this is bbc news. the headlines. the cap on bankers bonuses have been lifted. we promised to prioritise growth, mr speaker. we promise a new approach for a new era, we promised to release a enormous potential of this country. our growth plan has delivered all those promises and more, mr speaker. labour said the changes are a "comprehensive demolition" of the government's last 12 years in power. the oil and gas producers will be toasting the chancellor in the boardrooms as we speak while working people are left to pick up the bill.

hello — i'mjoanna gosling — live in westminster — where the chancellor kwasi kwarteng has announced the government's mini—budget. will also be looking at what it means for you. and author dame hilary mantel, best known for her wolf hall trilogy, has died aged 70. it was the holy grail that we all aspire to, she was thejk rowling of historical fiction. four russian—occupied areas of ukraine are staging referendums on whether to become part of russia — the west says it's a move by moscow to annex more ukrainian territory. good afternoon and welcome to the bbc news at one.

in a massive shake—up of the uk's finances, the chancellor kwasi kwarteng has outlined a series of tax cuts and spending commitments that will cost £45 billion by 2027. the independent institute for fiscal studies has described the announcements as the biggest tax cutting budget in 50 years. the government says its policies will help boost economic growth — yesterday the bank of england warned the uk may already be in recession. but critics say funding the tax cuts will lead to unsustainable borrowing. the chancellor announced changes to income tax in england, wales and northern ireland. the basic rate will be cut from 20% to i9% in april — a year earlier than planned. the top rate, which is currently 45% and is paid by anyone earning more than £150,000 a year — is being abolished. this doesn't apply in scotland. there are immediate changes to stamp duty, paid when buying a property

in england and northern ireland. the threshold is being raised, meaning no tax will be paid on the first £250,000 and that figure will be £105,000 forfirst time buyers. the planned increase in corporation tax — the amount companies pay on their profits — is being scrapped, so it will remain at i9%. and the cap on bankers' bonuses, which had limited them to twice someone's annual salary, is also being axed. labour says the government's plan is based on �*outdated trickle down economics'. here's our political editor, chris mason. can you afford these tax cuts, chancellor? technically, this wasn't even a budget. in reality, inside that blue booklet were the biggest tax cuts in 50 years. i now call the chancellor. of the exchequer to make a statement, chancellor!

kwasi kwarteng told mps it was all about firing up the economy. growth is not as high as it should be. this has made it harder to pay for public services requiring taxes to rise, and we need a new approach for a new era. our aim over the medium term is to reach a trend rate of growth of 2.5%... and so rises in national insurance and corporation tax are being scrapped, and then the big reveal on income tax. right now, the very highest earners, those on £150,000 a year, pay 45p in tax for every £1 over that amount they earn, but not for much longer. they have a big tax cut coming. but i'm not going to cut the additional rate of tax today, mr speaker. i'm going to abolish it altogether. from april 23rd, we will have

a single higher rate of income tax of a0%. this will simplify the tax system and make britain more competitive, it will reward enterprise and work, it will incentivise growth, it will benefit the whole economy and the whole country. and there was more, an income tax cut for everyone. i can announce today that we will cut the basic rate of income tax to i9p in april 2023, one year early. that means a tax cut for over 31 million people in a few months�* time. also, an immediate cut in the property buying tax stamp duty in england and northern ireland. but some of the measures announced are not popular, including removing the cap on bankers' bonuses, so why do it? we need global banks to create jobs here, invest here, and pay taxes here in london! in london! not in paris, not in frankfurt,

and not in new york. overall, this plan involves the government borrowing a massive amount of money, a huge about turn from recent conservative instincts. rachel reeves! labour pointed out the tories have been in government since 2010. this statement is an admission of 12 years of economic failure, and now here we are, one last throw of the dice, one last claim that these ministers will be different. for all the chopping and changing, all the chaos and confusion, there has been one person there throughout — the prime minister. a new era, but they have been in government for 12 years, it stretches credibility beyond breaking point, saying that tax cuts for the rich, whopping bonuses for bankers and low corporation tax for companies will somehow re—float, magically, britain's sinking economy. this budget amounts to an environment wrecker's

charter and is a statement of missed opportunities. a report just this week shows that a major programme of insulating homes in britain and installing heat pumps could benefit the economy by £7 billion a year, create 140,000 jobs by 2030, get fuel bills down and climate emissions down too. some financial statements that come out of the treasury can feel inconsequential, easily forgotten. this is not one of them. this is a big move by a new chancellor and a new prime minister with not long to prove that it can work. chris mason, bbc news, at westminster. lots at westminster. of reaction coming up for you this lots of reaction coming up for you this hour. a little more from the chancellor because he has been talking in the last hour. let's hear some of what he said. i talking in the last hour. let's hear some of what he said.— talking in the last hour. let's hear some of what he said. i think it's a ve aood some of what he said. i think it's a very good day _ some of what he said. i think it's a very good day for— some of what he said. i think it's a very good day for the uk _ some of what he said. i think it's a very good day for the uk because l some of what he said. i think it's a i very good day for the uk because we have a great plan, were very up beat about what we can do is a country.

we were facing were low growth and we want a high—growth economy and that's what this morning was all about. ., ,._ that's what this morning was all about. ., _ i. ., that's what this morning was all about. ., ., ., about. you say you want a high-growth _ about. you say you want a high-growth economy, . about. you say you want a . high-growth economy, you're about. you say you want a - high-growth economy, you're also high—growth economy, you're also cutting taxes in a very unfair way. do you know how much your text that is good to be? i think it's like over two grand for a nurse this winter who's going to have to work in the nhs, that's about for hundred £50 for a police officer who worked hard this week during the queens funeral, how fair that you get a tax cut of over 2000 while people on average i'll come see much less? everybody is getting a tax cut. the situation we're in is we were putting up taxes. that was the immediate situation that we're in, we were facing a situation where the tax burden was at a 70 year high. that was completely unacceptable, the prime minister campaigned on that basis that we would reduce taxes and that's exactly what we've done. we pull forward the 1p cut in the basic rate from 2024 to 2023.

that represents about a for everybody. we've also reverse national insurance increase, that represents £330. there is a tax cut for all... �* represents £330. there is a tax cut forall...�* v represents £330. there is a tax cut forall...�* �*, ., ., ., for all... but it's not a fair tax cut, for all... but it's not a fair tax cut. you _ for all... but it's not a fair tax cut. you have _ for all... but it's not a fair tax cut, you have to _ for all... but it's not a fair tax cut, you have to accept - for all... but it's not a fair tax cut, you have to accept that. l for all... but it's not a fair tax i cut, you have to accept that. it's absolutely _ cut, you have to accept that. it's absolutely fair _ cut, you have to accept that. it�*s absolutely fair to reduce peoples taxes and to make sure as you admitted, people are going to retain more of what they earn. the path we were on was simply unsustainable, we couldn't simply raise taxes we definitely hope that we would get prosperity. that's why this morning i reduced the tax burden across the base and i'm very committed to that. is a falling sterling good the economy? i is a falling sterling good the economy?— is a falling sterling good the econom ? ., �* _, ., is a falling sterling good the econom ? ., �* ., ., ~ economy? i don't comment on market movin: economy? i don't comment on market moving two — economy? i don't comment on market moving two movements. _ economy? i don't comment on market moving two movements. what - economy? i don't comment on market moving two movements. what is - economy? i don't comment on marketi moving two movements. what is good for the economy is creating an environment where people can come and invest in the uk and that's exactly what we've done. this and invest in the uk and that's exactly what we've done. this is a camble. exactly what we've done. this is a gamble- you _ exactly what we've done. this is a gamble. you have _ exactly what we've done. this is a gamble. you have to _ exactly what we've done. this is a gamble. you have to admit. - exactly what we've done. this is a gamble. you have to admit. howl exactly what we've done. this is a l gamble. you have to admit. how is it not a gamble? _ gamble. you have to admit. how is it not a gamble? what _ gamble. you have to admit. how is it not a gamble? what is _

gamble. you have to admit. how is it not a gamble? what is a _ gamble. you have to admit. how is it not a gamble? what is a gamble - gamble. you have to admit. how is it not a gamble? what is a gamble is l not a gamble? what is a gamble is thinking you can keep raising taxes and getting prosperity which was clearly not working. we cannot have a tax system where you are getting a 70 year high. the last time we had tax rates at this level before my tax rates at this level before my tax cut was actually before her late majesty conceded to the throne. that was completely unsustainable and that's why i'm delighted to be able to read news taxes across the base this morning. to read news taxes across the base this morning-— this morning. that was the chancellor _ this morning. that was the chancellor speaking - this morning. that was the chancellor speaking within | this morning. that was the . chancellor speaking within the this morning. that was the - chancellor speaking within the last hour. he was on a visit to a manufacturing facility. that's where he was there. let's get continued political reaction to a really big day at west minister. we returned to joann. day at west minister. we returned to joann. . ~ day at west minister. we returned to joann. ., ~' ,, day at west minister. we returned to joann. ., ~' i., ., day at west minister. we returned to joann. ., ~ i. ., ., with me now the shadow chancellor rachel reeves. welcome. just to pick up rachel reeves. welcome. just to pick up on what the chancellor was saying. he was saying that the biggest gamble is to leave taxes high and rising, currently at the highest level for 70 years. he said thatis highest level for 70 years. he said that is not the way you get economic

growth and what economic growth is needed right now. do growth and what economic growth is needed right now.— needed right now. do you agree? it was uuite needed right now. do you agree? it was quite a — needed right now. do you agree? it was quite a stunning _ needed right now. do you agree? it was quite a stunning admission - needed right now. do you agree? it| was quite a stunning admission from the chancellor today that we're in a vicious _ the chancellor today that we're in a vicious cycle of low growth. there are lots _ vicious cycle of low growth. there are lots of— vicious cycle of low growth. there are lots of chancellors that come up and criticise — are lots of chancellors that come up and criticise the government that went_ and criticise the government that went before them but he is criticising other conservative governments of which he has been a part _ governments of which he has been a part labour— governments of which he has been a part. labourvoted governments of which he has been a part. labour voted consistently against — part. labour voted consistently against the increase in national insurance — against the increase in national insurance contributions, which the chancellor— insurance contributions, which the chancellor now announce it after voting _ chancellor now announce it after voting for— chancellor now announce it after voting for the increase he will be reversing — voting for the increase he will be reversing them. my voting for the increase he will be reversing them.— voting for the increase he will be reversing them. my big worry... do ou auree reversing them. my big worry... do you agree with _ reversing them. my big worry... do you agree with what _ reversing them. my big worry... do you agree with what he's _ reversing them. my big worry... do you agree with what he's doing? i reversing them. my big worry... do. you agree with what he's doing? you said he's criticising what went before, the low growth. that something labour have been critical of and also the national insurance rice that is now being reversed. mr; rice that is now being reversed. my big worry about today is it seems very reckless tojust big worry about today is it seems very reckless to just borrow and borrow — very reckless to just borrow and borrow and borrow with no attempt to brin- borrow and borrow with no attempt to bring in _ borrow and borrow with no attempt to bring in more money through a windfall— bring in more money through a windfall tax on the massive profits the oil _ windfall tax on the massive profits the oil and — windfall tax on the massive profits the oil and gas producers are making, _ the oil and gas producers are making, for example. instead load

that money onto this generation of future _ that money onto this generation of future generations of taxpayers to p5y~ future generations of taxpayers to pay. we've seen the verdict of markets — pay. we've seen the verdict of markets today. government worry up, the pound _ markets today. government worry up, the pound down and the cost of borrowing, notjust for the pound down and the cost of borrowing, not just for the government but also for families for their mortgage rates and businesses through— their mortgage rates and businesses through their borrowing are all going — through their borrowing are all going to — through their borrowing are all going to be paying more because of the reckless mini budget that we got from the chancellor today. what reci -e from the chancellor today. what recipe would _ from the chancellor today. what recipe would you _ from the chancellor today. what recipe would you go _ from the chancellor today. what recipe would you go for- from the chancellor today. “wrist recipe would you go for then in terms of finding the money to give the support to people who are facing ruinous energy bills goes back already there going to be going up dramatically but not like they were. the governments going further than you said you would to the tune of 150 billion. you support that action, i know you'd fund some of it from a windfall tax with depth that would be about 20 billion. the government — would be about 20 billion. the government have finally accepted despite _ government have finally accepted despite everything the new prime minister— despite everything the new prime minister said during the leadership contest _ minister said during the leadership contest that it is necessary to gas

and electricity bills. but the issue is who— and electricity bills. but the issue is who pays for that. and labour have said. — is who pays for that. and labour have said. i_ is who pays for that. and labour have said, i have said for many months — have said, i have said for many months now that we should ask at the energy— months now that we should ask at the energy producers who are making huge windfall— energy producers who are making huge windfall profits to make a bigger contribution. there are tens of billions — contribution. there are tens of billions of— contribution. there are tens of billions of pounds sitting on the table _ billions of pounds sitting on the table that the government could bring _ table that the government could bring in. — table that the government could bring in, which would be less boring than what _ bring in, which would be less boring than what set out today. that bring in, which would be less boring than what set out today.— than what set out today. that would be the right — than what set out today. that would be the right approach. _ than what set out today. that would be the right approach. when - than what set out today. that would be the right approach. when you - than what set out today. that would | be the right approach. when you say less boring, it's different from the inference that the spending could be funded by the energy companies, a windfall tax. the amount would be about £20 billion, what annette? when we set out our plans we said around _ when we set out our plans we said around the — when we set out our plans we said around the third of the money could be around the third of the money could he raised _ around the third of the money could be raised through extending the windfall— be raised through extending the windfall tax without that's ten of the hundred and 50 billion for the tens of— the hundred and 50 billion for the tens of billions of pounds is being left on _ tens of billions of pounds is being left on the — tens of billions of pounds is being left on the table by this government because _ left on the table by this government because they seem to be more concerned _ because they seem to be more concerned about protecting the

windfall— concerned about protecting the windfall profits of energy producers rather _ windfall profits of energy producers rather than helping families with their energy bills and protecting taxpayers against excessive borrowing, which would just not need to be borrowing, which would just not need to he as _ borrowing, which would just not need to be as high as it is today. we've seen the — to be as high as it is today. we've seen the verdict of the markets. they— seen the verdict of the markets. they are — seen the verdict of the markets. they are very worried about the higher— they are very worried about the higher borrowing, the higher government debts. and you see that would _ government debts. and you see that would he _ government debts. and you see that would be selling off of sterling and the higher government costs and borrowing costs for everybody else because _ borrowing costs for everybody else because of the decisions that the government have made.- because of the decisions that the government have made. when you talk about protecting _ government have made. when you talk about protecting taxpayers, _ about protecting taxpayers, obviously the flip side of that in the way the governments looking at it is to say it's right that people should actually retain more of they earn. ~ , , should actually retain more of they earn. ~ , ., earn. we support the reversal of national insurance. _ earn. we support the reversal of national insurance. the - earn. we support the reversal of - national insurance. the government should _ national insurance. the government should never have increased national insurance _ should never have increased national insurance and the first place but the decision today to cut the very top rate — the decision today to cut the very top rate of— the decision today to cut the very top rate of tax from 45p two 40p at a cost _ top rate of tax from 45p two 40p at a cost of _ top rate of tax from 45p two 40p at a cost of £2 — top rate of tax from 45p two 40p at a cost of £2 billion to taxpayers, giving tens —

a cost of £2 billion to taxpayers, giving tens of thousands of pounds to some _ giving tens of thousands of pounds to some of— giving tens of thousands of pounds to some of the richest people in the country— to some of the richest people in the country whiles people on low and modest _ country whiles people on low and modest incomes are struggling with the cost _ modest incomes are struggling with the cost of— modest incomes are struggling with the cost of living crisis, it's the wrong — the cost of living crisis, it's the wrong priority. it's not what labour would _ wrong priority. it's not what labour would be _ wrong priority. it's not what labour would be doing. it adds more to government debt and it doesn't target _ government debt and it doesn't target those who most need additional support. would labour reverse — additional support. would labour reverse at? it's not a done deal. i've reverse at? it's not a done deal. we spoken _ reverse at? it's not a done deal. i've spoken to lots of tory mps today— i've spoken to lots of tory mps today that said they cannot understand how this is a priority. if it understand how this is a priority. if it does — understand how this is a priority. if it does go through what would labour reverse liquids but not a done deal yet. we labour reverse liquids but not a done deal yet.— labour reverse liquids but not a done deal yet. we will be doing everything _ done deal yet. we will be doing everything impossible - done deal yet. we will be doing everything impossible to - done deal yet. we will be doing everything impossible to stop l done deal yet. we will be doing i everything impossible to stop this happening in the first place. it is the wrong — happening in the first place. it is the wrong tax cut at the wrong time for that— the wrong tax cut at the wrong time for that there are many conservative mps~~ _ for that there are many conservative mps. .. ~ . �* for that there are many conservative mps. .. ~ ., �* ., for that there are many conservative mps...~ ., �* ., ., ., mps. .. what we've got today from the government — mps. .. what we've got today from the government is — mps. .. what we've got today from the government is whether _ mps. .. what we've got today from the government is whether you _ mps. .. what we've got today from the government is whether you agree - mps. .. what we've got today from the government is whether you agree or i government is whether you agree or not, setting out a clear agenda and delivering very quickly what they said they would do. is it time for labour to said they would do. is it time for labourto be... 17 said they would do. is it time for labour to be. . ._ labour to be... ? i'm very clear with you _ labour to be... ? i'm very clear with you to _ labour to be... ? i'm very clear with you to oppose _ labour to be... ? i'm very clear with you to oppose it. - labour to be... ? i'm very clear with you to oppose it. there i labour to be... ? i'm very clear with you to oppose it. there is | with you to oppose it. there is absolutely no good reason for this tax got _ absolutely no good reason for this tax got to— absolutely no good reason for this tax got to go ahead.— absolutely no good reason for this tax got to go ahead. sorry to press ou but tax got to go ahead. sorry to press you but that _ tax got to go ahead. sorry to press you but that is _ tax got to go ahead. sorry to press you but that is different _ you but that is different from

saying to voters that you would actually reverse it. i saying to voters that you would actually reverse it.— saying to voters that you would actually reverse it. i don't accept that this is _ actually reverse it. i don't accept that this is a _ actually reverse it. i don't accept that this is a done _ actually reverse it. i don't accept that this is a done deal. - actually reverse it. i don't accept that this is a done deal. there i actually reverse it. i don't accept that this is a done deal. there is| that this is a done deal. there is everything — that this is a done deal. there is everything to fight more and we will do everything we can in parliament, working _ do everything we can in parliament, working with mps from all political parties _ working with mps from all political parties. there was no tears for the chancellor— parties. there was no tears for the chancellor when he announced that today _ chancellor when he announced that today. many conservative mps are saying _ today. many conservative mps are saying it's — today. many conservative mps are saying it's the wrong priority. we think— saying it's the wrong priority. we think that — saying it's the wrong priority. we think that we can stop the government from going ahead with his unfunded _ government from going ahead with his unfunded and unfair tax cut that leaves _ unfunded and unfair tax cut that leaves somebody earning £1 million getting _ leaves somebody earning £1 million getting a _ leaves somebody earning £1 million getting a tax cut, more than a nurse -ets getting a tax cut, more than a nurse gets its _ getting a tax cut, more than a nurse gets its a _ getting a tax cut, more than a nurse gets it's a wrong tax cut at the wrong — gets it's a wrong tax cut at the wrong time and we think we can work with mps— wrong time and we think we can work with mps across the political spectrum and do everything they can to get— spectrum and do everything they can to get the _ spectrum and do everything they can to get the government to change their mind. to get the government to change their mind-— to get the government to change their mind. ., ,, i. ., ., , their mind. thank you for “oining us rachel wreaths, i their mind. thank you for “oining us rachel wreaths, the i their mind. thank you forjoining us rachel wreaths, the shadow - rachel wreaths, the shadow chancellor. we will get a bit more analysis with our correspondent. if the markets believed the biggest tax cuts in 50 years were going to boost economic growth,

you might expect the pound to strengthen. but foreign currency markets gave it a decidedly grumpy response. the pound, already at its lowest since 1985, dropped 2% to $1.10, which will make it even more expensive for the government to subsidise wholesale energy priced in dollars or euros. if you think about why investors are taking that, well, they don't really believe in the fiscal position of the new government. they're worried that some of these tax cuts that have been announced aren't going to be fully funded. that will result in a large amount of debt at a time when the bank of england is also going to be selling some of its holdings of uk government debt. here's why the city is worried. it's notjust the energy help for households at 31 billion or six months�* help for businesses costing 29 billion, the government has also cut taxes for the highest earners, corporations and individuals, costing 27 billion next year, rising to 45 billion three years from now. kwasi kwarteng�*s so—called mini budget has implemented maxi tax cuts, bigger than any other

chancellor has done in decades. this was a huge event. it's called a mini budget, this is possibly one of the biggest i have seen in 30 years of looking at budgets, and it is certainly the biggest tax—cutting event since 1972, for exactly half a century since we saw a chancellor stand up and announce quite such big tax cuts. the last time we saw tax cuts this big, there was another energy crisis and a conservative chancellor subsidising soaring energy prices and trying to go for growth. but two years after anthony barber�*s 1972 budget, inflation got up to 24%. today, investors sold uk government bonds, demanding a sharply higher interest rate to compensate for the risks of lending to a government that is financing huge tax cuts through borrowing. economists say it is likely to boost growth, but that might not last. we think this will boost output in the economy from something where it was hovering around zero over the next year or so to something like 2% over the next year or so.

what it is doing is really bringing about an artificial boom in the economy. and the bank of england is going to respond to that with higher interest rates, because it is boosting the economy over and above its capacity to supply those goods and services. with the government doing its utmost to heat up the economy, the bank of england has to do even more to cool it down and keep inflation under control. interest rates are now expected in the city to rise by next august to 5.5%, more than twice their current level. andy verity, bbc news. chair of the treasury select mp. welcome. so this plan to totally change what�*s gone before in terms of what the conservative party has been delivering. these enormous tax cuts, this plan for growth. i5 been delivering. these enormous tax cuts, this plan for growth. is it our cuts, this plan for growth. is it your work— cuts, this plan for growth. is it your work was _ cuts, this plan for growth. is it your work was back _ cuts, this plan for growth. is it your work was back it's a big risk, there _ your work was back it's a big risk, there is— your work was back it's a big risk, there is no— your work was back it's a big risk, there is no doubt about that because it's all— there is no doubt about that because it's all predicated on getting growth _ it's all predicated on getting growth up to a trend rate of 2.5%.

thats— growth up to a trend rate of 2.5%. that's quite — growth up to a trend rate of 2.5%. that's quite a stretch. and what is missing _ that's quite a stretch. and what is missing and — that's quite a stretch. and what is missing and the point i pressed the chancellor— missing and the point i pressed the chancellor on in the chamber today is an— chancellor on in the chamber today is an independent 0b are forecast for the _ is an independent 0b are forecast for the an— is an independent 0b are forecast for the an assessment to what all these _ for the an assessment to what all these measures mean, in terms of their— these measures mean, in terms of their wider— these measures mean, in terms of their wider economic impact. critically, _ their wider economic impact. critically, whether were still on track— critically, whether were still on track to— critically, whether were still on track to meet our physical targets. what _ track to meet our physical targets. what i _ track to meet our physical targets. what i really want to assurance on it what _ what i really want to assurance on it what this — what i really want to assurance on it what this forecast would have given _ it what this forecast would have given is— it what this forecast would have given is answering the question, are these _ given is answering the question, are these physical responsible measures? ithink— these physical responsible measures? i think we _ these physical responsible measures? i think we know the answer to that. -- physical— i think we know the answer to that. —— physical responsible. obviously we had austerity with george osborne, the whole thrust of tory 0sborne, the whole thrust of tory government has been about fiscal responsibility. are you worried that thatis responsibility. are you worried that that is being thrown away with what is being described as a gamble? brute is being described as a gamble? we need to know more. i get the impression that the government is looking _ impression that the government is looking forward to bringing different fiscal targets. we need to know what those are. so

different fiscal targets. we need to know what those are.— different fiscal targets. we need to know what those are. so you get the impression- -- _ know what those are. so you get the impression... from _ know what those are. so you get the impression... from what _ know what those are. so you get the impression... from what the - impression... from what the chancellor — impression... from what the chancellor said _ impression... from what the chancellor said today - impression... from what the chancellor said today it i impression... from what the i chancellor said today it looking at different — chancellor said today it looking at different fiscal targets. still probably a falling gdp from time but we don't _ probably a falling gdp from time but we don't know exactly what he means by that _ we don't know exactly what he means by that the _ we don't know exactly what he means by that. the first cause you to ask is is the _ by that. the first cause you to ask is is the target a credible target. if it is is the target a credible target. if it is _ is is the target a credible target. if it is do — is is the target a credible target. if it is do you then have a reasonable chance of hitting that target? — reasonable chance of hitting that target? we don't actually know the answer— target? we don't actually know the answer to— target? we don't actually know the answer to either of those questions at the _ answer to either of those questions at the moment. this is where the absence — at the moment. this is where the absence of— at the moment. this is where the absence of the 0pr forecast today makes the whole situation that much more _ makes the whole situation that much more cloudy. this makes the whole situation that much more cloudy-— more cloudy. this is your party doinu more cloudy. this is your party doing this- _ more cloudy. this is your party doing this. you _ more cloudy. this is your party doing this. you don't _ more cloudy. this is your party doing this. you don't feel i more cloudy. this is your party i doing this. you don't feel confident doing this. you don�*t feel confident because you don�*t have the framework around it to understand the figures for that how do you feel being in that position and how do you think other tory mps are feeling? i was just talking to rachel wreaths who is saying she actually believes that a large number of tory mps are going to be really uncomfortable in particular about the 45p tax rate going. and she thinks they may vote against it. i�*d going. and she thinks they may vote

auainst it. �* , going. and she thinks they may vote aainst it. �* , , , , against it. i'd be surprised if there are — against it. i'd be surprised if there are lots _ against it. i'd be surprised if there are lots of _ against it. i'd be surprised if there are lots of colleagues | against it. i'd be surprised if- there are lots of colleagues voting against _ there are lots of colleagues voting against tax cuts, it's in the tory dna— against tax cuts, it's in the tory dna to — against tax cuts, it's in the tory dna to get _ against tax cuts, it's in the tory dna to get taxes out of it we want to do— dna to get taxes out of it we want to do that — dna to get taxes out of it we want to do that. i do think they'll be some — to do that. i do think they'll be some concern about the general point they're _ some concern about the general point they're making about how realistic it fiscally— they're making about how realistic it fiscally of the measures being brought— it fiscally of the measures being brought forward. how easily are we going _ brought forward. how easily are we going to _ brought forward. how easily are we going to be able to get the growth rate up— going to be able to get the growth rate up such that we can fund those taxes _ rate up such that we can fund those taxes if _ rate up such that we can fund those taxes if we — rate up such that we can fund those taxes if we don't do that were going to either— taxes if we don't do that were going to either have to unwind this tax policy— to either have to unwind this tax policy or— to either have to unwind this tax policy or we're going to have to try and borrow— policy or we're going to have to try and borrow more or were going to have _ and borrow more or were going to have to _ and borrow more or were going to have to try— and borrow more or were going to have to try and cut spending. it could _ have to try and cut spending. it could lead _ have to try and cut spending. it could lead to some difficult choices for everyone down the line. so many movin: for everyone down the line. so many moving parts — for everyone down the line. so many moving parts because _ for everyone down the line. so many moving parts because obviously i moving parts because obviously inflation is 9.9% the bank of england tasked with bringing that down to 2%. taking money out of the economy, putting up interest rate, selling off some government bonds, not taking out a new government bonds, the government putting more money into the economy.— money into the economy. different directions. you _ money into the economy. different directions. you need _ money into the economy. different directions. you need a _ money into the economy. different directions. you need a forecast i money into the economy. different

directions. you need a forecast to l directions. you need a forecast to -et directions. you need a forecast to get your— directions. you need a forecast to get your head around all those issues — get your head around all those issues. and then see what all means in the _ issues. and then see what all means in the round — issues. and then see what all means in the round and what it means for fiscal— in the round and what it means for fiscal credibility.— fiscal credibility. absolutely. how do ou fiscal credibility. absolutely. how do you sell _ fiscal credibility. absolutely. how do you sell this _ fiscal credibility. absolutely. how do you sell this to _ fiscal credibility. absolutely. how do you sell this to voters? - fiscal credibility. absolutely. how do you sell this to voters? this i fiscal credibility. absolutely. how do you sell this to voters? this isj do you sell this to voters? this is your party and you are feeling twitchy about this. i your party and you are feeling twitchy about this.— your party and you are feeling twitchy about this. i think the most im ortant twitchy about this. i think the most important thing _ twitchy about this. i think the most important thing now _ twitchy about this. i think the most important thing now is _ twitchy about this. i think the most important thing now is that - twitchy about this. i think the most important thing now is that we i twitchy about this. i think the most | important thing now is that we have a close _ important thing now is that we have a close look— important thing now is that we have a close look at what this proposal are. we get answers to some questions — are. we get answers to some questions being discussed with him as chair— questions being discussed with him as chair of— questions being discussed with him as chair of the treasury select committee you'll see that chancellor putting _ committee you'll see that chancellor putting these questions to him and others _ putting these questions to him and others i— putting these questions to him and others. i think government right across— others. i think government right across will— others. i think government right across will have to put a shoulder to the _ across will have to put a shoulder to the wheel and go hell for leather to the wheel and go hell for leather to grow— to the wheel and go hell for leather to grow our— to the wheel and go hell for leather to grow our economy. the way we come out of _ to grow our economy. the way we come out of this— to grow our economy. the way we come out of this with it all going well is by— out of this with it all going well is by getting the economy growing. i think we've — is by getting the economy growing. i think we've all got to our put the shoulder— think we've all got to our put the shoulder to that particular wheel. these _ shoulder to that particular wheel. these questions are still hanging. what a fun name for the minister snap reaction was it�*s brilliant or bonkers? it�*s snap reaction was it's brilliant or bonkers? �* , . . , snap reaction was it's brilliant or bonkers? �* , ., ., , ., snap reaction was it's brilliant or bonkers? �*, ., ., , ., , ., bonkers? it's an answer to question which we will _ bonkers? it's an answer to question which we will get _ bonkers? it's an answer to question which we will get an _ bonkers? it's an answer to question which we will get an answer. - bonkers? it's an answer to question which we will get an answer. thinkl which we will get an answer. think that's— which we will get an answer. think that's fair— which we will get an answer. think that's fair to — which we will get an answer. think that's fair to say. how long? we've

clearly _ that's fair to say. how long? we've clearly got — that's fair to say. how long? we've clearly got to be delivering substantially on the growth plan before _ substantially on the growth plan before the next general election. i assume _ before the next general election. i assume that will be in 2024. the answer— assume that will be in 2024. the answer to— assume that will be in 2024. the answer to your question is probably 18 months' — answer to your question is probably 18 months' time, we need to be in a position— 18 months' time, we need to be in a position where we had demonstrated, -ot position where we had demonstrated, got the _ position where we had demonstrated, got the economy going, funding those tax cuts _ got the economy going, funding those tax cuts and we're living in a different _ tax cuts and we're living in a different world to one we've emerged from _ different world to one we've emerged from. . ~ different world to one we've emerged from. ., ,, i. ., ., , from. thank you for “oining us. let's no from. thank you for “oining us. me go newt from. thank you for “oining us. let's go now to i from. thank you forjoining us. let's go now to damien - from. thank you forjoining us. | let's go now to damien graham let�*s go now to damien graham medicus who isjoining me live. i think what was interesting is listening to that, chair of the treasury select committee talking about this is a big risk, a tory mp worried about the risk in this. we�*ve heard other tory mps also have real concerns today. separately we�*ve heard kevin holling rate

saying there good things in this announcement but balancing the books he said was a conservative principle. very worried they are, obviously about the levels of borrowing. the target you�*re talking about, address exactly that question, that borrowing i think the current target is boring should be going down in the next couple of years or so. this plan envisages a large amount of borrowing this year. i think 230 odd billion pounds this year. they�*re interesting to hear not only tory mps setting up an opposition to. you have opposition parties today criticising a tory government or its management of the public finances. labour today saying that this is unsustainable borrowing, that�*s what this is going to lead you and that is going to be bad for the economy. the liberal democrat leader ed davies saying it�*s irresponsible, it will put

pressure on interest rate, people will end up paying more. that is one area that the opposition artie are criticising, so level of borrowing saying it�*s in irresponsible management. the other area is the targeting of this. one analysis from the institute for fiscal studies suggest that when you look at the tax changes already brought in by conservative government, boris johnson�*s government freezing the levels, the levels at which you start paying taxes, these changes will only mean that anyone earning over £150,000 are the only people that benefit in total in the round. some of the richest earners, those over 150,000 may see £10,000 of benefits from this. 0pposition parties say that this is the tax cut here targeting the rich and the biggest corporations and doing very little for those who are struggling to make payment on their bills at the minute. those worried about

their mortgage payments. that also has been echoed by conservatives today. some conservatives saying julian smith, he said a huge tax cut for the very rich at a time of national crisis, realfear for the very rich at a time of national crisis, real fear and anxiety amongst low income earners. the text that is wrong, he said. the governments view on all of this is that this will deliver growth and growth will deliver rising living standards. that is the risk that it�*s taking. the risk that it is betting on and it�*s that is saying by doing these headline grabbing things it is sending out a message that it wants to be open to attract business to the uk, to signal investment climate is changing and stimulate growth. as you would just hearing their that is something they are going to have to deliver on and probably before the next election. thank you. saying 18 months is

basically when you will need to see this policy delivering as they are suggesting it well. in terms of cuts to the tax rate also stamp duty. the health and social care levy is more money inyourpocket but targeted at those who pay, the biggest earners. i think they can show that to the audience now. you�*ll see in the chart coming up that someone on an average earning, average full—time is around 30 grand a year. they�*ll be taking home an extra £400 a year as a result of the changes that we announced this morning. if you go to the top of the scale someone bringing home £200,000, they will be taking home an extra 5000 both of you could see they are earning about seven times more. the benefit to them is 13 times bigger. this is

unashamedly targeted at those who earned the most in the government. they would argue that the ones who pay the most tax. in sending out is very positive pro business, pro hiring will get more growth in the economy. tell hiring will get more growth in the econom . , ., ,., hiring will get more growth in the econom . , ., , ., , hiring will get more growth in the econom. ,., , ., , , economy. tell us about stamp duty. we were just _ economy. tell us about stamp duty. we were just talking _ economy. tell us about stamp duty. we were just talking about - economy. tell us about stamp duty. we were just talking about stamp i we were just talking about stamp duty in relation to england and northern ireland.— duty in relation to england and northern ireland. scotland ad well have their own _ northern ireland. scotland ad well have their own system, _ northern ireland. scotland ad well have their own system, their i northern ireland. scotland ad well have their own system, their own | have their own system, their own rates of tax was up just to remind people, stamp duty in england and northern ireland, it�*s a tax you pay a home that you buy about 200 and £50,000. and the rate you pay, they 9° up £50,000. and the rate you pay, they go up as the property gets more expensive. we can show that to the viewers i think we got a chart on that. that is showing below a quarter of a million, they don�*t pay a penny. that would buy you a terrace i was at most. most places outside the southeast, first—time buyers they don�*t pay until you get up buyers they don�*t pay until you get up to for hundred and 20,000 put up that�*s the price of a flat, an average flat in london —— four

hundred 25,000 for the you can see as you go up the rates to get more expensive and quick at the house of prices was that the chart is not comprehensive. the government put out their own stamp duty who, you�*re invited to take a look of that. you could see the sums are big and you don�*t want the surprise after a major opera house and get landed with us. do you make those calculations before you see the deal. calculations before you see the deal , calculations before you see the deal. , ., ., , . ., deal. tell us what has changed with stamp duty- — deal. tell us what has changed with stamp duty. mainly _ deal. tell us what has changed with stamp duty. mainly are _ deal. tell us what has changed with stamp duty. mainly are around i deal. tell us what has changed with stamp duty. mainly are around that| stamp duty. mainly are around that 300 to £600 _ stamp duty. mainly are around that 300 to £600 range. _ stamp duty. mainly are around that 300 to £600 range. those - stamp duty. mainly are around that 300 to £600 range. those are i stamp duty. mainly are around that 300 to £600 range. those are the | 300 to £600 range. those are the biggest changes. the government has spent about a tenth of what they�*ve been taking in and stamp duty, taking people out of the stamp duty rate for the paper lifted the threshold at which you start to pay and that has a huge affect on first—time buyers paying, buying homes in the 300 to £600,000 range. they could be saving £10,000 at the most everyone else it�*s about two

and half grand off the price of stamp duty. the hope is that will lead us to more people being willing to sell, more people willing to buy, more people doing up there homes in order to get a good price, a bit more economic activity. maybe builders coming into meat supply. sidney said, it is very uncertain what the effects will be on the market because prices could go up. evenif market because prices could go up. even if they stay the same houses become less affordable as interest rates go up. become less affordable as interest rates go up— now it�*s time for a look at the weather with ben rich. good afternoon. many parts of the uk are seeing quite a lot of sunshine at the moment. bright but rather cool weather spreading southwards, sunshine and a scattering of showers, but this band of cloud and rain continuing to affect the south—east corner.

that will be a feature, actually, for much of the next 24 hours. very slow—moving, this band of cloud and rain, so it will linger across the south—east of england into parts of east anglia as we go through this evening. elsewhere, we will see clear spells, scattered showers, particularly in eastern scotland in northeast england. a cold night in parts of scotland, milder further south and east where we start tomorrow with more cloud and still with those outbreaks of rain, which could linger for a good part of the day. elsewhere, sunny spells and scattered showers. most of the showers across england and wales, not as many and another fairly cool day to come on sunday. best of the sunshine will be down towards the south. more cloud across the north of the uk. welcome to bbc news with jane hill. these are the latest headlines. the chancellor has announced the government�*s many budget with cuts on income tax and stamp duty. the

cap on bonds been lifted. they versus the changes are demolition of the government�*s policies of the last 12 years. the victim �*s commissioner has resigned, describing the system as being in damn hillary mantell, best known for her trilogies, damn hillary mantell, best known for hertrilogies, has damn hillary mantell, best known for her trilogies, has died —— damn hillary mantell, best known for hertrilogies, has died —— dame hillary. we�*ll talk more about hillary. we�*ll talk more about hillary mantell later, and we have the film review, right now it is time for all the sport with gavin. plenty of steak at england�*s time. kick off injust kick off in just over two hours. alex is in italy for us. england

will be wearing special armbands, and what does it represent? 50. and what does it represent? so, encland and what does it represent? so, england have — and what does it represent? srr, england have joined and what does it represent? 557, england have joined nine other england havejoined nine other nations in wearing the one love armband in the world cup in qatar. the initiative had started in 2020 in the netherlands, and it�*s a message about promoting diversity and inclusion and one against discrimination. there have been talks about a united stance from players about doing something about their human rights. harry kane said he spoke to two players about this and it has been criticised by human rights campaigners, but gareth southgate said we have to be realistic and there�*s only so much the players can do. also went on to say that although there have been

criticism, they cannot please everyone. criticism, they cannot please everyone-— everyone. looking to avoid relegation. _ everyone. looking to avoid relegation, but _ everyone. looking to avoid relegation, but what i everyone. looking to avoid relegation, but what are i everyone. looking to avoid i relegation, but what are their chances against italy.- chances against italy. gareth southgate — chances against italy. gareth southgate said _ chances against italy. gareth southgate said italy - chances against italy. gareth southgate said italy are i chances against italy. gareth southgate said italy are one | chances against italy. gareth i southgate said italy are one of the tough nations, but in that conference, an italian during earth —— journalist asked about the italy squad. there have players from the second division, because roberto mancini is preparing for a euros because the italian didn�*t qualify for euro 2020. england are four games without a win, losing to those nations leads games, but southgate said he wants to use these games so

the players feel better about themselves. these are the last two games before the world cup. there was a lot of talk about the players around the form and none more so than harry maguire, but gary mcguire set form doesn�*t play a massive issue in international football. set form doesn�*t play a massive issue in internationalfootball. he would be very happy if they pick up a win tonight. would be very happy if they pick up a win tonight-— a win tonight. alex, thank you very much indeed- _ a win tonight. alex, thank you very much indeed. christian _ a win tonight. alex, thank you very much indeed. christian otto - a win tonight. alex, thank you very i much indeed. christian otto renaldo much indeed. christian 0tto renaldo has been charged by the fa over footage which appears to show him knocking a phone out of a fan�*s hand. —— cristiano. he was cautioned by police regarding the incident in august. england are under way in the third of the t20 internationals in pakistan after the incredible run chase. another huge target 44 will

jack�*s. they set pakistan target of 222 to win the series. level at 1—1. in london, roger federer is set to play his final match against rafael nadal. what a sight to see there, and team europe are already 2—0 up. stefan us 60 pots be diego schwartzman in straight sets. gavin, thank you very much. let us turn our attention to ukraine. a united nations commission

of inquiry investigating alleged human rights violations in ukraine has concluded that war crimes have been committed. the commission listed russian bombing of civilians areas, numerous executions, torture and sexual violence, including assaults on children. the news comes as four ukrainian regions controlled wholly or in part by russian forces have begun so—called referendums onjoining the russian federation. ukraine says the votes have no legal force. the process in the regions of donetsk, luhansk, zaporizhzhia and kherson has been described by western countries as illegal, and is seen as a step towards annexation of ukrainian territory by russia. 0ur correspondent hugo bachega sent this report from the capital kyiv. in this so—called referendum, there�*s only one expected result — the one that russia wants. at this polling station in donetsk, a school principal shows how the vote will happen, and how things are likely to go. since 2014, we have

no doubt, she says. "since 2014, we have no doubt," she says. "we are russian." ukraine and western countries say this process has no legitimacy. they claim this is a land—grab attempt by russia, but this hasn�*t stopped russian—backed officials from going ahead. these families in zaporizhzhya have fled the occupation. they don�*t want their cities to be part of russia. translation: i don't support the referendum because i how can you illegally take away part of ukraine, come to others�* homes and do what they please? i don�*t support it. translation: i think that my town and region fully belong to ukraine. | this is all very hard, and i think there is no place for russians on our land. but on russian television, this is what you see — a free and fair vote.

translation: today, we are opening a new page in our history. _ it's the first day. of the referendum, and we vote tojoin i the russian federation. here in kyiv, officials say the vote is illegal and that nothing will change. they also claimed the russians had committed torture and sexual violence. here in kyiv, officials say the vote is illegal and that nothing will change. they see it as russia�*s reaction to its recent defeats on the battlefield. but this could lead to an escalation in the war. russia could argue that attacks on those areas are attacks on russian territory. president putin�*s forces are losing ground as ukraine advances. with this vote, russia hopes to be able to change the course of the war. hugo bachega, bbc news, kyiv. i�*m joined now from kyiv by 0leksandr merezhko, an ukrainian mp and head of the parliament�*s

foreign policy committee. good evening and thank you for being with us. how worried are you about these referendums, these votes, whatever you want to call them? {lil whatever you want to call them? of course we whatever you want to call them? oi course we are worried about this, and the parliament of ukraine had already made several resolutions, several appeals regarding these fake recommend him, because these so—called referenda are nothing more than grants committed by russia. putin is trying to annex occupied territory of ukraine. it�*s very dangerous because he is blackmailing regarding the use of nuclear weapons. regarding the use of nuclear weapons-— regarding the use of nuclear weaons. , ., , weapons. right, so, is he realistic? do ou weapons. right, so, is he realistic? do you really _ weapons. right, so, is he realistic? do you really believe _ weapons. right, so, is he realistic? do you really believe you _ weapons. right, so, is he realistic? do you really believe you would i do you really believe you would ever do that? i do you really believe you would ever do that? ., �* , , do that? i don't believe in this because to — do that? i don't believe in this because to me, _ do that? i don't believe in this because to me, he _ do that? i don't believe in this because to me, he is - do that? i don't believe in this because to me, he is only i because to me, he is only blackmailing and bluff. it�*s a new kind of bluff to scare the western

countries and prevent them from supplying ukraine with weaponry. in reality, i don�*t believe in this because if it happens, it will totally isolate russia, it will mean the destruction of russia as a state. for example, even such countries which are sort of neutral are china and india. i don�*t think they will be happy with the use of nuclear weapons, and they will have to also participate and isolation in russia as a rogue state. so to also participate and isolation in russia as a rogue state.— russia as a rogue state. so you don't believe _ russia as a rogue state. so you don't believe he _ russia as a rogue state. so you don't believe he will _ russia as a rogue state. so you don't believe he will take i russia as a rogue state. so you don't believe he will take it - russia as a rogue state. so you | don't believe he will take it that far, but what do you think will happen if we get a result in the coming days that says presumably, these four regions want to join the russian federation? what happens then in practical terms? l russian federation? what happens then in practical terms?— then in practicalterms? i don't think anything _ then in practicalterms? i don't think anything substantial- then in practicalterms? i don't think anything substantial will| think anything substantial will happen. because the fate of ukraine and this war is decided on battlefield. i'm sure that ukraine

will continue to liberate territories, it will continue to liberate the occupied territories in the east in crimea, and we're going to do it anyway. to me, this declaration by putin is nothing but an act of desperation.— declaration by putin is nothing but an act of desperation. right, but he annex crimea. _ an act of desperation. right, but he annex crimea, so _ an act of desperation. right, but he annex crimea, so why _ an act of desperation. right, but he annex crimea, so why won't - an act of desperation. right, but he annex crimea, so why won't he - an act of desperation. right, but he annex crimea, so why won't he do i an act of desperation. right, but he | annex crimea, so why won't he do it this time? ~ , u, , annex crimea, so why won't he do it this time? ~ , h, , , ., this time? well, because he is going to find a pretext _ this time? well, because he is going to find a pretext or— this time? well, because he is going to find a pretext or create _ this time? well, because he is going to find a pretext or create it - this time? well, because he is going to find a pretext or create it and - to find a pretext or create it and say something like this — from now on, its territory of russia and to protect it, i can use all kinds of weaponry, including nuclear weapons. thank you so much for your time, 0leksandr, head of the ukrainian parliament orland —— oleksandr, head of the ukrainian parliament orland —— foreign policy committee. news from hi ron coming from the last little while —— iran, you'll be sure of the protests

following the death of the 22—year—old woman who had been arrested by the so—called morality police. a norwegian based ngo arrested by the so—called morality police. a norwegian based n60 is saying that it believes 50 people have been killed in a crackdown on those protests. it is just coming from that norwegian organisation, some more to come, but increasing concern and protests very much continuing. scientists say early human trials of a new type of cancer therapy have shown promising results. the treatment involves using a common virus to infect and destroy harmful cells. about a0 people had a drug directly injected into their tumours. researchers say the treatment could offer a lifeline to people with advanced cancer, though larger scale studies will now be required.

coming up in the next few moments, it is the film review. just to explain, it was recorded earlier in the week and let's take a look. england have dual concerns. a defeat against italy and they will be relegated and gareth southgate's preparations won't be health either. st. helens are preparing to go for record—breaking fourth super league title in the grand final, but never fold fold trafford in old trafford in previous and old trafford in previous attempts. we will look ahead to that and others and roger federer�*s final match before retiring. all on sportsday at 6:30 p:m., but it's now time for the film review.