tv BBC News BBC News September 24, 2022 6:00pm-6:31pm BST
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this is bbc news. the headlines at six... the chancellor kwasi kwarteng has defended his tax cuts aimed at boosting economic growth, saying they're fair for all, but it's receiving a mixed reaction from the public. i think it probably will help, yes, to a degree, but depends what bracket you're in of course in terms of income. i mean, does that even touch the sides? i don't know. we'll see. the labour leader sir keir starmer arrives in liverpool ahead of his party conference, telling crowds he'll set out the dividing lines between labour and the new tory government. this conference is our chance to sit out the alternative, to make our
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case, an economy that works for working people, growth for everyone, wherever they are, a fairer, greener future. let's do it! —— our chance to set out the alternative. world powers condemn the self—styled referendums being held in parts of ukraine on whether to join russia the home secretary, tells police chiefs that common sense policing must take priority over diversity and inclusion initiatives as she sets out her priorities for her crime—cutting agenda. a leading think tank — the resolution foundation — has said that middle income earners stand to lose the most money from the tax policies announced yesterday by the government, with the very richest benefitting most. but the government insists the tax cuts are fair to all and will get the economy growing. our business correspondent
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marc ashdown reports. a bit more money for everyone will get businesses investing and people spending — that's the government's aim — but at this market in buckinghamshire there's scepticism about who will benefit most from these tax cuts. well, the higher end will be a lot better off, but the lower end, is it a penny? it's nothing. considering the cost of living and inflation and the bills. it will take six months to kick in, really, won't it? and see if it does help. just hopefully it does. according to the thinktank the resolution foundation the top 5% of earners will overall be about £2,500 better off, while the lowest 5% will be about £9 worse off, but the middle fifth of earners, labelled by some as the squeezed middle,
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will be about £780 worse off. this was a budget where the distributional impact was very clearly the biggest gains goes to those who have the highest incomes. it's a growth or bust kind of strategy, which is certainly different to what we have seen before. a lot of what was announced yesterday was simply reversing planned tax rises, personal and corporate, and ministers insist these plans will grow the economy for everyone. we're not into the politics of envy where we deliberately penalise people who have been working hard. we want to cut taxes for everybody. and the danger, by the way, if you have tax rates that are too high, for either companies or individuals, you drive them away. the previous chancellor froze the basic rate at which everyone starts paying tax which, with inflation so high, is currently leaving everyone worse off. treasury insiders confirm that might now be looked at as part of a wider review of all taxes. a full budget could be on the cards before the year is out. the chancellor might not be done with tax cuts just yet. marc ashdown, bbc news. let's speak to jonathan portes, professor of economics and public policy at king's college london.
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good to have you with us this evening. thank you for your time. the government says these tax cuts are going to promote economic growth. i would love to get you to explain... 0h, growth. i would love to get you to explain... oh, i'm so sorry. we thought we'd lost you. we got you back. fingers crossed the line stays steady. i would like you to explain for our viewers how tax cuts might promote economic growth. what is economic behind that and what you think the likelihood of success is? spending supports demand and in the thatis spending supports demand and in the that is likely to work and in particular the energy price degree will... support peoples incomes, let
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them spend more than they otherwise would have the means any recession will be less deep than it otherwise have been and in that sense i ink the what the government has done in the what the government has done in the is economically and politically inevitable and makes a certain amount of sense. but the big gamble here these large permanent tax cuts which, as you just said, as the resolution foundation announced, go overwhelmingly to the better off on this really is trickle—down economics. it is the idea that if you give the rich more money, let them keep or more of their already extremely high earnings, that will attract people from abroad, it will promote investment, it will make people more entrepreneurial and at will, in turn, at some point, generate growth with benefits to all of us. i have to say the evidence that the uk context of current rates of task is very thin indeed. we have tried cutting taxes for the better
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off before. it didn't really help raise our long—term rate of growth but i think most economies would agree that other measures to promote growth like improving skills and education, investing in infrastructure and so on are more important for generating long—term growth. important for generating long-term urowth. ~ ., , important for generating long-term urowth. ., , ., important for generating long-term urowth. ~ ., , ., ., growth. where does that leave levellina growth. where does that leave levelling up? _ growth. where does that leave levelling up? if— growth. where does that leave levelling up? if you _ growth. where does that leave levelling up? if you look - growth. where does that leave levelling up? if you look at - growth. where does that leave - levelling up? if you look at sectors who are taking industrial action. certain level of pay rises on certain level of growing inflation. talking about removing bonuses and allowing them to keep more money but then also believed dominating his inflation? distractors might not also lead to increasing inflation? where does that leave us? there is no serious — where does that leave us? there is no serious intention _ where does that leave us? there is no serious intention in _ where does that leave us? there is no serious intention in my - where does that leave us? there is no serious intention in my opinion i no serious intention in my opinion from the government administration to level at the country in any serious way. we have also seen analysis from another think tank
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which says as you would expect tax cut the benefit higher earners also tend to benefit london in the south—east because that is where higher earners are concentrated, so the net effect of this will be to increase inequality, increase inequality between london and the south—east and the less well off regions, increase inequality between richer and poorer people, increase other dimensions of inequality between the old and young and so forth so it certainly won't won't levelling up. where, you know, under michael gove at least there was a coherent and ambitious agenda around levelling up which evolved quite a lot of state intervention to promote dominic —— involved quite a lot of state intervention to promote equality between different parts of the country don't think we are likely to see some of this but they have announced some policy such as so—called investmentjones dome
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so—called investment jones dome exams so—called investmentjones dome exams which are designed to incentivise economic activity in particular areas of the we don't know the details of those yet. we saw in the market reaction the pound falling for almost a0 year low. a nervousness to in response to these announcements. do you think that was announcements. do you think that was a bit of a kneejerk reaction, that actually the pound will stabilise? well, ifi actually the pound will stabilise? well, if i knew what was going to happen to the pound instead of talking to you i would be out there investing my own money and trying to secure my retirement!— secure my retirement! welcome that ou are a secure my retirement! welcome that you are a very _ secure my retirement! welcome that you are a very educated _ secure my retirement! welcome that you are a very educated guess - secure my retirement! welcome that you are a very educated guess on - you are a very educated guess on that, then, shall we say.- that, then, shall we say. more importantly. — that, then, shall we say. more importantly, the _ that, then, shall we say. more importantly, the reason - that, then, shall we say. more importantly, the reason for. that, then, shall we say. more i importantly, the reason for that, shall we say, is the government has announced large unfunded permanent tax cuts with no plan... as i said, the short—term measures were both economically and politically inevitable. these long—term tax cuts which are not funded were not and what the markets are seeing is that in contrast every covenant in the
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last four years which is at least claim to have both an objective of and a plan for medium—term fiscal sustainability, the idea that over time the governments finances have to be sustainable, this government doesn't really believe that and of course it rammed home that message ljy course it rammed home that message by sacking the permanent secretary to the treasury and telling the office for budget responsibility but it wasn't allowed to forecast the impact of this budget on government finances. so in addition to the policies that telling the 0b r it wasn't even allowed to tell us what this meant for government finances, that sends a very clear message to the markets that the government doesn't really have a plan to manage the country's finances anything it's that... is the country's finances anything it's that... , , ., ., the country's finances anything it's that... ,_, ., . that... is planning to increase urowth that... is planning to increase growth and — that... is planning to increase growth and productivity, - that... is planning to increase growth and productivity, isn't| that... is planning to increase i growth and productivity, isn't it? well, i think the idea that you are going to balance your books by increasing growth and productivity,
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remember that, increasing growth and productivity, rememberthat, of increasing growth and productivity, remember that, of course, increasing growth and productivity, rememberthat, of course, every government wants to increase growth and productivity. there is nothing new about that. indeed, the 2.5% target for growth that this government set is exactly the same one that gordon brown set at some point in the mid—2000 is so there is nothing new about saying you want to increase growth in productivity and using that to help finance public services and reduce taxes but governments haven't traditionally banked the proceeds of that and spent it long before the actual growth came along. {lilia spent it long before the actual growth came along. 0k, professor jonathan portis, _ growth came along. 0k, professor jonathan portis, professor- growth came along. 0k, professor jonathan portis, professor of - jonathan portis, professor of economics and public policy at king's college london, thank you very much. king's college london, thank you very much-— the labour leader, sir keir starmer has arrived in liverpool ahead of the start of the party's annual conference. he's condemned the package of tax cuts unveiled yesterday by the chancellor, calling them "tory casino economics" which — he says — are gambling with the finances of every family in the country.
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the government insists its package of measures, including scrapping the top rate of income tax, will help kick—start economic growth. here's our political correspondent iain watson. labour has been out of power for more than a decade but they now believe their political fortunes could be turning around. just as their party conference gets under way, liz truss has made the political dividing lines with the opposition far more stark. applause arriving in liverpool, the labour leader believes this will work to his advantage. after 12 long years of tory failure, didn't they just show their true colours yesterday? crowd: yes! and earlier, the party's deputy leader argued that yesterday's tax—cutting, not so mini budget, had now given labour an opportunity to set out a distinct vision on the economy. the conservatives have failed to grow our economy over 12 years and now we are seeing that there is a last—ditch attempt at going for the risky strategy byjust helping those at the top.
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——casino attempt. i don't believe that will give us the growth and investment we need for the future or will help those that are working hard today. over loudspeaker: my city, my people, my heart. - my city, my people, my heart. but not everything in the wider labour movement is harmonious. keir starmer has told his senior mps to stay away from picket lines but not far from his conference a strike has flared up at liverpool docks. the people on the picket line here are members of unite, the union that gives more money to the labour party than any other. that union's leader met keir starmer in recent days and what she wants to see is a more ambitious economic policy from him and perhaps, unsurprisingly, far more support for striking workers. i think he wants to make it very clear that he's supporting workers and the reality is actions will speak louder than words. for me, jam tomorrow does not pay the bills as far as workers are concerned.
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today is the time they're on the picket lines, today is the time that they want labour to put their arm around them. this is a crucial conference for us on the left... and left—wing delegates are pushing for a motion to be debated that would support mps joining picket lines and which would call for pay rises to be at or above inflation. but keir starmer will be keen to show that his party has emerged from the political storms of thejeremy corbyn era, and that the clear blue water in british politics is now between government and opposition. iain watson, bbc news, liverpool. earlier our political correspondent, ben wright, spoke to us from liverpool. meant that redraws the political battle lines between labour and the government. it was a seismic moment. the labour party conference is
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always a really important moment for its leader sir keir starmer ware for a few days all the focus on the media is on him and his party in the proposal they put forward to voters and resource of the proposals in the conference centre earlier this happening. it is still cranking up here tomorrow at the moment and delegates are coming tomorrow. i spoke to shadow minister lucy powell and asked for her reaction from the chancellor's statement to the chancellor. well, this budget — as it was a budget in all but name — we think it is taking the country in the wrong direction. if you take the packages as a whole and what they are offering we think it is the wrong approach because they are basically saying that if you are very wealthy,
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we're going to give you more money back in pay packets, they're going to get rid of the a5p top rate of tax, they're going to give bankers bonuses. they believe firstly that that will stimulate growth, which we don't believe in, and secondly that that growth will trickle down to everybody else, and that just won't happen. we've had this economic experiment here in the uk for the last 30 years and it's not worked for people here in liverpool in the north of england over that 30 years and it won't work again. it's not the kind of growth we need in this country. we need growth in all parts of the country for everyone and the benefits to be fairly shared. lucy powell confirmed labour's approach to those two tax changes. labour will oppose in the house of commons the abolition of the top rate but it will support cutting the basic rate from 20 pence in the pound to 19 pence, but i think what happens in terms of labour's tax proposal
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at the next election remains unclear and will be a big rush in the next election. the question first for labour is how they can really differentiate their plans when economic growth is nowhere near where we should be. we have sclerotic stagnant growth in this country, a cost—of—living crisis. the fundamentals both parties are facing the same but elusively they're standing very different. are there likely to be any internal flashpoints for sir keir starmer? he was heckled at the last conference, wasn't he? it's hard to say, and i think the left, jeremy corbyn's former former wing of the party, momentum are certainly a presence here at the conference and are trying to get some
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of the measures they care most about debated here — and we won't hear exactly what will be debated until tomorrow — but for the most part quite united. keir starmer is not in any doubt right now and it looks like he is set until the next election but i think there are a number of issues we want to keep an eye on and when it clearly is the question of industrial unrest and strikes. as we know sir keir starmer has told his party to stay off the picket lines when it comes to the rail strikes happening and there are many in the party uncomfortable with that position and now they've seen the tax cuts announced by the government yesterday and the fact the very richest are going to benefit the most i think there will be an increasing pressure on labour leadership, many from the left of the party, when it comes to the question of public sector pay rises with abating that should happen to side much more with public sector and strikers and perhaps he has done already. and strikers ——than perhaps he has done already. so that's one issue.
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another one that might crop up is that there's quite a move at the moment within the party to embrace proportional representation, something coming up in the party for a number of years. some of the union leaders ink that is something labour should be investigating as well and that could rumble through the conference as well. ben wright in liverpool. the headlines on bbc news... the chancellor kwasi kwarteng has defended his tax cuts aimed at boosting economic growth, saying they're fair for all, but it's receiving a mixed reaction from the public. the labour leader sir keir starmer arrives in liverpool ahead of his party conference, telling crowds he'll set out the the alternative to what he called the tory government's "casino economics". world powers condemn the self—styled referendums being held in parts of ukraine on whether to join russia. we can stay with that story now because russian troops are reported... russian troops are reported to be going door to door in occupied regions of ukraine, forcing people to vote in a series of so—called "referendums" onjoining russia. the g7 group of wealthiest nations has condemned what it says are sham referendums and ukraine has dismissed the process as a farce with no legitimacy.
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0ur ukraine correspondentjames waterhouse reports.. russia's version of their so—called referendums. a free and fair democratic process where ukrainians in kherson decide whether they want to join russia. but, on the same spot today, in the city centre, it's deserted. ukrainian officials have posted footage like this. loud knocking apparently ballots being taken door—to—door, with the support of armed men. on this unverified cctv clip, a man is asked what apartment he is from. "i don't live here." "are you sure?" "yes", he says. he carries on down without looking over his shoulder. we've spoken to several people under russian occupation. outgoing dialling tone.
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hello. hi. including natalia — not her real name. nice to hear you, too. a producer has voiced her words. what are your friends and family thinking about this? do they want to go and vote? translation: all of my friends are against the referendum, - because we are sure that the referendum will be rigged. we don't understand why we should answer the question that is written on the ballots. we don't want to be part of russia. driven by losses on the battlefield and growing criticisms back home, the kremlin wants to legitimise its presence in ukraine, while threatening an escalation if ukraine keeps pushing back. this isn't about democracy. it's a move straight out of the russian playbook. the result will be what russia needs it to be. and ukraine is calling on the world to see right through it. james waterhouse, bbc news, in kyiv.
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meanwhile, russians are continuing to leave the country in their thousands following president putin's announcement of mobilisation of at least 300,00 extra troops last week. a queue said to be more than six miles long at the border between georgia and russia has been reported, as men attempt to avoid being called—up. officials in finland say the number of russians arriving there has more than doubled in the past week. 0ur correspondent reyhan demytrie is in tblisi. 0nline maps of the russian internet company, yandex, show that the queue on the russian side of the border is about eight kilometres long, but there are reports that congestion, traffic congestion stretches back all the way to the nearest russian town, of vladikavkaz, which is 30 kilometres away from the russia—georgia border crossing. there are people who have been queueing for more than 2a hours.
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i've been in touch with one man who told me that he has spent more than 26 hours in the queue. he described the situation as chaotic. he said there were no food or toilet facilities. but the vast majority are desperate to escape being drafted. many of the travellers are of fighting age, and they want to leave the country because they don't want to be part of the ongoing mobilisation. there are limited options left for russians, where to go. at the moment, the border with kazakhstan and mongolia remains open. three baltic states have closed their borders for russians. in georgia, they do not need a entry visa, and that's one of the reasons why so many are trying to come here, but once in georgia they're unlikely to get a warm welcome from the georgians because of the poor history of relations between these two countries. georgia and russia fought a war back in 2008, and many of those wounds
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are still not healed. georgians want to know why russians are escaping their country, why are they not staying in russia and not resisting vladimir putin and his war in ukraine? reyhan demytrie reporting. buckingham palace has published in the last shot while a photograph showing elizabeth ii's final resting place at the king george vi memorial chapel in windsor. this feature a register bearing the late queens name and those of her parents and indeed her husband, prince philip, indeed her husband, prince philip, in the royal chapel in windsor. the stone is made of black belgian marble and the queen was interred there on monday after the state funeral. this photograph released by buckingham palace in the last few
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minutes. a gym in cornwall is harnessing the power of boxing to help improve the lives of people with parkinson's. club members with the condition — who call themselves the parky blinders — say special training sessions are helping with some symptoms of the disease. andy birkett has been speaking to some of them. parkinson's is an awful disease. it started to affect my speech. mine left side started to tremor. sleepless nights. anxiety. life0changing symptoms. boxing training cannot cure or reverse the disease but it can help. it has made a big difference. it has helped with my tremors and a lot of my speeches come back now. it is so good for your coordination.
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we do a lot of fun tasks for memory as well as the arms and legs and so it is good for your brain. you get a lot of balance issues with parkinsons and it helps with balance as well. the group, based all over cornwall love a good pun and have named themselves the parky blinders. it hasn't gone unnoticed with nigel travis, who played erasmus lee. by the order of the parky blinders, i reckon you're going to change some lives using boxing. i've heard all about your project and i think it is a wonderful thing that you're doing and it genuinely sounds fantastic. i wish you all the best and i hope to see you soon. god bless. don't be fooled — it's not all exercise. the sessions usually end with cake. the social network that people have created around the group is so satisfying, because there seem to be a little bit of a gap in that. also, i havejust made lovely friends. it is fantastic and
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i'm learning more, especially afterwards when we socialise, you learn so much more about them, their medication, how it affects them. then i can tailor what we do to assist them. so it's almost like a one—to—one session within the group. having secured funding, this pilot scheme got the green light at the start of the year. the parky blinders are now hoping to branch out and offer other activities to help support people with the disease. but i suspect cake will be involved, whatever they do. andy burkett, bbc news. a uk euromillions player has won £171 million in last night's draw. this morning, thatjackpot winner is now richer than adele or ozzy osbourne. the prize is the uk's third—largest ever. just 16 uk players have won more than £100 million in the lottery�*s history. now it's time for a look at the weather with darren bett. hello. most of the showers today have been across england and wales but this evening and overnight will decay, just to keep a few of these going around there is no three coast
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for a while. the many, skies will clear and it will get cold overnight, colderthan clear and it will get cold overnight, colder than it was last night. temperatures for — 5 degrees, not quite as cold in the north of scotland, but is beginning to pick up scotland, but is beginning to pick up here. across england and wales we start dry and sunny. not quite as cold in scotland and northern ireland ahead of this rain which comes in scotland and northern ireland ahead of this rain which comes into northern scotland in the afternoon. gets windy in the afternoon. gets windy in the afternoon and gales in the north—western images similar to today so 16—17 typically. rain by the time we get to monday morning as an english channel, sweeping through quickly followed by sunshine and showers. very much stronger northerly wind so temperatures at best 15—16 in the south but feeling cold and the wind.
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doesn't even touch the sides? we will see _ the labour leader sir keir starmer arrives in liverpool ahead of his party conference, telling crowds he'll set out the dividing lines between labour and the new tory government. we will make our case for growth for everyone everywhere and a fairer, greener future. everyone everywhere and a fairer, greenerfuture. let's do it! world powers condemn the self—styled referendums being held in parts of ukraine on whether to join russia. the home secretary, tells police chiefs that common sense policing must take priority over diversity and inclusion initiatives as she sets out her priorities for her crime—cutting agenda. in a moment we'll have the film review with mark kermode — but first on bbc news it's time for sportsday.
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