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  • in the spring.

  • So it was pretty precarious situation and, you know, to me and my colleagues, what Boris offered was this unique combination of qualities.

  • First of all, probably the most trusted senior politicians early in our party, on the issue of Brexit, which is the defining issue of the day.

  • And I think everything that we've seen from his election as prime minister has confirmed that that you know, in the way he's gone about it.

  • No one, I think, is in any doubt about his commitment to deliver Brexit by the end of October and to fight hard to get us a good deal and, if not to prepare us properly to leave without.

  • But beyond that, you know, what also attracted us is that you said that the newer generation focused on domestic issues.

  • It was his track record as a liberal conservative governing from the center with an inspiring platform of ideas around infrastructure around education, around spreading opportunity on that dynamic alignment between free enterprise, economy and funding.

  • Public service is that's what particularly excited me about him.

  • We saw that when he was mayor in London, and that's what we I think, have been doing at a pace since he was elected in the government came together at the end of July.

  • You've seen that relentless focus on people's priorities.

  • Public service is the economy, eso everything Thus far, I think, you know, has been as we expected.

  • The other thing we said in the article was, of course, you know he's a proven winner on Dhe.

  • Whether you judge that by two mayoral elections at a time when the observers were holding 17 points behind Labor in London at that time, Boris went on to win also the referendum that no one thought could be one he led and and one.

  • And, you know, we're expecting a general election this year.

  • It's certainly something that we welcome and are looking forward to.

  • And I have every confidence that Boris is brilliantly place to lead us to victory when that comes on.

  • Well, the election happened.

  • Do you think before, before Brexit after Brexit obviously adverts are telling us October 31st we are leaving.

  • Some people in Parliament seem less sure about.

  • Yeah, well, that Parliament is obviously, you know, is trying to do what it can to frustrate our us in our aim of delivering Brexit.

  • You know, those battles and tussles are going to keep happening over the coming weeks, and I think we'll just watch that.

  • You know what we do have this slightly bizarre situation of a leader of the opposition just unwilling to to do that page.

  • Georgia's a prime minister.

  • Come memorably put it the other day.

  • I mean, you know, they're single purpose, what they're paid to do by the taxpayers to oppose and try and replace the government.

  • And here we are.

  • We've got the leader of the opposition just unwilling to do that for all the reasons that we know.

  • So it doesn't seem that we're gonna have the election, you know, in the in the immediate future.

  • But I think when it does come where we're very well placed, I think people are responding very well.

  • I certainly am finding that when I'm out knocking doors, hopefully you are as well.

  • You know, people, whatever direction they've come from on the Brexit issue clearly are seeing a government that's got grip.

  • That's got determination that is, on one hand, focusing on Brexit, on the other hand, focusing on things that they care about like the n hs, keeping them safe, getting money into schools on day, See on the other side a leader of the opposition whose please just not fit to lead, not able to make decisions.

  • Maur delay.

  • They're not attracted to that.

  • The prime minister's way of communicating cuts through.

  • So I said, when the election comes, we should be in very good shape.

  • Now you're one of the reasons I wanted to talk to you on.

  • I'm sure we'll get back to Brexit fairly repeatedly.

  • Not least one of the questions start, but one of the three wasn't able to talk to you.

  • I mean, so you are not regional growth is now suitable Molar age.

  • Leveling up a Zagat calls.

  • And as as chief secretary Treasury, you are innocent of leading position Thio.

  • Act on that.

  • But also you know you're the MP for a seat up in up in Yorkshire.

  • More pertinently, you know, back in 2016 very shortly after the election, you wrote a very good report for the conservatives.

  • Fits sensible policy Studies called about Call the Freeport's opportunity, arguing that reports were a great way to help the left behind regions on Dhe.

  • Now, of course, you're in a position t help drive that through.

  • And any in the middle of that you'd have ended up as a local government minister again in the department deals without me.

  • Is it that is not accidental through line of your career?

  • Or is that actually something that you is that something that's gonna quit called toe?

  • I think I think that I mean, that's something I've come to through my experiences, especially more experiences in politics.

  • As you said, the privilege of representing a northern seat and ultimately around the Cabinet table, there's generally a A small number of people who represent northern seats also represent a rural seat as well, which gives me a slightly different slant on on how things are happening down in Whitehall.

  • On also have a brilliant conservative mayor up near me and T side Ben How Chin and we have a string of marginal seats that I campaign in Darling turn, Bishop, Auckland, Stockton, South medals for South.

  • So, like my politics has got informed by that experience, and it was it's very clear, you know, partly because of the Brexit referendum, but just more generally, when you look at the data that the growth that the country has enjoyed over a period of time has not been evenly shared.

  • I think it was just a report out today or yesterday which again could prove the point that you're in London and the Southeast.

  • We have one of the most prosperous and economically dynamic part of of all of Europe.

  • But we also have several of the most unequal parts in Europe, and the gap between London on our other regions is wider than the gap between capital cities and regions in almost any other large developed economy.

  • And so that that's not great.

  • I mean, that's not just great, because everyone deserves a chance, a TTE that at that same prosperity, it's also just not great for us politically.

  • If you believe as I think everyone in this room would believe in, CPS and Catholics believe, you know, we believe in a free enterprise economy, right?

  • We think that is the best way to raise people's living standards to pay for the things we care about.

  • If people start to feel that that system isn't working for them, that they're sitting up in Teesside or wherever looking down at London and the Southeast.

  • All that sitting in a rural area, looking down at cities and they say, Well, hang on.

  • This system isn't quite working.

  • There will be much more open to experimenting in quite radical way with changing the system.

  • So I think you know, both just because it's economically wrong but also politically wrong.

  • We need to find a wayto get grow to every part of the country and, you know, way talk about free ports, and we can talk about that again.

  • That's one idea that we can use after way get Brexit done to drive growth in places like South Hampton where I'm from, which is a port city.

  • Teesside being another obvious one opportunity zones is another idea that we've discussed, Rob but also infrastructure.

  • And I've just got you have come here from North Allerton in North Yorkshire.

  • It took me just over two hours in the train, trundling along the trans panel and express That journey is about 60 odd miles.

  • It takes about the same time to get here from London, and that journey is 200 something miles right, like you know, that is simply not sustainable.

  • way to think I'm hearing here is that you're gonna cancel it.

  • Just thio.

  • Why?

  • What you're hearing is someone who is very, very committed to northern powerhouse rail and that whole agenda and there's different arguments of different parts of infrastructure.

  • But I find a very compelling one, actually.

  • You know the thesis in George Osborne's first speech about the northern powerhouse, you know, he talked about the kind of unique collection of big cities we have in the North Manchester being at the heart of that, but yet they are very poorly connected.

  • And if you take the central line, those of those of you that have come up from London or familiar with it, it's about 40 41 miles from end to end.

  • But all this is completely communicable within that.

  • If you if you did the same thing and created that same commuting, 40 mile central line type transport system around Manchester, you'd pick up several 1,000,000 people.

  • Now, if that was one economic functional area, it would it would look like Tokyo essentially was the point that he'd made.

  • And that's what you will get to drive up productivity.

  • Andan sure that economic growth is more evenly shared.

  • So you know that that's the solution that we must do.

  • And Prime Ministers said that that will be a priority for him.

  • The leads to Manchester Train Line is something that we've already essentially green lighted and flesh out.

  • How exactly that's gonna work.

  • But also broadband.

  • You know, does that represent a rural area and brought brand is equally as important as road and rail infrastructure, and we're gonna be doing that as well.

  • You mentioned earlier that you come from Southampton, but you also come from a HS family.

  • I think both of your parents were just workers.

  • They started working a pharmacy with a sort of pleased or puzzled or incredibly depressed when they said, You know what, Mom?

  • Dad, I really want to do is become a conservative MP.

  • No, what?

  • They're not remotely political.

  • So that was I didn't grow up in a political household.

  • But, you know, I've had a career in business before that, but even that they didn't fully understand.

  • I mean, you know, they're classic Indian immigrant parents, you know, They go do you go to a degree that leads to a very specific job on then you have security of income.

  • So that was their kind of driving mindset.

  • So when I first like I said, I'm gonna study economics for a level.

  • That was something that my mom was very worried about in the first instance, because it was obvious what job that would lead to in her mind.

  • Then I went to university and there was philosophy in the title of my degree that worried her even more.

  • You're one of these peopie students are there in the country?

  • Yes, exactly when it snows the lawyers that now is more lawyers in Parliament than PPS, I keep being told.

  • Not that it seems to have done us much good recently, but no.

  • So, you know, I end up having a career in business, which again they struggle toe get at first.

  • But then we're happy because it seemed secure.

  • So, politics for me, with you, it was surprising for them it was something like came to slightly just sideways, and but they've been incredibly supportive about it.

  • But, I mean, you know as well as with your boss of the treasury, both of you had extremely successful careers, you know, earning quite a lot of money I seem with without People call you an absolute asshole on social media, you know, like, oh, you know.

  • Oh, you know, every every social media channel they could find, like, you know, 24 hours a day.

  • I mean, why what?

  • Why, What is identity?

  • What?

  • You know what I really want to do is is from around the streets knocking on doors, trying to get myself selected from NPR.

  • What you say about the getting abuse and you didn't get it before, I usually just after I got elected, there was something on what basis?

  • There was one of these big protests in Parliament in Parliament Square.

  • Now there all the time.

  • But it was I forget what it was about a brand new MP, and I was walking across Parliament square with a colleague who is also a new MP at the time.

  • And you were strolling along, and as you said it, it was new, and people are hurling abuse at us and saying bloody politicians, you don't rule useless, useless politicians, useless MPs did it out of there.

  • And I said, You're a few weeks in.

  • It was you know, you're kind of like, Wow, that's quite you know, it's quite hard to take on Dhe, but I glanced at him and he was actually he was grinning and like he was really happy.

  • I was very surprised like that.

  • So I said to him like that, Jerry What?

  • Why?

  • What?

  • Did you hear what they're saying about us?

  • Politicians were not particularly flattering that What are you so happy?

  • And he said, reaching my dear boy, you have to understand I used to be an investment banker on DDE.

  • It was It's not clearly Noel, great, coming from finance.

  • But no, you you said, Well, why don't actually was my parents that motivated me to do it or not a political way.

  • I think you said my dad was a GP.

  • My mom was a pharmacist, and I grew up working in their surgery in the pharmacy, delivering medicines, toe people who couldn't get in to pick them up.

  • And people would always stop and talk to me about my mom and dad, right?

  • So they would also your Mrs Stewart, Exxon, your doctor Jackson.

  • And then they'd have some story about how my parents had help.

  • They're more their parent's or grandparent's or Children, and I thought that was amazing.

  • I mean, they have done the same job in the same place kind of a mile from each other for 30 years, and it was pretty clear that they as individuals, were able to have a pretty amazing impact on this community around us.

  • And you saw that whenever when someone came to say something and that I found very inspiring.

  • And that was really my motivation for becoming an MP was to be able to make that same difference in a community as well.

  • I hope I am able to do that in North Yorkshire.

  • And becoming a Tory MP was presumed because you'd studied economics.

  • Yes, the medicine route was unavailable to me.

  • Yeah, exactly.

  • But I said, it does give you.

  • I mean, you know, we we take it for granted.

  • But, you know, my dad was a doctor.

  • He had surgeries, MPs, we have surgeries.

  • I mean that that's what we do on that connection that you have with your constituents is often lost in all the debate in Westminster.

  • I mean, finding my predecessor is William Hague, and William would always it's a thing unique connection we have in this country that he be, It's, um, summit.

  • As foreign secretary, it's sitting there trying to resolve Afghanistan on Iraq or whatever crisis was going on at the time.

  • It's a very important summit.

  • Had been sitting with Hillary Clinton, who was sexually state.

  • They're on dhe, they finish this thing and then she'd be like, Oh, what are you doing now?

  • And then he literally like, Well, I'm gonna get on my plane, fly back to Yorkshire and then I'll be sitting in a village in holes in the Yorkshire Dales.

  • You know, talking to Mrs Chapman about ex wives like they find this amazing right, like Hillary Clinton would find this whole thing, you know, both baffling and wonderful, right?

  • To maintain that connection with your local community.

  • You talk about that connection, which is a good save, intimate the next topic.

  • So if you take any of the attractive CPS tote bags that were heading out here, you'll find in it a copy of it.

  • Pamphlet I've just published called Popular Capitalism on what it is is a kind of attempt by me to synthesize, kind of basically like it's some of the owners.

  • It's something even give to someone who says, Why would you be a capitalist?

  • Why aren't capitalist evil on conservative?

  • Aren't Tori Tori's or evil?

  • Free marketeers are evil, You know.

  • You only care about the rich.

  • You only care about the the the international bankers on billionaires.

  • But but one of the things I discovered researching that is you.

  • You come to it.

  • Oh, you come to an event like this, You come too and you're surrounded by members of the tribe and you'll say to each other, Of course, we are the party of home ownership of low taxes, off law and order, of opportunity, of aspiration.

  • And then you go out and ask the voters, What do you think?

  • The story Stanfel on dhe?

  • Certainly under the lost kind of administration, the answer came back.

  • We don't know what the sorriest and well, when.

  • When we do know, we think it's it's, you know, it's It's for the rich.

  • I think you did.

  • 2015 2017 u Both of them are kind of campaigns driven by.

  • Don't vote for the other guys rather than vote for us because this is how we will use our values to make your lives better.

  • So is that I think it doesn't.

  • Just when you're Brexit is a sort of superhuman challenge.

  • But then, beyond that, there is this all that challenges of connecting two people in persuading them to you share their values.

  • How on earth do you go about doing that?

  • Yeah, So that's why you CPS is so important and cap pecs and everyone is interested in these ideas and great to see so many people here.

  • You know, we clearly after 20 after the election in 2017 on that election campaign and thereafter just kind of lost our mojo when it came to having confidence in our economic beliefs.

  • And I remember I was sitting here one of our panels this time last year and, you know, Jeremy called Labour Party just announced they're kind of plan to take 10% of companies and if they would give them to workers, and we literally had nothing to say about that, right?

  • And we just didn't know how to react to it on, But it was an extraordinary thing, right?

  • I mean, that is essentially just kind of state expropriation of someone's hard earned business that they've built up.

  • And it was just a good example of just tell a lack of economic narrative.

  • So way must absolutely correct that, right?

  • We're not going to win any elections unless we have something compelling to say about our ability to run the economy.

  • But not in this kind of wonky way.

  • Our ability to run the economy in a way that's gonna work for your family, right?

  • It's gonna be more money in your pocket.

  • It's gonna mean the public service is you care about funded, et cetera.

  • You know, there's a couple of things.

  • One is the policies.

  • But the second is what you touch on in the report in the polling.

  • It's how we communicate them.

  • And I you know, if you do, if you're gonna be self critical about us as a party, I say, sometimes you know our language when it comes to the economic stuff tends to be a bit dry.

  • It tends to be a bit kind of accountant oriented.

  • It tends to be a bit wonky, you know, we've got to be more.

  • I think emotive about how we describe our view of a strong economy and wire strong economy is important, and there is a very strong moral underpinning for why we think we should run sound finances.

  • There's a moral underpinning for why we think we should respect private property and let people can keep more of the money they are.

  • And I think sometimes we shy away from making those arguments, and I think we're very fortunate now.

  • Have a leader who is not only a brilliant communicator, also deeply believes these things.

  • And I made this point in the leadership campaign.

  • It's for the first senior Tory politician in a long time who was unafraid to use the word wealth and talk about wealth creation on why that was a good thing.

  • And it was kind of you sit up when you hear that idea because that well, no one said that in a while.

  • But he's able to link that.

  • Then he talked at the symmetry.

  • Between that and well funded public service is in a way that I think cuts through two people on It's the start of trying tow, have that conversation and persuade people of why what we're doing, said has values in a moral underpinning.

  • But well, it's interesting way have a couple cut out of Margaret Thatcher at the back if anyone wants to take a take a selfie with her later.

  • But the first page of Thatcher's 87 manifesto is basically the first page of David Cameras 2015 manifesto, which is saying, we because we have security in Great in keeping great comic very strong, we are able to afford the N H s.

  • I mean, it's not as if the argument hasn't Bean made before.

  • It's just people.

  • It's it's you compared with the year you're not funding the net just properly.

  • It's quite hard.

  • Yeah, I think.

  • I think the challenge with that.

  • That manifesto of hers, I think it was, I think, 79.

  • It was a good line in it about, you know, her priority is, she said, people on the way.

  • They live their lives right as it was right up front.

  • It's just kind of an overarching, overarching message, and it was whatever you she did, it was just making sure that connected to ordinary people, how they live their lives on a day to day basis.

  • And I think a part of the issue we've had is the last nine years wth e economic debate has been almost singularly about public finances on borrowing and spending, and that is quite a narrow territory tohave an economic conversation on I think what you will see in the next election campaign is, of course, that is, that is gonna be important, and it will be a part of it.

  • And we will contrast our sound management of the nation's money with Laver labors profligacy.

  • But on the on the other hand, there will be a much broader I think narrative or there should be about economic competence, economic management or the other things that go into having a successful economy that will make a difference people's lives and I think that we need to do.

  • But I mean, obviously it's it's noticeable The spending caps have been turned turned back on some extent.

  • But you're saying that there there is it there is a limit to the largest.

  • Yeah, I mean, we clearly have turned a dial on austerity, right?

  • And that spending review that the Chancellor and I conducted a few weeks ago.

  • It was the largest increase in day to day spending for departments in 15 years without a doubt it represented a change on that narrative.

  • Austerity is over.

  • Not a single department faced a real terms cut for the first time again in 15 years.

  • So it was definitely a change.

  • And does that mean that spending taps are on?

  • Absolutely no.

  • I mean, we re conducted that spending round within the existing fiscal framework that Philip Hammond had left, which means that borrowing and the forecast year would be less than 2%.

  • Debt was still forecast to fall in that year as well.

  • So it was.

  • It was a necessary change, I think, partly for political reasons, and that this narrative austerity has to end, but also that you know the sound economics for it.

  • We've got the economy now to a a place where borrowing is under control.

  • So it's right to now invest in in what people care about.

  • And so you know, that was that was a change.

  • But I think in the future that you will start to talk more about infrastructure and capital investment.

  • Andi think you might hear it more about that this week from the chancellor, but in terms of obviously the way we argue about it at some at some point a zealous spending review.

  • But but people that is sort of massively determined by the fate of the shape of Brexit.

  • I mean, you know, what are you?

  • How relaxed are you about a deal where there's no deal scenario?

  • How likely do you think those own at this point, What, without a doubt, if if we end up with no deal, that will require an economic response?

  • The chance has been very clear that the Treasury and the government stands ready to provide whatever the appropriate economic responses at that time.

  • There's lots of levers that one can use.

  • Look at the landscape and make the, you know, appropriate adjustments investments as are required.

  • I mean, typically, there would be a fiscal event in the autumn.

  • You would expect that kind of that would be planned for.

  • But you're right, you know there are.

  • There are two different versions of what that might look like, and your response in both of those cases would be slightly different.

  • But it doesn't mean we can't prepare for everything.

  • I mean, the yellow hammer stuff, stuff that's going around, I'm told by people who really know that that represented the when the new government took office there.

  • You know, we really haven't been enough prep on idea where, but that actually, you know, there has been a awful lot of preparation for Where would you have a sort of on a sliding scale from 1 to 10.

  • Where would you say we were when you took office?

  • And we're Where are we?

  • Where are we now?

  • Well, I think what you did see not too.

  • You say that the past, what you've without down seeing from the first day of this government is an enormous focus on this.

  • So there's a if you've got Michael coming to any of these, but there's a There's now a daily Cabinet committee called XO that meets for probably an hour and 1/2 every single day.

  • Michael chairs that I'm together with.

  • The decks administer the only other people that are there every single day.

  • So I've come Bird's eye view of what's happening on the other ministers air coming as it concerns their their department, depending on what we're discussing.

  • But this is a committee unlike unlike a normal committee, where there's just a lot of chat and this is a committee where on the wall and the reason we have it down in the Cobra rooms is so that we can have this functionality Thio give you behind the scenes what's happening in.

  • And it's just a room which has screens which are attached to computers where you could have just live recording of what's going on.

  • And so, as we're discussing, you know, we're making decisions.

  • They're recorded, right?

  • We've decided this move on or this is what needs to be done So you don't have an answer on this.

  • You over there, go figure it out and come back tomorrow, the day after next week with a clear deadline with an answer on it.

  • And we've been operating at that pace now for that since the end of the end of July and it's made an enormous difference.

  • Yeah, on all the practical preparations that are happening on the ground, all the things that are happening behind the scenes that you, you know, that would be hard to see because of the focus from government.

  • Because of the funding that the chance was provided £2 billion of incremental funding this year.

  • You think we are in much better shape than thing we were previously, and you've seen that It's not just me saying it.

  • The Bank of England recently actually upgraded their own four cars or do they have a relatively, You know, they have their view of what no deal will look like.

  • But whatever that view was, they have now upgraded it because because of the extra preparations that have been made.

  • So I think that is evidence that we're making real progress in on this too little to worry about.

  • I think I think that the most obvious challenge from no deal will be at the short straight.

  • I mean, everybody knows that and you don't see that way.

  • We are quite relying on that trade flows.

  • There will be new customs procedures that are required, and because of the nature of that trade, roll on, roll off.

  • It's a closed loop circuit.

  • You know, we want to minimize any disruption that might happen there.

  • So we've done an enormous amount and HMRC department transportation are doing just a massive amount of work to simplify our custom systems, so they work really well for people who have new customs procedures to follow actively engaging with small business big business Holy is especially to make sure that they are gonna be informed about the new things that they will have to do.

  • And you're seeing that on the ground you're seeing, you know, truck pop up sites appearing all over the place, not just here, but in Europe, the marketing campaign that you would have got a handle off booklets for everybody on.

  • We're seeing it behind the scenes in all the activity that people are doing and registering for the right.

  • Does this Does this include a brilliant secret plan for the Irish border?

  • Well, this is what they are, is border.

  • We said very clearly there will be No, there will be no infrastructure and we will not plan to do anything differently.

  • And we have a very specific day, One model for that.

  • So when already they will be very little changes.

  • Obviously, you know, similar.

  • We can't control what the French might do.

  • We can't control what the Irish might do.

  • As you would imagine at a technical level, there are lots of conversations that are happening on the ground between officials.

  • Now, obviously, there will be a political kind of overlay on that might ultimately determine what happens.

  • But, you know, I think they're a good, constructive working relationships between our customs.

  • People are poor people on those over in Calais, and you're seeing that you're seeing them.

  • They're also investing in more customs officers.

  • They set up in you border inspection posed, you know, they've got plans.

  • That's to inspect some of the animal side of things.

  • They they've been very clear at an official level that they also want to prioritize flow.

  • But ultimately, you know, they will make decisions when we get there on flipping.

  • That last question on it only said, What are you most excited by about Brexit?

  • You were really voter back in 2016 u know What's what is it like the key things that you think?

  • Yeah, well, if I put them in in three buckets, I think one is obviously we know we touched on it before, but economic innovation, right?

  • I mean, you think one of the one of the things that we've been grappling with for a while is our You know, our growth, which is still superior to many of our European neighbours and certainly will be this year.

  • When you look at what's happening, there is still not as fast as we'd like.

  • We can't trundling along at one and 1/2 percent of GDP every year.

  • You know that.

  • You know that's not Stella.

  • You know, we'd love that to be higher.

  • I think we'd always that would.

  • That would also solve many of the some of the challenges that we faced with an aging population of greater demand.

  • A public service is ultimately we could generate high growth.

  • That would be fantastic, and people would feel that in their pockets.

  • So you know, what can we do differently after we leave the EU that might accelerate that growth?

  • Obviously, we can look differently at regulation.

  • Michael particular George Freeman have talked about, for example, in the R and D and the innovation in life sciences space.

  • There's different things we could do.

  • We mentioned Freeport's ous, an obvious example.

  • So I think that's one bucket of exciting things.

  • The second is around trade on dhe, you know, any way you look at it, I wrote about this previously.

  • I think the you is No, it kind of the global phase of free trade and If you look at the experience of midsize economies like Canada, like Australia, like South Korea like Switzerland, these rural economies that are smaller than ours, they all have a better set of trade agreements for their economy than we do for ours whilst being part of the EU.

  • So I'm confident that, you know, over time we can develop a better set of trading relationships which will cut costs for people when they're doing their daily shop.

  • Because we're not protecting industries in Europe they want to protect.

  • But also we link our economy to some of the faster growing parts of the world so that that's the second exciting opportunity on the third thing to be immigration say that coming from a family of immigrants.

  • But you've got to have consent from people about what you're doing.

  • And clearly when it comes to immigration, there is rightly a perception that British politicians are not in control of our immigration system, and that is as a fact correct, right?

  • I mean, you have an open border with 27 other countries with no say over how that's working, you know, that's not a system that anyone else in the world replicates.

  • So once we change that and put a system in place and I think the important thing there is the world control right, I think people are nuanced about this.

  • They don't want to pull up a drawbridge and bill the war.

  • All they want is to know that their politicians accountable to them, are in control of that system.

  • So we figure out who's coming here, what they're doing when they're here.

  • And I think once we do that, the fact that we're going to do it, that allows us also to open up to very skilled, highly talented people from around the world on You're seeing that now.

  • And you've seen that in some of the announcements that governments been making about students and highly skilled, wanting to attract highly skilled scientist and things to the UK You know, once people feel that you're in control of the system, they're gonna be much Maur, I think, willing to engage in a debate about well, let's be more open toward these other people who will be beneficial to our economy and our society.

  • Well, there's lots of things I'd like to ask you, but I am conscious that people, but we have questions of their own.

  • So if we can get the microphones Ah, going around, um, from the back room.

  • The gentleman right in the front, Here on the gentleman.

  • Right at the back there.

  • Okay.

  • Hi.

  • Thank you for such an interesting talk, Molly.

  • I'm a reporter for City.

  • Why?

  • It's interesting you talk about the challenges of an aging population.

  • One of the government's most astronomical costs is state pension and benefits for all the people.

  • What assessment have you made about no deal and the potential impact on those two things?

  • Well, given that those are entitlements of people have they're not they're not changed by no deal or not, we've actually made a, I think, a good offer.

  • Two British citizens that are currently resident in the EU and they have a particular set of pension arrangements on.

  • We've actually extended what they get is called a technical thing, but their pensions may or may not get operated, and we've actually said that they will get operated for some period of time now after leaving to give them the security and reassurance that they need, which is a new things that they will be now in a better situation, but they won't.

  • It won't have any direct impact on people who are here and receipt of of their pensions.

  • A tal.

  • But you're right.

  • I mean, there are challenges from from an aging population.

  • The O B.

  • L.

  • A doesn't interesting.

  • What's it called fiscal risks for a report on, You know, they do some very long term projections and you'll do.

  • The impact of an aging population on pensions is one area, but also on on the N hs on social care that has that has real challenges for us.

  • Not just our government or governments will have to think about that.

  • And that's why I think ultimately, the only way to solve that problem is to make sure that our economy is growing fast enough to afford all the things that we'd like to do.

  • What was your take on labor's plan?

  • Thio.

  • No toe busy little invention age back to 70.

  • Yeah, I mean, that would clearly be not only unaffordable, but also just is not right.

  • I mean, if we're all living longer.

  • If we can't have a system, it just doesn't work.

  • If if you've got more people who are living longer.

  • And remember, I can remember the exact day age that someone was when we first did up.

  • The pensions is the new probably will when this pension system was set up off the life expectancy.

  • Three old.

  • The old joke is that Bismarck sets up the German pension system, which everyone copied so that the average age was pretty much when people drop dead right so that it looked very generous.

  • But actually the number of flavor that was very and our dependency ratio, the ratio of working age population, tow those who return I don't see that has changed considerably since the system was set up on.

  • Unless the system continues to evolve and make sure that there's parity between those two things, it's simply just gonna it will, You know it's not affordable.

  • So I think the reforms we made a few years ago when we're in coalition, where of course they were difficult.

  • But they were the right reforms to make.

  • People had the time they needed to transition, and it's right with the system is dynamic.

  • And as life expectancy continues to evolve, the system evolves.

  • With that.

  • Tim Frost from home and some pancreas.

  • But wouldn't it be wise for us to get on with appointing the new governor of the Bank of England so that we could allow Mr Carney to return to Canadian domestic politics?

  • I can't comment too much on that.

  • You know, there's a process that's that's ongoing, and I know the chancellor is is engaged in that could get you.

  • There has been a range of people that have been mooted it.

  • It's It's a very attractive job, this fantastic country.

  • It's an exciting place to be to live, you know, we should be on a track, very high quality people.

  • But it's important we get the right person, you know, my general view, Askew kind of hinting at, You know, there's an appropriate degree off political engagement that people in that job should have, right, And I think that is going to be an important part.

  • Make sure we get the right person that you know.

  • The lines are appropriately drawn for those things.

  • We have a forest of hands down from here.

  • So if you just go along with the high building Scott from The Yorkshire Post, you're really clear that if you'll support for northern powerhouse Rail, which is really, really good to hear you weren't so clear on hate just to a lot of people say, you know, we need both What is your position on HST?

  • Can we just go down?

  • And I am Martin from the local government chronicle.

  • You talked about regional disparities, regional growth level.

  • Now what's the answer to the asymmetric devolution we have in England, and especially for rule and county areas that currently don't have the same devolution as the metro areas on the lady behind you?

  • Hi, I'm Cindy from the Spectator and really interesting to hear you talk about the abuse that you got us a new MP.

  • I was just wondering what you thought about the row going on in parliament this week about the abuse that MPs kit, especially using words that this government prefers to use, like surrender and collaborating.

  • I didn't take those in reverse order, so, you know, I think it's off the I'm very fortunate.

  • I feel when I hear about what is going on with lots of my colleagues, it's I'm in my constituency.

  • At least I don't I don't seem to suffer from the same level abuse that others the others do, which I'm grateful for it.

  • And it kind of horrified me when I hear some of the stories that you know my colleagues are having to endure.

  • And I think, you know, I think when you conflate two things there, right, so one is the use of this turn surrender.

  • And one is the kind of abuse of MPs.

  • Clearly abusive MPs is wrong.

  • We should stamp that out.

  • And we should We should come down that as hard as we can.

  • It's not healthy for anyone.

  • Whatever side of the of the divide you're on.

  • But the use of that, you know, this use of the term surrender is something that I don't have a problem with, right?

  • You know that we're in politics.

  • We talked about the importance of communicating before on the prime Minister is that he has an ability to communicate.

  • It's a word that cuts through two people and if people don't like it is because they don't like, you know, the fact that underlying that is what they're trying to do.

  • It shines a spotlight on that which is giving up control of the process.

  • The Brussels rather than us is a sovereign country being in control of our Brexit process.

  • So surrender, I think, is a perfectly reasonable word to use.

  • And I think people don't like it because it's effective in as that shining a spotlight on the kind of attempts that they have to undermine our process on the government.

  • Chronicle Night, Sierra's former local government minister dear to my heart yet, no.

  • So you're not represent a rural area, and there is certainly a feeling that Orgel this devolution is very city focus.

  • Now we do have a couple of devolution areas already that are not as urban er's that which you'll be aware off.

  • But you are right, and it's something that the Secretary of State and Jake very actively working on.

  • We discussed this.

  • A prime minister discusses that cabinet just a couple of weeks ago.

  • Andi, I think we've talked about plans that we might have a future devolution in the models that will be, and that's something that has been talked about for a while.

  • So I don't watch this space on, but you are actually right.

  • We need to have an offer that works for everybody, not just people who happen to live in Manchester or Liverpool or wherever else and and your question about ages to a northern route on HS to weave appointed someone of government appointed Doug Oh Kavita conductor relatively rapid review of it, its due to report at some point in the coming months.

  • I don't think there's an exact date, but it was designed be done quickly on.

  • The reason for that is simple that the cost of this thing has has escalated considerably from when it first was approved on the party.

  • That's because a lot of the estimates for the engineering and everything has turned out to be wrong.

  • Part of it is because of changes that were made as the bill progressed through Parliament.

  • But given we have a kind of go no go decision at the end of this year to make, it was it was new Prime Minister, new government.

  • It's right that we were kind of reviewed it.

  • Given the cost escalation, that work is ongoing.

  • It wouldn't be appropriate for me to speculate on the outcome of that, but I think you're right to say, you know what, what does it just to me for people in the north, right?

  • And you know what?

  • Nothing.

  • There's two things.

  • One is most people the North would probably say, Well, what's a rail line between Birmingham and London got to do with me?

  • But there's a chess, too, does go all the way up, and there's different phases on it.

  • So the Birmingham to London bit the bit that's causing all the controversy at the moment is phase one.

  • And then there's something called phase to be, which is for those of you that are into this stuff, which is the which is the why the top that comes up into Yorkshire and comes up into Manchester.

  • Now that that is actually linked to northern powerhouse rail, you need those connections at the top to make some of the northern powerhouse rail projects work.

  • So, you know, whatever skepticism people might have about a chess, too, if they think it's not a Northern project.

  • Bits of it certainly all relevant for this goal of connecting up the northern northern cities.

  • But I said they are.

  • They are different things, you know.

  • Birmingham, London, the original thesis for investing in that line with capacity that that line was that capacity.

  • You know, the reason to connect up all the northern cities is about making them commute herbal within themselves, which will drive economic growth.

  • So I think economics would tell you that there's probably a, you know, a higher return for things that do that then, then just increasing capacity on online from London to Birmingham, right?

  • So but different things will all have different pay box in different returns.

  • But certainly I think the return on increasing the connectivity among northern cities will be very high and a same again on this Higher.

  • You've often in the language, which we're using about some of the new spending which is coming through.

  • It's being turned his investment, and it's coming on.

  • What is seemingly current expenditure?

  • How much of the new money which is going to be announced actually be, will be going into making sure that education three N hs will be to have transformed and well funded for the future rather than simply acting to stop gap Thio say fun to fund where the capacity isn't there at the moment.

  • So yeah, you were never a couple more Stuart believable.

  • One thing I heard in think Jeremy Hunt's um, leadership country.

  • He talked about using expanding the use of auto enrollment for health and social care for the future.

  • I just wonder if you could talk.

  • Maybe if you had any more ideas about how we can use the ideas of water Roman to reduce the state liabilities, which is horrendous for the future.

  • On what lost one from Mr You talk about Boris being an effective communicator.

  • So is Jeremy Corbyn, as he showed a couple of years ago, cutting through a wide variety of people.

  • Are you more or less worried about him?

  • The New World to you and 1/2 years ago?

  • Great.

  • So on the social care question, look.

  • So that physical live discussion about what a long term solution to social care looks like.

  • I'm not like that.

  • It's tricky, as we discovered in the last election campaign, and it's tricky, I think, partly because people don't understand the current system because unless you've actually had to experience it, you might have a view that it it will be okay for you, and actually, as it's currently designed, you know, you could have some of your assets at risk and then.

  • So if you try and tweak that and it's better than it is currently, but you're hearing it for the first time, it still sounds bad t many people.

  • So I think trying to solve it is gonna be tricky.

  • Of course, You think contributory schemes, as you mentioned, have been mooted in the past.

  • They no doubt will be part of conversation.

  • The select committee in Parliament, the joint across party selectivity, health and social Karen, local government select committee.

  • You know, I think suggested something similar to that doing it through a model on the German system.

  • So it's certainly an idea that is out there, and not, in my view, is if you're gonna look at this, you've got to look at the full range of options if we're gonna try and solve this problem right, that you put everything there to have a look at on go through it.

  • But also that work is being led by the health secretary, you know, as as we speak t the question on spending.

  • You're right.

  • So the spending review concerns day today spending current spending is you rightly acknowledged, you know.

  • Is it in general spending reviews are for multiple years because we wanted to do the spending review very quickly and get it done so we could focus on Brexit and some of these other things.

  • We decided to do a one year spending review, which also takes less time.

  • And so, in that sense, you know, fair enough, right is only a one year spending review.

  • Within that, though, there are a couple of things, and actually the two examples you raised where there is more long term certainty one of the N hs, which, as you know, has a five year settlement on DDE that a very, very good five year settlement £34 billion at the end of that five years.

  • So they have a plan.

  • They know what they're doing.

  • They should be out of execute to that on start delivering with that with that extra resource.

  • And indeed, Simon Stevens, who runs the N.

  • H s when that plan was announced that I've got what I need to go and execute my plan, which is a public.

  • So I think that's good.

  • And then uniquely schools with the other area where, in the spending review, we decided to do a multiyear settlement, And that's because the prime minister, specifically it had pledged a certain amount of a certain time, and we wanted to deliver on his promise.

  • So schools now have a three year settlement, so they also complain.

  • And part of that planning has enabled them to figure out a new way to pace teachers.

  • And you would have heard about our plans to get Teacherssalaries up to £30,000.

  • You know, they can start to have those conversations because they've got that slightly more medium term view of that, what their budgets are going to be.

  • But you're right.

  • I mean, ordinary would be better to have multiyear spending review because it gives you that ability to plan over a medium time period.

  • But your other point about investment, you know, this was dated a spending, you know, we the chance has been very clear that capital investing in what we most of think about is investing in infrastructure and innovation and broadband.

  • That's something that we haven't come to yet and we will on, he said.

  • Very specifically.

  • You know, we should look at the interest rate environment that we're currently in, which is attractive and see whether our plans for investing in infrastructure for the long term are right, given the interest rates.

  • And if you're gonna do infrastructure investing, it is definitely better if you have a longer term view because planning those kinds of projects, they don't they don't happen overnight.

  • You need to have a multiyear view.

  • So that's something that we're we're looking at.

  • And then the last question was about Are you more or less?

  • Yes.

  • Yeah, No, Definitely, Definitely Less.

  • Definitely less right.

  • Like I mean, you know, he kind of cut through in a way that took us by surprise.

  • You know, we've learned a lot more about him since then, and everything that we've learned has been, I think enormously helpful to us politically, not least the conference that they had ah, week ago, where there is just so there are so many things. 00:44:15.0

in the spring.

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