1 00:00:00,000 --> 00:00:02,640 Speaker 1: I tend to make a time for Pebog TV and radio. Chancellor, 2 00:00:03,120 --> 00:00:05,840 Speaker 1: we've heard you say already that the public finances in 3 00:00:05,880 --> 00:00:08,800 Speaker 1: a pretty precarious presition. So I want to ask you. 4 00:00:09,320 --> 00:00:12,039 Speaker 1: Many Labor MPs really want you to lift the two 5 00:00:12,119 --> 00:00:14,400 Speaker 1: child benefit caps. And we hear that in que the 6 00:00:14,440 --> 00:00:17,040 Speaker 1: Prime Minister, and we afford to do that. 7 00:00:18,120 --> 00:00:20,400 Speaker 2: Well, no one needs to tell me how important child 8 00:00:20,400 --> 00:00:23,680 Speaker 2: poverty is. I came into the Labor Party because I've 9 00:00:23,680 --> 00:00:26,560 Speaker 2: wanted children from all backgrounds to have a good start 10 00:00:26,600 --> 00:00:30,120 Speaker 2: in life, and we've already made strides in reducing child 11 00:00:30,160 --> 00:00:33,640 Speaker 2: poverty in this parliament. We're rolling out free breakfast clubs 12 00:00:33,600 --> 00:00:36,680 Speaker 2: are all primary schools, extending free school meals to an 13 00:00:36,720 --> 00:00:39,440 Speaker 2: additional five hundred thousand children with kept the cost of 14 00:00:39,479 --> 00:00:42,080 Speaker 2: school uniform. We've increase the national living wage and the 15 00:00:42,159 --> 00:00:45,080 Speaker 2: national minimum wage. I would I like to do more, yes, 16 00:00:45,200 --> 00:00:47,519 Speaker 2: but of course we haven't always got to explain how 17 00:00:47,560 --> 00:00:51,120 Speaker 2: policies will be paid for. We've got the report from 18 00:00:51,120 --> 00:00:54,480 Speaker 2: the Child Poverty Task Force later this year and we'll 19 00:00:54,520 --> 00:00:58,640 Speaker 2: respond to that. But it is important for all families 20 00:00:59,280 --> 00:01:02,680 Speaker 2: that the the numbers add up, and that's always what 21 00:01:02,680 --> 00:01:05,080 Speaker 2: I've done as Chancellor of the Exchequer. 22 00:01:04,800 --> 00:01:07,120 Speaker 1: And that's been a really strong message from you throughout. 23 00:01:07,240 --> 00:01:10,640 Speaker 1: Does your party, though, understand how important it is to 24 00:01:10,840 --> 00:01:12,960 Speaker 1: make the numbers out of stand on the right side 25 00:01:12,959 --> 00:01:13,600 Speaker 1: of the bond market. 26 00:01:14,280 --> 00:01:18,840 Speaker 2: We campaigned the election on economic stability fiscal responsibility, and 27 00:01:18,959 --> 00:01:21,560 Speaker 2: we did that for a reason because it was ordinary 28 00:01:21,560 --> 00:01:24,399 Speaker 2: working people and businesses who paid the price for the 29 00:01:24,440 --> 00:01:28,040 Speaker 2: economic mismanagement in the last parliament, when interest rates went 30 00:01:28,040 --> 00:01:31,000 Speaker 2: through the roof, when inflation got out of control, when 31 00:01:31,080 --> 00:01:34,760 Speaker 2: pensions are put in peril. And because of that and 32 00:01:34,800 --> 00:01:39,520 Speaker 2: my party, the Labor Party, accepted the crucial importance of 33 00:01:39,600 --> 00:01:45,400 Speaker 2: economic discipline to support working families. It's not intention economic responsibility, 34 00:01:45,560 --> 00:01:47,800 Speaker 2: so our commitments to make people better off it is 35 00:01:47,960 --> 00:01:50,200 Speaker 2: part of that commitment. Because there's five cuts and interest 36 00:01:50,240 --> 00:01:52,120 Speaker 2: rates as you know by the Bank of England, but 37 00:01:52,120 --> 00:01:54,760 Speaker 2: they've only been possible because of that stability We returned 38 00:01:54,800 --> 00:01:55,520 Speaker 2: to the economy. 39 00:01:55,760 --> 00:01:58,880 Speaker 1: Look on winter fuel payments, on pay rises for doctors, 40 00:01:58,920 --> 00:02:01,920 Speaker 1: on welfare reform. You've seemed to give, but when are 41 00:02:01,960 --> 00:02:03,400 Speaker 1: you going to take away? When are you going to 42 00:02:03,440 --> 00:02:06,320 Speaker 1: choose the bond market over the left of your party? 43 00:02:07,080 --> 00:02:10,040 Speaker 2: Well, if you look today at my conference speech. I'll 44 00:02:10,080 --> 00:02:12,800 Speaker 2: be setting out a youth guarantee because at the moment 45 00:02:12,800 --> 00:02:16,079 Speaker 2: we've got a million young people who are not in education, 46 00:02:16,160 --> 00:02:18,919 Speaker 2: employment or training. That's one in eight young people. I'm 47 00:02:18,919 --> 00:02:21,200 Speaker 2: not going to let that stand. It is a waste 48 00:02:21,200 --> 00:02:23,480 Speaker 2: of their talent and potential. But it's also a huge 49 00:02:23,520 --> 00:02:26,000 Speaker 2: waste for business and a huge way for taxpayers that 50 00:02:26,040 --> 00:02:29,520 Speaker 2: we are subsidizing young people to be out of work 51 00:02:30,120 --> 00:02:33,120 Speaker 2: when we want them to be in training or in 52 00:02:33,240 --> 00:02:35,840 Speaker 2: paid employment. And that's one example of how we're reforming 53 00:02:35,840 --> 00:02:39,720 Speaker 2: the welfare state to get the costs down and at 54 00:02:39,760 --> 00:02:42,160 Speaker 2: the same time are bringing more people into work. 55 00:02:42,280 --> 00:02:43,720 Speaker 1: What would you do about it if someone said they 56 00:02:43,720 --> 00:02:45,440 Speaker 1: don't want to work in the hair hope, well, that's 57 00:02:45,480 --> 00:02:46,160 Speaker 1: not acceptable. 58 00:02:46,320 --> 00:02:50,239 Speaker 2: You know, like welfare is not an alternative to work. 59 00:02:50,520 --> 00:02:53,400 Speaker 2: The welfare state is there if you need it. You 60 00:02:53,440 --> 00:02:55,800 Speaker 2: can't say to actually, I'd rather remain on benefits than 61 00:02:55,880 --> 00:02:58,560 Speaker 2: take that job opportunity. And that's a really important part 62 00:02:58,560 --> 00:03:00,520 Speaker 2: of what I'm setting out today, built on what the 63 00:03:00,520 --> 00:03:03,160 Speaker 2: previous labor government did under Tony Blair with the New 64 00:03:03,200 --> 00:03:05,840 Speaker 2: Deal for Young People that said there was not an 65 00:03:05,880 --> 00:03:08,520 Speaker 2: option just to stay on benefits, and that's the same 66 00:03:08,680 --> 00:03:09,639 Speaker 2: with me as Chancellor. 67 00:03:09,720 --> 00:03:12,000 Speaker 1: Okay, look, I don't expect you to pre empty budget 68 00:03:12,000 --> 00:03:14,280 Speaker 1: with me, Chancellor, but you did promise business that there'd 69 00:03:14,280 --> 00:03:16,560 Speaker 1: be no more borrowing and no more tax rises. Is 70 00:03:16,560 --> 00:03:17,519 Speaker 1: that still true? 71 00:03:17,800 --> 00:03:19,959 Speaker 2: Well, what I did last year at the budget was 72 00:03:20,080 --> 00:03:23,120 Speaker 2: draw a line under the economic and fiscal mismanagement of 73 00:03:23,160 --> 00:03:27,639 Speaker 2: the previous government, and that did require difficult decisions on taxes, so. 74 00:03:27,560 --> 00:03:28,399 Speaker 1: There won't be more of them. 75 00:03:28,560 --> 00:03:32,320 Speaker 2: Well, I think all of your viewers can see that 76 00:03:32,919 --> 00:03:35,720 Speaker 2: the last year has bought his fair share of global challenges, 77 00:03:36,160 --> 00:03:40,720 Speaker 2: the global cost of borrowing, the tariffs from the United States, 78 00:03:40,760 --> 00:03:43,960 Speaker 2: the ongoing conflicts in the Middle East, the disruptions to 79 00:03:44,120 --> 00:03:48,440 Speaker 2: supply chains, and Russia's intensified aggression. I'm Chanceller in the 80 00:03:48,440 --> 00:03:50,120 Speaker 2: world as it is, not as the world as I 81 00:03:50,200 --> 00:03:51,880 Speaker 2: might worship to be, and I had to respond to 82 00:03:51,920 --> 00:03:55,240 Speaker 2: those But those fiscal rules that we set out in 83 00:03:55,280 --> 00:03:58,200 Speaker 2: the election, to pay for day to day spending through 84 00:03:58,240 --> 00:04:01,000 Speaker 2: tax receipts, to get deck down as a share of GDP, 85 00:04:01,480 --> 00:04:04,840 Speaker 2: to get the deficit down this year, those commitments stand. 86 00:04:05,400 --> 00:04:09,160 Speaker 2: And I'm also determined to bring down inflation further because 87 00:04:09,160 --> 00:04:12,160 Speaker 2: I recognize that inflation at three point eight percent is 88 00:04:12,160 --> 00:04:14,560 Speaker 2: still too high, so that is a global challenge as well. 89 00:04:14,640 --> 00:04:15,600 Speaker 2: But as we get that. 90 00:04:15,600 --> 00:04:18,320 Speaker 1: Down, those commitments stand. You see, the manifesto stands. In 91 00:04:18,360 --> 00:04:21,640 Speaker 1: the manifesto, you said will not increase national insurance, the 92 00:04:21,680 --> 00:04:24,240 Speaker 1: basic higher or additional rates of income tax or V 93 00:04:24,360 --> 00:04:26,839 Speaker 1: eight Yes or no? Does that still hold? 94 00:04:27,120 --> 00:04:28,920 Speaker 2: Yes? It does. And we also made that commitment around 95 00:04:28,920 --> 00:04:32,560 Speaker 2: corporation tax as well. And those commitments are spanned and 96 00:04:32,600 --> 00:04:35,359 Speaker 2: they stand for a reason because working people paid a 97 00:04:35,400 --> 00:04:37,360 Speaker 2: heavy price in the last parliament. It was the worst 98 00:04:37,360 --> 00:04:41,360 Speaker 2: parliament on record for living standards. It's still the biggest 99 00:04:41,400 --> 00:04:45,719 Speaker 2: challenge for working people. So those commitments stand. But what 100 00:04:45,800 --> 00:04:48,240 Speaker 2: I want your viewers to know that my commitments to 101 00:04:48,360 --> 00:04:52,680 Speaker 2: economic stability, to fiscal responsibility and to those fiscal rules 102 00:04:52,839 --> 00:04:56,200 Speaker 2: they absolutely stand because they are the bedrof of stability 103 00:04:56,240 --> 00:04:58,760 Speaker 2: and only with stability can we grow the economy. 104 00:04:58,839 --> 00:05:00,240 Speaker 1: So we need to know where you're going to The 105 00:05:00,279 --> 00:05:02,719 Speaker 1: money from the French are in a similar fiscal fine, 106 00:05:02,760 --> 00:05:05,680 Speaker 1: they're similar seemingly on the brink of a wealth tax. 107 00:05:06,160 --> 00:05:08,479 Speaker 1: Is it time for a mansion tax? You're in the UK. 108 00:05:08,600 --> 00:05:11,520 Speaker 2: But I would like to differentiate ourselves from what's happening 109 00:05:11,520 --> 00:05:15,279 Speaker 2: in other countries around the world are here, yes, but 110 00:05:15,320 --> 00:05:18,560 Speaker 2: they have struggle to get a budget through, and we 111 00:05:18,680 --> 00:05:22,839 Speaker 2: successfully got the budget through last year and the spending reviewer. 112 00:05:22,920 --> 00:05:25,520 Speaker 2: Many people said that wouldn't be possible because we had 113 00:05:25,560 --> 00:05:28,359 Speaker 2: to make difficult decisions. But I'm up for difficult decisions 114 00:05:28,400 --> 00:05:30,400 Speaker 2: when they are in the national interest and I will 115 00:05:30,400 --> 00:05:35,320 Speaker 2: continue to take them. We already taxed wealth in Britain 116 00:05:35,560 --> 00:05:41,800 Speaker 2: with capital gains tax, with inheritance tax. The budget last year. 117 00:05:42,160 --> 00:05:45,000 Speaker 2: As you know, we got rid of the non domicile 118 00:05:45,040 --> 00:05:49,039 Speaker 2: status in the tax system. We put VAT on the 119 00:05:49,080 --> 00:05:52,440 Speaker 2: school fees, we increase taxes on private jets. We already 120 00:05:52,480 --> 00:05:55,080 Speaker 2: have taxes on wealthy people in Britain. I don't think 121 00:05:55,080 --> 00:05:57,200 Speaker 2: we need to stand alone with wealth tax, and in fact, 122 00:05:57,320 --> 00:06:00,000 Speaker 2: countries that do have that don't have those other taxes. 123 00:06:00,040 --> 00:06:01,440 Speaker 2: I'm not even sure it would work. 124 00:06:01,320 --> 00:06:03,440 Speaker 1: Okay, And there's been growing concerned in the city as 125 00:06:03,440 --> 00:06:06,479 Speaker 1: well that you could target the banking sector for high attack. 126 00:06:06,880 --> 00:06:09,960 Speaker 2: I think we probably shouldn't go through every single it's possible, 127 00:06:10,480 --> 00:06:12,719 Speaker 2: what's your message to the site. I think that from 128 00:06:12,760 --> 00:06:16,160 Speaker 2: both of my Mansion House speeches, the city know how 129 00:06:16,240 --> 00:06:18,839 Speaker 2: much I value the contribution that they make both through 130 00:06:18,880 --> 00:06:22,520 Speaker 2: direct employment and investment, but also supporting the wider economy 131 00:06:22,560 --> 00:06:26,640 Speaker 2: with an efficient allocation of capital. And the regulatory reforms 132 00:06:26,680 --> 00:06:30,080 Speaker 2: that I bought in at Chancellor are all about promoting 133 00:06:30,200 --> 00:06:34,080 Speaker 2: growth and job creation and businesses coming to Britain in 134 00:06:34,160 --> 00:06:35,160 Speaker 2: financial services. 135 00:06:35,279 --> 00:06:37,719 Speaker 1: Chancellor, you've also already said that you would be open 136 00:06:37,800 --> 00:06:41,680 Speaker 1: to just having one OBR forecast per year. You accused 137 00:06:41,760 --> 00:06:44,960 Speaker 1: Liz Trust right here on Boomberg TV of sidelining the OBR. 138 00:06:45,240 --> 00:06:46,159 Speaker 1: How is this different? 139 00:06:46,320 --> 00:06:49,680 Speaker 2: Well, the International Monetary Fund have said that there should 140 00:06:49,720 --> 00:06:51,800 Speaker 2: be one physical event a year, and I committed to 141 00:06:51,800 --> 00:06:55,560 Speaker 2: that in the manifesto and have done since. I think 142 00:06:55,600 --> 00:06:58,599 Speaker 2: that their recommendation is a sensible one. That will have 143 00:06:58,720 --> 00:07:03,240 Speaker 2: to mean changes in the second forecast, but that's not 144 00:07:03,320 --> 00:07:07,599 Speaker 2: about reducing transparency. That is about better economics policymaking, so 145 00:07:07,680 --> 00:07:10,880 Speaker 2: we're not having to change policy and giving that uncertainty 146 00:07:10,960 --> 00:07:13,400 Speaker 2: every six months for businesses. 147 00:07:13,720 --> 00:07:16,600 Speaker 1: Just finally, how much worse the polls need to get 148 00:07:16,800 --> 00:07:19,680 Speaker 1: for you to accept that we need to replace Kissed Armer. 149 00:07:20,200 --> 00:07:23,679 Speaker 2: But Kirs Starmer got elected with a massive mandate last year. 150 00:07:24,160 --> 00:07:27,080 Speaker 2: If someone has said fifteen months ago that we would 151 00:07:27,120 --> 00:07:29,200 Speaker 2: be the fastest growing economy in the G seven. We'd 152 00:07:29,240 --> 00:07:31,400 Speaker 2: have five cuts in interest rates, we had done trade 153 00:07:31,400 --> 00:07:34,640 Speaker 2: deals with the US, India and the EU. The wages 154 00:07:34,680 --> 00:07:36,760 Speaker 2: would have risen faster in the first ten months as 155 00:07:36,800 --> 00:07:39,000 Speaker 2: this labor government than the first year ten years of 156 00:07:39,080 --> 00:07:41,680 Speaker 2: the previous conservative government. I think most people have said, 157 00:07:42,280 --> 00:07:44,600 Speaker 2: I don't think so, Rachel. We've achieved those things with 158 00:07:44,720 --> 00:07:47,160 Speaker 2: Kira as Prime Minister, and we'll get on and continue 159 00:07:47,160 --> 00:07:47,480 Speaker 2: the job.