tv BBC News BBC News March 23, 2022 5:00pm-6:01pm GMT
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this is bbc news. the headlines. as the cost of living rises at the fastest rate in 30 years, the chancellor announces new measures to soften the blow, including a 5p cut in fuel duty. a hike in national insurance tax will go ahead from april, but the threshold for the amount people need to earn before they start to pay it will also rise. the chancellor defended his measures, and said a cut in income tax will happen before the end of 202a. my will happen before the end of 202a. tax plan delivs to my tax plan delivers the biggest cut to personal taxes in over a quarter of a century, and i commend it to this house! the truth is people can no longer afford _ the truth is people can no longer afford the — the truth is people can no longer afford the conservatives. working
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families _ afford the conservatives. working families can't, pensioners can't and businesses — families can't, pensioners can't and businesses can't. the uk's public finance watchdog says households will see disposable income fall by the largest amount in a single year since records began. we are here in darlington, finding out if more cash for councils will help with the cost of living. in other news, the prime minister tells the commons he believes p&0 broke the law when they fired hundreds of staff last week without proper consultation. just hours after they're re—opened, the taliban shut down secondary schools for girls, with many left broken—hearted by the ruling. and the women's world number one, australia's ash barty, says she's hanging up her tennis racket at just 25 years old.
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good afternoon. the chancellor, rishi sunak, has unveiled his spring statement in the house of commons. his update on the state of the country's finances comes as the cost of living continues to soar — with figures released this morning showing prices rose by 6.2% in the 12 months to february — the fastest for 30 years. let's take a look at what was announced, starting with three immediate measures. )the chancellor announced help for motorists, with fuel duty cut by five pence per litre. the cut will come into force at 6pm tonight and last until march next year. (ani)vat is being abolished on insulating homes, such vat is being abolished on insulating homes, such as using solar panels or heat pumps, for the next five years. in northern ireland, it will be funded differently. the government's household support fund — money for councils to support vulnerable households — will be doubled to £ibn with £500 million of new funding. local authorities will receive money from april. further out, from july —
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the threshold for paying national insurance will increase by £3,000. that means people must earn £12,570 per year before paying income tax or national insurance. and, in his final announcement, the chancellor pledged that before the end of this parliament in 2024, the basic rate of income tax will be cut from 20p to i9p in the pound. but labour accused the government of making the wrong choices, and of failing to grasp the financial pain facing millions of families. and the office for budget responsibility — the uk public finances watchdog — says we'll see our disposable income fall by the largest amount in a single year since records began more than 60 years ago. here's our political correspondent, iain watson. is this the chancellor looking at his growing energy bills? well, actually, he's poring over his spring statement, a mini budget, and is under pressure to do more to tackle
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the cost of living. prices are rising at the fastest level in 30 years outstripping increases to wages and benefits. is there more pain to come, chancellor? and if you think you're really feeling a pinch right now, the message from the chancellor today that you may have seen nothing yet. statistics published this morning show inflation in february was 6.2%, lower than the us and broadly in line with the euro area. disruptions to global supply chains and energy markets combined with the economic response to putin's aggression mean the 0br expect inflation to rise further, averaging 7.4% this year. but there was a little bit of brighter news — borrowing is lower and the money coming into the treasury is higher than previously forecast,
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which is why notjust the opposition, but many conservative mps, too, have been pressing the chancellor to loosen the nation's purse strings. he said it was important that help was targeted where it is most needed and a cut in fuel duty was widely welcomed. today, i can announce for only the second time in 20 years, fuel duty will be cut, not by one, not even by two, but by 5p per litre. the much bigger demand was to ditch the planned rise in national insurance contributions, in effect a tax increase. the chancellor didn't do that but he did ensure fewer people would be hit. it would have started to affect those earning just under £10,000 per year, but by raising the starting point for paying national insurance, more lower paid workers will now be entirely exempt and many more will have a lower overall tax bill. from this july, people will be able to earn £12,570 a year without paying a single penny of income tax or national insurance.
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that is a £6 billion personal tax cut for 30 million people across the united kingdom. however grim the immediate outlook, the chancellor wanted to offer the prospect of a brighter future, an income tax cut. though not now, but later in the electoral cycle. i can confirm before the end of this parliament in 2024, for the first time in 16 years, the basic rate of income tax will be cut from 20p to 19p in the pound, a tax cut for workers, for pensioners, for savers, a £5 billion tax cut for 30 million people. and let me be clear with the house, it is fully costed and fully paid for in the plans announced today. labour called for the national insurance rise to be scrapped entirely. the shadow chancellor argued that
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in the cost of living crisis it's the energy companies and not the consumers that should be shouldering a bigger burden. when i set out labour's plans for a windfall tax injanuary, we estimated that it would have raised £1.2 billion. now, because of the continued rise in global oil and gas prices, it would today raise over £3 billion. that's money that could be used to help families and pensioners and businesses with a cut to vat, a real brexit dividend that would help working families and pensioners across our country. the snp called for the chancellor to do more for people across the uk who are on benefits. the scottish government by contrast is doing what it can— within its limited budget to support people uprating the eight _ social security benefits - we control by 6%, increasing the scottish child payment to £20 a week, a lifeline to families. -
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this government should be doing the same. - the lib dems said the chancellor's announcement didn't match the scale of the problem. people are drowning with those higher energy bills, motoring costs, food bills, they needed a lifeboat they needed a lifeboat and the chancellor's utterly failed them. even before today's spring statement rishi sunak has been insisting that he has offered real help to hard pressed families, including a reduction in council tax for most households in england. he's also been meeting conservative mps privately, and some of them have been telling me they're not quite sure he's grasped the scale of the crisis. they'll be pleased at the prospect of tax cuts, but they'll also be closely scrutinising the chancellor's more immediate measures, though the verdict ultimately will lie with the voters. iain watson, bbc news, downing street. 0ur political correspondent
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jonathan blake is at parliament. the chancellor saying he can't protect everyone from all of the hardships. he protect everyone from all of the hardships— protect everyone from all of the hardshi s. . , , hardships. he warned himself in his statement today _ hardships. he warned himself in his statement today that _ hardships. he warned himself in his statement today that even - hardships. he warned himself in his statement today that even if - statement today that even if economic conditions feel particularly bad, they could get worse. we knew before the chancellor �*s book today that he was highly unlikely to unveil estate information today. we were not expecting him to scrap or delay, but he had promised to help people where he had promised to help people where he could terms of mitigating the impact of the rising prices and bills that so many people are facing. the question was how far would he go. he also eliminated duty
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on fuel. he increased the threshold for the insurance rise which means people on lower incomes won't necessarily have to pay for a little longer before they earn more. there was a big political crowd pleaser of a promise to cut the basic rate of income tax before the end of this parliament. but after he made his statement, there was a huge clunking reality checkin there was a huge clunking reality check in the form of the official forecast put out by the government's official economic forecast. it showed a very bleak picture about the state of the economy at the moment, continued rising inflation, growth slower than expected and living standards in general. some
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measures announced by the chancellor which he hopes will go some way. but the economic conditions remain incredibly difficult, and he hopes that they won't get too much worse in orderfor that they won't get too much worse in order for that cut in that they won't get too much worse in orderfor that cut in income that they won't get too much worse in order for that cut in income tax to be able to go ahead. indeed, a lot of the analysis shows that overall, he's a chancellor that has increased taxes rather than reduced them. , ., . . increased taxes rather than reduced them. , ., ., ., ., ~ i. , increased taxes rather than reduced them. , ., ., ., ., ~ , . among the announcements, a cut to the basic rate of income tax from 20p to 19p before the end of the current parliament. 0ur economics correspondent andy verity is here and has been looking at the detail. i'v e i've heard that so many times this afternoon! he will make far more
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sense. i afternoon! he will make far more sense. ., , afternoon! he will make far more sense. .,, , , afternoon! he will make far more sense. , , ., sense. i hope so. this is all auainst sense. i hope so. this is all against a — sense. i hope so. this is all against a picture _ sense. i hope so. this is all against a picture of - sense. i hope so. this is all against a picture of surging | against a picture of surging inflation. you can look at how inflation's doing in the last 30 years. we have the highest. it's shows how low it's been as much as how high it is now, but it's not going to stop there. the prediction was it would settle down where the orange line is, but it's now predicted it will shoot up where that red line is. 8.7% is the prediction for where it will peak, an average of seven point —— 7.4%. although you have wages, they won't be enough to keep up. that nasty little red line is the size of the falling living standards that's been predicted by the office for budget responsibility, twice the size of the falls back here in the 1970s.
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it's very serious, and we asked richard, the director of the office, to give us his assessment.- to give us his assessment. higher ener: to give us his assessment. higher energy prices _ to give us his assessment. higher energy prices are _ to give us his assessment. higher energy prices are expected - to give us his assessment. higher energy prices are expected to - to give us his assessment. higherl energy prices are expected to push inflation _ energy prices are expected to push inflation up to 8.7%, the highest in over 40 _ inflation up to 8.7%, the highest in over 40 years. that has a knock—on effect _ over 40 years. that has a knock—on effect iiving — over 40 years. that has a knock—on effect living standards. taxes and benefits _ effect living standards. taxes and benefits are going up from this april. — benefits are going up from this april, meaning living standards fall by over— april, meaning living standards fall by over 2%, april, meaning living standards fall by over2%, and april, meaning living standards fall by over 2%, and that's the biggest since _ by over 2%, and that's the biggest since records began. if by over 2%, and that's the biggest since records began.— by over 2%, and that's the biggest since records began. if you spend on thins like since records began. if you spend on things like energy — since records began. if you spend on things like energy and _ since records began. if you spend on things like energy and petrol, - since records began. if you spend on things like energy and petrol, you i things like energy and petrol, you don't have as much to spend on everything else, therefore activity and the rest of the economy reduced his. we do have a forecast back in october that we had 6% economic growth this year as we bounce back from the pandemic. that's quite a rapid rate. that forecast has dropped to 3.8%, still more than we normally grow by, but not have as much of a bounce back as was previously expected. let's have a look at the measures that rishi sunak is bringing in to try to help
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households whether this crisis. 0ne households whether this crisis. one thing he's done is cut the duty of fuel, about 5p off from the current price of about £1 65. nothing like enough to wipe off the rise that we've seen. you also have what he's doing to national insurance. although he's raising it, he's also raising the threshold. you won't pay any national interest for you earn more than... that will help most sections, but he's promising into years, we an income tax cut of a penny and a pound to 19%. that's a promise from a chancellor who, before the election, said we would
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not raise taxes at all. even if we do get that through, pauljohnson had his assessment of how much it would help green you take it out of three big changes. .the would help green you take it out of three big changes. ._ three big changes. . the second is the increase _ three big changes. . the second is the increase in _ three big changes. . the second is the increase in the _ three big changes. . the second is the increase in the point _ three big changes. . the second is the increase in the point which - three big changes. . the second is| the increase in the point which you start— the increase in the point which you start the _ the increase in the point which you start the bay— the increase in the point which you start the pay those _ the increase in the point which you start the pay those contributions, i start the pay those contributions, but thirdly, — start the pay those contributions, but thirdly, a _ start the pay those contributions, but thirdly, a reduction _ start the pay those contributions, but thirdly, a reduction over- start the pay those contributions, but thirdly, a reduction over time| but thirdly, a reduction over time in the _ but thirdly, a reduction over time in the point — but thirdly, a reduction over time in the point in— but thirdly, a reduction over time in the point in which _ but thirdly, a reduction over time in the point in which you - but thirdly, a reduction over time in the point in which you start - but thirdly, a reduction over time in the point in which you start toi in the point in which you start to pay income _ in the point in which you start to pay income tax _ in the point in which you start to pay income tax. all _ in the point in which you start to pay income tax. all of _ in the point in which you start to pay income tax. all of that - in the point in which you start to - pay income tax. all of that together - and _ pay income tax. all of that together - and there — pay income tax. all of that together - and there are— pay income tax. all of that together — and there are big _ pay income tax. all of that together — and there are big losers _ pay income tax. all of that together — and there are big losers among i pay income tax. all of that together| — and there are big losers among all higher— — and there are big losers among all higher earners— — and there are big losers among all higher earners - _ — and there are big losers among all higher earners — people _ — and there are big losers among all higher earners — people on- — and there are big losers among all higher earners — people on low- higher earners — people on low earnings. — higher earners — people on low earnings. some— higher earners — people on low earnings, some of— higher earners — people on low earnings, some of them - higher earners — people on low earnings, some of them will. higher earners — people on low| earnings, some of them will do higher earners — people on low- earnings, some of them will do well at tivoli _ earnings, some of them will do well at tivoli well — earnings, some of them will do well at tivoli well for— earnings, some of them will do well at tivoli well for that _ earnings, some of them will do well at tivoli well for that increase. - earnings, some of them will do well at tivoli well for that increase. —— l at tivoli well for that increase. —— relatively but _ at tivoli well for that increase. —— relatively. but others _ at tivoli well for that increase. —— relatively. but others will - at tivoli well for that increase. —— relatively. but others will lose - at tivoli well for that increase. ——| relatively. but others will lose out and in spite of the fact that the chancellor was spending more money in the spring statement, it's not enough to really offset the heavy blow for household finances which is
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the living standards this year but dropped by more than they have in about 60 years of.— dropped by more than they have in about 60 years of. thank you, andy. very difficult — about 60 years of. thank you, andy. very difficult decision _ about 60 years of. thank you, andy. very difficult decision for _ about 60 years of. thank you, andy. very difficult decision for people - very difficult decision for people to make. notjust a matter of money management. here with me now is money saving expert, martin lewis. —— in a little while. the prime minister borisjohnson has said the government will be taking legal action against p&0 ferries after it sacked 800 staff without consultation last week. earlier, ourtransport correspondent katy austin gave me the background to this. yesterday, the boss of p&0 ferries, peter hebblethwaite, wrote a letter to ministers where he said he didn't think an offence had been committed when it comes to notification requirements that employers in the uk are meant to follow if they planned to make large numbers of staff redundant. he said that actually no rules had been broken there because these he said that, actually, no rules had been broken there because these workers were employed by a jersey—based arm of p&0 ferries and actually, the vessels they were working on were not uk they were working on weren't uk
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registered, so he said that meant that no rules had been broken. but today, we heard the prime minister say in the house of commons at prime minister's question time, "it looks to me as though the company "concerned has broken the law and the government would therefore "be taking action and also encouraging workers to take action "to do with employment rights," their employment rights in this situation. this afternoon, some employment lawyers have said, or have questioned whether the government can take legal action in the way the prime minister was suggesting because of an amendment to the act, the bit of legislation they were talking about there. we haven't yet really had a full explanation from the government about what they meant by that and what their plans are, the grounds for their legal action in detail there. meanwhile, today, we have for the first time had an apology from mr hebblethwaite of p&0 ferries saying he is sorry to workers and their families, but also saying he felt this was the only option and it was a difficult decision,
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but all other courses of action, he indicated, would have meant the company went under, there would be no p&0 ferries anymore. so, despite the political pressure we've heard and despite today's developments, there's no sign that p&0 ferries is looking to change course here and it looks to be still trying to get its ferries ready to sail again onto their new crews at some point. a number of people are being treated for breathing difficulties at the aquatics centre in the queen elizabeth park in stratford in east london after a high quantity of chlorine gas was released. the centre was evacuated and 29 patients were take to hospital and a further 48 patients were assessed at the scene. people nearby have been asked to close their doors and windows. the head of nato says it will approve huge increases in the forces deployed to eastern europe following russia's invasion of ukraine. jens stoltenberg will discuss the plan with members of the alliance tomorrow.
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0n the ground, it's been reported that ukrainian forces have retaken the town of makariv, west of kyiv, and are also attacking russian forces in the south of the country. the southern town of voznesensk has already seen off an attack by the russian army. but in the port of mariupol, ukraine's president, volodymyr zelensky, says around 100,000 civilians are now trapped without food, water or heat. officials say russian bombing raids have turned the city into "ashes". 0ur correspondent james waterhouse has this report from kyiv. this war was always russia's invasion, but it's also become a story of ukraine's resistance. a story of ukraine's resistance, and today, fight back. makariv, to the west of kyiv, has reportedly been retaken. the regional chief of police there posted this patriotic video, complete with dramatic music.
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russia isn't stopping, though. it continues to bombard mykolaiv, where tamara is in labour. translation: it's scary, - but not as much as on february 24, when the russians began to shell mykolaiv from all sides. over time, every day, you get used to it, more and more. you get used to it, more and more, especially when the explosions are somewhere far away. it seems like they're in another state. and then yesterday, here, near the hospital, just 500 metres opposite the maternity hospital, it became scary again. doctors say there's been a new wave births here, caused by women going into labour through stress. in the south—east, president zelensky reckons there'll soon be nothing left of mariupol, where 100,000 people are still trapped. however, one of the bosses at the city's port has told the bbc it's still intact, reflecting how strategically significant the russians see it. in a kyiv hospital, 0la recovers after a shell landed close to her home. she shielded her one—month—old daughter with her body, meaning victoria wasn't hurt. translation: | woke up - with her screaming, accompanied
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by the sound of glass crashing, fire cracking. it was like a catastrophe. ijust heard her shouting. here in the capital, people are making the most of the curfew ending, as well as this warm spring sunshine, to claw back some lost normality in their lives. the sound of artillery and light gunfire can occasionally be heard echoing through neighbouring streets as both sides start digging. ukraine's government has announced nine new temporary ceasefire to try and help people escape the fighting. more sanctions, economic punishments, are expected to be announced by us president joe biden today. so far, they haven't slowed the fighting at all. james waterhouse, bbc news, kyiv. let's return to the spring
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statement. we are joined let's return to the spring statement. we arejoined by let's return to the spring statement. we are joined by martin lewis. thanks very much for being with us. it's better than expected but nowhere near enough. you're right, we're not in normal times. we are standing on the precipice of a personal—finance catastrophe. the chancellor is now the only person with the tools in order to pull it back. the biggest price rides energy hits on the 1st of april, and so, i think whatever it was named, whether he wanted to call it a budget or a spring statement, this was a moment that he had to step up and help people. he has helped to an extent, but not the extent that is needed. you are so talking recently and said
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don't be beguiled by the narrative that this is all about ukraine. to what extent do you think the chancellor is trying to rely on ukraine to explain the situation? it's interesting because of making that statement, must be careful not to shift this to a narrative blame, because then you can say look at the terrible suffering of the people in ukraine, we're all going to have to tighten our belts to help them. he did interestingly say that ukraine has made it worse, but these price rises were already in place. i think these are the warnings to be careful not to spend that one. ukraine has made things a lot worse, but they were already pretty bad to begin with. we had help on energy bills that came out and february. i was hoping for a lot more help to come out, and in the energy of specific area, which is the biggest problem
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most families will face on top of everything else, we didn't get enough. everything else, we didn't get enou:h. , ., ., , ., enough. there will be a doubling of the household _ enough. there will be a doubling of the household support _ enough. there will be a doubling of the household support fund, - enough. there will be a doubling of the household support fund, which| the household support fund, which comes to the most vulnerable through councils through half £1 billion. how far is that going to go when we look at this scale of the price rises? �* , ., look at this scale of the price rises? �*, ., ., , ., look at this scale of the price rises? �*, ., ., ., , rises? it's not actually a doubling. if ou rises? it's not actually a doubling. if you forgive _ rises? it's not actually a doubling. if you forgive me, _ rises? it's not actually a doubling. if you forgive me, there's - rises? it's not actually a doubling. if you forgive me, there's a - rises? it's not actually a doubling. if you forgive me, there's a £500 | if you forgive me, there's a £500 million budget until march 31. it does not roll over. there's a new budget after that of £500 million. that doesn't necessarily add up to £1 billion. but that household support fund is very useful. i tend to think of it as the starving or freezing fund. it is absolute emergency mining distributed by councils who can't feed themselves —— emergency money. it's right at the very crisis end of the market, and if necessary, and i'm thankful the chancellor has done more on it. but it will not help that many
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people because of the scale of the problem. wejust people because of the scale of the problem. we just have to understand, i'm sorry for keep going on, but is at the centre of this. by october, the likely prediction is the typical household bill will be over £2500, which is a £1300 year on year increase. everything we hear coming from the chancellor, you have to measure against just the from the chancellor, you have to measure againstjust the increase in energy alone, and i'm not including the council tax, the broadband, the food, the fuel prices, etc. just compared to energy, everything that is being given here, everything in the statement. the most you could be getting a hold of the national insurance is 360 quid. very few will get that. if you take the other energy measures, the £150 rebate for people in the october £200 loan which is not very popular. all added together gets you to about 600 quid,
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half of the rise in energy, and most people won't get all of that. we are still in a very dangerous precipitous time right now, and i hope the chancellor is open to doing more if the predictions are going to come to fruition.— come to fruition. that's when we exect come to fruition. that's when we expect the budget _ come to fruition. that's when we expect the budget as _ come to fruition. that's when we expect the budget as well. - come to fruition. that's when we expect the budget as well. but l come to fruition. that's when we . expect the budget as well. but what room for manoeuvre does he have between now and then, given things will get a whole heap worse? taste between now and then, given things will get a whole heap worse? we saw interestingly — will get a whole heap worse? we saw interestingly when _ will get a whole heap worse? we saw interestingly when we _ will get a whole heap worse? we saw interestingly when we know - will get a whole heap worse? we saw interestingly when we know what - will get a whole heap worse? we sawj interestingly when we know what was going to happen, the day the april price cut was announced, the chancellor — and things were juggled about — the chancellor came out and gave extra support in energy at that point. we're going to have a similar issue going on. i think it will be the beginning of september when we hear what the october price cap is. that is likely to be going up substantially again, so there is
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another point there where the chancellor could make an announcement on support for energy bills. he doesn't like to do that. he prefers to stick to the main set pieces, but these are not normal times. no one can play by the standard rules. we are in a month by month emergency crisis. i've been a money—saving expert for over 20 years, and this is worse than the financial crash. this is worse than covid to cut some extent. this is the worst situation we've seen, and you can't expect to wait until october. people's mental health is 0ctober. people's mental health is at risk. there is so much anxiety out there about what's going on with the cost of living crisis. 0n fuel bills, i'm seeing people move from heating the home to heating the human, where theyjust put themselves in sleeping bags because they can't afford the heat. this is not a normal time for one of the richest countries in the world, and
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i hope the chancellor realises that and not leave people waiting till 0ctober. and not leave people waiting till october. ., . ., ., , and not leave people waiting till october. ., . ., , october. the chancellor has been talkin: , october. the chancellor has been talking. and _ october. the chancellor has been talking, and he _ october. the chancellor has been talking, and he says _ october. the chancellor has been talking, and he says this - october. the chancellor has been talking, and he says this will- october. the chancellor has been talking, and he says this will be l talking, and he says this will be the biggest net cut to tax and a quarter of a century. he was putting billions of pounds back into british families' pockets but can't protect everyone from all of the global challenges. how much sympathy do you have that statement? let’s challenges. how much sympathy do you have that statement?— have that statement? let's remember he said... have that statement? let's remember he said--- that— have that statement? let's remember he said... that includes _ have that statement? let's remember he said... that includes a _ have that statement? let's remember he said... that includes a tax - have that statement? let's remember he said... that includes a tax cut - he said... that includes a tax cut in 2024. that does nothing to help the immediate cost of living crisis, that seems to me like a noun announcement that will not be in a general election. billions of pounds aren't that sick stamp show when we talk about the problem. it was above
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and beyond what expected, and i think giving people the energy situation is so bad. something needs to be done about that, so i understand that he wants to obey the golden rule and he has to look at the economy. but i think that the pendulum did not swing far enough in terms of giving people the money they need, so i have some sympathy. he has a very difficultjob in a job i would not like myself, but i still think more needed to be done. it is not his money. he is a custodian of the finances of the country. i would have liked to seen a little more spent on the people who are struggling. spent on the people who are struggling-— spent on the people who are stru~lin~. , ., ~ spent on the people who are stru~lin~. , ., struggling. martin lewis, thank you very much- —
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we're going to take a look at the weather. good afternoon. temperatures have again been up around 20 degrees and places. this is how it looks for most places. we have seen some speckled clouds across eastern england and scotland, and one or two showers here. any showers will fade tonight. clear skies and symphonic patches here and there, and despite the fact there's been a warm day, we are expecting quite a chilly night at this time of year. can often lead to chilly nights, and a touch of frost for some. fog in some places. mist around, but sunny spells tomorrow, although for scotland and northern ireland, a bit more in the way of cloud creeping in. temperatures
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15-19 cloud creeping in. temperatures 15—19 degrees, another warm day. it staves warm as we head through friday and the weekend. with more cloud, brace yourself for a big change next week. there may even be wintry showers for some. hello, this is bbc news. the headlines. as the cost of living rises at the fastest rate in 30 years, the chancellor announces new measures to soften the blow, including a 5p cut in fuel duty. a hike in national insurance tax will go ahead from april, but the threshold for the amount people need to earn before they start to pay it will also rise. the chancellor defended his measures, and said a cut in income tax will happen before the end of 2024. the uk's public finance watchdog says households will see disposable income fall by the largest amount in a single year since records began.
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in other news, the prime minister tells the commons he believes p&0 broke the law when they fired hundreds of staff last week without proper consultation. just hours after they're re—opened — secondary schools for girls, with many left broken—hearted by the ruling. and the women's world number one, australia's ash barty, says she's hanging up her tennis racket at just 25 years old. let's return to the reaction to the chancellor's spring statement. after speaking in the house of commons today, rishi sunak went to south london — and was asked what today's announcements will do for those on low incomes and universal credit. as we have done for throughout the last few years we will stand by people and particularly those most vulnerable in our society. that is why we improve the generosity of universal credit, we cut the tape array, rewarding those in work and making sure they could keep more of what they earn whilst on universal credit.
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today we announced half a billion of extra funding for local councils to support those most vulnerable in their areas. the best way to help people on welfare over time is to support them to get into work, i am glad there are record numbers ofjob vacancies and unemployment is back to the low levels before the pandemic. for everyone in or out of work, they face the biggest squeeze on living standards since records began in the 1950s. i wonder how you felt when you saw that figure from the 0br and whether you think you can do any more for those people? we are facing the same challenges that many countries around the world are facing and that is rising prices and high inflation. inflation here is running lower than it is in america, similar to what is happening in the euro zone. there is uncertainty ahead but i cannot protect everyone against the full impact
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against those global challenges. but where we can make a difference, of course well and that is why the policies announced today are a significant intervention. they will put billions of pounds back into the pockets of hard—working british families. it presents the biggest net cut to personal taxes in over a quarter of a century. we all know you want to be a tax—cutting chancellor, but your income tax cut doesn't come in for two years and you are raising the national insurance threshold. national insurance is something that is going up. the overall burden is going up, against maybe what are your instincts? we announced today a historic rise in the national insurance threshold which delivers a tax cut for 30 million people, with £6 billion. it is the biggest tax cut in a decade, a typical worker will be £330 better off as a result of our policies. 70% of workers will pay less tax, even accounting for the new levy and we have also announced the first income tax cut in over 16 years
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to come in in 2024 when the economic picture has improved. i intend to deliver on that and this is a conservative government putting billions of pounds back into the pockets of ha rd—working british families. joining me now is richard hughes, the chair of the office for budget responsibility. thank you very much forjoining us. set out if you would, in those stark terms just what households are facing in terms of the impact on the standards of living. taste facing in terms of the impact on the standards of living.— standards of living. we are forecasting _ standards of living. we are forecasting him _ standards of living. we are forecasting him relation i standards of living. we are forecasting him relation to| standards of living. we are i forecasting him relation to peak around 9% but it a point present as of 40 maggie or hyperinflation. and because inflation is outpacing earnings and also we are seeing that tax rises coming in april, that means that peoples living standards are set to by around two point 4% in the coming years. that's the biggest fall since we started collecting records back in the mid—19 50s. this is a very hard hit to living
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standards, it's bigger than i was also seen in previous recessions was up also seen in previous recessions was up about twice we've seen in the last energy shock in the 70s and early 80s. it's about £500 for an average family.— average family. what are the big drivers here _ average family. what are the big drivers here then, _ average family. what are the big drivers here then, you _ average family. what are the big | drivers here then, you mentioned energy? drivers here then, you mentioned ener: ? , , , , energy? the biggest drivers energy inflation is un- _ energy? the biggest drivers energy inflation is up. that _ energy? the biggest drivers energy inflation is up. that supplies i inflation is up. that supplies bottlenecks in everyone's talking about a few months ago, they are still around, they are pushing up the prices of the goods that we import. also the fact that peoples wages are keeping pace with that global inflation and we are being affected by the in the uk means they are real earnings are being eroded. about a third of the living standards is a result of the peoples taxes going up for the people paying more national insurance, the personal allowances for income tax and national insurance are being frozen in the coming year. that adds about one third to a living standard squeeze of the coming years. what is at inflation rate going to do to people savings and how well insulated ourfamilies? some people
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a better insulated than they were before. that's because while the earners are able to put away money during the pandemic. they do have savings they built up over the pandemic and we expect them to run down about 10% of that in the coming yearin down about 10% of that in the coming year in order to cushion the blow on their living standards. the issue is that a lot of people weren't able to build up savings are in the pandemic. they were either not working a working lasso they had in general lower savings rate may be into debt during the pandemic. some people won't have savings set aside to get them through the coming squeeze on living standards which last both this year and into next year. we are still forecasting inflation of around 4% in 2023 because it takes time for these energy prices globally to feed through into the domestic price level in the uk. but through into the domestic price level in the uk.— through into the domestic price level in the uk. but the bank of encland's level in the uk. but the bank of england's inflation _ level in the uk. but the bank of england's inflation target i level in the uk. but the bank of england's inflation target is i level in the uk. but the bank ofj england's inflation target isjust england's inflation target is just 2%. what they normally do is putting interest rates up to try and stop the spending, bring down inflation. how difficult a job is that for them when you think if you push interest
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rates up it's gonna squeeze people leave a mark?— rates up it's gonna squeeze people leave a mark? , . , , leave a mark? they have put them up b more leave a mark? they have put them up by more than — leave a mark? they have put them up by more than we _ leave a mark? they have put them up by more than we expected _ leave a mark? they have put them up by more than we expected back i by more than we expected back in october. in part to reflect the fact that we are seeing notjust imported inflation but also growing domestic inflation but also growing domestic in the uk. energy prices are high at the moment, we do expect them to fall of the medium term. that helps to bring down inflation as we get beyond 2023 into the middle of the decade. inflation has a. growth falls below the bank of england. before returning to its 2% target over the medium—term. that does mean that we do assume that interest rates go up in order to get those domestic inflationary prices in check. to domestic inflationary prices in check. ., . , domestic inflationary prices in check. ., ., , ., check. to what extent is government debt, our check. to what extent is government debt. our debt. _ check. to what extent is government debt, our debt, but _ check. to what extent is government debt, our debt, but that _ check. to what extent is government debt, our debt, but that government j debt, our debt, but that government is taking on on behalf of the effective does? fit is taking on on behalf of the effective does?— is taking on on behalf of the effective does? .. ., effective does? fit facing their own s: ueeze effective does? fit facing their own squeeze was _ effective does? fit facing their own squeeze was no — effective does? fit facing their own squeeze was up big _ effective does? fit facing their own squeeze was up big windfall - effective does? fit facing their own squeeze was up big windfall from l effective does? fit facing their own i squeeze was up big windfall from tax revenues held up better than we thought. but two thirds of back out of eroded by the effects of higher inflation both on the government borrowing cost but also on the fact
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that welfare benefits have to be indexed by a higher rate. the government also feeling squeeze for higher inflation. partly from benefits but apart from the fact that higher inflation pushes up the cost of government debt. around third of our debt is directly indexed to inflation. it's inflation linked in its cost goes up pound for pound but how much inflation goes out. . ., ., . pound but how much inflation goes out. ., . ., ., out. economic growth forecast quite a lot lower than _ out. economic growth forecast quite a lot lower than we _ out. economic growth forecast quite a lot lower than we previously i a lot lower than we previously thought. how do you boost growth when people can't afford to spend as much as they did last year even? taste much as they did last year even? we have much as they did last year even? - have not gone a growth forecast for the coming year from 6% to under 4%. that's largely because higher inflation is rolling people's real incomes in their consuming as was up there to pick up a government investment within those forecasts. the government is planning on an unprecedented rise in investment over that period. that public investment boom has been held back by the fact that the government is facing supply bottlenecks at the businesses are facing for the lot of
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raw materials we used to do public investment is imported from abroad, they are being held up by post pandemic supply bottlenecks which are also part of this difficult challenge global pictures are trying to get the post pandemic recovery going. we've talked a lot about the increased pressures, because that people are going to face. how much of what is been announced today, to what extent will it offset those increases? the £18 billion of measures which the chancellor announced today, the help with energy cause and also the increase in the personal allowance for national insurance, that offsets from a third of the overall fall in living standards that we are expected to see this coming year. it is still living standards fall of more than 2%. still taking account of all that additional government support, the biggest bomb living standards we see it still living standards we see it still living standards followed more than 2%. still taking account of all that additional government support, the biggest fall living standards we seen on record. thank you very much. as we've heard, with prices rising by more than 6% in the 12 months to february, the chancellor has been under
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pressure to provide more support for households. 0ur consumer affairs correspondent, colletta smith, has been talking to people in halifax about how they are feeling the squeeze. it's a gorgeous day, and everyone's making the most of the sunshine. this is my little boy, tiger. ah, hello. we're just trying to do more like this, like, go out on days out like this. i used to love going to the beach, but i can't even afford that in fuel now cos i've got a car to run as well. so, we just do little things like this now. sometimes we'll even get a bus, won't we, instead? stevie's rent went up by £200 last month, and she's already behind on the gas and electricity bills. we're just trying to get by. just try and keep upbeat about it, anyway. paul and charlotte have been feeling the bite of energy bills this winter, too. if the gas goes on, it, you know, it takes a while to kind of kick in. and perhaps back in the day when we were students, i we would have just not put - the heating on, but we can't do that any more cos we've got lois.
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morning. all right, you? costs are rising for mark at his coffee shop, but he doesn't want to put prices up because he knows how tough everyone's finding it. we do have to pay a wage, pay ourselves, pay your rent. it all has a huge impact. and to keep that quality experience going, people might have to pay that extra pound to enjoy it. but that's something stevie just can't afford. i don't think i'd be able to save a pound. so, you're literally living, everything that comes in... month by month, yeah. ..just gets spent. straight out, yeah. yeah. and if you can't meet those bills, then where will you turn? i either don't pay them, and then it's debt, or... i don't really want to have to ask family, but... i do. colletta smith, bbc news, at the piece hall in halifax. in afghanistan the taliban has reversed a decision to allow most
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teenage girls to return to secondary school. they were due back in lessons today for the first time since last august — but in a sudden u—turn, the government claimed it needed more time to decide whether girls should wear a veil that covers part of their face. 0ur correspondent secunder kermani has this report. the day started so promisingly. all the girls who are gathered here have been telling us how much it meant to them to be back in school. there are far fewer than usual, perhapsjust10%, maybe because some of them were nervous about what would happen or unsure about what would happen, but the ones that did come, they have now been left devastated by news that they have just received that apparently secondary schools for girls will not be reopening. i have seen girls crying. translation: i came here full of hope. i that we would be resuming our studies. but we were told that our classes won't be happening.
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it feels really bad. why aren't we allowed to study? learning is compulsory for both men and women. i don't understand why we are not given this right. we had been expecting that secondary schools right across afghanistan would be opening up today for teenage girls, many of them for the first time since the taliban took power in august. | translation: all girls' high school| are informed they will remain closed until further noticed, when a comprehensive plan has been prepared according to sharia and afghan culture, the leadership of islamic mandatory issue and order. we were at a school in the west of kabul today. there were teenage girls in tears because they have been told that they have to go home again. who should they blame for this? translation: each drop - of our sisters' tears is valuable. i can only comment on issues related
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to the education ministry. we had made all our preparations. this order came from their top leadership, so only their spokesmen can comment on it. we do know that female education is a sensitive, controversial issue amongst, let's say the most hardline, most ultraconservative elements of the taliban. perhaps that is why we have had this sudden and unexpected u—turn. telling girls�* schools they should close once again. the headlines on bbc news. as the cost of living rises at the fastest rate in 30 years, the chancellor announces new measures to soften the blow, including a 5p cut in fuel duty. the uk's public finance watchdog says households will see disposable income fall by the largest amount in a single year since records began. and the women's world number one, australia's ash barty, says she's hanging up her tennis
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racket at just 25 years old. the man accused of murdering mp sir david amess had a look of "self—satisfaction" as though he had "achieved something" according to an eyewitness. ali harbi ali is on trial for stabbing the long—serving mp to death at a constituency appointment in essex last october. mr ali denies murder and preparing terrorist acts. our home affairs correwspondent daniel sandford is at the old bailey in london where the trial is taking place — he gave us this update. we heard from four eyewitnesses, two members of sir david amess's staff who were with him today and two people who arrived just afterwards. first we heard from rebecca hatem, his parliamentary pa who travelled with him to belfairs methodist church, and was there to escort the constituents from the lobby of the church to the vestry beside the altar where he was meeting the constituents.
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she remembers around midday going and collecting ali harbi ali who seemed chatty and friendly. she took him through to sir david amess's office but not long after they had started talking, ali harbi ali stood up and leaned over sir david amess, said sorry, and stabbed him in the side. she said that david screamed loudly and sort of panicked. she was talking in a police interview that was recorded on that day that was then played to the jury. she said that ali harbi ali continued to stab sir david amess. as i was getting up, he just kept going, she said. she ran off to get some help and she quite soon bumped into the other woman who was working with sir david amess that day. call the police, sir david has been stabbed and the two women went out together to see if they could get more help. there they found if eves and darren king, two other constituents who had just arrived to meet sir david amess
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and darren king described how he'd gone into the church, found a man in the aisle, also talking in an interview he gave to the police on the day of the attack, he said all i can remember is that he had the knife, which was a lime green coloured knife, the size of a carving knife, on the end there was blood, it wasn'tjust drips of blood, it was covered in blood, she said. — he said. rebecca, who was behind darren king, said she remembered the man with the knife and said he wasn't going to hurt anyone else, just call the police. she said he said don't come anywhere near me, i will stab you. yvonne eves who was also there said he was pacing and he seemed like he knew what he had done, he had achieved something, he wasn't remorseful, she said. he was like, oh, my god, i've done it. i've achieved something. darren king said he tried to keep the man with the knife talking so that he couldn't harm anyone else. the man was saying he wanted to kill everyone who had voted for the iraq war. darren king said that for much
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of the time the suspect seems to be on the phone to his sister who was saying, why have you done it? why have you done it? and eventually two police officers arrived, managed to disarm the man with the knife and take him away in handcuffs. julie, one of the assistance, told the jury the image of ali's face as he was led away would stay with her for the rest of her life. it was kind of self—satisfaction, she said. ali harbi ali denies murder and preparing terrorist acts. daniel sandford with the latest from the old bailey. today marks two years since the prime minister announced the uk's first official lockdown, telling the country... "you must stay at home". since then, nearly 164—thousand people have died with covid—19 in the uk. a memorial concert is being held at st paul's cathedral this evening. the world number one women's tennis player, ash barty,
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has announced she's retiring at the age of 25. the australian star made the announcement on social media saying she was leaving the sport to chase other dreams. 0ur senior sports news reporter, laura scott, has more. it's not the first time ash barty has stunned the sporting world. just like some of her best shots, nobody saw this one coming. i'll be retiring from tennis, and it's the first time i've actually said it out loud. yeah, it's hard to say. but ash barty the person has so many dreams that she wants to chase after that don't necessarily involve travelling the world, being away from my family, being away from my home, which is where i've always wanted to be. barty�*s been world number one since 2019 and, last summer, won the trophy she'd always dreamt of — the wimbledon title. she then added her home grand slam, the australian open. but less than two months on, the 25—year—old said she felt she had nothing left to give.
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what a fortunate position to be in as well, to be retiring at the top of the game. i actually can't remember who would have done that and who would've been able to do that last. barty hangs up her racket having inspired countless children to pick one up. no words for her, she's perfect. the reason why i play tennis is ash barty. tennis has never been barty�*s everything. she previously took a break to play professional cricket. 0nly she knows what is next, but going out on a high on her terms — that is the ash barty way. laura scott, bbc news. the duke and duchess of cambridge have arrived injamaica for the second leg of their week—long caribbean tour. activists there have been calling on the uk to pay reparations for slavery, an issue prince william is expected to address in a speech later today. the couple began their visit in the centre of the capital, kingston. a warning that this report from our
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royal correspondent, jonny dymond, contains flash photography. a rather formal start to what would become a pretty informal day. just before their arrival... shouting. ..a demonstration outside britain's high commission, its embassy to jamaica. a protest against britain's use of slaves here whenjamaica was its colony. and the demand for financial compensation. it's an insult to us for these young people to be here to try to persuade us to keep the status quo in place when our goal is to loosen and remove the hands, the gloved hands, of the queen, from around our necks. prince william is expected to discuss slavery in the same sort of frank terms that his father used recently in barbados.
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he talked about it being a stain on history. but that will come later. cheering. first, there was a visit to downtown kingston. the crowds were waiting. the royals can still pull a crowd injamaica. and they pull celebrities, too. manchester city's raheem sterling and aston villa's leon bailey, the jamaican international. then it was down to business, with william setting up a goalfor raheem sterling. applause. but it was the couple's off—pitch walkabout that sent the crowd wild. down the street they swept,
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surrounded by a cheering throng. cheering. and then into one of jamaica's cultural shrines. a place where bob marley once lived and hung out with other musicians. this was a musical celebration. and a chance to kick back and relax. the royals got stuck in and the beat went on. here was a couple enjoying life together. all good things come to an end. eventually, they said their goodbyes. thank you so much.
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trench town will remember their visit for a long time to come. jonny dymond, bbc news, kingston, jamaica. now it's time for a look at the weather with ben rich. hello. thank you what a beautiful day it has been once again if you like spring warmth and sunshine that is. temperatures have been up around 20 degrees for many of us there has been a lot of sunshine. this was the scene for a weather watcher in edinburgh with gorgeous blue skies overhead. you can see the clear sky on the earliest satellite, this area of high pressure keeping things settle at the moment. 0ne of high pressure keeping things settle at the moment. one or two clouds did spring up against eastern areas, still the small chance for a shower and he showers will fade very quickly for the overnight were you looking at clear skies. even if the warm days at this time he had the temperatures will drop overnight, the nights are long enough a lot. tonight we are looking at values
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down to around freezing, even below freezing in a few spots out in the countryside. a touch of frost tomorrow, fog patches, perhaps especially note he staying blum england put up for england and wales lots of sunshine once again. northern island and scotland will see a little more in the cloud creeping end but even that should break out the neck up to get some sunny spells. temperatures again 15 may be 19 degrees. very light winds and stagnantair may be 19 degrees. very light winds and stagnant air underneath that area of high pressure we do have the potential for some area of high pressure we do have the potentialfor some high area of high pressure we do have the potential for some high air pollution that was particularly across southern and eastern parts of england. friday brings similarly light winds for most perhaps a bit breezy down towards the english channel. more sunshine, more the way of cloud before the north to get but the majority will be dry away from the majority will be dry away from the northern islands temperatures again generally between 14 and 18 or 19 degrees. area of high pressure set to stay firm into the weekend. very little change in the forecast
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was up this weather front up to the rock still potentially bringing more in the way of cloud, maybe the odd spot of rain. some patches of cloud potentially some fog patch elsewhere. forall potentially some fog patch elsewhere. for all intents and purposes a fine day, sunny day at the next house on saturday. temperatures down a fraction but still 15 to 18 degrees. sunday's forecast again, some area cloud may be a bit of fog around some of the coast but good sunny spells in temperatures again 13 to 17 degrees. a little bit of rain up towards the far north. however, don't get too used to these warm conditions because into next week, look at this change for the northerly winds bringing much colder air southwards across the uk. you really will notice a difference after temperatures for some for many only getting into single digits was that while there was to be a lot of dry weather that could in places be some wintry showers. if you like the spring warmth probably worth making the most of it over the next few days. more weather during the bbc news at six. that's all from for
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today at six, as the cost of living crisis bites, the chancellor sets out his plans to help hard pressed families. delivering his spring statement, he warned we should all be prepared for "the economy to worsen, potentially significantly." but he told the commons new government tax cuts would help ease the burden for millions. a tax plan that cuts taxes on working families by over £330, cuts taxes on fuel by 5p a litre, cut taxes on business and, yes, for the first time in a long time, cuts income tax. inflation is at its highest level for 30 years, and rising. energy prices at record highs. people are worried sick.
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