trouble at the white house, as president trump's national security advisor resigns. michael flynn quits over his contacts with russia — just weeks after taking office. we'll be getting reaction in washington, and in moscow. also this lunchtime: the rising cost of fuel helps to push inflation to its highest rate for two—and—a—half years, to1.8%. a bribery settlement and the fall in the pound push engineering giant rolls—royce to a record loss. an investigation is underway at a topshop store where a ten—year—old boy was fatally injured by store furniture. full—steam ahead — for the first timetabled train service featuring a traditional locomotive. and coming up in the sport on bbc news: leicester sign england fly—half george ford for next season, after agreeing a deal to buy him out the final year of his contract at bath. good afternoon and welcome

to the bbc news at one. it's got to be some kind of record, with donald trump facing his first scandal and a top—level resignation just 2a days after his inauguration. his national security adviser, michael flynn, has resigned over his contacts with russia. he's alleged to have discussed us sanctions with the russian ambassador before mr trump took office, then misled officials — including the vice—president — about the conversation. the kremlin has refused to comment on the resignation, saying it was an internal matter for the united states. our correspondent andy moore reports. just over three weeks into his presidency, and donald trump has already lost one of his closest advisers. this was mike flynn at the white house just before his resignation. a lonely figure on the front row of a press conference. then a cool handshake

from vice president mike pence — the man he's been accused of misleading. it was flynn's close links with the kremlin that got him in trouble. here he is in 2015, at a dinner in moscow with president putin, but it's illegalfor a private citizen to conduct us diplomacy. mr flynn denied he had spoken to the russian ambassador about sanctions before mr trump became president, and on that basis mr pence went on national television to defend him.|j can confirm, having spoken to him about it, that those conversations that happened to a car around the time that the united states took action to expel diplomats, that they had nothing whatsoever to do with those sanctions. in his resignation letter, mr flynn said he had held numerous conversations with foreign counterparts. it went on, "because of the fast pace of events, i

inadvertently briefed the vice president and others with incomplete information regarding my phone calls with the russian ambassador." those phone calls had been monitored by us security officials and some of the details had been leaked to the press. within the intelligence community, this is how they fight back. they leaked material to the press and that compromises donald trump's ambitions are around foreign policy. mr flynn's resignation came after a series of contradictory state m e nts after a series of contradictory statements from the white house. yes, general flynn does enjoy the full confidence of the president... do you have full confidence in? but soon after the white house spokesman said the president was evaluating the situation. he is speaking to vice president pence relative to the conversation the vice president had with general flynn. since news of

the resignation broke, the official reaction from the kremlin has been muted. president putin's spokesman said the affair had nothing to do with russia and was an internal matter for the trump administration. but chairman of the foreign affairs committee in the upper house said... well, in a moment we'll speak to our correspondent in moscow, but first gary o'donoghue in washington. trouble for the white house. anything worse than that? well, it is clearly a huge blow. this man was loyal to donald trump, through the campaign, he was at his right hand in national security matters, clearly discussing matters day in day out multiple times a day, so it isa day out multiple times a day, so it is a huge blow to donald trump, but i think it became a choice between honouring that loyalty and

effectively humiliating the vice president, and it looks like the vice president won that. the white house is very keen to limit this to theissue house is very keen to limit this to the issue of the vice president being misled, and you can understand that for good political reasons, because there are still wider questions about what make flynn actually said to the russians, what promises he made to them, what he said to them during the campaign and those are the sorts of areas where the white house wants to be careful. let's go to steve rosenberg in moscow. not much comment there, but what about privately? you know, we often refer to these as extraordinary times, but this is quite extraordinary. look at what happened today — the resignation of an american national security adviser has got politicians here in moscow reacting furiously, actually, andjumping to moscow reacting furiously, actually, and jumping to michael flynn's defence, so for example in the upper

house of the russian parliament one senator this morning tweeted that flynn was the victim of paranoia and a witchhunt. at the head of the foreign affairs committee, a message was posted saying that either donald trump had been driven into a corner or his administration has been permeated with russiphobia from top to bottom. the language is angry and colourful. they saw mike flynn as someone colourful. they saw mike flynn as someone who champion closer ties between washington and moscow. he attended a gala dinner here a couple of years ago and sat at the same table as vladimir putin, but i protect not only disappointment from moscow but also a little embarrassment, because as late as yesterday the kremlin was continuing to insist that before donald trump stepped into the white house there had been no discussions, no conversations between moscow and washington, about sanctions, and today the kremlin's comment on all

of this was "no comment." steve rosenberg from moscow, thank you very much. inflation has risen to its highest level since june 2014. the rate, as measured by the consumer price index, rose from 1.6 in december to 1.8. the office for national statistics says the increase was driven by higher global oil prices and the fall in the value of sterling. our economics correspondent andy verity reports. prices may be up, but it is not yet the consumer who is being squeezed ha rd est. the consumer who is being squeezed hardest. it is the company that sells you the goods and even more so the companies that produce them. following the devaluation caused by the brexit fort, this east london brewery is being much more for the same raw materials imported from abroad. it has boosted prices by 5% but the costs have risen twice as fast. for all businesses but equally so fast. for all businesses but equally so for us, we have pensions coming in this year, huge business rate increase this year, we have leader

area increase this year, we have leader are a london living wage employer so thatis are a london living wage employer so that is significant —— we are a london living wage employer. we also have the raw material prices going up have the raw material prices going up and up for raw materials imported so up and up for raw materials imported so it is a real crunch point for us. today's inflation rate is still below the bank of england target at 296 below the bank of england target at 2% with prices rising 1.8% in the shops, but pressure is coming through the pipeline. prices at the factory gate are up 3.5% and producers passing on the much higher cost of raw materials, up by more than a fifth. also driving prices up isa than a fifth. also driving prices up is a 17% rise in the cost of petrol and diesel. with that come higher transport costs, but the government point out that inflation is still co mforta bly point out that inflation is still comfortably within the target range. i would remind you that the inflation figure announced this morning, 1.8%, is still below the bank of england's target. the bank of england monetary policy committee

is seeking to manage inflation to maintain itself at or around 2%. when inflation is at this level, the economy should be working well. the economy should be working well. the economy is growing much more strongly than opponents of brexit predicted, and on financial markets in the city, the next move in interest rates is expected to be up. the market sees a real possibility rates may have to increase before the end of this year. very much a reflection of the fact that economic activity has been so strong coming into 2017 and the consumer has held up into 2017 and the consumer has held up relatively well. until recently, price rises for consumers were tamer than they had been since the 1960s. the price of fish, for example, is only back to where it was three yea rs only back to where it was three years ago. so far consumers have been shielded from higher costs, but inflation above the 2% target now looks inevitable. andy verity, bbc news. rolls—royce has posted one of the biggest corporate losses in history. the british aircraft engine manufacturer, which employs 23,000 people in the uk, lost £4.6 billion last year because of the instability

of the pound and penalties it had to pay uk and us authorities for bribery and corruption. well, with me is our business editor simonjack. these figures look terrible. yes, on paper they are horrendous, the worst figures in the company's 133 year figures in the company's133 year history, but they are distorted by a couple of things. rolls—royce sells its engines and crucially the service contract on those for 20 yea rs service contract on those for 20 years at the time and always or usually in dollars. the company's big risk is that the dollar falls in value and that those revenues when translated into sterling dwindle as the dollar falls. if the opposite happens, because they insure themselves against that, those insurance policies, and the pound has fallen sharply against the dollar, there is a big charge on paper which is called a loss, but it is not actually cash they are handing out. to strip that and look

at the underlying earnings, they are not great. profits have halved, old engines being phased out quicker than they are selling new ones to aliens and they have had real problems with their north sea business and offshore oil, so looking at it it looks horrendous, but in detail not quite so bad and the future looks a little brighter. this could have a big impact on the british car industry? a real game changing story. the company that owns usual and citroen are in talks, they have said in the last hour, to acquire the owners of vauxhall. this is general motors‘s entire european business. they say they are pushing ahead with that and if that goes ahead with that and if that goes ahead it will mean this company will lea pfrog ahead it will mean this company will leapfrog renault and go into second place in britain behind foakes wagon, so a lot of interest their for the a500 people who work for foxhole in luton and the other side —— work for as many as are of the

opinion, say ‘aye'. to the contrary, ‘no'.. opinion, say 'aye'. to the contrary, 'no'.. simon jack, thank you very much —— that work for vauxhall. the chairman of toshiba has resigned after the electronics giant announced it expected to post a full year loss of £2.7 billion. the company was forced to write off around £5 billion following problems with its american nuclear business. shares in the company have fallen sharply. let's speak to our correspondent in tokyo, rupert wingfield—hayes. what doesn't mean for their ambitions in this country? it has serious implications for toshiba's project in the united kingdom. the nuclear power station which toshiba isa nuclear power station which toshiba is a major shareholder in, the company or consortium planning to build the new power plant in cumbria is 60% owned by toshiba, and also the nuclear reactors, the three nuclear the nuclear reactors, the three nu clear rea cto rs the nuclear reactors, the three nuclear reactors they are supposed to build in cumbria, are toshiba designed. in a statement today the company said it will not consider

participating in the project carrying out actual construction work any more, and it will seek to sell its shares to interested parties. the consortium itself in the uk has released a statement saying that toshiba remains committed to the project, but that seems to be contradicted by the statement here released by toshiba in tokyo and puts in doubt that'll contract in tokyo and puts in doubt that'll co ntra ct if in tokyo and puts in doubt that'll contract if toshiba pulls out. rupert wingfield—hayes, thank you very much. police are investigating the death of a ten—year—old boy at a branch of topshop in reading. he suffered serious head injuries in an incident involving store furniture — and died later in hospital. the death is being treated as unexplained but not suspicious. 0ur correspondent duncan kennedy is in reading. yes, topshop has been closed all morning, understandably. the shutters are down. in the past hour or so reading borough council

extended a statement saying they offer their sympathies to the family offer their sympathies to the family of the ten—year—old boy involved and say its own inquiry is now underway along with that of the police investigation. this was the scene at topshop this morning. these pictures show it shattered and security guards outside. inside the lights we re guards outside. inside the lights were on and it was not clear if any staff or investigators were there. police were called there after reports of a ten—year—old boy being injured. they say it involved what they called shop furniture. they we re they called shop furniture. they were not any more specific and say it involved shop furniture. all they see is the boy was taken to the royal berkshire hospital and later died from serious head injuries. the reaction of local people who use the shopping centre was universally one of sadness. it isjust horrible. you just feel for his family. i really

do. yes, my thoughts go out to them, really. very sad. very sad. for the mother, the parents. i feel quite bad for the parents because they are... it is my daughter's age, sol think it is very sad. in a statement reading borough council said... police say the boy's death is being treated as unexplained but not suspicious. their inquiry into how a child could die in a shop involving shop furniture is continuing. well, that shop is expected to remain closed for the rest of today. we've just noticed in the past few minutes that a bouquet of flowers has been put outside in the shopping

centre here. the council themselves are sending a safety expert at some point today to start their investigation into just how this ten—year—old boy could die under these extraordinary circumstances. duncan kennedy, thank you very much. just after quarter past one. our top story this lunchtime: president trump's national security advisor, michael flynn, resigns over his contacts with russia, just weeks after taking office. and still to come, i will be reporting from the carlisle line here in cumbria with some wonderful pictures of the first steam train in england for nearly 50 is. coming up in the sport at 1:30pm, great britain's fed cup team have been drawn away to remainiac, the wait for a home tie goes on, 1993 the last time that they played on home

soil. the queen has opened a new national centre designed to improve britain's resilience against cyber attacks. the government says hackers are increasing in their frequency, their severity and their sophistication, and the national cyber security centre will make the uk the safest place to live and work online. 0ur security correspondent gordon corera reports. a high—tech tour for the queen today, as she formally launched the country's new national cyber security centre. she was shown round the new centre in london, whose mission is to protect the country against a growing tide of cyber attacks. cyber attacks, it seems, are everywhere. russian involvement in efforts to hack information... the worst case is that all of our customers' data has been accessed. china's activities in cyberspace is a significant source of concern. hacking that could hamper vote counting. hackers targeting governments, businesses, ordinary people. the head of the new centre told me the threat is real. told me

the threats are real. we've had significant losses of personal data, significant intrusions by hostile state actors, significant reconnaissance against critical national infrastructure. and ourjob is to make sure we deal with that in the most effective way possible. so, what we've done here is create a room of the near future and we've got some devices that are all connected to the internet. the new centre is notjust there to protect government, but also people's homes. its technical director showed me how internet—connected items like lamps and coffee makers could be vulnerable, even a child's toy doll. more and more of our life is moving online. the uk is one of the most digitally—dependent economies in the world. a strength, but also a vulnerability. and protecting it online in the future will be vital for economic as well as national security. gordon corera, bbc news. it's called the gig economy — the growing number of people who

consider themselves self—employed. well, today an inquiry‘s been launched into how they're treated by employers, and who should pay their tax. and with one in seven people saying they work for themselves, the potential loss to the treasury could be worth millions. 0ur economics editor, kamal ahmed, reports. they are the poster children of the new economy. the companies that drive us where we want to go or deliver our food. some are more controversial. zero hours contracts attacked for exploiting workers who have little job security. i think if we strengthen the voice of employees, that would go a long way. matthew taylor has been tasked by the prime minister to come up with a plan for the new world of work. he says that the amount of tax raised by the government has fallen because of the rise in self—employment. it is it's clear that to a certain extent what is actually going on is that people are creating forms of work for themselves, or businesses are creating forms of work, to try to avoid tax. now, i think what should drive

businesses is efficiency, productivity, innovation. not trying to evade taxes. so if we can make the system one where those incentives are slightly less strong than i think that would be an improvement. a new study by the union says the government could be losing up to £a billion a year in lower tax payments. that is made up of £2.1 billion lost from the rise in the self—employed, who pay less tax. and then there is the £1.9 billion lost from those on zero hours contracts, who tend to be lower paid. people are facing a triple whammy. workers are losing out on basic rights, the taxpayer is losing out on funding for the exchequer, to fund our schools and hospitals. but of course the taxpayer is also having to fund a higher in work benefits bill because very often the self—employment, zero hours work, is so low paid. theresa may has pledged not only to protect the rights of people often with multiple jobs but to enhance them. when matthew taylor's report comes out in the summer, expect new rights to decent employment and a duty

put on businesses to treat people fairly. the chancellor has already said he is looking at the issue of taxes lost. in the budget next month, expect changes, as the old world of how much we are taxed tries to catch up with the new world of work. kamal ahmed, bbc news. the father of a british soldier killed in iraq in 2007 has criticised proposals by the government to scrap the legal duty of care to service personnel in combat. it means they'll no longer be able to sue the government for negligence. the ministry of defence says the new scheme will mean more generous payments to anyone injured, or the families of those who are killed in combat. our legal correspondent clive coleman reports. how old was he when he first started playing the drums? he was about nine or ten. in 2007, colin redpath‘s son, lance corporal kirk redpath, a keen drummer in the irish guards, died when a roadside bomb exploded next to his lightly—armoured

snatch land rover in iraq. colin fought a six—year legal battle against the ministry of defence, eventually winning the right at the supreme court to bring an action against the government under human rights law. the mod‘s new proposals cover battle and the preparations for it. they include stopping legal claims for negligence against the mod in the courts, a no—fault compensation scheme for injured service personnel and families of those killed, assessors to value injuries and loss based on expert reports they commission. nobody disputes that it's a really good idea for service personnel injured in the course of combat, and the families of those who been killed, to be spared long and frustrating legal battles through the courts, but there are real concerns about the ministry of defence scrapping the duty of care that it owes to soldiers. the fire brigade, the police, the ambulance service, they all have to go out

with equipment that works, and the right equipment. and that should be the same for a soldier. and lawyers worry that bypassing the courts creates unfairness. you've suffered injury, you think that the lawyer, the organisation, the mod, is at fault, and yet you are asked to rely upon the mod to assess the compensation that it should pay you for the damage that it has caused you. that's not right. but the mod and defence secretary remain convinced of the need for change. what we are working on is a way of getting them faster and better compensation so that if the ministry has done something wrong with a piece of equipment they don't have to spend years suing us through the courts. the mod's consultation on its proposals ends injust over a week. colin redpath hopes that for the injured,

and families of the fallen, the new system ensures maximum safety and fairness. clive coleman, bbc news. around 200,000 people living close to america's tallest dam have been told it's still not safe for them to return home. the area around the dam in northern california was evacuated, after fears that it could collapse. they still don't know how long it could be before residents are allowed back. rising damp, holes in the front door and water coming through the roof — just a few of the problems that an investigation by bbc yorkshire has found in some social housing in england. councils have paid out more than £35 million in compensation and legal fees over the last five years. anna crossley reports. it's completely mouldy and the wall underneath is completely wet. and even our shoes are mouldy as well. as you can see here.

it's horrible. katrina pays leeds city council around £270 a month to live in a flat which is riddled with mould. although she hasn't taken the council to court, hundreds of other tenants have. like ewan's mum, anne. she says he and his brother sound like this all the time, even though they don't have colds. she claims it is because their rented house in leeds is so damp. social housing in leeds has such a bad reputation that claims management companies are now targeting the city, encouraging tenants to take the council to court. these firms identify properties which are in a poor state of repair, and then, for a finder‘s fee, pass on the tenant's details to a solicitor, who takes on the case. in a statement, leeds city council said... at a time when services

are being cut, many will question why councils are spending millions on compensation instead of fixing the problems in the first place. anna crossley, bbc news. the half brother of the north korean leader kimjohn the half brother of the north korean leader kim john and has the half brother of the north korean leader kimjohn and has been killed in malaysia. the bbc understands that the man, who was a5, is said to have been targeted at the airport in the capital, kuala lumpur. he was the capital, kuala lumpur. he was the eldest son of kim jong—il, who ruled north korea until his death in 2011. steam power returned to the railways this morning for the first time in almost half a century. a timetabled steam train service will run between appleby in cumbria

and skipton in north yorkshire for the next three days — and the first one left a few hours ago, with our correspondent denny savage on board. danny, how was it? simon, it was great to be on the train this morning with about 500 other people, they had all made a special day out tojoin this service. they had all made a special day out to join this service. i would say that the scene behind us probably hasn't changed much since the 19th century when this line was built. there was that other traditional site on this line today and the response from people has been phenomenal. at skipton station this morning, the sights and sounds of yesteryear pulled into the platform. it's a long time since the mid—morning service on a weekday attracted this sort of attention. which coach are you in? people turned out in their hordes to see the first timetabled steam train in england for nearly half a century. standard fares and discounts applied. you would normally pay a hefty

premium for a steam trip but not here, not this week. i think it's wonderful, i've just been watching all the steam and smoke going past the window and it's just fantastic. oh, it's great. i thought i would treat my wife for valentine's day, it's cheaper than a bunch of roses! what do you make of the valentine's present? yeah, really good. iam liking it, enjoying it. so, thank you! mark rand was one of the on—board guides. i know a lot of this has been done within the railway industry by a huge lot of goodwill and a huge lot of mates' rates for things that are normally very, very expensive. what price can you put on a day like this? but we might have to wait another 50 years for the next one! this is notjust about a trip on a steam train. for lots of people, it is a ride through the yorkshire dales countryside as well, and crossing the ribblehead viaduct.

it was the picture opportunity of the day. yes, you see this occasionally with special charter trains, but this was really special, because it was not a premium priced excursion. and the sun was shining. talking to some customers on the train who had travelled from essex, norfolk, just for the whole sort of romance of this, valentine's day, settle and carlisle railway on a steam train, how much better does it get? it's been a fantastic event. many people lined the route to see the train pass through. this may be the start of something special on britain's railways, the possibility of other timetabled steam services elsewhere. at the moment, the train is up the line at appleby and it will be passing back through here at about 3:15pm. there were some disappointed people at skipton who just couldn't get on. there are something like

6000 seats available on this steam service over the next couple of days, so the hope is that anyone who wa nts to days, so the hope is that anyone who wants to get on it will get on it. danny, thanks very much. aberdeenshire council has apologised, after trees were planted in the middle of a football pitch. here they are. unsurprisingly the new trees sparked a huge reaction on social media. one person wrote: "are they playing tree—a—side? " a council spokeswoman said they'd been planted to boost biodiversity in the area, but they have admitted they were, and they did say this, "barking up the wrong tree with plans for this site" time for a look at the weather. here's darren bett. changes for today, the