lace have made many of these accomplishments possible that could not have been done without you for my dear husband paul, who has been my beloved partner in life in my pillar of support. thank you. we're all grateful for all the prayers and well wishes as he continues his recovery. thank you so much. cultivation and nancy pelosi is retiring. as how as leader of the democrats in the house, the democrats have lost the majority in the house, but there was there. well, as the suggestion of the fact that you can see if you just stoke and lovely love the questioning of whether she would still remain the leaves or the democrats in

the house. she was the 1st female speaker of the house. she is the longest serving party leader in congress for the democrats, but she did confirm that the discrepancies concerned. it is time for generational change. and there are a lot of, lot of democrats in congress who agree with that because the democrats didn't do as badly as expected. she didn't suddenly find herself without political political leverage once again. and she seemed to seem to revel in keeping people, keeping people guessing. so we will see we weren't necessarily see generational change that her deputy said he was, he's 83, but he's made it clear that he wouldn't mind the job. you never know. and we what we've seen joe by 79. he has that running again in 2 years time ages no barrier in the democratic party. it would appear, but certainly there are a lot of younger democrats who say, look now, is the time to move forward and costs or surveys, which suggests that members of the public feel that the various democratic leaders

should should give way to, to younger generations. but we should be clear, these are generational issues, these on ideological issues for the democratic party. hakim jeffries, you've seen as the front runner of the younger generation to succeed, is also from the corporate right of the party. and you can see why because the road of the speakers and just to keep the democratic caucus in line for legislation. and she went through some of the legislation that she'd, she'd help or shepherd in her role in the democratic body. but it's also to get as many corporate donations as possible money as possible for the party. this place runs on on money and so clearly, big corporations on, terribly keen on progressive change. so yeah, this is a generational shift. nice article shift. if. if hakim jeffries does window, a younger person does when, but that's not necessarily a short, as at the moment with stony. why are 83 year old deputy still making it clear that he isn't averse to the idea of, of taking her place? all right, yeah, thank you so much for that analysis,

an update from capitol hill. so just to recap, we heard from nancy pelosi just a few moments ago. she said that she will not be seeking re election to the democratic leadership in the next congress, but she will remain a member of the house. so that is the latest news coming out of washington d. c. we are going to head to inside story next, but the news hour is at the top of the hour right here on al jazeera will have more headlines for you and all the days top stories. and i will see you then. thanks for watching. bye bye. ah, the cost of living prices worse is in the u. k. inflation is at its highest level in more than 40 years. millions of people cannot afford to buy food, will heat their homes. so will the new government budget be enough to ease the pain?

this is inside story. ah, ah, hello, welcome to the program. i'm hashem alcala. the u. k. government says it's making difficult decisions to control aspirant cost of living crisis. millions of people are struggling to pay their food and, and as you bills and things could get much worse as when to assess in. inflation has hit 11 point one percent the highest level in 41 years. families are paying 90 percent more for gas electricity and fuel than the were a year ago. charlie, to say more people are asking for help. the previous by minister news trust, resigned in september after her finance minister announced $53000000000.00 in

funded jack scouts. that spooked the markets and the pound took a nose dive for count. finance. minister under prime minister risha, snuck is raising taxes and cutting public spending. instead. this is a palace ha, to stability tackling inflation to reduce the cost of living and protect pension or savings while supporting the economy on a path to growth. but it means taking difficult decisions. anyone who says there are easy answers is not being straight with the british. people under simmons has bought from london more than $38000000000.00 in cuts and around $28.00 and a half $1000000000.00 raised in increase taxation. really nobody in the u. k. is going to escape paying more tax because stealth is the word with this autumn statement, or as anyone else would call it

a budget. or the stealth is applying to the salaries of people in the went in the sense that they will actually find that their fresh holes will be crossed quite easily. they stay the same, but with inflation high and with wages increasing, they'll still end up paying more tax because they'll cross thresholds add to that a number of increases in, in direct taxation. and the fact that most of the really big costs will be held over until 2025 co. incidentally no, not that's just after the general elections are due. so a very big political move there by this conservative government. and also there are some takeaways witcher appear quite well that advantageous to the public such as health spending education spending and spending on on the year a care sector. however,

that is really going to be overtaken by inflation. and that applies to many of the goodies in this budget in bold terms, straightforwardly. people are going to really suffer in the u. k because of this autumn state. andrew simmons, the inside story. ah. now let's bring in, i guess her will be joining us from london today. we have patrick diamond, professor in public policy at queen mary university of london. alpha sterling is the director of the search of the new economics foundation. and max lawson is the head of inequality, policy at ox, from international welcome to the program. patrick, is this an attempt by jury hon to fix an economy that has been grappling with inflation potential for recession or more of a political attempt by the tories to build a credibility that has been battered by blunders?

i think it's a very political economic statement which has behind it 2 fundamental intentions long. you've already referred to you, which is attaching to restore the credibility of the government of the disastrous many budget in september with rob financial markets. but then the 2nd political aspect to this statement is trying to create a platform for a conservative election victory in 2024 when we expect an ex lashan to happen. and this statement today was i think an effort to try to my hammer political choices and debates on the will shape that election campaign alfie. if you look at the other statement by a jeremy hound. so he's talking about the need to high taxes and cut public spending as somehow an idea vanity comp pulled were the decision by their bank of england to increase the interest rates are something that has been

unprecedented over the last 33 years. do you see this as a plan that could work that could fix the economy? and i think it's highly problematic. i mean, you know, the u. k is facing a far more severe economic downturn. the other countries of a rich economy is, i mean, we just heard today a record collapse in disposable income per person in real terms of 7 percent over 2 years. that is the same, the deepest on record here in the u. k. and is far deeper than in other comparable economies. as i said, i have to ask the question where does come from? and it's come from our own policies, including the ones you just mentioned. said the bank in england, increasing interest rates are faster, harder than other countries are quite likely over doing it and pushing us into a deep recession that could otherwise have been the case. and today, getting an autumn statement that has

a net contraction restart small. i mean by that is taking money out of the economy even as we're going into recession. and even as we then kind of slow recovery out that this, the policies today are spending cuts, tax rises that will, hong recovery. max. when you look at the statement, it offers some metrics, some decisions to be made, but then when it comes to the very core question of where does the leave the most vulnerable? those who are all low income that the government does not really seem to be offering some very clear answers. yeah, i think it's hard to exaggerate the scale of suffering out there in the country for the poor people, but a large proportion of the population. i think, you know, in some ways, politically, it's a lot easier for the tourist to ignore the poorest people in the country is very hard to ignore the sheer numbers of people being hit by this real terms car and they're spending power, huge hikes, mortgage payments. we have

a situation where one is 7 people according to to say a skipping meals because they can't get enough food. and then we're still one of the richest countries, the world. so the scanner is suffering not just for the post of the pool, although that is where people are hardest hit. but across the country it's a serious political problem list government and one that's going to cause enormous suffering and hardship for, for families across the country. patrick, how did the ok get to this particular point? should we blame the full prime minister? let's trust and her chance of the checker cause the quoting why is the legacy i think of a series of decisions that should be taken over a number of years over the factory at separating out the cool impacts of these different decisions. this is in itself challenging, but obviously we've conference decisions, leave european union thoughtful a period of very significant austerity in the early claim, which itself inflicted significant damage by phone, public infrastructure,

and also on the welfare site. so when you, when you went into the crisis generated by have 19 and then obviously the subsequent j political crisis call home the spot warning ukraine. it was already an economically and socially vulnerable position. and so i think the maintenance that we're seeing today, just a reflection about governments having to take these very difficult economic decisions because the economic fundamentals in the us a week. and then we, because i think decisions going back over the last decade, i'll say it was, it was quite obvious. i mean, when, when, when liz trust and quite a quarter decided to move ahead with a plan, which is basically based on a very notional supply side, economics. why you cut, you decide for tough costs without having the without going to cut public spending. and this has increased borrowing across the spectrum, created a panic, and we know what happened white after that though, we have jeremy hunt who's trying to those all those decisions. but it does not

really give you a strong guarantee. is that like 6 months from now we're going to see an economy she's back on track. yeah, i mean i wouldn't of exaggerate the impact to the trust car tang many budget and that's for 2 reasons. one is that the main impact of that budget in terms of affecting the u. k, going forward was an increase cost of government borrowing. and, but actually that has now been actually 3 reversed since the budget came at a 10000000 markets of now eradicated. if you like that, that competency premium that they were giving to the u. k. that's gone. and secondly, the budget didn't show us the sort of hard limits to borrowing per say. you know that the wrong lessons about it to say markets going to panic. if a country that you pay borrows the lesson is a country borrows it doesn't support the economy, but that barring then market take a very dim view. so it's quite important to learn that lesson. therefore, we're looking at this budget,

the fact that we're not supporting the economy despite across living crisis, despite recession, shows that we're not learning that right lesson. it's certainly not mandated by investors. alpha. when you look at the graphs, all the charts presented by different countries in particularly in europe, most of them having exactly the same set of problems, advising gas, electricity prices for shortages, high transport prices coupled with the ramifications from the russian invasion of ukraine. but still they managed to bring their own or to bring the economy to the levels, which were before cove in 19 except for the okay, which is like in fi behind why? yeah, that's right. i mean, a lot of it is down the fundamentals, but previous gas was referring to the u. k. went into the pandemic, hardly being worse prepared. you know, we had a, a health system that was near breaking point. we had record a period of low,

low average earnings. we productivity, we went into it incredibly weak and nice affect the way with then recovered. we also mismatched the pandora, i think compared to other countries as well the i would say as well, because at this point i was making non public finances. is that the e u a years and countries have suspended their fiscal rules, they are not about to cut tax, cut spending or raised taxes, going into this difficult period to spend their target. whereas the u. k is now going on and a new austerity mentality. direction and i think that will become increasingly important in the coming years. max, if you look at all the projections, they basically say that we are likely to see recession moving all the way towards the other, the 1st half of 2023. what does it mean for the families who are suffering as we speak? oh, it means terrible hardship. that means choosing between hating and 18. i mean, i think of the, some of the parents at my kid's school, parent harris, one of the poorest areas of london. you know,

i really struggling to make ends me and this is not paper on benefits, isn't working. you know how to down job struggling to, to pay the bills. and i think it's really important to get the message across that there is plenty of money in this country. and it's good to see the chance to increase taxes at the top a small amount. but the so much more he could do should be done to ensure the richest people in our country pay more tax. for instance, the right of tax on capital gains is to 20 percent. instead of their taxes for work is much, much higher. you know, the highest income tax write a 45 percent, so you make you pay less tax on the money you earn from your bank account and interest rate savings than you deal with the money from hardware. really simple steps he could take to raise a lot more money from the very rich people in our country and to pay to protect the poor. so we don't have to go down this fool therein to stare it to which would only

her economy and her ordinary people even more. let's tax the rich. that's not a poor patrick was, was back that a responsible in a way or another for this situation because you look at neighbor economies. they managed somehow to navigate through this process by doing business with a lot of an expanded market. and the managed to mitigate the impact when you look at the u. k. it seems to be a different scenario. yeah, i wouldn't. i think that's right. it's a bit simplifying the effects that are going on here. and i think say that it's simply the constant breaks, it would be a distortion. there are many different factors, a work here which explain the, the providing economic situation of the day. and i think that the, the truth is the young man, the british economy, or we can have been weak for some time g, c, levels of public and private investment and change, or we can make decision making. and those have been exacerbated by a series of shocks and crises of which the date is warm,

but yet for the cool crisis around another. and obviously choosing to leave europe in market in the last 2 years has also inflicted on the shocks. on particular part of the economy, one of the really striking feature, the brakes it is, but in some respects, london, the south east has been relatively well insulated from economic shock, the other parts of the ultimate and bring them in so long gone. and part of why i was doing really very badly indeed. so there's also be a kind of a symmetric right that has created. so when you take all these factors together, it just on the lines really the weak moment position that britain points itself in . alpha does the economy have all the fundamentals it takes to not only to like the $59000000000.00 plus hole in the countries public finance says, but also rebuild the economy. well, i mean, the 1st thing is there isn't

a 54000000000 whole. it's just a gap between the governments fine political targets and the current full cos. and one of the reasons one is budget if i political because the government trying to make it about public finance sustainability even about as a function of political choice to distract from the underlying things in the previous gas was talking about in the economy. but ultimately, what it means for people, that's the real process is the cost of living started the 7 percent squeeze in real incomes over the next 2 years. and that's what the government failed to address. max, we're talking about static measures, which are going to continue for quite some time. it means that some people will have to pay $4000.00 pounds a year to to try to tackle some of the rising bills that we have to deal with. could the middle class be mostly targeted as far as the floating measures are concerned, or do you see it more expanding towards all the sections of the society?

i think where it becomes a real political problem for the tories. is it with rising interests, right? and that really significant increases in the cost of mortgages with really iris stretch 1st time buyers is spending a huge proportion of their income, ready on servicing their mortgages or paying very high rents, particularly here in london, in the south carolina. i mean, it's not the same, it's not they have to choose between 80 and 80. and the huge suffering is really coming in the bottom half of the population, particularly for women and particularly people of color. but i think as a political problem, when it starts to look at that hit the living standards of the vast majority of the population. and people can make a connection between the and the clear economic mismanagement of the current government and previous iterations of the current government. then i think that is really, really big issue because way more people for us are going to feel the sprays. and it's going to make a big difference politically, patrick,

the shadow chancellor. rachel, be said. the country cannot for the countries sick of being wrapped up by the tories again. and again, as she said that she doesn't see a way out from an economy which is not based on growth. because this be the moment to build momentum for the labor party and see how it could benefits from this situation. politically speaking. well probably in the last few months, the loss of economic trusting credibility in the conservative government under the list of trust, the previous prime minister. and i think now, and she said that has been very striking. and that does that balance is friends in the position of the opposition made the party because people conceded the current government's policies are not very successful. that's a real loss of confidence by the public law school. so, business and even more the financial markets, which are traditionally being strong supporters of conservative governments. so certainly late this position has been strengthened, but of course it's still faces

a challenge itself, which is to say what it would do. and i think the intention of the statements state like army. com was to try to lay the grounds over the next couple of years for a challenge to labor. which is to say, what would you do? would you be willing to borrow more? would you tax more he did, he acts which had to go along with some of the cops in public spending where pass make so late. this position is a cool story that has been for some time, but it has to get a signed act together. and it needs to be able to have a clear argument and response. the question is the government will pose, which is what would labor do if it was in government, i'll say can the u. k, get out of this mass and at what price? yeah, and i think the key thing of course is, is a u. k. nozzle, modern entity, but the people living there, distribution consequences and consequences, inequality. but i think action you can come through this period in

a way that does protect the living standards of those that most at ne, protecting of the poorest and society. and you basically 3 things. first of all, acknowledge that this is a letter happening. i can't, mistakes at home is fundamentally a price shock. that's common to many countries. number 2, therefore say right, we need to protect people's living standards. as this price shock moves free, the systems that support of energy bills is much more target than what we already have. it's much more protection come to public service investment, an investment in our income safety net, and the number 3 to say on to make sure that all of that's what the family doesn't add to inflation further and set up the tax rises that would offset that. and if you were to go down that route of them in acknowledging the real world, putting in place to support and raising taxes on those who can afford it, prevent situation getting worse. you can come through the situation. come out of it . stronger, certainly stronger than what the government is currently or the park government setters on mass. when you look at a decade of, of missteps,

which i wish it would have left the public services close to a breaking point. now you have 2 key sectors here, education and health care. if this is going to go for quite some time, is it bad news for all everybody in the okay. i think if you look at cuts the chest and is absolute, i mean the boss majority, british people use the national health service. you know, private health care is only used by the very, very rich in this country. and that is very different to many of the other countries. our time works where the universal health coverage is only the privilege of the rich. so a massive cuts in rails in round terms of what has come off the back of the heroic steps i took during. it doesn't pants out today the, everybody in the country. and that's another reason why it's a place called politically dynamite. i do think that that is good news for the opposition that the conservative party record on economic management is tied in

touch. but i also think that the live party i agree with the previous speaker needs to be much fair about what they can do. and i think in particular, if i need to be very specific about how they're going to increase taxation on the very, very well, let's have them call for a wealth. tax instance receives a very good solid research showing that wealth tax on top one percent could raise another $10000000000.00 meant to pray about taxing. the super rich we know from polling about is enormously pumped across the political spectrum. so there are things that i think labor could be doing to, to take the initiative and show that there is an alternative just there is an alternative to the poorest. well over the country, patrick, what happens when it comes to the very issue of taxes. they say that they would like to a ca, taxes because they see it as one of the key components of their own strategy. i'm talking about the tories by the power base itself, which has always been skeptical this help barry notional cutting taxes. it's

something that could erode the trust that the tories has been having most of the time with its paula base. yeah, i mean, it's important, i think just reflect from the while of oscillations and physical policy that you have recently been going for and gets been pointed out quite quite things, many budget and with the largest tax customer for 50 years. but the package, the term, the comments announced today is the largest tax running thing, budget statement by government in 30 years. so in the space of a few months, you take the school policy kind of dramatically changed direction. i think the conservative, the real problem is that in successive elections, many claims we since has been based around their account commitment to generally low taxes. nicole, what we've seen in this package today is really the end of the right strategy because taxes risen will continue to rise. and many middle income groups will be

caught in this kind of movement. bands with the electrical can, are the concern is particularly multiple seats populated by higher proportion of these kinds of middling come on. it's not going to be hit really hard by the measures jeremy hundreds. now, today, i'll say if you don't mind in less than 30 seconds, if you look at all the metrics now london losing position of the most valuable european stock market, we pound fuse of recession and inflation of the highest in more than 41 years. what does it leave the u. k? i'm lisa exposed, but actually those are the symptoms of the problem, not problem itself. and the, and the problem the and life i symptoms is the wrong decision at the wrong time by our petitions and government and our central bank, patrick diamond. i'll face telling much lawson i really appreciate your insight looking forward to talking to you in the near future. thank you for watching. you

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