00:00This is a budget for the working people of Britain.
00:05For British businesses, big and small,
00:09delivered at a time when global uncertainties and pressures
00:12are swirling worldwide and hitting people here at home.
00:17A budget built on fiscal discipline,
00:19which matches immediate action today
00:22with clear direction for the future.
00:25Madam Deputy Speaker, let me say this to families at home.
00:29I know that with the conflict in the Middle East,
00:31rising energy bills are a real worry.
00:34I know that people look to government at times like this
00:37not to solve all their problems,
00:39but to give them a bit of breathing space.
00:41So today I'm taking one further step.
00:45This winter, for 20 million households in council tax bands A to D,
00:51I'm announcing a £100 energy payment for households.
00:59Paid directly into people's bank accounts
01:01to deal with rising energy bills.
01:04That's a £2.6 billion scheme
01:06to take the pressure off in the coldest months
01:09and see people through to the spring.
01:13The Scottish, Welsh and Northern Ireland governments
01:16will receive their share of this funding,
01:18and I call on them to do the same
01:20and give people of all nations in the UK
01:24breathing space on their energy bills this winter.
01:28Madam Deputy Speaker, £50 off VAT,
01:32£100 off council tax.
01:34For this winter, two tax cuts.
01:36For next year, fairer bills,
01:38and for the long-term, radical reform of the energy market
01:42to produce cheaper power.
01:45Breathing space now, hope for the future,
01:47delivered to the British people by this Labour government.
01:53For millions of people,
01:54the cost of living and the cost of doing business are the same.
01:58The home is the office, the van is the family car.
02:01Earlier this year,
02:03the government extended the 5p cut to fuel duty
02:06and slashed red diesel to its lowest rate in over 20 years.
02:09With the war in the Middle East still driving high fuel prices,
02:13I'm extending these tax cuts for motorists
02:16through the winter and spring to July.
02:20Supporting households, hauliers and farmers.
02:24And for anyone who relies on their car for work,
02:27from care workers to engineers,
02:29I'm increasing the higher mileage rate
02:31from 25p to 35p per mile,
02:37and I'm making permanent the increase
02:40to the standard mileage rate introduced earlier this year.
02:44Madam Deputy Speaker, since day one,
02:47I've said that I'll be a Chancellor
02:49who champions the small British firms
02:51that give character to our communities.
02:53The bakeries, the cafes, the hair salons.
02:57They make the places that we live and work
02:59the places we love.
03:01And I want these businesses to invest,
03:03to recruit, to expand.
03:06And so today, I'm taking action
03:08to support our high streets.
03:11In the first week of this government,
03:13we cut 20% off business rates
03:15for pubs, clubs and music venues
03:18from April next year.
03:21And I've heard calls from members across this House
03:24and a call from one member in particular,
03:26the right honourable member for Makerfield.
03:30And so I'm increasing the threshold
03:32for small business rate relief
03:34for retail, hospitality and leisure businesses
03:37from £12,000 to £18,000.
03:42That means 70,000 more businesses.
03:45I'm not just cutting their rates,
03:47I'm taking them out of paying business rates altogether.
03:52That means half of our shops, restaurants and gyms
03:55pay no business rates at all.
03:58And for all other businesses in these sectors,
04:01I will freeze their rates in real terms
04:03so that none face an above-inflation rise
04:06for the next two years.
04:09Finally, let me turn to banks.
04:12Our world-leading banks
04:13make a huge contribution to this country
04:16in the tax they pay,
04:18in the jobs, industry and investment they support.
04:22As Chancellor,
04:23I want to say directly to our banks,
04:26I celebrate
04:27and I am grateful for the role that you play.
04:30And amid
04:31and amid the global economic storms,
04:34I am looking to our banks
04:36to help fund breathing space
04:37for British families.
04:40And so banks
04:41will pay an extra 3%
04:43on the bank surcharge.
04:45This will be time-limited
04:47to pay for immediate support
04:49on energy bills
04:50starting in January,
04:52ending 15 months later.
04:55Madam Deputy Speaker,
04:56London is the UK's economic powerhouse,
04:58but if our other great cities
05:00matched their counterparts in France
05:02and Germany,
05:03growth in this country
05:04would be transformed.
05:06And local leaders
05:07shouldn't have to come
05:08cap in hand to Whitehall
05:09to build a new tram
05:11or a new concert hall.
05:12And when those projects
05:13lead to growing local companies
05:15and rising local incomes,
05:17it should be those same areas
05:19who keep the proceeds.
05:21This radical rewiring of the state
05:24is a dual mission
05:25led by the Treasury
05:26and No. 10 North.
05:27In today's budget,
05:30I am announcing
05:30new good growth funds
05:32for mayors
05:33and incubator capital
05:34for areas without mayors.
05:37I am announcing
05:38flexible funding
05:39to invest in local economies
05:41boosted by a further
05:42£1.5 billion
05:44of devolved loans
05:45for mayoral authorities.
05:47Funds that will back projects
05:49like the new
05:50Black Country Metro extension
05:51led by the Mayor
05:53of the West Midlands.
05:54Or the urban regeneration
05:55in Gateside,
05:56Quayside,
05:57Gateshead Quayside,
05:58led by the Mayor
05:59of the North East.
06:01And in my home region,
06:02the reopening of
06:03Doncaster Airport,
06:04led by the Mayor
06:05of South Yorkshire.
06:08Madam Deputy Speaker,
06:09this is unfinished business
06:10for me.
06:11As a Treasury Minister
06:12in the last Labour Government,
06:13I was proud to help create
06:15the regional development agencies.
06:17They delivered economic growth,
06:19local regeneration
06:20before they were axed
06:21in 2010
06:22by the Tory-Lib Dem coalition.
06:25But there is a further step
06:29we never took.
06:31The most radical act
06:32of devolution
06:33in a generation,
06:34the devolution
06:35of tax revenues.
06:37That is the step
06:38I take today.
06:39Alongside this budget,
06:41a roadmap
06:41for fiscal devolution.
06:44For the first time,
06:47I am making the commitment
06:48that 100%
06:49of business rates
06:50will be retained locally
06:51by the end of the decade.
06:53So if local leaders
06:55help businesses
06:55to start and grow,
06:57more of the rates
06:58they pay
06:59will stay
06:59in that area.
07:01From next year,
07:0220% of business rates
07:04revenues
07:04will go to Mayors.
07:06And from 2028,
07:07a share of income tax receipts
07:09will go to Mayors as well.
07:12Also from 2028,
07:14Mayors and other
07:15strategic authorities
07:16will have new powers
07:17to introduce
07:18an overnight
07:18visitors levy.
07:21Taken together,
07:22these are long-term
07:24funding streams
07:25that can be used
07:26to back investment
07:27into big local infrastructure
07:29so that more of the money
07:31that is raised locally
07:33can be invested
07:34and spent locally.
07:36Spent on projects
07:37like the Trent Sports District,
07:39led by the Mayor
07:39of the East Midlands,
07:40and the Bakerloo line extension
07:42led by the Mayor
07:43of London.
07:45Madam Deputy Speaker,
07:47new powers
07:47to the people
07:48who know
07:49their areas best.
07:50Not sentimentality,
07:52but supply-side economics.
07:53The biggest wave
07:55of devolution
07:56in a generation,
07:57driving good growth
07:58in every postcode,
07:59delivered to the British people
08:00by this Labour government.
08:02Amen.
08:03Amen.
08:04Amen.
08:05Amen.
08:05Amen.
08:06You
