hello, good morning. this is bbc news with the latest headlines: one of the world's most important financial institutions, the international monetary fund, criticises the government's tax cuts — and calls on ministers to �*re—evaluate�* their plans. these statements are common with regard to emerging market countries with problematic policies, but not often about g7 countries. this, unlike other fluctuations in the market, is a self—inflicted wound. these were the deliberate decisions of the government on friday. following on from the mini budget, some lenders have halted mortgage offers for new customers, others have said they will increase rates on fixed mortgages. are you a first time buyer, recently taken on a mortgage

or looking to buy — how is this impacting you? do get in touch on twitter @annitabbc or use the hashtag #bbcyourquestions. price rises in the shops have hit another record high. figures show annual shop inflation accelerated to 5.7% in september. the president of ukraine has pledged to protect citizens in areas of his country which could be annexed by moscow — after the kremlin held unofficial referendums. they will always say we are too small, too slow, too weak, too full of fear... and coming up — actor michael sheen performs a new rendition of his world cup rallying cry to the wales football tea m.

good morning and welcome to the bbc news channel. the international monetary fund — which works to promote stability in the global economy — has criticised the government's plans for tax cuts, warning the measures are likely to fuel the cost—of—living crisis. in an unusually outspoken statement — the imf said the uk's developments were being closely monitered, and said untargeted fiscal packages were not recommended during a period of high inflation. it warned the government — it's mini budget risked increasing inequality. the white house also criticised the government's policy — saying it was important to focus on �*fiscal prudence, and fiscal discipline�*. the pound dipped in asian trade this morning — standing at around $1.00. the imf said that the government's fiscal plan in late november would give it an opportunity to �*re—evaluate�* tax measures —

�*especially those that benefit high income earners. �*the current uk government proposals would scrap the top rate of income tax, and end a cap on bankers�* bonuses, among other measures. the announcement on friday sparked financial turmoil, as investors dumped the pound. on monday the pound fell to record lows against the dollar. some of the country�*s biggest lenders suspended mortgage deals amid the uncertainty. the treasury said: "we are focused on growing the economy to raise living standards for everyone." adnan mazarei, former deputy director at the imf — speaking on the today programme to sean farrington — gave this reaction. the imf doesn�*t make such strong statements about g7 countries. these statements are common with regard to emerging market countries with problematic policies, but not often about g7 countries.

so what is it about the announcements from kwasi kwarteng that has spooked them to make this move? i think they�*re worried that the tax cuts are permanent. they are afraid that the budget financing needs will go up. they are afraid... and they�*re requiring more borrowing domestically. inflation rising, requiring interest rate increases by the bank of england. and there being a policy conflict between the treasury and the bank of england. at the same time, the united kingdom is running a large current account deficit and relies on foreign financing. our business correspondent marc ashdown is with me. good morning to you. remind us what is the imf and its role. it is good morning to you. remind us what is the imf and its role.— is the imf and its role. it is the

lender of _ is the imf and its role. it is the lender of last _ is the imf and its role. it is the lender of last resort, _ is the imf and its role. it is the lender of last resort, the - lender of last resort, the international monetary fund, a big bank, the world�*s overdraft, really, stepping in when countries are in dire financial need and prop them up. it has a constant watch over the global economy, gets involved when it sees a fire potentially breaking out and sees if it can dampen it. it has made comments in the past by the uk, in 2008 george osborne after the financial crash, he said he was playing with fibre with some of his policies. i must stress the government is looking for any kind of bailout, this isn�*t the imf going to the imf to ask for anything, they have felt the need to intervene and make some comments. they felt the need to intervene, how unusual is it for an organisation like the imf to do this, to make the source of comments? it is rare, we heard sir keir starmer on saying that earlier, it is a rare intervention, humiliating, some are saying, because firstly for the imf to even say we are monitoring the situation in the uk closely, it is quite humiliating for a g7, a major economy. it does say it understands the aims of such a large fiscal

package. i will try and interpret some of the language. it says the nature of the uk measures risks increasing inequality, top of the government to take, given everything it wants to do about levelling up, it wants to do about levelling up, it talks about closing the inequality gap. it says it doesn�*t recommend large, and targeted fiscal packages. it is important fiscal policy doesn�*t work at cross purposes with monetary policy. on targeted fiscal policies doesn�*t mean something for everyone either hasn�*t been stress tested by the office for responsibility so it hasn�*t been tested independently. working at cross purposes with monetary policy. fiscal policy is the government pushing believers to get the economy moving and monetary policies the bank trying to bring inflation down. the imf is pretty much saying they�*re working against each other, the government putting the accelerator down to put the economy on and the bank is putting the brakes on and it doesn�*t add up. in terms of response the government said the treasury acted with speed to protect households and businesses and the chancellor will set out a full budget in late november and crucially that will be tested by the

obr. we heard from sirjohn redwood, tory grandees on the airwaves this morning saying ignore the imf, got it wrong in the past and haven�*t got the full set of plans. the government will set up more policies on immigration, the regulation of the city and planning, so wait for the city and planning, so wait for the full package before giving this kind ofjudgment. but the full package before giving this kind ofjudgment.— the full package before giving this kind ofjudgment. kind of 'udgment. but lots of other voices kind ofjudgment. but lots of other voices saying _ kind ofjudgment. but lots of other voices saying there _ kind ofjudgment. but lots of other voices saying there isn't _ kind ofjudgment. but lots of other voices saying there isn't time - kind ofjudgment. but lots of other voices saying there isn't time to i voices saying there isn�*t time to wait. i�*m going to ask you to stay put because we are going to talk about the latest cost of living data in just a couple of minutes. but now we are going to go to liverpool and speak to our chief political correspondent nick eardley who joins us from the labour party conference. final day of the conference and sir keir starmer has already been on the airwaves this morning, talking about what the imf had to say. what is his take? ,., ., what the imf had to say. what is his take? , ., ., ., , take? good morning. it is interesting _ take? good morning. it is interesting being - take? good morning. it is interesting being in - take? good morning. it is. interesting being in liverpool because labour were setting out a lot of its plans for what it wants to do if it wins the next election, but the truth is most everything happening in politics is being framed by the announcements that the

chancellor made on friday and some of the turbulence we have seen in the markets ever since. the message that the labour party had been trying to get over is that this didn�*t need to happen, that this was a choice by the government, and they are trying to pin the blame firmly at ministers�* doorfor are trying to pin the blame firmly at ministers�* door for what has happened over the last few days and what could happen with interest rates going up. have a listen to sir keir starmer on bbc breakfast. i think the imf statement is very serious and a reflection on decisions taken last friday. it comes on the back of statements made by the bank of england this week. i know how worried people will be, particularly those with mortgages looking at their new mortgage rates. people who thought they had mortgage deals last week do not have them this week, prices going up. and for what? this, unlike other fluctuations in the market, is a self—inflicted wound. these were deliberate decisions of the government on friday to have tax

cuts for those earning hundreds of thousands of pounds. it has resulted in prices and mortgages going up. they have lost control of the economy. we understand when international issues, crises that fluctuations in the market but that is not this case. this is a situation where the government has self—inflicted harm on our economy and people looking at mortgages and _ prices this morning will be worried sick, i think. i would not be surprised if they are a little bit angry the government has lost control of the economy, a self—inflicted wound, and they are now picking up the bill. there is that question for the labour party about its spending plans, whether everything would add up, and it�*s worth pointing out that labour in its commitments to keep some of the cat tax cuts wouldn�*t be borrowing as much money as the

government has set out. but look, this isn�*tjust something labour are worried about. i�*ve spoken to a lot of conservative mps who are nervous as well. but it�*s not all of them. there are many who are totally behind the chancellor who say that he needs to be given the space to make this plan work, and who are still confident, as the chancellor still confident, as the chancellor still seems to be, that this plan will ultimately fruit after perhaps a bit of turbulence. but will ultimately fruit after perhaps a bit of turbulence.— a bit of turbulence. but he and indeed the _ a bit of turbulence. but he and indeed the prime _ a bit of turbulence. but he and indeed the prime minister - a bit of turbulence. but he andl indeed the prime minister must a bit of turbulence. but he and - indeed the prime minister must be aware of the turbulence this is causing and the concern this is causing and the concern this is causing too many people, whether it is somebody trying to get on the property ladder, or business owners. so why, apart from a treasury statement, have we not seen the chancellor or the prime minister or another senior government figure putting themselves up for interviews about this? it is putting themselves up for interviews about this? , ., ., , about this? it is a really good question- _ about this? it is a really good question. there _ about this? it is a really good question. there often - about this? it is a really good question. there often is - about this? it is a really good question. there often is a - about this? it is a really good question. there often is a bit| about this? it is a really good l question. there often is a bit of about this? it is a really good - question. there often is a bit of an unwritten agreement between the

parties that they don�*t go on the airwaves during each other�*s conferences but i think it is fair to say this is a pretty unique situation and given the uncertainty in the economy you would probably expect to hear a bit more from the government. there was that attempt to speak to the chancellor outside the treasury on monday where he wasn�*t up for talking to journalists. the chancellor has been trying to shore up some support with mps, hailed a call with them yesterday where he should stick with the plan, we are going to get through this and we are going to make it work. he has also been speaking to senior people in the financial word in the city about his proposals. —— he held a call. it is notjust proposals. —— he held a call. it is not just economically that proposals. —— he held a call. it is notjust economically that it is risky there is a political risk about what is going on at the moment. i have spoken to a few conservative mps who said if the public see their mortgage payments go public see their mortgage payments 9° up, public see their mortgage payments go up, if they see inflation going up, if they are worried about interest rates going up potentially further as well, that�*s not a good

recipe for saying we have got things and to say that we no longer trust you on the economy. what can we expect from the final few days of the economy?- what can we expect from the final few days of the economy? there is a seech b few days of the economy? there is a speech by the _ few days of the economy? there is a speech by the deputy _ few days of the economy? there is a speech by the deputy leader - few days of the economy? there is a speech by the deputy leader angela | speech by the deputy leader angela rayner which will close the conference later on. a couple of announcements from the party today they want to set up a breakfast club in every school in england and they want to improve the ability to get a face—to—face meeting between a gp and a patient if they were in power. really interesting that a lot of what labour have been saying over the course of the last few days is about what they would do in power. there has been a real change in the mood amongst labour delegates and labour politicians and members of the shadow cabinet. they are confident, and they think they have a good chance of winning power at the next election.—

the next election. thank you very much for that, _ the next election. thank you very much for that, our _ the next election. thank you very much for that, our chief - the next election. thank you very much for that, our chief politicall much for that, our chief political correspondent nick eardley. we can now speak to ngaire woods, wshe is dean of the blavatnik school of government at the university of oxford and a former external advisor to the imf. juan what do you make first of all of this response from the imf? we have heard that from some commentators, yet the former brexit minister lord frost, i�*m looking at his quote, the imf has consistently advocated highly conventional economic policies. it is following this approach that has produced years of slow growth and weak productivity. 50 years of slow growth and weak productivity-— years of slow growth and weak productivity. so look, one of the imf's productivity. so look, one of the imf's many _ productivity. so look, one of the imf's many roles _ productivity. so look, one of the imf's many roles is _ productivity. so look, one of the imf's many roles is to _ productivity. so look, one of the imf's many roles is to speak - productivity. so look, one of the i imf's many roles is to speak truth imf�*s many roles is to speak truth to power, to tell governments what they might not want to hear. but what it is that many economists, investors etc in the world will be thinking. so i think for good government policy you want to show that you are listening to experts

evenif that you are listening to experts even if you disagree with them, so i think disdaining the imf, firing the long—standing head of the treasury, these moves not only deprive the government of experts who really have been through this kind of thing before and know what they are talking about,, but also signals to the markets and investors that this is a government that is not going to listen to those who might know more than new ministers about notjust what these policies should be but about how to land these policies. how to land these policies, develop that thought for us. because we have been told that kwasi kwarteng and liz truss are coming from a very strong ideological position in terms of tax cuts, tax cuts, more tax cuts as a way to stimulate growth. but given the conditions of the global economy at the moment, in your opinion, was it the right time to introduce tax cuts at these levels?

so look, under some conditions tax cuts can stimulate growth but it is not under these conditions. the problem for the prime minister and the chancellor of the exchequer is that you don�*t govern the economy by shock tactics. you govern the economy by showing investors, by showing people in britain that are trying to buy houses that you have a stable framework. investors will not come and build great businesses in britain because of a tax cut which may or may not last. investors will come and invest in britain if they think that they know the government is a good partner that will provide a stable environment of policies. it is very hard to make great big investment decisions if you are not sure whether policies will radically change tomorrow or not. so by surprising the markets and by surprising the markets and by surprising investors with this rather sudden announcement, you know, the government have unfortunately done the opposite to that which they are trying which is to encourage investment. itjust

doesn�*t do to say to the investors wait until november and then we will give you more detail. that looks like the government hasn�*t done the detail yet. what the government wants to be doing is doing the detail and consulting with all the stakeholders and then coming to the world with what looks like a well developed and credible plan so that if the imf disagrees with it the government can come out, send all its ministers out to explain why it is that they disagree with the imf and why and how they have had discussions with the imf about it. let me pick up on the point about coming out and explaining the thinking. if you are able to hear my conversation with our chief political correspondent a few minutes ago, i was asking why, apart from a treasury statement, had we not seen the chancellor commended the prime minister or any other senior government figure coming out and doing interviews to try to allay

concern. so the other side of the speaking is the listening, which you alluded to at the beginning of our conversation. do you think this government so far is doing a good job of listening or not?— government so far is doing a good job of listening or not? well, look, i think job of listening or not? well, look, i think they've _ job of listening or not? well, look, i think they've rushed _ job of listening or not? well, look, i think they've rushed into - job of listening or not? well, look, i think they've rushed into a - job of listening or not? well, look, i think they've rushed into a policy| i think they�*ve rushed into a policy where what they have done inadvertently, and i don�*t feel they are expected this, is massively increased the price to the government of borrowing new money, but also massively increased the price of all the debt that the government already has. i�*m not sure that they fully took that into account when they decided to surprise the markets with this new set of policies. 50 surprise the markets with this new set of policies.— set of policies. so there is a lot to recover- _ set of policies. so there is a lot to recover. in _ set of policies. so there is a lot to recover. in the _ set of policies. so there is a lot to recover. in the meantime i set of policies. so there is a lot| to recover. in the meantime the set of policies. so there is a lot - to recover. in the meantime the most urgent thing they need to do is to think about how to prevent the pound from slipping away. because as the pound slipped down in value, you�*ve got to bear in mind that britain depends on a lot of imports. it

depends on a lot of imports. it depends on a lot of imports. it depends on a lot of imports even the things that are manufactured in britain, and every time the pound gets weaker all of those imports become much more expensive. find gets weaker all of those imports become much more expensive. and that makes manufacturing _ become much more expensive. and that makes manufacturing in _ become much more expensive. and that makes manufacturing in britain - makes manufacturing in britain much more expensive because of all these things that we rely on to bring in to take forward that manufacturing. now, what can the government do? there are only two things it can do to sustain the pound. one is to increase interest rates which is going to have... very painful consequences for people in britain. and the other is to use its foreign exchange reserves. britain actually has a much smaller arsenal of exchange reserves than other countries like switzerland orjapan that have their own currency. so the government have inadvertently put us into an extremely difficult corner, and that�*s why the imf is so worried. and that's why the imf is so worried. �* , ., , ., worried. and 'ust finally and briefl , worried. and 'ust finally and briefly. it — worried. and just finally and briefly, it does _ worried. and just finally and briefly, it does seem - worried. and just finally and briefly, it does seem at - worried. and just finally and briefly, it does seem at the | worried. and just finally and - briefly, it does seem at the moment as if the government and the bank of england are pulling in slightly different directions. your thoughts on that? �* , .,

different directions. your thoughts on that? �* ., , different directions. your thoughts onthat? ~ ., , ., , on that? also that is really problematic. _ on that? also that is really problematic. this - on that? also that is really problematic. this is - on that? also that is really problematic. this is about| on that? also that is reallyl problematic. this is about a confidence game. the animal spirits of the markets you don�*t want to unleash against you, you want to show that you are a well—organised government with a stable and very well thought through plan and that the whole government and the bank of england are all working as well. so now there is a lot of ground to recover because somehow you have to show that there is real coherence across all these policies. and asking the bank of england to step in to shore up the pound when the only real thing it can do is massively increase interest rates at a time when the government is trying to stimulate growth, that doesn�*t work. so there is going to have to be some very rapid rethinking. and then, frankly, a new chancellor of then, frankly, a new chancellor of the exchequer can�*t expect the world to trust him before his proven that he is a stable partner and i think the chancellor of the exchequer has come out too quickly to say "trust me, i�*ve got this." when actually

investors both in britain and abroad are saying, "hold on, why should we trust you yet you haven�*t shown us... us... "- em e" , us- -- _ " even if his policy is us... " even if his -oli is c-oin to " even if his policy is going to deliver growth, _ " even if his policy is going to deliver growth, and - " even if his policy is going to deliver growth, and lots - " even if his policy is going to deliver growth, and lots of i " even if his policy is going to - deliver growth, and lots of people say this is a huge gamble, even if his policy would deliver growth, you are saying that actually the first and most important precursor to all of that is building relationships, building trust with would—be investors? building trust with would-be investors?— investors? that's right. i'm certainly — investors? that's right. i'm certainly not _ investors? that's right. i'm certainly not against - investors? that's right. i'm certainly not against a - investors? that's right. i'm certainly not against a big i investors? that's right. i'm - certainly not against a big bold policy but the bigger and bolder the policy but the bigger and bolder the policy the more you need to consult and prepare people for that policy. because it is easy for a minister to make a big bold policy. it is much more difficult for households in britain to plan their mortgage or for businesses to plan multibillion—dollar investments in britain. that�*s a much bigger and more immediate decision to make. ngaire woods, thank you for your thoughts, ngaire woods, dean of the

vaclik school of government. food inflation has hit its highest rate on record according to the british retail consortium. inflation is the rate at which prices are rising — the increasing cost of food has largely been driven by the war in ukraine — which continues to push up the price of animal feed, fertiliser and vegetable oil. figures show shoppers are now paying 10.6% more than they were a year ago — that�*s up from 9.3% in august. fresh food products are a record 12.i% higher than last year — this was up from 10.5% in august. overall shop price inflation rose to 5.7% in september. and non—food inflation rose to 3.3% — largely driven by heavier hardware and other products hit by rising transport costs.

our business correspondent marc ashdown is still with us. not good news on the cost of living front, no great surprises that the trajectory is upwards, just put in context for us these rises, both shop inflation and food inflation specifically. the shop inflation and food inflation specifically-— shop inflation and food inflation secificall . , ., ., , specifically. the big aim of these olicies specifically. the big aim of these policies from _ specifically. the big aim of these policies from the _ specifically. the big aim of these policies from the government - specifically. the big aim of these policies from the government is| specifically. the big aim of these i policies from the government is to bring down inflation. this is certainly unwelcome news. it is a snapshot, a monthly snapshot of how prices are going up and prices do drive inflation. in the monthly survey it attracted changes in prices from 500 everyday items, so in non—food we have seen diy, gardening and hardware, big increase is mainly due to transport costs due to the war in ukraine. food is the big driver, prices rose 1% in the month alone, 11% higher than a year ago. these are lower estimates than the official figures from the office for national statistics but it is a sign of the cost pressures on retailers, they are not letting up, and we could see prices keep going up and we could see prices keep going up and up. this comes off the back

of mortgages yesterday, we saw lots of mortgages yesterday, we saw lots of lenders pulling rates, uncertain where the bank is going and how quickly with interest rate rises. they have been pulling their products left, right and centre. don�*t forget energy bills will be going up on saturday at the start of october. yes the government stepped in to shore things up, they put the cap in now so the average bill payer will not pay any more than £2500 but still people will see a hefty rise from what they pay at the moment. of course, a £66 or so a month payment back to everyone. from octoberfor six months. it is small, though. pretty relentless pressure on household finances. what are the next moves? as you had, sentiment is a big thing, especially with the markets, so could the government or the bank of england at least say something may be to try and steady nerves, at least show they are working on some kind of concerted effort to push back at the criticism from the imf? i suspect we will not see any real action. that�*s what will really calm the markets. the bank said it will not raise rates again until it meets in november and the government said we will get a

full budget at the end of november. right now the markets are down again, the pound fairly steady but already at record lows. the ftse is down 1.7% today. the ftse 250, probably more important with more domestic companies in it, down even further. markets don�*t like surprises. as you heard they don�*t like uncertainty and i�*m afraid at the moment that�*s the one thing that is pretty certain. the moment that's the one thing that is pretty certain-— is pretty certain. marc ashdown, a business correspondent, - is pretty certain. marc ashdown, a business correspondent, thank- is pretty certain. marc ashdown, a. business correspondent, thank you. good prices going up, energy bills going up, interest rates on mortgages going up. just a reminder that if you are looking to get on the property ladder, perhaps you are already on the property ladder but looking for a new mortgage or trying to move, well, get in touch with me today, we want to hear how the government�*s announcements of friday are having an impact on you and your decision—making. you can do that on twitter @annitabbc and use the hashtag #bbcyourquestions. i will try and read out some of your comments. ukrainian forces have successfully retaken large parts of their territory in the east,

but their progress in the southern regions of kherson and zaporizhzhia has been far more limited. both sides in the south come under regular fire as they heavily rely on artillery to push forward. abdujalil abdurasulov reports from ukrainian front—line positions in the kherson region. distant thuds. this peaceful view is deceptive. the front line is less than two kilometres away. distant thuds. "this is our artillery firing," a deputy commander of a regiment explains. his unit is at the forefront of ukrainian troops near kherson, and although the advancement of their forces in the south is slow, the situation here has changed significantly. translation: a month ago, - the russians were hammering here. now it�*s much easier because long—range rocket launchers are working. russian ammunition depots get destroyed, their supply routes get hit, and now they feel

the shortage of ammunition. and at this stage, we are trying to push them back. and they�*re slowly doing that. ukrainian troops took back this position just a week ago, and now are digging in and fortifying it. engine roars. without fighterjets, it is hard for the ukrainians to advance. but air support is still rare... ..so big guns continue to play a key role in this war. translation: right now, - it's artillery that gets more work. we are regularly destroying enemy�*s firing positions. sometimes they target our infantry from armoured vehicles. we immediately respond and eliminate that threat. this is a soviet self—propelled artillery. its life cycle ended long ago, but the ukrainian army have little choice but to use every weapon they have.

the gunners receive an instruction to destroy a russian mortar installation. translation: here, in the firing | position, it's all about geometry - angles and distances. let�*s go back! three rounds, and we�*re out of here. the soldiers just finished firing, and now we need to get out from that area as quickly as possible, because the russian forces may be able to identify the exact location where the firing came from, and may target that place, as well. they have avoided return fire, and got back to the base safely. theirjob is done — but the mission is not over. abdujalil abdurasulov, bbc news, kherson region. the kherson region was one of four russian—held parts of ukraine where voting took place in so—called

referendums onjoining russia. russia has threatened to veto any un security council resolution that condemns its discredited referendums. our correspondent hugo bachega is in kyiv and joins us now. all eyes on president zelensky and president putin for the next moves. president putin for the next moves. president zelensky already saying that he will defend people in these regions. that he will defend people in these reuions. , ~ that he will defend people in these reuions. , ,, ., regions. yes. i think now the attention _ regions. yes. i think now the attention is _ regions. yes. i think now the attention is on _ regions. yes. i think now the attention is on moscow - regions. yes. i think now the attention is on moscow and i regions. yes. i think now the - attention is on moscow and what president putin is going to do after the so—called referendums were held in four occupied regions of ukraine. let me give you the numbers because in donetsk the pro—russian authorities said more than 99% of the voters were in favour ofjoining russia. in luhansk 98%. and in kherson in the south, a region where there has been a strong resistance movement against the occupation the

pro—russian authority said 80% of voters were in favour of annexation. so obviously nobody, apart from those who organised the so—called referendum, or those who supported it, will be recognising the legitimacy of this process, the legitimacy of this process, the legitimacy of this process, the legitimacy of those numbers, or any decision that is announced as a result of this process. the ukrainians have said that this is a farce, that this is an excuse by moscow to go ahead with the annexation of ukrainian territory. president putin is expected to address the russian parliament on friday, and i think the expectation is that he is going to make an announcement reacting to the results of this so—called referendum. but here in kyiv the authorities are saying that their plans remain unchanged. i spoke this morning with one of president zelensky�*s top advisers and he told me that the ukrainians will go ahead with the counteroffensive, they will fight

harder to reclaim territory that is now under russian occupation. hugo, thank ou now under russian occupation. hugo, thank you for— now under russian occupation. hugo, thank you for bringing _ now under russian occupation. hugo, thank you for bringing us _ now under russian occupation. hugo, thank you for bringing us up - now under russian occupation. hugo, thank you for bringing us up to - thank you for bringing us up to date. hugo bachega in kyiv. meanwhile, denmark, poland and sweden say they believe leaks in two major russian gas pipelines to europe are the result of sabotage. nord stream one and two, which carry supplies under the baltic sea, are not currently operational, but do still contain gas. seismologists reported underwater blasts before the leaks emerged and ukraine has accused russia of causing the leaks. in the last few minutes we are hearing a couple of comments. denmark�*s defence minister saying it might take a week or perhaps two before the areas around the damage our calm enough to be investigated. ursula von der leyen, the head of the european commission, has warned of the strongest possible consequences if it emerges that sabotage is indeed behind these gas

leaks found in the two pipelines under the baltic. several countries saying these ruptures in the pipelines were caused deliberately, possibly by explosives. those are the latest lines coming into us with the latest lines coming into us with the defence minister in denmark saying it might take one or two weeks before the areas around the damaged parts of the pipelines are calm enough to be investigated. we will keep you up to date. that has big implications for energy security. now it�*s time for a look at the weather with carol. good morning. good morning. today, once again. — good morning. good morning. today, once again. a — good morning. good morning. today, once again. a day _ good morning. good morning. today, once again, a day of _ good morning. good morning. today, once again, a day of sunshine - good morning. good morning. today, once again, a day of sunshine and - once again, a day of sunshine and showers. we have a northerly component to the wind today, which is a bit lighter but it means the showers are coming in across the north of scotland and our coastlines. this morning�*s rain continuing to push south west into the channel islands. we will also have a new area coming into eastern

scotland and bringing in some rain. the wind will strengthen. temperatures 13—16. this is the system i was referring to, pushing south and west with this cloud and rain through the course of the night. some showers left but more cloud and we saw last night, not as cold tomorrow morning as it was today. you can see how the rain turns showery across south wales in south—west england and tomorrow it pushes towards the channel islands before moving away and we will see a day of sunshine and showers. fewer showers at lighter winds. it will feel a wee bit warmer. hello this is bbc news. good morning. the headlines: one of the world�*s most important financial institutions — the international monetary fund — criticises the government�*s tax cuts — and calls on ministers to "re—evaluate" their plans.

these statements are common, with regard to emerging market countries with problematic policies, but not often about g7 countries. this, unlike other fluctuations in the market, is a self—inflicted wound. these were the deliberate decisions of the government on friday. price rises in the shops have hit another record high. figures show annual shop inflation accelerated to 5.7% in september. the president of ukraine has pledged to protect citizens in areas of his country which could be annexed by moscow — after the kremlin held unofficial referendums. they will always say we are too small, too slow, too weak, too full of fear... and coming up — actor michael sheen performs a new rendition of his world cup rallying cry to the wales football team.

we will hear a little bit more about michael sheen in the sport. sport and for a full round—up, from the bbc sport centre, here�*sjohn watson. that woke me up this morning when he started his rallying cry. if you need a bit of mid week motivation, he is the man to give it to you! another rousing rendition from him and we will bring you a longer snippet of that a little bit later from me. let�*s kick off with some football. scotland have won promotion to the top tier of the nations league after a goalless draw with ukraine in poland last night. with it comes an easier route to qualify for euro 2024 in germany, with steve clarke�*s side now guaranteed at least a play off spot following the disappointment of missing out on a world cup spot in qatar. olly foster reports. how they�*d love to be going to qatar, but krakow was the final fling of 2022 for about 3,000 scotland fans. and, after england were relegated from the top tier in the nations league, this was the scots�* chance to replace them among europe�*s elite. che adams came close to an opener early on.

ukraine are the side that snuffed out their world cup ambitions. their captain, andriy yarmolenko, was one of the scorers that night injune. how did he miss that? injuries and a virus in the camp had severely stretched scotland�*s squad, and craig gordon had to be at full stretch to keep them in the game. ukraine, who were playing home matches in poland because of the war with russia, pushed hard for the win they needed. how that would have lifted hearts back home. the celebration at full—time was scotland�*s, though. in theory, life will now be easier for then when it comes to qualification for the next european championship. but, as this match demonstrated, they rarely do things easily. ollie foster, bbc news. scotla nd scotland on br. —— scotland on the up. it�*s been a forgettable campaign for northern ireland, beaten 3—1 by greece. they avoided relegation but only did so on goal difference.

this the goal of the game from greece. what a strike that was. they are managed by the former chelsea and spurs midfielder gus poyet, who had the nack for the spectacular when he was a player. the brazilian football confederation have condemned the racist abuse of tottenham striker richarlison after the forward had a banana and other objects thrown at him in their friendly win over tunisia. the incident took place after the spurs forward celebrated scoring brazil�*s second goal in paris. in a statement, the brazilian football confederation said it "reinforced its position to combat racism". brazil posed with an anti—racism banner prior to kick off... england take on pakistan in the fifth of their seven t20s. the series has moved to lahore with the teams tied at 2—2. three more games before they head to australia for the world cup. it�*s a gruelling schedule and one that the chair of the england

and wales cricket board needs to be looked at. we have to come up with a schedule that they want to lay because it is clear from the pca, that they want to lay because it is clearfrom the pca, the players that they want to lay because it is clear from the pca, the players and directors of critic have all emphatically said the schedule doesn�*t work. it is a lot of different stakeholders in the game who all have differing views but, ultimately, we are trying to get everyone to see what is in the best interests of the game of cricket rather than just their view. this interests of the game of cricket rather thanjust their view. this is a game of cricket that we have to look at the most holistic sense. $5 look at the most holistic sense. as promised, that clip from actor, michael sheen. and remember a couple of weeks ago, did you see it? the welsh actor michael sheen stirring the emotions with that brilliant rousing speech, spurring wales on at the world cup to come. he�*s been at it again. this time in front of the players themselves. hejoined them at he joined them at their training camp. across 64 years... across half the span of the world... it�*s there on your chest. it�*s there at your back. it�*s there at your side.

because they�*re always saying we are too small, too slow, too weak, too full of fear. but yma o hyd, you sons of speed! with that red wall around us we are still here! come on! applause if it doesn�*t serve as motivation, you would probably be completely terrified if you didn�*t perform! you wouldn�*t want to come back in and face an angry michael sheen if you hadn�*t pull your weight, would you in the first half or in a match at the world cup? they need to challenge michael sheen on the pitch, don�*t they? you could see why i said that woke me up earlier this morning! thank you very much. john watson. the time is 9:38am.

cuba is completely without power after hurricane ian pummelled the western end of the island. wind speeds of up to 195 kilometres an hour hit the island killing at least two people. after leaving cuba the hurricane has been gathering force in the south—eastern gulf of mexico. it is now bearing down on the us state of florida. the tampa bay area could receive its first direct hit from a hurricane since 1921. our correspondent, azadeh moshiri, is there. they�*d been warned that this could be a history—making storm — one that could cause life—threatening surges. and with that warning came mandatory evacuation orders for millions across florida�*s west coast. when you look at storm surge of this nature, that is a very life—threatening hazard, when you�*re talking about ten feet, 12 feet of storm surge, which you could see in certain parts of this when it makes landfall. the governor has deployed thousands of national guard troops, and emergency services have been

distributing things like sandbags to protect from flooding, and filled trailers full of food and water. but people are also taking matters into their own hands, boarding up shops and homes, and stocking up on household essentials as well as petrol. for an area like tampa bay — that hasn�*t been hit directly by a storm in more than a century — all these warnings have been taken seriously. when you�*re dealing with the potential for severe flooding, power outages and shortages in things like fuel, it doesn�*t matter where the storm lands or how severe it is — you have to make preparations, especially in a place like tampa bay, where you have buildings that are in low—lying areas and extremely vulnerable. one local in st petersburg lives on his boat, but he�*s now forced to leave it behind as he evacuate and seeks shelter.s it�*s a lot of boats, they�*re packed in pretty tight,

and it�*s kind of concerning as to whose boat�*s going to land where, and just trying to look for somewhere that�*s higher and drier than this place will be. while predictions are still changing hour by hour on exactly where storm ian will continue to travel, officials are still repeating the same message — escaping the eye of the storm doesn�*t mean you�*re safe. azadeh moshiri, bbc news. the cost of living crisis is sending people with cancer into a "downward spiral" and the worst has yet to come — that�*s according to the charity macmillan cancer support. it�*s already helped more than 3a,000 people so far this year with a financial grant — that�*s up 50% on the the same period last year. graham satchell reports. every timejulian makes a cup of coffee, he worries about how much electricity he�*s using, and how much it will cost. using your kettle costs money, which i didn�*t really pay attention to. and to me — as many other people — they�*re panicking, and we shouldn�*t

be panicking with cancer. if you live with cancer, you want to... my advice is to try and live as normal as you can, but with the cost of living going up, that�*s going to be non—existent. julian was a successful professional football coach, but his life was turned upside down when he was diagnosed with a brain tumour. he wasjust 29. obviously, i can�*t work, so money is tight — more tight than i�*d ever imagined, if i�*m honest. and what sort of tough choices are you having to make? it�*s either petrol for hospital appointments or paying for our utility bills, which have doubled. you mean you don�*t want to end up in debt? no, no, because if you end up in debt... i�*ve been in debt before, when i was younger, and it�*s a whole place to be in. you lose sleep, you have bad dreams. you just... no—one should really have to face that — regardless whether you have cancer

or not, no—one should have to face the fact of being in debt or worrying about what they�*re going to eat next. it's. .. it�*s as simple as that. julian has been helped by the cancer charity macmillan to access universal credit, but says he�*s really struggling. i need heating because i�*m on chemo — ongoing chemo for the foreseeable future — where my body temperature can rise and drop at any given moment. i�*m thinking that i won�*t be able to use the heating, because once that heating and the energy bill goes up, the more i use the heating, the more it�*s going to cost and there�*s going to be a point where we�*re just going to have to not pay it — and i don�*t want to do that. our focus should be cancer and recovery, or recovering from it — not worrying about how we�*re going to survive the next few months. julian�*s experience is farfrom unique. the charity macmillan says it�*s seen a 54% increase in the number of cancer patients needing financial

support so far this year, compared to the same period last year. debbie potts is 55. she was diagnosed with stage 3 ovarian cancer last year. it's sort of a blur, cos the next thing i know, dan and my youngest daughter were there, and we were just sort of saying, "0k, what...what happens next?" what happened next was a real roller coaster — chemotherapy, three major surgeries, an all—clear, and then the cancer returned. debbie had to stop working. her partner, dan, went part—time to look after her. dan and i are really, really proud people, and we don�*t want to take benefits or... you know, we want to... we want to work and pay our way. so it was... it was tough. we don�*t turn our heating on because it�*s so expensive. so we use these blankets — really nice, actually, you know, soft, and...

so, wejust, like, have blankets. we don�*t want to get into a financial situation where, you know, we start losing our home. you know, we want to keep our heads above. so, we�*ll do whatever. and blankets work fine! debbie says she didn�*t want to be a burden on society, so hasn�*t claimed benefits. she has received some money from macmillan, which she describes as a godsend. ifeel that, you know, people being treated for cancer, it�*s not a joke. they really are being treated for cancer. therefore, the government or nhs or whoever the powers that be should have an automatic system in place that says, you know, regardless of whether you�*re employed, self—employed or have never worked, you probably need this injection of funding just to help you see you through the worst of your illness. and, yeah, i think that would be much better. and itjust avoids people feeling like we do —

embarrassed and shameful — but also really grateful. i mean, you know, £700 from macmillan changed our winter. as the cost—of—living crisis really starts to bite, it is having a serious impact on people living with cancer. graham satchell, bbc news. homelessness in england�*s countryside is being described as a �*hidden crisis�* according to a new report, which says the rising cost of living and increasing interest rates will lead to more rough sleepers. the true extent of the problem is still unknown — as many rural homeless are not recorded by official surveys, as our rural affairs correspondent claire marshall reports. hi, steve. how are you doing? hiya, come on in. thank you. this is the first place steve can call home. for the last 20 years, he has slept rough. i�*ve been stamped on,

i�*d been set on fire. someone set you on fire? yeah, when i was asleep in my sleeping bag. he has experienced homelessness in cities and more rural areas, like here in herefordshire, where it is just as tough. a lot of people don�*t accept there is a big homeless problem in places like hereford, or any rural areas, because they ignore it. it�*s because they don�*t want to acknowledge that the same things in big cities can happen in rural areas. they can pretend it�*s not happening. last year�*s official rough sleeper count found the number of people on the streets was up by almost 40% from 2010, when the count began. but this isn�*tjust an urban problem. in rural england, there is a homelessness crisis. away from the busy streets, it�*s harder to see. this is one place where rough sleepers are known to take shelter.

but look at where we are, we are in the middle of the countryside. there are few people around to notice and this is why one reason why it is such a hidden problem. not far from the railway bridge, there�*s another spot on the edge of some playing fields. so this is the sort of places that people would camp out. there has been somebody who has been camping out here. laura is part of a task force set up to build an accurate picture of rural homelessness. a lot of people that i�*ve talked to in herefordshire and that we have talked to as a team in other locations, they are staying with family and friends, they are sofa surfing, or moving between places wherever they can get their head down. there are also a lot of people staying in places like barns or caravans — places where they might not be so visible. dr carin tunaker is leading the investigation. what local authorities and organisations across the country are warning us is that the cost of living crisis, the fuel crisis, brexit, is all creating a situation where we are likely to see a huge amount of increase at a time when we are placing less

funding into homelessness. over the border into gloucestershire, the average house can cost half a million pounds, and most local salaries are low. these are the houses that are so badly needed. so, this development is six affordable homes in the village built in partnership with the local community. but they are rare and few are being built. government funding is dwindling and they are not appealing to housing developers or more wealthy locals. you can imagine people not wanting more homes in these kinds of areas. do you think that has an impact? it has a massive impact. there are those that simply don�*t want them. there is a misconception they might affect house prices. there is a misconception about who is going to live in those homes and there is a stigma associated with affordable homes, as well.

the government says it has reduced rough sleeping by almost a half since its peak in 2017 and has committed £2 billion to tackle the problem. this is now in the past for steve. this place means safety, security. i'm not worried about the winter, i'm not worried about it raining, and i don't have to sleep with one eye open. but with fears that rural households are being hit hardest by the cost of living crisis, many more could lose a secure roof over their heads. claire marshall, bbc news, herefordshire. let�*s get more now on our top story this hour, as the international monetary fund — which is responsible for stabilising the global economy — has criticised the government�*s plans for tax cuts, warning the measures are likely to fuel the cost—of—living crisis. the conservative mpjohn redwood spoke on the today programme programme a little earlier. well, the imf are coming from the

eras of the past, which they shared with the world�*s leading central banks, they didn�*t see the big inflation they triggered, they didn�*t have sensible advice in good time to see off the inflation. and, now, late in the day, when the inflation is very visible for all to see, they suggested taking measures to tackle it when the world has moved on. they should now be warning the world about the coming recession, which is in danger of digging in in many leading countries because of policies being followed. and will be the enemy of the future. what should the british government then say to the imf? i don�*t think then say to the imf? i don�*t think the british government should say anything to the imf, we don�*t want a site or a dialogue between the british government and the imf. the other thing, british government and the imf. the otherthing, imf british government and the imf. the other thing, imf and other commentators would be —— well advised to do isjudge commentators would be —— well advised to do is judge the whole policy because, so far, we have seen some tax proposals that we have not yet seen a whole series of supply measures, which will clearly be needed at the same time as

attractive tax packages to make sure there is more investment, more growth in the economy. i�*m joined now by sir ed davey, the leader of the liberal democrats, who is calling for parliament to be recalled from its autumn recess. to recalled from its autumn recess. discuss this. thar for to discuss this. thank you very much forjoining us on the bbc news channel, sir ed. john redford saying he doesn�*t make the government should be responding to the imf, saying we don�*t want a spat or a dialogue. would a dialogue be good in your opinion?— in your opinion? millions of people are incredibly _ in your opinion? millions of people are incredibly worried _ in your opinion? millions of people are incredibly worried at _ in your opinion? millions of people are incredibly worried at the - are incredibly worried at the moment. struggling families and pensioners have already seen inflation go up on food and energy and fuel. now they are worried that their mortgages are going to go through the roof. and create severe hardship. that�*s all because of what the conservative government has just done. i�*m afraid john redford is incredibly complacent. what we need

to see is some leadership from this government. where is the prime minister and chancellor? are they hiding? we need them out here to reassure people who are deeply worried and reassuring the markets. if they have a plan, let�*s hear it. looks like a total disaster for our country. looks like a total disaster for our count . , ., ., , ., country. the first dialogue should be via the house _ country. the first dialogue should be via the house of _ country. the first dialogue should be via the house of commons - country. the first dialogue should be via the house of commons to l country. the first dialogue should i be via the house of commons to the public? be via the house of commons to the ublic? ~ ,,., , be via the house of commons to the ublic? ~ , ., �*, be via the house of commons to the -�*ublic?,, , , public? absolutely, that's why liberal democrats _ public? absolutely, that's why liberal democrats have - public? absolutely, that's why liberal democrats have been i public? absolutely, that's why - liberal democrats have been clear. recall parliament, give the prime minister and chancellor the opportunity to tell us this great plan or if they haven�*t got one, the liberal democrats don�*t think they have got one, not had a plan for a long time, they need to reverse the damage they have just done. that is what the liberal democrats would do, we would not cut the 45p rate, with not —— we would not take the cap off bankers bonuses and we would not stop corporation tax. we would do a windfall tax on the unexpected huge profits on the oil and gas

companies. that would mean we could help people far more who are struggling at the moment and we wouldn�*t have to borrow so recklessly which is forcing up interest rates and will hit people with higher mortgages. there is a real alternative plan that liberal democrats have been arguing for for some time. the government either don�*t get it or don�*t care. they are putting forward their ideological agenda, not a plan. putting forward their ideological agenda, nota plan. it putting forward their ideological agenda, not a plan. it is millions of struggling families who will suffer if they don�*t change. but suffer if they don't change. but the sa suffer if they don't change. but they say that — suffer if they don't change. but they say that the plans that have been put forward in the past haven�*t worked, they need to do something big and bold to really shake up the economy, to boost economic growth. you are clearly critical of what they are doing. do you believe there is a possibility that their plan could work?— is a possibility that their plan could work? ., ., �* ., ~ ., ., could work? no, it won't work and no one in the world _ could work? no, it won't work and no one in the world seems _ could work? no, it won't work and no one in the world seems to _ could work? no, it won't work and no one in the world seems to think - could work? no, it won't work and no one in the world seems to think it - one in the world seems to think it will work. people in our country don�*t, the imf doesn�*t,

international markets don�*t. this is a failed proposal from the conservatives. it is true, one thing i will agree with them, their policies over the last ten years haven�*t worked. it is only when liberal democrats have had ideas like investing in the renewable energy when we have seen investment in our economy, creating jobs across our country, those are the sorts of plans that we need. there is an alternative plan, but it is not the conservative one. liberal democrats have a whole set of ideas to make our country more competitive and to help people and businesses who are struggling. we�*ve been putting them forward. ijust wish struggling. we�*ve been putting them forward. i just wish the conservatives would listen. what do ou want conservatives would listen. what do you want to — conservatives would listen. what do you want to see _ conservatives would listen. what do you want to see from _ conservatives would listen. what do you want to see from the _ conservatives would listen. what do you want to see from the bank- conservatives would listen. what do you want to see from the bank of. you want to see from the bank of england this point? the you want to see from the bank of england this point?— england this point? the bank of encland england this point? the bank of england has _ england this point? the bank of england has been _ england this point? the bank of england has been given - england this point? the bank of england has been given the - england this point? the bank of - england has been given the toughest job by the government. because they have to deal with the failures of the conservatives. because the conservatives are behaving so recklessly, so irresponsibly, with unfunded tax cuts for the wealthy,

which will be paid for by all taxpayers in due course, by the way. they are leaving the job of tackling inflation just to the bank of england. the government isn�*t playing its part, it is making it worse for the bank of england. when the bank of england looks like it will put up interest rates, people should be clear that it is the fault of the conservative government. [30 of the conservative government. do ou of the conservative government. do you think that investors are going to look at these tax cuts and think there are opportunities here, though? because that is what the government is suggesting, that investors will now look at the uk and say, "this is somewhere we could do more business".— do more business". investors are doinu do more business". investors are doin: the do more business". investors are doing the reverse. _ do more business". investors are doing the reverse. that's - do more business". investors are doing the reverse. that's why - do more business". investors are. doing the reverse. that's why they doing the reverse. that�*s why they are selling the pound, they don�*t want to buy the pound, they are not believing that this conservative government is doing the right thing for the future. the real worry is rather than increasing growth and investment, the reverse will happen.

the government thinks the situation will stabilise and this is an immediate kneejerk nervous reaction and that the situation will stabilise, do you think there is a possibility it will? i stabilise, do you think there is a possibility it will?— stabilise, do you think there is a possibility it will? i hope it does. i am a possibility it will? i hope it does. i am a patriot. — possibility it will? i hope it does. i am a patriot, i— possibility it will? i hope it does. i am a patriot, i believe - possibility it will? i hope it does. i am a patriot, i believe in - possibility it will? i hope it does. i am a patriot, i believe in our. i am a patriot, i believe in our country and i want our country to do well. my worry is we have a government who doesn�*t know what it is doing. they lost control of the economy. let�*s hope it stabilises. evenif economy. let�*s hope it stabilises. even if it does, doesn�*t mean they have the right policies. because we need to see more investment. we also need to see more investment. we also need to see real help for people. the real worry is this is the facts, struggling families, millions of them, are facing higher energy costs, going up by £500. the government haven�*t capped it, it is going up by £500 next week. there government haven't capped it, it is going up by £500 next week. there is also around £400 _ going up by £500 next week. there is also around £400 energy _ going up by £500 next week. there is also around £400 energy bill- also around £400 energy bill discount as well, isn�*t there? hold discount as well, isn't there? hold on, discount as well, isn't there? hold on. energy — discount as well, isn't there? hold on. energy bills. _ discount as well, isn't there? hold on, energy bills, the _ discount as well, isn't there? hold on, energy bills, the cap _ discount as well, isn't there? help. on, energy bills, the cap went up by

£700 in april. the conservatives are allowing it to go up by another £500 in october. people�*s energy and heating bills this winter will be twice what they were last year. in the meantime, they are giving tax cuts for the wealthiest 1% in our country, it is a total disgrace. it is notjust going to harm our economy, it�*s going to make our society less fair. i think this conservative government doesn�*t get it and doesn�*t care. i think that is a disgrace. the british people deserve strong leadership, they deserve strong leadership, they deserve leadership that cares about them and theirfamilies deserve leadership that cares about them and their families and their communities. underthe communities. under the conservatives, we communities. underthe conservatives, we are not getting that. sir conservatives, we are not getting that. ,, , ., ~ conservatives, we are not getting that. ,, , ., ,, ., that. sir ed davey, thank you for our that. sir ed davey, thank you for your time. _ that. sir ed davey, thank you for your time, leader _ that. sir ed davey, thank you for your time, leader of _ that. sir ed davey, thank you for your time, leader of the - that. sir ed davey, thank you for your time, leader of the liberall your time, leader of the liberal democrats. now it�*s time for a look at the weather. good morning. once again come a day of sunshine and showers. a northerly component to the wind, northern scotland and the west and east are

prone to those showers. we also have a new weather system coming in across east scotland and north—east england, that will bring in some rain and stronger winds. the rain will continue to clear away from the south—west of england and the channel islands. in between a load of dry weather and sunshine, hides between 13 and 16 degrees. overnight at night, this band of cloud and rain goes south and behind more showers and more cloud than last night. not as cold a start to the day tomorrow as it was this morning. we start with this showery band of rain in south wales and southern england. showers coming in. fair bit of sunshine. temperatures up on today, peaking on 17.

and ukraine has accused russia of causing the leaks. hello. this is bbc news — these are the latest headlines in the uk and around the world. one of the world�*s most important financial institutions — the international monetary fund — criticises the government�*s tax cuts — and calls on ministers to �*re—evaluate�* their plans. these statements are common with regard to emerging market countries with problematic policies, but not often about g7 countries. this, unlike other fluctuations in the market, is a self—inflicted wound. these were the deliberate decisions of the government on friday. following on from the mini budget, some lenders have halted mortgage offers for new customers, others have said they will increase rates on fixed mortgages.

are you a first—time buyer, have recently taken on a mortgage or are looking to move — how is this impacting you?