05:42,520 --> 00:05:45,599 Speaker 3: of income tax. We have reduced that to try and 108 00:05:45,640 --> 00:05:49,080 Speaker 3: encourage people to bring not just themselves and their talent, 109 00:05:49,480 --> 00:05:52,800 Speaker 3: but their wealth to the UK. Britain is an open 110 00:05:52,880 --> 00:05:56,560 Speaker 3: trading economy and we have to be to be successful. 111 00:05:56,839 --> 00:05:59,600 Speaker 3: Open to business, open to investment, open to trade, and 112 00:05:59,640 --> 00:06:00,520 Speaker 3: open to talents. 113 00:06:00,960 --> 00:06:03,760 Speaker 1: Now, the world has seen enormous amounts of growth in 114 00:06:03,800 --> 00:06:06,920 Speaker 1: the technology space, particularly AI, and you've mentioned quantum is 115 00:06:06,960 --> 00:06:09,840 Speaker 1: also coming along. But as you look back over the 116 00:06:09,920 --> 00:06:13,839 Speaker 1: last couple of years, if you grow up in the 117 00:06:13,960 --> 00:06:17,880 Speaker 1: UK or the EU, you don't really relied to get 118 00:06:17,880 --> 00:06:22,320 Speaker 1: through the day on European built technologies. The technologies that 119 00:06:22,320 --> 00:06:24,839 Speaker 1: are often the ones that people use are built in 120 00:06:24,880 --> 00:06:27,919 Speaker 1: the United States. Why do you think that the entrepreneurs 121 00:06:27,960 --> 00:06:31,839 Speaker 1: in the UK and the EU haven't yet built technologies 122 00:06:31,839 --> 00:06:34,279 Speaker 1: that the whole world says we need that technology, We 123 00:06:34,320 --> 00:06:38,000 Speaker 1: need to have Facebook or our Google product or something 124 00:06:38,040 --> 00:06:40,680 Speaker 1: like that. Is there any inherent reason you think it 125 00:06:40,720 --> 00:06:42,560 Speaker 1: is or just been bad luck for the last X 126 00:06:42,640 --> 00:06:43,320 Speaker 1: number of years. 127 00:06:43,440 --> 00:06:47,080 Speaker 3: Well, I think as a really good challenge, and your 128 00:06:47,320 --> 00:06:51,360 Speaker 3: amazing tech companies like Google and Facebook and Apple, etc. 129 00:06:52,120 --> 00:06:54,440 Speaker 3: We don't have one of those in the UK or 130 00:06:54,480 --> 00:06:59,719 Speaker 3: indeed in Europe. Were very good adopting new technologies in 131 00:06:59,720 --> 00:07:02,880 Speaker 3: the US and that spurs productivity growth, which is beginning 132 00:07:02,920 --> 00:07:05,960 Speaker 3: to pick up now in the UK. But we've also 133 00:07:06,160 --> 00:07:09,200 Speaker 3: got some really exciting businesses on the frontier of new 134 00:07:09,240 --> 00:07:14,240 Speaker 3: technologies like quantum and digital processing. So I think there 135 00:07:14,240 --> 00:07:17,080 Speaker 3: are some exciting opportunities and one of the things that 136 00:07:17,120 --> 00:07:19,960 Speaker 3: we want to do with Oxford Cambridge is to create 137 00:07:20,000 --> 00:07:23,040 Speaker 3: a big link between those two universities. There's sixty or 138 00:07:23,080 --> 00:07:26,760 Speaker 3: seventy miles apart, but there's no direct train link between them. 139 00:07:26,840 --> 00:07:29,119 Speaker 3: There are some great towns and cities on that route 140 00:07:29,120 --> 00:07:31,760 Speaker 3: between those two cities. We want to bring them together 141 00:07:31,840 --> 00:07:35,800 Speaker 3: and create our version, a British version of Silicon Valley 142 00:07:35,840 --> 00:07:39,360 Speaker 3: in the UK, where we can really capture the creativity 143 00:07:39,360 --> 00:07:43,320 Speaker 3: and the imagination of British founders and help them grow 144 00:07:43,360 --> 00:07:45,800 Speaker 3: their businesses here. One of the challenges they've had in 145 00:07:45,800 --> 00:07:49,440 Speaker 3: the UK so loads of startups, but as they scale 146 00:07:49,520 --> 00:07:52,600 Speaker 3: up the drift towards America. There are forms we're making, 147 00:07:53,040 --> 00:07:57,720 Speaker 3: particularly pension reforms, to unlock long term patient capital, to 148 00:07:57,800 --> 00:08:00,640 Speaker 3: back venture capital, to back private equity in the UK 149 00:08:01,080 --> 00:08:04,679 Speaker 3: that is really exciting. We'll keep more of those businesses here. 150 00:08:04,760 --> 00:08:06,960 Speaker 3: We're putting a load of tax incentives as well in 151 00:08:07,000 --> 00:08:11,040 Speaker 3: the budget to back founders and entrepreneurs, and we're increasing 152 00:08:11,040 --> 00:08:14,440 Speaker 3: the tax incentives to stay listed in the UK. So 153 00:08:14,680 --> 00:08:17,200 Speaker 3: we're doing some exciting things and I do think that 154 00:08:17,200 --> 00:08:18,440 Speaker 3: that will reap dividends too. 155 00:08:18,880 --> 00:08:21,640 Speaker 1: Now in the United States, there's been a well publicized 156 00:08:21,680 --> 00:08:24,240 Speaker 1: feud between the President of the United States and the 157 00:08:24,600 --> 00:08:27,720 Speaker 1: chairman of the Federal Reserve Board, and in a fact 158 00:08:27,720 --> 00:08:29,800 Speaker 1: that the President is saying, I should have more influence 159 00:08:29,840 --> 00:08:32,840 Speaker 1: on what interest rates are. Would it ever occur to 160 00:08:32,880 --> 00:08:34,840 Speaker 1: the Chancellor of the ex checker to tell the head 161 00:08:34,840 --> 00:08:37,040 Speaker 1: of the Bank of England lower interest rates or you 162 00:08:37,120 --> 00:08:38,760 Speaker 1: just don't do that in this country. 163 00:08:39,400 --> 00:08:44,000 Speaker 3: No. Since nineteen ninety seven, actually the previous Labor Chancellor, 164 00:08:44,040 --> 00:08:47,640 Speaker 3: Gordon Brown, granted operational independence to the Bank of England. 165 00:08:48,000 --> 00:08:51,040 Speaker 3: It's Parliament that sets the inflation target that's two percent 166 00:08:51,080 --> 00:08:54,160 Speaker 3: for the UK, and then the bank have the tools 167 00:08:54,480 --> 00:08:58,000 Speaker 3: of interest rates to meet that target. Now you know, 168 00:08:58,480 --> 00:09:02,120 Speaker 3: I've worked at the Bank of England. I have huge 169 00:09:02,160 --> 00:09:06,160 Speaker 3: respect for that institution and believe that the way that 170 00:09:06,200 --> 00:09:08,800 Speaker 3: we have good policy making is to take the politics 171 00:09:08,800 --> 00:09:11,800 Speaker 3: out of interest rate decisions. And I think that serves 172 00:09:12,040 --> 00:09:16,200 Speaker 3: the UK economy well. We set fiscal policy as a 173 00:09:16,200 --> 00:09:19,679 Speaker 3: government and then the Bank of England set monetary policy. 174 00:09:19,720 --> 00:09:22,800 Speaker 3: And I think that operational independence for central banks is 175 00:09:22,840 --> 00:09:26,240 Speaker 3: one of the things that preserves stability and gives confidence 176 00:09:26,280 --> 00:09:27,160 Speaker 3: to people to invest. 177 00:09:27,679 --> 00:09:31,560 Speaker 1: Now ten former Chancellors of the Exchequer became Prime Minister, 178 00:09:32,000 --> 00:09:35,000 Speaker 1: including Winston Churchill among others. So if you ever thought 179 00:09:35,040 --> 00:09:37,520 Speaker 1: about the possibility that you might follow in their path 180 00:09:37,559 --> 00:09:40,000 Speaker 1: and be the first woman to be Chancellor of the 181 00:09:40,000 --> 00:09:41,480 Speaker 1: Exchecker and then Prime Minister. 182 00:09:43,360 --> 00:09:45,600 Speaker 3: I know that politicians often say I don't want to 183 00:09:45,640 --> 00:09:47,760 Speaker 3: do that job, but I really don't want to do 184 00:09:48,040 --> 00:09:50,000 Speaker 3: that job. The job that I've always wanted to do 185 00:09:50,120 --> 00:09:53,720 Speaker 3: in politics is to be Chancellor of the Exchequer. Before 186 00:09:53,760 --> 00:09:57,360 Speaker 3: I became an MP, I worked in banking and financial services. 187 00:09:57,440 --> 00:10:00,320 Speaker 3: Has started my career as an economist at the Bank 188 00:10:00,360 --> 00:10:04,160 Speaker 3: of England and for me, being Chancellor is my absolute 189 00:10:04,480 --> 00:10:07,480 Speaker 3: dream job and it's the only job I want in politics. 190 00:10:07,640 --> 00:10:09,559 Speaker 1: Let's talk a bit about your background. Where did you 191 00:10:09,600 --> 00:10:10,040 Speaker 1: grow up? 192 00:10:10,559 --> 00:10:14,679 Speaker 3: I grew up in Lewisham in southeast London. My mum 193 00:10:14,760 --> 00:10:17,960 Speaker 3: and dad were primary school teachers. I went to my 194 00:10:18,040 --> 00:10:21,840 Speaker 3: local state school and it was when I was at 195 00:10:21,880 --> 00:10:26,120 Speaker 3: school that I got involved in politics, and the reason 196 00:10:26,160 --> 00:10:28,920 Speaker 3: being when I was at secondary school, our sixth form 197 00:10:29,000 --> 00:10:31,840 Speaker 3: you know where we did, you know our final exams 198 00:10:32,559 --> 00:10:35,080 Speaker 3: was a couple of prefabricated huts in the playground, which 199 00:10:35,160 --> 00:10:38,160 Speaker 3: was basically freezing cold in the winter or baking hot 200 00:10:38,160 --> 00:10:40,960 Speaker 3: in the summer. Our school library was turned into a 201 00:10:40,960 --> 00:10:43,440 Speaker 3: classroom because there were more students than there was space, 202 00:10:43,760 --> 00:10:45,600 Speaker 3: and there were never enough textbooks to go around. And 203 00:10:45,679 --> 00:10:48,280 Speaker 3: I felt very strongly that the governments that we had 204 00:10:48,320 --> 00:10:51,320 Speaker 3: then in the nineteen eighties and nineteen nineties in the UK, 205 00:10:51,440 --> 00:10:55,000 Speaker 3: conservative governments didn't care very much about schools like mine, 206 00:10:55,080 --> 00:10:57,640 Speaker 3: the community in which I grew up, and I wanted 207 00:10:57,640 --> 00:11:00,160 Speaker 3: to do something about it. And at the time, I'm 208 00:11:00,200 --> 00:11:03,560 Speaker 3: the leader of the Labor Party. The opposition party at 209 00:11:03,559 --> 00:11:06,520 Speaker 3: the time was Tony Blair, and I heard him say 210 00:11:06,960 --> 00:11:11,079 Speaker 3: that his three priorities were education, education, education, and that 211 00:11:11,240 --> 00:11:16,040 Speaker 3: really resonated with me because I believe that talent is 212 00:11:16,080 --> 00:11:22,000 Speaker 3: equally distributed, but opportunity isn't. But education can give everybody 213 00:11:22,160 --> 00:11:23,679 Speaker 3: the opportunities that they. 214 00:11:23,520 --> 00:11:25,079 Speaker 2: Deserve to fulfill their potential. 215 00:11:25,320 --> 00:11:28,199 Speaker 3: And so that's why I got involved in politics and 216 00:11:27,880 --> 00:11:29,920 Speaker 3: why I got involved in the Labor Party. 217 00:11:30,040 --> 00:11:31,400 Speaker 1: And you go to college. 218 00:11:31,480 --> 00:11:34,800 Speaker 3: I was the third person at my school to go 219 00:11:34,880 --> 00:11:40,360 Speaker 3: to Oxford University. It wasn't a traditional route for people 220 00:11:40,480 --> 00:11:43,480 Speaker 3: from my school to go to university at all. Let 221 00:11:43,559 --> 00:11:47,440 Speaker 3: alone to a university like Oxford. But I remember two 222 00:11:47,520 --> 00:11:51,000 Speaker 3: years before I applied to go to Oxford, my head 223 00:11:51,000 --> 00:11:54,840 Speaker 3: teacher at school giving an assembly and said, today two 224 00:11:54,920 --> 00:11:58,920 Speaker 3: girls from our school are in Oxford doing an interview 225 00:11:59,000 --> 00:12:02,080 Speaker 3: to go to the universe there and we should all 226 00:12:02,120 --> 00:12:03,800 Speaker 3: keep our fingers crossed for them all day because it 227 00:12:03,840 --> 00:12:08,120 Speaker 3: would be an amazing achievement for our school. And I thought, wow, 228 00:12:08,280 --> 00:12:10,560 Speaker 3: I've never thought about something like that, but I'm one 229 00:12:10,559 --> 00:12:13,480 Speaker 3: of the top performing girls in my year. Perhaps in 230 00:12:13,520 --> 00:12:15,240 Speaker 3: a couple of years time that might be something I 231 00:12:15,280 --> 00:12:18,520 Speaker 3: could do. And it just so deceived in my mind 232 00:12:18,920 --> 00:12:21,480 Speaker 3: that that was a possibility for someone like me and 233 00:12:21,520 --> 00:12:24,920 Speaker 3: for a girl from the school I was at. And 234 00:12:24,960 --> 00:12:27,200 Speaker 3: so two years later I did put in my application 235 00:12:27,920 --> 00:12:31,200 Speaker 3: and I got a place to read philosophy, politics and 236 00:12:31,240 --> 00:12:34,840 Speaker 3: economics at Oxford University, and later I went on to 237 00:12:34,840 --> 00:12:37,880 Speaker 3: do a master's degree in economics at the London School 238 00:12:37,880 --> 00:12:40,599 Speaker 3: of Economics. So I've been very blessed to have a 239 00:12:40,679 --> 00:12:43,280 Speaker 3: very good education from some of the best universities and 240 00:12:43,320 --> 00:12:44,600 Speaker 3: colleges in the UK. 241 00:12:44,960 --> 00:12:47,559 Speaker 1: After you got that education, did you sort of take 242 00:12:47,559 --> 00:12:49,120 Speaker 1: a job at the Bank of England? Is that what 243 00:12:49,160 --> 00:12:49,679 Speaker 1: you did. 244 00:12:49,679 --> 00:12:55,400 Speaker 3: Yes, yeah, my macroeconomics tutor at Oxford. He said that 245 00:12:55,440 --> 00:12:58,520 Speaker 3: the Bank of England was a finishing school for economists 246 00:12:58,600 --> 00:13:00,559 Speaker 3: and I thought, yeah, that sounds like what I would 247 00:13:00,600 --> 00:13:03,560 Speaker 3: like to do. And so I had an offer from 248 00:13:03,880 --> 00:13:05,840 Speaker 3: an investment bank, and I had an offer from the 249 00:13:05,840 --> 00:13:08,040 Speaker 3: Bank of England, and I chose the Bank of England 250 00:13:08,080 --> 00:13:11,280 Speaker 3: because I wanted to be a proper economist and also 251 00:13:11,280 --> 00:13:14,640 Speaker 3: I've always strongly believed in public service, and so we're 252 00:13:14,679 --> 00:13:17,400 Speaker 3: working for the Bank of England. Was a great job 253 00:13:17,440 --> 00:13:20,199 Speaker 3: for me as my first job after university. 254 00:13:20,280 --> 00:13:21,400 Speaker 1: And how long were you there? 255 00:13:21,520 --> 00:13:26,680 Speaker 3: I was there for just under six years. In fact, 256 00:13:26,679 --> 00:13:28,080 Speaker 3: actually whilst I was there as well, I had a 257 00:13:28,080 --> 00:13:30,960 Speaker 3: brief succonment to Washington, where I worked at the British 258 00:13:30,960 --> 00:13:34,040 Speaker 3: Embassy as the second Economic Secretary, and that was in 259 00:13:34,080 --> 00:13:37,079 Speaker 3: two thousand and two, two thousand and three, so again 260 00:13:37,160 --> 00:13:40,760 Speaker 3: a time of huge volatility in the world, not long 261 00:13:40,800 --> 00:13:44,520 Speaker 3: after nine to eleven when the UK and US went 262 00:13:44,559 --> 00:13:48,840 Speaker 3: to war in Iraq, and so it was a fascinating 263 00:13:48,880 --> 00:13:52,600 Speaker 3: time to be in Washington and I was reporting back 264 00:13:52,640 --> 00:13:56,640 Speaker 3: to the UK Treasury and to the Bank and liaising 265 00:13:56,800 --> 00:13:59,880 Speaker 3: with the US economic team. 266 00:14:00,120 --> 00:14:03,400 Speaker 1: Well, so after you finished that tour of duty, you 267 00:14:03,480 --> 00:14:06,000 Speaker 1: ultimately decided to run for parliament. 268 00:14:06,320 --> 00:14:08,079 Speaker 3: Yes, I went and worked in the private sector for 269 00:14:08,120 --> 00:14:10,400 Speaker 3: a bit. I worked for Halifax Bank of Scotland, which 270 00:14:10,440 --> 00:14:13,240 Speaker 3: is now part of Lloyd's Banking Group. I worked in 271 00:14:13,280 --> 00:14:16,240 Speaker 3: retail banking, which is what took me to Leeds where 272 00:14:16,240 --> 00:14:18,240 Speaker 3: I'm now a Member of Parliament. 273 00:14:18,640 --> 00:14:20,800 Speaker 1: But did you win the first time you ran? 274 00:14:21,000 --> 00:14:21,560 Speaker 2: No? 275 00:14:21,560 --> 00:14:24,200 Speaker 3: No, No, it was the third time actually that I ran. 276 00:14:24,480 --> 00:14:27,400 Speaker 3: I ran in what is traditionally a safe Conservative seat 277 00:14:27,400 --> 00:14:30,160 Speaker 3: in the south of England, in Bromley, which is close 278 00:14:30,200 --> 00:14:32,760 Speaker 3: to where I grew up. But then I got this 279 00:14:32,880 --> 00:14:36,560 Speaker 3: job up in Yorkshire, moved up there, a safer seat 280 00:14:36,600 --> 00:14:39,880 Speaker 3: became available and I stood there. 281 00:14:40,360 --> 00:14:42,040 Speaker 1: Okay, so we after you ran the first time he 282 00:14:42,080 --> 00:14:43,880 Speaker 1: didn't win, and the second time he didn't win, you 283 00:14:43,880 --> 00:14:45,640 Speaker 1: didn't say maybe politics is not for me. 284 00:14:46,040 --> 00:14:46,240 Speaker 2: No. 285 00:14:46,880 --> 00:14:48,880 Speaker 3: The first time I stood it was sort of like 286 00:14:49,440 --> 00:14:51,520 Speaker 3: it was like a for me. It was the first 287 00:14:51,560 --> 00:14:55,840 Speaker 3: time I had done anything publicly political. 288 00:14:55,960 --> 00:14:56,160 Speaker 2: Yeah. 289 00:14:56,160 --> 00:14:59,240 Speaker 3: I'd always been along to my local branch meetings of 290 00:14:59,280 --> 00:15:02,480 Speaker 3: my party, gone along to Labor Party conference, but I'd 291 00:15:02,600 --> 00:15:05,640 Speaker 3: never had a sort of public platform for my politics. 292 00:15:05,640 --> 00:15:08,400 Speaker 3: And I thought, well, I'll give it a go. I'll 293 00:15:08,400 --> 00:15:10,400 Speaker 3: see what it's like and see if it's something that 294 00:15:10,440 --> 00:15:13,600 Speaker 3: I would like to do in the longer term. So 295 00:15:13,640 --> 00:15:15,520 Speaker 3: I was very I was young when I first died 296 00:15:15,520 --> 00:15:18,080 Speaker 3: for parliament. I think I was about twenty six. And 297 00:15:18,120 --> 00:15:22,000 Speaker 3: then the following year, sadly the MPI stood against he 298 00:15:22,080 --> 00:15:24,600 Speaker 3: died suddenly and so there was a by election, and 299 00:15:24,640 --> 00:15:28,320 Speaker 3: so I stood again for my party. But it was 300 00:15:28,320 --> 00:15:30,640 Speaker 3: twenty ten that I first got elected to parliament. 301 00:15:31,200 --> 00:15:33,240 Speaker 1: So it was two hundred and fifty years ago that 302 00:15:33,320 --> 00:15:38,840 Speaker 1: my country issued a declaration of independence and said to 303 00:15:38,920 --> 00:15:42,320 Speaker 1: your country, we're breaking away. Do you think if the 304 00:15:42,360 --> 00:15:45,920 Speaker 1: British government had said, look forget the taxes were imposing, 305 00:15:46,200 --> 00:15:49,800 Speaker 1: let's be friends, the UK would still be part of 306 00:15:49,840 --> 00:15:51,640 Speaker 1: the United States, or the US would be still part 307 00:15:51,680 --> 00:15:53,400 Speaker 1: of the UK. And would that make the world a 308 00:15:53,440 --> 00:15:55,680 Speaker 1: better place? Or you're happy with what happened. 309 00:15:57,920 --> 00:15:59,560 Speaker 3: I'm not going to go back to two hundred and 310 00:15:59,600 --> 00:16:03,200 Speaker 3: fifty he is and try and rewrite that period of history. 311 00:16:03,240 --> 00:16:07,240 Speaker 3: But I am really proud that the strong ties, the 312 00:16:07,320 --> 00:16:11,880 Speaker 3: cultural ties, the family ties, the business ties, the military 313 00:16:11,920 --> 00:16:15,520 Speaker 3: and intelligence ties between our country. There's no greater partnership 314 00:16:15,800 --> 00:16:18,600 Speaker 3: in the world than that between the UK UK and 315 00:16:18,760 --> 00:16:22,560 Speaker 3: the US, and that's been true under different prime ministers, 316 00:16:22,600 --> 00:16:26,320 Speaker 3: different presidents. We've got a very strong relationship between my 317 00:16:26,440 --> 00:16:30,760 Speaker 3: Prime Minister Kirstama and your President Donald Trump. I think 318 00:16:30,760 --> 00:16:33,720 Speaker 3: that serves both of our countries well. Doesn't mean always 319 00:16:33,720 --> 00:16:36,080 Speaker 3: going to agree on everything, and that's the thing about 320 00:16:36,320 --> 00:16:38,880 Speaker 3: the closest of friends. You don't always have to agree 321 00:16:39,000 --> 00:16:43,080 Speaker 3: on everything. You can exchange views and that is a 322 00:16:43,120 --> 00:16:47,320 Speaker 3: healthy thing to do, but recognizing that you know what 323 00:16:47,520 --> 00:16:49,800 Speaker 3: binds us together is so much stronger. 324 00:16:49,760 --> 00:16:52,240 Speaker 1: Now in the United States, we often have a thing 325 00:16:52,360 --> 00:16:55,640 Speaker 1: called c Span, and on C SPAN we often show 326 00:16:55,920 --> 00:16:58,640 Speaker 1: the Prime Minister's I guess the debates are. 327 00:16:58,840 --> 00:17:00,920 Speaker 2: Prime Minister's questions questions Uh huh. 328 00:17:01,120 --> 00:17:05,040 Speaker 1: And I've always wondered does a prime minister really know 329 00:17:05,119 --> 00:17:06,600 Speaker 1: the answers to those questions? 330 00:17:06,640 --> 00:17:10,280 Speaker 3: So Prime Minister's Questions is a big weekly event in 331 00:17:10,359 --> 00:17:13,520 Speaker 3: our Parliament and every week, for half an hour thirty 332 00:17:13,560 --> 00:17:16,560 Speaker 3: five minutes, the Prime Minister takes six questions from the 333 00:17:16,600 --> 00:17:20,119 Speaker 3: leader of the opposition, two questions from the third party, 334 00:17:20,200 --> 00:17:24,320 Speaker 3: the Liberal Democrats, and then questions from assortment of backbench 335 00:17:24,480 --> 00:17:28,919 Speaker 3: MPs on both sides, and some of the questions. The 336 00:17:28,960 --> 00:17:31,560 Speaker 3: Prime Minister will have an idea what the MP is 337 00:17:31,560 --> 00:17:33,600 Speaker 3: going to ask because it's one of his own MPs 338 00:17:34,480 --> 00:17:37,320 Speaker 3: the leader of the opposition, and the opposition MP's no idea, 339 00:17:37,720 --> 00:17:40,480 Speaker 3: and so the Prime Minister has to be really well prepared. 340 00:17:40,600 --> 00:17:42,560 Speaker 3: You can sort of have a guess of what the 341 00:17:42,920 --> 00:17:45,199 Speaker 3: leader of the Opposition is going to go on. We 342 00:17:45,320 --> 00:17:47,960 Speaker 3: have got a pretty adversarial political set up in the 343 00:17:48,080 --> 00:17:50,200 Speaker 3: UK in the House of Commons, you've got the Green 344 00:17:50,240 --> 00:17:53,399 Speaker 3: benches on both sides, you've got big table in the middle, 345 00:17:53,600 --> 00:17:56,719 Speaker 3: and you are two sword lengths apart from the opposition. 346 00:17:57,280 --> 00:18:00,679 Speaker 3: We don't have swords with us in Parliament. But the 347 00:18:00,760 --> 00:18:03,560 Speaker 3: idea is, you know, you spar with words, not with 348 00:18:04,480 --> 00:18:08,120 Speaker 3: not with physical weapons. And it does get quite heated 349 00:18:08,280 --> 00:18:09,360 Speaker 3: the exchanges. 350 00:18:09,640 --> 00:18:12,960 Speaker 1: In the US we have an aging population and without 351 00:18:13,040 --> 00:18:16,600 Speaker 1: immigration very much now our population is aging much more 352 00:18:16,640 --> 00:18:19,080 Speaker 1: than it has in the past. Does the UK have 353 00:18:19,119 --> 00:18:21,199 Speaker 1: an aging population issue as well or not? 354 00:18:21,800 --> 00:18:25,520 Speaker 3: Yes, we do. I don't think it is stark as 355 00:18:25,560 --> 00:18:31,600 Speaker 3: in some other countries. I think that though immigration policy 356 00:18:31,800 --> 00:18:36,000 Speaker 3: it is a challenge for all Western countries to get 357 00:18:36,000 --> 00:18:40,000 Speaker 3: that balance right. And in Britain we are building an 358 00:18:40,080 --> 00:18:43,639 Speaker 3: immigration system and a visa system that is going to 359 00:18:43,680 --> 00:18:46,919 Speaker 3: be all about and is all about attracting the best 360 00:18:47,000 --> 00:18:50,520 Speaker 3: talent into the UK because not just a numbers game, 361 00:18:50,760 --> 00:18:56,200 Speaker 3: it's the quality of the workforce that you're bringing into 362 00:18:56,200 --> 00:18:59,960 Speaker 3: the UK. And we believe if you're attracting the top packer, 363 00:19:00,040 --> 00:19:03,240 Speaker 3: demics and researchers, the top entrepreneurs, the people who went 364 00:19:03,280 --> 00:19:06,639 Speaker 3: to the best universities in the world, you're not displacing jobs. 365 00:19:06,640 --> 00:19:12,960 Speaker 3: What you're doing is creating more wealth and opportunity. And 366 00:19:13,040 --> 00:19:16,400 Speaker 3: so you know, we're doing a number of visa waivers 367 00:19:16,440 --> 00:19:19,400 Speaker 3: for fee waivers for the top talent in the world 368 00:19:19,480 --> 00:19:20,960 Speaker 3: to come to the UK and we want to send 369 00:19:21,000 --> 00:19:23,679 Speaker 3: out the message loud and clear that Britain wants to 370 00:19:23,680 --> 00:19:26,119 Speaker 3: be a magnet for the best talent in the world. 371 00:19:26,600 --> 00:19:30,200 Speaker 1: Respect to the economy, here is it your view that 372 00:19:30,280 --> 00:19:35,000 Speaker 1: the UK economy is going to grow somewhat like the 373 00:19:35,040 --> 00:19:38,360 Speaker 1: EU economy. You're not going to outgrow we are. 374 00:19:38,520 --> 00:19:43,880 Speaker 3: We are outmat Last year we outgrew Italy, France and 375 00:19:44,240 --> 00:19:46,879 Speaker 3: Germany and I think that will continue to be the 376 00:19:46,920 --> 00:19:50,600 Speaker 3: same this year. You know, we are an open trading 377 00:19:50,640 --> 00:19:54,679 Speaker 3: economy with trade deals with emerging markets around the world, 378 00:19:54,880 --> 00:19:57,000 Speaker 3: the best trade deal with the US. 379 00:19:57,160 --> 00:19:58,280 Speaker 2: We've got great. 380 00:19:58,040 --> 00:20:02,119 Speaker 3: Innovation going on through our universeities and with our entrepreneurs 381 00:20:02,119 --> 00:20:07,080 Speaker 3: and founders. In the UK we are as services based economy, 382 00:20:07,080 --> 00:20:11,119 Speaker 3: but also with amazing advanced manufacturing as well, So I 383 00:20:11,160 --> 00:20:13,280 Speaker 3: think we are set up for success in the UK. 384 00:20:13,680 --> 00:20:16,080 Speaker 1: For foreign investors, people who live in the United States 385 00:20:16,200 --> 00:20:19,600 Speaker 1: or on the continent in Europe or China or Asia. 386 00:20:19,840 --> 00:20:23,000 Speaker 1: Why should they invest their money in the UK? Is 387 00:20:23,040 --> 00:20:25,760 Speaker 1: the growth rates good enough to attract capital? Are the 388 00:20:25,840 --> 00:20:29,600 Speaker 1: regulations fair enough and easy enough? Why should somebody invest 389 00:20:29,600 --> 00:20:30,000 Speaker 1: in the UK? 390 00:20:30,200 --> 00:20:33,000 Speaker 3: Well, the UK stock market was one of the best 391 00:20:33,040 --> 00:20:35,800 Speaker 3: performing stock markets in the world last year. The foot 392 00:20:35,880 --> 00:20:39,560 Speaker 3: Sea one hundred went up by just over twenty one percent, 393 00:20:39,640 --> 00:20:44,879 Speaker 3: so pretty good returns on your investment. We have got 394 00:20:44,920 --> 00:20:47,679 Speaker 3: in the UK four of the top universities in the world, 395 00:20:47,840 --> 00:20:51,959 Speaker 3: with some amazing businesses spinning out of those universities in 396 00:20:52,080 --> 00:20:57,240 Speaker 3: life sciences, in quantum in AI, increasingly in the defense 397 00:20:57,320 --> 00:21:02,040 Speaker 3: sector and dual use technologies. Tons of exciting stuff happening 398 00:21:02,520 --> 00:21:06,720 Speaker 3: in the UK. We've got some amazing unicorn businesses that 399 00:21:06,760 --> 00:21:09,160 Speaker 3: have started and are now scaling up in the UK, 400 00:21:09,480 --> 00:21:11,800 Speaker 3: and we're making it easier for businesses to list and 401 00:21:11,880 --> 00:21:15,120 Speaker 3: to raise finance in Britain. So this is an exciting time. 402 00:21:15,320 --> 00:21:17,320 Speaker 3: You think about all of the growth sectors in the 403 00:21:17,359 --> 00:21:21,240 Speaker 3: economy today and those are all areas where Britain has 404 00:21:21,359 --> 00:21:24,640 Speaker 3: real advantages, real strengths. And so that's why I think 405 00:21:24,680 --> 00:21:27,160 Speaker 3: that this is going to be Britain's year, and I'm 406 00:21:27,240 --> 00:21:27,960 Speaker 3: really confident. 407 00:21:28,000 --> 00:21:29,879 Speaker 1: So what do you do in your spare time? I 408 00:21:29,880 --> 00:21:32,960 Speaker 1: assume you can't be Chancellor of the Exchequer twenty four 409 00:21:32,960 --> 00:21:35,280 Speaker 1: hours a day, seven days a week. Are you an athlete, 410 00:21:35,560 --> 00:21:38,399 Speaker 1: you collect anything? Do you have any hobbies? What do 411 00:21:38,440 --> 00:21:39,879 Speaker 1: you do on the outside. 412 00:21:40,119 --> 00:21:42,800 Speaker 3: Well, I've got two children who are aged twelve and ten, 413 00:21:43,520 --> 00:21:48,000 Speaker 3: so they keep me pretty busy when I'm not working 414 00:21:48,280 --> 00:21:50,359 Speaker 3: and I love spending time with them. I had a 415 00:21:50,440 --> 00:21:52,720 Speaker 3: wonderful time over Christmas the New Year where I got 416 00:21:52,720 --> 00:21:55,680 Speaker 3: to indulge in a bit more cooking, which I don't 417 00:21:55,840 --> 00:21:59,480 Speaker 3: have a time for very much with the usual cut 418 00:21:59,520 --> 00:22:02,879 Speaker 3: and thrust of work and politics. Also a keen runner 419 00:22:03,400 --> 00:22:06,000 Speaker 3: and try and go running several times a week, and 420 00:22:06,280 --> 00:22:09,760 Speaker 3: very lucky, very blessed in London to live near the 421 00:22:09,760 --> 00:22:13,919 Speaker 3: beautiful royal parks in London and so make use of 422 00:22:14,000 --> 00:22:15,080 Speaker 3: running through those. 423 00:22:15,520 --> 00:22:18,080 Speaker 1: If you're running in the park, who people come up 424 00:22:18,080 --> 00:22:20,439 Speaker 1: to you and say lower taxes or anything like that? 425 00:22:20,480 --> 00:22:21,320 Speaker 1: Has that ever happened? 426 00:22:21,760 --> 00:22:23,679 Speaker 3: I try and go running quite early in the morning 427 00:22:23,720 --> 00:22:26,800 Speaker 3: to avoid that sort of thing and keep my head down. 428 00:22:26,880 --> 00:22:29,360 Speaker 1: And your children call you chancellor or they just call 429 00:22:29,440 --> 00:22:29,840 Speaker 1: you mom. 430 00:22:30,880 --> 00:22:33,080 Speaker 3: I mean, mom is about the politest thing they'll call me. 431 00:22:34,560 --> 00:22:38,680 Speaker 3: They're wonderful children, and they absolutely keep me grounded. They've 432 00:22:38,720 --> 00:22:42,440 Speaker 3: got very strong views and very strong principles already themselves. 433 00:22:42,560 --> 00:22:43,840 Speaker 2: I'm incredibly proud of them. 434 00:22:43,920 --> 00:22:46,600 Speaker 1: Final question is I've often thought the best titles in 435 00:22:46,640 --> 00:22:50,000 Speaker 1: the world for a job you can have are Supreme Allet, Commander, 436 00:22:50,720 --> 00:22:54,160 Speaker 1: President of the World Bank, Chief Justice of the United States, 437 00:22:54,520 --> 00:22:57,960 Speaker 1: and Chancellor of the Exchequer. So do your friends call 438 00:22:58,040 --> 00:23:03,080 Speaker 1: you Rachel? They call you chancellor, miss xchecker. What do 439 00:23:03,160 --> 00:23:05,480 Speaker 1: your friends call you now that you're Chancellor of the exchecker? 440 00:23:06,720 --> 00:23:09,840 Speaker 3: I'm just still Rachel to them. But the other day 441 00:23:11,080 --> 00:23:15,000 Speaker 3: I bumped into the head of six, our security service, 442 00:23:15,040 --> 00:23:18,200 Speaker 3: and I was with my twelve year old and I said, 443 00:23:18,480 --> 00:23:23,160 Speaker 3: you know, this woman is the head of six our 444 00:23:23,200 --> 00:23:24,119 Speaker 3: security service. 445 00:23:24,600 --> 00:23:25,840 Speaker 2: And my daughter. 446 00:23:25,640 --> 00:23:28,320 Speaker 3: Said, that is a much cooler job than my mom's, 447 00:23:28,480 --> 00:23:30,040 Speaker 3: so I was certainly put in my place. 448 00:23:32,480 --> 00:23:35,000 Speaker 1: Thanks for listening to hear more of my interviews. You 449 00:23:35,040 --> 00:23:39,159 Speaker 1: can subscribe and download my podcast on Spotify, Apple, or 450 00:23:39,200 --> 00:23:40,000 Speaker 1: wherever you listen