1 00:00:02,200 --> 00:00:04,400 Love Island for geopolitics. 2 00:00:04,400 --> 00:00:06,880 The leaders of the world's richest nations have arrived 3 00:00:06,880 --> 00:00:09,880 for the first face-to-face summit since the pandemic began. 4 00:00:09,880 --> 00:00:13,040 QUEEN ELIZABETH II: 5 00:00:13,040 --> 00:00:14,760 BORIS JOHNSON: Yes. Definitely. 6 00:00:23,520 --> 00:00:28,800 It is vital that we don't repeat the mistake of the last great crisis, 7 00:00:28,800 --> 00:00:31,760 the last great economic recession in 2008. 8 00:00:31,760 --> 00:00:34,520 We don't repeat the mistake of 2008. 9 00:00:43,400 --> 00:00:46,440 REPORTER: The crowd are attacking a branch of the RBS bank. 10 00:00:48,520 --> 00:00:53,360 Our society still scarred by too much unfairness and inequality. 11 00:00:53,360 --> 00:00:57,440 The fat cats, they rob all money. 12 00:00:57,440 --> 00:00:59,640 What do we want? CROWD: Thieves out! 13 00:00:59,640 --> 00:01:01,280 When do we want it? CROWD: Now! 14 00:01:07,800 --> 00:01:10,520 I still ask myself, what else could have been done 15 00:01:10,520 --> 00:01:12,080 in those circumstances? 16 00:01:12,080 --> 00:01:15,320 The sense of anger and alienation that wasn't appearing 17 00:01:15,320 --> 00:01:18,560 in any of this consensus was there, on the streets. 18 00:01:18,560 --> 00:01:21,800 What I wanted to do was use the political honeymoon that you get 19 00:01:21,800 --> 00:01:24,240 after an election to do the hard stuff. 20 00:01:24,240 --> 00:01:27,280 George Osborne needs to stop drinking the Kool-Aid. 21 00:01:27,280 --> 00:01:28,480 He got it wrong. 22 00:01:31,760 --> 00:01:35,000 The government just poured enormous quantities of money into the system. 23 00:01:35,000 --> 00:01:37,960 Those of us in private equity got incredibly wealthy. 24 00:01:37,960 --> 00:01:40,280 In one day, basically, 25 00:01:40,280 --> 00:01:42,880 I've made as much money as my dad made in his whole career, 26 00:01:42,880 --> 00:01:44,760 and it just was, pff. 27 00:01:44,760 --> 00:01:47,360 Owners of assets have all made out like bandits. 28 00:01:54,520 --> 00:01:59,200 Every month! I scrape by to make a living every month! 29 00:01:59,200 --> 00:02:01,640 Those at the top have never done better, 30 00:02:01,640 --> 00:02:04,280 but average wages have barely budged. 31 00:02:04,280 --> 00:02:06,520 This was us saying, actually, you didn't look after us, 32 00:02:06,520 --> 00:02:09,560 you neglected us, you treated us badly and here we are. 33 00:02:09,560 --> 00:02:12,640 The big winners of the last ten-to-12 years 34 00:02:12,640 --> 00:02:15,480 have been those at the top. It's a very simple story. 35 00:02:15,480 --> 00:02:17,840 The fact that we've got nurses going to food banks... 36 00:02:17,840 --> 00:02:19,720 We have fought against the multinationals. 37 00:02:19,720 --> 00:02:21,640 We fought against big politics. 38 00:02:21,640 --> 00:02:22,840 CHEERING 39 00:02:22,840 --> 00:02:26,680 People felt we'd been told that we should accept the discipline 40 00:02:26,680 --> 00:02:30,680 of a market economy and it wasn't being applied to the elite. 41 00:02:30,680 --> 00:02:34,800 There's one rule for the rest of us, but a different rule for the elite. 42 00:02:51,400 --> 00:02:55,920 Well, it was a Tuesday morning, 7th of October. 43 00:02:55,920 --> 00:02:58,080 It was a pretty dramatic day. 44 00:02:58,080 --> 00:03:03,200 I was working at the US investment banking arm of RBS. 45 00:03:03,200 --> 00:03:08,520 What I saw from the inside was a prime example of a bank run amok. 46 00:03:08,520 --> 00:03:12,720 On the 7th of October 2008, management was missing. 47 00:03:12,720 --> 00:03:14,960 There was just nobody around and it was... Clearly, 48 00:03:14,960 --> 00:03:17,760 they were in meetings, trying to figure out what was happening. 49 00:03:17,760 --> 00:03:20,040 I took a call from Tom McKillop, 50 00:03:20,040 --> 00:03:22,680 who was then the chairman of RBS. 51 00:03:22,680 --> 00:03:25,120 And, you know, what he said shook me to the core. 52 00:03:25,120 --> 00:03:27,600 Probably the most scariest call I've ever taken. 53 00:03:27,600 --> 00:03:30,000 And he said, "Look, we're haemorrhaging money. 54 00:03:30,000 --> 00:03:32,200 "We're going to run out of money this afternoon, 55 00:03:32,200 --> 00:03:33,920 "in about three hours' time." 56 00:03:39,120 --> 00:03:43,360 I metaphorically signed a cheque for £36 billion, 57 00:03:43,360 --> 00:03:46,640 which we lent to the Royal Bank of Scotland. 58 00:03:46,640 --> 00:03:48,880 There was no argument about it. The game was up. 59 00:03:48,880 --> 00:03:51,520 You either did what was necessary and did it quickly 60 00:03:51,520 --> 00:03:53,920 and did it on a greater scale than anyone expected, 61 00:03:53,920 --> 00:03:55,520 or it would not work. 62 00:03:57,240 --> 00:03:58,920 We never thought this could happen. 63 00:03:58,920 --> 00:04:00,880 You know, we thought the banks were a safe bet. 64 00:04:00,880 --> 00:04:03,080 We never thought they could go under. And, by the way, 65 00:04:03,080 --> 00:04:05,680 when they go under, they take the rest of the economy with them 66 00:04:05,680 --> 00:04:07,000 unless you stop and intervene. 67 00:04:07,000 --> 00:04:10,480 We would have faced, in effect, financial Armageddon. 68 00:04:10,480 --> 00:04:13,240 That was not a difficult decision to make. 69 00:04:35,600 --> 00:04:38,840 Without that, the economy would have completely gone under. 70 00:04:38,840 --> 00:04:40,960 I think that was the right decision. 71 00:04:40,960 --> 00:04:44,360 However, as with most things, there are unintended consequences 72 00:04:44,360 --> 00:04:48,600 and the effects of recapitalising the economy to the extent they did 73 00:04:48,600 --> 00:04:54,040 was that the rich survived, and indeed got richer. 74 00:04:58,280 --> 00:05:02,200 Full disclosure - the hedge fund industry 75 00:05:02,200 --> 00:05:05,680 was a big beneficiary of the bailouts. 76 00:05:05,680 --> 00:05:09,160 All of the financial system benefited from the bailouts. 77 00:05:12,960 --> 00:05:15,400 In some ways, it's obvious that if you plonk 78 00:05:15,400 --> 00:05:17,240 a whole lot of money into the system, 79 00:05:17,240 --> 00:05:20,440 it's going to end up going to those who've got money. 80 00:05:21,920 --> 00:05:24,320 But in some ways, it's not. And the way it's not 81 00:05:24,320 --> 00:05:26,400 is that government assumes that money goes in 82 00:05:26,400 --> 00:05:28,200 and it gets spread equally. 83 00:05:28,200 --> 00:05:31,880 Rather than realising that money goes in and it gets attracted 84 00:05:31,880 --> 00:05:35,080 to money. If you've got money and more money appears, 85 00:05:35,080 --> 00:05:36,720 you will get it. 86 00:05:39,800 --> 00:05:42,800 The solution that Wall Street faction are pushing 87 00:05:42,800 --> 00:05:44,440 is to make sure assets increase, 88 00:05:44,440 --> 00:05:46,880 stocks for particularly real estate, hard assets, 89 00:05:46,880 --> 00:05:50,000 and do it with zero interest rates, with bailouts, etc, 90 00:05:50,000 --> 00:05:52,120 paid for by the working class. 91 00:05:52,120 --> 00:05:53,400 So I said, 92 00:05:53,400 --> 00:05:56,640 if history shows us anything on a financial collapse like this... 93 00:05:58,280 --> 00:06:01,800 ..populism... The answer will be populism. 94 00:06:01,800 --> 00:06:05,040 The massive amounts of money that were put into the banking system... 95 00:06:07,800 --> 00:06:10,440 ..none of this would ever have been done 96 00:06:10,440 --> 00:06:12,400 for other kinds of companies. 97 00:06:13,480 --> 00:06:15,720 This seemed deeply unfair. 98 00:06:15,720 --> 00:06:18,640 And it is deeply unfair, 99 00:06:18,640 --> 00:06:21,640 and it created that sense of anger which continued 100 00:06:21,640 --> 00:06:25,040 way beyond the immediate end of the financial crisis. 101 00:06:40,520 --> 00:06:42,080 It's official, then - 102 00:06:42,080 --> 00:06:45,080 the UK is in recession for the first time since 1991. 103 00:06:46,440 --> 00:06:48,560 Waving goodbye as the shutters come down 104 00:06:48,560 --> 00:06:50,720 on the final day of trading for Woolworths. 105 00:06:50,720 --> 00:06:54,120 Corus now joins an ever-growing list of major manufacturers 106 00:06:54,120 --> 00:06:57,840 in Britain, such as Honda, Waterford Wedgwood and JCB, 107 00:06:57,840 --> 00:06:59,800 which are buckling under the strain. 108 00:06:59,800 --> 00:07:04,080 850 agency workers have lost their jobs at the BMW car plant. 109 00:07:04,080 --> 00:07:07,920 The way that it's been done to you people is a disgrace. 110 00:07:07,920 --> 00:07:10,000 JEERS AND SHOUTING 111 00:07:20,960 --> 00:07:25,920 In early 2009, the banks, although they'd been recapitalised, 112 00:07:25,920 --> 00:07:29,440 didn't renew loans and didn't make new loans, 113 00:07:29,440 --> 00:07:31,880 so the money supply was contracting. 114 00:07:37,840 --> 00:07:41,400 Quantitative easing was a sort of strange term, 115 00:07:41,400 --> 00:07:43,520 and it was quite interesting - 116 00:07:43,520 --> 00:07:47,120 when it was first used in Parliament by Alistair Darling, 117 00:07:47,120 --> 00:07:49,800 a lot of MPs said, "What is it? 118 00:07:49,800 --> 00:07:52,160 "What's quantitative easing? Does anybody know?" 119 00:07:52,160 --> 00:07:53,640 And they all went around saying 120 00:07:53,640 --> 00:07:55,480 quantitative easing is a very good thing. 121 00:07:55,480 --> 00:07:57,480 Most of them hadn't got a clue what it was. 122 00:07:59,520 --> 00:08:03,880 At the time, quantitative easing was known as unconventional monetary 123 00:08:03,880 --> 00:08:06,840 policy because it was... It just wasn't used - unconventional. 124 00:08:06,840 --> 00:08:08,440 But we decided it would work. 125 00:08:08,440 --> 00:08:11,280 It was an entirely new experiment. 126 00:08:11,280 --> 00:08:14,720 The ideas for how to operate that originated with the central bank. 127 00:08:16,360 --> 00:08:17,920 INTERVIEWER: 128 00:08:17,920 --> 00:08:19,880 It was the Bank of England. 129 00:08:21,680 --> 00:08:24,600 Let's be clear about what quantitative easing is. 130 00:08:24,600 --> 00:08:27,440 It is basically about putting more money into the economy. 131 00:08:47,680 --> 00:08:51,120 Alistair Darling was upset that we didn't go on television 132 00:08:51,120 --> 00:08:56,560 immediately after 12 noon to explain QE when we started it. 133 00:08:56,560 --> 00:08:59,280 Frankly, most people didn't need to know about QE 134 00:08:59,280 --> 00:09:00,880 before six o'clock. 135 00:09:00,880 --> 00:09:04,080 The severity of Britain's recession has forced the Bank of England 136 00:09:04,080 --> 00:09:07,200 into taking unprecedented action. 137 00:09:07,200 --> 00:09:10,760 It's literally creating £75 billion in the next few months 138 00:09:10,760 --> 00:09:14,000 to get money moving around the economy again. 139 00:09:22,280 --> 00:09:24,600 March of 2009, I got a phone call. 140 00:09:24,600 --> 00:09:26,080 I was asked by the Fed 141 00:09:26,080 --> 00:09:30,320 whether I would manage the largest financial markets intervention 142 00:09:30,320 --> 00:09:34,360 by any government ever in world history - 143 00:09:34,360 --> 00:09:36,880 a $1.25 trillion programme. 144 00:09:38,040 --> 00:09:40,800 It felt as if any day we could actually break 145 00:09:40,800 --> 00:09:42,480 the financial markets. 146 00:09:42,480 --> 00:09:45,760 The level of cash, the level of money printing 147 00:09:45,760 --> 00:09:49,400 that the Fed was doing to try to deal with the crisis 148 00:09:49,400 --> 00:09:52,960 and to try to help was incredible. 149 00:09:52,960 --> 00:09:56,720 It was up to $8 billion to $10 billion a day of bond buys. 150 00:09:58,960 --> 00:10:01,640 And my job was to figure out how to actually spend that money. 151 00:10:03,200 --> 00:10:05,240 We kept the economy going. 152 00:10:05,240 --> 00:10:08,120 People who'd otherwise have lost their jobs didn't. 153 00:10:08,120 --> 00:10:10,200 In 2009, it certainly did work, 154 00:10:10,200 --> 00:10:13,360 because we prevented a repetition of the Great Depression. 155 00:10:35,560 --> 00:10:38,360 All this newly printed monies is being siphoned off 156 00:10:38,360 --> 00:10:39,800 into the purchasing of guilt. 157 00:10:39,800 --> 00:10:42,160 The quantitative easing measures are helping 158 00:10:42,160 --> 00:10:44,360 add to the process of recovery. 159 00:10:45,760 --> 00:10:49,120 The government just poured enormous quantities of money into the system. 160 00:10:49,120 --> 00:10:50,560 The money had to go somewhere, 161 00:10:50,560 --> 00:10:52,560 and it increased the value of assets. 162 00:10:54,440 --> 00:10:57,240 So all of a sudden, those of us in private equity 163 00:10:57,240 --> 00:10:59,680 got incredibly wealthy. 164 00:10:59,680 --> 00:11:04,280 The particular form of QE benefits above all banks, 165 00:11:04,280 --> 00:11:09,040 who have lots of assets, which are inflated by QE, 166 00:11:09,040 --> 00:11:12,040 and people with assets generally, 167 00:11:12,040 --> 00:11:15,960 which includes, you put it in the property market, 168 00:11:15,960 --> 00:11:18,200 people who own companies, 169 00:11:18,200 --> 00:11:20,640 people in investment management, like me. 170 00:11:20,640 --> 00:11:24,080 Owners of assets have all made out like bandits. 171 00:11:26,120 --> 00:11:29,840 2009, very quickly, I saw that the Fed's programme wasn't working 172 00:11:29,840 --> 00:11:32,360 entirely the way that it was planned. 173 00:11:34,800 --> 00:11:38,240 For the amount of money being spent, 174 00:11:38,240 --> 00:11:43,200 it was a very small percentage that was actually getting out 175 00:11:43,200 --> 00:11:46,840 and making a difference in the lives of everyday people. 176 00:11:49,680 --> 00:11:53,360 Huge amounts of the resources coming out the banking sector 177 00:11:53,360 --> 00:11:55,560 are going into other financial institutions, 178 00:11:55,560 --> 00:11:57,400 they're going into real estate, 179 00:11:57,400 --> 00:11:58,800 and it's not doing the job 180 00:11:58,800 --> 00:12:01,360 of funding the rest of the real economy. 181 00:12:01,360 --> 00:12:03,520 If you like, it was a shot of adrenaline. 182 00:12:03,520 --> 00:12:06,320 When we introduced it, I believed it would last for a couple of years 183 00:12:06,320 --> 00:12:08,800 and that's it. Because I remember saying to my officials, 184 00:12:08,800 --> 00:12:11,080 "What do we do in two or three years' time to unwind this?" 185 00:12:11,080 --> 00:12:14,160 And they said, "Well, it hasn't been done before. Let's see." 186 00:12:24,640 --> 00:12:26,440 APPLAUSE 187 00:12:26,440 --> 00:12:29,160 HOST: Good evening and welcome to the first election debate. 188 00:12:29,160 --> 00:12:33,520 If we do things differently, we can create the fair society, 189 00:12:33,520 --> 00:12:35,600 the fair country, we all want. 190 00:12:35,600 --> 00:12:38,960 An economy no longer held hostage by greedy bankers. 191 00:12:38,960 --> 00:12:42,480 We've just been going through the biggest global financial crisis 192 00:12:42,480 --> 00:12:45,280 in our lives, and I believe we're moving on a road 193 00:12:45,280 --> 00:12:47,160 to prosperity for all. 194 00:12:48,560 --> 00:12:50,360 We're all in this together. 195 00:12:57,880 --> 00:13:01,800 The 2010 election campaign was the most weird experience. 196 00:13:01,800 --> 00:13:07,960 I was knocking on doors in my constituency, as candidates do, 197 00:13:07,960 --> 00:13:11,000 and I've got to look them in the eye and say, "Well, you know, 198 00:13:11,000 --> 00:13:13,440 "we'll do our best," and things like that, 199 00:13:13,440 --> 00:13:15,560 knowing full well we were campaigning 200 00:13:15,560 --> 00:13:17,240 to cut public expenditure, 201 00:13:17,240 --> 00:13:19,040 and Alistair Darling said as much. 202 00:13:19,040 --> 00:13:22,600 He said we're going to make massive cuts in public expenditure. 203 00:13:22,600 --> 00:13:24,360 It was absolutely obvious in 2010 204 00:13:24,360 --> 00:13:26,360 that whoever was going to be the government 205 00:13:26,360 --> 00:13:28,480 was going to have to deal with the budget deficit. 206 00:13:30,440 --> 00:13:33,120 ARCHIVE: It's still unclear who is going to be leading the country, 207 00:13:33,120 --> 00:13:36,720 but I can tell you that we are going to be heading for a hung parliament. 208 00:13:36,720 --> 00:13:39,560 It may all hang on just a handful of seats. 209 00:13:41,440 --> 00:13:46,640 This is the first coalition government in Britain for 65 years. 210 00:13:46,640 --> 00:13:49,920 United behind three key principles - 211 00:13:49,920 --> 00:13:54,000 freedom, fairness and responsibility. 212 00:13:54,000 --> 00:13:56,400 The economy is still struggling to get to its feet. 213 00:13:56,400 --> 00:13:58,760 The public finance is in a mess. 214 00:13:58,760 --> 00:14:03,720 Our society still scarred by too much unfairness and inequality. 215 00:14:05,120 --> 00:14:08,200 I remember, shortly after entering into Whitehall, a sort of 216 00:14:08,200 --> 00:14:12,280 expressionless Treasury official saying to me, very calmly, 217 00:14:12,280 --> 00:14:15,520 "You do realise, Deputy Prime Minister, that the," you know, 218 00:14:15,520 --> 00:14:17,760 "the toxic debts of the British banking system 219 00:14:17,760 --> 00:14:21,000 "are five times the size of the whole British economy?" 220 00:14:21,000 --> 00:14:23,280 And, sort of, the blood drained from my face. 221 00:14:23,280 --> 00:14:27,720 I remember receiving from my private secretary a really significant paper 222 00:14:27,720 --> 00:14:30,000 on the first day I think I was in the Treasury. 223 00:14:30,000 --> 00:14:32,800 They were inviting us in a fairly clear direction, 224 00:14:32,800 --> 00:14:35,640 because there was sort of option A, B, C. 225 00:14:35,640 --> 00:14:37,960 The option A looked sort of so modest 226 00:14:37,960 --> 00:14:40,920 in terms of the amount of fiscal tightening 227 00:14:40,920 --> 00:14:43,800 that it would have almost no impact on restoring confidence, 228 00:14:43,800 --> 00:14:47,000 and it was described in those terms by the Treasury officials. 229 00:14:47,000 --> 00:14:49,440 It was clear they didn't want us to pick that option. 230 00:14:49,440 --> 00:14:52,440 Option C was so extreme in the opposite direction 231 00:14:52,440 --> 00:14:56,360 that I think any government trying to implement the degree of tax 232 00:14:56,360 --> 00:14:58,920 increases, spending cuts and fiscal consolidation 233 00:14:58,920 --> 00:15:01,640 would have been out of power within a couple of weeks. 234 00:15:01,640 --> 00:15:05,240 And it was clear, therefore, that we were being steered to Option B. 235 00:15:05,240 --> 00:15:08,080 One of the greatest myths - I would go further than that, 236 00:15:08,080 --> 00:15:11,800 falsehoods - in the way in which economic policy in this country 237 00:15:11,800 --> 00:15:14,520 has been conducted over the last decade or so, 238 00:15:14,520 --> 00:15:17,280 which has been... You know, history has been rewritten. 239 00:15:17,280 --> 00:15:21,160 There's an assertion that somehow there was a debate or a dispute 240 00:15:21,160 --> 00:15:24,840 about whether we needed to make significant fiscal savings. 241 00:15:24,840 --> 00:15:26,440 That's not...not the case. 242 00:15:37,760 --> 00:15:39,960 CHANTING 243 00:15:39,960 --> 00:15:42,840 Block the streets! Whose streets? Our streets! 244 00:15:44,800 --> 00:15:45,960 SCREAMS 245 00:15:49,560 --> 00:15:53,640 These people have stolen not millions, not billions, 246 00:15:53,640 --> 00:15:57,240 but trillions of dollars to bail out the banks, 247 00:15:57,240 --> 00:15:59,120 the bankers and their bonuses. 248 00:15:59,120 --> 00:16:02,840 Why can't you find a fraction of the money to bail out the workers? 249 00:16:04,360 --> 00:16:05,600 George Bush had been there - 250 00:16:05,600 --> 00:16:08,480 at the beginning of the crash, had been replaced by Barack Obama. 251 00:16:08,480 --> 00:16:10,720 Now you had the Conservative government in Britain. 252 00:16:10,720 --> 00:16:12,800 Everyone knew you had to deal with the budget deficit. 253 00:16:12,800 --> 00:16:14,240 The question was, how fast? 254 00:16:14,240 --> 00:16:15,920 My plan was to halve the deficit 255 00:16:15,920 --> 00:16:18,800 during the course of the following Parliament - to 2015. 256 00:16:18,800 --> 00:16:21,880 Because I thought that was at a rate that was acceptable, 257 00:16:21,880 --> 00:16:24,720 that it was doable and would not crash the economy. 258 00:16:24,720 --> 00:16:27,720 The Tories said, "No, we want to eliminate the deficit 259 00:16:27,720 --> 00:16:30,240 "in the course of five years." 260 00:16:30,240 --> 00:16:33,280 There were three options available to any government, 261 00:16:33,280 --> 00:16:36,720 and you could mix them to get to the right balance. 262 00:16:36,720 --> 00:16:39,960 One was you basically look to pump prime the economy. 263 00:16:39,960 --> 00:16:42,360 Because, if you could do that, you increase tax receipts 264 00:16:42,360 --> 00:16:44,800 and that allows you to bear down on the deficit. 265 00:16:44,800 --> 00:16:47,760 The other was to take cuts and to try and cut your way through this. 266 00:16:47,760 --> 00:16:50,320 And the third was to increase taxes. 267 00:16:50,320 --> 00:16:53,520 We chose to heavy... Go heavy on cuts. 268 00:17:00,120 --> 00:17:03,520 I thought that, in the state in which the UK was - 269 00:17:03,520 --> 00:17:07,960 very strong fiscal austerity and the numbers were very scary - 270 00:17:07,960 --> 00:17:10,280 was the wrong decision. 271 00:17:10,280 --> 00:17:16,720 And I communicated that felt opinion very strongly inside the Fund. 272 00:17:16,720 --> 00:17:23,040 And at the top, Christine Lagarde was a good friend of Osborne. 273 00:17:23,040 --> 00:17:29,160 And I think she didn't quite know which way to go and was reluctant 274 00:17:29,160 --> 00:17:33,560 to send a very negative message to Osborne at the time. 275 00:17:33,560 --> 00:17:36,400 Osborne was a good friend of the IMF. 276 00:17:36,400 --> 00:17:38,240 You're careful with your friends. 277 00:17:38,240 --> 00:17:41,080 To back down now and abandon our plans 278 00:17:41,080 --> 00:17:43,920 would be the road to economic ruin. 279 00:17:45,560 --> 00:17:47,360 And there was a political aspect - 280 00:17:47,360 --> 00:17:49,480 those were very courageous decisions. 281 00:17:49,480 --> 00:17:52,080 Courageous decisions can be stupid 282 00:17:52,080 --> 00:17:56,880 but are courageous, and people reward courage. 283 00:17:56,880 --> 00:18:00,000 He convinced markets that he was tough, 284 00:18:00,000 --> 00:18:02,400 that he was taking the right decisions. 285 00:18:02,400 --> 00:18:04,840 Markets...approved. 286 00:18:04,840 --> 00:18:09,040 It looked like a man who knew where he wanted to go, 287 00:18:09,040 --> 00:18:12,520 and maybe he thought this was the right thing to do. 288 00:18:20,520 --> 00:18:22,720 INTERVIEWER: That became the Coalition catchphrase. 289 00:18:22,720 --> 00:18:24,480 Who coined that? No, I think it was... 290 00:18:24,480 --> 00:18:27,200 I think it was a... I think it was an Osborne phrase. 291 00:18:27,200 --> 00:18:28,960 Um... Yeah, yeah. 292 00:18:30,000 --> 00:18:31,280 And, look, I mean... 293 00:18:32,480 --> 00:18:35,920 It's one, of course, I believe in, and I feel we acted on it 294 00:18:35,920 --> 00:18:39,000 much more than I think often is acknowledged. 295 00:18:39,000 --> 00:18:42,120 I thought it was very important that the better-off people 296 00:18:42,120 --> 00:18:45,480 in society bore the burden of the austerity. 297 00:18:45,480 --> 00:18:48,320 And that's why I had the phrase "we're all in this together". 298 00:18:48,320 --> 00:18:51,320 We all bought the Kool-Aid that we had to... 299 00:18:52,600 --> 00:18:56,440 We had to give some lip service to austerity. 300 00:18:56,440 --> 00:18:58,880 There was no questioning about whether austerity 301 00:18:58,880 --> 00:19:00,520 was the right thing. 302 00:19:00,520 --> 00:19:02,720 The question was, who bore the pain? 303 00:19:12,280 --> 00:19:14,120 ARCHIVE: They marched all afternoon. 304 00:19:14,120 --> 00:19:17,920 Those at the end arriving several hours after those at the front. 305 00:19:17,920 --> 00:19:20,560 Protesters poured into London in their thousands, 306 00:19:20,560 --> 00:19:22,160 standing up to the cuts. 307 00:19:22,160 --> 00:19:24,840 Cut the bankers, not public services! 308 00:19:26,520 --> 00:19:29,360 My brother, who has severe autism, got a letter 309 00:19:29,360 --> 00:19:32,240 saying that his benefits were being cut dramatically. 310 00:19:32,240 --> 00:19:34,320 And I just remember thinking, 311 00:19:34,320 --> 00:19:37,920 "Why is my brother essentially paying for this crisis 312 00:19:37,920 --> 00:19:39,880 "caused by a bunch of bankers?" 313 00:19:39,880 --> 00:19:42,360 Literally that week, I'd read that 314 00:19:42,360 --> 00:19:44,600 Vodafone had been let off a tax bill, 315 00:19:44,600 --> 00:19:47,640 and it just seemed completely bonkers to me that these huge 316 00:19:47,640 --> 00:19:50,240 corporations that could easily pay their fair share of tax 317 00:19:50,240 --> 00:19:52,920 weren't paying their tax. And then people like my brother 318 00:19:52,920 --> 00:19:55,480 were having to kind of foot the bill, essentially. 319 00:19:55,480 --> 00:19:58,880 When I first became the chair of the Public Accounts Committee 320 00:19:58,880 --> 00:20:02,640 in 2010, I actually thought it was going to be quite dull. 321 00:20:02,640 --> 00:20:06,320 One of the first people who came up to me was David Davis, 322 00:20:06,320 --> 00:20:09,160 who had been chair of the Public Accounts Committee before. 323 00:20:09,160 --> 00:20:11,560 And then he poked a finger at me and he said, 324 00:20:11,560 --> 00:20:15,200 "Vodafone. Look at Vodafone's tax affairs." 325 00:20:15,200 --> 00:20:18,400 I joined the legal department of HMRC. 326 00:20:18,400 --> 00:20:22,680 HMRC's work in collecting tax is called compliance. 327 00:20:22,680 --> 00:20:27,040 When it came to large companies, they call it cooperative compliance. 328 00:20:27,040 --> 00:20:32,160 Instead of taking tax disputes to courts for decisions, 329 00:20:32,160 --> 00:20:34,840 you settle it in secret deals. 330 00:20:34,840 --> 00:20:39,440 HMRC entered into a series of deals with large companies. 331 00:20:39,440 --> 00:20:42,840 The first one that was entered in the summer of 2010 332 00:20:42,840 --> 00:20:44,680 was with Vodafone. 333 00:20:56,920 --> 00:20:59,960 I just got really angry, and I was, you know, I kind of was talking 334 00:20:59,960 --> 00:21:02,600 to some friends about it and they'd mention UK Uncut 335 00:21:02,600 --> 00:21:04,880 and this kind of group of people that were coalescing 336 00:21:04,880 --> 00:21:08,280 around inequality and were upset about the cuts 337 00:21:08,280 --> 00:21:10,480 and upset about tax avoidance. 338 00:21:10,480 --> 00:21:12,320 And I said, "I'm in." 339 00:21:16,000 --> 00:21:18,440 The government is letting corporations like Vodafone 340 00:21:18,440 --> 00:21:21,000 get away with not paying taxes, and cutting our public services, 341 00:21:21,000 --> 00:21:23,080 so we're telling Vodafone what we think of it. 342 00:21:25,840 --> 00:21:27,600 The fat cats! 343 00:21:27,600 --> 00:21:29,200 They rob all money! 344 00:21:31,640 --> 00:21:36,080 Once again, the state steps in to protect our corporations. 345 00:21:36,080 --> 00:21:39,120 We all pay our taxes. I pay my tax, you know? 346 00:21:39,120 --> 00:21:41,960 One day, she'll pay her tax, and that's a good thing. 347 00:21:41,960 --> 00:21:45,040 We should pay taxes and we should give back to society. 348 00:21:45,040 --> 00:21:48,080 But why shouldn't Vodafone pay their taxes? 349 00:21:48,080 --> 00:21:50,120 What do you reckon to what's going on here today? 350 00:21:50,120 --> 00:21:53,400 No, this is...this is daylight robbery, to be quite honest. 351 00:21:53,400 --> 00:21:56,640 Because you find most people, you owe council tax, maybe £5, 352 00:21:56,640 --> 00:21:59,080 they take you to court and they want to charge you more. 353 00:21:59,080 --> 00:22:01,480 So why don't they charge Vodafone as well? 354 00:22:06,680 --> 00:22:11,200 Most taxpayers will have had experience of how HMRC 355 00:22:11,200 --> 00:22:13,080 deal with them, you know - 356 00:22:13,080 --> 00:22:16,720 very strict and demanding every penny involved. 357 00:22:16,720 --> 00:22:18,480 So to see large companies 358 00:22:18,480 --> 00:22:20,960 being given secret sweetheart deals, 359 00:22:20,960 --> 00:22:23,240 they probably didn't like that. 360 00:22:25,280 --> 00:22:28,520 One day, we got a tip-off that Dave Hartnett, the HMRC boss, 361 00:22:28,520 --> 00:22:33,200 was going to be at this posh kind of gala dinner in Oxford College, 362 00:22:33,200 --> 00:22:37,040 celebrating his work on his tax achievements. 363 00:22:37,040 --> 00:22:39,480 So we thought, well, we obviously have to gate-crash that. 364 00:22:39,480 --> 00:22:41,000 Just last-minute checks. 365 00:22:41,000 --> 00:22:42,720 Everyone's looking smart. 366 00:22:42,720 --> 00:22:44,960 And let's go and see Mr Hartnett. 367 00:22:44,960 --> 00:22:47,400 So we kind of got on tuxes and posh dresses 368 00:22:47,400 --> 00:22:50,360 and we pretended to be Vodafone executives. 369 00:22:50,360 --> 00:22:54,640 We had kind of Vodafone badges on us and stuff, and we snuck in. 370 00:22:55,920 --> 00:22:59,200 I'm sorry to interrupt, but if I can take a few moments of your time... 371 00:22:59,200 --> 00:23:02,640 And we presented Dave Hartnett, much to his embarrassment, 372 00:23:02,640 --> 00:23:06,840 with a kind of golden handshake award for his lifetime achievement 373 00:23:06,840 --> 00:23:09,360 and his services to corporate tax avoidance. 374 00:23:09,360 --> 00:23:10,960 Thank you. APPLAUSE 375 00:23:12,480 --> 00:23:14,600 These people are trespassers... 376 00:23:14,600 --> 00:23:17,640 # For he's a jolly good fellow 377 00:23:17,640 --> 00:23:19,920 # And so save all the tax. # 378 00:23:19,920 --> 00:23:22,480 Go. You're trespassing. So sorry... 379 00:23:22,480 --> 00:23:24,120 You are trespassing scum. Go. 380 00:23:24,120 --> 00:23:25,800 No, Robert! Cool it. 381 00:23:40,000 --> 00:23:44,080 We did get some changes in how, if there were deals struck 382 00:23:44,080 --> 00:23:48,760 between a particular taxpayer and the tax authorities, 383 00:23:48,760 --> 00:23:51,520 the person who struck the deal couldn't then sign it off. 384 00:23:58,480 --> 00:24:01,200 CHANTING: Pay your tax! Pay your tax! 385 00:24:02,440 --> 00:24:05,640 Because if big corporations don't pay a fair amount of tax, 386 00:24:05,640 --> 00:24:09,000 there is less money around, or other people have to be taxed more, 387 00:24:09,000 --> 00:24:11,520 to keep public spending going. 388 00:24:11,520 --> 00:24:14,640 NEWS REPORT: Despite making hundreds of millions of pounds each year, 389 00:24:14,640 --> 00:24:17,440 the companies pay relatively small amounts to the government. 390 00:24:36,880 --> 00:24:40,960 UK-based companies should be telling us exactly where they undertake 391 00:24:40,960 --> 00:24:43,640 their activity and where they make their profits. 392 00:24:43,640 --> 00:24:46,800 So there was noise in the system and there was the beginnings 393 00:24:46,800 --> 00:24:49,440 of exposure of big corporations 394 00:24:49,440 --> 00:24:52,120 paying derisory sums of money in tax. 395 00:25:00,840 --> 00:25:03,080 CHANTING: All week, Occupy Wall Street! 396 00:25:32,120 --> 00:25:35,200 I was watching Occupy Wall Street unfold on the television, 397 00:25:35,200 --> 00:25:38,840 and it was really motivating and moving to see that people, 398 00:25:38,840 --> 00:25:41,800 rather than sitting and being frustrated and angry and screaming 399 00:25:41,800 --> 00:25:44,400 at the television like I was frequently doing, 400 00:25:44,400 --> 00:25:46,360 they actually got up and did something. 401 00:25:46,360 --> 00:25:50,640 And so I said to my sister, "I think we should go and get involved." 402 00:25:50,640 --> 00:25:54,400 We weren't there to bring a solution, 403 00:25:54,400 --> 00:25:57,000 we were there to announce that the problem had grown too big 404 00:25:57,000 --> 00:25:58,920 to ignore any further. 405 00:25:58,920 --> 00:26:00,640 This is the beginning! 406 00:26:00,640 --> 00:26:02,960 I mean, when you think about - we bailed out the banks. 407 00:26:02,960 --> 00:26:05,680 At what point did we bail out the planet, bail out the people, 408 00:26:05,680 --> 00:26:07,960 bail out education, bail out health care? 409 00:26:07,960 --> 00:26:12,360 But no, no, we'll bail out the banks and hope for a trickle down. 410 00:26:14,200 --> 00:26:16,720 I thought the Occupy movement and the anger 411 00:26:16,720 --> 00:26:19,440 against the financial system was fully justified. 412 00:26:21,280 --> 00:26:23,920 That financial crisis demonstrated 413 00:26:23,920 --> 00:26:26,680 banks know that they're too big to fail. 414 00:26:27,800 --> 00:26:30,760 If everything goes wrong, they will be bailed out. 415 00:26:36,520 --> 00:26:39,280 It just seemed obvious to me then, as it does now, 416 00:26:39,280 --> 00:26:41,640 that just sometimes, for the country's sake, 417 00:26:41,640 --> 00:26:43,880 you've just got to take pretty difficult decisions, 418 00:26:43,880 --> 00:26:45,720 take them as fairly and reasonably 419 00:26:45,720 --> 00:26:47,080 as you possibly can, 420 00:26:47,080 --> 00:26:48,600 but you've got to crunch through. 421 00:26:48,600 --> 00:26:51,200 And, of course, that means that people will shout and scream. 422 00:26:54,000 --> 00:26:57,360 There's a real sense of unfairness that you have a banking crisis 423 00:26:57,360 --> 00:27:01,000 caused by the bankers and the whole country is suffering. 424 00:27:01,000 --> 00:27:03,520 But the truth is, you're telling people a lie 425 00:27:03,520 --> 00:27:07,560 if you say 99% of people can be better off if we punish the 1%. 426 00:27:07,560 --> 00:27:10,240 You know, the maths doesn't work. 427 00:27:10,240 --> 00:27:12,040 We were evicted, I think, in the February. 428 00:27:12,040 --> 00:27:13,320 Did we achieve anything? 429 00:27:13,320 --> 00:27:15,760 Oh, so much. So much. 430 00:27:15,760 --> 00:27:18,480 To us, I suppose, and certainly to me, 431 00:27:18,480 --> 00:27:20,840 I felt - we are the 99% - 432 00:27:20,840 --> 00:27:25,800 felt like there was maybe 1% with power, control and authority 433 00:27:25,800 --> 00:27:29,040 who were pulling the strings of the rest of us. 434 00:27:29,040 --> 00:27:32,040 And Occupy pulled the conversation back a bit. 435 00:27:32,040 --> 00:27:34,280 It pulled it back to real humans. 436 00:27:36,920 --> 00:27:39,320 This was us saying, actually, you didn't look after us, 437 00:27:39,320 --> 00:27:42,360 you neglected us, you treated us badly and here we are. 438 00:27:46,840 --> 00:27:50,480 It wasn't quite as simple as the Occupy movement had suggested, 439 00:27:50,480 --> 00:27:55,160 but I think it certainly resonated with the deeper 440 00:27:55,160 --> 00:27:57,240 and more justified concerns. 441 00:27:59,200 --> 00:28:02,520 The banks were seen as the elite. I mean, they WERE the elite. 442 00:28:05,280 --> 00:28:09,200 The people who ran the banks, the big banks in the UK, 443 00:28:09,200 --> 00:28:12,560 were very powerful politically as well. 444 00:28:12,560 --> 00:28:15,200 And all of this merged with the picture 445 00:28:15,200 --> 00:28:17,480 that the very powerful people 446 00:28:17,480 --> 00:28:19,720 were the ones who were being bailed out 447 00:28:19,720 --> 00:28:23,120 but the people who weren't powerful were not bailed out. 448 00:28:41,880 --> 00:28:43,880 We had what is called the Traders Offsite, 449 00:28:43,880 --> 00:28:46,120 which is where all the traders in the world get together, 450 00:28:46,120 --> 00:28:47,680 have a bit of a jolly up 451 00:28:47,680 --> 00:28:49,880 and talk about what we're going to do that year. 452 00:28:49,880 --> 00:28:53,680 And that year, early 2011, it was held in a country manor 453 00:28:53,680 --> 00:28:55,680 in, I think, Hertfordshire. 454 00:28:55,680 --> 00:28:58,120 When we went in, I couldn't believe what they... 455 00:28:58,120 --> 00:28:59,720 They gave us, um... 456 00:28:59,720 --> 00:29:02,600 They gave us these hats - these hats here - 457 00:29:02,600 --> 00:29:05,280 saying on the front, "Go big or go home." 458 00:29:06,280 --> 00:29:09,080 And the idea behind this is, 459 00:29:09,080 --> 00:29:12,320 if you're willing to take a bet in $1 million, 460 00:29:12,320 --> 00:29:13,960 take it in $10 million. 461 00:29:13,960 --> 00:29:16,520 If you back yourself for $1 million, do it in 10. 462 00:29:16,520 --> 00:29:19,000 Telling us all, like, take way more risk. 463 00:29:19,000 --> 00:29:21,680 And I couldn't believe it, right, that they gave... 464 00:29:21,680 --> 00:29:25,360 Because it's only two years after we - the bank, basically - 465 00:29:25,360 --> 00:29:29,200 brought the world economy to its knees by taking too much risk. 466 00:29:29,200 --> 00:29:32,240 The main way that people discussed the financial crisis 467 00:29:32,240 --> 00:29:34,120 on the trading floor 468 00:29:34,120 --> 00:29:37,560 was not really as though they were active participants in it. 469 00:29:37,560 --> 00:29:39,960 It was more that they were trying 470 00:29:39,960 --> 00:29:42,000 to, you know, come up with trade ideas 471 00:29:42,000 --> 00:29:45,040 that they could sell to hedge funds and pension funds 472 00:29:45,040 --> 00:29:49,000 that were kind of like positions that these firms could take 473 00:29:49,000 --> 00:29:51,480 that would help hedge them against the risk. 474 00:29:51,480 --> 00:29:54,280 But there really was just, sort of, no remorse there. 475 00:29:54,280 --> 00:29:58,000 It was just... Just another... Just another trade idea. 476 00:29:58,000 --> 00:30:00,080 They're incentivised to just take a load of risk. 477 00:30:00,080 --> 00:30:02,920 And they know, if it doesn't work out, they're already millionaires, 478 00:30:02,920 --> 00:30:05,720 they're not going to lose out. They might get a bailout anyway, 479 00:30:05,720 --> 00:30:08,000 so they just want us all to take a ton of risk. 480 00:30:08,000 --> 00:30:10,080 Oh, yeah, I've never claimed to be, 481 00:30:10,080 --> 00:30:13,080 like, a great sort of moral philosopher, but this is... 482 00:30:13,080 --> 00:30:16,120 It's taking the piss, to be honest, isn't it? Really. 483 00:30:16,120 --> 00:30:18,360 It became, you have to comply with this regulation now. 484 00:30:18,360 --> 00:30:20,120 You have to be squeaky clean. 485 00:30:20,120 --> 00:30:23,840 There's nothing... There's nothing that they should be able to get 486 00:30:23,840 --> 00:30:27,720 on you to make it look like you don't take it seriously. 487 00:30:27,720 --> 00:30:30,560 That was how you had to performatively behave. 488 00:30:30,560 --> 00:30:33,480 But the idea that everyone at banks thought that all the rules 489 00:30:33,480 --> 00:30:36,520 were sensible and put in place in a sensible way 490 00:30:36,520 --> 00:30:38,240 is just not how it was. 491 00:30:38,240 --> 00:30:41,680 I mean, I took massive amounts of risk as a very young trader, 492 00:30:41,680 --> 00:30:45,400 and because I was making money nobody really questioned it. 493 00:30:45,400 --> 00:30:48,400 Risk management got a little bit tighter as I got... 494 00:30:48,400 --> 00:30:50,040 ..as I got a bit older. 495 00:30:50,040 --> 00:30:52,320 So the incentivisation on traders is not to, 496 00:30:52,320 --> 00:30:54,320 like, take massive bets and win. 497 00:30:54,320 --> 00:30:57,320 Traders now have massive salaries and not big bonuses. 498 00:31:07,520 --> 00:31:11,960 I think what was really the most nail-biting moment of the Coalition 499 00:31:11,960 --> 00:31:14,200 was that the plan just wasn't working 500 00:31:14,200 --> 00:31:17,080 for the first couple of years. It just wasn't working. 501 00:31:17,080 --> 00:31:19,600 ARCHIVE: ..seems to be the growth of the working poor, 502 00:31:19,600 --> 00:31:22,400 and these are people who have had their hours cut 503 00:31:22,400 --> 00:31:25,160 or who have very recently lost their jobs 504 00:31:25,160 --> 00:31:27,560 as a result of the hard economic times. 505 00:31:27,560 --> 00:31:29,840 The new and alarming phenomenon - 506 00:31:29,840 --> 00:31:33,120 thousands of people going to US-style food banks 507 00:31:33,120 --> 00:31:36,240 because they can't afford to feed themselves. 508 00:31:36,240 --> 00:31:41,480 As the parliament went on, as 2010 turned into 2011 and 2012, 509 00:31:41,480 --> 00:31:44,680 the issue that really did concern us about the economy 510 00:31:44,680 --> 00:31:48,280 wasn't so much about whether we were doing deficit reduction fairly, 511 00:31:48,280 --> 00:31:51,360 because we felt that we were doing it as fairly as possible. 512 00:31:51,360 --> 00:31:55,240 It was the difficulties we faced because of the disappointing 513 00:31:55,240 --> 00:31:58,560 economic growth figures in 2011 and 2012, 514 00:31:58,560 --> 00:32:02,080 and that is where most of the economic worries 515 00:32:02,080 --> 00:32:05,240 of the Coalition parties focused. 516 00:32:05,240 --> 00:32:08,080 The Bank of England has decided to intervene again. 517 00:32:08,080 --> 00:32:10,880 In its latest round of quantitative easing, 518 00:32:10,880 --> 00:32:14,920 it will inject another £50 billion of cash into the financial system. 519 00:32:30,400 --> 00:32:33,520 When one looks at quantitative easing and the effect it's had, 520 00:32:33,520 --> 00:32:37,040 those with assets have obviously become wealthier. 521 00:32:37,040 --> 00:32:39,520 This is very, very basic economics. 522 00:32:39,520 --> 00:32:42,920 It's, you know, frankly, it's A-level economics at most. 523 00:32:42,920 --> 00:32:45,840 Well, QE is really difficult, this printing money, 524 00:32:45,840 --> 00:32:49,360 because its purpose is that people who already have something - 525 00:32:49,360 --> 00:32:51,720 like a house or a pension or some shares - 526 00:32:51,720 --> 00:32:54,080 will see the value of those things go up. 527 00:32:54,080 --> 00:32:56,600 That's what the policy is designed to do. 528 00:32:56,600 --> 00:33:00,120 And it feels unfair because the people who don't have those things 529 00:33:00,120 --> 00:33:02,480 aren't getting the benefits of the policy. 530 00:33:02,480 --> 00:33:04,920 But, ultimately, I came to the conclusion 531 00:33:04,920 --> 00:33:07,640 it's better to try and keep the economy floating 532 00:33:07,640 --> 00:33:10,400 rather than let everything crash. 533 00:33:10,400 --> 00:33:14,520 I think an active decision was effectively made to support... 534 00:33:16,080 --> 00:33:17,280 ..those with assets. 535 00:33:17,280 --> 00:33:20,720 INTERVIEWER: What did you think QE was supposed to do, 536 00:33:20,720 --> 00:33:23,200 and did you feel that it achieved that? 537 00:33:23,200 --> 00:33:26,480 I was in favour at the time, strongly. 538 00:33:26,480 --> 00:33:29,920 We all hoped that, because of the sheer scale 539 00:33:29,920 --> 00:33:33,160 at which this was operating - I mean, the scale of it was just huge, 540 00:33:33,160 --> 00:33:36,800 far greater than anything we could do in terms of tax and spend. 541 00:33:38,120 --> 00:33:42,400 I think it's obvious now that consequences have not been 542 00:33:42,400 --> 00:33:45,560 as-as-as positive as I would have liked. 543 00:33:45,560 --> 00:33:49,400 I... I still ask myself, what else, you know, could have been done 544 00:33:49,400 --> 00:33:51,040 in those circumstances? 545 00:34:03,400 --> 00:34:07,320 I wanted to understand why this recovery wasn't happening. 546 00:34:07,320 --> 00:34:09,920 And I started to think, well, 547 00:34:09,920 --> 00:34:12,120 these rich people are not going to boost the economy, 548 00:34:12,120 --> 00:34:13,760 cos they get the money. 549 00:34:13,760 --> 00:34:16,360 All they're doing is buying houses, buying stocks and shares. 550 00:34:16,360 --> 00:34:19,160 So what's probably going to happen is, house prices are going to go up, 551 00:34:19,160 --> 00:34:20,480 stock prices are going to go up, 552 00:34:20,480 --> 00:34:22,040 the economy is not going to recover. 553 00:34:22,040 --> 00:34:23,560 And I started to bet very heavily 554 00:34:23,560 --> 00:34:25,440 that, actually, there'll never be a recovery. 555 00:34:25,440 --> 00:34:28,400 On the back of this bet that there will never be an economic recovery, 556 00:34:28,400 --> 00:34:30,920 I became Citibank's globally most-profitable trader 557 00:34:30,920 --> 00:34:33,480 in foreign exchange and short-term interest rates. 558 00:34:41,960 --> 00:34:44,840 Early 2013, there was a huge amount of pressure on us. 559 00:34:44,840 --> 00:34:47,360 It felt like the economy wasn't moving forward. 560 00:34:47,360 --> 00:34:49,920 We kind of thought, take these difficult decisions, 561 00:34:49,920 --> 00:34:52,120 set them out, let the monetary authorities 562 00:34:52,120 --> 00:34:54,200 significantly reduce interest rates, 563 00:34:54,200 --> 00:34:56,840 pour money into the economy and things will come good. 564 00:34:56,840 --> 00:34:59,040 It didn't work. It wasn't working. 565 00:35:03,120 --> 00:35:06,200 Lending money was not happening, and that included lending money 566 00:35:06,200 --> 00:35:08,440 to people who wanted to buy their first home. 567 00:35:08,440 --> 00:35:13,320 So this Budget makes a new offer to our aspiration nation, 568 00:35:13,320 --> 00:35:18,760 and what symbolises that more than the desire to own your own home? 569 00:35:18,760 --> 00:35:21,400 Today, I can announce Help To Buy. 570 00:35:23,960 --> 00:35:26,680 Help To Buy was introduced to help first-time buyers 571 00:35:26,680 --> 00:35:28,760 get on that housing ladder. 572 00:35:28,760 --> 00:35:32,800 George asked me to put together some thoughts on the nature of mortgage 573 00:35:32,800 --> 00:35:36,840 lending and its fundamental role within the economy. 574 00:35:36,840 --> 00:35:39,040 And the thing which I set out there is that - 575 00:35:39,040 --> 00:35:42,160 and it's quite a paradox to understand - 576 00:35:42,160 --> 00:35:48,440 that more easy mortgage lending is good up to a certain point. 577 00:35:48,440 --> 00:35:51,280 And then beyond that point, it's bad. 578 00:35:51,280 --> 00:35:53,640 All of us at the Bank of England 579 00:35:53,640 --> 00:35:56,440 felt that the problem with Help To Buy 580 00:35:56,440 --> 00:36:00,400 is that it doesn't in itself increase the supply of houses. 581 00:36:00,400 --> 00:36:03,240 And it may well push up the price of houses 582 00:36:03,240 --> 00:36:06,320 because people have got more money to spend on houses. 583 00:36:06,320 --> 00:36:08,760 It makes other future first-time buyers 584 00:36:08,760 --> 00:36:11,240 even further priced out of the market. 585 00:36:11,240 --> 00:36:13,720 And it's politically very sensitive, because people like - 586 00:36:13,720 --> 00:36:15,080 of course, who doesn't? - 587 00:36:15,080 --> 00:36:17,760 living in a home, thinking, "Oh, look, it's gone up in value again." 588 00:36:17,760 --> 00:36:21,720 House prices have risen by an average of 8.4% over 2013. 589 00:36:32,720 --> 00:36:35,840 So if you had a house, you suddenly became... 590 00:36:35,840 --> 00:36:39,800 Well, we created more millionaires through house price inflation 591 00:36:39,800 --> 00:36:41,840 than anything else. 592 00:36:41,840 --> 00:36:43,720 And for people under 40, 593 00:36:43,720 --> 00:36:47,120 the number who could afford to buy their own house halved. 594 00:36:47,120 --> 00:36:50,400 The rich are obviously winning. Poor people are obviously losing. 595 00:36:50,400 --> 00:36:53,080 But there's this real problem, I think, where people in the middle 596 00:36:53,080 --> 00:36:55,080 are seeing their house prices going up. 597 00:36:55,080 --> 00:36:58,120 They think they're winning, but it's going to cause their kids 598 00:36:58,120 --> 00:37:01,120 and their grandkids to not have homes to live in. 599 00:37:02,600 --> 00:37:06,080 The scheme, that had its critics at the time, has been incredibly 600 00:37:06,080 --> 00:37:10,080 successful since at getting loads of families onto that housing ladder 601 00:37:10,080 --> 00:37:13,160 who otherwise just simply couldn't afford the large deposits 602 00:37:13,160 --> 00:37:15,400 that the mortgage companies were asking for. 603 00:37:15,400 --> 00:37:20,480 Reliance on galloping property price increases is neither fair 604 00:37:20,480 --> 00:37:23,720 nor economically sensible, and it's something that I certainly 605 00:37:23,720 --> 00:37:26,520 don't think the Coalition got this one right. 606 00:37:26,520 --> 00:37:28,880 But I think it's... Actually, I don't think it's one 607 00:37:28,880 --> 00:37:31,080 that any government so far has got right. 608 00:37:41,000 --> 00:37:44,040 My job was to look at the economy and take the temperature. 609 00:37:44,040 --> 00:37:46,520 Is it good? Is it bad? You know, I come from a poor background. 610 00:37:46,520 --> 00:37:48,280 My friends come from poor backgrounds, 611 00:37:48,280 --> 00:37:49,920 my family comes from a poor background. 612 00:37:49,920 --> 00:37:52,160 I can see how ordinary people are being affected. 613 00:38:11,240 --> 00:38:13,480 But now I'm a millionaire, right, and I'm sitting down 614 00:38:13,480 --> 00:38:15,480 and I'm looking at the economy and I'm saying, 615 00:38:15,480 --> 00:38:17,320 "Well, what do I think's going to happen? 616 00:38:17,320 --> 00:38:18,960 "I think it's going to be a disaster. 617 00:38:18,960 --> 00:38:21,320 "I think it's going to be rubbish for years, for decades." 618 00:38:21,320 --> 00:38:22,880 And I could bet on that again, 619 00:38:22,880 --> 00:38:25,240 and I can make another million quid, again. 620 00:38:25,240 --> 00:38:27,040 But then, after the money hit the bank, 621 00:38:27,040 --> 00:38:29,120 it just didn't feel right, basically, any more. 622 00:38:30,360 --> 00:38:33,920 I know it has been hard for families since the crash. 623 00:38:33,920 --> 00:38:37,440 It's not a case of not understanding these difficulties. 624 00:38:37,440 --> 00:38:40,240 It's a case of being honest about why things are difficult. 625 00:38:40,240 --> 00:38:42,480 So here's another hard truth - 626 00:38:42,480 --> 00:38:46,360 welfare cannot be protected from further substantial cuts. 627 00:38:46,360 --> 00:38:48,960 There were lots of people across the country 628 00:38:48,960 --> 00:38:51,440 who were feeling the pain of this. 629 00:38:51,440 --> 00:38:53,200 And it wasn't just austerity, 630 00:38:53,200 --> 00:38:55,320 it was the fact that austerity came 631 00:38:55,320 --> 00:38:58,360 at the very time that wages were stagnant. 632 00:38:58,360 --> 00:39:01,160 The Conservatives realised that they were, you know, 633 00:39:01,160 --> 00:39:03,040 not unsurprisingly, you know, 634 00:39:03,040 --> 00:39:06,920 reacquainting themselves with the sort of nasty party reputation. 635 00:39:06,920 --> 00:39:09,320 So the Conservatives started talking about inequality 636 00:39:09,320 --> 00:39:12,000 because they realised it was politically convenient to do so. 637 00:39:12,000 --> 00:39:14,000 I'd been doing so incessantly since the first day. 638 00:39:14,000 --> 00:39:15,800 Under this government, 639 00:39:15,800 --> 00:39:20,480 income inequality is at its lowest level for 28 years. 640 00:39:20,480 --> 00:39:23,960 Under Labour, inequality widened. With us, it's narrowed. 641 00:39:23,960 --> 00:39:26,800 The real party of compassion and social justice today 642 00:39:26,800 --> 00:39:28,200 is not the Labour Party, 643 00:39:28,200 --> 00:39:31,560 it's the party here in this hall - we Conservatives. 644 00:39:31,560 --> 00:39:35,120 Thinking about what we could do on the minimum wage, 645 00:39:35,120 --> 00:39:37,560 I actually went to the Low Pay Commission and said, 646 00:39:37,560 --> 00:39:39,560 "What about a big increase in minimum wage?" 647 00:39:39,560 --> 00:39:41,200 It was pretty striking 648 00:39:41,200 --> 00:39:44,680 that the Living Wage was actually introduced 649 00:39:44,680 --> 00:39:49,560 under a sort of Osborne-Iain Duncan Smith-Cameron-type administration. 650 00:39:49,560 --> 00:39:52,960 And that reflects, I think, a greater recognition 651 00:39:52,960 --> 00:39:56,240 that wealth and income growth is not always shared 652 00:39:56,240 --> 00:39:58,080 as it should be across society. 653 00:39:58,080 --> 00:40:00,240 Everyone was willing to suck up a bit of inequality 654 00:40:00,240 --> 00:40:01,920 as long we were all being lifted up. 655 00:40:01,920 --> 00:40:03,160 As long as that stopped, 656 00:40:03,160 --> 00:40:05,560 the very logic of that model, I think, broke down. 657 00:40:10,080 --> 00:40:12,480 BOTTLES SMASH 658 00:40:17,000 --> 00:40:20,800 Inequality is increasingly on the global community radar screen. 659 00:40:22,240 --> 00:40:24,880 Those at the top, they have never done better, 660 00:40:24,880 --> 00:40:27,520 but average wages have barely budged. 661 00:40:27,520 --> 00:40:29,360 Inequality has deepened. 662 00:40:30,560 --> 00:40:33,840 ARCHIVE: This was the scene in Athens ahead of a crucial vote. 663 00:40:33,840 --> 00:40:36,640 Clashes erupted during an anti-austerity protest 664 00:40:36,640 --> 00:40:39,040 close to parliament. 665 00:40:39,040 --> 00:40:41,960 HUW EDWARDS: Yanis Varoufakis, the new Greek finance minister, 666 00:40:41,960 --> 00:40:44,000 visits Downing Street. 667 00:40:44,000 --> 00:40:46,840 Inequality is discussed a lot more than in the past, 668 00:40:46,840 --> 00:40:50,680 because even those who are benefiting from it 669 00:40:50,680 --> 00:40:53,320 find it very hard to justify it. 670 00:40:53,320 --> 00:40:57,720 The little people suffer greatly. 671 00:40:57,720 --> 00:40:58,920 More and more and more, 672 00:40:58,920 --> 00:41:02,800 they have to accept third-rate-quality jobs, if any, 673 00:41:02,800 --> 00:41:05,160 whereas, the rich, they are fabulously 674 00:41:05,160 --> 00:41:07,520 more wealthy than they were before. 675 00:41:07,520 --> 00:41:10,400 Just look at the math. You've had the greatest concentration of wealth 676 00:41:10,400 --> 00:41:13,200 in the history of the world on people's backs, 677 00:41:13,200 --> 00:41:15,480 and it's just not right. It's unfair. 678 00:41:15,480 --> 00:41:17,280 And I would say it's actually evil. 679 00:41:17,280 --> 00:41:19,880 I thought, "All right, the problem's inequality. 680 00:41:19,880 --> 00:41:21,400 "We're not going to fix it." 681 00:41:21,400 --> 00:41:24,120 I started to feel like... 682 00:41:24,120 --> 00:41:25,440 ..I needed to tell someone. 683 00:41:25,440 --> 00:41:27,520 Like, if you know a disaster is going to happen, 684 00:41:27,520 --> 00:41:29,960 you need to say something, right? You know what I mean? 685 00:41:29,960 --> 00:41:32,520 Like, if you know your neighbour's house is going to burn down, 686 00:41:32,520 --> 00:41:34,160 you don't bet on it. You tell them, right? 687 00:41:34,160 --> 00:41:36,720 And then my boss called me in for, like, a half-yearly meeting. 688 00:41:36,720 --> 00:41:38,480 I hadn't even planned it and I just said, 689 00:41:38,480 --> 00:41:40,600 "I don't think I can do this any more. 690 00:41:40,600 --> 00:41:41,960 "I think I need to quit." 691 00:41:55,280 --> 00:41:57,320 I think most people would have guessed that, 692 00:41:57,320 --> 00:41:59,960 if you put two political parties together for five years, 693 00:41:59,960 --> 00:42:02,480 lock them in coalition at a time of austerity, 694 00:42:02,480 --> 00:42:04,200 by the last Cabinet meeting 695 00:42:04,200 --> 00:42:06,280 they'd be absolutely at each other's throats 696 00:42:06,280 --> 00:42:08,840 and determined to part company. 697 00:42:08,840 --> 00:42:12,320 Actually, I think most of the people sitting around that Cabinet table 698 00:42:12,320 --> 00:42:14,360 were pretty proud of what we'd achieved. 699 00:42:14,360 --> 00:42:16,360 We took some decisions 700 00:42:16,360 --> 00:42:19,120 which I, of course, wish we didn't have to take. Who does? 701 00:42:19,120 --> 00:42:21,920 Who wants to be in government when you're having to, you know, 702 00:42:21,920 --> 00:42:23,560 take these agonising decisions? 703 00:42:25,000 --> 00:42:28,200 I've just had an audience with Her Majesty the Queen 704 00:42:28,200 --> 00:42:30,840 following the dissolution of Parliament. 705 00:42:30,840 --> 00:42:34,440 The general election will be held on May 7th. 706 00:42:34,440 --> 00:42:36,560 CHEERING 707 00:42:36,560 --> 00:42:39,840 It's about sticking to the long-term economic plan 708 00:42:39,840 --> 00:42:42,400 that is really beginning to deliver for our country. 709 00:42:44,720 --> 00:42:48,200 Hello! Hi! Nice to see you. Hello. 710 00:42:48,200 --> 00:42:50,240 Britain needs a Labour government. 711 00:42:50,240 --> 00:42:53,560 Friends, let's make it happen. Thank you very much. 712 00:42:53,560 --> 00:42:55,200 KIDS CHEER 713 00:42:55,200 --> 00:42:57,040 Tomorrow, when the polls close, 714 00:42:57,040 --> 00:42:59,640 the Liberal Democrats will be the surprise story 715 00:42:59,640 --> 00:43:02,120 of this general election campaign. 716 00:43:04,480 --> 00:43:07,600 One of the big themes has been the Conservative ability 717 00:43:07,600 --> 00:43:09,680 to take seats away from the Lib Dems. 718 00:43:09,680 --> 00:43:11,360 These were all Lib Dem seats. 719 00:43:11,360 --> 00:43:13,280 They are now all Conservative. 720 00:43:13,280 --> 00:43:16,040 Among the most high-profile names to go, 721 00:43:16,040 --> 00:43:18,480 the schools minister David Laws. 722 00:43:20,400 --> 00:43:23,480 The Conservatives have defied all the pundits 723 00:43:23,480 --> 00:43:26,080 and won a majority of MPs in parliament. 724 00:43:26,080 --> 00:43:28,120 In the wake of the results, 725 00:43:28,120 --> 00:43:31,160 Labour's Ed Miliband, the Liberal Democrats' Nick Clegg 726 00:43:31,160 --> 00:43:35,800 and Nigel Farage of UKIP have all resigned as their party's leader. 727 00:43:35,800 --> 00:43:38,080 The Conservative Party is one of the most successful, 728 00:43:38,080 --> 00:43:40,720 politically successful, parties in the democratic world, 729 00:43:40,720 --> 00:43:42,480 and I think one of the reasons for that 730 00:43:42,480 --> 00:43:45,400 is that they are extremely attuned to what their voters want. 731 00:43:45,400 --> 00:43:51,360 ARCHIVE: Mr Cameron has bucked the pollsters and delighted his party. 732 00:43:51,360 --> 00:43:53,720 Countless times during the coalition, I would say... 733 00:43:53,720 --> 00:43:56,280 We'd have an argument about house-building and they would say, 734 00:43:56,280 --> 00:43:58,800 "Why are you doing that? None of these people vote for you." 735 00:43:58,800 --> 00:44:01,840 And look - as a result, they're in government, I'm out of politics. 736 00:44:01,840 --> 00:44:05,280 The 2015 election was a validation that, if you're honest with people 737 00:44:05,280 --> 00:44:07,480 about the economic problems the country faces, 738 00:44:07,480 --> 00:44:08,880 if you front up to people 739 00:44:08,880 --> 00:44:10,800 that there's going to be some hard decisions, 740 00:44:10,800 --> 00:44:14,000 you take those hard decisions and people see the benefits of them, 741 00:44:14,000 --> 00:44:15,640 then you get rewarded politically. 742 00:44:15,640 --> 00:44:20,920 Osborne and Cameron are very able communicators. 743 00:44:20,920 --> 00:44:22,360 They're very good at it. 744 00:44:22,360 --> 00:44:24,200 That's what they do. 745 00:44:24,200 --> 00:44:27,920 And they were able to portray the banking crisis 746 00:44:27,920 --> 00:44:31,760 as somehow or other Labour's mismanagement and Labour's fault, 747 00:44:31,760 --> 00:44:34,120 then got through as, somehow or other, 748 00:44:34,120 --> 00:44:36,280 Labour accepts this is the problem, 749 00:44:36,280 --> 00:44:39,400 therefore you're accepting the solution as well. 750 00:44:39,400 --> 00:44:42,160 Cut back? We say fight back! 751 00:44:42,160 --> 00:44:44,240 No public sector cuts! 752 00:44:44,240 --> 00:44:46,440 The sense of anger and alienation 753 00:44:46,440 --> 00:44:49,560 that wasn't appearing in any of this consensus 754 00:44:49,560 --> 00:44:51,360 was there, on the streets. 755 00:44:51,360 --> 00:44:53,640 It was there, at the workplace. 756 00:44:53,640 --> 00:44:56,160 But those voices were not being heard in the media 757 00:44:56,160 --> 00:44:59,080 and not being articulated by either front bench at the time. 758 00:44:59,080 --> 00:45:02,800 This is about a social movement of all of us 759 00:45:02,800 --> 00:45:07,240 that can re-change our society into something good, 760 00:45:07,240 --> 00:45:11,200 rather than something that is cruel and divided. 761 00:45:11,200 --> 00:45:13,280 Jeremy Corbyn, 762 00:45:13,280 --> 00:45:15,120 251,000... 763 00:45:15,120 --> 00:45:17,400 CHEERING 764 00:45:17,400 --> 00:45:19,040 You had large numbers of people who, 765 00:45:19,040 --> 00:45:20,840 when they looked at both parties, 766 00:45:20,840 --> 00:45:24,120 they saw the Conservatives as an austerity party. 767 00:45:24,120 --> 00:45:26,720 They saw Labour as a sort of austerity-lite, 768 00:45:26,720 --> 00:45:30,880 not really clear enough on how they'd tackle the economic issues, 769 00:45:30,880 --> 00:45:32,440 particularly around austerity. 770 00:45:32,440 --> 00:45:34,680 So what they wanted was someone to stand up and say, 771 00:45:34,680 --> 00:45:35,880 "This is what I believe in, 772 00:45:35,880 --> 00:45:39,120 "this is what the alternative is, and we can do it." 773 00:45:48,680 --> 00:45:51,600 What I wanted to do was use the political honeymoon 774 00:45:51,600 --> 00:45:54,400 that you get after an election to do the hard stuff. 775 00:45:54,400 --> 00:45:56,600 George Osborne made it very clear in a speech 776 00:45:56,600 --> 00:45:59,240 that he wanted 25 billion of cuts and reductions 777 00:45:59,240 --> 00:46:01,120 over on top of what we'd done 778 00:46:01,120 --> 00:46:04,280 and, of course, the lion's share of that was to fall on welfare. 779 00:46:04,280 --> 00:46:05,560 What the Conservatives did 780 00:46:05,560 --> 00:46:08,600 the moment the Liberal Democrats were ejected from office 781 00:46:08,600 --> 00:46:14,640 was to impose, I thought, an unforgivable sort of swathe of cuts 782 00:46:14,640 --> 00:46:17,360 to the most vulnerable in society, 783 00:46:17,360 --> 00:46:20,160 £12 billion worth of welfare cuts, 784 00:46:20,160 --> 00:46:22,800 which I blocked year after year after year, 785 00:46:22,800 --> 00:46:26,200 and actually introduced a bunch of tax cuts to the very wealthiest. 786 00:46:26,200 --> 00:46:30,280 I didn't have the Liberal Democrats to leverage off, 787 00:46:30,280 --> 00:46:32,120 which we had done before, 788 00:46:32,120 --> 00:46:33,960 it always managed to help. 789 00:46:33,960 --> 00:46:35,600 I used them ruthlessly. 790 00:46:37,600 --> 00:46:40,280 I hoped to persuade the Prime Minister's Office 791 00:46:40,280 --> 00:46:42,280 that they shouldn't go along with this, 792 00:46:42,280 --> 00:46:45,560 but I got a pretty shirty response back from his private office 793 00:46:45,560 --> 00:46:47,800 to say not only am I expected to make this, 794 00:46:47,800 --> 00:46:49,800 but I'm to look for further reductions. 795 00:46:49,800 --> 00:46:51,480 And thinking to myself... 796 00:46:52,680 --> 00:46:54,600 .."I don't think I can do this any longer, 797 00:46:54,600 --> 00:46:56,400 "because this is not what I signed up for." 798 00:46:56,400 --> 00:47:00,160 By 2015-2016, Britain was booming. 799 00:47:00,160 --> 00:47:03,240 And if you can't live within your means then, 800 00:47:03,240 --> 00:47:06,280 what hope have you got if the economy turns down again? 801 00:47:06,280 --> 00:47:09,400 I think there's an argument you hear which is, 802 00:47:09,400 --> 00:47:11,760 "We're growing and things are doing well, 803 00:47:11,760 --> 00:47:14,000 "so we can afford to spend more money." 804 00:47:14,000 --> 00:47:15,560 And then, when things are bad, they go, 805 00:47:15,560 --> 00:47:17,640 "We're doing badly, so we NEED to spend more money." 806 00:47:17,640 --> 00:47:20,640 In other words, there's always an argument for spending more money. 807 00:47:20,640 --> 00:47:22,360 The harder thing is to say, 808 00:47:22,360 --> 00:47:26,160 "Actually, now's the time when we need to cut back a little 809 00:47:26,160 --> 00:47:27,800 "and live within our means." 810 00:47:39,120 --> 00:47:42,400 The argument started that, "You're cutting disability by this much 811 00:47:42,400 --> 00:47:45,280 "and you're doing a tax cut there." 812 00:47:45,280 --> 00:47:50,360 But when I saw the two figures together, I just thought to myself, 813 00:47:50,360 --> 00:47:52,640 "This is going to be really difficult," 814 00:47:52,640 --> 00:47:54,680 because I could no longer live with myself 815 00:47:54,680 --> 00:47:56,600 to continue doing what I was doing. 816 00:47:56,600 --> 00:47:59,480 You know, sometimes you have to look at yourself in the mirror, really, 817 00:47:59,480 --> 00:48:00,920 and I just knew that this was wrong. 818 00:48:02,360 --> 00:48:04,920 ARCHIVE: The Work and Pensions Secretary Iain Duncan Smith 819 00:48:04,920 --> 00:48:06,280 has resigned from the Cabinet, 820 00:48:06,280 --> 00:48:08,440 terming cuts to benefits for the disabled. 821 00:48:08,440 --> 00:48:12,120 In his resignation letter, he said, "They are not defensible 822 00:48:12,120 --> 00:48:16,360 "within a budget that benefits higher-earning taxpayers." 823 00:48:16,360 --> 00:48:18,000 Now the Government says it has no plans 824 00:48:18,000 --> 00:48:20,360 to make new cuts to welfare benefits at all. 825 00:48:20,360 --> 00:48:22,200 I've said, we've listened, we learned, 826 00:48:22,200 --> 00:48:25,080 we made a mistake, we withdrew the proposals. 827 00:48:25,080 --> 00:48:28,760 We still had the job to do of a high budget deficit, 828 00:48:28,760 --> 00:48:32,680 and so we set out how to take further steps. 829 00:48:32,680 --> 00:48:34,040 People didn't want to hear it. 830 00:48:34,040 --> 00:48:36,280 They thought the job had been done, but it hadn't. 831 00:48:36,280 --> 00:48:38,280 You know, Iain Duncan Smith was looking for an excuse 832 00:48:38,280 --> 00:48:39,840 to resign from the government. 833 00:48:39,840 --> 00:48:43,160 He needs to stop drinking the Kool-Aid that he does 834 00:48:43,160 --> 00:48:47,000 and start looking at what had actually happened around that time. 835 00:48:47,000 --> 00:48:50,480 You know, and what had happened was, he got it wrong, 836 00:48:50,480 --> 00:48:52,880 and I don't believe he can ever admit it, 837 00:48:52,880 --> 00:48:54,720 but he got this badly wrong. 838 00:48:54,720 --> 00:48:57,400 The breakdown of consensus around austerity 839 00:48:57,400 --> 00:49:01,240 got a head of steam in the sort of 2015-onwards period 840 00:49:01,240 --> 00:49:03,040 was the fact that it was just unfair 841 00:49:03,040 --> 00:49:04,720 and people could see it was unfair. 842 00:49:04,720 --> 00:49:06,760 There are huge points when, essentially, 843 00:49:06,760 --> 00:49:08,760 people are saying, "We want change." 844 00:49:08,760 --> 00:49:12,080 The bottom 20% in Britain while I was chancellor did better. 845 00:49:12,080 --> 00:49:13,680 Their wages rose more quickly 846 00:49:13,680 --> 00:49:16,160 than at any previous period in British history. 847 00:49:16,160 --> 00:49:19,320 More jobs were created than under any other British government, 848 00:49:19,320 --> 00:49:21,360 and this was after an enormous banking crash 849 00:49:21,360 --> 00:49:23,880 the like of which we hadn't seen for almost 100 years. 850 00:49:23,880 --> 00:49:26,840 So, you know, I think we did everything we could 851 00:49:26,840 --> 00:49:28,640 to make sure that the least well-off, 852 00:49:28,640 --> 00:49:30,320 the most vulnerable, were protected. 853 00:49:30,320 --> 00:49:33,560 A lot of people were saying, you know, "This is not fair." 854 00:49:33,560 --> 00:49:36,120 And actually, for a government, you know, it's a bad place to be in 855 00:49:36,120 --> 00:49:38,600 if people think it's not fair. 856 00:49:38,600 --> 00:49:42,560 To me, it laid the ground for Brexit being possible. 857 00:49:42,560 --> 00:49:44,280 Not probable, but possible. 858 00:49:46,360 --> 00:49:49,920 The British people decide our future in Europe 859 00:49:49,920 --> 00:49:52,000 through an in-out referendum 860 00:49:52,000 --> 00:49:53,920 on Thursday, 23rd June. 861 00:49:56,880 --> 00:49:58,560 The fledgling Remain campaign 862 00:49:58,560 --> 00:50:00,960 gathered for several meetings in Westminster 863 00:50:00,960 --> 00:50:02,800 and were trying to figure out a strategy. 864 00:50:02,800 --> 00:50:07,040 People were feeling a sense of public service cuts, 865 00:50:07,040 --> 00:50:09,080 they were feeling a sense of wage stagnation, 866 00:50:09,080 --> 00:50:11,720 they were feeling their household incomes had been damaged. 867 00:50:11,720 --> 00:50:14,880 And they wanted to push back 868 00:50:14,880 --> 00:50:18,040 and, ultimately, I think, kick the establishment. 869 00:50:18,040 --> 00:50:22,120 I was campaigning as energetically as I could 870 00:50:22,120 --> 00:50:25,720 in England and Wales and Scotland against Brexit. 871 00:50:25,720 --> 00:50:27,120 Before 2008... 872 00:50:28,600 --> 00:50:31,200 ..the majority of the people in Britain were sold the lie 873 00:50:31,200 --> 00:50:32,640 that they would become rich 874 00:50:32,640 --> 00:50:35,880 through financialization in the City of London. 875 00:50:35,880 --> 00:50:38,320 After 2008, the same people 876 00:50:38,320 --> 00:50:41,080 who were offering them that lie 877 00:50:41,080 --> 00:50:44,200 went in overdrive, bailing out the 878 00:50:44,200 --> 00:50:47,040 City of London at their expense. 879 00:50:47,040 --> 00:50:48,920 They were angry. 880 00:50:48,920 --> 00:50:53,360 They would vote for anything that pissed off - 881 00:50:53,360 --> 00:50:55,000 excuse my French - 882 00:50:55,000 --> 00:50:58,840 the elites that they held responsible. 883 00:50:58,840 --> 00:51:02,520 The rights that you have as a worker... Yeah? ..come from Europe. 884 00:51:02,520 --> 00:51:05,760 You've changed for the worse! You've changed for the worse! 885 00:51:05,760 --> 00:51:07,920 The EU has become, I believe, 886 00:51:07,920 --> 00:51:11,880 a friend of the haves rather than a friend of the have-nots. 887 00:51:11,880 --> 00:51:16,320 Every month! I scrape by to make a living every month! 888 00:51:16,320 --> 00:51:21,920 What I saw outside London during the campaign for the referendum 889 00:51:21,920 --> 00:51:25,200 was that people were just sceptical 890 00:51:25,200 --> 00:51:28,520 about the propaganda that they were being given by both sides. 891 00:51:28,520 --> 00:51:30,440 People felt, you know, we'd been told 892 00:51:30,440 --> 00:51:33,800 that we should accept the discipline of a market economy 893 00:51:33,800 --> 00:51:36,240 and it wasn't being applied to the elite. 894 00:51:36,240 --> 00:51:38,560 It's another case of one rule for them 895 00:51:38,560 --> 00:51:40,680 and a different rule for the rest of us. 896 00:51:44,840 --> 00:51:49,840 We received a message from someone who called himself John Doe, 897 00:51:49,840 --> 00:51:53,000 and the big question, "Are you interested in data?" 898 00:51:54,080 --> 00:51:55,760 I answered, "Yes, of course." 899 00:51:55,760 --> 00:52:00,800 It was the biggest leak that ever any journalist had had. 900 00:52:00,800 --> 00:52:07,320 11.5 million documents and 2.6 terabytes of data, 901 00:52:07,320 --> 00:52:11,760 and it was a fascinating insight into how the offshore world works. 902 00:52:11,760 --> 00:52:16,240 It came from Mossack Fonseca, a Panamanian law firm 903 00:52:16,240 --> 00:52:19,680 that had all these super-rich and wealthy clients 904 00:52:19,680 --> 00:52:20,920 around the world. 905 00:52:24,000 --> 00:52:25,680 We could already sense 906 00:52:25,680 --> 00:52:30,360 that this is going to be something more than a normal story 907 00:52:30,360 --> 00:52:33,320 that we are normally working on here at Suddeutsche Zeitung. 908 00:52:35,480 --> 00:52:37,040 The day the story broke, 909 00:52:37,040 --> 00:52:40,440 we had probably three weeks without any sleep. 910 00:52:40,440 --> 00:52:43,640 And then we hoped that the pope would not die on this day, 911 00:52:43,640 --> 00:52:45,880 because we needed the front page. 912 00:52:45,880 --> 00:52:48,560 Tax authorities around the globe have promised action. 913 00:52:48,560 --> 00:52:51,600 Millions of documents from a legal firm based in Panama 914 00:52:51,600 --> 00:52:55,440 which show the extent of tax avoidance by the rich and powerful. 915 00:52:56,640 --> 00:53:00,120 The whole world is currently speaking and reading 916 00:53:00,120 --> 00:53:02,560 and discussing tax havens 917 00:53:02,560 --> 00:53:05,680 and the offshore world - inequality, wealth. 918 00:53:05,680 --> 00:53:08,160 The head of our newsroom, he came in and said, 919 00:53:08,160 --> 00:53:10,720 "There's another mass demonstration in Argentine. 920 00:53:10,720 --> 00:53:12,720 "There's a mass demonstration in Paris. 921 00:53:12,720 --> 00:53:15,520 "People are hitting the streets in Malta. 922 00:53:15,520 --> 00:53:17,560 "There is a raid at the UEFA." 923 00:53:17,560 --> 00:53:19,320 You know, it was just like, 924 00:53:19,320 --> 00:53:22,880 it was just like coming over us like this, this huge wave. 925 00:53:22,880 --> 00:53:25,240 The City of London was almost like a funnel 926 00:53:25,240 --> 00:53:27,960 where money was being poured into and then filtered out 927 00:53:27,960 --> 00:53:30,480 into the overseas territories and the tax havens. 928 00:53:30,480 --> 00:53:33,040 The other thing it absolutely made clear 929 00:53:33,040 --> 00:53:35,480 was the role of what we call the enablers. 930 00:53:35,480 --> 00:53:37,840 So that's the banks, the accountants, 931 00:53:37,840 --> 00:53:41,000 the lawyers, the advisers. 932 00:53:41,000 --> 00:53:44,080 It showed the extent of the complicity 933 00:53:44,080 --> 00:53:48,320 and deliberate acts of all these institutions. 934 00:54:01,280 --> 00:54:02,600 When I found out 935 00:54:02,600 --> 00:54:06,920 that David Cameron's father was implicated in all of this, 936 00:54:06,920 --> 00:54:08,480 I wasn't surprised. 937 00:54:09,960 --> 00:54:13,000 ARCHIVE: David Cameron has called for greater transparency 938 00:54:13,000 --> 00:54:14,200 in the offshore world, 939 00:54:14,200 --> 00:54:16,880 but his late father is revealed in the files 940 00:54:16,880 --> 00:54:19,560 as a client of Mossack Fonseca. 941 00:54:19,560 --> 00:54:23,080 Blairmore Holdings was called after Blairmore, 942 00:54:23,080 --> 00:54:27,480 the traditional seat of the Cameron family in Scotland, 943 00:54:27,480 --> 00:54:30,880 and it was set up in the tax haven of the Bahamas. 944 00:54:32,480 --> 00:54:36,200 Ian Cameron basically collected money to invest it. 945 00:54:36,200 --> 00:54:40,680 When we first approached David Cameron with those facts, 946 00:54:40,680 --> 00:54:43,600 he basically claimed to the public 947 00:54:43,600 --> 00:54:46,760 that he does not have money in Blairmore. 948 00:54:46,760 --> 00:54:48,800 I have no shares, no offshore trusts, 949 00:54:48,800 --> 00:54:51,040 no offshore funds, nothing like that. 950 00:54:51,040 --> 00:54:55,920 From that moment on, you could basically watch a car crashing 951 00:54:55,920 --> 00:54:58,400 because seeing him and his team 952 00:54:58,400 --> 00:55:01,400 trying to basically change the discussion... 953 00:55:01,400 --> 00:55:03,400 There were lots of allegations being levelled, 954 00:55:03,400 --> 00:55:06,960 at the prime minister in particular, and we had to unpick them. 955 00:55:06,960 --> 00:55:10,360 They were trying to say something, but not saying too much 956 00:55:10,360 --> 00:55:12,560 and, in the end, we learned 957 00:55:12,560 --> 00:55:16,280 that even he had invested money in Blairmore. 958 00:55:16,280 --> 00:55:19,360 It took a few days, but he finally got there. 959 00:55:19,360 --> 00:55:21,080 The prime minister says, yes, 960 00:55:21,080 --> 00:55:24,320 he did have a stake in his dad's offshore fund. 961 00:55:24,320 --> 00:55:27,200 Samantha and I had a joint account 962 00:55:27,200 --> 00:55:31,320 and we owned 5,000 units in Blairmore Investment Trust, 963 00:55:31,320 --> 00:55:34,800 which we sold in January 2010. 964 00:55:34,800 --> 00:55:38,760 From that moment on, it was hard to convince the public like, 965 00:55:38,760 --> 00:55:41,840 that he is the fighter for more transparency, 966 00:55:41,840 --> 00:55:46,080 the fighter at the forefront against tax havens. 967 00:55:50,120 --> 00:55:52,040 I think people suddenly woke up 968 00:55:52,040 --> 00:55:54,080 to the scale of what was going on 969 00:55:54,080 --> 00:55:56,280 and just how much it was costing us 970 00:55:56,280 --> 00:55:59,080 in terms of investment within our own country. 971 00:55:59,080 --> 00:56:01,120 The Tories have been stealing our tax, 972 00:56:01,120 --> 00:56:04,960 and domestic violence services are closing. Just explain what you mean. 973 00:56:04,960 --> 00:56:07,440 We're talking about the Panama Papers. 974 00:56:07,440 --> 00:56:09,280 It's like almost the elephant in the room. 975 00:56:09,280 --> 00:56:12,400 Cameron did... He did not look after the vulnerable. 976 00:56:12,400 --> 00:56:14,920 He made sure the rich got richer... 977 00:56:14,920 --> 00:56:16,800 This is all happening that eight weeks 978 00:56:16,800 --> 00:56:20,200 before the biggest decision the country had faced in 50, 60 years. 979 00:56:20,200 --> 00:56:23,440 And I do wonder now, when you look back at the week - 980 00:56:23,440 --> 00:56:25,680 it led the BBC News for a whole week - 981 00:56:25,680 --> 00:56:27,320 maybe if we'd spent some of that time 982 00:56:27,320 --> 00:56:30,680 thinking about the really big issue facing the country, 983 00:56:30,680 --> 00:56:33,000 we might be in a better place. 984 00:56:33,000 --> 00:56:35,200 OK, three, two, one, let's go. 985 00:56:38,200 --> 00:56:39,280 There we go, gang. 986 00:56:39,280 --> 00:56:42,080 We've got a beautiful backdrop. 987 00:56:42,080 --> 00:56:43,280 Well done, folks. 988 00:56:47,120 --> 00:56:50,840 We are on the verge, I think, of making history in our country. 989 00:56:52,240 --> 00:56:53,920 This is the inside of the door. 990 00:56:53,920 --> 00:56:55,960 I don't believe that the Brexit referendum 991 00:56:55,960 --> 00:56:58,200 had much to do with the EU. 992 00:56:58,200 --> 00:57:01,600 It had to do with a sense of frustration 993 00:57:01,600 --> 00:57:04,960 and of needing to punish 994 00:57:04,960 --> 00:57:09,400 both Blair and Cameron, 995 00:57:09,400 --> 00:57:11,800 both Brown and Osborne. 996 00:57:11,800 --> 00:57:16,480 Decisions were being taken in the interests of elites 997 00:57:16,480 --> 00:57:19,520 and without enough attention to the casualties from globalism. 998 00:57:19,520 --> 00:57:24,520 And that was seen, the EU was seen by many people as symbolic of that. 999 00:57:25,720 --> 00:57:30,080 When you have the International Monetary Fund, the World Bank, 1000 00:57:30,080 --> 00:57:32,880 President Obama himself threatening 1001 00:57:32,880 --> 00:57:34,920 Britons with Armageddon 1002 00:57:34,920 --> 00:57:37,040 if they dare vote for Brexit, 1003 00:57:37,040 --> 00:57:39,000 they brought out the Blitz spirit. 1004 00:57:39,000 --> 00:57:43,440 Our focus is in negotiating with a big bloc, the European Union, 1005 00:57:43,440 --> 00:57:45,920 to get a trade agreement done. 1006 00:57:45,920 --> 00:57:49,360 And the UK is going to be in the back of the queue. 1007 00:57:53,160 --> 00:57:56,400 They saw the bankers get up to no good, the economy blow up, 1008 00:57:56,400 --> 00:57:59,560 they were having to work incredibly hard for the same pay 1009 00:57:59,560 --> 00:58:02,000 or take a pay cut, 1010 00:58:02,000 --> 00:58:05,920 and that erodes the fundamental promise of capitalism, 1011 00:58:05,920 --> 00:58:07,720 which is that there's a relationship 1012 00:58:07,720 --> 00:58:10,120 between how hard you work and how you're rewarded. 1013 00:58:10,120 --> 00:58:13,760 And then a whole bunch of snake oil salesmen come along and say, 1014 00:58:13,760 --> 00:58:15,840 "Oh, look, let's vote for Brexit - all will be well." 1015 00:58:17,360 --> 00:58:19,000 BIG BEN TOLLS 1016 00:58:20,040 --> 00:58:22,080 Big Ben has struck ten o'clock. 1017 00:58:22,080 --> 00:58:25,640 The drama of referendum night can begin. 1018 00:58:30,200 --> 00:58:32,640 We fought against the big merchant banks. 1019 00:58:32,640 --> 00:58:34,840 We fought against big politics. 1020 00:58:36,520 --> 00:58:38,120 JEREMY VINE: We're thinking, wait, 1021 00:58:38,120 --> 00:58:42,200 is Leave's vote here a lot stronger than anyone was thinking? 1022 00:58:45,880 --> 00:58:48,040 For an illustrated look into the wealth gap 1023 00:58:48,040 --> 00:58:50,480 and how it affects us all, head over to... 1024 00:58:53,920 --> 00:58:56,800 ..and follow the links to the Open University. 1025 00:59:26,200 --> 00:59:28,400 Love Island for geopolitics. 1026 00:59:28,400 --> 00:59:30,960 The leaders of the world's richest nations have arrived 1027 00:59:30,960 --> 00:59:33,960 for the first face-to-face summit since the pandemic began. 1028 00:59:40,960 --> 00:59:44,400 It is vital that we don't repeat the mistake 1029 00:59:44,400 --> 00:59:49,320 of the last great crisis, last great economic recession in 2008, 1030 00:59:49,320 --> 00:59:52,280 we don't repeat the mistake of 2008. 1031 00:59:58,360 --> 01:00:01,880 The crowd are attacking a branch of the RBS bank. 1032 01:00:01,880 --> 01:00:04,120 LOUD SHOUTING 1033 01:00:04,120 --> 01:00:08,880 Our society's still scarred by too much unfairness and inequality. 1034 01:00:08,880 --> 01:00:11,320 DAVID DIMBLEBY: The British people have spoken 1035 01:00:11,320 --> 01:00:12,840 and the answer is, we're out. 1036 01:00:12,840 --> 01:00:15,280 I've got my country back! 1037 01:00:21,320 --> 01:00:23,760 She thought, "I'm here to demonstrate 1038 01:00:23,760 --> 01:00:25,560 "a change from David Cameron." 1039 01:00:25,560 --> 01:00:27,760 That was not why she had been chosen. 1040 01:00:27,760 --> 01:00:31,960 I'm putting you on warning - this can't go on any more. 1041 01:00:31,960 --> 01:00:33,960 That was quite an aggressive tone. 1042 01:00:33,960 --> 01:00:36,200 People took the trouble to seek me out and say, 1043 01:00:36,200 --> 01:00:38,240 "What the hell was that all about?" 1044 01:00:38,240 --> 01:00:42,120 Philip Hammond used to apparently say to his officials, 1045 01:00:42,120 --> 01:00:44,760 "These are just wacky ideas dreamt up by Nick Timothy." 1046 01:00:44,760 --> 01:00:46,760 That whole collection was the most feckless, 1047 01:00:46,760 --> 01:00:50,680 hapless group I've ever seen, and, quite frankly, a disgrace. 1048 01:00:53,960 --> 01:00:57,360 Covid? Worst economic crisis since the Great Depression, basically. 1049 01:00:57,360 --> 01:01:00,520 Stocks gone up, gone up. 1050 01:01:00,520 --> 01:01:03,640 The Government just poured enormous quantities of money into the system. 1051 01:01:03,640 --> 01:01:06,600 Those of us in private equity got incredibly wealthy. 1052 01:01:06,600 --> 01:01:10,720 You do now have billionaires launching rockets into space. 1053 01:01:10,720 --> 01:01:13,360 Go NASA! Go SpaceX! 1054 01:01:20,280 --> 01:01:24,840 Every month, I scrape, I scrape by to make a living, every month. 1055 01:01:24,840 --> 01:01:28,400 When you're working 70 hours, 80 hours, even 90 hours a week 1056 01:01:28,400 --> 01:01:30,440 just to make nothing, that can't be right. 1057 01:01:30,440 --> 01:01:32,520 CAR HORNS HOOT 1058 01:01:32,520 --> 01:01:35,920 We are going shut it down, unless Uber stops being greedy. 1059 01:01:35,920 --> 01:01:40,600 The big winners of the last ten to 12 years have been those at the top. 1060 01:01:40,600 --> 01:01:43,240 It's a very simple story. It's a story of inequality. 1061 01:01:43,240 --> 01:01:45,360 The fact that we've got nurses going to food banks, 1062 01:01:45,360 --> 01:01:48,920 the type of politicians we've had this far have created this mess. 1063 01:01:48,920 --> 01:01:50,280 People felt, you know, 1064 01:01:50,280 --> 01:01:54,360 we'd been told that we should accept the discipline of a market economy 1065 01:01:54,360 --> 01:01:56,760 and it wasn't being applied to the elite. 1066 01:01:56,760 --> 01:02:01,200 There's one rule for the rest of us, but a different rule for the elite. 1067 01:02:20,400 --> 01:02:22,880 NIGEL FARAGE: We fought against the multinationals, 1068 01:02:22,880 --> 01:02:24,880 we fought against the big merchant banks, 1069 01:02:24,880 --> 01:02:26,680 we fought against big politics, 1070 01:02:26,680 --> 01:02:29,640 we fought against lies... 1071 01:02:33,720 --> 01:02:35,680 We did it. 1072 01:02:37,120 --> 01:02:40,520 What are you hoping will change now? Everything. Everything. 1073 01:02:40,520 --> 01:02:44,160 Working conditions, housing. 1074 01:02:44,160 --> 01:02:47,040 It is scary, but I think it's excitingly scary. 1075 01:02:49,040 --> 01:02:51,880 Absolutely blinding brilliant. 1076 01:02:51,880 --> 01:02:54,560 Best day this country's had for years. 1077 01:02:54,560 --> 01:02:57,400 My personal view always was that we would have been better off 1078 01:02:57,400 --> 01:02:59,440 to have remained members of the European Union. 1079 01:02:59,440 --> 01:03:02,280 The country made the decision that that wasn't going to happen. 1080 01:03:02,280 --> 01:03:06,160 The people have spoken out against the Government, 1081 01:03:06,160 --> 01:03:08,160 the bankers, whatever you want to call it, 1082 01:03:08,160 --> 01:03:10,160 legislation in Brussels and everything. 1083 01:03:10,160 --> 01:03:11,560 People have just had enough. 1084 01:03:11,560 --> 01:03:13,280 I was watching on the television 1085 01:03:13,280 --> 01:03:15,800 with a number of colleagues from the Home Office, 1086 01:03:15,800 --> 01:03:18,120 people who worked for Theresa May at the time, 1087 01:03:18,120 --> 01:03:20,480 and it was like a bomb had gone off in Whitehall. 1088 01:03:20,480 --> 01:03:22,560 There was a very clear sense 1089 01:03:22,560 --> 01:03:26,240 that Downing Street had not anticipated the result at all. 1090 01:03:26,240 --> 01:03:28,480 I think they should maybe bring the Government 1091 01:03:28,480 --> 01:03:30,800 up to the middle of the country, let us all have a say 1092 01:03:30,800 --> 01:03:33,560 because we all get really sick of the way things are. 1093 01:03:33,560 --> 01:03:36,320 When I spoke to Theresa on the phone at that point, 1094 01:03:36,320 --> 01:03:38,800 she was actually very upset about the result 1095 01:03:38,800 --> 01:03:40,640 and was, I think, quite immediately concerned 1096 01:03:40,640 --> 01:03:42,680 about the economic consequences. 1097 01:03:42,680 --> 01:03:44,320 Global markets are rocked 1098 01:03:44,320 --> 01:03:47,360 by Britain's decision to leave the EU. 1099 01:03:47,360 --> 01:03:50,600 Fear really came back to this market around the world today. 1100 01:03:50,600 --> 01:03:51,840 Panic on the markets 1101 01:03:51,840 --> 01:03:54,880 on a scale not seen since the global financial crisis. 1102 01:03:54,880 --> 01:03:56,400 I was based in California 1103 01:03:56,400 --> 01:03:59,960 and I was driving my daughter to a rehearsal, 1104 01:03:59,960 --> 01:04:03,000 and I dropped her off and I had the BBC on. 1105 01:04:03,000 --> 01:04:05,440 I started hearing about the pound... 1106 01:04:06,640 --> 01:04:07,880 ..collapsing. 1107 01:04:07,880 --> 01:04:11,720 And I remember calling some colleagues in London, 1108 01:04:11,720 --> 01:04:15,160 and they were as shocked, I think, as most people were, 1109 01:04:15,160 --> 01:04:18,880 and the marketplace was not ready for this at all. 1110 01:04:18,880 --> 01:04:21,760 $2 trillion wiped out across global markets. 1111 01:04:21,760 --> 01:04:25,960 We have seen a huge global reaction across asset classes. 1112 01:04:25,960 --> 01:04:28,360 It has been a seismic event for the financial market. 1113 01:04:36,920 --> 01:04:40,680 A negotiation with the European Union will need to begin 1114 01:04:40,680 --> 01:04:43,800 under a new Prime Minister, and I think it's right 1115 01:04:43,800 --> 01:04:47,280 that this new Prime Minister start the formal and legal process 1116 01:04:47,280 --> 01:04:49,120 of leaving the EU. 1117 01:04:49,120 --> 01:04:52,640 I was actually in Sicily when the result came through, 1118 01:04:52,640 --> 01:04:56,200 so hastily rebooked some tickets and flew home 1119 01:04:56,200 --> 01:04:58,400 as soon as I saw David had resigned. 1120 01:05:05,640 --> 01:05:08,280 I have just been to Buckingham Palace, 1121 01:05:08,280 --> 01:05:12,440 where Her Majesty the Queen has asked me to form a new government. 1122 01:05:12,440 --> 01:05:15,200 And I accepted. 1123 01:05:15,200 --> 01:05:17,600 The Brexit referendum result had been a surprise, 1124 01:05:17,600 --> 01:05:19,560 and at the heart of that, Theresa May felt 1125 01:05:19,560 --> 01:05:22,400 that there was a sense that politics wasn't listening to people. 1126 01:05:22,400 --> 01:05:24,440 There was one rule for a certain set of people, 1127 01:05:24,440 --> 01:05:26,040 another rule for everyone else, 1128 01:05:26,040 --> 01:05:28,080 a sense that there was a lack of fairness 1129 01:05:28,080 --> 01:05:29,400 and a lack of opportunity. 1130 01:05:29,400 --> 01:05:32,160 The Government I lead will be driven 1131 01:05:32,160 --> 01:05:35,120 not by the interests of the privileged few, 1132 01:05:35,120 --> 01:05:36,440 but by yours. 1133 01:05:36,440 --> 01:05:41,880 We will do everything we can to give you more control over your lives. 1134 01:05:41,880 --> 01:05:44,960 What we were trying to do was to demonstrate 1135 01:05:44,960 --> 01:05:47,400 that this was going to be a different government 1136 01:05:47,400 --> 01:05:50,560 to the one that had been led by David Cameron and George Osborne. 1137 01:05:50,560 --> 01:05:55,840 Nick Timothy, who now, as Theresa May's joint chief of staff, 1138 01:05:55,840 --> 01:05:58,760 is said to be the most powerful man in Britain. 1139 01:05:59,880 --> 01:06:03,040 It was time to move on from austerity and change fiscal policy. 1140 01:06:03,040 --> 01:06:04,680 I think she thought, 1141 01:06:04,680 --> 01:06:07,960 "I'm here to demonstrate a change from David Cameron." 1142 01:06:07,960 --> 01:06:10,280 That was not why she had been chosen. 1143 01:06:10,280 --> 01:06:12,680 She had been chosen to find a consensus on Brexit. 1144 01:06:12,680 --> 01:06:14,560 HUW EDWARDS: Theresa May wasted no time 1145 01:06:14,560 --> 01:06:16,520 in sacking George Osborne as Chancellor. 1146 01:06:16,520 --> 01:06:19,560 LAURA KUENSSBERG: His services were no longer required. 1147 01:06:21,120 --> 01:06:25,000 George had been the author and main spokesman of Project Fear. 1148 01:06:25,000 --> 01:06:28,040 He'd said that immediately after the referendum, 1149 01:06:28,040 --> 01:06:29,320 if there was a Leave vote, 1150 01:06:29,320 --> 01:06:31,600 there would be a sudden and sharp recession 1151 01:06:31,600 --> 01:06:33,400 and the loss of very many jobs. 1152 01:06:33,400 --> 01:06:35,520 And I think she was probably quite right 1153 01:06:35,520 --> 01:06:38,800 that he couldn't be the Chancellor to lead the country's economy 1154 01:06:38,800 --> 01:06:41,640 through the departure from the EU. 1155 01:06:41,640 --> 01:06:43,880 Theresa had a pretty expansive agenda. 1156 01:06:43,880 --> 01:06:47,280 She recognised that Brexit was a moment in time 1157 01:06:47,280 --> 01:06:49,760 where it was possible to harness that energy 1158 01:06:49,760 --> 01:06:53,200 and reshape the forces of society and the economy 1159 01:06:53,200 --> 01:06:55,040 to make it work much better for people. 1160 01:07:01,640 --> 01:07:04,200 There'd certainly been a disconnect, I think, 1161 01:07:04,200 --> 01:07:06,560 between Theresa May's view of the world 1162 01:07:06,560 --> 01:07:09,800 and her Chancellor's view of the world from the start. 1163 01:07:09,800 --> 01:07:13,520 It was clear that having gone as far as we had as a nation, 1164 01:07:13,520 --> 01:07:15,160 we had to finish the job. 1165 01:07:15,160 --> 01:07:18,720 That is the process of getting the public finances 1166 01:07:18,720 --> 01:07:24,080 back into good order and to reassure foreign investors, big businesses 1167 01:07:24,080 --> 01:07:25,720 that things weren't about to change 1168 01:07:25,720 --> 01:07:28,800 in a way that would be disruptive to them. 1169 01:07:35,400 --> 01:07:38,360 The economic outlook following the vote to leave the European Union 1170 01:07:38,360 --> 01:07:40,120 is challenging, according to Mark Carney, 1171 01:07:40,120 --> 01:07:41,760 the Governor of the Bank of England. 1172 01:07:41,760 --> 01:07:46,240 We are having a domestic shock, a domestic economic shock right now. 1173 01:07:46,240 --> 01:07:48,840 It's what it will do to our five-year investment plan 1174 01:07:48,840 --> 01:07:51,040 and our jobs, really. 1175 01:07:51,040 --> 01:07:53,960 July sales, against last year, down a full 30%, 1176 01:07:53,960 --> 01:07:57,200 and August doesn't look like it's going to be any different. 1177 01:07:57,200 --> 01:07:59,800 Disruption in trade just isn't an option for us. 1178 01:07:59,800 --> 01:08:01,360 It has to be sorted. 1179 01:08:01,360 --> 01:08:04,600 People didn't know at that stage in the autumn of 2016 1180 01:08:04,600 --> 01:08:07,080 whether we were going to leave the EU immediately, 1181 01:08:07,080 --> 01:08:09,880 whether we were going to leave with a negotiated exit 1182 01:08:09,880 --> 01:08:12,960 or whether we were just going to leave with no deal. 1183 01:08:12,960 --> 01:08:16,280 And for business in particular, it was quite an alarming period 1184 01:08:16,280 --> 01:08:20,160 and the early message that I was receiving from businesses was, 1185 01:08:20,160 --> 01:08:21,680 "We need some clarity." 1186 01:08:21,680 --> 01:08:25,080 Leading economists, they now fear that there is this, look at that, 1187 01:08:25,080 --> 01:08:28,480 50-50, 50-50 chance of the UK falling into recession 1188 01:08:28,480 --> 01:08:30,320 as a result of the Brexit vote. 1189 01:08:30,320 --> 01:08:33,560 We're living through a time of considerable uncertainty. 1190 01:08:33,560 --> 01:08:37,680 And one thing we can do is reduce the uncertainties 1191 01:08:37,680 --> 01:08:40,320 over the issues we have control. 1192 01:08:48,680 --> 01:08:51,600 Remember how quantitative easing is supposed to work? 1193 01:08:51,600 --> 01:08:54,240 The Bank of England creates a lot of money at the push of a button 1194 01:08:54,240 --> 01:08:56,160 as only a central bank can. 1195 01:08:56,160 --> 01:08:59,520 Once it's made that money, the bank goes out and spends it 1196 01:08:59,520 --> 01:09:02,600 so the extra cash can get out into the broader economy. 1197 01:09:02,600 --> 01:09:06,440 But our central bank doesn't spend it in the shops or down the pub. 1198 01:09:06,440 --> 01:09:10,520 It spends the money in the City buying government bonds, or IOUs, 1199 01:09:10,520 --> 01:09:12,560 from financial institutions. 1200 01:09:12,560 --> 01:09:17,800 By buying assets, they encourage other people to buy. 1201 01:09:17,800 --> 01:09:22,080 As all of us buy, we push up the price of these assets. 1202 01:09:22,080 --> 01:09:24,480 The idea is that you and I will think, 1203 01:09:24,480 --> 01:09:26,760 "Oh, our houses are worth more. 1204 01:09:26,760 --> 01:09:29,400 "Our investments are worth more." 1205 01:09:29,400 --> 01:09:32,800 And because we are richer, we will go and spend more. 1206 01:09:32,800 --> 01:09:35,840 When we spend more, companies look and say, 1207 01:09:35,840 --> 01:09:38,560 "Wow, there's a lot of demand. I'd better invest more. 1208 01:09:38,560 --> 01:09:40,200 "I'd better build more factories." 1209 01:09:40,200 --> 01:09:45,000 And the next thing you know, we pull the whole economy up. 1210 01:09:45,000 --> 01:09:46,680 That's the theory. 1211 01:09:46,680 --> 01:09:50,280 Our priority was to try to reassure investors 1212 01:09:50,280 --> 01:09:52,240 about the path to the future 1213 01:09:52,240 --> 01:09:55,840 and get investors investing, consumers consuming 1214 01:09:55,840 --> 01:09:59,360 and get the economy moving forward as much as it was possible to do. 1215 01:10:08,840 --> 01:10:09,920 But you know what? 1216 01:10:09,920 --> 01:10:12,880 Every time they've done it, they say, the money, you know, 1217 01:10:12,880 --> 01:10:14,960 is supposed to get out there in the economy. 1218 01:10:14,960 --> 01:10:17,160 It ends up in the markets, though, doesn't it? 1219 01:10:17,160 --> 01:10:19,880 Doesn't really benefit the average Joe Bloggs. 1220 01:10:19,880 --> 01:10:24,080 It has succeeded in pushing up asset prices, 1221 01:10:24,080 --> 01:10:27,920 but not in promoting genuine, durable 1222 01:10:27,920 --> 01:10:29,960 and inclusive economic growth. 1223 01:10:29,960 --> 01:10:33,000 And then you get the side-effects, 1224 01:10:33,000 --> 01:10:36,200 rising inequality and anger 1225 01:10:36,200 --> 01:10:39,080 that the central banks have been co-opted by the rich. 1226 01:10:39,080 --> 01:10:41,920 QE doesn't work. It doesn't stimulate the real economy. 1227 01:10:41,920 --> 01:10:43,840 Stop doing QE for the financial sector 1228 01:10:43,840 --> 01:10:45,720 and just start doing it for people. 1229 01:10:45,720 --> 01:10:48,480 The way in which quantitative easing decisions are made is, 1230 01:10:48,480 --> 01:10:51,440 they're made independently by the Bank of England 1231 01:10:51,440 --> 01:10:53,920 with formal oversight from the Treasury. 1232 01:10:53,920 --> 01:10:57,360 When the bank made that decision to extend QE, 1233 01:10:57,360 --> 01:11:00,960 that wasn't a decision that Number 10 was directly involved with. 1234 01:11:00,960 --> 01:11:04,120 What we thought was, when the Bank is making those decisions, 1235 01:11:04,120 --> 01:11:05,880 it needs to take much greater account 1236 01:11:05,880 --> 01:11:08,760 of the distributional effects of those decisions 1237 01:11:08,760 --> 01:11:12,000 and judge those trade-offs perhaps a bit differently. 1238 01:11:12,000 --> 01:11:15,560 The problem is that people have regarded central banks 1239 01:11:15,560 --> 01:11:19,440 as being the only game in town so that whenever there's bad news, 1240 01:11:19,440 --> 01:11:21,560 then they have to do more of it. 1241 01:11:21,560 --> 01:11:23,160 That was a terrible mistake 1242 01:11:23,160 --> 01:11:26,000 because there were lots of other policies 1243 01:11:26,000 --> 01:11:29,280 that might have helped improve economic growth. 1244 01:11:29,280 --> 01:11:31,160 And so people tended to think, 1245 01:11:31,160 --> 01:11:33,680 "We'll just leave it to central banks." 1246 01:11:33,680 --> 01:11:35,040 The massive thing we understand 1247 01:11:35,040 --> 01:11:39,040 is that simply printing money is not anywhere close to as effective 1248 01:11:39,040 --> 01:11:41,120 as economists thought it was going to be. 1249 01:11:41,120 --> 01:11:42,600 It's a very, very weak tool. 1250 01:11:44,280 --> 01:11:49,160 I was at breakfast for hedge funds with Mark Carney, 1251 01:11:49,160 --> 01:11:53,640 and I suggested to him and to the other people around the table 1252 01:11:53,640 --> 01:11:56,760 that we were all very big beneficiaries of QE, 1253 01:11:56,760 --> 01:12:00,840 more than other people, and that it was important politically 1254 01:12:00,840 --> 01:12:03,640 for it to be in the public domain 1255 01:12:03,640 --> 01:12:07,880 that QE benefited the richest the most. 1256 01:12:07,880 --> 01:12:10,520 Mark Carney's response was that that was not true, 1257 01:12:10,520 --> 01:12:12,680 people most at risk of unemployment 1258 01:12:12,680 --> 01:12:14,440 were big beneficiaries as well. 1259 01:12:14,440 --> 01:12:17,640 Since interest rates were cut and QE was launched, 1260 01:12:17,640 --> 01:12:20,320 2.5 million jobs have been created 1261 01:12:20,320 --> 01:12:22,680 and the UK has consistently been 1262 01:12:22,680 --> 01:12:25,560 one of the strongest economies in the G7. 1263 01:12:25,560 --> 01:12:29,200 But my view is, quite clearly, it's the top 1% or 5% 1264 01:12:29,200 --> 01:12:31,000 who have benefited the most. 1265 01:12:40,320 --> 01:12:43,800 Soaring house prices and booming executive and bankers' pay 1266 01:12:43,800 --> 01:12:45,440 are believed to be factors 1267 01:12:45,440 --> 01:12:50,120 in why Britain's richest 1% own more than 20 times the wealth 1268 01:12:50,120 --> 01:12:52,760 of the poorest 12 million people in Britain. 1269 01:13:21,520 --> 01:13:25,080 When Theresa May addresses her party this week, she'll be emphasising 1270 01:13:25,080 --> 01:13:26,920 that they don't just have a new Prime Minister, 1271 01:13:26,920 --> 01:13:29,520 but a new government. 1272 01:13:29,520 --> 01:13:32,160 So in October 2016, Theresa May gave a speech 1273 01:13:32,160 --> 01:13:35,840 to the Conservative Party conference, and in writing that, 1274 01:13:35,840 --> 01:13:38,240 we thought about the right theme to put to it. 1275 01:13:38,240 --> 01:13:41,520 I think one of the frustrations we had in Downing Street 1276 01:13:41,520 --> 01:13:44,160 was that we were going round trying to say to people, 1277 01:13:44,160 --> 01:13:47,600 "You need to understand the importance of the need to change 1278 01:13:47,600 --> 01:13:50,440 "as a result of the things that we've been through." 1279 01:13:50,440 --> 01:13:53,480 And there were a lot of people who were determined to say, 1280 01:13:53,480 --> 01:13:55,920 "Actually, we just need to ride this out, carry on as we were 1281 01:13:55,920 --> 01:13:57,440 "and things will get back to normal." 1282 01:13:57,440 --> 01:13:59,680 CHEERING AND APPLAUSE 1283 01:14:01,360 --> 01:14:05,320 It wasn't the wealthy who made the biggest sacrifices 1284 01:14:05,320 --> 01:14:09,880 after the financial crisis, but ordinary working class families. 1285 01:14:16,000 --> 01:14:20,520 We must acknowledge that the way a small number of businesses behave 1286 01:14:20,520 --> 01:14:23,160 fuels the frustration people feel. 1287 01:14:23,160 --> 01:14:25,360 So if you're a boss who earns a fortune 1288 01:14:25,360 --> 01:14:27,840 but doesn't look after your staff, 1289 01:14:27,840 --> 01:14:32,880 an international company that treats tax laws as an optional extra, 1290 01:14:32,880 --> 01:14:35,120 I'm putting you on warning - 1291 01:14:35,120 --> 01:14:37,560 this can't go on any more. 1292 01:14:37,560 --> 01:14:40,840 That was quite an aggressive tone, 1293 01:14:40,840 --> 01:14:43,880 and it really woke up investors around the world. 1294 01:14:43,880 --> 01:14:46,680 A lot of people, you know, took the trouble to seek me out and say, 1295 01:14:46,680 --> 01:14:48,680 "What the hell was that all about?" 1296 01:14:48,680 --> 01:14:52,280 Philip Hammond used to apparently say to his officials, 1297 01:14:52,280 --> 01:14:55,200 "These are just wacky ideas dreamt up by Nick Timothy." 1298 01:14:55,200 --> 01:14:58,480 Those in office always have to remember the markets, 1299 01:14:58,480 --> 01:15:00,600 the international investment community, 1300 01:15:00,600 --> 01:15:03,760 which is so important to the UK's prosperity. 1301 01:15:03,760 --> 01:15:07,240 Quite late on in drafting the conference speech, 1302 01:15:07,240 --> 01:15:11,240 we decided to include a passage about QE and the effects of it. 1303 01:15:11,240 --> 01:15:14,360 While monetary policy, with super-low interest rates 1304 01:15:14,360 --> 01:15:16,040 and quantitative easing, 1305 01:15:16,040 --> 01:15:20,640 provided the necessary emergency medicine after the financial crash, 1306 01:15:20,640 --> 01:15:24,880 we have to acknowledge that there have been some bad side-effects. 1307 01:15:24,880 --> 01:15:27,040 People with assets have got richer. 1308 01:15:27,040 --> 01:15:30,200 People without them have suffered. 1309 01:15:30,200 --> 01:15:34,640 It was actually a favourite line of Nick Timothy's 1310 01:15:34,640 --> 01:15:39,520 that quantitative easing had driven asset price inflation, 1311 01:15:39,520 --> 01:15:43,960 making the rich richer, essentially, while not driving wage inflation 1312 01:15:43,960 --> 01:15:45,840 and therefore opening up a gap. 1313 01:15:45,840 --> 01:15:49,040 But it kind of misses the point that quantitative easing 1314 01:15:49,040 --> 01:15:51,760 was just about the only weapon we had left 1315 01:15:51,760 --> 01:15:56,080 to deal with threats of a slow-down in the economy. 1316 01:15:56,080 --> 01:15:59,200 The point about QE and that speech 1317 01:15:59,200 --> 01:16:03,120 was not to criticise the fact that it had happened, 1318 01:16:03,120 --> 01:16:06,400 it was to observe some of the effects. 1319 01:16:06,400 --> 01:16:11,080 And if you acknowledge that there are effects for people 1320 01:16:11,080 --> 01:16:14,440 as QE increases asset prices, 1321 01:16:14,440 --> 01:16:17,600 then you need to try to do something about that in wider policy. 1322 01:16:17,600 --> 01:16:19,760 You can't just ignore those consequences. 1323 01:16:19,760 --> 01:16:23,480 A change has got to come and this party is going to make it. 1324 01:16:25,560 --> 01:16:28,520 I remember vividly coming back from that conference, 1325 01:16:28,520 --> 01:16:30,640 being bombarded by texts and calls 1326 01:16:30,640 --> 01:16:35,120 from the Chancellor's aides and officials in the Treasury 1327 01:16:35,120 --> 01:16:38,160 who were somewhat surprised by the line 1328 01:16:38,160 --> 01:16:39,840 and not entirely happy 1329 01:16:39,840 --> 01:16:44,160 that a Prime Minister was commenting on bank policymaking. 1330 01:16:44,160 --> 01:16:46,560 After the conference week, there was a message 1331 01:16:46,560 --> 01:16:48,600 from the Bank of England into Number 10, 1332 01:16:48,600 --> 01:16:52,200 saying it was not really appropriate for us to be talking about QE 1333 01:16:52,200 --> 01:16:54,600 and things that were within their mandate. 1334 01:17:04,240 --> 01:17:06,320 We have created a million new jobs, 1335 01:17:06,320 --> 01:17:09,920 we've seen a 46,000 reduction in unemployment. 1336 01:17:09,920 --> 01:17:11,520 Under this government, 1337 01:17:11,520 --> 01:17:15,040 1,000 more jobs have been created every single day. 1338 01:17:15,040 --> 01:17:17,600 The Government I was part of oversaw more job creation 1339 01:17:17,600 --> 01:17:20,240 than any government in British history before or since, 1340 01:17:20,240 --> 01:17:21,880 and I'm really proud of that. 1341 01:17:29,400 --> 01:17:31,200 HORNS BLOW 1342 01:17:36,120 --> 01:17:38,440 People not even getting the minimum wage 1343 01:17:38,440 --> 01:17:42,400 and grotesque levels of danger and exploitation. 1344 01:17:42,400 --> 01:17:46,480 What we've seen, particularly since 2010, 1345 01:17:46,480 --> 01:17:49,280 is a huge rise in insecure work, whether that's zero-hour jobs 1346 01:17:49,280 --> 01:17:50,400 or jobs where essentially, 1347 01:17:50,400 --> 01:17:52,400 they don't have particularly secure contracts. 1348 01:18:04,520 --> 01:18:08,400 They work for one of the UK's fastest growing tech companies, 1349 01:18:08,400 --> 01:18:10,600 but are in protest over pay. 1350 01:18:10,600 --> 01:18:14,560 It comes back to what you prioritise and whether you think it's OK 1351 01:18:14,560 --> 01:18:17,080 that as long as jobs are being created, 1352 01:18:17,080 --> 01:18:19,800 it doesn't matter whether they pay poverty wages. 1353 01:18:21,600 --> 01:18:25,480 The gig economy was seen as an area where there was huge unfairness 1354 01:18:25,480 --> 01:18:28,960 and, actually, where people were potentially being exploited. 1355 01:18:28,960 --> 01:18:31,080 And if it's going to be the future of the economy, 1356 01:18:31,080 --> 01:18:33,720 then there were things that needed to be ironed out. 1357 01:18:33,720 --> 01:18:36,320 You're suddenly a $60 billion company. 1358 01:18:36,320 --> 01:18:37,680 Yeah. Two and a half years ago, 1359 01:18:37,680 --> 01:18:41,160 Uber was 400 people and we're now 7,000 people. 1360 01:18:41,160 --> 01:18:44,360 Uber is a giant in the gig economy. 1361 01:18:44,360 --> 01:18:47,200 In the last decade, we've had an introduction 1362 01:18:47,200 --> 01:18:49,680 of technology and app-based devices 1363 01:18:49,680 --> 01:18:53,320 where individuals are working in a wholly new way. 1364 01:18:53,320 --> 01:18:56,320 And so because of this, drivers were working very long hours 1365 01:18:56,320 --> 01:18:57,960 for not much money. 1366 01:19:01,240 --> 01:19:04,480 When they first launched their UberX service, 1367 01:19:04,480 --> 01:19:07,760 I was one of the first drivers to actually register with them. 1368 01:19:07,760 --> 01:19:09,360 Uber's there to make ends meet 1369 01:19:09,360 --> 01:19:12,240 for those folks who are maybe finding a transition in their life. 1370 01:19:12,240 --> 01:19:13,440 Uber's there for folks 1371 01:19:13,440 --> 01:19:15,680 who need to add a little extra income to their job 1372 01:19:15,680 --> 01:19:19,080 where they're not seeing the income mobility that they're looking for. 1373 01:19:19,080 --> 01:19:22,160 What attracted me to Uber was a bonus scheme 1374 01:19:22,160 --> 01:19:23,440 that they were offering 1375 01:19:23,440 --> 01:19:26,480 where we were getting paid £10 for each job we did. 1376 01:19:26,480 --> 01:19:29,480 So technically, if I did ten jobs, I would get a £100 bonus. 1377 01:19:31,680 --> 01:19:35,080 The first few months was amazing for me. 1378 01:19:35,080 --> 01:19:38,200 This is a standard Uber technique where they come in, 1379 01:19:38,200 --> 01:19:40,200 it's so nice, they give you a lot of money, 1380 01:19:40,200 --> 01:19:43,080 they actually lose money just to grab the market, 1381 01:19:43,080 --> 01:19:45,920 to get drivers onside, to attract customers. 1382 01:19:45,920 --> 01:19:49,200 And then once they've got hold of that market, 1383 01:19:49,200 --> 01:19:51,400 you start seeing the other side of Uber 1384 01:19:51,400 --> 01:19:53,800 where the bonus has got taken away from us. 1385 01:19:53,800 --> 01:19:56,280 We could also see the fares going down and down. 1386 01:19:56,280 --> 01:19:59,160 When you're working 70 hours, 80 hours, even 90 hours a week, 1387 01:19:59,160 --> 01:20:00,840 that can't be right. 1388 01:20:00,840 --> 01:20:05,240 So when we got legal advice, we actually filed a case against Uber. 1389 01:20:05,240 --> 01:20:08,240 I was really struck by my first meeting with Yaseen. 1390 01:20:08,240 --> 01:20:10,520 He knew what the alarm bells were, 1391 01:20:10,520 --> 01:20:12,320 he knew what the pressure points were 1392 01:20:12,320 --> 01:20:14,600 and what felt wrong about the relationship. 1393 01:20:14,600 --> 01:20:17,200 All he was looking for was the basic protections, 1394 01:20:17,200 --> 01:20:21,480 so national minimum wage, holiday pay, the right to rest breaks 1395 01:20:21,480 --> 01:20:24,520 and the right not to be discriminated against by Uber. 1396 01:20:33,440 --> 01:20:35,880 Uber is facing legal action 1397 01:20:35,880 --> 01:20:39,640 over basic workers' rights for its drivers. 1398 01:20:39,640 --> 01:20:43,000 Working 70 to 80 hours a week, 1399 01:20:43,000 --> 01:20:46,040 it come out to be £4 an hour. 1400 01:20:46,040 --> 01:20:48,520 The drivers are currently treated as self-employed, 1401 01:20:48,520 --> 01:20:50,720 but they want full worker status. 1402 01:20:50,720 --> 01:20:52,960 Driver power! 1403 01:20:52,960 --> 01:20:55,120 Respect the drivers! 1404 01:20:55,120 --> 01:20:57,760 The company says if drivers became employees, 1405 01:20:57,760 --> 01:21:00,840 they would have to work fixed shifts and would lose their flexibility. 1406 01:21:00,840 --> 01:21:03,080 CAR HORNS BLARE 1407 01:21:04,640 --> 01:21:09,400 I have 4,000 drivers and another 5,000 drivers from LA 1408 01:21:09,400 --> 01:21:10,920 that said they will be here. 1409 01:21:10,920 --> 01:21:14,640 We are going to shut it down unless Uber stops being greedy. 1410 01:21:14,640 --> 01:21:17,240 PROTESTERS CHANT 1411 01:21:18,960 --> 01:21:22,360 They are engaging us in the wrong way, and they need to know that. 1412 01:21:22,360 --> 01:21:24,440 DRIVERS CHANT 1413 01:21:27,080 --> 01:21:28,920 Drivers for the cab-hailing app Uber 1414 01:21:28,920 --> 01:21:30,720 have won a landmark employment tribunal 1415 01:21:30,720 --> 01:21:33,440 giving them the right to be classed as company workers 1416 01:21:33,440 --> 01:21:35,000 rather than self-employed. 1417 01:21:35,000 --> 01:21:38,440 The judgment found that, you know, simply because we're working 1418 01:21:38,440 --> 01:21:40,280 in an advanced and interesting way, 1419 01:21:40,280 --> 01:21:43,320 doesn't mean that these individuals should not be protected 1420 01:21:43,320 --> 01:21:45,640 in the same way as they always should have been. 1421 01:21:45,640 --> 01:21:49,200 It wasn't just for me as a driver, it was a message to them to say, 1422 01:21:49,200 --> 01:21:51,640 "Look, we could take on Uber and we could beat them." 1423 01:21:51,640 --> 01:21:53,200 Uber has appealed. 1424 01:21:53,200 --> 01:21:56,760 That means they may not have to change their terms and conditions 1425 01:21:56,760 --> 01:22:00,480 for their drivers until that appeal has worked its way through, 1426 01:22:00,480 --> 01:22:02,640 which could take months or years. 1427 01:22:02,640 --> 01:22:06,760 I recognise that employment and types of employment are changing. 1428 01:22:06,760 --> 01:22:11,000 Technology is the driver in many of those cases. 1429 01:22:11,000 --> 01:22:14,400 That's why I've asked the chief executive of the RSA, 1430 01:22:14,400 --> 01:22:16,960 Matthew Taylor, to do a report, 1431 01:22:16,960 --> 01:22:19,480 a review of modern employment practices. 1432 01:22:19,480 --> 01:22:21,120 And I think this shows that actually, 1433 01:22:21,120 --> 01:22:24,920 it is now the Conservative Party that is the party of working people. 1434 01:22:24,920 --> 01:22:28,840 Workers weren't being given basic employment rights, 1435 01:22:28,840 --> 01:22:32,040 and for Theresa, there was a desire to fix that 1436 01:22:32,040 --> 01:22:34,320 on behalf of those people and their families, 1437 01:22:34,320 --> 01:22:36,000 and to ensure that companies 1438 01:22:36,000 --> 01:22:39,200 weren't taking the mickey out of their own workers. 1439 01:22:49,280 --> 01:22:52,600 We'll never be able to fix a rigged system 1440 01:22:52,600 --> 01:22:57,280 by counting on the same people who have rigged it in the first place. 1441 01:22:57,280 --> 01:23:00,440 It's rigged against you, the American people. 1442 01:23:00,440 --> 01:23:02,520 Duterte! Duterte! 1443 01:23:02,520 --> 01:23:05,080 The tough-talking politician Rodrigo Duterte 1444 01:23:05,080 --> 01:23:07,640 has become the next president of the Philippines. 1445 01:23:07,640 --> 01:23:09,640 Voters saw him as anti-establishment. 1446 01:23:09,640 --> 01:23:12,240 CLAPPING AND CHANTING 1447 01:23:12,240 --> 01:23:15,120 In this country, populism has its loudest voice in this man, 1448 01:23:15,120 --> 01:23:16,400 Beppe Grillo. 1449 01:23:16,400 --> 01:23:20,440 If Mr Hofer wins, it will be seen as another victory for populism 1450 01:23:20,440 --> 01:23:22,680 after Brexit and Donald Trump. 1451 01:23:22,680 --> 01:23:27,320 Hillary Clinton made $21.6 million 1452 01:23:27,320 --> 01:23:29,960 giving speeches to Wall Street banks. 1453 01:23:29,960 --> 01:23:34,240 They totally own her, and that will never, ever change. 1454 01:23:34,240 --> 01:23:37,080 CROWD CHEER 1455 01:23:39,120 --> 01:23:42,920 What happened on November 8th of 2016, the victory of Donald Trump, 1456 01:23:42,920 --> 01:23:46,000 that match was lit in front of the Ov... 1457 01:23:46,000 --> 01:23:48,040 In front of the Resolute Desk of George Bush 1458 01:23:48,040 --> 01:23:51,120 on September 18th of 2008, 1459 01:23:51,120 --> 01:23:53,880 when Bernanke and Paulson were there and told him, 1460 01:23:53,880 --> 01:23:56,240 "We need a trillion by the close of business. 1461 01:23:56,240 --> 01:23:57,600 "Are the systems done?" 1462 01:23:57,600 --> 01:24:02,200 Government intervention is not only warranted, it is essential. 1463 01:24:02,200 --> 01:24:06,720 And do it with bailouts, etc, paid for by the working class. 1464 01:24:06,720 --> 01:24:09,360 That lit the populist revolt you see today. 1465 01:24:09,360 --> 01:24:11,280 Thank you. 1466 01:24:18,720 --> 01:24:21,360 Theresa May has arrived in America at the start of a trip 1467 01:24:21,360 --> 01:24:24,800 which she hopes will pave the way for a post-Brexit trade deal 1468 01:24:24,800 --> 01:24:26,480 with the United States. 1469 01:24:26,480 --> 01:24:27,880 In January 2017, 1470 01:24:27,880 --> 01:24:32,320 we flew to Washington to meet the new president, Donald Trump, 1471 01:24:32,320 --> 01:24:33,760 at the White House. 1472 01:24:40,000 --> 01:24:43,800 I think Brexit's going to be a wonderful thing for your country. 1473 01:24:43,800 --> 01:24:45,760 I think one of the things we have in common 1474 01:24:45,760 --> 01:24:48,720 is that we want to put the interests of ordinary working people 1475 01:24:48,720 --> 01:24:50,480 right up there, centre stage. 1476 01:24:50,480 --> 01:24:52,800 Following the press conference 1477 01:24:52,800 --> 01:24:54,960 that the Prime Minister and president had, 1478 01:24:54,960 --> 01:24:57,400 we sat down for a private lunch, and as I went in, 1479 01:24:57,400 --> 01:25:00,960 I encountered Steve Bannon, then the president's strategist, 1480 01:25:00,960 --> 01:25:02,560 and we had a conversation. 1481 01:25:02,560 --> 01:25:05,640 What was clear was the sense that there was a shared analysis 1482 01:25:05,640 --> 01:25:08,280 of challenging the status quo. 1483 01:25:08,280 --> 01:25:10,960 And certainly in the United States, they took the view 1484 01:25:10,960 --> 01:25:12,960 that Donald Trump had been swept to power 1485 01:25:12,960 --> 01:25:15,600 on a sense that politicians hadn't been listening to people 1486 01:25:15,600 --> 01:25:18,040 for too long, had been doing their own thing. 1487 01:25:26,960 --> 01:25:29,560 They were given a mandate by the British people 1488 01:25:29,560 --> 01:25:31,040 to get this thing done. 1489 01:25:31,040 --> 01:25:33,680 Look at it as an opportunity to be seized, take action. 1490 01:25:33,680 --> 01:25:36,680 It was very clear to us that in the things he was saying, 1491 01:25:36,680 --> 01:25:39,960 Steve Bannon just didn't really have a grasp of the details 1492 01:25:39,960 --> 01:25:42,080 or an understanding of Britain's status 1493 01:25:42,080 --> 01:25:44,640 as an outgoing member of the European Union. 1494 01:25:44,640 --> 01:25:47,320 That whole collection was the most feckless, hapless group 1495 01:25:47,320 --> 01:25:50,600 I've ever seen, and quite frankly, a disgrace. 1496 01:25:50,600 --> 01:25:53,160 Not the mentality, not the toughness, 1497 01:25:53,160 --> 01:25:55,200 not the steeliness that you have to have. 1498 01:25:55,200 --> 01:25:57,680 You think the European Union and all that's 1499 01:25:57,680 --> 01:26:01,320 going to just let England just walk away because they had a vote? 1500 01:26:01,320 --> 01:26:02,920 So you think they're actually, 1501 01:26:02,920 --> 01:26:04,880 they're actually going to let you exit? 1502 01:26:04,880 --> 01:26:08,400 That's not going to happen. You've got to fight for this. 1503 01:26:08,400 --> 01:26:10,760 The things they were saying in the meetings were sort of, 1504 01:26:10,760 --> 01:26:13,960 you know, unbelievably simplistic 1505 01:26:13,960 --> 01:26:19,280 and I think not really cognisant of how it really worked. 1506 01:26:20,800 --> 01:26:23,240 Trump also told her, "Time is your enemy. 1507 01:26:23,240 --> 01:26:24,880 "You've got to get on with this now." 1508 01:26:24,880 --> 01:26:27,520 I mean, he was very, I thought, helpful. 1509 01:26:27,520 --> 01:26:30,560 What did Napoleon say to his marshals? 1510 01:26:30,560 --> 01:26:33,880 "When you set out to take Vienna, take Vienna." 1511 01:26:33,880 --> 01:26:36,320 That's the message to May's government, 1512 01:26:36,320 --> 01:26:38,600 don't tell me what you're going to do by taking elites. 1513 01:26:38,600 --> 01:26:41,960 You've got the mandate from the British... Take, take Vienna. 1514 01:26:41,960 --> 01:26:43,960 You know, was it a meeting of the minds? 1515 01:26:43,960 --> 01:26:46,360 It couldn't have been further from that. 1516 01:26:53,080 --> 01:26:56,400 As we start our negotiations to exit the European Union, 1517 01:26:56,400 --> 01:26:58,160 I report today on an economy 1518 01:26:58,160 --> 01:27:01,440 that has continued to confound the commentators 1519 01:27:01,440 --> 01:27:02,920 with robust growth. 1520 01:27:13,040 --> 01:27:15,440 There was a discussion in my office 1521 01:27:15,440 --> 01:27:19,760 as to why Theresa May was making a statement in Downing Street 1522 01:27:19,760 --> 01:27:21,520 on the street outside. 1523 01:27:21,520 --> 01:27:23,560 And so there's some very sharp people in my office 1524 01:27:23,560 --> 01:27:26,200 watching it on the television and deciding, 1525 01:27:26,200 --> 01:27:28,960 on the basis of what kind of podium was put out, 1526 01:27:28,960 --> 01:27:32,480 whether it was a state message about something that had happened 1527 01:27:32,480 --> 01:27:34,720 that the whole nation should know about, 1528 01:27:34,720 --> 01:27:36,840 or whether it was a political statement. 1529 01:27:41,240 --> 01:27:44,200 I have just chaired a meeting of the Cabinet 1530 01:27:44,200 --> 01:27:48,560 where we agreed that the Government should call a general election 1531 01:27:48,560 --> 01:27:51,320 to be held on June 8th. 1532 01:27:51,320 --> 01:27:54,440 I sort of said, well, why would she do that? 1533 01:27:54,440 --> 01:27:58,200 Erm, she's got a majority, you know, 1534 01:27:58,200 --> 01:28:00,840 and she can, she can govern. 1535 01:28:00,840 --> 01:28:04,440 Having laid out an agenda which was about change, 1536 01:28:04,440 --> 01:28:08,400 it became clear to a number of us in Number 10 at the same time, really, 1537 01:28:08,400 --> 01:28:11,800 that actually, in order to have a mandate for some of those changes, 1538 01:28:11,800 --> 01:28:14,960 Theresa May needed her own mandate through an election. 1539 01:28:14,960 --> 01:28:17,600 Whatever the nature of Brexit, 1540 01:28:17,600 --> 01:28:21,120 there was basically no majority in that parliament 1541 01:28:21,120 --> 01:28:24,360 for any one outcome, and we needed to find a way 1542 01:28:24,360 --> 01:28:28,760 of breaking out of that situation 1543 01:28:28,760 --> 01:28:31,600 in order to be able to make it all work. 1544 01:28:31,600 --> 01:28:36,280 It looks like the Conservative Party is heading for a decisive victory 1545 01:28:36,280 --> 01:28:39,320 in next month's general election. 1546 01:28:39,320 --> 01:28:42,640 We hired consultants to run the campaign. 1547 01:28:42,640 --> 01:28:44,800 We were very aware that we'd never run 1548 01:28:44,800 --> 01:28:47,040 a national election campaign before. 1549 01:28:47,040 --> 01:28:50,680 So you had the kind of Downing Street team strategy 1550 01:28:50,680 --> 01:28:54,560 which was about change, but then you had the strategy 1551 01:28:54,560 --> 01:28:57,600 that was the strategy set by the consultants, 1552 01:28:57,600 --> 01:29:01,520 which was to say, she's the big, sort of strong brand. 1553 01:29:01,520 --> 01:29:04,320 It's about strong and stable leadership. 1554 01:29:04,320 --> 01:29:08,360 Every vote for me is a vote for a strong and stable leadership. 1555 01:29:08,360 --> 01:29:11,360 ..to get the strong and stable leadership and government 1556 01:29:11,360 --> 01:29:13,880 that will deliver that vision for the future. 1557 01:29:13,880 --> 01:29:16,440 Those two things sat very badly with one another. 1558 01:29:16,440 --> 01:29:18,320 She was deeply uncomfortable with it, 1559 01:29:18,320 --> 01:29:20,600 and it showed right the way through the election. 1560 01:29:20,600 --> 01:29:23,040 And looking ahead to the general election because we want, 1561 01:29:23,040 --> 01:29:24,960 I think we need a strong government, 1562 01:29:24,960 --> 01:29:28,240 strong and stable leadership to actually now see that through. 1563 01:29:28,240 --> 01:29:30,320 She wanted to run the campaign 1564 01:29:30,320 --> 01:29:35,000 around the "country that works for everyone" theme that she had set out 1565 01:29:35,000 --> 01:29:37,320 in that first speech she gave as Prime Minister 1566 01:29:37,320 --> 01:29:39,040 on the steps of Number 10. 1567 01:29:39,040 --> 01:29:41,600 And that's what she believed, and that's her politics, 1568 01:29:41,600 --> 01:29:43,520 and that's the message that she wanted to put 1569 01:29:43,520 --> 01:29:45,560 at the centre of the election, 1570 01:29:45,560 --> 01:29:47,800 and she was advised that that wasn't the right thing to do. 1571 01:29:56,440 --> 01:29:58,360 The idea for the policy 1572 01:29:58,360 --> 01:30:02,600 was that we needed to fund the system properly, 1573 01:30:02,600 --> 01:30:06,120 and rather than ask working-age people, 1574 01:30:06,120 --> 01:30:10,080 who already have a quite high level of taxation, 1575 01:30:10,080 --> 01:30:13,560 we wanted to say, well, we would raise the money 1576 01:30:13,560 --> 01:30:17,640 by taking some of the costs of care from the family home after death. 1577 01:30:17,640 --> 01:30:20,360 Good morning. Good morning. 1578 01:30:22,880 --> 01:30:25,960 Sorry to interrupt your lawnmowing. 1579 01:30:25,960 --> 01:30:29,000 And there was an immediate reaction on the doorstep. 1580 01:30:29,000 --> 01:30:33,400 Dementia tax and, you know, home ownership, scare me quite a bit 1581 01:30:33,400 --> 01:30:36,480 because we didn't buy a house to pass it on to the Government. 1582 01:30:36,480 --> 01:30:38,760 We bought a house to pass it on to her. 1583 01:30:38,760 --> 01:30:42,440 There was an immediate step change in decrease in our support, 1584 01:30:42,440 --> 01:30:44,240 and increase in the support for Labour. 1585 01:30:44,240 --> 01:30:46,960 And from that moment onwards, I knew that I was in real trouble. 1586 01:30:48,800 --> 01:30:51,040 CHEERING 1587 01:30:52,680 --> 01:30:55,440 Shake your hand. I love you. Oh, thank you. 1588 01:30:58,080 --> 01:30:59,480 People wanted hope. 1589 01:30:59,480 --> 01:31:02,920 They wanted to see some light at the end of the tunnel. 1590 01:31:02,920 --> 01:31:05,000 They'd endured long years of austerity. 1591 01:31:05,000 --> 01:31:07,200 A lot of sacrifices had been made. 1592 01:31:07,200 --> 01:31:10,400 People felt that there was only so much they could take any more. 1593 01:31:10,400 --> 01:31:11,760 I know people who work two jobs 1594 01:31:11,760 --> 01:31:13,760 and are still struggling to pay their bills, 1595 01:31:13,760 --> 01:31:15,960 the fact that we've got nurses going to food banks. 1596 01:31:15,960 --> 01:31:18,840 The type of politicians we've had this far have created this mess. 1597 01:31:18,840 --> 01:31:20,920 This is our chance, our moment 1598 01:31:20,920 --> 01:31:24,880 to actually change the political narrative and consensus 1599 01:31:24,880 --> 01:31:27,120 and say austerity has got to go. 1600 01:31:27,120 --> 01:31:29,160 CHEERING 1601 01:31:32,280 --> 01:31:35,040 CROWD CHANTS: Corbyn! Corbyn! 1602 01:31:35,040 --> 01:31:38,360 Theresa May is under some pressure over the policy on social care, 1603 01:31:38,360 --> 01:31:41,320 her political opponents really jumping on this, 1604 01:31:41,320 --> 01:31:42,960 dubbing it a dementia tax. 1605 01:31:44,400 --> 01:31:48,040 Theresa rightly felt that the social care system needed reform, 1606 01:31:48,040 --> 01:31:51,160 that people that had assets should make a greater contribution 1607 01:31:51,160 --> 01:31:52,480 to the cost of the care. 1608 01:31:52,480 --> 01:31:56,360 We knew that actually, we were trying to be brave, 1609 01:31:56,360 --> 01:31:59,520 in the words of the civil servant in Yes Minister, 1610 01:31:59,520 --> 01:32:02,280 but it was a mistake to raise it in a general election 1611 01:32:02,280 --> 01:32:03,880 where things are very hot, 1612 01:32:03,880 --> 01:32:05,920 which was probably quite obvious. 1613 01:32:13,840 --> 01:32:16,480 You have just announced a significant change 1614 01:32:16,480 --> 01:32:18,720 to what was offered in your manifesto, 1615 01:32:18,720 --> 01:32:22,160 saying there will now be the possibility of a cap on social care 1616 01:32:22,160 --> 01:32:25,680 that was not in the plans that was announced just four days ago. 1617 01:32:25,680 --> 01:32:29,240 That doesn't look so strong and stable, Prime Minister, does it? 1618 01:32:29,240 --> 01:32:31,320 She obviously felt under huge pressure 1619 01:32:31,320 --> 01:32:33,960 that the manifesto hadn't gone well. 1620 01:32:33,960 --> 01:32:36,880 The policy was under attack, she was changing it slightly. 1621 01:32:36,880 --> 01:32:40,640 And, yeah, I think she was under pressure and her patience snapped. 1622 01:32:40,640 --> 01:32:44,480 Nothing has changed. 1623 01:32:44,480 --> 01:32:48,000 We have not changed the principles that we set out in the manifesto. 1624 01:32:48,000 --> 01:32:49,440 Something HAD changed, 1625 01:32:49,440 --> 01:32:53,160 so to say in a kind of grumpy way, "nothing has changed" 1626 01:32:53,160 --> 01:32:55,600 was quite a damaging moment, I think. 1627 01:32:55,600 --> 01:32:58,520 Are you embarrassed by this U-turn, Prime Minister? 1628 01:32:58,520 --> 01:33:01,040 First indications of whether she's got what she wanted 1629 01:33:01,040 --> 01:33:03,200 or whether Jeremy Corbyn has dashed her hopes 1630 01:33:03,200 --> 01:33:05,240 will come with the exit poll at ten. 1631 01:33:05,240 --> 01:33:08,760 I will probably never forget where I was 1632 01:33:08,760 --> 01:33:10,720 the night of the 2017 election. 1633 01:33:10,720 --> 01:33:13,160 I was in Conservative Party headquarters, 1634 01:33:13,160 --> 01:33:14,960 standing around the central table 1635 01:33:14,960 --> 01:33:18,440 where Nick Timothy, Fiona Hill worked with Lynton Crosby 1636 01:33:18,440 --> 01:33:20,440 and the other campaign chiefs, 1637 01:33:20,440 --> 01:33:22,640 waiting for the result to come in. 1638 01:33:22,640 --> 01:33:24,920 I remember vividly the whispers 1639 01:33:24,920 --> 01:33:27,160 starting to kind of go around the room 1640 01:33:27,160 --> 01:33:31,720 that the exit poll had not been everything we hoped it would be. 1641 01:33:31,720 --> 01:33:34,320 The exit poll was due to come in at ten o'clock, 1642 01:33:34,320 --> 01:33:36,640 and at one or two minutes to ten 1643 01:33:36,640 --> 01:33:40,880 Fi had actually received a tip-off with the results and told me, 1644 01:33:40,880 --> 01:33:44,240 and I actually... I actually thought she was joking. 1645 01:33:44,240 --> 01:33:46,680 They don't have an overall majority at this stage. 1646 01:33:46,680 --> 01:33:49,560 314 for the Conservatives, 1647 01:33:49,560 --> 01:33:52,200 266 for Labour. 1648 01:33:52,200 --> 01:33:54,160 Oh... Oh, Labour gains. 1649 01:33:54,160 --> 01:33:56,200 Oh, my God! 1650 01:33:56,200 --> 01:33:58,240 Oh, my God. 1651 01:33:58,240 --> 01:34:00,680 With anything like this, May's gone. 1652 01:34:02,280 --> 01:34:04,920 Extraordinary. Labour have done some serious damage 1653 01:34:04,920 --> 01:34:06,560 to Conservative seats. 1654 01:34:06,560 --> 01:34:10,040 Theresa May has played a high-risk political game 1655 01:34:10,040 --> 01:34:13,320 and it appears she may have lost her gamble. 1656 01:34:13,320 --> 01:34:15,160 We'd thrown away an opportunity 1657 01:34:15,160 --> 01:34:16,720 to deliver the changes 1658 01:34:16,720 --> 01:34:20,400 that Theresa May really thought that the country needed. 1659 01:34:20,400 --> 01:34:23,720 And, for me, that was a devastating moment. 1660 01:34:23,720 --> 01:34:26,320 It was the worst night of my life, without question. 1661 01:34:29,120 --> 01:34:30,520 The snap general election 1662 01:34:30,520 --> 01:34:33,800 has backfired spectacularly for the Conservatives. 1663 01:34:33,800 --> 01:34:36,080 The UK now has a hung parliament. 1664 01:34:36,080 --> 01:34:39,680 Is this strong and stable, Prime Minister? 1665 01:34:39,680 --> 01:34:43,360 The mood in the party was astonishment. 1666 01:34:43,360 --> 01:34:45,960 I mean, remember, we started this campaign with the forecast 1667 01:34:45,960 --> 01:34:48,400 of a 100 seat-odd majority, 1668 01:34:48,400 --> 01:34:49,960 and then anger, 1669 01:34:49,960 --> 01:34:55,640 and the anger very quickly focused in on the Joint Chiefs of Staff 1670 01:34:55,640 --> 01:34:59,440 who had effectively monopolised the campaign. 1671 01:34:59,440 --> 01:35:03,440 Theresa May's two closest advisers, Nick Timothy and Fiona Hill, 1672 01:35:03,440 --> 01:35:06,680 have resigned following the Conservative Party's failure 1673 01:35:06,680 --> 01:35:10,720 to win a majority in Parliament in the general election. 1674 01:35:13,000 --> 01:35:15,440 It wasn't a victory because we didn't win the election, 1675 01:35:15,440 --> 01:35:19,600 but it did change the narrative, it did enthuse and excite people, 1676 01:35:19,600 --> 01:35:21,920 and it did bring forward the ideas 1677 01:35:21,920 --> 01:35:25,840 that a society has to care for all, not the few. 1678 01:35:31,280 --> 01:35:33,720 The Government has been under pressure on public sector pay 1679 01:35:33,720 --> 01:35:35,040 for some time. 1680 01:35:35,040 --> 01:35:37,360 CHANTING: Scrap the cap! Scrap the cap! 1681 01:35:37,360 --> 01:35:40,880 After eight years of pay freezes and pay caps, 1682 01:35:40,880 --> 01:35:43,240 people have simply had enough. 1683 01:35:43,240 --> 01:35:46,680 You've seen what the Chancellor said in Cabinet about low pay, 1684 01:35:46,680 --> 01:35:49,160 how public sector workers are overpaid. 1685 01:35:49,160 --> 01:35:51,800 I was at Barts Hospital yesterday with the cleaners. 1686 01:35:51,800 --> 01:35:54,600 One of the cleaners gave me a payslip. 1687 01:35:54,600 --> 01:35:57,840 Full-time worker earns £297 a week. 1688 01:35:57,840 --> 01:36:01,520 At the moment, median rent in London is nearly £1,500. 1689 01:36:01,520 --> 01:36:04,960 To buy a house in London is half a million pounds. 1690 01:36:04,960 --> 01:36:07,160 Ask Philip Hammond if he can live on that. 1691 01:36:07,160 --> 01:36:09,440 I've got her payslip here. It's a weekly payslip. 1692 01:36:09,440 --> 01:36:12,240 £297 is what she takes home. 1693 01:36:12,240 --> 01:36:15,160 Do you think that's overpaid? No, of course it's not overpaid. 1694 01:36:15,160 --> 01:36:17,320 Look... That's very, very hard to live on. 1695 01:36:17,320 --> 01:36:18,800 John McDonnell needs to remember 1696 01:36:18,800 --> 01:36:20,720 that it was a Conservative government 1697 01:36:20,720 --> 01:36:22,880 that introduced the National Living Wage. 1698 01:36:33,840 --> 01:36:36,880 One of the biggest ever leaks of offshore secrets. 1699 01:36:36,880 --> 01:36:39,080 13 million documents. 1700 01:36:39,080 --> 01:36:41,280 They are known as the Paradise Papers, 1701 01:36:41,280 --> 01:36:43,480 and they reveal the tax affairs 1702 01:36:43,480 --> 01:36:46,680 of rich and powerful people around the world. 1703 01:36:46,680 --> 01:36:51,120 When we received the Paradise Papers, 1704 01:36:51,120 --> 01:36:56,200 one part of us was saying, "Oh, no, not again." 1705 01:36:56,200 --> 01:36:58,600 When we published the Panama Papers, many people said, 1706 01:36:58,600 --> 01:37:01,320 "Yeah, well, I mean, you're looking at those rich individuals, 1707 01:37:01,320 --> 01:37:03,080 "but what about the companies, you know, 1708 01:37:03,080 --> 01:37:04,520 "what about the multinationals?" 1709 01:37:04,520 --> 01:37:06,360 Now we had, what we had in our hands 1710 01:37:06,360 --> 01:37:09,800 was exactly how the multinationals were working. 1711 01:37:09,800 --> 01:37:13,880 And so, yeah, so we started another investigation. 1712 01:37:13,880 --> 01:37:16,440 The technology giant Apple has been managing 1713 01:37:16,440 --> 01:37:18,720 most of its untaxed cash reserve offshore 1714 01:37:18,720 --> 01:37:20,520 on the Channel Island of Jersey. 1715 01:37:20,520 --> 01:37:22,000 The arrangement isn't illegal, 1716 01:37:22,000 --> 01:37:25,520 but means the technology giant saves billions in corporation tax. 1717 01:37:25,520 --> 01:37:27,880 US companies alone are estimated 1718 01:37:27,880 --> 01:37:31,240 to have over $2 trillion stashed offshore. 1719 01:37:31,240 --> 01:37:35,480 It's not OK that they take part of our society, 1720 01:37:35,480 --> 01:37:37,960 but they don't give anything back. 1721 01:37:37,960 --> 01:37:41,640 It was interesting because after the Panama Papers revelations, 1722 01:37:41,640 --> 01:37:44,360 we heard several experts 1723 01:37:44,360 --> 01:37:47,560 and representatives of the financial industry telling us, like, 1724 01:37:47,560 --> 01:37:51,640 well, Panama Papers was about Mossack Fonseca. 1725 01:37:51,640 --> 01:37:55,000 It's like the black sheep of the industry. 1726 01:37:55,000 --> 01:38:00,360 This is not a problem of one or two law firms or consultancy firms. 1727 01:38:00,360 --> 01:38:05,520 It's a problem of a whole industry that is, at least in my opinion, 1728 01:38:05,520 --> 01:38:10,520 rotten, and that has basically lost its compass and its values 1729 01:38:10,520 --> 01:38:12,960 for what is right and what is wrong. 1730 01:38:12,960 --> 01:38:15,000 I had taken over as Chief of Staff, 1731 01:38:15,000 --> 01:38:18,440 and I remember the Prime Minister was uncomfortable 1732 01:38:18,440 --> 01:38:20,920 about some of the revelations there. 1733 01:38:20,920 --> 01:38:23,040 In her 2016 conference speech, 1734 01:38:23,040 --> 01:38:25,760 she was criticising the sort of global elite, 1735 01:38:25,760 --> 01:38:28,080 and she particularly referenced people 1736 01:38:28,080 --> 01:38:30,640 that were not paying their fair share of tax. 1737 01:38:30,640 --> 01:38:33,480 You know, she talked the talk. She didn't walk the walk. 1738 01:38:33,480 --> 01:38:37,920 There's a whole load of initiatives which are hugely important 1739 01:38:37,920 --> 01:38:40,800 in clamping down on tax avoidance, 1740 01:38:40,800 --> 01:38:42,640 which she just didn't put into place. 1741 01:38:42,640 --> 01:38:44,040 It's probably not an issue 1742 01:38:44,040 --> 01:38:46,160 that she devoted the time she would have done 1743 01:38:46,160 --> 01:38:49,520 if she hadn't had all of the Brexit issues running alongside it. 1744 01:38:49,520 --> 01:38:52,160 She would have probably spent more time trying to address 1745 01:38:52,160 --> 01:38:54,880 some of the things which those papers revealed. 1746 01:39:06,600 --> 01:39:08,840 Protesters are accusing President Macron 1747 01:39:08,840 --> 01:39:12,480 of continuing France's economic divisions. 1748 01:39:12,480 --> 01:39:15,560 This movement is about the cost of living, the minimum wage 1749 01:39:15,560 --> 01:39:17,800 and broader questions of inequality. 1750 01:39:28,520 --> 01:39:31,640 PROTESTERS CHANT 1751 01:39:36,840 --> 01:39:42,000 The United Kingdom has the weakest wage growth of all G20 nations. 1752 01:39:42,000 --> 01:39:44,880 What is so wrong with our economy 1753 01:39:44,880 --> 01:39:48,240 that our pay growth is so much worse? 1754 01:39:48,240 --> 01:39:51,760 Prime Minister. We now see wages growing faster 1755 01:39:51,760 --> 01:39:53,720 than they have for nearly a decade, 1756 01:39:53,720 --> 01:39:56,160 more people in work than ever before. 1757 01:40:05,240 --> 01:40:07,920 There was ultimately a difference 1758 01:40:07,920 --> 01:40:10,480 between Theresa May's view of politics 1759 01:40:10,480 --> 01:40:13,400 and actually, a number of people in her Cabinet 1760 01:40:13,400 --> 01:40:15,560 who felt that she was going too far 1761 01:40:15,560 --> 01:40:19,160 in terms of being interventionist and trying to meddle too much 1762 01:40:19,160 --> 01:40:22,760 in areas of the economy that traditionally, Conservatives think 1763 01:40:22,760 --> 01:40:24,960 should be left to the market to sort out. 1764 01:40:24,960 --> 01:40:28,040 The concerns came from Philip and the Treasury primarily, 1765 01:40:28,040 --> 01:40:32,080 and they would say, "We need to be really careful that we don't damage 1766 01:40:32,080 --> 01:40:34,960 "the flexible labour market that we've got in this country 1767 01:40:34,960 --> 01:40:36,960 "that has allowed us to create all these jobs. 1768 01:40:36,960 --> 01:40:39,720 I just think we always have to be very careful 1769 01:40:39,720 --> 01:40:45,280 when the messaging we deliver can be capable of an interpretation 1770 01:40:45,280 --> 01:40:49,360 which then comes back to bite us through damaging the economy, 1771 01:40:49,360 --> 01:40:51,800 damaging people's prosperity. 1772 01:40:53,640 --> 01:40:56,600 You'd expect a Chancellor to say that. 1773 01:41:03,600 --> 01:41:07,120 She allowed the Cabinet to really water the agenda down, 1774 01:41:07,120 --> 01:41:11,200 such that most of the most radical proposals were lost, 1775 01:41:11,200 --> 01:41:14,560 and it became clear to me that if that was the decision on that, 1776 01:41:14,560 --> 01:41:17,200 that was going to be the decision on other things as well. 1777 01:41:17,200 --> 01:41:20,440 And that was one of the reasons why ultimately, I decided not to stay. 1778 01:41:29,440 --> 01:41:34,640 Top executive pay has leapt by 11% in the last year, 1779 01:41:34,640 --> 01:41:36,920 taking the average salary to nearly £4 million, 1780 01:41:36,920 --> 01:41:39,600 145 times more than their employees. 1781 01:41:50,320 --> 01:41:53,960 Persimmon gave its chief executive £50 million worth of shares. 1782 01:41:53,960 --> 01:41:58,040 It's the first payment of what's been described as an obscene bonus. 1783 01:41:58,040 --> 01:42:01,040 When we made investments on behalf of our clients, 1784 01:42:01,040 --> 01:42:03,640 what we were looking for the companies to do 1785 01:42:03,640 --> 01:42:05,640 was act in a responsible manner. 1786 01:42:05,640 --> 01:42:10,640 The pay situation at Persimmon made big headlines, and rightly so, 1787 01:42:10,640 --> 01:42:13,680 because the original award to the chief executive, 1788 01:42:13,680 --> 01:42:18,520 Jeff Fairburn, represented a new high watermark in UK pay. 1789 01:42:18,520 --> 01:42:21,200 It was approaching 110 million, 1790 01:42:21,200 --> 01:42:23,840 and we challenged that with the company. 1791 01:42:28,600 --> 01:42:31,320 It was a small concession, well, it was a large concession 1792 01:42:31,320 --> 01:42:34,640 in terms of the amount of money that Jeff Fairburn was willing to forego, 1793 01:42:34,640 --> 01:42:39,040 but it only took the bonus down to, I think, £75 million at the time, 1794 01:42:39,040 --> 01:42:42,080 which we still found untenable. 1795 01:42:42,080 --> 01:42:44,520 Shareholders in the York house-builder Persimmon 1796 01:42:44,520 --> 01:42:47,200 have shown their displeasure at a controversial bonus scheme 1797 01:42:47,200 --> 01:42:48,400 at the company. 1798 01:42:48,400 --> 01:42:49,840 Too much. Too much. 1799 01:42:49,840 --> 01:42:51,800 Totally and utterly unjustified. 1800 01:42:51,800 --> 01:42:56,120 We attended the AGM to voice our concerns. 1801 01:42:56,120 --> 01:42:59,600 If there's one person or one small group of individuals 1802 01:42:59,600 --> 01:43:02,400 taking an unfair portion of the spoils, 1803 01:43:02,400 --> 01:43:05,920 then it really does affect a company's reputation. 1804 01:43:05,920 --> 01:43:09,560 We think that if companies get these things wrong, 1805 01:43:09,560 --> 01:43:11,320 it will endanger their business 1806 01:43:11,320 --> 01:43:14,560 and it will endanger the future return profile of that business. 1807 01:43:23,560 --> 01:43:26,680 I'd rather not talk about that, it's been well covered, actually, so... 1808 01:43:26,680 --> 01:43:29,280 So you don't want to discuss that today? 1809 01:43:29,280 --> 01:43:32,320 Are any lessons, are there any lessons to be learned from that? 1810 01:43:32,320 --> 01:43:34,720 It was the biggest bonus in the country. 1811 01:43:36,840 --> 01:43:40,560 OK. Right, fine. I think that's really unfortunate, actually, 1812 01:43:40,560 --> 01:43:41,840 that you've done that. 1813 01:43:50,280 --> 01:43:52,400 CROWD CHANTS: Theresa May must go! 1814 01:43:52,400 --> 01:43:54,320 Theresa May must go! 1815 01:43:54,320 --> 01:43:57,080 Theresa May has got to go! 1816 01:43:57,080 --> 01:43:59,720 Say, hey! Hey! Ho! Ho! 1817 01:43:59,720 --> 01:44:00,920 Theresa May has got to go! 1818 01:44:10,040 --> 01:44:12,680 The economy was actually doing rather well, 1819 01:44:12,680 --> 01:44:15,960 especially considering the uncertainty 1820 01:44:15,960 --> 01:44:18,400 that the country was facing. 1821 01:44:18,400 --> 01:44:21,640 The public finances were looking in much better shape 1822 01:44:21,640 --> 01:44:24,120 than we would dare, would have dared to have hoped. 1823 01:44:24,120 --> 01:44:26,920 Over the summer, I had gone to a meeting at the Treasury 1824 01:44:26,920 --> 01:44:29,840 to get a briefing on what the public finances looked like 1825 01:44:29,840 --> 01:44:32,200 in the run-up to the Budget. And I looked at the numbers 1826 01:44:32,200 --> 01:44:34,440 and thought, there is actually an opportunity 1827 01:44:34,440 --> 01:44:37,280 for the Prime Minister to say that we can bring austerity to an end. 1828 01:44:37,280 --> 01:44:40,320 MUSIC: Dancing Queen by Abba 1829 01:44:46,760 --> 01:44:51,280 The British people need to know that the end is in sight. 1830 01:44:51,280 --> 01:44:54,120 A decade after the financial crash, 1831 01:44:54,120 --> 01:44:58,200 people need to know that the austerity it led to is over. 1832 01:45:01,480 --> 01:45:05,120 Voters had not decided that we were wrong to have taken action 1833 01:45:05,120 --> 01:45:06,960 to try and sort out the public finances, 1834 01:45:06,960 --> 01:45:08,960 but they were looking now for that to come to an end 1835 01:45:08,960 --> 01:45:10,560 and for more money to go into them, 1836 01:45:10,560 --> 01:45:14,040 and for the Prime Minister to recognise that publicly, I think, 1837 01:45:14,040 --> 01:45:15,880 was a hugely important moment. 1838 01:45:15,880 --> 01:45:20,680 Here today, the Prime Minister announcing the end of austerity 1839 01:45:20,680 --> 01:45:22,320 if she gets a good Brexit deal. 1840 01:45:22,320 --> 01:45:24,720 And, of course, that is a pretty big if. 1841 01:45:33,960 --> 01:45:37,200 I think she genuinely came in with a belief 1842 01:45:37,200 --> 01:45:40,040 that, actually, the economy was skewed 1843 01:45:40,040 --> 01:45:42,560 to the advantage of a minority. 1844 01:45:42,560 --> 01:45:45,520 But everything about her premiership became about Brexit. 1845 01:45:45,520 --> 01:45:47,960 It dominated every single part of it. 1846 01:45:47,960 --> 01:45:50,560 You know, even in the areas where she talked about, for example, 1847 01:45:50,560 --> 01:45:53,240 changing the labour market to give workers more say, 1848 01:45:53,240 --> 01:45:55,640 didn't have the bandwidth to drive it through. 1849 01:45:55,640 --> 01:45:59,360 The agenda sort of stopped, which is understandable. 1850 01:45:59,360 --> 01:46:01,840 The election result meant that the government 1851 01:46:01,840 --> 01:46:03,800 was to some extent paralysed. 1852 01:46:03,800 --> 01:46:07,080 It was bogged down in the Brexit wars. 1853 01:46:07,080 --> 01:46:09,720 The House of Commons inflicts a crushing defeat 1854 01:46:09,720 --> 01:46:12,000 on Theresa May's Brexit agreement. 1855 01:46:12,000 --> 01:46:13,760 The Prime Minister has once again 1856 01:46:13,760 --> 01:46:17,600 suffered a heavy parliamentary defeat on her Brexit deal. 1857 01:46:18,640 --> 01:46:20,200 What do you want? Brexit! 1858 01:46:20,200 --> 01:46:22,120 When do you want it? Now! 1859 01:46:22,120 --> 01:46:24,760 The Prime Minister's Brexit divorce plan 1860 01:46:24,760 --> 01:46:27,800 is rejected by Parliament yet again on the very day 1861 01:46:27,800 --> 01:46:31,400 that the United Kingdom was supposed to leave the European Union. 1862 01:46:31,400 --> 01:46:34,080 Shame on you! Shame on you! 1863 01:46:40,240 --> 01:46:42,240 I will shortly leave the job 1864 01:46:42,240 --> 01:46:45,840 that it has been the honour of my life to hold. 1865 01:46:45,840 --> 01:46:49,280 I do so with no ill will, 1866 01:46:49,280 --> 01:46:52,360 but with enormous and enduring gratitude 1867 01:46:52,360 --> 01:46:56,840 to have had the opportunity to serve the country I love. 1868 01:47:12,040 --> 01:47:13,280 APPLAUSE 1869 01:47:18,000 --> 01:47:21,560 The doubters, the doomsters, the gloomsters, 1870 01:47:21,560 --> 01:47:24,520 they are going to get it wrong again. 1871 01:47:24,520 --> 01:47:28,360 It is time we unleashed the productive power, 1872 01:47:28,360 --> 01:47:31,240 not just of London and the southeast, 1873 01:47:31,240 --> 01:47:34,400 but of every corner of England, Scotland, 1874 01:47:34,400 --> 01:47:36,640 Wales and Northern Ireland. 1875 01:47:36,640 --> 01:47:40,440 We'll level up across Britain with higher wages, a higher living wage, 1876 01:47:40,440 --> 01:47:43,720 higher productivity and giving business the confidence 1877 01:47:43,720 --> 01:47:46,320 to invest across the UK. 1878 01:47:46,320 --> 01:47:49,240 I think a big part of Boris Johnson's agenda 1879 01:47:49,240 --> 01:47:52,600 resonates with what Theresa May was talking about. 1880 01:47:52,600 --> 01:47:54,680 Levelling up is fundamentally about fairness. 1881 01:47:54,680 --> 01:47:57,160 It's about creating greater equality of opportunity. 1882 01:47:57,160 --> 01:48:00,440 And Boris Johnson talks a lot about rebalancing the economy 1883 01:48:00,440 --> 01:48:02,440 beyond London and the southeast. 1884 01:48:02,440 --> 01:48:06,480 That's a continuation in many ways of the agenda Theresa May laid out. 1885 01:48:18,200 --> 01:48:20,160 In central China, a man has died 1886 01:48:20,160 --> 01:48:23,640 following an outbreak of an unknown pneumonia-like virus. 1887 01:48:23,640 --> 01:48:26,840 The outbreak began in the central city of Wuhan. 1888 01:48:26,840 --> 01:48:29,040 Investors around the world have been gripped by fear 1889 01:48:29,040 --> 01:48:32,720 that not just the human cost, but the financial cost, of this virus... 1890 01:48:32,720 --> 01:48:35,840 The coronavirus crisis has sent stocks worldwide 1891 01:48:35,840 --> 01:48:38,680 into a global spiral of turmoil. 1892 01:48:38,680 --> 01:48:40,640 I remember getting lots of phone calls, 1893 01:48:40,640 --> 01:48:44,080 lots of people got phone calls, "What's going on? Why is it?" 1894 01:48:44,080 --> 01:48:45,920 And we explained 1895 01:48:45,920 --> 01:48:49,360 that the whole economic system had been put on pause. 1896 01:48:49,360 --> 01:48:51,200 It wasn't functioning any more. 1897 01:48:51,200 --> 01:48:54,640 Take a look at this ugly, ugly day on Wall Street. 1898 01:48:54,640 --> 01:49:00,480 The Dow collapsing, its worst single-day loss ever. 1899 01:49:00,480 --> 01:49:04,320 This is going to create what's called a sudden stop 1900 01:49:04,320 --> 01:49:06,880 and, literally, it's like turning the lights off. 1901 01:49:17,800 --> 01:49:20,040 The Fed announced a multimillion dollar package 1902 01:49:20,040 --> 01:49:22,480 of quantitative easing to encourage spending. 1903 01:49:22,480 --> 01:49:26,440 They're going to be purchasing $500 billion of treasuries 1904 01:49:26,440 --> 01:49:29,720 and $200 billion of mortgage-backed securities, 1905 01:49:29,720 --> 01:49:31,600 and that number could increase. 1906 01:49:35,880 --> 01:49:37,920 The European Central Bank has announced 1907 01:49:37,920 --> 01:49:41,360 it will pump three-quarters of a trillion euros, 1908 01:49:41,360 --> 01:49:44,840 that's around $820 billion, into the financial system. 1909 01:49:44,840 --> 01:49:46,920 This is the Bank of England kind of on overdrive, 1910 01:49:46,920 --> 01:49:50,920 trying to create a kind of airbed for the whole economy 1911 01:49:50,920 --> 01:49:55,560 by cutting interest rates and £200 billion of quantitative easing. 1912 01:50:04,720 --> 01:50:06,640 The Bank of England intervention 1913 01:50:06,640 --> 01:50:09,480 was to try and give people confidence 1914 01:50:09,480 --> 01:50:13,680 that we're not living in a world of total uncertainty. 1915 01:50:22,400 --> 01:50:24,440 After a paid leave package passed today, 1916 01:50:24,440 --> 01:50:26,960 this would be the biggest wave of money unlocked 1917 01:50:26,960 --> 01:50:28,480 to combat the coronavirus. 1918 01:50:28,480 --> 01:50:30,520 The size and the urgency of this 1919 01:50:30,520 --> 01:50:35,400 is evocative of the bank rescue package from the financial crisis. 1920 01:50:35,400 --> 01:50:38,800 Today, I can announce that for the first time in our history, 1921 01:50:38,800 --> 01:50:43,080 the Government is going to step in and help to pay people's wages. 1922 01:50:43,080 --> 01:50:46,960 Breaking news, the Federal Reserve was signalling moments ago 1923 01:50:46,960 --> 01:50:51,040 it will take major new action to prop up the economy. 1924 01:50:51,040 --> 01:50:55,120 Look at that, right off the bat, the Dow Jones up 6%. 1925 01:50:55,120 --> 01:50:56,680 We've gone straight up. 1926 01:50:56,680 --> 01:51:00,560 At this moment, the Dow industrials are up close to 1,200 points. 1927 01:51:02,200 --> 01:51:05,800 The Bank of England is pumping an additional £100 billion 1928 01:51:05,800 --> 01:51:07,480 into the financial system. 1929 01:51:07,480 --> 01:51:09,920 Markets riding a wave of euphoria. 1930 01:51:16,640 --> 01:51:20,680 We have used economic policy very actively and very substantially, 1931 01:51:20,680 --> 01:51:23,960 and that has to be the right thing to do in the current circumstances. 1932 01:51:23,960 --> 01:51:27,200 It keeps liquidity in the economy available for other uses 1933 01:51:27,200 --> 01:51:30,440 because it supports businesses and it supports households. 1934 01:51:30,440 --> 01:51:34,480 Covid - worst economic crisis since the Great Depression, basically. 1935 01:51:34,480 --> 01:51:36,840 Stocks, gone up. Gone up. 1936 01:51:36,840 --> 01:51:39,160 What it has created is a bizarre situation 1937 01:51:39,160 --> 01:51:41,760 where the consequence of economic collapse 1938 01:51:41,760 --> 01:51:44,080 and the consequence of economic crisis 1939 01:51:44,080 --> 01:51:49,160 is repeatedly a massive increase in stock and asset prices. 1940 01:51:49,160 --> 01:51:51,760 And who owns stocks and who owns assets? 1941 01:51:51,760 --> 01:51:53,560 Well, mainly, it's wealthy people. 1942 01:52:05,400 --> 01:52:07,400 The Thai economy has come to a standstill. 1943 01:52:09,840 --> 01:52:12,240 The government has been mismanaging the economy. 1944 01:52:12,240 --> 01:52:13,640 Misrule, really, we've had. 1945 01:52:21,320 --> 01:52:22,440 IN PORTUGUESE: 1946 01:52:28,960 --> 01:52:30,160 Calculations by Oxfam 1947 01:52:30,160 --> 01:52:33,480 suggest the combined wealth of ten of the world's richest men 1948 01:52:33,480 --> 01:52:37,520 has increased during the coronavirus pandemic by £400 billion. 1949 01:52:37,520 --> 01:52:39,720 Fuck Jeff Bezos! 1950 01:52:39,720 --> 01:52:41,520 CROWD: Fuck Jeff Bezos! 1951 01:52:41,520 --> 01:52:42,600 Fuck Jeff Bezos! 1952 01:52:42,600 --> 01:52:46,000 The rich are getting richer. Everyone else is getting poorer. 1953 01:52:46,000 --> 01:52:48,200 If it continues, we're going to wind up 1954 01:52:48,200 --> 01:52:54,080 with an even more volatile society in which everybody hates each other. 1955 01:52:54,080 --> 01:52:55,960 They're taxing me on unemployment, 1956 01:52:55,960 --> 01:52:58,040 they're taxing me at every corner I get, 1957 01:52:58,040 --> 01:53:00,040 but you have a man that's a billionaire 1958 01:53:00,040 --> 01:53:03,280 and all of them are billionaires, and they're not being taxed. 1959 01:53:03,280 --> 01:53:05,520 Tell me where the right and wrong is in that. 1960 01:53:05,520 --> 01:53:08,760 Those in poverty were nearly four times more likely 1961 01:53:08,760 --> 01:53:11,320 to die from Covid than more affluent groups. 1962 01:53:11,320 --> 01:53:15,520 It says the pandemic has widened the gap between rich and poor in the UK. 1963 01:53:15,520 --> 01:53:17,280 Over the last 12 years, 1964 01:53:17,280 --> 01:53:21,760 we're talking about unprecedented amounts of money being printed 1965 01:53:21,760 --> 01:53:24,000 and funnelled into the markets, 1966 01:53:24,000 --> 01:53:26,440 banks being showered with trillions 1967 01:53:26,440 --> 01:53:29,280 upon trillions upon trillions of dollars, 1968 01:53:29,280 --> 01:53:32,720 ultimately benefitting the most privileged in our societies. 1969 01:53:32,720 --> 01:53:37,400 So you do now have billionaires launching rockets into space. 1970 01:53:37,400 --> 01:53:43,000 Lift off of the Falcon 9 and Crew Dragon. Go NASA! Go SpaceX! 1971 01:53:43,000 --> 01:53:46,400 I think this is something that should really get people, 1972 01:53:46,400 --> 01:53:48,080 I mean, right in the heart. 1973 01:53:48,080 --> 01:53:50,800 You have certain elements of society that are soaring... 1974 01:53:50,800 --> 01:53:55,440 This team is amazing. We just feel really good about it. 1975 01:53:55,440 --> 01:53:56,920 ..and other parts of our society 1976 01:53:56,920 --> 01:53:59,320 that are being unfortunately left ever further behind. 1977 01:54:05,920 --> 01:54:07,680 What quantitative easing has done 1978 01:54:07,680 --> 01:54:11,120 is to make the cost of borrowing affordable for businesses, 1979 01:54:11,120 --> 01:54:13,360 particularly during the Covid crisis. 1980 01:54:13,360 --> 01:54:16,520 Now, what that does, let's come to the inequality point, 1981 01:54:16,520 --> 01:54:18,760 that has kept unemployment down and by the way, 1982 01:54:18,760 --> 01:54:20,400 throughout the last decade, 1983 01:54:20,400 --> 01:54:23,040 throughout the time when quantitative easing has been, 1984 01:54:23,040 --> 01:54:25,720 you know, to a greater or lesser extent, present, 1985 01:54:25,720 --> 01:54:28,800 unemployment has tended to be lower in this country 1986 01:54:28,800 --> 01:54:30,120 than it was forecast to be. 1987 01:54:38,120 --> 01:54:41,560 Now let's move to the US because the Federal Reserve, 1988 01:54:41,560 --> 01:54:44,400 the Central Bank, could be set to start removing 1989 01:54:44,400 --> 01:54:47,240 its support for the economy sooner than expected. 1990 01:54:47,240 --> 01:54:50,320 The European Central Bank could be about to start scaling back 1991 01:54:50,320 --> 01:54:52,160 the cash it's pumping into the economy. 1992 01:54:52,160 --> 01:54:54,000 What we will initially do 1993 01:54:54,000 --> 01:54:57,440 is to cease to reinvest in government bonds 1994 01:54:57,440 --> 01:55:02,360 and over time, that will reduce the stock of government bonds we hold 1995 01:55:02,360 --> 01:55:06,160 and will bring the size of the Bank of England's balance sheet down. 1996 01:55:06,160 --> 01:55:10,800 Since 2008, there's been something like $20 trillion 1997 01:55:10,800 --> 01:55:14,160 spent on QE by the main four central banks. 1998 01:55:14,160 --> 01:55:18,480 And each time they've tried to stop, the markets have panicked, 1999 01:55:18,480 --> 01:55:22,400 so yes, in a way, markets are addicted 2000 01:55:22,400 --> 01:55:26,080 and central banks have become very nervous indeed 2001 01:55:26,080 --> 01:55:28,440 about removing the drug. 2002 01:55:28,440 --> 01:55:31,600 We have been through the biggest monetary policy stimulus 2003 01:55:31,600 --> 01:55:33,920 the world has ever seen. 2004 01:55:33,920 --> 01:55:37,840 And the obvious fact that jumps out of it 2005 01:55:37,840 --> 01:55:40,280 is that if you've had the biggest monetary policy stimulus 2006 01:55:40,280 --> 01:55:41,480 the world's ever seen 2007 01:55:41,480 --> 01:55:45,800 and you still haven't had adequate economic growth, 2008 01:55:45,800 --> 01:55:49,840 maybe the answer is not yet more monetary policy stimulus. 2009 01:55:58,640 --> 01:56:03,360 The big winners of the last ten to 12 years have been those at the top. 2010 01:56:03,360 --> 01:56:06,080 It's a very simple story, it's a story of inequality. 2011 01:56:06,080 --> 01:56:09,120 We're all in this together. We can deal with our debts. 2012 01:56:09,120 --> 01:56:11,000 We can get our economy growing. 2013 01:56:11,000 --> 01:56:13,880 Fairness without a strong economy doesn't work. 2014 01:56:13,880 --> 01:56:16,880 A strong economy without fairness doesn't work either. 2015 01:56:16,880 --> 01:56:20,920 We will make Britain a country that works not for a privileged few, 2016 01:56:20,920 --> 01:56:22,960 but for every one us. 2017 01:56:22,960 --> 01:56:25,120 We can no longer tolerate a setup 2018 01:56:25,120 --> 01:56:28,520 where the real economy, in which millions work, 2019 01:56:28,520 --> 01:56:32,040 is just a sort of sideshow for the City of London. 2020 01:56:32,040 --> 01:56:35,760 We have one of the most imbalanced societies 2021 01:56:35,760 --> 01:56:40,200 and lopsided economies of all the richer countries. 2022 01:56:40,200 --> 01:56:43,680 We are going to fix this economy and build back better than ever before. 2023 01:56:43,680 --> 01:56:47,880 Many people feel that the political establishment failed them 2024 01:56:47,880 --> 01:56:52,200 and naturally, people feel, having been let down once, you know, 2025 01:56:52,200 --> 01:56:54,640 it will take a lot of change 2026 01:56:54,640 --> 01:57:00,200 before they feel they can rely on the same governmental systems 2027 01:57:00,200 --> 01:57:03,920 to take care of their future problems. 2028 01:58:09,200 --> 01:58:11,600 For an illustrated look into the wealth gap 2029 01:58:11,600 --> 01:58:14,480 and how it affects us all, head over to... 2030 01:58:17,320 --> 01:58:20,160 ..and follow the links to the Open University.