we'll have the latest as the king and the prime minister are among those to offer their condolences to the families involved. also tonight — the chancellor says there is a huge black hole in the finances inherited from the conservatives, and so millions of pensioners will lose their winter fuel payments. but rachel reeves is offering junior doctors in england a 22% pay rise over two years — plus an above—inflation offer for teachers. chris mason and faisal islam will be here to see if the sums add up. the former bbc news presenter huw edwards is charged with three counts of making indecent images of children. and going for gold — team gb's tom pidcock wins a fierce contest in the mountain biking — and the equestrian team come top to retain their eventing title. and stay with us here on bbc news

for continuing coverage and analysis from our team of correspondents in the uk and around the world. good evening from southport, where there is shock and grief tonight. two children are dead and nine other children injured — six critically — following what police describe as a "ferocious" knife attack. it happened shortly before midday at a taylor swift—themed summer holiday dance class.

it was for primary school age children. two adults are also in a critical condition after being injured during the incident — police say they tried to protect the children. tonight, a 17—year—old male suspect is in custody. police say the motive remains unclear and are not treating it as a terrorist incident "at this moment in time". let's explain some of what we know. the dance class had been taking place on hart street, a quiet residential area in the seaside town of southport, when the attack happened. that was at 11.50. the injured were taken to a number of hospitals, including alder hey children's hospital in liverpool and a number of local units. tonight, king charles sent his "most heartfelt condolences" to the families of those caught up in the attack, while the prime minister said "the whole country is deeply shocked". judith moritz has tonight's first report, and you may find some of the details upsetting.

a sunny day in the school holidays, and children who had been dancing moments earlier are lying on the street. where there had been in music, there was now the sound of screaming. paramedics and police raced to them, local people too, including an off duty nurse. i checked on my girls and ijust ran to the crowd because you put your nhs head on, don't you? and the mother there, nhs head on, don't you? and the motherthere, i nhs head on, don't you? and the mother there, i was consoling, the look on her face, mother there, i was consoling, the look on herface, because mother there, i was consoling, the look on her face, because she mother there, i was consoling, the look on herface, because she knew something had happened to her child. it was like, oh, my gosh, how do you even comprehend? there's nothing you can do. the even comprehend? there's nothing you can do. . ., . ., can do. the children were dancing to ta [or can do. the children were dancing to taylor swift — can do. the children were dancing to taylor swift when _ can do. the children were dancing to taylor swift when a _ can do. the children were dancing to taylor swift when a man _ can do. the children were dancing to taylor swift when a man with - can do. the children were dancing to taylor swift when a man with a - can do. the children were dancing to taylor swift when a man with a knife j taylor swift when a man with a knife walked into the room. people working nearby heard the sounds of their distress. it nearby heard the sounds of their distress. . , ~ nearby heard the sounds of their distress. ., , ~ ., ,., , nearby heard the sounds of their distress. ~ ., , ., distress. it was like a bomb had one off,

distress. it was like a bomb had gone off. girls' _ distress. it was like a bomb had gone off, girls' bodies _ distress. it was like a bomb had gone off, girls' bodies all- distress. it was like a bomb had gone off, girls' bodies all over l distress. it was like a bomb had l gone off, girls' bodies all over the place _ gone off, girls' bodies all over the place me — gone off, girls' bodies all over the place. me and one of my colleagues who worked with me, james, he brought— who worked with me, james, he brought one of the girls out of the building — brought one of the girls out of the building. she didn't look good at all, building. she didn't look good at all. poor— building. she didn't look good at all, poor kid. the building. she didn't look good at all. poor kid-— building. she didn't look good at all, poor kid. the dance class had 'ust been all, poor kid. the dance class had just been about _ all, poor kid. the dance class had just been about to _ all, poor kid. the dance class had just been about to end. _ all, poor kid. the dance class had just been about to end. there - all, poor kid. the dance class had just been about to end. there are all, poor kid. the dance class had i just been about to end. there are a few parents — just been about to end. there are a few parents around. _ just been about to end. there are a few parents around. i _ just been about to end. there are a few parents around. i have - just been about to end. there are a few parents around. i have heard . few parents around. i have heard wailing _ few parents around. i have heard wailing and — few parents around. i have heard wailing and screaming pretty much all afternoon of parents coming laler— all afternoon of parents coming later to — all afternoon of parents coming later to pick kids up and only really— later to pick kids up and only really finding out what has gone on. 13 people _ really finding out what has gone on. 13 people were stabbed altogether, including 11 children. they were taken to hospitals all over the region, some by air. many are critical. two children have been killed and details are still emerging about exactly what happened in the room. it is emerging about exactly what happened in the room. , , ., ., ., in the room. it is understood that the children _ in the room. it is understood that the children were _ in the room. it is understood that the children were attending - in the room. it is understood that the children were attending a - in the room. it is understood that i the children were attending a taylor swift event at a dance school where the offender, armed with a knife, walked into the premises and starting to attack inside, the

children. we believe the adults who were injured were bravely trying to protect the children who were being attacked. as a mum and a nana, i can't begin to imagine the pain and suffering the families of the victims are going through at this moment in time and i wish to send my heartfelt condolences to them. roads runnina heartfelt condolences to them. roads running the scene _ heartfelt condolences to them. roads running the scene were _ heartfelt condolences to them. roads running the scene were closed - heartfelt condolences to them. roads running the scene were closed off and this afternoon, the police arrested a teenager at a house in a village three miles north of southport, and seized a knife. a 17—year—old was born in cardiff and is now being questioned by detectives. condolences have been offered by the king and the prime minister. the offered by the king and the prime minister. , ., ., , minister. the events today are 'ust truly awful. — minister. the events today are 'ust truly awful. and i minister. the events today are 'ust truly awful, and i i minister. the events today are 'ust truly awful, and i know i minister. the events today are 'ust truly awful, and i know the i minister. the events today are just truly awful, and i know the whole i truly awful, and i know the whole country is deeply shocked at what they have seen and what they have heard. i knowi they have seen and what they have heard. i know i speakfor they have seen and what they have heard. i know i speak for everybody and the whole country in saying our thoughts and condolences are with

the victims, their families, thoughts and condolences are with the victims, theirfamilies, their friends and the wider community. it's almost impossible to imagine the grief that they are going through and the trauma they are going through. this through and the trauma they are going through-— through and the trauma they are going through. this is an area full of families. _ going through. this is an area full of families, and _ going through. this is an area full of families, and everyone - going through. this is an area full of families, and everyone either l of families, and everyone either know someone affected or knows of children who could have been there instead. ., ., �* ., ., instead. you don't even hear about this kind of — instead. you don't even hear about this kind of stuff _ instead. you don't even hear about this kind of stuff on _ instead. you don't even hear about this kind of stuff on netflix. - instead. you don't even hear about this kind of stuff on netflix. this i this kind of stuff on netflix. this is, like. — this kind of stuff on netflix. this is, like, the worst thing you can ever_ is, like, the worst thing you can ever imagine. my daughter was there on saturday. our friends' kids were here and _ on saturday. our friends' kids were here and i— on saturday. our friends' kids were here and i have just got slain, massacred. | here and i have 'ust got slain, massacred.— here and i have 'ust got slain, massacred. i have been in this community — massacred. i have been in this community for— massacred. i have been in this community for many _ massacred. i have been in this community for many years, i massacred. i have been in this. community for many years, and massacred. i have been in this i community for many years, and i would say i have heard of maybe one or two stabbings, but nothing of this nature. so it's worrying. southport is a happy holiday resort which always shows its best side in summer. not today. this has been the darkest of days, and unspeakable

horror has happened here instead. judith moritz, bbc news, southport. in a few moments, we'll hear from our home affairs correspondent daniel sandford about how unsual this type of attack is and what, if anything, could be done to prevent it. but first, we'll hear from elaine dunkley, who is at alder hey children's hospital in liverpool, where some of those injured are being treated. what's the latest from there? well, what emergency — what's the latest from there? well, what emergency services _ what's the latest from there? well, what emergency services saw, - what's the latest from there? h what emergency services saw, heard and dealt with today has been truly grim. this hospital declared a major incident, and this happened in the most serious of cases where there is a high number of potential casualties and trauma. i3 ambulances went to the scene and the air ambulance brought children to this hospital. in tragedies such as this, it's important forfamilies hospital. in tragedies such as this, it's important for families to cling to hope, and what i can say is that alder hey hospital is world—renowned as a specialist paediatric centre and the children here will be getting their very best care they

can possibly get. the major incident status has now been lifted and there have been a number of hospitals in this area that have been involved today including manchester children's hospital. today the prime minister paid tribute to emergency services, and that incredible professionalism continues tonight as they try to save the lives of six children and two adults who are in critical condition. elaine, thank you. and to daniel at the home office. an attack like this involving so many young children is very rare. what people around here have been asking is what, if anything, could be done to prevent it? , , , ., , ., it? yes, there is statements from the kin: , it? yes, there is statements from the king. from — it? yes, there is statements from the king, from the _ it? yes, there is statements from the king, from the prime - it? yes, there is statements from | the king, from the prime minister, from the home secretary less than four weeks into the job, from the home secretary less than four weeks into thejob, were illustrative of how rare these kind of events are and how deeply shocking this one was. itjust doesn't happen that primary aged

children get attacked in any kind a regular basis. some viewers will remember the dunblane primary school massacre in 1996, when thomas hamilton killed 16 pupils and their teacher. and there was across the manchester arena bombing of 2017, in which eight—year—old saffie roussos was killed. but these events are exceptionally rare. most often, when a child is ended in an attack of this age, it is as a victim of their parents in their own home. today, all the major hospitals in the area had to declare a major incident because of the sheer number of children they were having to treat from this attack. so how can we protect people from these attacks? well we know that primary schools, for example, have locked gates. they have locked doors through much of the school day. we know that concert venues have changed how they do security since the manchester arena attack. but how does a small dance class at the beginning of the summer holidays protect itself? how do

other summer camps protect themselves? that is something that organisers are going to have to get to terms with quickly, and something the new home secretary will have to take the lead on. the other big question is why. why did someone attacked a taylor swift inspired dance class at the beginning of the summer holidays? how did they even know this event was going on? that is a question the police need to answer urgently.— is a question the police need to answer urgently. daniel sandford, thank you- — answer urgently. daniel sandford, thank you. those _ answer urgently. daniel sandford, thank you. those are _ answer urgently. daniel sandford, thank you. those are questions i answer urgently. daniel sandford, i thank you. those are questions being asked on the streets right now. judith moritz has spent all afternoon and evening here. judith, you said in your report that it's hard to believe. a seaside town, a sunny day and there is just silence tonight. sunny day and there is 'ust silence toniaht. . . , sunny day and there is 'ust silence toniaht. . ., , , sunny day and there is 'ust silence toniaht. . . , , ., tonight. yeah, any community would be reelin: tonight. yeah, any community would be reeling from _ tonight. yeah, any community would be reeling from this. _ tonight. yeah, any community would be reeling from this. there - tonight. yeah, any community would be reeling from this. there is - tonight. yeah, any community would be reeling from this. there is an i be reeling from this. there is an added dimension here. this is southport. this is not an inner—city area known for knife crime. it is not a dysfunctional kind of place. it's a place you come for a happy life. as a place you come to bring up

life. as a place you come to bring up your kids by the seaside. that is what they are saying to me here. why here, why our children? our children dancing to taylor swift like everyone else's kids these days, having a great time. how has it happened to them? and it's the sound of the day which has brought it home to me. they were dancing to that music this morning. thatjoy was replaced by the sounds of their distress and their screams. and tonight, what do we have left? it's silent. �* , ., �* , silent. it's painful and it's eerie was dubbed — silent. it's painful and it's eerie was dubbed judith, _ silent. it's painful and it's eerie was dubbed judith, thank i silent. it's painful and it's eerie was dubbed judith, thank you l silent. it's painful and it's eerie i was dubbed judith, thank you for that update. there will be more on bbc breakfast tomorrow morning. and if you've been affected by the distressing details of this story, you can find a list of organisations offering support at bbc.co.uk/actionline. for now, back to you. less than four weeks into her new job, the chancellor rachel reeves has set out her priorities in a major statement to mps.

an inflation—busting offer has been made tojunior doctors in england to settle their long—running pay dispute. but rachel reeves said immediate cuts were required to plug a £22 billion gap in the public finances, which she said had been "covered up" by the conservatives. winter fuel payments will no longer be given to all pensioners — instead, they'll go only to those receiving pension credits or other means—tested benefits. a planned cap on the costs that older and disabled people pay towards social care has been scrapped. the reform had already been delayed by the conservatives. some proposed road and railway improvements will now not happen. and government departments will be asked to make combined savings of £3 billion. ms reeves also announced pay deals across the public sector for teachers, the armed forces, police, prison staff and other nhs workers. here's our political editor chris mason. the words of the arguments of the past, the backdrop

to the arguments of today. rachel reeves at her desk in 11 downing street this lunchtime, the first woman ever to be chancellor of the exchequer and so have the keys to this place. i call the chancellor of the exchequer, rachel reeves. her big—picture argument sounded like this. the previous government let people down. hear, hear! mr speaker, the previous government made commitment after commitment without knowing where the money was going to come from. today, i am calling out the conservatives' cover—up. she said she would accept in full the pay rises recommended by the independent pay review bodies for public sector workers. that is the right decision for the people who work in — and most importantly, the people who use — our public services. she hopes it'll mean no more strikes. and talking of which, the government has done a deal to givejunior doctors in england a pay rise worth on average 22% over two years. today marks the start of a new relationship

between the government and staff working in our national health service, and the whole country will welcome that. next, millions will lose their winter fuel payment. today, i am making the difficult decision that those not in receipt of pension credit or certain other means—tested benefits will no longer receive the winter fuel payment from this year onwards. and rachel reeves binned plans for a bypass in arundel in west sussex, a road tunnel near stonehenge in wiltshire and also cancelled... the restoring our railway programme. if we cannot afford it, we cannot do it. sitting opposite, quietly seething, the man who used to do herjob. jeremy hunt claimed the chancellor had made a big mistake. that great office of state depends more than any on trust. yet in her first big moment, she breaks that trust

with an utterly bogus attempt to hoodwink the public about the choices she has. over 50 times in the election, they told us they had no plans to raise taxes. now, in a u—turn that will forever shame this labour government, she is laying the ground to break her word. and the liberal democrats wanted to talk tax too. will the chancellor agree with me that it would be unfair to ask i working people to pick up the tab i a second time after they've already suffered through years of painful tax rises? i "yes", rachel reeves insisted, which left me wanting to ask a simple question. can you be straight with people tonight and say that you will be putting up taxes for some in the autumn? i don't want to increase taxes on working people and our commitment not to increase national insurance, income tax or vat, we stand by those commitments. there will be more difficult decisions around spending, around welfare and around tax at the budget and the spending review

later this year. i think it's important to be honest with people. people have been misled for too long. in other words, yes, some taxes are going up soon. the new resident here is cracking on with big, sometimes controversial plans. labour and the conservatives are questioning each other�*s openness and honesty, and the political argument now revolves around who you choose to believe. chris mason, bbc news at westminster. as you heard, junior doctors in england are to be offered a pay increase of around 22% over two years. our health editor hugh pym joins me from central london. this is in the hope of resolving a long—standing pay dispute. will it work? well, yes, that is the hope, because talks only began in earnest at the start of last week and a deal appeared to have been done by the

end of the week, and the british medical association, thejunior doctors union, said they will recommend it to members, so it's up to members as to whether they accept it. first of all, there will be an extra 4% added to last year's pay award of up to around 9% on average. the conservative government did float the idea of an extra 3% last year but that got nowhere because talks broke up. for this financial year, there will be up to around 9% on average forjunior doctors in england, based on the pay review body recommendations. the hope is there won't be any further strikes. nhs england have said the total cost. rocks were health unions in england since 2022 to the start of this year has been £1.5 billion. other health unions are watching closely. they are getting 5.5%. that's been put out there today for this year on top of 5% last year, a lot less thanjunior

this year on top of 5% last year, a lot less than junior doctors. they have taken note and say they will consult members and, in the case of the royal college of nursing, they say they don't begrudge the doctors their pay rise but they expect the same fair treatment, so we have to wait and see what reaction they come up wait and see what reaction they come up with in the days and weeks ahead. so, what is the situation as regards the public finances, and how serious is it? our economics editor, faisal islam, is here. so, this was an unusual document published today which is part pointing a finger of blame at the previous government and part mapping out the future of this parliament and, as we've been hearing, there's a list of unfunded spending pressures, including public sector pay, the asylum plans, including rwanda, and railways, leaving a shortfall of £22 billion in this financial year. and the independent forecasters the obr suggest this could be one of the largest overspends outside the pandemic. of those, the single biggest cost is public sector pay settlements,

with nhs workers and teachers getting 5.5% and the armed forces 6% and similar elsewhere. the government accepted all the recommendations of the independent pay review bodies. so, these pay awards are above inflation — a real—terms pay rise — which isn't inherently abnormal. this new government says it won't be inflationary because, look at this, average earnings across the economy in the first quarter were 6%. so a pay rise for two million public sector workers, with an annual price tag of over £9 billion, not including the junior doctors settlement, but this government basically argues it had no choice — the public expects stability in the nhs and schools and an end to the strikes. the new chancellor wants to start to bridge the gap on spending immediately, so that means cuts to some major plans, unusually falling within this financial year. departmental savings of £3 billion to help pay for those pay rises means testing the winter fuel payment, essentially removing it from 7 million households,

saving £1.11 billion. and ending the rwanda resettlement plan, 800 million. all in, it's a total of £5.5 billion savings. there still will be a gap to fill — £16 billion now. while the chancellor recommitted to her election promise not to raise the main tax rates, it is likely some revenue from other taxes will be required at that budget in october, and then a spending review for all departments next spring. the blame game is one thing. getting the economy to grow while raising taxes and squeezing investment spending will be much trickier. faisal, thank you for that. i've got more i want to ask you, so do come over, but first i'm also joined by chris mason. chris, what is the political message behind rachel reeves's statement to mps? an attempt to dollop a lot of blame on the conservatives, a week after their crushing election defeat, and

then to make herfirst big their crushing election defeat, and then to make her first big set of choices as chancellor, that big public pay settlement in the public sector, the hope that will mean no future strikes, but there might be people watching tonight in the private sector thinking, blimey, that's quite generous. the government because it's in line with the private sector. but then we have the private sector. but then we have the winter fuel payment. yes, there are some very rich payments do little to pensioners who perhaps don't need that money there will be others who might miss out for whom this will be a real concerns that so it will be difficult for the government, and they know it is, why are they doing it now? they are trying to pin the blame on their predecessors, a government never more popular than at the start of their time in government, and that's why they're doing this difficult step now. what are the choices she is making when it comes to public spending? there is something of a paradox, because the chancellor wants to paint herself as tough on things

like winter fuel allowance, cutting some transport projects but, at the same time, if you think about what was decided today, it could be one of the biggest pay rise in history, £9 billion effectively, 2.5 million public sector workers, and so depending whether you think there is choice or whether there was choice on accepting the pay review, that determines whether or not there was a black hole. the government helped tonight by the publication of an office for budget responsibility letter, saying the situation was serious, they were not aware of spending precious until the treasury last week and they are so serious they are going to have a review of they are going to have a review of the information they got from the conservatives in march.— the information they got from the conservatives in march. thank you, both. the former bbc presenter huw edwards has been charged with three counts of making indecent images of children. the 62—year—old resigned from the bbc in april on medical advice, ten months after he was alleged to have paid a teenager thousands of pounds for sexually explicit pictures.

let's go now to our special correspondent, lucy manning. huw edwards was, of course, very well known to our viewers, a former presenter of this programme. what further details have emerged about this? well, people were used to huw edwards presenting the news from the bbc studios behind me but, for the last year, he has been in the headlines and today the metropolitan police confirmed he had been charged with three counts of making indecent images of children, relating to sharing them on whatsapp, and he is accused of making 37 indecent images, six category a, the most extreme images, 12 category b and 19 category c images, between december 2020 and april 2022. we learned today, it's not clear why we are only learning this today, that he

was arrested in november and was charged last month. mr edwards was suspended from the bbc last year when the sun newspaper made allegations he had made payments for explicit photos. there were no criminal offences there and police are clear that these charges are not related to that. he resigned earlier this year but it was revealed that just last week he was still one of the bbc�*s highest paid presenters, with a pay rise even though he had been suspended for most of the year. he will appear at westminster magistrates�* court on wednesday. team gb has won its first gold medals of the paris olympics. the equestrian eventing team were the first to taste success, followed by a remarkable victory by the reigning olympic champion, tom pidcock, in the mountain biking. he had to overcome a puncture to cross the finish line first and claim the second olympic gold of his career, as our sports editor dan roan reports. gold medallist and olympic

champion thomas pidcock! title duly defended, an emotional tom pidcock after a comeback the like of which mountain biking has rarely, if ever, seen before. earlier, the yorkshireman took an early lead, but then came a puncture, suddenly down in ninth and almost a0 seconds off the lead. well, here he comes. tom pidcock, about to complete his fifth lap of this tight and twisty course, but he�*s up against it. that puncture has cost him so much time. can he somehow fight back into contention? to the delight of the home fans, frenchman victor koretzky appeared to be cruising to victory, but the defiant pidcock, who�*d had to quit the tour de france just 16 days ago with covid, was starting to close the gap. by a thrilling final lap, he and koretzky were locked together. but then came the decisive moment. they�*re shoulder to shoulder, and that has taken koretzky out of the pedals. pidcock duly completing one of the sport�*s greatest comebacks.

olympic champion! having snatched the title from the fans favourite, the french crowd booed the winner. but britain�*s first solo gold of these games was secure. i think it�*s just like never give up, so you give everything, and that�*s what i had to do. and with the road race still to come, one of cycling�*s most versatile talents could be set for yet more success. dan roan, bbc news, paris. well, earlier, great britain�*s first gold of the games came in the equestrian team event for laura collett, tom mcewen and ros canter. it�*s a record fifth gold for great britain in the event, as laura scott reports. team gold. jumping forjoy, securing team gb�*s first gold of these games and successfully defending their title from tokyo. to come back and do it again after the last appearance has been incredible, but especially so because of the crowds here. i mean, it has been the most amazing feeling to be able to ride these special horses in front of these people. in a three—day equestrian triathlon, they danced to an olympic record

in dressage before an eventful cross—country day meant they started today�*s showjumping, with the hosts, france, hot on their hooves, ros canter showed thatjust the slightest of touches can be costly. just ran a little close. up next came tom mcewen. under pressure, a perfect, clear, clear round. with great britain still in the lead, it all comes down to this moment. laura collett knows exactly what is riding on this round. laura collett in this most iconic of settings. her horse, london, 52, soared, the final fence fell, but gold was still theirs and over the fence. what a performance! they say make hay while the sun shines. and back came collett to clinch individual bronze. brilliant athleticism. after a damaging week for the perception of equestrian sport, these riders wanted to showcase the stars they were sitting on. those horses wouldn�*t perform if they weren�*t happy horses. what they go through and what they do for us is second to none, and they�*re the real heroes here.

with back—to—back golds, these record—breakers are riding the crest of a wave. laura scott, bbc news in versailles. and now natalie pirks looks at the rest of the medal action. tom daley has peered over this precipice before — the last dive of an olympic final, the reigning champ alongside new partner noah williams on the very edge of a medal. yes, yes! it meant silver, daley�*s fifth medal at his fifth games, but the first watched by his sons, being looked after by his husband while papa, as they call him, went to work. to come back not knowing whether i would make the synchro team, let alone qualify in a spot for the olympics and now to be here in paris diving in front of my son, who is just right there and who actually asked me to come back, is so special. i think we're alljust very emotional, because this has been such an impossible dream. a year and a half ago, robbie here saw this olympic video and tom said, "i think i need to do one more".

motivation is found in different places. for canoeist adam burgess, it�*s drawn from missing the podium by a fraction of a second at the last olympics. it would take more than turbulent water to drag him off course this time. adam burgess cannot believe it! burgess got the silver, and closure. there was a whitewater finish in the pool too, and until the frantic final strokes, british champion matt richards was in the lead. richards is in a great place with ten metres to go! but romania�*s david popovici beat him a by mere fingernail, just two one—hundredths of a second. well, matt richards was the world champion last year. he came here for gold and it was agonisingly close, but that�*s a silver medal. i can�*t be too disappointed with that. it�*s my first ever individual at an olympic games, so to walk away from that with a silver medal is fantastic. a trio of silvers, then, shining from british stars of the water. natalie pirks, bbc news, paris.

this programme continues on bbc one. accusing the previous tory government of covering up unfunded policies, the chancellor counsels road and rail projects to plug a gap of £22 billion in the public

finances. but can she really blame the tories