Chris Philp – BBC News – Budget 2017

Chris Philp – BBC News – Budget 2017


well let’s speak now to the conservative
MP Chris Philp he’s in Westminster for us I mean you I don’t know if you heard
all that it’s a pretty grim prediction and forecast across the economy

well let’s remember these are only predictions and of course economists
have got these predictions wrong in the past but even these predictions do
forecast the UK economy will continue to grow but let’s concentrate on the facts
we do know about what we do know is that the UK has produced 3 million new jobs
in the last 7 years and we now have 42 year low unemployment which is an
extraordinary record of achievement and what we also saw in the budget yesterday
was more money for the NHS which is very important and the stamp duty cut for 95
percent of first-time buyers and of course the 80 percent of first-time
buyers stamp duty will be abolished altogether
so our young people are being given very real help to make that first step onto
the housing ladder so I think the budget yesterday
taken together was good news for our country but it was particularly good
news for young people and for the NHS

I know you don’t wanna hear about
the predictions but this prediction particularly that average UK earnings in
2022 could still be less than they are in 2008 we’ve just heard that as
described as astonishing well of course you’ve got to read those average earning
figures in the context of tax changes and when you look at disposable income
so when you look at a post tax income it is now adjusting for tax and adjusting
for inflation it is higher now than it was in 2010 and because we’ve cut taxes
by raising the threshold we’ve cut taxes by 1100 pounds for each and every worker
in the UK but you’re right we would like to see earnings rise faster and we’d
like to see higher growth and the core of that challenge is really productivity
how much output we produce for each hour worked and it’s true to say that it’s
been not growing very fast for the last few years and it’s lower than it is in
some other countries and that’s why the other part of the budget yesterday
besides housing and the NHS was about productivity investing in
productivity which means things like improving infrastructure projects like
Crossrail the biggest engineering project in Europe we’ve increased the
National Infrastructure Fund significantly we’ve increased investment
in research and development which drives productivity and put more money into
things like A level maths so if we invest in productivity
particularly education research and development and infrastructure I hope
that we’ll see productivity growth pick up and that will then feed through into
higher wage growth and higher overall growth so that productivity piece I
think is the key which unlocks that growth door looking into the future

yeah
there’s a lot of hope around isn’t there let’s talk about the experience

Well record jobs that’s
real a 42-year low unemployment figure that is real and that’s been delivered
by a Conservative government

yeah well when you say you hope the analysts
predictions are wrong what happened to the predictions from previous
Chancellor’s who said we’d have got rid of the deficit by 2015 we’re now looking
at decades before that happens well that’s right we hope to get there
we go there’s that word again well no we had hope to get the deficit well look
hopes a good thing I’m not gonna apologize for being hopeful have you’re
right the deficit clearance has taken a little longer than expected when we came
to office in 2010 the deficit was 10 percent of GDP
it’s now down to about two and a half percent of GDP it was supposed to be
zero and but I’m not going to apologize for only clearing up three quarters of
the mess labor left behind we are well on track to getting that deficit down to
1% of GDP over the next couple of years and if you contrast the conservative
spending plans to john mcdonnell he is proposing to splurge tens of billions of
pounds without the faintest idea how to pay for it doesn’t even know how much we
pay on our national debt interest we’ve got a shadow chancellor who doesn’t do
numbers and that would be a truly terrifying prospect that would cause
inflation to go up it would cause interest rates to go up and that really
would crush the economy so I think we’ve got the balance about right but no one’s
saying it’s easy it’s not

chris philp thank you very much for joining us
afternoon

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