All right so uh, this much is coming in in interface. In april 2022, we're going to be doing a live stream, we're going to be covering uh. What's being announced, we're going to discuss it. This will last a little while it is starting at half past, which is in eight minutes, but it will usually go on for more than an hour.

It usually lasts about an hour to two hours somewhere in that space um. I think the shortest ever was 45 minutes, and that was a very long time ago, although they have sometimes gone on for well over two hours. Hopefully it won't be one of those to be fair. There isn't that much that people are expecting in this one.

So i don't think it's going to be going on for that long. I am just watching the screen over here that we're going to cut to uh whenever that happens, um. So what what? What's on the menu uh we've got a few minutes to discuss so um. The last budget happened in march last year and we had income tax thresholds frozen, so we're not expecting any big movements on that unless they go and change their minds just six months later, or i don't expect that that is going to be happening.

We uh have this national insurance increase that is coming in um in april, and we've got 1.25 increase on both the employer and the employee side, and that's already been announced. That's already coming in. I doubt that's going to move very much um, but in 2023 this new increase in national insurance is going to be separated from national insurance. National insurance is going to go back to uh the same the same level as just today, and this will be split into a new tax called the health and social care levy.

And this is really critical, because this is very very similar to how national insurance was introduced in the first place and um. At the moment it is a very, very low tax, but at the beginning we had income tax, we had national insurance introduced and then that sort of crept up and this adding this third income tax and in essence in the uk, we have we're now going to Have three different income taxes which add up to just the same thing? They all go into the same part. It's not like. They go to different accounts, you pay them in the same payment to the same place, and it's just it just makes things look lower and look cheaper uh.

That's all it is um and they have slightly different structures as well, which theoretically benefit lower paid, although it doesn't really benefit lower paid, because national insurance disproportionately affects lower paid compared to income tax. So anyway, um that's, what's going to be happening, um after the prime. After rishi sunak, the chancellor goes and uh respond. Uh talks about the budget for an hour two hours.

However long it's gon na be we're. Gon na have rachel reeves the shadow chancellor respond because kia stammer, unfortunately has covet so he's not in parliament. Um he's unable to do it and uh it'll be interesting, because we've got a relatively um, probably um, uh inexperienced in some ways. Uh person doing the response, so maybe there won't be as much sort of challenge provided, but she is the shadow chancellor.

So so on that side, maybe she is going to be a little bit more um clued up on on unprepared uh than some of the previous ones. We've seen all right announcements made so far. We've got five minutes to go announcements made so far. We have more money going to the nhs 6 billion, and so all of these have been announced over the last few weeks.

I just dropped in some notes and then the speaker has been really frustrated with uh sunak with boris, because traditionally these should not be announced outside parliament, especially ahead of the formal announcement and they've just been leaking them. They've been doing, interviews, they've been officially leaking, unofficially leaking these, and we see more and more of this coming through um, which is not necessarily a very good thing. They're just liking to warn people, but these are not particularly exciting or particularly like game-changing things, which is why they don't think this much is going to take very long. So we've got more money for the nhs, almost 6 billion pounds.

We have the national living wages. This one is exciting and quite interesting: 8 pound 91 at the moment is going up to 9 pound 50 in april. That is a massive increase and it's quite difficult, because we've already had several industries say that this is going to significantly affect their bottom line. This is going to affect how much money uh uh, that there that they have to charge for their products and services.

You had pubs coming out saying that that's going to add 30p uh to the price of a pint and - and this is gon na - affect a lot of other things, because you know, like the delivery driver. The person like a lot of people who work minimum wage are gon na get a very, very large increase, which is good in many ways. It will affect prices, though, and at the moment, when we're going through this increased level of inflation, whether it's transitory or not. We shall have to find out.

This probably won't help if that inflation problem persists from now until april. Anyway, we have fuel duty that is expected to be frozen, which is good given what is happening with oil prices. At the moment and uh, we have 500 million pounds spent on family hubs for parents and children and 6.9 billion, which is quite a lot uh, which has been designated for transport and infrastructure. This is like trains, trams, bus routes, a whole load of different stuff cycle routes, um and from what they said.

A lot of this is going to be designated to the regions so uh, especially uh. I think the north is gon na, be some of it given to the devol parliaments, and this is quite big, because up until this was leaked, i think it was yesterday before the camera, when it was, it was only 1.5 billion that was set for this amount. Uh whenever it was last budget, so so this is quite a big increase. 6.9 billion is quite a lot um as proportion of the total each game budget.

All right expected. We have changes to the universal credit. There's lots of rumors, i'm not going to go through. All of them, but the current paper that loses 63 p per pound earned we'll see if there's any changes to that, the conservatives have been kind of saying they want to simplify all these things and it'll be interesting to see.

Do they simplify or are they going to be sort of reducing it under this guise of simplification, um, i'm still watching uh we're we're not quite on rishi, soon like yet we're still on now prime minister's questions at the moment. So it's still good, probably about another. Two to three minutes to go of that um. What else we've got hospitality v80 um at the moment is at 12.5.

It went up to 12.5 at the beginning of this month. In october uh it was down to five percent, because it was specifically reduced from 20 down to five percent for the hospitality industry because of covid it's now up at 12 and a half, and it should be going back to 20. and i think it'll be interesting. Are they going to keep it at that 12 and a half in order to stimulate the industry, because it's still not quite fully back up to speed where it should be? But one interesting thing that i picked up on is apparently later on.

Risha, sunak and boris have a photo op booked and it will be at some kind of brewery somewhere. So being, does that mean that the alcohol duty is going to be slashed? I mean in the grand scheme of things. I don't think it's that big a thing but uh, maybe that's what it's pointing to, or maybe it's just gon na, be something to do with hospitality again, although the brewery itself is not going to be benefiting from that tax. Next we have corporation tax.

That's the last one um that we haven't actually had any anything announced on. We haven't had any leaks, so this will be interesting at the moment we are at a 19 corporation tax, which is quite good, is quite low, but the problem is that in 2023 this is increasing to 25, which is still lower than some other european countries, but It is quite expensive because the uk already suffers from a whole host of things that are preventing uh, innovative, innovative companies from setting up shop here, obviously, brexit hasn't helped um, and this increasing corporation tax is probably not gon na encourage people to choose to set up Here, if they can choose to set up whatever it is, they want? Will that stick uh? Of course they have to raise money from somewhere because of how much we've been spending on all the different rishi programs over the last couple years. Um but uh we'll have to wait and see um v80 uh like is it is the v80 outside hospitalized sector gon na stick? Are they gon na increase? Are they gon na do anything with it? They've already broken promises on that from before um. Some in comments hello, by the way, everyone uh - i'm sorry, i'm not gon na, read all the comments.

Uh, hopefully i'll, read a few more oh we're about to go. No, not yet no yeah, okay, um hope they don't touch stocks and share their eyes yeah. This is another one that people are kind of concerned by, because obviously shares isa allowance of 20 000 pounds is extremely generous in the uk, like i, i am talking from someone who uses this allowance to the max and benefits greatly from it, but it is really If you take the grand scheme of taxation, it is really quite unnecessary to allow people to invest 20 000 pounds a year without any any tax due whatsoever. It kind of seems like too good when they are tightening the screw in universal credits, tightening the screw and on lots of other stuff, so it'll be see if they um touch that at all um or not, but um i haven't really got much else.

There's been. Has there been any updates, not that i'm seeing but uh, let's see uh no news, no news coming through we're still asking questions of boris at the moment, uh in parliament. So still nothing uh. Let's see, let's see if we can no we're still still answering questions.

All right um: what are your guys opinions? What are you waiting for? I don't think we're going to be seeing anything on income tax. I i think it's unlikely, because they've made this big move corporation tax, so that's going to be affected. I think unlikely. The national insurance is going to be changing um, so we're probably going to be seeing a lot of spending programs announced a lot of stuff to do with that.

Some further support for the hospitality industry. Vat is probably the one area where they might be, making some kind of announcements or some kind of moves it'll be interesting, which way, because obviously they need to raise revenue somewhere, but are they going to be stimulating economy? Because the problem we have is through this taxation regime, alongside with some other uh regulatory reasons, we are not necessarily helping ourselves as a country in attracting uh tech startups, attracting those companies that might go and begin paying tons of tax directly indirectly, whatever um so bc. All right are we about to go. Let's see a few words as chairman of ways and means, as the house knows, i chair and have responsibility runs responsibility for the house's proceedings on the budget.

I share the concern of many members of this house about the apparent pre-briefing of budget material to the media. That's what i was referring to had been made in this house. I understand the chancellor's position and it's well understood that for a number of years, elements of the budget have been pre-briefed to the media in an embargoed basis to aid their coverage of it. But such pre-briefing, where the embargo makes clear that the material can be used.

Only after the chancellor has addressed this house is rather different to what we have apparently experienced this year. That is the briefing of details of the budget statement to be published before the statement is delivered. As mr speaker has said, and all ministers know important policy announcements should be made, i have a tv license and i'm providing commentary, critic and criticism of what we're watching there shouldn't be shouts of resign over there. That's not what we're talking about we're.

Just talking about courtesy to this house, given my responsibilities to the house with regard to the budget, i must put on record my support for mr speaker's stance on this issue and express a firm hope, which i believe is felt on all sides of the house that We do not find ourselves in this position again at future budgets, but chancellor, we are all very much looking forward to hearing the remainder of your announcement, which you're about to make to us. I would like to know: oh no, you haven't. The chancellor has still to give us the important parts of his budget remind honorable members that copies of the budget resolutions will be available from the vote office and members lobby after the chancellor's statement and, of course, online. I also remind honorable members, we will have good behavior over this next hour or so oh yeah definitely going to have taken during the chancellor's statement, nor indeed during the replies on behalf of the opposition and the snp.

So we'll put aside all of those matters that we have just addressed and now concentrate, i call the chancellor of exchequer to make his budget statement. We four minutes are playing off. That's a lot, madam, madam deputy speaker, i've heard your words and those of uh. Mr speaker, i have the greatest respect for you both, and i want to assure you that i have listened very carefully to what you have said and may i also, madam deputy speaker, send my best wishes to the leader of the opposition, and i know the whole House will join me in doing that and now, with your permission, madam deputy speaker, let me turn to today's budget.

Madam deputy speaker, employment is up, investment is growing, public services are improving, the public finances are stabilizing and wages are rising. He somebody definitely lives in a different alternative. Reality. Budget delivers a stronger economy for the british people, stronger growth with the uk recovering faster than our major competitors, stronger public finances with our debt under control, stronger employment, with fewer people out of work and more people in work, growth up jobs up and debt down.

Let there be no do it. Dead down is working, the debt has increased by the biggest figure ever over the last 18 months. This budget is about what this government is about: investment in a more innovative, high-skilled economy, because that is the only sustainable path to individual prosperity, world-class public services, because these are the common goods from which we all benefit backing business, because our future cannot be built by Government alone, but must come from the imagination and drive of our entrepreneurs, help for working families with the cost of living, because we will always give people the support they need and the tools to build a better life for themselves and leveling up because for too long Far too long, the location of your birth has determined too much of your future, because the awesome power of opportunity shouldn't be available only to a wealthy few but be the birthright of every child, and that's why we didn't brexit and are increasing corporations. This does not draw a line under covid.

We have challenging months ahead and let me encourage everyone eligible to get their booster jabs as soon as possible, but today's budget does begin the work of preparing for a new economy, postcovid the prime minister's economy, of higher wages, higher skills and rising productivity of strong public Services, vibrant communities and safer streets, an economy fit for a new age of optimism, where the only limit to our potential is the effort we are prepared to put in and the sacrifices we are prepared to make. That is the stronger economy of the future, and this budget is the foundation. I love how they're wearing masks the minister behind they weren't wearing them literally two minutes ago, we'll recognize the challenging backdrop of rising inflation. Let me begin by carefully explaining what is happening in our economy and why inflation in september was 3.1 and is likely to rise further with the obr expecting cpi to average four percent over the next year.

The majority of this rise in inflation can be explained by two global forces. First, as economies around the world, reopen demand for goods has increased more quickly than supply chains can be having been shut down for almost a year. It takes time for factories to scale up production for container ships to move goods to where demand is for businesses to hire the people they need. Who would have thought this could happen.

Global demand for energy has surged at a time when supplies have already been disrupted. Putting a strain on prices in the year to september the global wholesale price of oil, coal and gas combined has more than doubled. The pressures caused by supply chains and energy prices will take months to ease. It would be irresponsible for anyone to pretend that we can solve this overnight, i'm in regular communication with finance ministers around the world, and it's clear.

These are shared global problems. Your duty free is coming to the uk nor possible for us to address on our own, but where the government can ease these pressures, we will act to address the driver shortage. The transport secretary is introducing temporary visas, tackling testing backlogs changing requirements and is today announcing new funding to improve lorry park facilities. I don't think the problem is with the lorry park.

We've already suspended the hgv levy until august, and i can do more today extending it for a further year until 2023 and freezing vehicle excise duty for heavy goods vehicles to help with the cost of living. We've introduced a new half a billion pound household support fund, and today's budget will support working families further and in terms of our fiscal policy. We are going to meet our commitments on public services and capital investment, but we are going to do so, keeping in mind the need to control inflation. And finally, i have written to the governor of the bank of england today to reaffirm their remit to achieve low and stable inflation, and people should be reassured.

They have a strong track record in doing so. I understand people are concerned about global inflation, but they have a government here at home, ready and willing to act and, madam deputy speaker, in a period of global uncertainty, you need to work hard to maintain a strong economy and be responsible with the public finances and That is what we are doing. I'm grateful to the obr for their work and i'm pleased to say they now expect our recovery to be quicker. Thanks to this government's actions, they forecast the economy to return to its pre-covered level at the turn of the year earlier than they thought.

In march, we've had one announcement about hgb vehicle exercise duty. So far, nothing and a half percent obr then expect the economy to grow by six percent in 2022 and 2.1, 1.3 and 1.6 over the next three years. In july last year, at the height of the pandemic, unemployment was expected to peak at 12 percent. Today the obr expect unemployment to peak at just 5.2 percent, the magic of part-time workers, contract fewer people out of work than previously feared and wages are rising compared to february 2020.

They have grown in real terms by almost three and a half percent, and i can confirm for the house. The obr's forecast for business investment has been revised up over the next five years and because of the actions we took to support our economy, we have been more successful than previously feared in preventing the long-term economic damage of kovid. The obr have today revised down their scarring assumption from three percent to two percent. In the depths of the worst economic crisis, on record, we set out a plan for jobs, a plan that was backed by business groups and trade bodies, a plan that has helped millions of people and saved millions of jobs.

A plan that the obr have today described as remarkably successful, madam deputy speaker, today's forecast confirmed beyond doubt. Our plan for jobs is working and madam deputy speaker, disruption in the global economy highlights the importance of strong public finances. Coronavirus left us with borrowing higher than at any time since the second world war, as the prime minister reminded us in his conference speech. Higher borrowing today is just higher interest rates and even higher taxes tomorrow.

So we need to strengthen our public finances so that when the next crisis comes, we have the fiscal space to act. Today i am publishing a new charter for budget responsibility. The charter sets out two fiscal rules which will keep this government on the path of discipline and responsibility. First, underlying public sector net debt, excluding the impact of the bank of england, must, as a percentage of gdp, be falling.

Second, in normal times, the state should only borrow to invest in our future growth and prosperity. Everyday spending must be paid through taxation. Both rules must be met by the third year of every forecast period, giving us the flexibility to respond to crises while credibly keeping our public finances under control. These rules are supplemented by targets to spend up to three percent of gdp on capital investment and keep welfare spending on a sustainable path.

Madam deputy speaker, the house will be asked to vote on our charter, giving members a simple choice: to abandon our fiscal anchor and leave our economy adrift with reckless unfunded pledges or to vote for what we on this side of the house. No is the right course: sound public finances and a stronger economy for the british people. Madam deputy speaker, important as the charter is, our credibility comes as much from what we do as what we say. So i'm pleased to tell the house that, because our plan is delivering a stronger economy and because we've taken tough but responsible decisions on public finances, the obr report today that all our fiscal rules have been met.

We have ticked ourselves that we're doing a great job. Two percent of gdp this year then 85.4 of gdp in 2223 before peaking at 85.7 in 2324. It then falls in the final three years of the forecast from 85.1 to 83.3 percent. Borrowing, as a percentage of gdp is forecast to fall in every single year from 7.9 this year to 3.3 percent next, then 2.4, 1.7, 1.7 and 1.5 percent in the following years: borrowing down debt down proving once again it is the conservatives and only the conservatives who Could be trusted with taxpayers money? Madam deputy speaker, i have made four fiscal judgments in this budget.

First, we will meet our fiscal rules with a margin to protect ourselves against economic risks. That is the responsible decision at a time of increasing global economic. This is the ons debt data, as they were before the pandemic and six times as sensitive as they were before the financial crisis. Just a one percentage point in inflation and interest rates would cost us around 23 billion pounds.

My second judgment today is to continue supporting working families. Third, as well as helping people at home, our improving fiscal situation means we will meet our obligations to the world's poorest. I told the house, then we met our fiscal test. We would return to spending 0.7 of our national income on overseas aid.

Some people said this was a trick or a device. I told this house, it was no such thing and based on the tests i set out, today's forecast show that we are in fact scheduled to return to 0.7 in 2425 before the end of this parliament. Definitely gon na happen and, madam deputy speaker, my fourth, my fourth fiscal judgment is this: today's budget increases total departmental spending over this parliament by a hundred and fifty billion pounds. That's the largest increase this century with spending growing by 3.8 a year in real terms.

As a result of this spending review and contrary to speculation, there will be a real terms rise in overall spending for every single department and public sector net investment, as a share of gdp will be at the highest sustained level for nearly half a century. If anybody still doubts it, today's budget confirms the conservatives are the real party of public services. Madam madam deputy speaker, madam deputy speaker, our stronger economy lays the foundation for everything we want to achieve in today's budget, world-class public services and more investment in our future growth. Before i turn to the details, i'd like to thank my right, honourable friend, the chief secretary, completing the spending review in such challenging circumstances was a tall order and thankfully we had just the man for the job.

Madam deputy speaker, at the start of this parliament, resource spending on healthcare was a 133 billion pounds. Today's spending review confirms that, by the end of this parliament, it will increase by 44 billion pounds to over 177 billion, and the extra revenue we're forecast to raise from the health and social care levy is going direct to the nhs and social care as promised. This is the increase to income tax capital budget. It's just going differently since 2010 record investment in health r d, including better newborn screening.

As campaigned for by the member for the cities of london and westminster 40 new hospitals, 70 hospital upgrades more operating theaters to tackle the backlog and a hundred community diagnostic centres, all staffed by a bigger, better trained workforce, with 50 000, more nurses and 50 million more Primary care appointments, as well as funding to deliver the prime minister's historic reforms to social care, we're providing local government with new grant funding over the next three years of 4.8 billion pounds, the largest increase in core funding for over a decade yeah. This was one of the leaks in housing and home ownership too, with a multi-year housing settlement totaling nearly 24 billion pounds 11 and a half billion to build up to their 180 000 new, affordable homes, the largest cash investment in a decade 20 larger than the previous Program and we're investing an extra 1.8 billion pounds enough to bring 1500 hectares of brownfield land into use, meet our commitment to invest 10 billion pounds in new hampshire and unlock a million new homes. We're also confirming five billion pounds to remove unsafe cladding from the highest risk buildings, partly funded by the residential property developers. Tax, which i can confirm will be levied on developers with profits over 25 million pounds at a rate of four percent, and we've also reduced rough sleeping by over a third.

But we will go further with 640 million pounds a year for rough sleeping and homelessness and 85 increase in funding compared to 2019.. Madam deputy speaker, today's budget funds, our ambition to recruit 20 000 new police officers, provides an extra 2.2 billion pounds for courts, prisons and probation services, including half a billion pounds to reduce the court's backlog, pays for programs to tackle neighborhood crime, reoffending county lines, violence against Women and girls victim services and improved responses to rape cases joining you're, not late. We haven't heard anything about eight billion pounds to the largest prison building program in a generation. Madam deputy speaker, all governments should aspire to provide greater life chances for future generations, but few governments can match our ambition.

So let me now turn to what this budget does to support children. The evidence is compelling that the first thousand and one days of a child's life are the most important. My right honorable friend, my right, honourable friend, the member for south northamptonshire, has recognized this with her inspirational report and we are responding today with 300 million pounds for a start for life offer for families, high quality, parenting programs tailored services to help with perinatal mental health. We're going to get any numbers to tell the member congratulations of family hubs around to create for the country too, to improve the quality of child care, we're going to pray providers more with today's spending review, providing an extra 170 million pounds by 2425, confirming 150 million Pounds to support training and development for the entire early years workforce to help up to 300 000 more families facing multiple needs.

We're investing an extra 200 million pounds in the supporting families program and we will provide over 200 million pounds a year to continue the holiday activity and food program. 200 million for families there's less than 600 million uh 500 million that was leaked, also delivers. Our commitment to schools with an extra 4.7 billion pounds by 2425, which, combined with the ambitious plans we announced that the spending review of 2019 will restore per pupil funding to 2010 levels in real terms, equivalent equivalent to a cash increase for every pupil of more than One thousand 500 pounds and for children with special educational needs and disabilities. We are more than tripling the amount we invest to create 30 000 new school places, and we know that the pandemic consort population grows more school places.

The children's president we've already announced 3.1 billion pounds to help education recovery. Today, as promised by the prime minister and the education secretary, we will go further with just under two billion pounds of new funding to help schools and colleges, bringing this government's total support for education recovery to almost five billion pounds. Madam deputy speaker, one of the better places to spend money public services. We are also levelling up communities.

Restoring the pride people feel in the places they call home to do that. We're providing 560 million pounds for youth services enough to fund up to 300 youth clubs across the country over 200 million pounds to build or transform 8 000 state-of-the-art community football pitches across the uk funding to turn over a hundred areas of derelict land into new pocket Parks and i'm allocating the first round of bids from the leveling up fund 1.7 billion pounds to invest in the infrastructure of everyday life in over 800 local areas, with 170 million in scotland, 120 million in wales and 50 million in northern ireland. More than their barnet shares this will benefit the whole united kingdom there's 1.7 out of 6 that they promised, let's see where the other ones are going to go. Burnley, lewis, clued south and not one, not two, but three successful projects for the great city of stoke-on-trent.

He knows so many cities in the uk. It's amazing, but that's, but that's not all we're also going to fund projects in ashton underline south leicester, city, doncaster and west leeds. You should do pub quizzes with that knowledge speaker, we are so committed to levelling up. We are even leveling up the opposition front bench.

Madam deputy speaker, leveling up is also about protecting our unique culture and heritage. The british museum, tate liverpool, the york railway museum, we're investing 800 and million pounds to protect museums, galleries, libraries and local culture, and thanks to the culture secretary over a hundred regional museums and libraries, will be renovated, restored and revived, and she secured up to two million Pounds to start work on a new beatles attraction on the liverpool waterfront, we're also going to review our museum freedoms and make our creative tax reliefs more generous on current plans. The tax relief for museums and galleries is due to end in march next year, just as exhibitions are starting to tour again, so i've decided to extend it for two years to march 2024 and to support theaters orchestras, museums and galleries to recover from covid the tax Reliefs for all those sectors from today until april 2023 will be doubles and they won't return to the normal rate until april 2024. That's a tax relief for culture worth almost a quarter of a billion pounds and, madam deputy speaker, this is a budget for the whole united kingdom through the barnet formula.

Today's decisions increase scottish government funding in each year by an average of 4.6 billion pounds, welsh government funding by 2.5 billion pounds and 1.6 billion pounds for the northern ireland executive. They have so much money to spend amazing well in real terms. The largest block grants for the devolved administration since the devolution settlements of 1998. The whole of the united kingdom will benefit from the uk shared prosperity fund and over time we will ramp up funding so that total domestic uk-wide funding will match eu receipts averaging around 1.5 billion pounds a year, and we will fund projects across the uk, including funding For the extreme e-race in scotland, the 22 hebrides x-pre, accelerating funding for the cardiff city region, deal in wales and funding in northern ireland for community cohesion and, whilst today demonstrates the indisputable fiscal benefit of being part of the united kingdom.

This is this is, and always will be secondary to the simple truth that we are bound together by more than transactional benefit. It is our collective history, our culture and our security. We are, and always will be one family, one united kingdom, i'm sensing some bad announcements because he hasn't brought up any big numbers yet and the sciences wanted to bury something. Whilst today's budget delivers historically high levels of public spending, its success will be measured not by the billions we spend, but by the outcomes we achieve and the difference we make to people's lives.

The budgets are set, the plans are in place. The task is clear: now we must deliver, because this isn't the government's money. It's taxpayers money. Madam deputy speaker, our stronger economy allows us to fund world-class public services the people's priority, but over the long term the only way to pay for higher spending is economic growth, and if we want to see higher growth, we've got to tackle the problem.

That's been holding back this country for far too long, our uneven economic geography, as we come out of the worst economic shock we've ever seen, we've got a choice to retrench or to invest this government chooses to invest. This is the 6.9 billion economic infrastructure to invest in innovation, to invest in skills, to invest in a plan for growth that builds a stronger economy for the future. That's what this budget is about and that's what this government is about. Madam deputy speaker, infrastructure connects our country drives productivity and levels up.

That's why our national infrastructure strategy invests in economic infrastructure like roads, railways, broadband and mobile over 130 billion pounds to connect our towns and cities, we're investing 21 billion pounds on roads and 46 billion pounds on railways. Our integrated rail plan will be published soon soon dramatically. Improving journey time between our towns and cities and today we're providing 5.7 billion pounds for london-style transport settlements in greater manchester, the liverpool city region, the tease valley, south yorkshire, west yorkshire, west midlands and the west of england, and we're helping local transport everywhere with 2.6 billion Pounds for a long-term pipeline of over 50 local roads upgrades over 5 billion pounds for local roads, maintenance enough to fill a million more potholes a year and funding for buses, cycling and walking totaling more than 5 billion pounds. The prime minister promised an infrastructure revolution.

This budget delivers an infrastructure revolution. Madam deputy speaker, investment in our infrastructure is just the first step. We need to do what the people of this country have always done, invent, discover and create the ideas and technologies that will change the world and pay taxes. We will also invest more in innovation.

The uk is already a world leader with less than one percent of the world's population. We have four of the world's top 20 universities, 14 of the world's most impactful research and the second most low, noble laureates. We want to go further and zero, the top 20 tech terms. We will maintain our target to increase r d investment to 22 billion pounds, but in order to get there and deliver on our other priorities, we'll reach the target in 2627 spending.

By the end of this parliament, 20 billion pounds a year on r d, that's a cash increase of 50 percent, the fastest increase ever, and i can confirm for the house that this 20 billion pounds is in addition to the cost of our r d tax reliefs. Combined with those tax reliefs, total public investment in r d is increasing from 0.7 of gdp in 2018 to 1.1 of gdp by the end of the parliament, reducing tax in r d is not investing well. The latest available data shows an oecd average of just 0.7. Germany investing 0.9 france, 1 and the united states just 0.7.

This unprecedented funding will increase core science funding to 5.9 billion pounds per year by 24 25. A cash increase of 37 meet the full cost of associating with horizon europe, establish the new advanced research and invention agency, with 800 million pounds by 25 26 and strengthen our focus on late stage. Innovation, increasing innovate, uk's annual core budget to a billion pounds, double what it was at the start of this parliament suddenly worse, but very little. Specifics 20 billion there's more to becoming a superpower than just what the government spends on r d yeah.

Our ambitious net zero strategy is also an innovation strategy, investing 30 billion pounds to create the new green industries of the future. We've just issued our second green bond, making us the third largest issuer of sovereign green bonds anywhere in the world. London last week was named the best place in the world for green finance, and on monday, the new uk infrastructure bank announced its first ever. Investment 107 million pounds to support offshore wind in t side and to build on this work one week today, i'll be hosting global finance ministers and businesses at cop26 and madam deputy speaker, innovation comes from the imagination, drive and risk-taking of business.

That's why we've launched help to grow for turbocharged sme productivity started a new co-investment venture capital fund future fund breakthrough. It's why i'm announcing today we will consult on further changes to the regulatory charge cap for pension schemes, unlocking institutional investment whilst protecting savers. It's why we're introducing a new 1.4 billion pound global britain investment fund, supporting transformative economic activity and our world leading sectors like life sciences, and it's why today's budget increases the british business banks, regional financing, programs to 1.6 billion pounds, expanding their coverage and helping innovative businesses Get access to the finance they need across the whole united kingdom. I am not hearing anything speaker.

A third of our science. Noble laureates have been immigrants. Half of our fastest growing companies have a foreign-born founder, so an economy built on innovation must be open and attractive to the best and brightest minds. Thanks secretary, today's budget confirms the eligibility criteria for our new scale-up visa, making it quicker and easier for the fast-growing businesses to bring in highly skilled individuals and the trade secretaries.

New global talent network launching initially in the bay area, boston and bangalore, will identify attract and relocate the best global talent in science and tech sectors, all part of our plan to make our visa system for international talent the most competitive in the world. Madam deputy speaker, if we want greater private sector innovation, we need to make our research and development tax reliefs fit for purpose. The latest figures show the uk has the second highest spending on r d tax relief in the oecd. Yet it's not working as well as it should.

Uk business investment in r d is less than half the oecd average we've underwatered and identified two issues we are solving today. First, the reliefs need to reflect how businesses conduct research in the modern world. So, as many companies have called for i'm expanding the scope of the release to include cloud computing and data costs, the second problem is this: companies claimed uk tax relief on 48 billion pounds of r d spending, yet uk business investment was around half of that at Just 26 billion pounds, we are subsidizing billions of pounds of r d that isn't even happening here in the united kingdom. That's unfair on british taxpayers and it puts us out of step with places like australia, canada, hong kong, singapore, switzerland and the usa, who have all focused their r d tax reliefs on domestic activity.

So from april 2023 we are going to do the same and incentivize greater investment here at home. So, madam deputy speaker, 22 billion pound investment in r d, the net zero strategy, the future fund, help to grow more regional finance, unlocking institutional capital, a more competitive visa system and a modernized, r d tax credits regime enough action to prove the hypothesis we are making. This country, a science and technology superpower, i'm sorry, i think, i'm missing something about 20 22 billion without any real specific details on where exactly that's going to help innovation and innovation. There is one further part of our plan for growth that is crucial, providing a world-class education to all our people.

Higher skills lead to higher regional productivity and higher productivity leads to higher wages, with 80 percent of the uk's 2030 workforce already in work. Our future success depends not just on the schooling we give our children, but the lifelong learning we offer to adults. We've already done a lot. Our plan for jobs invested in apprenticeships traineeships and the kickstart scheme, but we need to go further.

Today's budget invests in the most wide-ranging skills agenda this country has seen in decades. We are increasing skill spending over the parliament by 3.8 billion pounds, an increase of 42 we're expanding t levels, building institutes of technology rolling out the prime minister's lifetime skills guarantee upgrading our fe college estate, quadrupling the number of places on skills, boot camps and significantly increasing Funding for apprenticeships, we are also going to tackle a tragic fact. Millions of adults in our country have numeracy skills lower than those expected of a nine-year-old. According to the leading charity, national numeracy, this costs individuals with poor numeracy up to 1600 pounds a year in lost earnings.

People with poor numeracy skills are more than twice as likely to be unemployed as their peers. So today i can announce a new uk wide numeracy program multiply with 560 million pounds multiply, will improve basic math skills and help to change people's lives across the whole united kingdom. We need to attract business and investment to the uk, not support the stuff. That already is here, i think, we're focusing on the wrong issue here: structure with new roads, railways and broadband, cementing our status as a science and technology superpower and strengthening the skills of our people, the country's greatest asset.

That is a real plan for growth and that's how this government is building a stronger economy for the british people. Madam deputy speaker, world-class public services are the people's priority. Investment in infrastructure, innovation and skills will create the growth that we need to pay for them, but, as conservatives we know that government action alone won't be enough to create a stronger economy. We want this country to be the most exciting and dynamic place in the world.

For business and now that we've left the eu, we have the freedom to do things differently and deliver a simpler, fairer tax system. I want to begin with one of our smallest taxes, but a tax which plays an important role in one of our preeminent industries. Shipping now that we've left the eu today, we start reforming our tonnage tax regime to make it simpler and more competitive and we're also making it fairer for uk taxpayers when we were in the old eu system, ships in the tonnage tax regime required to fly the Flag of an eu state, but that doesn't make sense for an independent nation. So i can announce today that our tonnage tax will, for the first time ever reward companies for adopting the uk merchant shipping flag, the red ensign.

I think there are much bigger taxes that they save by not doing it with such a proud maritime history. This is so futile. Madam deputy speaker, i am sure i am sure the opposition, i'm sure the opposition will be delighted that red flags are still flying somewhere in this country, even if they are even if they are all at sea. Let me turn now.

Let me turn now: you take this little little tax benefit and give up this massive one that you currently benefiting from carrying the flag for return flights with them between the four nations of the united kingdom than they do when flying home from abroad. We used to have a return leg exemption for domestic flights, but were required to remove it in 2001, but today i can announce that flights between airports in england, scotland, wales and northern ireland will, from april 2023, be subject to a new lower rate of air passenger Duty, this will help seeing their duty cut by half. It will bring people together across the united kingdom and because and because they tend to have a greater proportion of domestic passengers. It is a boost to regional airports like aberdeen, belfast and southampton.

Airports are major regional employers so to help them get through the winter. I'm also extending our support for english airports for a further six months. We're also making changes to reduce carbon emissions from aviation. Most emissions come from international rather than domestic aviation, so we are introducing, from april 2023 a new ultra long-haul band in air passenger duty covering flights of over 5500 miles when an economy rate of 91 pounds, less than 5 percent of passengers will pay more.

But those who fly furthers will pay the most. Madam deputy speaker. Our approach to corporate taxation seems fair, but largely inconsequential in the grand scheme of things funding public services and encouraging the investment we need for a stronger economy. At the march budget, we took the difficult but necessary decision to increase the rate of corporation tax to 25 from 2023 still, the lowest rate in the g7 and the fifth lowest rate in the g20.

Alongside i introduced the new super deduction, the biggest business tax cut in modern british history and extended to the end of this year, the annual investment allowance at its higher level of a million pounds. Now is not the time to remove tax breaks on investment. So i can confirm today that the 1 million pound annual investment allowance will not end in december as planned. It will be extended.

All the way to march 2023 also said in march that i would review the bank surcharge within corporation tax to maintain the competitiveness of our financial services. Yeah eight percent is harsh. We will retain a surcharge of three percent. The overall rate for corporation tax on banks will in 2023, increase from 27 to 28 and will remain higher than the rate paid by other companies.

Small challenger banks are improving banking competition, which is good for the sector and good for consumers, so to help them. I will also raise the annual allowance to 100 million pounds. Madam deputy speaker, our manifesto promised to review business rates we're publishing our conclusions today, but before i set out our plans, let me say this: we on this side of the house are clear: that reckless unfunded promises to abolish attacks, which raises 25 billion pounds every year, Are completely irresponsible, it would be wrong to find 25 billion pounds a year in extra borrowing, cuts to public services or tax rises elsewhere. So we will retain business rates but with key reforms to ease the burden and create stronger high streets.

First, we will make the business rate system fairer and timelier with more frequent revaluations every three years. The new revaluation cycle will be delivered from 2023. process. Change affects nothing really by the federation of small business and the british property federation.

We're introducing a new investment relief to encourage businesses to adopt green technologies like solar panels, and i'm announcing today that we'll accept the cbi and the british retail consortium's recommendation to introduce a new business rates, improvement relief from 2023. Every single business will be able to make property improvements and, for 12 months, pay no extra business rates. That means a hotel, adding extra rooms, a manufacturer, expanding their factory, an office, adding new air conditioning cctv or bike shelters will all pay no extra rates together. Oh, how kind for a whole year and then after you spend all your money, you do have to pay the rent, that's very 150 million pounds.

This will make a difference, but without action millions of businesses would see their tax bills going up next year because of inflation. I want to help those businesses right now, so our third step is that next year's planned increase in the multiplier will be cancelled. That's a tax cut for businesses worth over the next five years, 4.6 billion pounds, and i have one final measure to help those businesses hardest hit by the pandemic. I'm announcing today for one year a new 50 business rates discount for businesses in the retail, hospitality and leisure sectors.

That's why they're going to the brewery later pubs, music venues, cinemas, restaurants, hotels, theaters and gyms. Any eligible business can claim a discount on their bills of 50 up to a maximum of 110 000 pounds, that is, a business tax, cut worth almost 1.7 billion pounds together with small business rate relief. This means that over 90 percent of all retail hospitality and leisure businesses will see a discount of at least 50 percent. Apart from the covid reliefs.

This is the biggest single year tax cut to business rates in over 30 years. Madam deputy speaker, because everyone wants to ditch their offices right, you've got to keep them, keep them in there billion pounds. Madam deputy speaker, we are unleashing the dynamism and creativity of british businesses with a simpler, fairer and more competitive tax system. The biggest business tax cut in modern british history, the biggest single year tax cut to business rates for 30 years, a million pound investment allowance tonnage tax, reformed air passenger duty cut.

That is the way to back business and build a stronger economy, but also a six percent increase in corporation tax that we won't mention. Madam deputy speaker, let me turn now to alcohol duties first introduced in six, the popular tax. That means nothing to help civil war. Our alcohol duty system is outdated, complex and full of historical anomalies.

The institute of fiscal studies have called it in their words, a mess. The institute of economic affairs said it defies common sense, and the world health organization have warned that countries like the eu uk which follow the eu rules are, and i quote, unable to implement tax systems that are optimal from the perspective of public health. So, madam deputy speaker, today, we are taking advantage of leaving the eu to announce the most radical simplification of alcohol duties for over a hundred and forty years enter the photo op at the brewery. Later, five steps today to create a system that is simpler, fairer and healthier, yeah.

First, to radically simplify the system. We are slashing the number of main duty rates from 15 to just six. Our new system will be designed around a common sense principle: the stronger the drink, the higher the rate. This means that some drinks like stronger red wines, fortified wines or high strength, white ciders, will see a small increase in their rates because they are currently under taxed.

Given their strength, that's the right thing to do and it will help end the era of cheap high-strength drinks which can harm public health and enable problem drinking. We need the numbers and because this is a more rational system, the converse is also true. Many lower alcohol drinks are currently over taxed and have been for many decades. Well: hey, cheap beer, fruit, ciders liqueurs, lower strength, beers and wines.

Today's changes mean that they will pay less. The second step i'm taking today will encourage small, innovative craft producers. I'm announcing proposals for a new small producer relief. This will extend the principle of small brewers relief to include, for the first time ever, small cider makers and other producers making alcoholic drinks of less than eight and a half percent.

Third, i'm going to modernize the system to reflect the way that people drink today. Over the last decade, consumption of sparkling wines like prosecco, has doubled english sparkling wine has increased almost tenfold it's clear. They are no longer the preserve of wealthy elites and they are no stronger than still wines. So i'm going to end the irrational duty premium of 28 that they currently pay sparkling wines wherever they are produced, will now pay the same duty as still wines of equivalent strength and because growing conditions in the uk typically favor, lower strength and sparkling wines.

This means english and welsh wines compared with stronger imported wines, will now pay less he's talked twice as long about booze as the infrastructure. Investment have increased from one in a thousand siders sold in 2005 to one in four today, but they can pay two or three times as much duty as cider that is made with apples or pears. So we are cutting the duty on them too. The fourth step, i'm taking the booth, will directly support the home of british community life for centuries.

Our pubs more booze, even before the pandemic pubs were struggling between 2000 and 2019. Consumption in the on trade fell by 40, and many public health bodies recognize that pubs are often safer drinking environments than being at home. So as the members for dudley, south and northwest durham will agree, a fairer, healthier system supports pubs. So i can announce today: draft relief, draft relief will apply lower rate of duty on draft beer and cider.

It will apply to drink, serve from draft containers over 40 liters. It will particularly benefit community pubs who do 75 of their trade on draft, and let me tell the house the new rate draft relief will cut duty by five percent: five percent wow since 1923, the biggest cut to few fruit ciders in a generation the biggest cut To beer duty for 50 years 10: more minutes, it's a long-term investment in british pubs of a hundred million pounds a year and a permanent cost, a permanent cut in the cost of a pint of 3p. And i cannot wait, madam deputy speaker for the opposition to accuse me tomorrow of beer barrel politics lucy. How long can we talk about booze deputy speaker, madam deputy speaker? These much needed reforms will come into effect in february 2023, but i want to help the hospitality industry right now so for my final announcement on alcohol duties today, i can confirm that the planned increase in duty on spirits like scotch whiskey, wine, cider and beer, will All from midnight tonight be speaker, our reforms make the alcohol duty system simpler, fairer and healthier.

They help with the cost of living while tackling problem drinking they support innovative making booze cheaper, definitely tackles problem, drinking and public health, and they are only possible because we've left the european union we've left the eu, so we're gon na have cheap beer. Madam deputy speaker, morbid news, world-class public services, investment in infrastructure, innovation and skills, simply fairer taxes to support businesses and consumers all built on the foundation of a stronger economy and responsible public finances. That is our vision for the future, and that is what this budget delivers, and this budget also supports working families and beer. Madam deputy speaker, with fuel prices at the highest level in eight years, i'm not prepared to add to the squeeze on families and small businesses.

So i can confirm today the planned rise in fuel duty will be cancelled, so we can deliver more beer saving over the next five years of almost eight billion pounds compared to pre-2010 plans. Today's freeze means the average tank of fuel will cost around 15 pounds less per car 30 pounds less for vans 130 pounds less for hgvs. Given the oil prices, we are collecting a lot more duty energy rates. The average car driver will now save a total of 1 900 pounds save as an interesting word.

Given the petrol pump today, the public sector workers will see fair and affordable pay rises across the whole spending review period, as we return to the normal independent pay setting process, and i can take action to help the lowest paid as well. It was a conservative government that introduced the national living wage in 2016.. A a conservative government that, according to statistics published just yesterday, has overseen the proportion of people in low-paid work falling to its lowest level since 1997, and it is a conservative government that is increasing the wage floor again today, the independent low pay commission brings together economists Business groups and trades unions: the government is accepting their recommendation to increase the national living wage next year by six point: six percent to nine pounds, fifty an hour for a full-time worker. That's a pay rise worth over a thousand pounds.

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