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your passions, and the way you bring people together. life well planned. announcer: funding was also provided by, the freeman foundation. and by judy and peter blum kovler foundation, pursuing solutions for america's neglected needs. announcer: and now, "bbc news" 'r and this is "the context." 'r >> hezbollah fight here, and a rainy missile that took the lives of 12 pure souls. 12 children who were playing soccer here in partially could not -- unfortunately could not make it to the bomb shelter. >> he's an unwelcome person in our place. continues to use the bodies of our children to be on tv.

we will not allow this to happen. >> is going to be a big war, and they know that. and i don't think they want to do it. >> to use these still available possibilities to leave lebanon should urgently do so now. ♪ christian: more on the tensions in the middle east to come, but part the -- first the latest bbc headlines. two children had died and nine others were injured in a knife attack in southport. police say six children and two adults who were injured or are in critical condition. a 17-year-old boy has been arrested on suspicion of murder. the chancellor says she's cutting -- cutting two major

road projects and reviewing plans to build forging new hospitals. she's also cut the winter fuel payments for nearly 10 million pensioners. she told parliament she's dealing with a massive shortfall in funds the labor government inherited. the former bbc news center hugh edwards has been charged with three counts of making indecent images of children. in a statement, the metropolitan police said the offenses which are alleged to have taken place between december 2020 and april 2022 relate to images shared on a whatsapp chat. mr. edwards will appear in court on wednesday. let's begin with tensions mounting on the israel-lebanon border. there's no real concern that things could be heading toward all-out war as both sides, wrap up rhetoric. last night after a meeting of the security cabinet, benjamin netanyahu warned there would be

a response to that attack on a northern village that killed 12 children. it's one of four towns in the call on heights at his home to around 25,000 members of the arabic speaking community. golan heights was captured during the 1967 war and later annexed in 1981. hezbollah has denied carrying out the attack. our correspondent has the latest from jerusalem. >> there is pressure on israel to respond, both from members of the coalition government here but also from israelis at the border, wanting to neutralize the threat from hezbollah once and for all. but also there is an awareness of just how serious the situation is and indications report in some media outlets that israel intends to respond, perhaps falling short of leading the region into all-out war.

there has been a flurry of international activity and diplomatic pressure both on israel and lebanon, messages from washington, paris, london, and elsewhere warning the actors to be measured in their response. the iranian present has warned israel now that it would make a great mistake with heavy consequences if it launched into a significant military incursion into lebanon. so we wait to see the nature of the israeli response. the israeli security cabinet has passed a resolution allowing the defense prime minister to make response to choose the timing and nature of that response. we wait to see exactly what shape that will take. christian: there is reporting from the associated press today response to these words coming from jerusalem, hezbollah has begun moving its arsenal of guided missiles in an area of southern lebanon they control. let me show you the map to give

you 90 what we're talking about. their largely three areas of lebanon where hezbollah has free reign. south beirut which is home largely to the shieh population, an area to the south of the river where a lot of the fighting in 2006 2 lace and to the east, a valley. hezbollah is supposed to be north of that river. the reality has always been quite different. i remember covering that war in 2006. the israelis were at times undone by a very complex network of tunnels in the south, similar to what we see in gaza, which means the fighting would take an extreme toll on both sides. with us tonight is a richard dalton, the former u.k. ambassador, good to have you on the program. as mark says, neither side really wants is conflict, but the risk has always been that hezbollah and overreach. and here it has come to pass.

what risks do you see here and how serious is it? >> i think there's a 50-50 chance of a major war. israel has shown in its response to iran earlier in the year it is able to send its political message through military means to a country it regards as an aggressor, with some subtlety, it would limited military force. and it is to be hoped that that is the sort of strategy which israel is going to adopt this time. if it doesn't, and if it goes into lebanon and engages in an attempt to severely degrade and stroy a high proportion of hezbollah's capabilities, then all bets are off and iran might be tempted to come to the assistance of its ally, and we might find a very severe rain of missiles on many, many targets

side israel. christian: and we've been there for, some of us can think back to the proxy war tt was fought in lebanon that brought in syria, iran and outside parties, the united stes. we really don't want to go back to that and it could be a regional war of the kind we've not seen inhe region for many, many years. >> yes, that's right. israel has promised a severe response, and i believe that is what they will deliver. and then it will be for hezbollah to decide whether it retaliates to israel's retaliation or not. all parties wish to avoid a war, i think that has become a cliche, but it's nonetheless true for that, because of the incalculable consequences. the united states, for example, is on record as saying it

believes that israel's air defenses could be overwhelmed by a massive hezbollah response. and we know from the difficulties which israel has had in gaza that what looks to the suffering people of northern israel like an easy thing to do, to eliminate once and for all the threat from hezbollah, it is in fact incredibly difficult and likely to fail. christian: as was proven in 2006, i think, at certain points in that conflict. one thing that will go a long way to taking the temperature down to be to find a cease-fire in gaza. but i'm bound to ask tonight, sir richard, who is it that really wants a cease-firin gaza? hamas is still digging in, prime minister netanyahu doesn't seem very keen on the cease-fire terms, and of course the

iranians certainly are keen on prolonging the conflict. so do you see any chance for the cease-fire talks that are going on in qatar? >> i tnk iran is a bystander in that respect, not a key motivator of what hamas does. hamas and israel have been locked in these talks for weeks now and we know little or nothing about the details, but we do know that some israeli commentators, both inside and outside the country, are very concerned that israel appears to be adding yet more stringent requirements on hamas, once the talks appear to be getting close to a resolution. but connecting lebanon once more to gaza, and you are right that ending the war in gaza is the best way of stabilizing the northern border of israel, but

we've heard the u.s. secretary of state, mr. blinken, saying that he is working hard on a diplomatic solution that would end the threat to northern israel once and for all. and we don't know what he means, because those talks are rightly being kept secret. but if indeed he's got something up his sleeve, it's very much to be welcomed and supported and everybody who have people whose lives are at risk from an escalating conflict will be wishing him success. christian: sir richard, grateful for your time as ever this evening. thank you for coming on the program. we will take a short rate, around the world and across the u.k., you are watching bbc news. for those still with us, let's talk about the news of former bbc presenter hugh edwards who's been charged with three counts

of making indecent images of children. a statement said those events relate to images shared on whatsapp. >> hugh edrds was arrested in november 2023 and charged on the 26th of june of this year on three counts of making indecent images of children. it is claimed a series of 31 photographs were found in a whatsapp chat on a mobile phone, a conviction of position for category a image could lead to a prison sentence of three years. huw edwards did resign from the bbc in april of this year, but the bbc's highest-paid presenter had not been on air since july of last year. christian: here in the u.k., two children have been killed in

what police called a ferocious stabbing at a dance clouse and southport -- in a dance class. nine more were injured and six are in critical condition. two adults were also being treated. police responded to a major incident around lunchtime. police detained a 17-year-old man and seized a knife. theyaid there is no wider threat to the public and in the last hour we have this update from merseyside police. >> a 17-year-old male from banks in lancashire has been arrested on suspicion of murder and attempted murder. he has been taken to a police station where he will be interviewed by detectives. my offices were called to reports of a stabbing at 11:47 this morning and southport. when they arrived, they were shocked to find that multiple people, many of whom are children, had been subjected to a ferocious attack and serious

injuries. it is understood that the children were attending a taylor swift event at a devon school when the offender, armed with a knife, walked into the premises and started to attack inside children. we believe that the adults who were injured were bravely trying to protect the children who were being attacked. as a mom and a nana, i can't believe -- begin to imagine the pain-and-suffering of the families that at this time and i wish to send my heartfelt condolences to them. christian: a statement from merseyside police a short time ago. the prime minister has also been responding. >> the events today are just truly awful, and i know the whole country is deeply shocked at what they've seen and heard. i know i speak for everybody in the whole country in saying our thoughts and condolences for the

victims and their families, their friends and the wider community. it's almost impossible to imagine the grief that they are going through in the trauma they are going through. i do want to thank the emergency services and merseyside police who have had to respond to the most difficult of circumstances today. christian: plea to more detail on that shocking stabbing attack this lunchtime on the bbc news website. 3.5 weeks into her new role, it was a pretty hefty statement we got from the chancellor this afternoon, the first actual budget will be in october on the 30th if you're marking your calendar. today statement went a long way to preparing the ground. no surprise given the pre-briefing but the blame was put squarely in the door of her predecessor. she questioned the behavior and even the integrity of the former governor who she said had committed to a huge overspend

this year which they had concealed she said from the office for budget responsibility. jeremy hunt and response had her attack was political and fooling no one. our political editor, chris mason, was watching. >> the words are the arguments of the past, the backdrop of the arguments of today. rachel reeves and her desk at 11 downing street this lunchtime, the first woman ever to be chancellor of the exchequer, and so, have the keys to this place. >> a call the chancellor of the exchequer, rachel reeves. >> the previous government let people down. mr. speaker, the previous government made commitment after commitment without knowing whether money would come to them. they did this repeatedly, knowingly, and deliberately. so today i'm 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. >> it is the right decision for those who work in and use the public services. >> the government just did a deal to give junior doctors in england pay rise of an average 22% over two years. >> today marks the start of a new relationship between the government and starting work on our national health service, and the whole country will welcome that. >> next, around 10 million older people will lose their winter fuel payments and only poorer pensioners will get it. >> today making the difficult decision that they will no longer receive the windsor bill payment from this your onward. >> a plan to cap the amount people in england pay for social care has been canceled two

shouts of outrages from opposition mps. rachel reeves plans for a road to stonehenge and wilshire and also canceled -- >> restoring our railway program, saving 85 moving pounds next year with individual projects to be assessed through review. if we cannot afford it, we cannot do it. >> the man who used to do her job sitting opposite, quietly seething. jeremy hunt claimed the chancellor had made up big mistake. >> that depends on having trust. 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 government, she is laying the grounds to break her word. >> and there was this from the local democrats. >> will the chancellor agree with me that it would be unfair to ask working people to pick up the tab the second time after they've already suffered through years of painful tax rises? >> and that is where the argument goes next. each reeves insists the main rates won't change. as for other taxes, it does look like some of them will go up when the chancellor stance on these steps on budget day in october. chris mason, bbc news, westminster. christian: as chris laid out, filling a 22 million pound black hole take some doing, especially when borrowing is already high and the interest payments are taking a big chunk out of government spending. with an assessment on the statement and the cuts announced

, here's our economics editor. >> this was an unusual document published today, which is pointing a finger of blame at a previous gernment and part mapping out the future, as we been hearing there is a list of unfunded spending pressures, including the cost of railways, leaving a short fall of 22 billion pounds this year, all not fully accounted for since the new counts -- the new chancellor. suggesting it could be one of the largest overspend's really the single biggest line item in this is public sector pay settlements. those have all now been agreed by this government which accepted all the recommendations of independence. this is higher than the rate of inflation back in april of 2.3%.

so that is above inflation, the real pay rise. it had been suggested by previous government that it would raise inflation. the new government says it won't be inflationary because the average of earnings across the economy, the first quarter at 6%. so the pay rise for 2.5 million workers after many years of squeezes, it cost over 9 billion pounds and it doesn't include the junior doctor settlement we been hearing about. the government thinks the public one stability. the new chancellor wants to start to bridge the gap on spending immediately. that means cuts to some major plans. departmental savings of 3 billion pounds to find those public sector pay settlements, one point 4 billion taken away from 7 billion households and saves a hundred million pounds. so there is still a gap to fill

of about 16 billion pounds and while the chancellor recommitted to her election promise not to raise the main tax rates, it's likely some revenue from other taxes will be revised in the budget. in the heart of the blackhole alleged in these documents is whether or not this new government had any real choice of are accepting t results of pay reviews launch on the last government. it could've rejected them but only at the cost of significant strife and already under pressure public services. christian: we will come back to that financial statement in a second. we want to read you a response from king charles in relation to that stabbing today that we just reported on. his majesty says my wife and i have been profoundly shocked to hear of the utterly horrific incident in southport today. we send our most heartfelt condolences, prayers, and deepest sympathies to the

families and loved ones of those who have so tragically lost their lives, and to all those affected by this truly appalling attack. that statement coming from the palace and just the last few minutes. we were talking before that about the financial statement from rachel reeves today. let's get more from the program director of the national institute for government, nick davis. thank you for your patience. trying to understand the disparity in the figures. is there discretionary spending for a government that would not be included in a no vr assessnt ahead of an election? >> i think this is one of the big questions. that was ritual reeves charge that the previous conservative government had not been completely honest and upfront, that was something the shadow chancellor jeremy hunt rejected, but the oh vr has launched a

review of the information was provided in the spring ahead of the budget and is going to report in october. but it certainlyoes seem there was a fairly chunky line items that we didn't previously know about. christian: she says they were already spending money this year that they have no ability to pay for which they hid from the country, they had exhausted the reserve and they knew it. but how much detail of that with the permanent secretary to the treasury no? as jeremy hunt said today, she was granted access to the secretary ahead of the election. >> i think there's a question of what the secretary new, which i suspect the review will find out, but that is not necessarily what labor would've been told with the permit secretary would've been told. in general, the civil service is very mh in listening mode. it is there to find out about

the potentially incoming governments plans so that they can be prepared. and in fact unless the treasury secretary have been given approval by jeremy hunt when he was chancellor to provide that information to rachel reeves, it would not of been passed on. likewise treasury civil servants would not have passed on information if they had not given permission by the then chancellor. christian: what has she announced today that would improve future transparency? >> she has made a number of changes to the spending framework. in particular, she has said that the ovi are will have greater ability to scrutinize how realistic government spending plans are, that we need to see a bit more detail onhat. she also said that they're going to legislate so that we have a

multiyear spending review, where government decides broadly how much is going to spend r the coming years and will have those once every two years, happening in the spring, and that we setting a three year going forward. and that is very, very welcome. in recent years, sometimes unavoidably for example because of the pandemic, but spinning decisions have been made on an annual basis which made six that much harder to plan and we get much less bang for the buck at the moment. christian: we will have to leave it there, thank you very much indeed for your time. we will dig a little deeper into what we've heard from rachel reeves today. were going to take a short rate. the other side of the break, we will talk olympics and check-in to paris, quite a good day today for the great reddish team, two

golds. were finally moving up the table, great britain. we are ahead of cause extend, which was my sort of benchmark. anyway, we will talk about that after the break. this.ll be right back after stay with us. announcer: funding for presentation of this program is provided by... financial services firm, raymond james. announcer: funding was also provided by, the freeman foundation. and by judy and peter blum kovler foundation, pursuing solutions for america's neglected needs. ♪ ♪ ♪ ♪ announcer: "usa today" calls it, "arguably thbest bargain in streaming." that's because the free pbs app lets you watch the best of pbs anytime, anywhere.

♪ ♪ ♪ ♪ announcer: funding for presentation of this program is provided by... woman: a successful business owner sells his company and restores his father's historic jazz club with his son. a raymond james financial advisor get to know you,