Thank you, President, and I join others in thanking you for convening the debate today. And I also thank our briefers for their very insightful remarks.

At the start of the year, the UN’s Global Humanitarian Overview warned of unprecedented levels of global food insecurity, driven by a perfect storm of COVID-19, the climate crisis and conflict.

Yemen faces catastrophic levels of food insecurity for the fifth year running.

Refugees across the Sahel are suffering from increased violence and reduced humanitarian access.

And in the Horn of Africa, particularly in Ethiopia and Somalia, millions of people affected by conflict are also grappling with the worst drought in 40 years.

Russia ignored this suffering in choosing to invade Ukraine, the breadbasket of the world.

Ukraine’s food and fertiliser exports were feeding up to 400 million people worldwide.

And now, a critical part of the world’s food supply chain is being throttled by Russia.

Across the world, 13 million hungry children, already subsisting on a knife-edge – of those, 2 million now face starvation this year.

As our Minister explained yesterday, the UK fully supports the US-led ‘Roadmap for Global Food Security’ and the Global Alliance launched under Germany’s G7 Presidency.

We have the food and the means to help the most vulnerable, but we must act now.

First, the international community must enable the free-movement of food.

Alongside over 50 WTO members, the UK has committed to keeping food and agricultural markets open, predictable and transparent.

All WTO members must prohibit export restrictions on food bought for the World Food Programme.

Second, it is vital that we strengthen global resilience to prevent future famine risks.

As we set out in the UK’s International Development Strategy, which we launched this week, the UK will support the most vulnerable countries with over $3.5 billion of humanitarian aid in the next three years.

British International Investment – the UK’s development finance institution – will scale up high-quality and sustainable investments, including in the food and agricultural sector.

And the World Bank must deliver swiftly on its plans to strengthen fragile economies by distributing $170 billion over the next 15 months.

Finally, actors on the ground need to live up to their responsibilities, under international humanitarian law. We will continue to pursue accountability of those using starvation as a weapon of war.

President,

This man-made global crisis requires a collective, global response.

The UK stands in solidarity with vulnerable countries and will play its part.

Russia must now play theirs: end the conflict and the global shocks it is inflicting on the world’s poorest.

I thank you.

• Commitments also made on tackling antimicrobial resistance – a global killer costing millions of lives a year
• Focus on climate and health will see G7 countries lead the way in reducing greenhouse gases and improving health and wellbeing

A landmark pact signed by G7 health ministers in Berlin will help ensure the world is better prepared for future pandemics.

The G7 Pact for Pandemic Readiness will see the UK, USA, Japan, Canada, France, Germany, and Italy work more closely together – and with relevant multilateral organisations like the World Health Organisation – by sharing the best of their Covid inspired initiatives, including those on surveillance and rapid response.

Commitments were also made by health ministers to tackle the silent pandemic of antimicrobial resistance AMR – infections caused by bacteria resistant to antibiotics – including exploring a range of market incentive options which will encourage pharmaceutical companies and others to fund research and trials for new antibiotics.

Pledges on climate and health were also made with G7 members committing to build climate-neutral health systems by 2050 at the latest, and to support countries across the globe in this effort.

Speaking from Berlin, UK Health and Social Care Secretary Sajid Javid said:

This meeting was a crucial moment for G7 member countries as we learn the lessons of Covid and how to live with the virus.

I am committed to ensuring we are all better prepared against future health threats including another pandemic and antimicrobial resistance, which is why it was so important we united today to protect the world’s health.

The UK’s leading the way with our living with Covid approach, and it was great to exchange ideas with my G7 counterparts on how we all move out of the pandemic.

The Pandemic Pact aims to help embed a One Health approach, which considers the connection between people, animals, plants, and the environment, to help identity emerging health threats across these groups, and improve detection of new variants of concern. This will help strengthen global health security and better protect everyone from another pandemic

AMR is estimated to cause 1.27million deaths a year worldwide – around 1 in 5 deaths are amongst children under 5 – making it a leading cause of death globally.

The G7 health ministers meeting took place in Berlin from Thurs 19 May – Friday 20 May and concluded with the signing of the G7 Health Ministers’ Declaration.

The Declaration has sections on: the G7 Pact for Pandemic Readiness; overcoming the pandemic in 2022; tackling the silent pandemic of AMR; and climate neutral health systems.

Bethany Turner, from Alresford, appeared live on Friday’s (20th May) episode of Blue Peter, joining the presenters in the studio as her ‘Earth Sitter’ emblem was named the winner. Bethany wants satellites to help in measuring the melting of the polar ice caps and monitoring deforestation, to discover when trees have been felled and where new seedlings need to be planted to prevent global warming.

The programme also featured 2nd place runner up Adam, aged 13 from Lancashire, who designed “The Ace of Space” that could be used to help repair broken satellites, and 3rd place runner up, Ava, aged 7 from Pembrokeshire, whose ecologically focused design “Where Bees Belong” could help search for land that needs more flowers for bees. Adam and Ava will have their names engraved on the satellite, along with 27 runners up.

British ESA astronaut Tim Peake launched the competition, which was supported by the UK Space Agency, in October 2021 to give young people across the UK the opportunity to design an emblem and come up with ideas for how satellites could be used to help people in the future.

Bethany said:

It felt amazing when I found out I had won, I was so shocked I couldn’t believe it. For my design I thought if we could scan the Earth with satellites it could tell people when there’s illegal deforestation and they could go and plant trees. It could also scan the polar icecaps so people can see when they’re melting and try to prevent it.

I’ve been interested in space for quite a long time and I really enjoy it. I get most of my information from books from the library or books I’ve bought and I definitely want to learn more. I’d definitely be interested in working in the space sector in the future.

As part of Bethany’s prize, she spent a day with Steve Neaves, Creative Director at Hampshire-based branding and design studio Crux. Steve and his team had worked on Bethany’s original drawing to help create the final emblem that will blast into space. They explained how her design had been redrawn and digitised to enable it to be engraved onto the plaque that will be fixed to the satellite.

Ian Annett, Deputy CEO at the UK Space Agency, said:

We all use space every day, from watching satellite broadcasts, using a mobile phone, to finding our way around. Data from satellites in space is even used for monitoring the environment and understanding climate change and it’s a big part of new technologies like supporting driverless cars through better connectivity.

From missions to Mars, to understanding climate change or launching satellites, all this great work relies on more young people joining the space sector in roles such as engineering, law, science and philosophy and the UK Space Agency is working to inspire future generations to consider a career in the space sector. It’s fantastic to see so many people take part in this wonderful competition and our huge congratulations go to Bethany, Adam, Ava and all the runners up.

ESA astronaut Matthias Maurer congratulated Bethany with a message from the International Space Station, saying:

I heard the brilliant news about you winning the Blue Peter space competition and I thought ‘where could be the best place to congratulate you from, but here in space’. I am currently on my own mission, and I have brought along the Blue Peter badge for the ride!

Bethany’s emblem will be engraved onto a satellite that will be sent into orbit on the first launch from UK soil from Spaceport Cornwall this summer.  As part of her winner’s experience, Bethany will also win a Blue Peter Orange Competition winners’ badge, take control of a Mars Rover at Airbus in Stevenage, experience a trip in a driverless car supported by satellites and get to see behind the scenes at satellite testing facilities at Harwell Space Cluster, in Oxfordshire.

The satellite is a collaboration between the UK’s Defence Science and Technology Laboratory, and Airbus Defence and Space, and designed and built by In-Space Missions in Alton, Hampshire.

Good evening everybody, it’s fantastic to be with you here today.

It’s a great privilege to address this distinguished audience for the first time in fact since I became Chancellor two and a half years ago.

So let me take this opportunity to say thank you.

Thank you for all your support. Your advice. Your challenge.

The country is not going to become wealthy and prosperous solely because of the things that I do.

Change doesn’t happen behind a desk in Whitehall. Not even the Chancellor’s desk. It comes from all of you.

When your businesses invest, things get built.

When you train someone, they excel.

When you invent new products and services that people want to buy, you change the world.

That insight is at the centre of my economic outlook.

Now I know there are sometimes frustrations and frictions. We won’t always completely agree or go as far as you would like.

But you must never, ever doubt that I and the government on your side.

You asked for more generous capital allowances.

So we introduced the biggest two-year business tax cut in modern British history: the super deduction.

You asked for more flexibility over apprenticeships.

We’re delivering, with lots of improvements including new flexible training models.

You asked us to cut business rates.

We’re providing a discount of 50% for shops, restaurants, gyms; any business in retail, hospitality, or leisure.

Of course, there’s more to do.

But I do want to take this moment to celebrate the partnership between this Government and all of you.

This is very personal for me.

I remember my very early days as Chancellor.

Sitting at my desk in the Treasury in those first few days and weeks, reading the daily Covid case numbers by the light of my desk lamp.

I was feeling an almost overwhelming sense of responsibility.

It was a privilege and a relief to be able to call people like Carolyn and Rain at the CBI for advice.

Just as it is a privilege and a relief now to be able to call on Tony.

Under yours and Karan’s leadership the CBI continues to be what it has always been: a vital role and voice in our public life.

Please join me in thanking them for their extraordinary contribution.

Rarely has your leadership been needed more than now.

I hardly need to tell this audience that the economic situation is extremely serious.

A perfect storm of global supply shocks is rolling through our economy simultaneously.

Global demand – shifting last year from services to goods and exacerbating supply chain bottlenecks.

Russia’s invasion of Ukraine – causing energy and commodity prices to spike severely.

And now a fresh wave of lockdowns in China – disrupting industrial production and adding to widespread backlogs in freight and in shipping.

Now while these are global forces, they are hitting families and businesses here at home.

Just this morning figures show that in April, CPI was 9%.

The Bank of England now expect inflation to peak at 10% later this year.

And those inflationary pressures are starting to weigh on growth.

Let me set out the way through this. Let me tell you the plan.

A plan to help people with the cost of living. And a plan for growth.

First, our plan to help with the cost of living.

It is the Bank of England’s role to control inflation. And they are rightly independent.

Over the quarter century since we took monetary policy out of the hands of politicians, inflation has averaged precisely 2%.

And I know the Governor and his team are completely focused on getting inflation back to target.

Our role in government is to help cut costs for families.

I cannot pretend this will be easy.

As I told the House of Commons yesterday:

There is no measure that any government could take, no law we could pass, that can make these global forces disappear overnight.

The next few months will be tough.

But where we can act, we will.

We are providing £22 billion of direct support.

With fuel duty – cut by 5p a litre.

Council tax – cut by £150.

The Warm Homes Discount – increased to £150.

We’re making work pay by increasing the National Living Wage and cutting the Universal Taper rate.

And in just a few weeks’ time, we’ll increase the National Insurance threshold to £12,500 – a £6billion tax cut for 30 million working people.

Because tackling high inflation is not just an economic necessity.

It is a social and moral necessity.

Those who suffer most are not the wealthiest, who can find ways to protect themselves.

It is always the poor.

Our policy to date has focused on supporting people in work and I make no apology for that.

There is nobility in work. It is the best way out of poverty.

And I’m proud that under this government, it always pays to work.

But right now, we also have a collective responsibility to help the most vulnerable in our society.

And so, as the situation evolves our response will evolve.

I have always been clear, we stand ready to do more.

At the same time, we need to be careful.

As Tony rightly warned us this week, at a time of severe supply restrictions, an unconstrained fiscal stimulus does risk making the problem worse.

By pushing up prices still further.

Embedding high inflation expectations.

And creating a vicious cycle of even higher interest rates and more pain for tens of millions of mortgage holders and small businesses.

So even as we protect people from the worst of the crisis, we must continue to be responsible with the public finances and get borrowing sustainably under control and debt falling.

So our plan will deal with the immediate impacts of inflation.

Cutting costs for families. Cutting the deficit.

And we are also growing the economy.

Over the long-term, higher productivity is the only way to raise living standards.

To do that, we will build on our enduring strengths.

In the UK, our children are some of the best educated in the world.

Our incredible universities produce the third highest number of publications worldwide and we have the second most Nobel Laureates of any nation.

Our artists, musicians, game designers, and filmmakers are creating work that is defining our era.

Our economy has decarbonised quicker than anyone else over the last twenty years.

Our deep and liquid capital markets finance the world’s commerce.

Our start-ups attract more venture capital than France and Germany combined.

Our language is the international language of business.

Our agile and flexible regulation is the model for others.

I could go on and on.

But we need to be honest.

We also need to overcome our longstanding weaknesses in investment, skills, and innovation.

Even in the decade before the global financial crisis, capital investment had weakened.

Research from the Resolution Foundation and the LSE shows that lower capital per hour worked explains around half our productivity gap with France and Germany.

On skills, our school and university performance has improved dramatically.

But four in five of our 2030 workforce are already in work.

So if we want to raise productivity in this country we need to do more to support those already in work.

And, since the financial crisis, the rate of increase in innovation has slowed considerably.

A weakness that explains almost our entire productivity gap with the United States.

So why is this happening? The problem I don’t believe is any longer the government.

Public sector net investment is reaching its highest sustained level since the 1970s.

Yet capital investment by UK businesses, as a % of GDP, is a lot lower than the OECD average.

Government funding for post-16 education is increasing, the Prime Minister has announced a lifelong learning entitlement, alongside a plethora of new skills initiatives like Skills Bootcamps and T levels.

But UK employers spend just half the European average training their employees.

And over this Parliament, we in government are delivering our pledge to increase public investment in research and development by 50% to £20 billion per year.

But businesses investment in R&D, as a % of GDP, is less than half the OECD average.

In other words, further government action can only take us so far. We need you.

The wealth creators. The entrepreneurs. The leaders.

We need you to invest more, train more, and innovate more.

And as I’ve said previously, our firm plan is to reduce and reform your taxes to encourage you to do all those things.

That is the path to higher productivity, higher living standards, and a more prosperous and secure future.

One of the biggest debates in economics right now is about whether the world is facing a great slowing down.

Will we ever see again the kind of transformation that came from the introduction of railways to transport people and goods and ideas;

Cables and pylons to carry electricity into factories and homes;

Machines that freed people from backbreaking labour?

It is easy to look at the challenges we face now and feel disheartened.

But I am not. I believe our most exciting companies are still to be founded.

Our most talented people are still to be taught.

Our best ideas are still to be discovered.

Our best days lie ahead.

Government alone cannot get us there.

It will take all of us, together.

But we can get there. So let’s get to work.