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tv   BBC News at Ten  BBC News  October 3, 2022 10:00pm-10:30pm BST

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tonight at ten — "we get it", says the chancellor, as he performs one of the most spectacular policy u—turns of modern times. under intense scrutiny, kwasi kwarteng abandons his policy of cutting income tax for the highest earners. the chancellor of the. after consistently _ the chancellor of the. after consistently defending - the chancellor of the. after consistently defending the l the chancellor of the. after - consistently defending the move, the chancellor of the— consistently defending the move, he was told by colleagues the policy was told by colleagues the policy was wrong at a time of rising costs for millions. i know the plan put forward only ten days ago has caused a little turbulence. i get it. laughter. we are listening and have listened. just 2a hours earlier, the prime minister had been
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insisting the policy would stay, despite the widespread criticism. and tonight, another shift by the government, forced by events to make it, they are bringing forward their plan for dealing with debt to later this month, to try to reassure the markets. we will have the latest from birmingham on what the chancellor admitted had been a tough day. also tonight... raising the flag. ukrainian forces retake a village in one of the region is annexed by russia last week. a warning that the uk is facing a serious risk of gas shortages this winter, which could affect electricity supplies, too. cheering. and a warm welcome in fife, as the king and queen consort attend their firstjoint engagement since the end of formal mourning.
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and leicester strike early as they look to move off the bottom of the table with victory against nottingham forest at the king power. good evening. at the conservative conference in birmingham, party members have of modern times. abrupt policy u—turns the chancellor, kwasi kwarteng, who for nine days had been defending his decision to cut income tax for the highest earners, announced today that the policy would be abandoned. the prime minister liz truss had also been defending the policy over the weekend, but ministers were confronted with open rebellion among conservative mps, and the very real prospect of defeat in the house of commons. the proposal had been criticised as particularly unfair at a time of rising living costs for millions of households. it wasn't the only change today.
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the chancellor's fiscal statement, along with forecasts from the independent office for budget responsibility, are now likely to be delivered this month, not the end of november. live to birmingham and our political editor chris mason. an extraordinary day here, because conferences are meant to be a showcase. they are meant to be carefully choreographed. today was not one of those carefully choreographed days. this evening, the announcement you just mentioned, that they are going to rush forward a plan for dealing with the debt, to try to smother the markets in reassurance, given how spooked they have been by the events of the last ten days. and all of that after a colossal u—turn before most of us had even had breakfast this morning. first thing this morning, things are moving, and fast.
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the planned tax cut for the highest paid is being junked. the government has blinked. it was an ambitious plan, and we talked to lots and lots of people up and down the country. i saw the reaction. we considered what to do with it, and i felt and the prime minister felt that this was just a distraction on what is a very strong package. translation — the idea tanked, so have conservative poll ratings, and there was little chance mps would vote for it anyway, so instead, it is being ditched, as the chancellor's next interview beckoned. do you owe an apology? actually having the humility to say "look, we got this wrong and we're not going to proceed with the abolition of the rate." do you owe people an apology? we are not going to proceed with the abolition of the rate. we have listened to people, and yes, there is humility and contrition in that. chancellor. contrast what he called humility today with the pride of the original announcement, just a week last friday. but i am not going to
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cut the additional rate of tax today, mr speaker. i am going to abolish it altogether. from april 23rd, we will have a single higher rate of income tax of a0%. and contrast the chancellor this morning with the prime minister yesterday. are you absolutely committed to abolishing the 45p tax rate | for the wealthiest people in the country? - yes. little wonder after the u—turn, some ministers discovered the art of quick walking when in the company of cameras. you are going to bump into walls, you are going to bump into a column. although others would talk. sometimes you have to face political reality and listen and that is what they have done. the overwhelming majority of what was announced, so the cut in national insurance, the cut in corporation tax is going ahead, and that is fundamentally important to get to economic growth. this was the flotsam and jetsam of the announcement. thank you very much. and as for what labour make of it... well, the mini budget showed what their instincts were. their instincts were to cut taxes
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for the wealthiest in society, paid for by borrowing, which in the end, current and future taxpayers will have to pay for. the prime minister and chancellor have binned one bit of their plans that proved impossible to sell. the thing is, there is quite a lot else in there that may not prove popular either, the prospect of spending cuts, real—terms benefits cuts and spiralling interest rates, which critics will blame on them. and then there are those within the conservative party who are sceptical of the government, who will now ask, on what else might they budge? the chancellor of the exchequer. enter at less than a gallop kwasi kwarteng, for his hastily rewritten speech, greeted by applause that was polite rather than rapturous. thank you, conference. what a day. it has been tough, but we need to focus on thejob in hand. the chancellor wearing the demeanour of a man winded by events, leaning on gallows humour.
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if i can be frank, i know the plan put forward only ten days ago has caused a little turbulence. i get it. laughter. we are listening and have listened. and now, i want to focus on delivering the major parts of our growth package. there was, though, a defiance from mr kwarteng, a determination not to be derailed from his main mission. we couldn't simply do nothing. we can't sit idly by. what britain needs more than ever is economic growth, and a government wholly committed to economic growth. with grit, with drive and with determination, we can meet the challenges of this new era. thank you. applause. thumbs up from a colleague, smiles of relief. a slow walk, after a long day, which will leave an indelible mark on this government. chris mason, bbc
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news, in birmingham. the highly controversial mini budget of ten days ago produced "a little turbulence", in the chancellor's words — that was kwasi kwarteng's reference to a collapsing pound and higher interest rates. since the events of friday 23rd september, the pound has regained most of its losses, but the costs of government borrowing and mortgage interest rates are still higher. and there remains the big question of how the chancellor will fund £15 billion worth of tax cuts, as our economics editor faisal islam reports. it was meant to be a growth plan, not a budget. it was meant to underpin the confidence of investors in all projects from those involving towering cranes to ordinary house moves to make that investment. but instead, it amplified an interest rate shock from around the world and targeted it at the uk. if i look back at this, natwest last week were quoting a five—year fixed rate at 3.77,
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whereas the changes that were made today, theirfive—year fixed—rate cheapest is 5.14. and that's with a 40% deposit. and that was with a 40% deposit, yeah. ten minutes' walk from the chancellor's speech, a birmingham mortgage broker is still seeing the shock waves from last week hit ordinary consumers. it's been a massive shock in this past week, the pace of change very, very difficult to keep up with. lenders are withdrawing products with little or no notice, or even retrospectively telling us a deal has gone. the extent of the u—turn in financial terms is modest. the £45 billion of unfunded tax cuts becomes £15 billion. the now—abandoned cut in the 45p rate was to cost the exchequer £2 billion, but by far a bigger cut was the reversal to the national insurance rise. that's worth £18 billion and that's already being legislated for. and then the largest cut was the abandonment of the rise in corporation tax on company profits, worth nearly £19 billion a year.
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there could be some pressure for policy reverses here, as well as to extend the existing windfall tax on rising energy prices. this u—turn is small in value terms, but hugely symbolic. the markets reacted well initially, with sterling going up a bit and the government's borrowing costs going down a bit. on the one hand, this reflects the government coming into line with the market consensus, but there is a need for a plan with a solid set of numbers. on the other, the markets now don't know if there are other things in the plan that eventually will require a u—turn that's not being admitted to right now. and for the chancellor, in the two fundamental aspects of doing his job, which is getting market credibility and being able to pass a budget, he is still playing catch—up, and he thinks growth is the answer. in the meantime, a mini budget premium on borrowing costs remains, and pressures on tax and spending too are being noticed in the nearby
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northfields constituency, which switched to the conservatives in 2019. i'd be really worried if i'd got a mortgage. we are worried for our children because they will struggle. they are struggling with their mortgages. universal credit, . it'sjust not enough. people who earn more should pay more tax, simple as. that's my mathematics, anyway. if there aren't further tax u—turns, pressure will be for cuts to public spending. if the government doesn't increase spending in line with rising inflation, that could mean effectively an £18 billion cut in real terms to many already struggling services. perhaps tax credits and benefits won't be increased in line with inflation, but instead, the rises in wages. that is worth £5.5 billion a year, but difficult during a cost of living crisis. or long—term investment could be reduced, but that underpins the promise to level up. the new chancellor has decided
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to stop digging the hole created at the mini budget, but how to fill the one created in the public finances remains unclear. faisal islam, bbc news, in birmingham. more now from our political editor chris mason at the conservative party conference in birmingham. what is your view this evening of the standing of the government? well, what they are trying to do is wrestle back a sense of confidence and a sense that they are in control. that is why we are hearing tonight they are going to bring forward this announcement on how they are going to deal with government debt which is one of the contributory factors to the spooking of the markets in the last couple of days. that is why we had that screeching u—turn in the early hours of this morning and then at breakfast time when kwasi kwarteng was stood here, acknowledging why he was stood here, acknowledging why he was swallowing a policy he was very proud of, just a couple of days before. politically, though, a day like this is dangerous. it is
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excruciating for the politicians involved but it is dangerous. why? because it creates a precedent, a president that a government that was saying a couple of weeks ago that it was willing to be unpopular, that would embrace the difficult, well, only embraces the difficult until it becomes too difficult. and so critics within the conservative party and beyond will now look at that colossal list of challenges that colossal list of challenges that the government faces in the coming months, whether it be the benefits bill or broader public sector spending, and wonder, will they have the stomach for that when they have the stomach for that when the bills are huge and the decisions are difficult and the political pressure is absolutely massive? now, those in government hope one excruciating day is worth it, versus several days, weeks or months of being asked the same question about the same rate of tax. the thing is, they will have shifted the conversation on from one issue, the top rate of tax, and opened up a conversation that was coming anyway,
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on all of those other things. the new prime minister knows things are going to be bumpy. ichris new prime minister knows things are going to be bumpy-— going to be bumpy. chris mason in birmingham. _ going to be bumpy. chris mason in birmingham, many _ going to be bumpy. chris mason in birmingham, many thanks. - and you can find more updates, news and analysis on bbc news online — that's bbc.co.uk/news, and by using the bbc news app. let's turn to the conflict in ukraine, where president zelensky says his troops have made more advances against russian forces. it comes just days after ukraine retook the strategic town of lyman, a move seen as a significant setback for the russian campaign in the east. and now the ukrainian drive in the south is also making progress. president zelensky said two villages near the city of kherson have been recaptured. despite that, russia's lower house of parliament has unanimously ratified a bill today annexing these
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four regions of ukraine. so what is life like for the millions of people now living in territory occupied by russia? our correspondent paul adams reports. ukrainian forces on the move again, this time taking back villages in the south. progress has been slow here since the summer, but this all seemed to happen quickly, again taking russia by surprise. for ukraine's president, volodymyr zelensky, it was more good news to report in his nightly address. he thanked the units involved. and that's not all. far to the east, scene of september's lightning counteroffensive, ukrainian troops are still pushing forward,
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they are collecting abandoned russian equipment as they go. mann russian equipment as they go. now this machine _ russian equipment as they go. now this machine will— russian equipment as they go. firm" this machine will work for our armed forces. russia now has major headaches on two fronts at the same time, just when it's trying to conscript, train and equip badly—needed extra troops. vladimir putin may have celebrated annexing chunks of ukraine, but his problems just keep multiplying. is that you? but for civilians trapped inside russian—controlled territory, life is getting harder. we reach a man in kherson who doesn't want to be identified. he says the big fear is conscription. well, the conscription is just a matter of time. we don't know which time. the people around kherson are being conscripted by the dozens, and it makes us all afraid, of course. russia's annexation is also making it much harder for people to leave. here at the reception centre in zaporizhzhia, officials are used to seeing 1,000 people a day fleeing occupied areas.
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today, it's practically deserted. 19—year—old maksym finally made it after four days of travelling and waiting. he's here with his brother, mother and the family cat. translation: we stayed there - because we didn't know where to go, but after the referendum, it got very scary because i could get conscripted into the russian army, and i could never fight for russia. maksym's family is moving on, hoping to find safety and some kind of future far from russian occupation. 30 people have made it out so far today — hope and uncertainty mixing in equal measure. paul adams, bbc news, zaporizhzhia. the uk is facing "a significant risk" of gas shortages this winter, according to the industry regulator, which could also have an effect on electricity supplies.
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ofgem says that because of russia's invasion of ukraine, there is a possibility the uk could suffer a "gas supply emergency". this would lead to supplies being cut to power stations, which use gas to generate the uk's electricity. our business correspondent caroline davies is here. what else do we know about the warning? what else do we know about the warnin: ? . , what else do we know about the warnin: ? ., , , , ., what else do we know about the warninu? ., , , ,., ., , what else do we know about the warninu? ., , , ., , ., warning? clearly this is a worry for not 'ust warning? clearly this is a worry for not just grouns — warning? clearly this is a worry for notjust groups like _ warning? clearly this is a worry for notjust groups like ofgem - warning? clearly this is a worry for notjust groups like ofgem and - warning? clearly this is a worry for. notjust groups like ofgem and power stations, which is why they are talking about contingency plans, but we know this is something being looked at by the national grid, who have their winter outlook coming out later this week, and they are mapping different sorts of scenarios in that, which they normally wouldn't do. we also know the government has been putting in plans since the summerfor government has been putting in plans since the summer for extreme situations, such as blackouts or potential shortages. the next big question is, how likely is it to happen? the government and ofgem has said the uk is in a good position, potentially stronger than other countries like germany, which is
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more reliant on russian gas. but there are certain things that will be out of the control of the government. for example, if we have a very cold winter here, or if there is a cold winter on the european mainland and if potential bad weather takes out some of the energy imports coming into the uk and russia's actions. a lot of uncertainty is swirling around at the moment which is why these scenarios are being prepared for. our business corresponding to caroline davies, thank you. a man has appeared in court charged with the murder of olivia pratt—korbel. the nine—year—old was killed in august when a gunman chased another person into her house in liverpool. thomas cashman, who is sa, has also been charged with two counts of attempted murder. our north of england correspondent danny savage has the latest. this is the man accused of murdering olivia pratt—korbel. 34—year—old thomas cashman is the alleged gunman who police believe shot the schoolgirl in her own home. earlier this morning, on the waterfront in liverpool city
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centre, he and another man were brought to court. they both appeared before a magistrate. as well as the murder of olivia, thomas cashman, from west derby in liverpool, is accused of the attempted murder of olivia's mother, cheryl korbel, and joseph nee — the man being chased at the time of the shooting. the second man, paul russell, is charged with assisting an offender. the ao—year—old is alleged to have driven thomas cashman to an address and disposed of his clothing. he was remanded in custody. both spoke only to confirm their name and address. nine—year—old olivia was killed after a commotion outside her house late at night, on the 22nd august. her mother opened the front door as a gunman fired at another man he was chasing. olivia was hit in the chest and died. this afternoon thomas cashman appeared here again, this time in front of a crown courtjudge. after a short hearing,
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which lasted just 13 minutes, he was remanded in custody. olivia's mother was among those in the public gallery, listening to proceedings. she and olivia's father stared intently at thomas cashman. he will go on trial in march next year. danny savage, bbc news, liverpool. in indonesia, the chief of police in the city where a stampede at a football stadium left 125 people dead has been sacked. a further nine officers who were deployed at the match have been suspended. tear gas was fired at fans, causing a crush at the exits. there were 32 children among those who died. from java, our correspondent laura bicker reports. fans once flocked here to show their love of football. now this stadium has become a focal point of grief. there's also mounting anger towards a police force many feel played a role in this disaster.
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this woman made it out of the stadium. she was shocked to see bodies scattered in the streets. "why did they fire tear gas into the stands, because there was a lot of women and children, and the gates were locked," she said. "they couldn't get out." small groups of fans ran onto the pitch after the final whistle on saturday. police fired tear gas. they said it was used to avoid anarchy. those in the stands rushed to leave but in the chaos the result was a deadly crush. the key focus of the investigation will be on the police use of tear gas, which fifa has banned. analysts say it's banned for a reason — because tear gas is used to disperse crowds, but fans tell us that some of the gates were locked, so where were they going to disperse the crowds to?
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19—year—old mohammed wasn't supposed to be at the match on saturday. he got an extra ticket with his girlfriend. this neighbourhood now mourn both young lives. and mohammed's father has lost his only child. translation: i was shown my son's dead body. - i stood back. i didn't want to see him. it's too much. my hope forfootball in indonesia, enough. this is the last. no more football in indonesia. football violence has long been a problem in this country. matches are suspended while the investigation continues. it could be that this huge loss of life may finally bring some changes. laura bicker, bbc news, malang.
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the water regulator for england and wales has told 11 suppliers to return £150 million to customers after the firms failed to meet their targets. ofwat said the companies hadn't met standards related to pollution, sewers and water supply. the money will be taken off household bills from april. the supreme leader of iran has blamed the united states and israel of orchestrating protests in tehran and other cities, following the death of a young woman who'd been detained by the morality police. in his first comments, ayatollah ali khamenei has claimed he'd been been heartbroken by mahsa amini's death. there were more protests today with social media playing a key role as our analysis editor ros atkins reports. this is last night in tehran at one of iran's most prestigious universities. students in an anti—government protest were trapped in a car park by security officials. others outside came under fire...
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..from what appeared to be paint balls. as you'd imagine, this is the lead story here on bbc persian. and for my colleagues in this newsroom, to establish what's happening in iran, social media is crucial. all day we've heard about more protests, such as here at semnan university, east of tehran. these students are chanting, "freedom, freedom." and by looking at videos such as this, the bbc has confirmed at least 65 protests in recent weeks, many led by women. this is from shiraz today. these girls are chanting, "death to the dictator," which is aimed at iran's supreme leader. and as they know, by removing their headscarves, they are breaking iranian law. and all the videos we use in our reporting are verified byjournalists such as baran abbasi.
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so what we do, we try to find some landmarks in a video that we can also find on google maps, and also cross—reference them with videos of the same location we've had previously. and the authorities don't want these videos to be seen. the internet�*s been heavily restricted, but the protests keep coming. they began with the death of mahsa amini after she was arrested by iran's morality police. they've become a direct challenge to those in power. and now for the first time, iran's supreme leader, ayatollah ali khamenei, has responded. translation: the death of the young woman broke our hearts, _ but what is not normal is that some people have made the streets dangerous, burned the koran, removed hijabs from women and set fire to mosques and cars. it may have broken his heart, but there is no sign the supreme leader is listening,
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to these schoolgirls singing a protest song but too scared to show their faces, or to the many others who demand the freedom to speak and dress as they choose. ros atkins, bbc news. king charles and the queen consort have attended their first joint public engagement since the end of the period of royal mourning following the death of her majesty the queen. the couple visited dunfermline in fife, where the king marked its new status as scotland's eighth city. our royal correspondent daniela relph was there. bagpipes play dunfermline welcomed a new monarch, and they looked pleased to see him. it was malcolm iii who first created this royal seat of power, almost 1000 years ago. today it was charles iii who met the crowds and granted dunfermline city status — awarded to mark his mother's platinum jubilee.
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it is my hope that this new distinction will not merely burnish the legacy of our past, but will also brighten the prospect of our future. that would, i know, gladden my dear mother's heart, as it certainly gladdens mine. marking the 950th anniversary of dunfermline abbey is relatively safe territory, but in these early days of the king's reign there has already been a noticeable shift. in line with government guidance, he will not be attending the cop climate conference in egypt next month. the freedoms of being prince of wales replaced by the constraints of being king. in edinburgh, the focus moved to the palace of holyroodhouse, and a reception to celebrate the british south asian community. as he begins his reign. he has already pledged
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to use his time as monarch to protect the diversity of the uk. in holyrood's great gallery there was a clamour to get up close to the king and queen consort. some were even able to sneak in the odd selfie. amongst the guests, representatives of the nhs, the armed forces and the arts, including the music producer naughty boy, who started his career with a grant from the prince's trust, now here to meet the king as an ambassador for his community. i'm a muslim pakistani, british—born, you know, and that gives me so much hope for the future. and british—asian trust as well, with everything they're doing in pakistan, india, bangladesh, you know, issues that are sometimes marginalised in the news but our king cares about them. balancing those issues he cares about with his responsibilities as head of state, the challenge the king now faces as his schedule
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of official engagements begins. daniela relph, bbc news, edinburgh. time for a look at the weather. here's matt taylor. according to data from the met office today, september across england and wales, the first time since february that saw eight months —— saw a month with above average rainfall. we will see rain this week but probably not in the areas we need it most. this chart shows how much rainfall will fall through the rest of the week. notice still little to the south and east. the bulk of which, the brighter colours are where the heaviest rain will be and we could see up to 200 millimetres with the risk of flooding in parts of the highlands. the jet stream is governing things and throwing in areas of cloud from the atlantic, meeting the hills in the atlantic, meeting the hills in the west, as it will tonight, with rain becoming heavy and persistent
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in the west of scotland and northern ireland into tomorrow morning.

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