the bank of england puts interest rates up for the first time in ten years. the rise, to 0.5%, is an attempt to curb inflation. the bank's governor hints there could be more increases to come. with unemployment at a a2—year low, inflation running above target and growth just above its new lower speed limit, the time has come to ease our foot a little off the accelerator. the rise is good news for savers, but means many mortgages will get more expensive. i'm literally living... i wouldn't say on the breadline but very, very close. any hike in interest or supermarket bills affects me. we'll have full analysis of what this rate rise means. also this lunchtime: theresa may has appointed gavin williamson, the chief whip, as the new defence secretary following the resignation of sir michael fallon. the vast majority of people in

parliament do not get up to this kind of stuff and do behave pretty well. the chief executive of tesco gives evidence at the trial of three former executives accused of being involved role in a multi—million pound accounting scandal. there's been a sharp drop in the number of nurses from eu countries wanting to work in the uk. and coming up in sports... spurs boss mauricio pochettino says their convincing win over champions league holders real madrid shows they should be considered amongst the best teams in europe. good afternoon and welcome to the bbc news at one.

interest rates have gone up for the first time in a decade. the bank of england has increased the rate by a quarter of a percent, to 0.5%, as it tries to control inflation. the governor mark carney said households across the uk are "generally well positioned" to deal with the rate increase. here's our economics correspondent andy verity. the bank of england may look exactly as it did the last time interest rates rose, but the economy doesn't. in the ten years since the peak year of the housing and credit bubble, the amount we produce and earn has barely grown and that means we are more vulnerable to inflation. there it is, 0.5%... with unemployment at a 42—year low, inflation running above target and growthjust above its new lower speed limit, the time has come to ease our foot a little

off the accelerator. maggie and her husband live in streatham in south london. soon after buying their house the interest rate on the mortgage hit 1596. interest rate on the mortgage hit 15%. when rates dropped in the zero is she took an advantage to repay more than she had to. she is now paying less than 2% and can easily cope with the rate rise. money has been cheap for a long time and i'm very aware it could be going up for a long time. i'm surprised it's taken this long for them to do it. paying off while it is cheaper means i have less to pay off now. after last hitting a peak before the 2008 crisis, interest rates dropped to what was then a record low and stayed there for seven years, only to drop again in the wake of the brexit vote. all they have done is

taken back the quarter point cut they made last august after the brexit referendum when they were worried confidence might falter and spending might go down. they have taken their foot off the accelerator in terms of monetary policy but not much more than that. that prolonged period of ultralow interest rates may have helped keep the economy out of worse trouble but it's also have damaging effects, not just of worse trouble but it's also have damaging effects, notjust on savers. if you keep money ultracheap you encourage people to borrow more to buy assets like houses and that has pushed the prices of houses beyond the reach of many young people who would like to be able to afford their own home. while higher interest rate should make it more attractive to hold pounds, traders focused on warnings the next rise would not come soon. about half the country's families now on their own

homes and only a minority of them have the mortgage. the bank of england is confident now inflation hit its peak last month and families will be able to cope with higher interest rate. andy verity, bbc news. while the increase is good news for savers, it means millions of mortgage holders will see their monthly payments rise. our business correspondent theo leggett has been looking at how homeowners could be affected. when interest rates rise, millions of homeowners are affected but not eve ryo ne of homeowners are affected but not everyone will feel the impact straightaway. 46% of people with mortgages are on some form of variable rate. they will bear the brunt of the increase. the 54% on fixed rate deals won't see their costs go up straightaway but they will do eventually when the fix comes to an end. an increase of a quarter of a percent were about £15 per month to a typical £125,000

variable—rate mortgage. that might not sound like much, but for some homeowners it can make a huge difference. people like lynn, the owner of this house. she struggled financially since a car accident stopped her from working. i'm literally living... i wouldn't say on the breadline but very close and any hike in interest or supermarket bills affects me instantly. but other homeowners can afford to be more pragmatic. i have children and a mortgage already, they do go up andi a mortgage already, they do go up and i would be concerned. at the moment it's a case of trying to get the deposit, and more on your savings will help us out of it. while the rise may be bad news for some homeowners who will pay more on their mortgages, it is good news for save rs their mortgages, it is good news for savers who stand to get a better return from their investments. according to some analysts, this may be the first of several rate rises.

i don't think the increase will be that significant now but the likelihood is we will get a series of increases, maybe two or three over the next two or three years so it will start to have an impact on our everyday lives. after ten years without any interest rate rises, today's decision by the bank of england is highly symbolic. but the size and speed of future increases are what will be preoccupying borrowers and savers for months to come. 0ur economics correspondent andy verity is here. what is the significance of this, why are we seeing things like the shift in the pound? just put it into perspective, a lot of our viewers will remember when interest rate we re will remember when interest rate were 15% at the end of the 1980s, but to 17% soon after mrs thatcher came to power so this is small potatoes when you are talking about half a percent. a lot of people can

cope because only half of households on their home, less than half of them have a mortgage and of those, only half actually have variable rates so their mortgage rates won't necessarily go up. you mentioned the pound. in theory if interest rates go up, pound. in theory if interest rates go up, it is more attractive to hold pounds because that should push up the value of the pound but the markets have been expecting this. it is priced in and they are focused on what will happen next, the next interest rate rise. the indications there from the bank are that it will be very gradual so we are talking maybe another quarter point next year, maybe another quarter point after that the following year, 2019. very gradual, therefore if you are looking at holding pounds and the attractiveness of that, it is not so great perhaps as it was before the

markets got this statement. andy verity, thank you. the chief whip gavin williamson has been appointed defence secretary, following the resignation of sir michael fallon. he stood down last night, saying his conduct had "fallen short" of the required standards, after allegations of inappropriate sexual behaviour. sir michael is the first politician to quit following recent claims of sexual harassment in parliament. 0ur political correspondent iain watson reports from westminster. the man on the right is usually responsible for defending theresa may, especially from critics on her own side. now gavin williamson's job is to defend the nation. until this morning he was the chief whip, his task to keep tory mps in line and keep the prime minister in office. the prime minister's chief whip was swiftly replaced by this man, his deputyjulian smith. theresa may wa nted deputyjulian smith. theresa may wanted to avoid a wide—ranging reshuffle but the question now is

whether the rapid departure of the previous occupant of the ministry of defence might in turn lead to further resignations. i've spoken to people today at westminster who are convinced other stories of sir michael fallon‘s asked if you could emerge and it was his inability to guarantee there would be no further revelations that seems to have ended his career, but are there other ministers who may have done something in the past that will be judged unacceptable today? and what that put them in the firing line? people need to recognise there is now a very strong people need to recognise there is now a very strong set of rules about this kind of behaviour, we shouldn't pass it by and say that is a one—off. that has changed. i don't think necessarily you will see lots of ministers resign. the vast majority of people in parliament do not get up to this stuff. the leader of the scottish conservatives sees this as an even more dramatic moment. the dam has broken on this

now and these male dominated professions, overwhelmingly male dominated professions, where the boys on locker room culture has prevailed and it has been a bit of a laugh has got to stop. and a former parliamentary whip says changes are needed, not just to parliamentary whip says changes are needed, notjust to protect victims of harassment at westminster but also mps who might be wrongly accused. there needs to be an independent body i think established so people can have confidence in the system. justice doesn'tjust have to be done, it needs to be seen to be done and thatjustice includes not only protecting innocent mps but also condemning mps who are guilty. business as usual, that's the image the prime minister wanted to portray when she met her israeli counterpart at lunchtime. the problems may be less dramatic than those in the middle east, but it hasn't made her job at number ten any easier. iain watson, bbc news. in a moment, we'll speak our assistant political editor norman smith in downing street.

but first, jonathan beale is outside the ministry of defence. gavin williamson not someone i think with any particular experience in defence but what's in his in tray now? most people in and out of uniform in this bill —— building would have been googling him today. he hasn't got a military background so he will have to earn the trust of the armed forces. at the moment he's getting inundated with briefings, serious matters of state, about the nuclear trident deterrent, the air campaign against isis. he will essentially authorise raf air strikes. but the most serious immediate challenge he faces is trying to stave off more defence cuts. at the moment the government is having a mini review

and all the three services have had to put forward options for cuts. before michael fallon left he was trying to make the case for more defence spending. it will be interesting to see, and he will be judged on this, whether gavin williamson can stave off some of those cuts. let's get the latest from. —— from norman smith. theresa may lost a key ally last night, do we think there could be more of this to come? that is the big unknown and you sensed with this reshuffle the name of the game was all about safety first, for key ingredients — loyalty and stability. i suspect many outside westminster will be going gavin who? a man promoted to a hugely important position with no ministerial background, no defence background, as we were hearing, but someone who

is utterly loyal to mrs may, her chief whip, her eyes and ears and enforcer at westminster who meets with her every day to discuss strategy, who was one of her campaign managers in her leadership bid. behind him, she has appointed his deputy. you sensed mrs may is just trying to entrench her grip on this nervous on certain party. the hope will be it provides some stability after sir michael fallon's resignation, which opens up the way for minister after minister to be questioned whether they meet the highest standards of integrity. indeed borisjohnson was asked this morning whether he did. his answer, you bet. the danger is by this very limited cautious reshuffle, some in her party will see it as underlining mrs may's weakness, that she is now

unable to engage in a more dramatic, broader reshuffle and it's confined simply to promoting those she can trust. just a broader thought, norman, about the mood, the atmosphere at westminster at the moment. this is the first time to the last few days you and i and people like us haven't been focused on brexit and suddenly this topic has taken over, rightly or wrongly. what are people saying to you about that and the shift here?|j what are people saying to you about that and the shift here? i think there is a real sense now that this isa there is a real sense now that this is a controversy which is not going to be contained. every day there are new elements and it is very hard to see where it is going to end. the real significance perhaps in sir michael fallon's resignation is he has set the bar very high for other ministers in terms of their conduct because now any minister who over the past ten or 15 years might have

been guilty of some act of flotation or inappropriate conduct, they too will be expected to resign. so michael fallon, one of the most senior figures, michael fallon, one of the most seniorfigures, has michael fallon, one of the most senior figures, has resigned michael fallon, one of the most seniorfigures, has resigned because of that post, and that may make other ministers incredibly vulnerable. if you end up in a position where bits and pieces of the government are falling off as ministers are forced to resign at a time when mrs may's leadership is so fragile and the government has been buffeted by the gale force winds of brexit, that can only lead to a highly free braille and uncertain future for this government. norman, many thanks. two 14—year—old boys have pleaded not guilty to conspiracy to murder at leeds magistrates‘ court. the teenagers were arrested by counter terrorism officers on saturday in the northallerton area, after police raided a number of properties in the market town. 0ur correspondent megan paterson is in leeds. explain what's been happening. well,

the boys appeared in the court building behind me for around 15 minutes for the hearing earlier this afternoon. they stood in the dock, dressed in grey, flanked by two security guards as they heard the charges which they face read out to them. both boys face charges of conspiracy to murder. 0ne them. both boys face charges of conspiracy to murder. one of those boys also faces a charge of aggravated burglary. the court room was full today. the hearing lasted quarter of an hour. at the end of the hearing the boys were told they would be remanded in custody. they will be taken to a secure youth justice accommodation location and will next appear here in leeds, but at the crown court, on the 11th of december. megan paterson, thank you. two soldiers have been charged with negligence, following the death of three servicemen during an sas training course in the brecon beacons. craig roberts, edward maher and james dunsby were taking part in a 16 mile recruitment exercise on the hottest day of 2013.

an inquest found that neglect contributed to the deaths. the case will be heard in a military court where the maximum sentence is two years in prison. the chief executive of tesco, dave lewis, has been giving evidence at the trial of three former executives at the supermarket. they're on trial on fraud charges, in connection with an alleged multi—million pound accounting scandal. our business correspondent emma simpson is following the case at southwark crown court. what has the court been hearing? this was a big moment in this high—profile trial stopped today, we had the boss of britain's biggest retailer, taking the stand as a witness the prosecution, coming face—to—face with his three former senior executives, who are on trial for alleged fraud and false accounting. we spent the morning

learning about the chronology of events. leading up to the moment when dave lewis learned about this huge gap, or black hole, as it has been described, in the company's accounts. dave lewis, remember, only started this job is three weeks earlier, having been parachuted in to try to turn tesco around. things we re to try to turn tesco around. things were so bad he volunteered to start earlier than planned. it was a very unusual situation, he said. we had about a series of scheduled meetings with the tesco executive committee, which one of the defendants, christopher bush, the uk, former uk md, attended. dave lewis told them to alert him if they had any significant financial or reputational issue for the group. it wasn't until september the 19th, when dave lewis learned about the so—called legacy paper, which revealed a £216 million hole, or improperly recognised income. dave

lewis told the court he was shocked and surprised he'd never experienced anything like this before. what was new, he said, was the proposition here that £2116 new, he said, was the proposition here that £216 million of income had been included in the first half of the year, but on the basis of this paper now was deemed to be questionable. it was quite clear that having read it it need be taken seriously indeed. the three defendants deny the charges and the trial continues. emma simpson, thank you. our top story this lunchtime. interest rates go up for the first time in a decade — the bank of england increases them to 0.5%. and coming up. joy for houston, weeks after the devastation of hurricane harvey — the city's baseball fans celebrate a world series win. coming up in sport, england batsman

mark stoneman says he hopes that the way back for ben stokes. the influential all—rounder was excluded from the upcoming ashes series after his arrest back in september. theresa may willjoin her israeli counterpart benjamin neta nyahu tonight, to mark the centenary of the balfour declaration — when britain said it supported a national home forjewish people in what was then palestine. israel and jewish communities view the pledge as momentous. palestinians regard it as a historical injustice. 0ur middle east correspondent, yolande knell, reports. this museum exhibit in bethlehem shows the signing of a controversial letter which helped transform the middle east. it's british foreign secretary arthur balfour, 100 years ago. and this is actually the same declaration over here, where it says that the government views with favour the establishment

in palestine of a national home for the jewish people, but at the same time nothing shall be done which prejudices the rights of existing non—jewish communities. newsreel: a guardian of law and order... during the first world war, the ottoman empire collapsed and britain took control of palestine. it had a large arab majority, but the jewish population was growing. when lord balfour visited in 1925, jewish residents welcomed him warmly. the balfour declaration is now seen as a major step in creating the modern state of israel in 19118. balfour's text was deliberately ambiguous. but palestinians are taught that it sowed the seeds of their long—standing conflict with israel. the current lord balfour takes

a special interest in the middle east and this centenary. i think we should commemorate it rather than celebrate it. i don't think we can celebrate while we have this friction. now the israeli prime minister is in london for the anniversary of the balfour declaration. but palestinians are angry. they feel the uk owes them an apology for what they see as an historical injustice. the uk has rejected the call, saying it will mark this occasion with pride. yolande knell, bbc news, jerusalem. 0ur diplomatic correspondent james robbins is in downing street. theresa may and benjamin netanyahu meeting this lunchtime. this is a difficult balancing act for the prime minister here? it is a very

difficult balancing act for theresa may, who is meeting israel's prime minister, benjamin netanyahu, behind me in number ten. i'm looking up at the foreign office, where of course the foreign office, where of course the balfour declaration was drafted a century ago. it went through many d rafts. a century ago. it went through many drafts. they recognised the sensitivity of what they were sitting down on paper and history still hangs heavily today, i think. a very divided history, a very divided interpretation of the declaration between israelis and palestinians. so theresa may i think this evening will be saying in a speech at a dinner to mark the centenary that britain is proud of the part, the pioneering role which britain played in the creation of the state of israel lost but in case you thought that was an absolute endorsement of the balfour declaration, she'll also make clear that she is i think said in front of benjamin netanyahu in number ten that britain recognised with the sensitivities of all of this. we remain committed, she said, the prime minister, to a two state solution. in other words a viable,

independent palestine, alongside israel, something that still only remains a israel, something that still only remainsa dream. israel, something that still only remains a dream. benjamin netanyahu has been more forthright on his way here from israel. he said there was much to celebrate, a milestone in the establishment of israel. the palestinians on the other hand feel they were dispossessed and that the declaration set them on a path to disaster. james robbins, many thanks. there's been a sharp decline in the number of nurses from european union countries wanting to work in the uk. the nursing and midwifery council says there was a drop of nearly 90% in new registrations for eu nurses, compared to the same period the year before. the department of health says an increase in training places will compensate for the fall. 0ur health correspondent sophie hutchinson has the details. around one in every 20 nurses and midwives working in the uk was trained in the eu. many are from spain, portugal, poland and romania. but according to new figures, the numbers are declining. the nurses and midwives' regulator, the nmc, says in the year to september 2016, more than 10,000

joined the uk register. but this year that fell dramatically, to around 1000. and the number of eu nurses already working here who decided to give up their uk registration rose by 67%. it's a worrying trend, and for those who are responsible for thinking about what we need in the future, so the nurses and midwives we need in the future to care for us, they'll obviously look at this and think what can we do to reverse that trend. in the aftermath of the referendum a campaign was launched to support eu staff in the nhs, but today's figures suggest that's not been enough reassurance and many eu nurses are no longer keen to work in the uk. there's a shortage of nurses across the world. they've got a choice and with that level of uncertainty what we're seeing is that our nurses are beginning to leave us to work elsewhere and that's really difficult for us here, i think.

those who represent nhs hospital trusts and others say nurse recruiters have been concerned about the situation for some time. the vast majority of hospitals are telling us they are finding it increasingly difficult to recruit from overseas. the numbers will come as a concern, but fortunately not a surprise to them. —— but unfortunately not a surprise to them. many of them are still going out to europe and the rest of the world to recruit nurses and doctors from overseas, but it's becoming increasingly challenging at the moment. nurse leaders have described the sudden lack of interest from eu nurses in working for the nhs as alarming. it's estimated the nhs is already 40,000 nurses short, but the government has said it's ensuring the nhs has the staff it needs through a 25% increase in nurse training places. sophie hutchinson, bbc news. just weeks after suffering the devastating effects of hurricane harvey, the people of houston in texas have something to celebrate. the city's baseball team, the houston astros, have won

the world series for the first time — beating the famous los angeles dodgers. katie gornall reports. every baseball team dreams of a world series win. perhaps the houston astros needed one. we did it! we are history! nine weeks ago the players returned home from a road trip to find their city devastated by hurricane harvey. for the people here in houston, their dramatic journey to the the people here in houston, their dramaticjourney to the top has been a welcome distraction. the astros have never won the world series before and face the daunting task of playing the deciding game seven in front of a boisterous los angeles crowd. but if they felt the weight of history on their shoulders, they wore it lightly. commentator: into the dugout. an early mistake from the dodgers allowed houston a foothold in the game and they never

looked back. a home run for the series' most valuable player george springer putting them five runs ahead in the second inning. springer stays hot. but for the dodgers' picture, yu darvish, it was disastrous. in a series that has swayed one way, then the next... the houston astros are world champions. houston astros are world champions. houston managed to avoid any late drama, closing out grain seven for a famous victory. the people of houston have gone through a tough time and we've never won, 56 years, our first championship so it will be fun in houston. and one of the sport's most memorable finish would be given a script writer's finish. will you marry me? carlos correa

proposed to his girlfriend during the post game celebrations. of course, she said yes. for houston this was a hollywood ending. katie gornall, bbc news. the publisher of the collins dictionary has announced its word of the year — and it's something that's become a catchphrase for president trump. fake news. fake news. fake news. collins says the use of the term "fake news" has risen by 365% since last year. collins defines it as "false, often sensational stories spread under the guise of news reporting". 0ther phrases which have made the list include "gender fluid", and "fidget spinner", a popular children's toy. the full truth coming up now, with the weather. nothing fake about my forecast. another lovely autumn day forecast. another lovely autumn day for many areas, including the northern half of the country, which