Prime Minister, it was a huge speech. When's the general election?
Not this year, not next year. I've got to get on with the job because I don't think people want Britain to go into another big political argument. I've got a manifesto to implement and I will. But I've also got to lay plans for the future. Britain has been in the wrong place. And as I argue today, we need a new path, a completely new path. We can't fix everything overnight. We need to put plans down to put water under public control, energy, fix social care.
It's a big vision. You said out with the old. You don't want the old style of politics. You're going to break the mold. You've kicked Keir Starmer out and you're operating under his manifesto. What's going to change?
Well, I am operating because that's about trust in politics, isn't it? If I came in and said, "Oh, you know what? That was then and here's a different program." That wouldn't be true to what I said today, which is about doing politics in the right way, keeping people's trust, being honest with them. That's my approach. When the time comes to put the plan for the National Care Service on the table and ask for people's support, well, obviously I will do that. But we're not at that time. And I don't think people want a general election now. We've got loads to do to fix. For instance, getting the railways working properly with the nationalization program underway. They're addressing the main issue, the cost of living pressure that the country is under. I took a decision within days of coming into Downing Street to take VAT off electricity bills and that comes off on Thursday.
I would be the first to say that is not the be all and end all. Small measure, but at least it shows what I'm trying to do.
Okay, let me give you an example of what a small measure that might turn out to be. It's going to be £45.
That's the average, but obviously it depends on how much energy you use in a year.
Okay, we have spoken to 82-year-old Hillary. She lives with her husband. She's very worried her energy bill is going up by £57 a month. How are people supposed to afford it?
Well, it's very hard, isn't it? And what we've got to do is address the root cause, which is the conflict in the Middle East, which is causing a lot of pressure when it comes to the cost of energy, the cost of fuel. Fuel at the pump this week, I know because I'm hearing the feedback, has gone over two pound a liter, and people are struggling with that. I can't deal with all of those things. I can't fix all of those things straight away. We can do what we can. And I did agree last week to provide some support to the Saudi government who are trying to protect their energy infrastructure from damage. These things matter. Getting the Strait of Hormuz matters and I spoke to President Trump about that last week. So I can't fix everything. All I can do is do things that are under my control. I have made the move on VAT but a lot more is needed.
Okay. So, what do you say to people like Hillary who are facing an unaffordable rise in their energy bills?
No, I don't want to say that to her.
That would be defeatist and wrong from somebody in my position. I've got to do what I can. As I said, you know, I very much hear her voice. There is a budget coming up. It's about a month away and we will look at what we can do to give people more breathing space. It's difficult. I'll be honest with you. You know, the public finances, people can see the pressure that they are under. They can see the financial situation around the world. Again, there are global pressures at play here but I'm not making excuses. I'm leading a cost of living government. That is our priority. We're doing what we can to help people when we can.
Okay, so we're not going to have a general election imminently?
We're going to have a general election in 2029, 2030?
Yeah, that's when the next general election will be.
Will people be better off then?
I will have done everything I can possibly do to make them better off.
I can't predict. You've already admitted you can't.
I can't predict what will happen in the Middle East. I can't guarantee anything to help with energy bills.
But you haven't done well beyond cutting £45.
I know, but for people who use more, that figure is a lot higher. It depends on how much you use.
So, you can't guarantee she'll be better off by the next election?
Because I can't guarantee what happens between Russia and Ukraine. I can't guarantee what happens in the Middle East. I can do what I can to provide leadership and support and I have provided that to President Zelensky. We are doing what we can to help in the Middle East. What we then got to do is at home everything possible to take pressure off people. And I'm looking at what I can do working with the chancellor as we get towards the next budget.
Would you consider extending the cut in fuel duty to help?
As I'm going to have to sound like the typical politician, obviously those are matters for the budget. We are looking at all of those pressures on people, the cost of living moves that we could make and we're judging what is possible. Nobody would applaud me if we did what a previous prime minister and government did, which was to make unfunded commitments at a budget and then that damaged people's mortgages. And I don't think people would want me to go down that path. Of course, I've got to balance these things, but always be prudent when it comes to the running of the economy and making sure that we stick within our fiscal rules.
I'm going to pin you down on it. Is it possible in the budget there might be help for people's energy bills and there might be help in terms of people paying for diesel and petrol at the pumps?
I mean, it's always possible to do things, isn't it, to help people, but I can't...
You're going to be honest and you said you're going to do politics in a different way.
I will and I've tried today. I've given a speech in this hall today which I think most people would say was not a typical party conference speech. I try to address people directly on issues that I think the country needs.
I'm not sure what I'm going to tell Hillary when I talk to her.
No, but I can't give you details of the budget to pass on to Hillary because that has an impact on markets and it has to be done in the right way and it does have to be done in the right way because then you can cause a problem.
Okay. In terms of further pressures that may then impact on people's finances. You have told her though that the way that her state pension is calculated is changing. You're changing from the triple lock to a double lock. Will she be worse off if her pension doesn't go up in line with wages?
It's still a triple lock, but we're adjusting the triple lock. Now, again, it sounds technical, but I need to explain it. So, three things are involved in the triple lock: prices, earnings, and 2.5%. And every year the pension rises, as you know, according to which one of those is highest.
No, it's not taken out completely. So it is an adjustment. So the thing is the way the current triple lock works is it's really driving the pension up, which is a good thing. By 2030 it will be at record levels and at that point if we adjust it in the way that I'm describing it will then hold the pension there. The thing that people might notice is the triple lock has had the effect of taking pensioners into tax. So because of the tax threshold being where it is, some basic state pensioners will come into tax. And we're saying as a government, well, we shouldn't do that and we won't.
So you don't want to put them up too much so that they don't pay tax.
