tv Inside Story Al Jazeera November 18, 2022 2:30pm-3:01pm AST
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and he will support him until he makes it. she often visits her former coach to help train some of the new students. coach argie says he's proud of all of them, but turning them into professional players is not his main goal. that's why i want these children to play football so that can be strong and be confident so they can have a good future. nowadays football schools are expensive, but i believe football should be cheap. and football belongs to the people that he often gets into his savings to pay for equipment and hiring the field a cost. he says it's worth it when he sees what his students can achieve. jessica washington out a 0 to carter. ah, you're watching al jazeera, these are the headlines this our north career isn't attending a meeting in asia pacific leaders in bangkok, but it's front and center. as the apex summit begins, p on gang has been accused of firing a long range, ballistic missile,
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capable of reaching the us mainland us, vice president, come la harris. how to an urgent meeting with allies at the summit? japan has warned, the missile launched by north career is capable of reaching the us mainland. japanese officials also confirmed it landed in the countries exclusive economic zone. meanwhile, south grandmother, he say they believe it was an intercontinental ballistic nissan police have fired rubber bullets during protest as we pick stomach kicks off some demonstrators, according to the prime minister to sit down. and my funeral is being held for 21 victims of a building fire in northern garza, 7 of the dead wood children, the blazing gulf. the 3rd floor of a building in the job aaliyah refugee camp for it in finance. minister has defended his budget plan. but warned the u. k may face challenging times during the next 2 years. jeremy hunt says he's $66000000000.00 proposal, low inflation and boost the economy where we challenge has the latest from london.
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over the previous weeks we've had talk of the grim decisions facing jeremy hunts and what he was going to have to do. and so when it came to it, yes, there was a slight dip in the pounds. there was a slight dip in the markets box that could be down to the fact that jeremy han painted a pretty dark picture of the u. k. is economy over the next couple of years? at least he said that we're in recession already. though his fiscal plan, as he but it would make that the session shallower than it would otherwise be on the market. i think for the most part of the moment or giving him the benefit of the doubt. the binding administration says saudi arabia's crown prince should get immunity related to the killing of us journalist jamal her show gene. it's a reversal of the stance president joe biden took during his election campaign. the washington post columnist was killed in the saudi consulate in assemble in 2018. and which is 2 days to go before the world cup starts, organizers have announced alcohol will not be sold at stadiums. it's
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a reversal of the original plan for major tournaments, sponsor budweiser to sell beer at the 8 sites within the ticketing perimeter. a new policy means that only non alcoholic beer will be sold at venues. alcohol will still be available to those in hospitality areas and also at the fif fan festival. all right, those are the headlines i am, the anguish the needs continues here on al jazeera update inside storing, ah, the cost of living prices worse as in the u. k. inflation is at its highest level in more than 40 years. millions of people cannot afford to buy food or heat their homes. so will the new governments budget be enough to ease the pain?
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this is inside story. 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 had 11 point one percent. the highest level in 41 years, families are paying 90 percent more for gas electricity and fuel than they were a year ago. charged to say more people are asking for help. the previous prime minister is truss resigned in september after her finance minister announced $53000000000.00 in funded scouts that spooked the market. and the pound took
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a nose dive for con, finance. minister under prime minister risha, snuck is raising taxes and cutting public spending. instead, this is a balance 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. any one 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
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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 which are appear quite well, but advantageous to the public, such as health spending, education spending and spending on on the year a care sector. however,
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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 it, i guess her will be joining us from london to day. 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. what come 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?
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i think it's a very political economic statement which house find it to 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, which rocks 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 states been by are jeremy hand. so he's talking about the need to high taxes and cot, public spending as somehow an idea of vanity comp hold were the decision by their bank of england to increase the interest rates are something that
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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, you k is facing a final severe economic downturn, the other countries of a rich economies. 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 say, the deepest on record here in the u. k. and is far deeper than in other comparable economies. as i said after 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 and could otherwise have been the case. and today, getting an alternate statement that has a net, a contraction restarts more,
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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 harm that 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 that leave the most vulnerable? those are all low income the, 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 portion of the population. i think, you know, in some ways, politically, it's a lot easier for the tory to ignore the poor people in the countries. very hard to ignore the sheer numbers of people being hit by this real terms caught in the spending power, huge hikes in their mortgage payments. we have
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a situation with one and 7 people according to to say us get to me was because i can't get enough food. and then we're still one of the rich countries in 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 to serious political problems, list government and one that is 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 of prime in a cell is trust and her chance of the checker cause? the quoting, why is the legacy, i think of a series of decisions which have been taken over a number of years over the factory at separating out the cool impact 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 yearning plenty which itself inflicted
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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 on the spot warning ukraine. it was already an economically and socially vulnerable position. and so i think the maintenance that we're seeing status, the reflection about governments having to take these very difficult economic decisions because the economic mental than the highest so weak. and that way because of 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 quote, a quarter decided to move ahead with a plan which is basically based on a very notional supply side economics. while you cut you decide for tough costs without having the without going to cost public spending and this has increased borrowing across the spectrum, created a panic. and we know what happened white after that that we have jeremy hunt who's trying to those all those decisions. but it does not really give you
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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 over 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 essentially 3 reversed since the budget came out to 10 of those 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 is to say, markets going to panic. if a country are you k 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,
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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 are particularly in europe. most of them having exactly the same set of problems by using gas, electricity prices, food 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 covey 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 at low average earnings. we productivity,
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we went into it incredibly weak and as affect the way we then recovered. we also mismatched the pandora, i think compared to other countries as well. the i would say, as well as point us 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 the to spend their target whereas the u. k is now going on and a new austerity isn't entirely from direction. i think that will become increasingly important in the coming years. max, if you look at all the projections, they basically say that will likely to see recession move in 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 here in one of the poorest areas of london.
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you know, really struggling to make ends me and this is not, people are benefits, these are pickling, both working, you know, how to down jobs are 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 or 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, right? 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 do or 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 records. so we don't have to go down this fool there and of all stairs to which
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were only her economy and her ordinary people even more. let's tax the rich. that's not a pull. patrick was, was back that responsible in a way or another for this situation because you look a neighbor economies. they manage somehow to navigate through this process by doing business with a lot of an expanded market and they manage 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. by the offense. that are going on here and i think say that it's simply the conference break, that would be a distortion. there are many different factors work here which explain the, the providing economic situation of the day. and i think that the, the truth is the young on the british economy, or we can have been weak for some time g, c, levels of public and private investment and the poor economy, the decision making. and those have been exacerbated by series of shocks and crises
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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 inflated the shocks on particular part of the economy. one of the really striking features, 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 economy, the north of england, and so on. gotten part of why was doing really very badly indeed. so there's also be that kind of a symmetric right that has created. so when you take all these boxes together, it just on the lines really the weak moment position, the britain, the 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 finances but also rebuild the economy. well, i mean, the 1st thing is there isn't a,
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a 54000000000 whole. it's just a gap between the government and political targets and the can, the current forecasts. and it's one that reads one's budget is a political because that the government trying to make it about public finance, sustainability even as a function of political choice to distract from all the underlying things in your premise guess was talking about in the economy. but ultimately, what it means for people, that's the real crisis, hit the cost of living standards that 7 percent squeeze in real incomes over the next 2 years. and that is what the government's fail to address mass. we're talking about austerity 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 arising bills that we have to deal with. could the middle class be mostly targeted as far as those are slow to measures are concerned or do you see it more expanding towards all the sections of the society?
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i think where it becomes a real political problem for the tories. is it with rising interest, right? and that really significant increases in the cost of mortgages with really iris stretch 1st time buyers is spending to proportionate, their income, ready on servicing their mortgages or paying very high rents, particularly here in london, in the southeast there. i mean, that's not the same. it's not they have to choose between $80.80, and the huge suffering. it's 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 that 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 going to fill the sprays and it's going to make a big difference. politically. patrick,
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the shadow chancellor. rachel, be said. the country cannot, for the country, is sick of being read of by the tories again and again. and 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 certainly in the last few months the, the lots of economic trusting credibility in the conservative government under the trust, the previous prime minister. and i think now the issue has been very striking. and that does that balance is friends and the position of the opposition made the policy because people can see that 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 financial markets, which is traditionally being strong supporters of conservative governments. so certainly late this position has been strengthened, but of course it's still faces
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a challenge itself, which is to say what it would do. and i think the intention of sustaining state like army. com, was to try to lay the grounds over the next couple of years for challenge to labor . which is to say, what would you do? would you be willing to borrow more? would you tax more? he did taxable packs, which had to go along with some of the cops in public spending where pass, make so late. this position is of course, 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 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 mess and at what price? yeah, and i think the key thing of course is, is you can nozzle homogenous entity, but the people living there, distribution consequences and consequences, inequality. but i think action you can come through this period in
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a way that does protect the living standards of those that most at ne, protecting of the poorest, and society, and any maintenance the 3 things you know, 1st of all, acknowledge that this is a whether having a current mistakes at home is fundamentally a price shock that's gone 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 energy bills is much more target than what we already have. it's much more protection and a public service investment, an investment in our income safety net and the number 3 to say on to make sure that all of that is 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, acknowledging that the, the real world putting in place to support and raising taxes on those who can afford it, prevents the choice and getting worse. you can come through the situation, come out of it. stronger. certainly stronger than what the government is currently in the park up on the setters on mass. when you look at a decade over or of missteps,
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which we should 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, oh, is it bad news for all everybody in the u. k? i think if you look at cuts to the chest and is absolute, i mean, the vast majority of british people use the national health service. you know, private healthcare is only used by the very, very rich in this country. and that is very different to many of the other countries or works where the universal health coverage is only the privilege of the rich. so a massive cuts in real, in real terms to what be in a chest can do off the back of the heroic steps i took during cove. it does impact, absolutely. everybody in 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,
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the record on economic management is taking touch of beating. 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, and i need to be very specific about how they're going to increase taxation on the very, very well. let's have him 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 poland 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 to us. there is an alternative to the poorest will 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 you see it as one of the key components of the strategy. i'm talking about the tories by the power base itself, which has always been skeptical this help barry notional cutting taxes is something
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that could grow the trust the tories has been having most of the time with its power base. yeah, i mean it's important thing just reflect from the, the wild oscillations and physical policy that the have recently been going for and gets been pointed out quite quite things, many budget and with the largest tax cussing budget for 50 years. but the package, the term economy 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 change direction. i think that the conservative, the real problem is that in success of elections, many claims we since it's being based around their account commitment to generally like taxes. nicole, what we've seen in this package today is really the end of the right strategy because taxes risen will rise and many middle income groups will be caught
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in this kind of concerned movement that bands with the electrical connect with the conservatives, particularly in multiple seats, are populated by higher proportion of these kinds of middle income. and it's not going to be hit really hard, but it 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, weak pound fear of recession and inflation. of the highest in more than 41 years. what does it leave the okay, that leaves us exposed, but actually those are the symptoms of the problem, not problem itself. and the problem, the life i symptoms is the wrong decision at the wrong time by our petitions and government and our central bank patrick diamond, our phase telling marks, lawson. i really appreciate your insight looking forward to talking to you in the
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near future. thank you for watching. you can see the program again any time by visiting our website al jazeera dot com for further discussion. go to our facebook page. that's facebook dot com, forward slash a jane site. sort of you can also join the conversation on twitter. our 100 is at a jane sites for me and the entire team here in doha bye for now. ah and
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