if you were asked to take on that role, the concessions that you would demand in order to do that. and it would have to be, you know, your control over economic policy, over personnel, over key committees, whatever the conservative party does, it can't afford to trigger an election. one new polls suggests it has less than 20 percent support. the opposition labor party is rallying its members, whatever they say. now, whatever they do, it boils down to one argument for them. it party 1st country 2nd. that's unforgivable the case with the government. this trust is at the prime minister's country residents for the weekend battling to save her job. jeremy hunt spent most of saturday with his treasury teams working on a formula. he might be able to tame the markets, but may not save the prime minister. andrew simmons al jazeera london.

ah, this is al jazeera. let's get around that. now are the top stories present? she jin pink says, china must ensure hong kong is ruled by what he calls. patriots is opening the twice a decade. communist party congress in beijing. ye, once again warned, he would not rule out using force to bring taiwan under chinese control. she swung boylen suji that should resolving the tie. one question is a matter for the chinese a matter that must be resolved by the chinese. we will continue to strive for a peaceful reification with the greatest sincerity and utmost effort. but we will never promise to renounce the use of force and we reserved the option of taking all measures necessary. this is directed solely. i didn't appearance by outside, horses for russia,

says 11 soldiers have been killed and 15 wooded. it is shooting at its southern border with ukraine. the defense ministry says 2 people open fire at a military training ground in belgrade. hamlet vol. has more from moscow. it's not yet clear whether they are russian soldiers or russian trainees or foreign trainees . because the, the 2 men who opened fire, where i don't, if identified as belonging to one of the countries, the central, the commonwealth of independent nations, including tajikistan, which has been also mentioned by a russian independent website. a russian forces have bond number of some kind in military told edges, either it suspects the russian attacks are to secure air defense points and ammunition depos, but not to advance. iran's government says the fire that broke out at evan prison

into iran on saturday was caused by fighting between security forces and inmates of night. smoke was seen rising from the facility, and gunshot to the detention center holds many political prisoners. spent a 2nd night of violence in the tandem on neighbourhood of tunis consultations between protest. this and security forces been going on since friday after the death of a young man. family says security forces killed him. those, all the headlines were back in half an hour, right. now on al jazeera, it's inside school which side is winning payoff or control? why? what does the new forever war mean for america and nato? as long as americans keep consuming, prices are going to keep going up. why didn't joe biden see inflation comic how the raw, the quizzical look us politics. the bottom line is the u. k. prime minister in trouble this trust sat her chancellor, after only

a few weeks in office and reversed major economic policy and turbulent start, a new government. but in a dire economic crisis, how will trust based her challenges? this is insight. ah hello and welcome to the program. i'm emily angland. case new chancellor says he didn't vote philly's trust and but supports her economic plans. jeremy hunt was appointed on friday after trust sacked, his predecessor kweisi quite ang, just 6 weeks into the jump. his tax cutting a mini budget finance through billions in increased borrowing lead to outrage and protests. the pound immediately fell to its lowest level against the us dollar. the

bank of england was forced to intervene and buy up government bonds to stabilize the economy. and with increasing pressure on the prime minister, these trusted another you turn on friday. she announced corporation tax would rise from 19 percent to 25 percent next april. rather than staying at the current level as promised by quieting in his mini budget. andrew simmons has moved from london. so another chancellor has moved into 11th downing street, jeremy hunt, the force in only a 100 days and a situations that extraordinary in british politics right now with less trust the prime minister, having only served for just over a month, fighting for her political life. why? because she promised what, perhaps she could not deliver simply because the markets don't agree with what's going on. there's no proof that the money can be paid back the money that she wants

to use for tax cuts. and so we've had to you turn so far, but now something much bigger than that because the markets and are waiting on what this new chancellor has to say. he's working the weekend, the treasury offices trying to work out a means of cutting back in many areas and trying to give in some others. but really he's going to overturn the whole of what his trust was promising all along. it's very clear that's going to happen. he did give tacit support in his round of media on saturday morning. but in essence, he was talking about raising taxes and reducing debts where he can, he may actually also make cuts in a whole bunch of allowances and various departments. it is a situation where bile is trust is not really going to get the recognition for any

credibility she may have left. so the conservative government is looking for another leader. there's no doubt about that. the question is, could it lead to a general election? they don't want that, could they just install a caretaker government, a catholic, a prime minister, and basically say las truss good by they could pressure her to go. so right now, a new chancellor who has to convince the markets and a prime minister fighting for survival. andrew simmons inside story and we have reaction from the u. k. labor party later keys down and says, a change of government is needed. and still one person, clicking on the prime minister, no doubt will have plenty of czar football excuses in the coming days of the 12 years of stock nation. that's all her party has left but even vain.

she called fix the mess that she's created. and deep down her m pays know something else. they no longer have a mandate from the british people. ah, let's bring it, i guess they're all joining us from the united kingdom in manchester. ab cell con, alive a member of the british parliament and a former member of the european parliament in london and pet for an economist, and also of the case for the grain, a new deal, and regularly advises governments and from bonus. tobias ellwood, a conservative member of parliament, and share of the u. k. house of commons defense select committee, a warm welcome to each of you. thank you for joining us on the program. i want to start with you to bias simply will leave trust be prime minister this time next week. well is no doubt about the way you frame that question. it's been very

difficult the most difficult summer. i can remember in politics. but this experiment that she put forward to have on cost and tax cuts clearly did not sit well with the markets. it didn't set well with members of parliament and didn't sit well with the public. and she's had to learn the hard way that we need to go back to something a bit more progressive, inclusive. and so i'm pleased that it's, though it's been very, very painful. indeed, we now have a new chancellor. when the platinum probably has a new economic direction, not too soon and my, my opinion, we had a leadership contest which aust, policy membership, the direction of travel. and that's the way they wanted to go. i, i don't believe if we have to replace the prime minister again. we should have to be courting that membership in this way. it should be m p 's to decide the future direction of travel. so we can tease out the portfolios. we can tease out the

parameters in which a new prime minister may want to go and we could have avoided a lot of pain that we've experienced in the last couple of months at the opposition has a completely different take. their calling for a general election is that needed? well, i can, so because the bottom line is this, i mean, so the problem is where you know the hard from this is not of our governing effectively the government. what we have seen is the chaos. the last 10 years, the lowest growth, and here you have a list who was joined in the way the chancellor and when she got into trouble with the kind of a policy. and this is only my next question is when the market forces confidence and the truth is i can see how do we have a company and i do want to get to the economic fall out in just a moment,

but to buy if i could just get you to react to f. so as he said, trust in the ex chancellor designed this budget together. how come she gets to stay and he has to go. i mean that is part of mentary system, but we shouldn't dismiss the fact that has been. she's concerned amongst back benches including myself. i'm pleased to see jeremy hunter's now joined the team. he will provide his economic outlook on the 31st of october and that is the process that is our system by his labor calling for a general election. we call for general lex when gold brown came in. don't forget, he's the one that sold out gold at the wrong price at the wrong time. so you know, decisions are made all the time, which on reflection you might want to do differently. ultimately, let's see where things go with jeremy han with the statement with a new economic bottle. that's the best direction forward at this moment in time.

the idea of seeing how things go to bias, the british public didn't necessarily vote for trusts or her policies. why should they give her that time? again, that is the british model here. you don't vote for a prime minister, you vote for a party to be in government. we don't have a presidential system in this country. this is nothing new. it comes up every time . a prime minister is paced wall in office. and like i said, i don't believe if we did this again. we should adopt these rules where we go to our party base and ask them views because they have a very different outlook that m p 's that we do looking at the next general election itself. i think that applies to labor as well. it was actually william hague, who introduced the rules. margaret thatcher was replaced not with the membership by m p. 's alone. so if we go through this process again, i believe it should remain in house with the members apartment with the parliamentary party at sal, your reaction. i think we have it on the

market. and i think could be what you have is that chancellor was giving a different direction and you have a crime, mr. was fun going around the direction. so that might be the whole tension that the 2 forces that we have in government. and that is a problem, so you have top of that history where you ended up before 4 months, how to market that. and then when you look at what's happening, i think i've talked to lots of the country to day for, you know, just tell you by chance. do i think ultimately the need to do the best that it's actually that are gonna election. but for the people of britain, decide, press government device, you it, smiling or smacking,

then that's certainly not your opinion. well, as i say, it's always the call of the opposition party when the government is in trouble. when there's a change of leadership, let's have a general election. i've just admitted and made it very, very clear that we got that economic model wrong. that this i did is find a high approach to reducing taxes in isolation because of britain's global position . we are subject to economic international economy headwinds, which we have to bear in mind. we're going to ukraine for example, they need to be factored in. so it's quite right that we do this economic adjustment. we have to wait to see what jeremy hunt is going to do, but he's made it very, very clear. there's probably possibly going to be a rise in taxes. we're going to reverse the changing cooperation tax. we've already seen that change in the $45.00 pre tax rate arcs to see other changes to which will be to the liking of the markets. i didn't date to m p. 's and the britain as well.

so now isn't the time to hold a general election? well, let's bring in and pitiful. now speaking of the economy, how wrong did they get it and how wrong did the tories get it in terms of their, their economic model. so, thank you very much. the point is this, the, how much the tool you may want to clean up the political see and how ever ruthless say all about changing the mess. it's been a politically, it's much, much harder to do anything about the deep scars in the british economy that have been, that are a consequence of this role policy making this wreck this i have to say, i'm holding it by the, the image of the very casual chance the strolling down the street and flinging a good, hadn't grenade into the global capital markets so. so carelessly,

so we thought without awareness of consequences. and so the scars from lack of mistake, a very, very deep and we'll take a long time to bend. and when i say scholars, i'm talking about the 5000000 people in britain who again have to face increase mortgages of higher rates of interests in the next. yeah. right. that's an awful lot of people. that's families. those people who are going to have to cut back on they spending by, i don't know, 600 pounds of bonds. that's going to impact that a territory on them. but also in aggregate terms, it's going to be data g, further damaging to the economy. and this damage isn't something that happened 3 weeks ago. we've had catastrophe, shock off to shock. so the, the, this, the contest free which that was the 20079 crisis was a direct result result of the higher king. hi kin,

the regulation model. that mistrust is so proud. all right? deregulation is what led to restless activities in international financial system and gave us that shock. and then when that shock, scott called me very badly. george just born decides to deepen the damage with austerity. so we've had 12, yes, of course therapy, that's be faxed to mistrust. and indeed, boris johnson, forrest johnson, was elected on a mandate or reversing austerity of leveling up not leveling down. and miss truss was actually going to level down by cutting taxes to the rich and hammering the poor with deep austerity with refusing to increase benefits align with inflation. so it, you know, the poor british economy has been habit of the last 12 years. and it's not

surprising, therefore, that the markets have no confidence in our ages. and may i say this, the markets are demanding austerity. what they're demanding is prosperity. they want to see fully proven they will see people innovation jobs. they want to see people with decent income said generate tax revenues for balancing the books. if you, if you look over people's wages, which is what's happening now. you know, wait, wait is being forced down your low income and therefore you low a tax revenues and therefore you worse than the budget deficit you don't improve. so to buy, that's $100.00. you can have more or 30 indeed. and i just want to buy it or can jeremy behind the ship what i lost lots that was missed over that. i mean, you've got cove it that added 400000000000 pounds to the you know, the, the books that we had to pay off. you then have the national headwinds of ukraine, which we could do much more to reduce inflation because of those grain ships and

not coming out of a desa, for example. but we'll say you're right about interest rate because brit britain was wanting to borrow more. now you could borrow less, we've made that very clear. you change the corporation tax, it's $18000000000.00 pounds. that's now been now been found. so we will see interest rates. yes, they've gone up. they are potentially likely to come down as well. what the markets want, in addition to those things that you were mentioning, it's stability, it's predictability. and that's what we're now going to get back to you. but absolutely right. i'll put my hand up and say, we go through a lot of paint to get that. the bottom line, what so we haven't had productivity grades in this country since 2008. so the modeling that we've had, whether it be george, whether road. so what this truck was trying to do if i can finish, is actually trying to provide a more radical approach, which i didn't agree with. but she did. and now the other economists were driving her on to say it was yes, this sort of bad hire approach. of absolutely unfunded tax cuts,

thinking that they would pay for themselves that clearly in today's day and age with the economics choice we've, we've faced, that was never going to happen. ok, i'm going to get and to jump in there and respond. and then i would like to bring in f cell after that. so, and if you'd like to briefly respond, what i think, you know, what covert showed us is that the fiscal response, fiscal policy is subordinated to the really, really urgent policy of having to deal with a shock like cove it. and equally today, fiscal policy should be subordinate to the broader objectives of creation are investing. and if we have low productivity is because we have low levels of investment. now the bank commitment is insisted on wrapped up interest rate. that is going to discourage investment. and we need more investment in people in infrastructure. we particularly just because if they say climate breakdown,

we need to transform our infrastructure systems, transport, energy, and so on, in order for us to survive. the next shock that's coming, which is a climate and by diversity shock, and so that we need investment. and what we're getting now is a reversal of investment high interest rates a discouragement. both of public and private investments is not good to be very bad, so that should call me as well as of course not be preparing us for the big crisis of climate break app. so what should the u. k. be doing at this critical junction a clear and we've been asking them to be responsible with asking them through us. there's many, but you can simply go around spending 60000000000. they're trying to borrow this and then giving that money also too much of that money to the rich people. the idea that you're getting woman is going to help the people that doesn't make sense is the who,

who needs them or how and what they're going to give them. what they do is put that money in the bank. but if you give it to the rest of us there, well i can send it economy to go. so i think this is going to lead to look, and i think we've given them the idea of making sure that you're in full text on those companies who is making billions from rest of us that go with tax. that's the best way of doing it. so i just think they're getting it totally wrong again and again. and one of the one thing i would say is, you know, if you look at the history, you will find that look, that has been difficult, but is how you deal with those difficult p, which is the key. and the history you will see whether it's the liver or then move it immediately and tested it with the something back lead. and the damage happened. and then to do the thing. well,

let's look at the cooperation tax. jeremy hunter said he will increase it to 25 percent to by say, still going to be a giant black hole. how's he going to make the sams at up? well, that's what we have to wait for the 31st of october. what he has done is take away some of those red lines if you'd like, that we're used to say that we're not going to look at government spending and looking at more efficiencies and looking at raising tax as well. so visible, sensible approach, which again my kids will like. so we have to wait the 31st of october. but what we are going to see is more fiscal responsibility. and it says one thing of the conservatives have always been very, very proud of up until this moment, of course, has about fiscal responsibility. and that's why it's so critical for us to get back and repair that reputation. and where does this leave the u. k. in at fellow let you respond, sorry,

before i want to make it to this no waiting. now for the financial statement, when the chaos taking place in the financial markets, the sensible thing to do would be the many by far the statement. having that gap is what was also the uncertainty and what's going to happen. i mean, i would like to survive play while i was absent and it would be nice to have those . that statement brought. busy forward i think we now give jeremy hunt a little bit of space for him to do his homework. what we're seeing here is a radical change in direction. what we had during the summer in the build up in the contest. and then indeed in the last few weeks, so i think we owe it's jeremy to give him the space in order in order to do that. but already, i'm afraid i disagree with seeing the market settle. we're seeing a sense of stability coming in there. we'll look at the chest as to why we will have a better clarity about that on the 31st of october. but surely,

and if i can address this question to you, we need to give jeremy spaces to by says, but surely the u. k. public deserves samantha is now given the uncertainty that has ensued over the last 6 weeks or so. exactly. the question is, you know, the questions, i see a very public is how do we cope with our energy bills? how do we cope with the cost of living crisis? how do we cope with our mortgage bills? go up? how do we cope with the fact that we actually, you know, with those stairs he and rises in interest rates and the lack of investment? we got to have a question about employment or unemployment. so the uncertainty for the big public is really intense, especially for families. and somehow or other we, we can't just regain the confidence of the markets or the confidence of consumers by simply shoveling, changing the tech has

a few like on the same to ship. there is some thing about this government which is deeply unstable and people don't believe that simply switching. chances is go to stabilize stabilize things overnight. i'm very worried about the bag convenience determination to just carry on raising interest rate. and it's, that's a bubble love, which is causing disruption, not here just here in britain, but globally, the central bankers, all of them technocrats, none of them elected, none of them accountable to the people of britain united states. so europe are getting ahead to fight inflation to fight high energy and food prices, which have got nothing to do with central banks, but a global that they don't. there is not, those prices are not fixed here in britain. they're fixed in the chicago market. sorry that the chicago mercantile exchange see to me so. so the idea is attempt

bank is, can manage those prices by rac to take up rates in my view is deeply damaging, not just the british economy a to the rest of the world. and those problems will still be facing us on monday when we have a new chancellor. all right, well we're about to wrap up the show, but i'd like to ask you all briefly. leaves trust repeatedly stressed in her press conference on friday that the public wanted stability to buy. so start with you, what's your message to the u. k. public? let's listen to jeremy hunt. we also need to make it clear from a conservative perspective. we call it have experiments like this britain does well under conservative government, what it's a one nation approach. when we have a centrist approach that brings together the strength about parliamentary policy from all sides of the you know, the both the, the left and the right of the party. and what this trusted at the beginning was to just get all, you know, those in the right of the party were given the jobs. we've got the hard way. we

only have one song to get it right. we're changing the direction we need to add to that the political direction and finally the international direction as well. there's a gap in the market for international leadership. and i like to see britain step is that the tackle the oil gas and indeed the food crisis that was said or connected to or eastern europe and indeed ra hand. fcl. just a brief comment from you for me briefly, the point i wanted to reach, but the hard pace while we had from the tory government to decades, the buyers will have the lowest growth in the to get the history. and still there was one produced by the 50 year after year coastal republic services. i think people are sick and tired, but need to do that. we need to have an election. ok, well we have to leave it there, but we appreciate everyone's thoughts. thank you to all of our guest f l kahn, and pitiful and to buys al would it's been a fascinating discussion. thank you to,

for watching at home. you can say the program again. any time by visiting our website, al jazeera dot com, and prefer the discussion go to our facebook page, that's facebook dot com, forward slash i j inside story. you can also join the conversation on twitter. handle is a j inside story. for me, emily anglin, and the entire team here in the on november the 8th americans war vote. all the seats in the house of representatives at 35 percent of the senate will be contested. americans are expected to split on strict ideological lines with abortion and the economy named as the key issues. the results will define the rest of your biden's presidency and put americas democratic principles to the test. special coverage of the midterm

elections on al jazeera, indonesia, your investment destination, the world's 10th largest economy is busy transforming, ready to beat your business, partner with a robust talent pool, politically and economically stable and strong policies. being the powerhouse indonesia is confirmed by the g. 20 presidency, bringing opportunities for you, invest indonesia. now brazil's presidential election is going to a 2nd round on october 30th. coming hardline visiting jade more sonata and former social is presently legacy law. i'm buying from hopes which one will focus cheese to reelect to brazil's highest office ongoing special coverage on al jazeera.