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Chanceferor, thank you so much for joining us on Bloomberg TV. It's been two weeks since the UK election. You've certainly hit the ground running today. There was also talk about this fiscal lock in why do you feel they need.
To do that.
We've introduced to Parliament today the Budget Responsibility Bill that was first announced in the king Speech just yesterday, and the purpose of this bill is to provide the fiscal lock so that never again can a Prime Minister or a Chancellor do what Liz Trust and Quasi Quatting did with their disastrous mini budget just under two years ago.
So this will mean that the Office of Budget Responsibility, the Independent Office, can always provide a forecast when there are significant and permanent tax and spending changes, specifically worth more than one.
Percent of GDP.
That would have meant it would have triggered an OBR forecast back when Liz Trust and Cosey Quatin introduced that disastrous Many budget.
And so that I guess it is something that investors will you take solace to. You've announced a what the Premister has said that you will achieve that two point five percent target.
Are you confident that's achievable.
So the purpose of today really was to give businesses, give investors that confidence that Britain is a stable place to invest and do business.
I'm determined to do that.
We were elected two weeks ago on a mandate to grow our economy based on that stability that is so essential to underpin any economic decision making, and so that's why this bill is so important.
Now.
I'm under no illusions about the scale of the challenge that I face in this job. There are going to be difficult decisions ahead, but I was really clear during the election that everything that we put forward, whether that is on the NHS or on defense or on tax policy, will always be fully cost did and fully funded. That's very different so what we've had these last fourteen years with decisions with no regard to where the money's going to come from, and I'm going to be different and.
Chance I know a lot of course of what you're trying to put in place will depend on private capital coming into the UK. Have you had discussions with institutions, investors, even pension funds of their willingness to come to the UK.
You're absolutely right that our plans to grow the economy depend on businesses and investors choosing Britain as a place to invest. And I want investors to look at Britain and see a country that's got a stable government with a clear mandate to grow the economy and chooses Britain as a stable place to invest in an increasingly volatile and uncertain world. Which is why the fiscal lot today is so important, but also the other changes we've announced
in the last two weeks. We have announced more policies to grow the economy than the last government did in fourteen years. In the first seventy two hours in the job, I made more comprehensive changes to the UK planning system than the previous government did in more than a decade.
Because I know that we need to unlock.
That private investment that businesses tell me they are ready to invest if we get rid of some of those blockages, and the blockages in the planning system I think are
more significant than anything else. And so those changes to bring back mandatory housing targets for local authorities, ending the moratorium on shore wind calling in planning decisions on data centers and on housing really crucial, both to send a signal to business that Britain is a place to invest, but also to make sure that we can get on with things and get building in Britain again.
And are they listening?
Have you gotten cars from big investors saying yes, that's a plan that I wanted to see and I'm.
In absolutely so.
In my first speech at the Treasury a week and a half ago, we had businesses, we had investors in the audience met afterwards. The following day we announced the creation of a National Wealth Fund work led by Mark Carney. The task was led by Mark Carney for the Labor Party when we were in opposition, now reporting to a Labor government, and on that Wealth Fund task force we also had Amanda Blank from a Viva Vencat, from Berkley's,
Antonio from Energy and other big UK investors. And that is absolutely crucial because there's no plans that I can draw up in my new office in the Treasury that are going to work unless we have business buy in.
And I hope that businesses saw in Labour's manifesto and also in the plans that we've announced in government have the fingerprints of business all over them, because these plans have been co written with business, because they're all about unlocking private sector investment into our economy.
Chanser, are you considering tax breaks to either boost pension savings or make UK investments more attractive.
I'm not going to announce any tax breaks or tax changes without saying where the money is going to come from, and we will have a budget later this year. But I also just need to be really clear and honest about the scale of the challenge that we have inherited. With the public finances, We're going to have to make difficult decisions. We need to fix the foundations before we can start rebuilding things in Britain. But unlike the previous government, I am going to be honest about the scale of
the challenge. I'm going to level with people and together we're going to rebuild our country based on that private sector business investment to get our economy growing. Because I asked the Treasury officials to give me an assessment of how much stronger the UK economy would be today if we'd have grown at just the average rate of OECD economies these last fourteen years, and the answer is we'd be one hundred and forty billion pounds bigger today, worth
five thousand pounds for every family in Britain. We have got to grow our economy. It's the only way to improve living standards, keep taxes low and have the money that we need for our dilapidated public services.
Jender.
You're also promising to reset the relationship with European partners.
Are there any quick wins there to be had?
Well?
The Prime Minister is hosting European leaders at blenh And Palace in England today and that's really important as a chance to reset those relationships and foster a new era of trust between the UK and our nearest neighbors and trading partners in Europe.
And we're determined to do that.
It doesn't mean going back into the Single Market or Customs Union or bringing back free movement of labor, but it does mean having a closer trading relationship and also building a stronger strategic security alignment with our neighbors in Europe given the threats that we face as a continent, and so blenh And Palace just today is a chance for us to begin to reset those relationships and foster a stronger relationship between Britain and our neighbors and allies in Europe.
But are there any industries that you would see you again a win in terms of parallel kind of you know, some of the laws being together.
Well, there's a number of areas where we would like to make some changes to the deal that the previous government secured. We would like the mutual recognition of professional qualifications to help our services sector, reduce the bureaucracy for our cultural industries when touring around Europe. And a veterinary agreement to help our fantastic food and farming sector in Britain.
That will require negotiation and that will require give and take on both sides, but we want to boost our trade, make it easier for great British businesses big and small to sell goods and services right across Europe.
Given the challenges you were mentioning, when can we expect a budget from new September or October?
Well, I said in my first speech as Chancellor of the Exchequer last Monday that before the summer recess I would come to Parliament with an update on the fiscal position, the spending inheritance that this incoming labor government is now having to do with, and I will set out when we do that statement the date for the budget in the autumn.
But do you see that being a three to five year spending review or does it need to be shorter to make sure that the OBR then takes into the growth you're expecting.
Well, we will set out those the details and the dates when I come to the House of Commons in July. But you know, Francing that I want to bring back stability to the UK economy and that gives means giving certainty to businesses and families, the state of the public finances, what we're going to do to put them on a
firmer footing. But all that depends on bringing growth back to our economy so that we can repair our public services, repair our public finances and ensure that living standards increase, that working people are better off by bringing investment, bringing business back to Britain.
But chance for that growth target, is it two point five percent for next year or is that something that you'll you'll have to assess now.
Our ambition is to have the fastest growing economy in the G seven, with good job some productivity growth in all parts of the UK. And that's why all the announcements that I've made since becoming Chancellor, the Planning Reform, the creation of the National Wealth Fund. The fiscal lock that we've introduced to Parliament today all about bringing the stability, investment and reform to our economy so that we can grow our economy and be competitive in that global economy.
Again, so difficult to put a number on it.
I'm not going to.
Put a number on it, and it's the end up to the Office of Budget Responsibility to make those forecasts. But I'm doing everything within my power, working with my colleagues in the Cabinet, to ensure that we are pursuing a pro growth, a pro business agenda to bring investment back to Britain, because investment is the bedrock of a strong successful economy. We have the lowest share of investment
of neg seven economy. I want to turn that around so we can bring good jobs, bring prosperity back to the United Kingdom.
Transfer do you worry about wealthy tax payers moving to Europe?
What can you tell us about Nanda.
Well, we were really clear in our manifesto that if you make Britain you're home, you should pay your taxes here and that's what the outgoing Conservative government we're looking to do as well. But it is important that we bring in that tax revenue, and that if you live here, you should contribute to investment in our health service, in our defense, in our law and order, and that will happen under this labor government.
But we want Britain to be a really attractive.
Place for investors and businesses and successful wealth creators and entrepreneurs from around the world, and that's why we're determined to unlock our economy for private sector investment through the planning reforms, through the National Wealth Fund, and indeed through the other changes we're going to bring in, whether that's through the skills system or pensions reform.
None times would be very different to what the Conservatives announced. The plan that you're expecting for them, Well.
There's two differences between what the outgoing government was proposing and what we'll do. First of all, we will bring those changes forward by a year, and second we will make reforms, for example around inheritance tax.
But it is right that if you make.
Britain your home, you should pay your share of taxes here and an outdo data system based on where your father was born to determine how you're treated in the tax system. That's just not right, it's not fit for a modern economy. Now, of course we will have rules that if you come to Britain for a short period of time on common with work, for example, that we
will not be taxing your global income. But if you make Britain your home, if this is your permanent place of residents, then just like everybody else, you should pay your taxes. Here what a modern system fit for a modern economy. We don't have that today. Those are reforms we want to bring in Chanson.
When you look at Sheen, would you welcome an IPO in the UK and the City of London.
Well, I welcome the FCA changes just last week to really turbocharge listings in the UK, and I want a businusinesses to choose Britain as a place to list. For the last few years, we've seen story after story about companies delisting from the London Stock Exchange, listing in New York, listing in Europe.
I want to turn that around.
I want Britain to be the place of choice to make an IPO to grow your business.
That's why I welcome.
The reforms that the FCA put in place last week. It's also why I'm determined to change our pension system so we can unlock some of those assets under management to help start up and scale up businesses access the capital they need, so we can keep more businesses here in Britain.
Chance the US is.
Also really going quite hard on tariffs with China. We're going up to an election. The UK has not really squared with the EU on ev terrorifts, for example, or the US. How would you deal as a small open economy with China and Chinese tariffs.
Well, we are a small, open trading economy and we benefit from those trade links with countries around the world, both for exports and imports, but also for foreign director investment. And our view is that where possible we trade, we cooperate, and we challenge in areas where it's important to challenge, but we don't want to close the UK economy down to imports and exports. We benefit from those trade links around the world, including with China.
Chancellor, thank you so much for your time.
Thank you