tv BBC News at Six BBC News October 29, 2018 6:00pm-6:31pm GMT
the last budget before brexit. the chancellor says the era of austerity is coming to an end and says millions will pay less tax from next year. philip hammond calls it a budget for britain's future as he announces more money for universal credit, social care, the nhs and schools. now we have reached a defining moment on this long, hard journey. opening a new chapter in our country's economic history where we can look confidently to the future. mr deputy speaker, the reality is that whatever the chancellor claims today, austerity is not over. the chancellor also unveiled what he called a tax cut for 32 million people, with a rise in tax—free personal allowances from next april — a year earlier than promised. but with accusations from labour of half measures and quick fixes, we'll be looking in detail at what it all means for you. also on the programme tonight... united in grief — the family of the leicester city chairman pay their respects
as players join the tributes following saturday's helicopter crash. wreckage is found off the indonesian coast but no survivors after a plane carrying 189 people crashes minutes after take off. and what now for lewis hamilton as he basks in his fifth formula 1 world title — securing his place among motor racing's greats? and coming up on bbc news... black armbands and a minute's silence at wembley tonight. tottenham and manchester city will remember those who died at leicester. good evening and welcome to the bbc news at six. the chancellor has declared that austerity is coming to an end as he delivered the last budget
before brexit, saying the hard work of the british people is paying off. philip hammond announced more cash for public services and said he would press ahead with tax giveaways for more than 30 million people a year earlier than planned. on the economy, there were modest increases in the forecasts for economic growth, and borrowing will be lower than expected, releasing more money for public services. there was more cash — as previously announced — for the nhs, and extra money for social care. plus an additional £1 billion for the mod, and 1.7 billion to help people switching to the new all—in—one benefits system universal credit. and he brought forward by a year a rise in the tax—free personal allowance. which means from next april, 32 million people will be paying less tax. but the labour leaderjeremy corbyn accused the chancellor of delivering a "broken promise budget", and said that austerity was far from over. our deputy political editorjon pienaar has ourfirst report this evening.
is this really the end of austerity, chancellor? not quite yet it isn't, but philip hammond has reworked his act, not quite so stern and a few more smiles. is a no-deal brexit haunting this budget? and yes it was, but today with brexit day rushing up fast and ten years off austerity behind, he turned up in parliament with a promise of better times ahead. the right honourable philip hammond. this time be austerity chancellor had come with words of encouragement.” austerity chancellor had come with words of encouragement. i present to the house a budget for britain's future, a budget that shows the perseverance of the british people finally paying off. he clearly meant to make an impact. because today, mr deputy speaker, i can report to the british people that their hard work is paying off and the era of austerity is finally coming to an
end. but there were strings attached and a message to mp5, britain needed and a message to mp5, britain needed a brexit deal to guarantee its future. we are at a pivotal moment in our eu negotiations and the sta kes in our eu negotiations and the stakes could not be higher. get it right and we will not only protect britain's jobs, right and we will not only protect britain'sjobs, businesses right and we will not only protect britain's jobs, businesses and prosperity, but we will also harvest a double deal dividend. what was on offer today? we had heard about another £20 billion for the nhs in england, and he had a new announcement. today i can announce that the nhs ten year plan will include a new mental health crisis service with comprehensive mental health support available in every major a&e, children and young people's crisis teams in every part of the country, more mental—health ambulances, more safe havens in the community, and a 24—hour mental health crisis hotline. there was
more, his mps are demanding it, more cash focused social care in england and another billion pounds for defence. and for schools struggling to pay the bills, there was this. but i recognise school budgets often do not stretch to that extra bit of kit that would makes such a difference. so today i am announcing a £400 million in year bonus to help schools by the little extras they need. the opposition were not impressed with that, or with anything much. the chancellor was in full flow. someone had to pay, and the tech giants, google, facebook, presented a big target. we will now introduce a uk digital services tax. this will be narrowly targeted tax on the uk generated revenues of specific digital platform business models. it will be designed to ensure it is established tech giants rather than our tech start—ups that shoulder the burden of this new tax.
we knew there would be help for high street traders in england. it had been helpfully leaked so that we did. athird been helpfully leaked so that we did. a third off business rates for small retailers. an annual saving of up small retailers. an annual saving of up to £8,000 for up to 90% of all independent shops, pubs, restaurants and cafes. the chancellor was always likely to address big issues, big problems for so many people, so half £1 billion for housing and every bit as sensitive, problems for millions claiming universal credit, the single payment that replaces six benefits. there will be more to ease the transition and claimants could keep more of what they earn. and today, i can tell the house that i am increasing work allowances in universal credit by £1000 per annum ata universal credit by £1000 per annum at a cost of £1.7 billion annually once roll—out is complete. benefiting 2.4 million working
families with children. and then it was over. philip hammond content with his day ‘s work. was over. philip hammond content with his day 's work. we are at a turning point in our history, and we must resolve to go forward, not backward, and work together to build a britain that we can all be proud of. i commend this statement to the house. tory mps were happy, but it is labour'sjob house. tory mps were happy, but it is labour's job to house. tory mps were happy, but it is labour'sjob to be unimpressed with the budget and tojeremy corbyn couldn't wait to get started. this isa couldn't wait to get started. this is a broken promise budget. what we have heard today, half measures and quick fixes, while austerity grinds on. and far from people's hard work and sacrifice is having paid off, as the chancellor claims, this government has frittered it away in ideological tax cuts to the richest in our society. the government's opponents queued to condemn what they had heard. all the big
decisions about how we pay for improved public services and the so—called end of austerity, it has all been put off until next year. wales was hardly mentioned at all in the budget. the part of the uk that needs investment more than any other, we are at the bottom of the economic league table at the moment and yet we get crumbs off the table once again. he hasn't ended austerity, he has continued it. we have a situation where the universal credit cuts that have been our consuming to be passed onto people. the chancellor has promised brighter days to come. he is also admitting things could get colder first. troubled times in politics are far from being over. john pienaar, bbc news, westminster. so, with the talk of ending austerity, what does that mean in hard numbers for the economy, and where will the money be found? 0ur economics correspondent andy verity is here with the details. one reason philip hammond can even talk of ending austerity is the economy is growing faster than the official forecasts said it would. in the spring it was forecast to grow by only 1.3% next year.
now they're forecasting it'll grow a bit faster — by 1.6%. faster growth means more tax money rolling in and therefore less need to squeeze spending. what you have seen is the government getting a pretty big fiscal windfall in this budget, reflecting the fact that tax revenues are looking stronger this year and they are likely to remain so in the next five yea rs. likely to remain so in the next five years. the choice the chancellor has made is to spend that windfall rather than save it. so what does ending austerity mean here? well, since the financial crisis the government's been trying to reduce the deficit — the gap between its spending and its income. but because there's now more tax money rolling in than expected, the official forecast is that philip hammond will only have borrow £31.8 billion in the next tax year. a lot less than previously predicted. the amounts the government's had to borrow over the years add up to the debt.
today we heard that as a proportion of the economy, debt‘s been falling. from a peak of 85% of the economy two years ago — or about £1.8 trillion. to just under 84% now. down to 74% five years from now. philip hammond wants that to keep falling. but he also wants to boost spending on the nhs by £20.5 billion. you might expect that the chancellor would need 0nce once you take account of spending on health service, other spending isn't being cut in total but it isn't going up and we still have some cuts to social security coming through. so on to social security coming through. soona to social security coming through. so on a very tight definition you might be able to stay austerity is over. you might expect that the chancellor would need to raise taxes to stay on track to cut the deficit. but instead, philip hammond's announced further spending measures and tax cuts. including boosting the amount you can earn before you pay tax — one year earlier than planned. if you add in the extra nhs spending
decided injune — then five years from now he'll be spending £30.5 billion more as a result of the measures announced today — that's a huge spending boost. not very austere at all. keep in mind that all of those numbers are based on the government signing a deal with the european union before brexit date next march. without that, all the official predictions for what happens to the economy next year can't be relied on. today's budget was the longest for over 20 years — the chancellor was on his feet for an hour and twelve minutes. so what else did he announce? the national living wage is to rise from £7.83 to £8.21. duty on beer, cider and spirits has been frozen. and as previously announced, there'll be no rise in fuel duty. there'll be help for the high street, with a cut in business rates for small businesses. the chancellor also announced that £420 million will be made available
this year to highways authorities to help tackle potholes and other minor works. 0ur consumer affairs correspondent colletta smith has been to a car mechanics in chorley, lancashire, to find out what today's budget means for workers and businesses. today i present to the house a budget for britain's future... as the chancellor got started, work was well under way here in lancashire. fred is in charge of the nine staff here but he's not worried that extra 400 million from philip hammond spending on fixing the potholes will put him out of business. spending on fixing the potholes will put him out of businesslj spending on fixing the potholes will put him out of business. i don't think so. i think will still be here. we are very busy at the moment so here. we are very busy at the moment soi here. we are very busy at the moment so i don't think there is a problem with that. it's about time the potholes were fixed, isn't it? pretty big potholes around? pretty big ones, you could fall in the man's never get out. it's a family affairand son sean man's never get out. it's a family affair and son sean hasjust man's never get out. it's a family affair and son sean has just bought his first house in a development
nearby. it's definitely increased what we do. our customer base is so much bigger. it grows every year, new people turning up all the time, and we retain our existing customers. and getting people who are living here that have come from all over the country. it has been so much better for us. it's only going to increase, i think. in much better for us. it's only going to increase, ithink. in the much better for us. it's only going to increase, i think. in the back office, twin sisterjessica. for her the announcement to help small firms afford apprenticeships will not solve their bigger problem. there's just not enough people at the minute willing to train to do the job. average pay in chorley is a little below the national average. silvia grew up here and says it's good news for people's cash in their pockets. some people on more than a living wage at the moment, but they will benefit from the tax threshold going up. and that will be the main
difference for them. and the era of austerity is finally coming to an end... do you believe him? no, not at all. national minimum wage, it isn't enough to cover odds and ends. bills are going up. making work pay is the chancellor's goal but here in chorley it didn't seem to make a difference day to day. coletta smith, bbc news. live now to our political editor, laura kuenssberg. the chancellor said the hard work of the british people is paying off so are we seeing an end to austerity? it is true in this sense, and the government wants us all to think it's a big change in direction. for yea rs it's a big change in direction. for years and years tory chancellors have stood up to deliver their budget, talking about how on average government departments will see the amount of cash they have to spend shrinking. what philip hammond said today was that from next year, on average, that will be reversed, and the amount of money that they have
to spend of our taxes will in fact start to go up again. so clearly philip hammond and theresa may are trying to carry out some political feat to swing the pendulum back from the direction it has been going for quite some time. but there is a big difference between rhetoric and real lives of people on the ground. after eight years where many, many members of the public have felt the sharp end of budget cuts in different government departments. and it also only stacks up if the forecasts that we re only stacks up if the forecasts that were put forward today, the estimates of how much money there will be for the government to spend, proved to be right and if there is a brexit deal that sees us leave the european union in a relatively orderly way. if the numbers turn out to be wrong, and if the brexit process goes pop, then this rosier economic picture would look very different indeed. but philip hammond certainly seems to be in the mood
for spending rather than saving, but it isn't 1 for spending rather than saving, but it isn't1 million miles away from a splurge that will suddenly undo the last eight years. political editor laura kuenssberg in westminster, thank you. and just a reminder that you can find out more about the budget‘s details by visiting our website — bbc.co.uk/budget, as you can see there on the screen. our top story this evening. the chancellor offers a tax give away and says austerity is coming to an end. labour insists it's far from over. still to come. to get this first is just testament to my family. we hearfrom lewis hamilton after his record breaking fifth world championship win. coming up on sportsday on bbc news... fifth place for britain's men at the gymnastics world championships in doha — they now go for individual glory. there were emotional scene outside leicester city's stadium
today as the wife and family of the club's owner as well the leicester players all came to lay flowers in his memory. hundreds of floral tributes have been left at the ground — following the deaths of vichai srivaddhanaprabha and four others, in a helicopter crash on saturday. air accident investigators are examining data from the flight recorder. today prince william — who's president of the fa — praised the businessman for his contribution to the game. our sports editor dan roan reports. the people of leicester had paid their respects to the club's owner, today it was the turn of those closest to him. a poignant moment when vichai srivaddhanaprabha's wife and son walked among a sea of tributes to lay their own wreath. shortly afterwards and with the crowds growing came the players led by goalkeeper kasper schmeichel and followed by strikerjamie vardy. a very public display of reflection. this is the first time that leicester city players have been back here to the king power stadium since the tragic events of saturday
night. a squad and a city in shock. he was not your archetypal owner. this guy seemingly was someone who gave so much to the football club and also gave so much to the city. he invested huge amounts of money into hospitals, he treated fans like he cared. vichai srivaddhanaprabha's helicopter left the stadium an hour after the game against west ham. but seconds later crashed into a car park at the south of the ground bursting into flames. the air accident investigation branch has recovered the digital flight data recorder from the aircraft and said it would begin analysis immediately. the tragedy was witnessed by one of the club's former greats. all of a sudden it seemed to drop a little bit and then obviously crashed. and it all happened so quickly. then there was sparks coming out of the back and then some small flames. and larger flames and then itjust blew up. it isjust something
i think will live with us forever. it was one of the most horrendous things i think anyone could ever see. vichai srivaddhanaprabha was one of five people killed when the helicopter crashed. also on board, two staff members, nursara suknamai and kaveporn punpare. the pilot, eric swaffer, considered to be a veteran airmen and his partner, also seen here, izabela roza lechowicz. herself an experienced pilot. there's nobody i know better equipped at what he does and eric flew that helicopter like it was a limb. his knowledge was notjust for flying but it was technical as well. he technically knew the systems of all the aircraft he operated. couple of seasons ago this is stadium witnessed a fairy tale one leicester city won the premier league. this afternoon the current squad spent some time with the late
chairman's family, a club united in grief. seven men have been convicted of sexually exploiting vulnerable teenage girls in rotherham. sheffield crown court was told that five girls — targeted over a seven—year period — were subjected to "acts of a degrading and violent nature" after being given alcohol and drugs. six of the men — who are all of pakistani heritage — were found guilty of rape. they'll be sentenced next month. rescue teams in indonesia have begun recovering bodies from the crash site, where a new passenger plane plunged into the sea less than 15 minutes after take—off. 189 people were on board. the lion air boeing 737 was travelling from the capital jakarta to bangka island. the airline says the plane, which came into service in august, did have a technical problem on an earlier flight, but it had been cleared to fly again. rebecca henschke reports from jakarta. there were over 180 people on board when the plane crashed into the sea just 13 minutes after take—off. theirfamilies now
desperately waiting. are there any survivors, this woman asks. we can't tell you that, replies the airline official. out at sea a debris field marks the site of the crash. and along with the wreckage of the plane, search and rescue teams are recovering bodies. they are being taken to a police hospital. the families have been asked to try and identify them. the plane crashed in daylight and in good weather. real—time tracking showed that it was struggling to retain height. and that the crew had asked to return to the airport. the director of the budget airline admitting that there had been a problem on the previous flight. the airline, one of indonesia's
youngest and biggest, has a chequered safety record. a 10—year ban on its planes entering the european union due to safety concerns was only lifted in 2016. search and rescue teams say they will work through the night to recover the debris as well as search for survivors. but hopes of finding anyone still alive are fading. rebecca henschke, bbc news, jakarta. for the third time in two weeks, work has again been suspended at the uk's only active fracking site, because of a minor earth quake. the energy firm, cuadrilla, said the tremor — with a magnitude of 1.1 — was no cause for concern, but it had temporarily halted work in line with government regulations. he's being hailed as one of the greatest racing drivers of all time. britain's lewis hamilton won his fifth formula one world championship at the mexican grand prix.
the big question now: will he try to go for a record seven titles — something only michael schumacher has managed so far. andy swiss reports. he makes the remarkable seem almost routine. the five times champion of the world! but lewis hamilton's latest title was perhaps his most emotional. it lifted him closer to the all—time pinnacle of his sport, butjust days after the death of his grandfather, this was pride at its most poignant. to get this fifth i think is, yeah, just a testament just to my family. because they believed in me from day one. i will continue to drive with them at my core and hopefully today my grandad is looking down, proud of what we have achieved as a family. and five titles is some feat. it takes him level with the 19505 legend juan manuel fangio, only michael schumacher with seven titles has more. but for how much longer?
hamilton's journey, which began here at the kart track near his childhood home in stevenage, is still farfrom over. well, lewis hamilton was just eight years old when his dad first brought him here. but could the kid who whizzed round this very track now go on to become the most successful driver in formula 1 history? well, another of britain's most decorated drivers says seven is in hamilton's sights. i did not think i would see it in my lifetime but i think that lewis has an amazing opportunity. i believe lewis can go all the way and equal michael's record. no problem. and at 33, time is still on hamilton's side. he will hope this is just another milestone in his race for sporting history. andy swiss, bbc news. let's go back to our main story now and today's budget — the last before brexit — which has just been unveiled by the chancellor this afternoon. 0ur economics editor kamal ahmed is at the treasury for us now.
tax giveaways a year earlier and more cash being spent than expected, what is your assessment.” more cash being spent than expected, what is your assessment. i think anyone who thought this was going to bea anyone who thought this was going to be a quiet budget, a cautious budget was frankly wrong. the apartment today has tried to change the economic direction of government policy. to put it in context, in 2010 and austerities started, the government mapped out a five—year plan when they said that public spending would be cut by 3% per year. in 2015 another five—year plan, public spending cut again by 1.3%. now here is philip hammond today saying from 2020 public spending will rise by 1.2%. the 0ffice spending will rise by 1.2%. the office for budget responsibility, the official economic watchdog for
the official economic watchdog for the government, has said this is the biggest fiscal stimulus, tax and spending stimulus that it is seen for nearly a decade. what philip hammond is trying to do is to say that there has been a lot of hard work and about hard work is now starting to bear fruit. work and about hard work is now starting to bearfruit. there work and about hard work is now starting to bear fruit. there are significant risks and he's allowing borrowing frankly to stay higher than expected to pay for some of this tax and spending giveaway. i'd also he did not mention brexit risks, he did not really mention the risks, he did not really mention the risk of the economy turning sour and its idea of those things happen these assumptions that he laid out today for this big amount of public spending will look very heroic indeed. thank you. time for a look at the weather. here's darren bett. it is quite quiet here in the uk unlike other parts of europe. we have just been on the edge of the showers
today here in nottingham. this cloud looks threatening but we do not need to worry about that just yet. elsewhere in europe we had a lot of snow falling in the pyrenees and this deep and angry area of low pressure. as that pushes north some damaging winds potentially into scandinavia. we are just on the edge of all that extreme weather and here in the uk things could be a lot worse as we head overnight. instead we had a widespread frost last night, it is more limited to western parts of uk and that is because more clout is expected. the area of low pressure is responsible for the rain which isjust pressure is responsible for the rain which is just flirting with the south east of england and east anglia. it will be cloudy and windy here all day. i had that a fair bit of cloud around and some showers. some sunshine coming through but
cloud increasing across northern ireland. compared with today the temperature is much the same. as we head into wednesday we see the back of the brain but more wet weather coming into the western side of the case. eastern areas seeing the best of the sunshine. and with a south—westerly breeze not feeling quite as cold. it is likely to stay a bit milder as we head into thursday and friday. rain for eastern parts of england on thursday and then the wind starting to pick up and then the wind starting to pick up on friday and we see some wind and rain arriving from the north—west. that's all from the bbc news at six —— so it's goodbye from me —— and on bbc one we nowjoin the bbc‘s hello, this is bbc news. the headlines: the chancellor has unveiled his final budget before brexit next march — with a promise that the era of austerity is coming to an end. philip hammond said there would be a rise in tax—free personal allowances from next april
— and more money for defence, schools and the flagship welfare reform, universal credit. now we have reached a defining moment on this long, hard journey, opening a new chapter in our country's economic history where we can look confidently to the future. mr deputy speaker, the reality is that whatever the chancellor claims today, austerity is not over. in other news — the wife and son of leicester city's owner have laid a wreath at the club's stadium after he was killed alongside four others in a helicopter crash. the club's first team and youth squad have also been paying their respects at the king power stadium. rescue teams have been recovering bodies and wreckage off