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Speaker 1: I'm so pleased to say joining us right now is

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Speaker 1: Jeremy Hind UK Chancellor of the Exchequer. Thank you so

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Speaker 1: much for being with us. I am curious there is

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Speaker 1: this agreement that you just came to. Can you explain

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Speaker 1: why it was so important to come to this financial

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Speaker 1: agreement between Switzerland and the United Kingdom?

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Speaker 2: Hi, Lisa, thank you for inviting me onto the show.

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Speaker 2: This is a very groundbreaking agreement. It's never happened anywhere

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Speaker 2: in the world before, and it links two of Europe's

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Speaker 2: largest financial centers, City of London and Zurich. And instead

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Speaker 2: of doing what previous trade deals and mutual recognition deals do,

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Speaker 2: which is try to align legal frameworks, what we're doing

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Speaker 2: here is we're saying that in the UK we will

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Speaker 2: allow Swiss companies to operate following Swiss regulatory structures and rules,

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Speaker 2: and in Switzerland they will allow British based companies to

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Speaker 2: operate following UK rules and regulars without the need for

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Speaker 2: both countries to align their legal frameworks. And so in

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Speaker 2: terms of the wholesale insurance market, asset management banking, this

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Speaker 2: is a really significant deal but also could be a

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Speaker 2: template for the kind of deals that the UK does

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Speaker 2: with other countries going forward.

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Speaker 1: That's exactly where I was going to go, Chancellor, Who's next?

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Speaker 1: What other country?

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Speaker 3: Well, we're open to discussions with anyone.

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Speaker 2: What I would say is it was much easier to

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Speaker 2: do this deal with Switzerland because there's a lot of

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Speaker 2: trust between Switzerland and the UK. We've been friends for

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Speaker 2: a very long time and there's a lot of confidence

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Speaker 2: in each other's legal systems and regulatory structures. But we're

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Speaker 2: open to this kind of discussion with any countries all

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Speaker 2: over the world. Anything that boosts choice and competition, whilst

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Speaker 2: respecting our sovereignty and our ability to make our own

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Speaker 2: rules and regulations is something we are happy to talk.

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Speaker 1: Tess how important is this given the fact that there

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Speaker 1: have been discussions about financial hubs to Paris or moving

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Speaker 1: to Frankfurt our Berlin, how much is it important to

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Speaker 1: get some of these connections in order to boost tax

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Speaker 1: revenue and keep the banking sector in the United Kingdom.

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Speaker 2: Well, we've had a lot of discussion post Brexit of

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Speaker 2: people banks operations potentially moving out of London, but it

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Speaker 2: hasn't materialized anything.

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Speaker 3: Like the scale that people predicted.

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Speaker 2: London has shown itself to be very resilient and if

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Speaker 2: you look at what's happened in the last year, what

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Speaker 2: we've done in the UK's we've shown we're going to

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Speaker 2: be hungry to keep all that business that's come to London.

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Speaker 2: We are very committed to financial services in the UK.

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Speaker 2: We passed the Financial Services and Markets Act. We are

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Speaker 2: changing the rules for prospectuses and for all sorts of

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Speaker 2: the rules around IPOs to make the London Stock Exchange

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Speaker 2: more competitive.

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Speaker 3: We've got the mentioned House reforms which is going to

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Speaker 3: unlock a lot.

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Speaker 2: Of capital into growth businesses from pension funds.

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Speaker 3: So we are really motoring in the UK. We're hungry

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Speaker 3: to attract.

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Speaker 2: Business all around the world and this deal with Switzerland

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Speaker 2: is just another step in that direction.

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Speaker 1: How much are you looking to some of these revenues though,

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Speaker 1: to be able to enact tax cuts. You're talking about

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Speaker 1: additional tax CITs coming down the pike. Are you still

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Speaker 1: planning that and specifically where are you planning to have

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Speaker 1: those tax cuits. Is it going to be with the

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Speaker 1: savings or property other areas well.

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Speaker 2: Richie Sunak and I have said that we would like

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Speaker 2: to cut the tax burden more if we're able to

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Speaker 2: do so. But we won't be in a position to

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Speaker 2: do that until much closer to the spring budget. We

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Speaker 2: haven't announced the date for that yet, but you know,

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Speaker 2: we won't find out what the latest forecasts are from

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Speaker 2: the Office of Budget Responsibility to know whether we're in

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Speaker 2: a position to do that for some time. But we

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Speaker 2: would like to bring down the tax burden in a

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Speaker 2: way that is responsible if we're able to do so.

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Speaker 2: But right now our priority is to bring down inflation.

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Speaker 2: We have really good news yesterday three point nine percent inflation,

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Speaker 2: beating market expectations.

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Speaker 3: By some way.

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Speaker 2: That is because we have shown discipline in government. We've

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Speaker 2: taken decisions that have supported the Bank of England and

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Speaker 2: what they're trying to do with interest rates to bring down.

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Speaker 3: Inflation, and it's still above target.

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Speaker 2: We've still got more work to do, so that will

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Speaker 2: remain our primary focus.

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Speaker 1: There is a concern about strikes. There was another strike

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Speaker 1: shutting down some of the train systems or recently. That

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Speaker 1: was some of the reports this morning. Doctors are striking again.

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Speaker 1: Are you prepared to start to increase materially increase salaries

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Speaker 1: at a time when you're still concerned also about inflation.

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Speaker 3: Well, that's a.

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Speaker 2: Very important question to ask, and what I would say

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Speaker 2: is I put it the other way around.

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Speaker 3: Actually, I would say the reason.

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Speaker 2: Why we're having these strikes is because when I became

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Speaker 2: chancellor after what Putin did in Ukraine, we had inflation

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Speaker 2: of eleven.

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Speaker 3: Point one percent and people can.

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Speaker 2: See their living standards eroding because the price of a

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Speaker 2: weekly shop, the price of filling up the car is

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Speaker 2: going up. So the way that you bring back industrial

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Speaker 2: harmony is to bring down inflation, and that is why

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Speaker 2: it is the primary focus for myself and Rishie Sunak.

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Speaker 2: And when it comes to talking to junior doctors in

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Speaker 2: the NHS or train drivers, we're always prepared to be reasonable,

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Speaker 2: pragmatic and sensible.

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Speaker 3: We've always said we are not going to agree to.

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Speaker 2: Pay deals that threatened our progress in bringing down inflation,

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Speaker 2: because that doesn't help anyone if you agree to pay

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Speaker 2: deals that mean that next year's inflation ends up being higher.

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Speaker 2: But you know, we are willing to talk to anyone

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Speaker 2: at any time to try and come to a reasonable solution.

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Speaker 3: And that's why more than a million employees in.

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Speaker 2: The NHS have agreed to deals by unions in many

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Speaker 2: other parts of the economy have agreed to deals, and.

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Speaker 3: We hope the small number of unions that are holding

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Speaker 3: out will also do the same.

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Speaker 1: I do want to just finish up. From a market's perspective,

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Speaker 1: the markets are now pricing in almost six rate cuts

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Speaker 1: by the Bank of England next year as they look

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Speaker 1: at the pace of disinflation. Is that your base case

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Speaker 1: as well?

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Speaker 3: Well?

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Speaker 2: Chancellors never comment on interest rate movements the reasons that

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Speaker 2: you'll understand, Lisa, But what I will say is that

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Speaker 2: I think people will start feeling more optimistic about their

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Speaker 2: own family finances when they can see interest rates on

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Speaker 2: a downward trajectory. And the best thing I can do

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Speaker 2: is to support the Bank of England in their efforts

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Speaker 2: to bring down inflation.

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Speaker 3: And that's what I'll continue to do.

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Speaker 1: And if inflation goes down, does it give you more

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Speaker 1: headroom to cut taxes?

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Speaker 2: Well, if then interest payments go down, then potentially that

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Speaker 2: gives me more headroom. And I could use that in

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Speaker 2: lots of different ways, but I would never use it

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Speaker 2: in a way that compromise the battle against inflation.

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Speaker 1: Jeremy Hunt, Chancellor, thank you so much for being with

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Speaker 1: us today and hopefully we'll speak with you again soon.