in a country. it's a blow for prime minister rishi sunak, given one of his so—called five pledges announced last year was to have the economy growing by the end of 2023. he has admitted he's likely to fail to meet that one. the uk chancellor, jeremy hunt, has been speaking about these figures and says you can't have long term healthy growth with high inflation. lets have a listen. let's have a listen. we always expected growth to be weaker while we prioritised tackling inflation, and that means higher interest rates, and that is the right thing to do because you cannot have long—term, healthy growth with high inflation. but also for families, when there is a cost of living crisis, when the cost of their weekly shop is going up, their energy bills are much higher, it is the right thing to do. the underlying picture here is an economy that is more resilient than most people predicted, inflation is coming down, real wages have been

going up now for six months. and if we stick to our guns, independent forecasters say that by the early summer we could start to see interest rates falling, and that will be a very important relief for families with mortgages. we spoke to my colleague about how the uk economic situation compares to other countries. i the uk economic situation compares to other countries.— to other countries. i think the crucial thing _ to other countries. i think the crucial thing to _ to other countries. i think the crucial thing to understand i to other countries. i think the i crucialthing to understand here, crucial thing to understand here, because quite frankly everyone looks at it slightly differently and there are different factors going on, but the uk is not alone because when you look at the factors that lie behind the uk's dip in the last half of last year, i really dip, very mild, you are talking about the cost of living crisis, high prices that hit consumers and businesses in the

medicine deployed to combat that, high interest rates because that act by squeezing spending power and wages and profits. so what you get is an impact on activity. uk is not alone by any means. the eu hasjust very narrowly avoided going into recession but it too pretty much flat line, germany shrinking like the uk in 2023, and we learned in recent hours had japan also went into recession unexpectedly. a lot of common factors, each country has different issues going on if we start poking around, in the uk we have had brexit and that impacted investment and perhaps the availability of skilled workers. so there are individual factors availability of skilled workers. so there are individualfactors but availability of skilled workers. so there are individual factors but a common problem. all of these figures relate to what happened last year and the initial signs, and it is very tentative is this kind of

downturn at least in the uk may be short lived. downturn at least in the uk may be short lived-— short lived. that is important, it is short lived, _ short lived. that is important, it is short lived, because - short lived. that is important, it is short lived, because the - short lived. that is important, it i is short lived, because the director of economic statistics at the 0ns said we should be looking at the broader picture. how do economists view this news? is the word... the word recession tends to scare people. it word recession tends to scare --eole. ., , word recession tends to scare eo le, ., , ., word recession tends to scare --eole. ., ,. , ., �* people. it does and we shouldn't get too tied uo. — people. it does and we shouldn't get too tied op. we _ people. it does and we shouldn't get too tied up, we could _ people. it does and we shouldn't get too tied up, we could talk _ people. it does and we shouldn't get too tied up, we could talk about - too tied up, we could talk about what actually is a recession. there are different ways of measuring it. we now know that gdp per capita fellm _ we now know that gdp per capita fellm it— we now know that gdp per capita fellm it is— we now know that gdp per capita fell... it is deeply worrying news for families struggling to make ends meet and _ for families struggling to make ends meet and for businesses. these are provisional— meet and for businesses. these are provisional figures. they may chango — provisional figures. they may change. but it is absolutely clear that britain remains trapped in a spiral— that britain remains trapped in a spiral of— that britain remains trapped in a spiral of economic decline. this

isn't _ spiral of economic decline. this isn't a — spiral of economic decline. this isn't a question of lines on a graph — isn't a question of lines on a graph it _ isn't a question of lines on a graph it is _ isn't a question of lines on a graph. it is about the health of our hi-h graph. it is about the health of our high streets, about growing businesses, secure, well—paid jobs businesses, secure, well— paid jobs and businesses, secure, well—paid jobs and money— businesses, secure, well—paid jobs and money in the pockets of working peopio _ and money in the pockets of working people. the british people did not need _ people. the british people did not need to— people. the british people did not need to see these figures today to tell them — need to see these figures today to tell them that the economy is not working. — tell them that the economy is not working, that we are in the midst of a cost _ working, that we are in the midst of a cost of— working, that we are in the midst of a cost of living crisis and that they— a cost of living crisis and that they are _ a cost of living crisis and that they are worse off. but these numbers _ they are worse off. but these numbers shine a spotlight on the scale _ numbers shine a spotlight on the scale of— numbers shine a spotlight on the scale of that failure. the confirmation of recession exposes the government and a prime minister completely out of touch with the realities — completely out of touch with the realities on the ground. a government that for too long has looked _ government that for too long has looked on — government that for too long has looked on economic failure with complacency. content to be the managers — complacency. content to be the managers of decline. rishi sunak claims _ managers of decline. rishi sunak claims that he has a plan. but the

plan is _ claims that he has a plan. but the plan is not — claims that he has a plan. but the plan is not working. he claims that the economy has turned a corner. but the economy has turned a corner. but the economy— the economy has turned a corner. but the economy is shrinking. he claims he doesn't _ the economy is shrinking. he claims he doesn't want to take us back to square _ he doesn't want to take us back to square one — he doesn't want to take us back to square one but we are going backwards. the prime minister's claims _ backwards. the prime minister's claims are — backwards. the prime minister's claims are in tatters. the cornerstone of his leadership has been _ cornerstone of his leadership has been shattered. the promise to grow the economy has been broken. 0ur the economy has been broken. our economy— the economy has been broken. our economy is— the economy has been broken. our economy is now smaller than when rishi _ economy is now smaller than when rishi sunak— economy is now smaller than when rishi sunak entered 10 downing street— rishi sunak entered 10 downing street in— rishi sunak entered 10 downing street in 2022. having spent years in the _ street in 2022. having spent years in the slow — street in 2022. having spent years in the slow lane, rishi sunak has now put— in the slow lane, rishi sunak has now but our— in the slow lane, rishi sunak has now put our economy into reverse. this is— now put our economy into reverse. this is rishi _ now put our economy into reverse. this is rishi sunak's recession and it is a _ this is rishi sunak's recession and it is a british — this is rishi sunak's recession and it is a british people who will pay the price — it is a british people who will pay the price. this is simply the latest chapter— the price. this is simply the latest chapter in— the price. this is simply the latest chapter in a — the price. this is simply the latest chapter in a long story of economic

failure _ chapter in a long story of economic failure and — chapter in a long story of economic failure and stagnation. a story that reaches _ failure and stagnation. a story that reaches back more than a decade, felt in _ reaches back more than a decade, felt in stagnant household incomes, in the _ felt in stagnant household incomes, in the decay of our high street and in the decay of our high street and in creeping — in the decay of our high street and in creeping insecurity. i often think— in creeping insecurity. i often think of— in creeping insecurity. i often think of a _ in creeping insecurity. i often think of a young family i met in worthing — think of a young family i met in worthing almost two years ago now, a mum and _ worthing almost two years ago now, a mum and dad working five jobs between — mum and dad working five jobs between them, struggling to make ends meet, constantlyjuggling work and childcare. as a family, they only— and childcare. as a family, they only get— and childcare. as a family, they only get half a day a week together. they felt— only get half a day a week together. they felt that any hope of buying a home _ they felt that any hope of buying a home of— they felt that any hope of buying a home of their own had evaporated. people. _ home of their own had evaporated. people, working hard. and do you know— people, working hard. and do you know what — people, working hard. and do you know what the man said to me? she said, _ know what the man said to me? she said. you _ know what the man said to me? she said, you just wonder if you are doing _ said, you just wonder if you are doing something wrong. well, something had gone profoundly wrong because _ something had gone profoundly wrong because an economy that isn't working — because an economy that isn't working for working people isn't working — working for working people isn't working at all. it is time that the conservative party took some

responsibility. the origins of many of the _ responsibility. the origins of many of the crises we have faced are global — of the crises we have faced are global. pandemic, war, energy crisis — global. pandemic, war, energy crisis but— global. pandemic, war, energy crisis. but their consequences have been _ crisis. but their consequences have been exacerbated by the choices of conservative governments. each time a crisis _ conservative governments. each time a crisis has _ conservative governments. each time a crisis has hit, britain has been acutely— a crisis has hit, britain has been acutely exposed. first, austerity that choked off investment. next, years— that choked off investment. next, years of— that choked off investment. next, years of political instability which has fuelled economic instability. brexit— has fuelled economic instability. brexit without a plan. the conservatives's mini budget, sending mortgages— conservatives's mini budget, sending mortgages and interest rate soaring. five prime _ mortgages and interest rate soaring. five prime ministers, seven chancellors, ii plans for growth, each _ chancellors, ii plans for growth, each yielding less in the last. if the uk — each yielding less in the last. if the uk economy had grown at the average _ the uk economy had grown at the average rate of other economies over the past _ average rate of other economies over the past decade, it would now be

£140 _ the past decade, it would now be £140 billion larger, equivalent to £5,000 — £140 billion larger, equivalent to £5,000 per household every year. that would — £5,000 per household every year. that would also mean an additional £50 billion — that would also mean an additional £50 billion in tax revenues to invest— £50 billion in tax revenues to invest in— £50 billion in tax revenues to invest in our crumbling public services _ invest in our crumbling public services. today the average british family— services. today the average british family is— services. today the average british family is 20% worse off than their german— family is 20% worse off than their german counterparts. 0ne family is 20% worse off than their german counterparts. one in three working _ german counterparts. one in three working age families have less than £1000 _ working age families have less than £1000 in— working age families have less than £1000 in savings and a typical family— £1000 in savings and a typical family renewing their mortgage this year will— family renewing their mortgage this year will find themselves paying an additional £240 every month. 0ver additional £240 every month. over this year— additional £240 every month. over this year and last the fixed rate mortgages have more than 3 million people _ mortgages have more than 3 million people will come to an end, all paying — people will come to an end, all paying the price of the tory mortgage bombshell. and there are 700,000 _ mortgage bombshell. and there are 700,000 more people out of the workforce — 700,000 more people out of the workforce now than when they're pandemic— workforce now than when they're pandemic struck four years ago. the conservative party can't fix the

problem. — conservative party can't fix the problem, they are the architects of the problem. britain needs change or stop our— the problem. britain needs change or stop our economy needs change. not 'ust stop our economy needs change. not just a _ stop our economy needs change. not just a change in government, changing _ just a change in government, changing our economic approach, casting aside failed economic ideas in response to a new age of insecurity. to embrace a new emerging _ insecurity. to embrace a new emerging economic consensus that this conservative government chooses to ignore _ this conservative government chooses to ignore it— this conservative government chooses to ignore. it is what i call security— to ignore. it is what i call security economics, from instability and short— security economics, from instability and short term is to a mission -based — and short term is to a mission —based government, prioritising economic— —based government, prioritising economic security for families and for our— economic security for families and for our country, pro—worker and pro—business in the knowledge that each depends on the success of the other, _ each depends on the success of the other, a _ each depends on the success of the other, a plan based on the understanding that wealth doesn't 'ust understanding that wealth doesn't just trickle down from the top, it comes— just trickle down from the top, it comes from the bottom up and the middle _ comes from the bottom up and the middle out, from the talent and effort _ middle out, from the talent and effort of— middle out, from the talent and effort of millions of ordinary people — effort of millions of ordinary people and businesses. the times

demand _ people and businesses. the times demand resolve, discipline and a new britain _ demand resolve, discipline and a new britain for— demand resolve, discipline and a new britain for a _ demand resolve, discipline and a new britain for a renewed world and a serious _ britain for a renewed world and a serious plan to back those plans up. a plan— serious plan to back those plans up. a plan supported by british business and developed in partnership with british— and developed in partnership with british business. with keir starmer's labour party, this is what you will— starmer's labour party, this is what you will get — starmer's labour party, this is what you will get. this is labour's plan, stability. — you will get. this is labour's plan, stability, investment, reform. stability— stability, investment, reform. stability brought about by iron discipline. guided by strong fiscal rules _ discipline. guided by strong fiscal rules. robust economic institutions and with— rules. robust economic institutions and with every policy that we announce, every line in our manifesto _ announce, every line in our manifesto fully costed and fully funded — manifesto fully costed and fully funded. investment through partnership with the private sector, this steam — partnership with the private sector, this steam ahead in the industry of the future — this steam ahead in the industry of the future with a model industrial strategy— the future with a model industrial strategy and a new national wealth fund to— strategy and a new national wealth fund to invest alongside business in

our automotive sector, in our part and in _ our automotive sector, in our part and in the — our automotive sector, in our part and in the future of our steel industry _ and in the future of our steel industry. and with a new national champion— industry. and with a new national champion in home—grown power, great british— champion in home—grown power, great british energy, leading the way on floating _ british energy, leading the way on floating offshore wind, tidal and nuclear— floating offshore wind, tidal and nuclear power. to ignite growth, boost _ nuclear power. to ignite growth, boost our — nuclear power. to ignite growth, boost our economic security, drive down _ boost our economic security, drive down bills— boost our economic security, drive down bills and create good, well— paid down bills and create good, well—paid jobs in all parts of britain _ well—paid jobs in all parts of britain. and reform, starting with our planning system, taking on vested — our planning system, taking on vested interests to get britain building — vested interests to get britain building again. supporting working people _ building again. supporting working people to develop the skills to thrive — people to develop the skills to thrive in — people to develop the skills to thrive in a changing world of work. to make _ thrive in a changing world of work. to make work pay with a genuine living _ to make work pay with a genuine living wage under new deal for working — living wage under new deal for working people. to cut the nhs backlog — working people. to cut the nhs backlog and get people back to work. stability, _ backlog and get people back to work. stability, investment, reform. the foundations of a plan to break free from _ foundations of a plan to break free from the _

foundations of a plan to break free from the atari's vicious cycle of stagnant — from the atari's vicious cycle of stagnant growth, rising taxes and falling _ stagnant growth, rising taxes and falling living standards. to repair our economic security. i am under no illusion _ our economic security. i am under no illusion about — our economic security. i am under no illusion about the scale of the challenge that we may inherit. there are no— challenge that we may inherit. there are no short — challenge that we may inherit. there are no short cuts, no quick fixes, no easy— are no short cuts, no quick fixes, no easy answers. there are hard choices— no easy answers. there are hard choices ahead. we will not shrink from _ choices ahead. we will not shrink from those — choices ahead. we will not shrink from those choices, nor the hard work— from those choices, nor the hard work required for a decade of national— work required for a decade of national renewal. labour will fight the next _ national renewal. labour will fight the next election on the economy. every— the next election on the economy. every day— the next election on the economy. every day we will expose what the conservatives have done to our country — conservatives have done to our country. because it questions that people _ country. because it questions that people will ask ahead of the next election— people will ask ahead of the next election are simple. do you and your family— election are simple. do you and your family feel— election are simple. do you and your family feel better off after 14 years — family feel better off after 14 years of _ family feel better off after 14 years of conservative government? do our hospitals, schools, police work better— our hospitals, schools, police work better than — our hospitals, schools, police work better than they did 14 years ago? frankly. _ better than they did 14 years ago? frankly, does anything in our

country— frankly, does anything in our country work better than when the conservatives came to power 14 years ago? _ conservatives came to power 14 years ago? here — conservatives came to power 14 years ago? here is— conservatives came to power 14 years ago? here is further evidence today in black— ago? here is further evidence today in black and — ago? here is further evidence today in black and white, britain has fallen— in black and white, britain has fallen into recession. it is time to turn _ fallen into recession. it is time to turn the — fallen into recession. it is time to turn the page on 14 counts of conservative failure. it is time to demand — conservative failure. it is time to demand better the managed decline —— than managed decline. it is time to start a _ than managed decline. it is time to start a new— than managed decline. it is time to start a new chapter for britain. thank— start a new chapter for britain. thank you _ start a new chapter for britain. thank you very much. i will take guestions — thank you very much. i will take questions now. from the bbc. do you recounise questions now. from the bbc. do you recognise in — questions now. from the bbc. do you recognise in these _ questions now. from the bbc. do you recognise in these numbers, - questions now. from the bbc. do you recognise in these numbers, yes, - questions now. from the bbc. do you recognise in these numbers, yes, it i recognise in these numbers, yes, it is a recession but a relatively mild recession in the context of the pandemic, the financial crisis and the first chance i've spoken to since the abandonment of your own plan last year, can you just clarify the point about that point i understood it but this was your plan

for growth and now you're not doing it, where is your plan for growth? you say you can't afford it but where will the growth come from? first, the definition of the recession is two consecutive guarters _ recession is two consecutive quarters of negative growth, it contracted by 0.1% in q3 and not .4% in q contracted by 0.1% in q3 and not .4% in 0 four. _ contracted by 0.1% in q3 and not .4% in 0 four, western economies had predicted — in 0 four, western economies had predicted. we didn't need to get these _ predicted. we didn't need to get these numbers for these to know that families— these numbers for these to know that families are _ these numbers for these to know that families are struggling through an enormous cost of living crisis and businesses — enormous cost of living crisis and businesses are struggling as well, as stuart— businesses are struggling as well, as stuart rose said on the radio this morning, it is a recession and this morning, it is a recession and this is— this morning, it is a recession and this is most— this morning, it is a recession and this is most certainly a recession. 0n the _ this is most certainly a recession. 0n the green prosperity plan, i set out in _ 0n the green prosperity plan, i set out in my— 0n the green prosperity plan, i set out in my speech today how the national— out in my speech today how the national wealth fund and gb energy will drive _ national wealth fund and gb energy will drive growth in our economy, investment— will drive growth in our economy, investment alongside the private sector— investment alongside the private sector and the industries of the future — sector and the industries of the future and i think it was welcomed last week— future and i think it was welcomed last week that sony businesses said that what— last week that sony businesses said that what is needed to drive investment in these industries is

thatjoint— investment in these industries is thatjoint investment investment in these industries is that joint investment and investment in these industries is thatjoint investment and reform to the planning system which labour are committed _ the planning system which labour are committed to to get that britain building — committed to to get that britain building again. i will take a question— building again. i will take a question now from sky. as chancellor, _ question now from sky. is chancellor, would you not have been prepared to reduce recession to tackle inflation and if not, how would you have dealt with the inflation crisis differently? look at the international _ inflation crisis differently? look at the international evidence. at the moment the uk has the highest inflation _ the moment the uk has the highest inflation in — the moment the uk has the highest inflation in the g7 and only the uk and japan — inflation in the g7 and only the uk and japan i — inflation in the g7 and only the uk and japan i think are likely to have gone _ and japan i think are likely to have gone into— and japan i think are likely to have gone into recession at the end of last year — gone into recession at the end of last year. so i don't buy this argument _ last year. so i don't buy this argument that you need to have a recession— argument that you need to have a recession to get inflation down. 0ther— recession to get inflation down. other countries are doing an awful lot 0ther countries are doing an awful lot better— other countries are doing an awful lot better controlling inflation whilst — lot better controlling inflation whilst also managing to grow their economy— whilst also managing to grow their economy which is a point i made about— economy which is a point i made about britain being acutely exposed to the _ about britain being acutely exposed to the challenge we face. i do not

accept _ to the challenge we face. i do not accept the — to the challenge we face. i do not accept the premise of this is what was needed to control inflation. 0ther— was needed to control inflation. other countries are doing this 0ther countries are doing this better— other countries are doing this better than we are here in the uk. other countries are doing this betterthan we are here in the uk. i would _ betterthan we are here in the uk. i would take — betterthan we are here in the uk. i would take a — betterthan we are here in the uk. i would take a question from itv. you have dubbed — would take a question from itv. tim. have dubbed this rishi sunak two recession. how can you ensure that it wouldn't become rachel's recession should you get in power when you have actually scaled back so significantly on your green investment plans?— so significantly on your green investment plans? first of all, rishi sunak — investment plans? first of all, rishi sunak has _ investment plans? first of all, rishi sunak has been - investment plans? first of all, i rishi sunak has been chancellor, prime _ rishi sunak has been chancellor, prime minister since october 2022 and in _ prime minister since october 2022 and in every quarter, since he has become _ and in every quarter, since he has become prime minister, the economy is now— become prime minister, the economy is now smaller then when he came to office _ is now smaller then when he came to office and _ is now smaller then when he came to office and one of his five pledges was to— office and one of his five pledges was to grow the economy. we now know he has _ was to grow the economy. we now know he has failed _ was to grow the economy. we now know he has failed to achieve this in the economy— he has failed to achieve this in the economy is— he has failed to achieve this in the economy is going backwards. this is his recession. he promised to grow the economy and he has failed. unlike — the economy and he has failed. unlike this prime minister and this chancellor, keir starmer and me have

.ot chancellor, keir starmer and me have got a _ chancellor, keir starmer and me have got a real— chancellor, keir starmer and me have got a real plan, a concrete plan for growth _ got a real plan, a concrete plan for growth and — got a real plan, a concrete plan for growth and don'tjust got a real plan, a concrete plan for growth and don't just take our word for it. _ growth and don't just take our word for it. take — growth and don't just take our word for it, take the work of the businesses who have helped us to buy whether— businesses who have helped us to buy whether it _ businesses who have helped us to buy whether it is _ businesses who have helped us to buy whether it is reform planning or pensions. — whether it is reform planning or pensions, the national wealth fund and gb _ pensions, the national wealth fund and gb energy, this is all about getting — and gb energy, this is all about getting the growth in our economy that we _ getting the growth in our economy that we need. the conservatives have no plan _ that we need. the conservatives have no plan we _ that we need. the conservatives have no plan. we have a serious plan that we have _ no plan. we have a serious plan that we have worked on with business and the green _ we have worked on with business and the green prosperity plan is still there _ the green prosperity plan is still there i— the green prosperity plan is still there. i nationalwealth the green prosperity plan is still there. i national wealth fund to invest— there. i national wealth fund to invest in— there. i national wealth fund to invest in carbon storage, green hydrogen. _ invest in carbon storage, green hydrogen, steel industry and renewable part and gb energy with an endowment to invest in nuclear, tidal— endowment to invest in nuclear, tidal and — endowment to invest in nuclear, tidal and floating off a win. these up tidal and floating off a win. these up and _ tidal and floating off a win. these up and that the government don't have _ up and that the government don't have the — up and that the government don't have the labour government will have to grow _ have the labour government will have to grow our _ have the labour government will have to grow our economy and to secure that growth— to grow our economy and to secure that growth and investment we need to turn— that growth and investment we need to turn things around after 14 years of conservative failure. i would take _ of conservative failure. i would take a — of conservative failure. i would take a question from gb news. what would ou

take a question from gb news. what would you put _ take a question from gb news. what would you put in _ take a question from gb news. what would you put in a _ take a question from gb news. twist would you put in a budget on match the sixth if you were standing at the sixth if you were standing at the dispatch box byjeremy hunt will be standing? the dispatch box by jeremy hunt will be standing?— be standing? festival, ifind it extraordinary _ be standing? festival, ifind it extraordinary that _ be standing? festival, ifind it extraordinary that the - be standing? festival, ifind it extraordinary that the actual l extraordinary that the actual chancellor of the exchequer has provided — chancellor of the exchequer has provided roaming commentary on his own budget. two running commentary. i own budget. two running commentary. i worked _ own budget. two running commentary. i worked at _ own budget. two running commentary. i worked at the bank of england for many— i worked at the bank of england for many years and have been in politics for a long _ many years and have been in politics for a long time and i've never seen anything _ for a long time and i've never seen anything like it with the chancellor giving _ anything like it with the chancellor giving a _ anything like it with the chancellor giving a running commentary. it is dangerous— giving a running commentary. it is dangerous and it is very misguided and i_ dangerous and it is very misguided and i would urge him to stop this because — and i would urge him to stop this because it — and i would urge him to stop this because it creates the uncertainty that we _ because it creates the uncertainty that we really don't need. we haven't— that we really don't need. we haven't got the numbers that the chancellor has got to inform the budget— chancellor has got to inform the budget process. i think he get his final numbers from the yesterday or today— final numbers from the yesterday or today on— final numbers from the yesterday or today on the outlook for the economy and for— today on the outlook for the economy and for public finances. i have made no secret— and for public finances. i have made no secret of— and for public finances. i have made no secret of the fact that i want taxes _ no secret of the fact that i want taxes on — no secret of the fact that i want taxes on working people to be the web but— taxes on working people to be the web but i've also been clear,

including _ web but i've also been clear, including in a speech today, that i will never— including in a speech today, that i will never make a promise where i can say— will never make a promise where i can say where the money will come from _ can say where the money will come from so _ can say where the money will come from so i _ can say where the money will come from so i can't make those promises. one thing _ from so i can't make those promises. one thing i_ from so i can't make those promises. one thing i would do, and this is a plan we _ one thing i would do, and this is a plan we have already set out, it get going _ plan we have already set out, it get going without plan for growth, to grow— going without plan for growth, to grow the — going without plan for growth, to grow the economy, to create those 'obs grow the economy, to create those jobs and _ grow the economy, to create those jobs and investments with a national wealth— jobs and investments with a national wealth fund and gb energy and those planning _ wealth fund and gb energy and those planning reforms, because in the end the biggest _ planning reforms, because in the end the biggest challenge uk economy faces is— the biggest challenge uk economy faces is that lack of growth and investment and we can't turn everything found in our economy unless— everything found in our economy unless we — everything found in our economy unless we can get that uplifting growth — unless we can get that uplifting growth and that would be my number one priority— growth and that would be my number one priority if i was chancellor of the exchequer. iwould one priority if i was chancellor of the exchequer. i would take a question— the exchequer. i would take a question from the ft. you the exchequer. i would take a question from the ft. you said there are some hard _ question from the ft. you said there are some hard choices _ question from the ft. you said there are some hard choices ahead. - question from the ft. you said there are some hard choices ahead. you i are some hard choices ahead. you referred to that chancellor... rachel reeves, the shadow chancellor outlining how she saw the announcement today of the two consecutive quarters of shrinking growth in the uk at the end of last year, which of course adds up to a

technical recession. vicki can elucidate further. what did you make of rachel reeves's take on the economy? was it fair? it is of rachel reeves's take on the economy? was it fair? it is true the uk has suffered _ economy? was it fair? it is true the uk has suffered a _ economy? was it fair? it is true the uk has suffered a little _ economy? was it fair? it is true the uk has suffered a little bit - economy? was it fair? it is true the uk has suffered a little bit more - economy? was it fair? it is true the uk has suffered a little bit more by| uk has suffered a little bit more by comparison to other countries in terms of higher inflation and also concerns about interest rates needing to stay higher for longer in the uk than perhaps would be the case elsewhere because we have a little bit of a sticky inflation problem with wages having increased a bit faster and in some other countries and it is difficult to control that once that's not happening. so there have been perhaps some policy measures which have not helped hugely, particularly not the inflation early on in the uk, not enough subsidies when prices started going up so much. and being a little bit late when we intervened. so there is, plus of

course in terms of consumer spending and the fall in real income for people, we have had the increase in taxes which has happened because an allowance has been frozen to a lot more money has been taken in by the government and also that vat, the higher inflation, the more you click. so there has been a drain out of the economy that has affected businesses and individuals and individuals and their ability to spend and what we have seen is there has been a contraction in retail spending in various months that we look at through 2023. that could be reversed because what we have now is a fall in inflation, prices coming down, realwages a fall in inflation, prices coming down, real wages beginning to go up, high employment and low unemployment right now and there have been some tax giveaway so that may well be more and there are some positive hints about where the economy might go in the future, certainly in 2024

but a lot about what rachel reeves said was quite right about how to get growth going, they are longer term issues. the question is what happens over the next 12 months and politically over the next few months until the election. that politically over the next few months until the election.— until the election. that means investment — until the election. that means investment and _ until the election. that means investment and that _ until the election. that means investment and that budget i until the election. that means i investment and that budget has until the election. that means - investment and that budget has been very tight and even labour has had to face that, with the axing of their plan to develop green energy similar to what was signed in the united states, the inflation reduction act. it united states, the inflation reduction act.— united states, the inflation reductionact. . , m reduction act. it is very difficult. it is difficult — reduction act. it is very difficult. it is difficult to _ reduction act. it is very difficult. it is difficult to emulate - reduction act. it is very difficult. it is difficult to emulate what i reduction act. it is very difficult. it is difficult to emulate what is | it is difficult to emulate what is going on in the states. we don't have that capacity and that is a problem and other hints we get now is it may well be more cuts announced in the budget in terms of spending over the next few years and that will. .. spending over the next few years and that will... in order to give us some tax giveaways which will leave labour with quite a lot of

difficulty in terms of... rachel reeves was — difficulty in terms of... rachel reeves was saying _ difficulty in terms of... rachel reeves was saying jeremy i difficulty in terms of... rachel. reeves was saying jeremy hunt difficulty in terms of... rachel- reeves was saying jeremy hunt was giving a running commentary on its budget which is soon to come. and there certainly will be tax breaks as far as we understand it. it is at the right choice? i as far as we understand it. it is at the right choice?— the right choice? i think people will be quite — the right choice? i think people will be quite happy _ the right choice? i think people will be quite happy about i the right choice? i think people will be quite happy about that i the right choice? i think people| will be quite happy about that in some businesses as well because it might stimulate the economy in 2024 but if they are paid for by cuts in public spending and foreseeable cuts for a number of years, that isn't going to be sustainable at all because those cuts which will be perhaps put into whatever budget we hear cannot happen because departments need the money, public services are deteriorating or that is what people think in a very large majority, they think things need to improve. there are various savages which are starved of funds and we have seen the impact of all this ——

various services. so the reality is there will need to be extra spending. the rules may need to be rethought. spending. the rules may need to be rethou:ht. ., , , spending. the rules may need to be rethou:ht. . ,, ., , �* rethought. perhaps it doesn't matter! thank _ rethought. perhaps it doesn't matter! thank you _ rethought. perhaps it doesn't matter! thank you very i rethought. perhaps it doesn't| matter! thank you very much. rethought. perhaps it doesn't i matter! thank you very much. let's go back to rachel reeves, the shadow chancellor. in go back to rachel reeves, the shadow chancellor. . , ., chancellor. in all parts of the country and _ chancellor. in all parts of the country and it _ chancellor. in all parts of the country and it is _ chancellor. in all parts of the country and it is good - chancellor. in all parts of the country and it is good for- chancellor. in all parts of the country and it is good for our| country and it is good for our national— country and it is good for our national security because it means less reliance on putin and dictators around _ less reliance on putin and dictators around the — less reliance on putin and dictators around the world for our basic energy— around the world for our basic energy needs. in addition to that, we set _ energy needs. in addition to that, we set out — energy needs. in addition to that, we set out reforms to the apprenticeship level to turn it into apprenticeship level to turn it into a growth — apprenticeship level to turn it into a growth in — apprenticeship level to turn it into a growth in schools levy to help businesses train up their next generation of workers and a modern industrial— generation of workers and a modern industrial strategy with strategies always _ industrial strategy with strategies always publish, for financial services _ always publish, for financial services and automotives in one of those _ services and automotives in one of those industrial strategies that have _ those industrial strategies that have been worked on in conjunction with businesses coming forward shortly — with businesses coming forward shortly. so those are just some of the areas — shortly. so those are just some of the areas where our plans are just so different from what the conservatives have set out and combined _ conservatives have set out and combined with our commitments to stability— combined with our commitments to stability in — combined with our commitments to stability in the economic system

with the — stability in the economic system with the fiscal lock, to ensure that the 0b _ with the fiscal lock, to ensure that the 0b r_ with the fiscal lock, to ensure that the ob r can report on the —— and fiscal— the ob r can report on the —— and fiscal rules — the ob r can report on the —— and fiscal rules to fund day—to—day suspending to give long—term investments. the chancellor is reportedly looking at a further squeeze — reportedly looking at a further squeeze on public spending to allow for tax _ squeeze on public spending to allow for tax cuts in the budget. what is your view— for tax cuts in the budget. what is your view on— for tax cuts in the budget. what is your view on that as a trade—off and will you _ your view on that as a trade—off and will you commit to not imposing further— will you commit to not imposing further cuts to public services? unlike — further cuts to public services? unlike the _ further cuts to public services? unlike the actual chancellor, i don't — unlike the actual chancellor, i don't take it is a very good idea to provide _ don't take it is a very good idea to provide a — don't take it is a very good idea to provide a running commentary on the budget _ provide a running commentary on the budget i_ provide a running commentary on the budget i do — provide a running commentary on the budget. i do recognise that our public— budget. i do recognise that our public services are under huge pressure. _ public services are under huge pressure, unlike perhaps a conservative, which is why i have said there — conservative, which is why i have said there does need to be an immediate injection of cash into our public— immediate injection of cash into our public services which is why we would — public services which is why we would end _ public services which is why we would end the tax break where non-dom _ would end the tax break where non—dom to pay taxes in the country

in which _ non—dom to pay taxes in the country in which they— non—dom to pay taxes in the country in which they live. it is why we would — in which they live. it is why we would end _ in which they live. it is why we would end the tax break where private — would end the tax break where private schools are not paying vat business _ private schools are not paying vat business rates. we would change the rules about _ business rates. we would change the rules about how the bonuses are private _ rules about how the bonuses are private equity managers are taxed and we _ private equity managers are taxed and we would use all of that money to fund _ and we would use all of that money to fund an — and we would use all of that money to fund an immediate injection of cash into— to fund an immediate injection of cash into the public services which are on— cash into the public services which are on their— cash into the public services which are on their knees. but we have to have _ are on their knees. but we have to have a _ are on their knees. but we have to have a serious point to grow the economy — have a serious point to grow the economy. as i set out in the speech 'ust economy. as i set out in the speech just this _ economy. as i set out in the speech just this morning, if our economy hadn't _ just this morning, if our economy hadn't grown of the countries —— man hadn't grown of the countries —— man had grown _ hadn't grown of the countries —— man had grown at — hadn't grown of the countries —— man had grown at the same rate as other countries. it— had grown at the same rate as other countries, it would be hundred and £50 billion — countries, it would be hundred and £50 billion figure, £5,000 for every family— £50 billion figure, £5,000 for every family in— £50 billion figure, £5,000 for every family in the uk and we would have tens of— family in the uk and we would have tens of billions of pounds of additional tax receipts which we would _ additional tax receipts which we would invest in public services. it is so _ would invest in public services. it is so important that we grow our economy— is so important that we grow our economy and that is why keir starmer and me _ economy and that is why keir starmer and me have — economy and that is why keir starmer and me have got so much reference on our plans— and me have got so much reference on our plans for— and me have got so much reference on our plans for growth because that in the end _ our plans for growth because that in the end is— our plans for growth because that in the end is the way that we encourage

investment— the end is the way that we encourage investment in britain, improve public— investment in britain, improve public services and improve the living _ public services and improve the living standards for working people. final question from the telegraph. following — final question from the telegraph. following the events of this way, do you think they're betting up your parliamentary candidates are strong enough and will you tighten up the selection process in light of what happened with mr ali and graham jones? ,, ., , , jones? keir starmer acted swiftly in resonse jones? keir starmer acted swiftly in response to — jones? keir starmer acted swiftly in response to the _ jones? keir starmer acted swiftly in response to the accusations - jones? keir starmer acted swiftly in response to the accusations and i jones? keir starmer acted swiftly in | response to the accusations and the stories— response to the accusations and the stories that — response to the accusations and the stories that came out about mr ali and mr— stories that came out about mr ali and mrjones said that is absolutely right _ and mrjones said that is absolutely right. when keogh became leader, the number— right. when keogh became leader, the number one _ right. when keogh became leader, the number one thing he said he would do is to change _ number one thing he said he would do is to change the labour party to root _ is to change the labour party to root out — is to change the labour party to root out anti—semitism. i returned to the _ root out anti—semitism. i returned to the shadow cabinet because i was sure of— to the shadow cabinet because i was sure of his _ to the shadow cabinet because i was sure of his commitment, and he hasn't _ sure of his commitment, and he hasn't let— sure of his commitment, and he hasn't let me down the jewish community down and it is right both of them _ community down and it is right both of them have been suspended. in terms _ of them have been suspended. in terms of— of them have been suspended. in terms of their vetting procedure, my understanding is that this was a private — understanding is that this was a private meeting, that a labour party

meeting _ private meeting, that a labour party meeting. and the recording was released — meeting. and the recording was released much later. obviously, if we had _ released much later. obviously, if we had known about these things we would _ we had known about these things we would have _ we had known about these things we would have taken action sooner. we can't _ would have taken action sooner. we can't see _ would have taken action sooner. we can't see everything everywhere but when _ can't see everything everywhere but when we _ can't see everything everywhere but when we do see evidence of anti—semitism, we act swiftly to ensure _ anti—semitism, we act swiftly to ensure the — anti—semitism, we act swiftly to ensure the highest standards and rightly— ensure the highest standards and rightly so — ensure the highest standards and rightly so amongst our mps and amongst — rightly so amongst our mps and amongst our parliamentary candidates. thank you for coming along _ candidates. thank you for coming along this — candidates. thank you for coming along this morning and for your questions _ along this morning and for your questions-— questions. there should have chancellor — questions. there should have chancellor rachel _ questions. there should have chancellor rachel reeves i questions. there should have i chancellor rachel reeves they're outlining her response and her broad, fairly conceptual economic plan in response to the figures that we saw, gdp figures that we saw relating to the end of last year indicating that uk economy at the end of 2023 went into recession. from westminster, helen, what did you make of what rachel reeves had to say? you make of what rachel reeves had to sa ? ~ . . . you make of what rachel reeves had to sa ? . . . , , you make of what rachel reeves had tosa? . , to say? what was interesting was how she chose to — to say? what was interesting was how she chose to say _ to say? what was interesting was how she chose to say it. _ to say? what was interesting was how she chose to say it. labour _ to say? what was interesting was how she chose to say it. labour is - to say? what was interesting was how she chose to say it. labour is keen i

she chose to say it. labour is keen this is seen as a big political moment and you can see that from the fact she chose to call a press conference. she could have given labour's response in an interview but they chose to call a press conference, they clearly want this moment. in part it gives labour an opportunity to seize control of the narrative and after what has been a difficult week for them and shift focus onto the concept of troubles, but we got from rachel reeves, it gave her an opportunity to very much pin the responsibility for this on to rishi sunak personally, to try and draw a distinction between what labour would do so she painted this as she soon session. she set it in the context of the latest chapter of a story of economic theory and stagnation. so that it is a broad picture she was painting and then talked about how labour would change things but i think as you suggested, it was quite broadbrush suggestion

of labour�*s plans to how they will grow the economy, how they will change this long—running problem of a lack of growth in the economy which he said boiled down to stability, investment and reform. if the economy bounces back into growth, that is not going to be good for labour, is it, and it would erode her case? it for labour, is it, and it would erode her case?— for labour, is it, and it would erode her case? , , ., , ., erode her case? it depends how you look at it. erode her case? it depends how you look at it- if— erode her case? it depends how you look at it. if you _ erode her case? it depends how you look at it. if you are _ erode her case? it depends how you look at it. if you are thinking - erode her case? it depends how you look at it. if you are thinking of- look at it. if you are thinking of making plans to the economy then having a strong economy to start with is good for any politician because more growth means more money coming into the economy and that means more money that any sort of political party can then choose to spend on what it wants to do. so if you look at it from abroad economic picture, then it would actually be quite good news. if you are looking at it from the picture of how to draw dividing lines politically, then yes, it becomes harder. let’s then yes, it becomes harder. let's now turn to _ then yes, it becomes harder. let's now turn to vicky _

then yes, it becomes harder. let's now turn to vicky pryce. _