this is bbc news — these are the latest headlines in the uk and around the world. a positive response from the markets this morning, they have reopened after emergency support from the bank of england whether it was drawn on friday. we bank of england whether it was drawn on frida . ~ ~ ., _,, ., on friday. we think of the cost of government _ on friday. we think of the cost of government borrowing _ on friday. we think of the cost of government borrowing come - on friday. we think of the cost of. government borrowing come down, on friday. we think of the cost of- government borrowing come down, we have seen the pound start to recover, so i think the markets impact so far has been positive. liz truss will address conservative mps later today to try to shore up her leadership. three tory backbenchers have already called vertigo. in other news, a damning report into london metropolitan police find hundreds of officers have been getting away with breaking the law

and misconduct. the mayor of kyiv says that russian strikes on the city this morning have killed one person and wounded three others. good morning and welcome to bbc news. the uk's new chancellorjeremy hunt is to deliver an emergency statement on the british economyjust after 11 o'clock this morning, bringing forward measures a fortnight earlier than expected. it's expected there'll be a delay in the plan to cut the basic rate of income tax from 20p to 19p, that would be yet another u—turn from the mini budget that caused such turmoil on financial markets. with me now as our chief political correspondent. he is waiting in the

wings to talk to me. let me round—up, because an hour or so we are expecting to hear from the chancellor, he is going to be making that statement and we are expecting pretty much everything in the mini budgets to be pulled back, except for the national insurance increase, the national insurance cut because that has already been legislated for, obviously big announcement, they help with the energy bills, that will be going ahead. other than that will be going ahead. other than that we are expecting everything that we are expecting everything that was announced in the mini budgetjust a matter of that was announced in the mini budget just a matter of weeks that was announced in the mini budgetjust a matter of weeks ago is expected to go by the wayside. let's bring in nick. nick, there is no precedent for this, is there? ida. precedent for this, is there? no, it's extraordinary _ precedent for this, is there? iirr, it's extraordinary stop we will have chancellor in an hour, he is going to speak at 11am. chancellor in an hour, he is going to speak at ”am. what he is trying to speak at ”am. what he is trying to do is to make things, one is to get some stability back in the uk puzzling economic position in the markets, as you were saying that seems to be going ok so far this

morning. downing street will be pleased about that. let's see what happens over the slightly more medium term. secondly he wants to try to shore up the situation in there, because he there are a lot of conservative mps in there that are deeply unhappy, that are considering how to get rid of liz truss and who are saying, some publicly, some even more privately, that they think it is a question of when and not if she is a question of when and not if she is brought down. but this is a big moment today because what it is is the chancellor, the new chancellor, putting the final nail in the coffin of liz truss's economic plan. she has been reminiscent ministerfor just over one month, she had this big, bold plan to cut taxes, to cut regulation, to fund it all through borrowing and to tell us all you cannot tax your way to growth. by the end of the day we will be talking about the vast majority of her mini budget being junked and the government opening itself up to a

lot more spending restraint that she had been from a single. make lot more spending restraint that she had been from a single.— had been from a single. make which is the opposite _ had been from a single. make which is the opposite of _ had been from a single. make which is the opposite of what _ had been from a single. make which is the opposite of what she - had been from a single. make which is the opposite of what she was - is the opposite of what she was saying she wanted. the messaging is that the chancellor and the prime minister are in luck step, but to many see that as having any real credibility? it many see that as having any real credibility?— many see that as having any real credibili ? , ., ., ., . , credibility? it is hard to match up liz truss being _ credibility? it is hard to match up liz truss being in _ credibility? it is hard to match up liz truss being in lock _ credibility? it is hard to match up liz truss being in lock step - credibility? it is hard to match up liz truss being in lock step with l liz truss being in lock step with quite a quite week and now being in lock step withjeremy hunt. the calculation number ten has made is that it needs to do this. yes, it's humiliating, yet it amounts to a complete ripping up of liz truss's plans, but to get some economic credibility back, to try to shore up her position with her own party, you need to do it. the question a lot of people are asking and there is, is it going to work? and, it's far from clear to me that it will. for a couple of reasons. firstly there are no shortage of tory mps who will call you and say it was her who caused this turmoil in the first place, the government is now

spending billions of pounds on it, preparing to cut billions of pounds in spending is doing that to fix the problem that the government itself created. secondly, ithink problem that the government itself created. secondly, i think they're asked tory mps who are now at a point where there is now no prospect in liz truss leading her to a general election, they think credibility has gone, have a little project is over and it will be best to act sooner rather than later. but there are two things counting liz truss favour when it comes how long she has. one is that the government has bought itself a bit of time. jeremy hunt's appointment has led some tory mps who don't like the prime minister to say let's see what he does, let's give them a bit of space to try to get stability back. the second thing that works in favour is, nobody knows what comes next, there is no agreement on who should take over, there are a of tory mps terrified at the prospect of another leadership battle. those are to make things may need to make mean it's not imminent that the

minister back is brought down. but the feeling in the conservative party is... it as feeble as i've ever seen it. what arejust party is... it as feeble as i've ever seen it. what are just hearing, disc and the chancellor is going to be be speaking at 11am disc and the chancellor is going to be be speaking at ”am with his announcements on camera. me be be speaking at 11am with his announcements on camera. we are exectin: announcements on camera. we are expecting that — announcements on camera. we are expecting that pulling _ announcements on camera. we are expecting that pulling back- announcements on camera. we are expecting that pulling back of- announcements on camera. we are expecting that pulling back of the l expecting that pulling back of the mini budget, except for the two elements mentioned, national insurance and the energy bills, where is liz truss going to be? is she going to be in front of the cameras today, was to be in the commons?— commons? not heard anything definitive or _ commons? not heard anything definitive or so _ commons? not heard anything definitive or so i _ commons? not heard anything definitive or so i would - commons? not heard anything definitive or so i would be - commons? not heard anything i definitive or so i would be amazed if she is not in the commons. there is a debate — if she is not in the commons. there is a debate later— if she is not in the commons. there is a debate later on _ if she is not in the commons. there is a debate later on that _ if she is not in the commons. there is a debate later on that public - is a debate later on that public statement?— is a debate later on that public statement? , , ., , ., _, , is a debate later on that public statement? , , ., , ., , ., statement? yes, she has a couple of thins in statement? yes, she has a couple of things in her— statement? yes, she has a couple of things in her diary _ statement? yes, she has a couple of things in her diary today _ statement? yes, she has a couple of things in her diary today which - statement? yes, she has a couple of things in her diary today which we i things in her diary today which we know of, one is that she is meeting the cabinet. not an official cabinet meeting but what is being sold as a reception for cabinet ministers to take soundings on the medium—term fiscal plan. i think that is to say i'm listening to cabinet ministers and what they think. the second

thing is that she is addressing the one nation group of conservative mps, that is the centrist people who a lot of whom have been deeply uncomfortable with what liz truss has been saying, she is due to address them at 6pm. will that shore up address them at 6pm. will that shore up support? possibly, if she can convince them that there is now a plan to get the show back on the road. last week, when liz truss it did try to shore up her position by speaking to her on mps, it went disastrously badly. i'm not so sure you can predict anything is going to go according to plan.— joining me now is douglas mcneill, he has been a special adviser rishi sunak, theresa may and george osborne when in office and continued as a special advisor in thejoint economic unit until september 2022. welcome, thank you very much for joining us. what is going through your mind as you watch today unfold?

i think this is a smart move on the part of— i think this is a smart move on the part of the — i think this is a smart move on the part of the chancellor and the prime minister. _ part of the chancellor and the prime minister. i_ part of the chancellor and the prime minister, i think there is a suspicion _ minister, i think there is a suspicion in some quarters that the chancellor— suspicion in some quarters that the chancellor went a little further over_ chancellor went a little further over the — chancellor went a little further over the weekend in worrying trust's plan will_ over the weekend in worrying trust's plan will stop he certainly seem to id plan will stop he certainly seem to go further— plan will stop he certainly seem to go further than she did in her press conference — go further than she did in her press conference on friday afternoon although — conference on friday afternoon although that was a relatively brief appearance so hard to be sure we got appearance so hard to be sure we got a full_ appearance so hard to be sure we got a full sense _ appearance so hard to be sure we got a full sense what was in a mine. so a full sense what was in a mine. so a wise _ a full sense what was in a mine. so a wise move — a full sense what was in a mine. so a wise move but also a sign of weakness. _ a wise move but also a sign of weakness, signed how concerned the government is in concerned to the bond _ government is in concerned to the bond market to bring forward this announcement. so bond market to bring forward this announcement.— bond market to bring forward this announcement. so who is dictating the moves here, _ announcement. so who is dictating the moves here, is _ announcement. so who is dictating the moves here, is it _ announcement. so who is dictating the moves here, is it effectively i the moves here, is it effectively markets? . ~ the moves here, is it effectively markets? , ,, markets? yes, i think government needs to make _ markets? yes, i think government needs to make sure _ markets? yes, i think government needs to make sure it _ markets? yes, i think government needs to make sure it regains - needs to make sure it regains credibility in the eyes of the market. _ credibility in the eyes of the market, the chancellor in needs to play himself in to earn his stripes much _ play himself in to earn his stripes much and — play himself in to earn his stripes much and the trust of the markets. that is— much and the trust of the markets. that is a _ much and the trust of the markets. that is a key— much and the trust of the markets. that is a key part of the chancellor'sjob that is a key part of the chancellor's job description and kwasi _ chancellor's job description and kwasi kwarteng's failure to do so,

failure _ kwasi kwarteng's failure to do so, failure to— kwasi kwarteng's failure to do so, failure to do the markets on side and failing — failure to do the markets on side and failing to win them back once he had got _ and failing to win them back once he had got on _ and failing to win them back once he had got on the wrong side of them. that is— had got on the wrong side of them. that is a _ had got on the wrong side of them. that is a creative use of his demise _ that is a creative use of his demise. so it's extremely important that the _ demise. so it's extremely important that the chancellor does not fall into the — that the chancellor does not fall into the same trap and get up on the film into the same trap and get up on the right footing and it's also important he tries to do what he can to persuade — important he tries to do what he can to persuade their concerns, reduce interest— to persuade their concerns, reduce interest rates that the market is charging — interest rates that the market is charging on government borrowing and if you can _ charging on government borrowing and if you can do _ charging on government borrowing and if you can do that that might buy him a _ if you can do that that might buy him a little bit of extra room for manoeuvre, might ease the financial back or— manoeuvre, might ease the financial back or he _ manoeuvre, might ease the financial back or he is — manoeuvre, might ease the financial back or he is facing. does manoeuvre, might ease the financial back or he is facing.— back or he is facing. does that by the prime — back or he is facing. does that by the prime minister _ back or he is facing. does that by the prime minister any _ back or he is facing. does that by the prime minister any extra - back or he is facing. does that by l the prime minister any extra room for manoeuvre because they are in a difficult position, the chancellor brand—new, she is pretty new, but he is newer, and he is trying to wind the trust, once a trust is lost for someone, how easy is it to win that back? i someone, how easy is it to win that back? ., �* ~' �* , someone, how easy is it to win that back? ~ �*, back? i don't think it's impossible. the arrival — back? i don't think it's impossible. the arrival of _ back? i don't think it's impossible. the arrival of jeremy _ back? i don't think it's impossible.

the arrival of jeremy hunt - back? i don't think it's impossible. the arrival of jeremy hunt has - back? i don't think it's impossible. the arrival of jeremy hunt has got| the arrival ofjeremy hunt has got off on— the arrival ofjeremy hunt has got off on a _ the arrival ofjeremy hunt has got off on a reasonable footing so far. ithink— off on a reasonable footing so far. i think the — off on a reasonable footing so far. i think the pound has strengthened a little bit. _ i think the pound has strengthened a little bit, the early trading this morning. _ little bit, the early trading this morning, the price going up. that is good _ morning, the price going up. that is good news — morning, the price going up. that is good news. jeremy hunt had struck the right— good news. jeremy hunt had struck the right tone in what he said in the right tone in what he said in the media — the right tone in what he said in the media over the weekend. so liz truss— the media over the weekend. so liz truss can _ the media over the weekend. so liz truss can rely on that. but of course. — truss can rely on that. but of course, doubts about a position remain. — course, doubts about a position remain, during this period of discontent within the conservative party _ discontent within the conservative party regarding her leadership. the market— party regarding her leadership. the market have to take that into account — market have to take that into account as well.— market have to take that into account as well. so, you are a former special _ account as well. so, you are a former special adviser - account as well. so, you are a former special adviser to - account as well. so, you are a| former special adviser to rishi sunak, what he predicted during the leadership campaign has pretty much come true. so does that put him in a very strong position and now for potentially stepping into the reach if she goes? i potentially stepping into the reach if she goes?— potentially stepping into the reach if she goes? i think much too soon to sa . i if she goes? i think much too soon to sav- ithink— if she goes? i think much too soon to say. i think rishi _ if she goes? i think much too soon to say. i think rishi sunak- if she goes? i think much too soon to say. i think rishi sunak is - to say. i think rishi sunak is focused _ to say. i think rishi sunak is focused on staying out of any westminster machinations that may or may not— westminster machinations that may or may not occurring. he is clear he wants _ may not occurring. he is clear he wants to — may not occurring. he is clear he wants to give liz truss all the room

she needs — wants to give liz truss all the room she needs to do the job to the best of her_ she needs to do the job to the best of her abilities and i think he is refocused _ of her abilities and i think he is refocused at the moment on the job that is— refocused at the moment on the job that is the _ refocused at the moment on the job that is the most important to him in politics— that is the most important to him in politics which is serving the people of richmond in north yorkshire. i don't _ of richmond in north yorkshire. i don't think— of richmond in north yorkshire. i don't think he has any thought other than that _ don't think he has any thought other than that. ., ., , ., , , than that. there are obviously three constituencies _ than that. there are obviously three constituencies here _ than that. there are obviously three constituencies here the _ than that. there are obviously three constituencies here the number- than that. there are obviously three l constituencies here the number ten, we were talking about markets being absolutely vital in the immediate term, there is also the parliamentary party which the government has a working majority of 71, so it is extraordinary that because of the lack of support within the party that is what has also led to the reversals we have been seeing. then there is the constituency out there and in the opinion polls there are predictions of potentially something again alike 1997, the landslide that saw tony blair into power. so how do those three things get weighed up when deciding who should be at the helm going into another l election? fine

going into another l election? one ofthe going into another l election? one of the key challenges for liz truss is to take — of the key challenges for liz truss is to take the parliamentary party and the _ is to take the parliamentary party and the party in the country with her when — and the party in the country with her when it— and the party in the country with her when it comes to abandoning her own agenda. that may seem like a raining _ own agenda. that may seem like a raining say. — own agenda. that may seem like a raining say, but there are plenty people _ raining say, but there are plenty people around who believed in her lon- people around who believed in her long before liz truss came along on the scene _ long before liz truss came along on the scene as— long before liz truss came along on the scene as a prime minister who liked _ the scene as a prime minister who liked that — the scene as a prime minister who liked that agenda, like that slashing of taxes and throwing to the winds— slashing of taxes and throwing to the winds the ideas of economic orthodoxy. ironically, she may be the person— orthodoxy. ironically, she may be the person who is best placed to persuade — the person who is best placed to persuade those people that that agenda — persuade those people that that agenda is over, it has been shown that not— agenda is over, it has been shown that not to — agenda is over, it has been shown that not to work and we have to go in a different direction. so some people _ in a different direction. so some people are — in a different direction. so some people are vast in recent days, what is the _ people are vast in recent days, what is the point — people are vast in recent days, what is the point of liz truss? i think that— is the point of liz truss? i think that is— is the point of liz truss? i think that is the — is the point of liz truss? i think that is the point of liz truss she has to— that is the point of liz truss she has to now— that is the point of liz truss she has to now say to the people who hacked _ has to now say to the people who hacked her— has to now say to the people who backed her agenda that it's time to move _ backed her agenda that it's time to move on— backed her agenda that it's time to move on and try to a new approach of. �* . . move on and try to a new approach of. �* ., , ., move on and try to a new approach of. ~ . , ., , ., , of. and that is an unbelievable thin to of. and that is an unbelievable thing to say. — of. and that is an unbelievable thing to say, that's _ of. and that is an unbelievable thing to say, that's basically i of. and that is an unbelievable i thing to say, that's basicallyjust last week, when she was criticising

what she was describing as the anti—growth coalition and saying that the only way forward for the country as her agenda, for it now to be the case that she has the person they can make judgment for the opposite of her economic plan. it’s opposite of her economic plan. it's an absolutely stunning turnaround. i cannot _ an absolutely stunning turnaround. i cannot think of anything quite like it in modern british politics. i think— it in modern british politics. i think you _ it in modern british politics. i think you would really have to go back to _ think you would really have to go back to 1992 when we had the erm, the battle _ back to 1992 when we had the erm, the battle fine a similar example of the battle fine a similar example of the markets simply standing in this way and _ the markets simply standing in this way and forcing it u—turn on the main _ way and forcing it u—turn on the main thrust— way and forcing it u—turn on the main thrust of its economic policy. that turned — main thrust of its economic policy. that turned out to created somewhat of a recovery to the british colony in 1992 _ of a recovery to the british colony in 1992. although it didn't help the conservative party very much in the ensuing _ conservative party very much in the ensuing general election. that is the danger for liz truss. what i what _ the danger for liz truss. what i what would you put the odds on in terms _ what would you put the odds on in terms of— what would you put the odds on in terms of how leading the party into the next election? i think 50—50. i

think— the next election? i think 50—50. i think it's _ the next election? i think 50—50. i think it's possible for her to hang on. think it's possible for her to hang on but— think it's possible for her to hang on but i— think it's possible for her to hang on. but i think she needs to make sure _ on. but i think she needs to make sure she _ on. but i think she needs to make sure she doesn't prove to be... she needs— sure she doesn't prove to be... she needs to _ sure she doesn't prove to be... she needs to give — sure she doesn't prove to be... she needs to give jeremy hunt all of the room _ needs to give jeremy hunt all of the room he _ needs to give jeremy hunt all of the room he needs and all of the support he needs— room he needs and all of the support he needs to — room he needs and all of the support he needs to get the government economic— he needs to get the government economic and jan on back on track. joining me now is our business correspondent, darshani david. what is the latest on the market reaction? figs what is the latest on the market reaction? �* . . what is the latest on the market reaction? �* , . ., reaction? as we are hearing there, ou have reaction? as we are hearing there, you have seen _ reaction? as we are hearing there, you have seen a — reaction? as we are hearing there, you have seen a little _ reaction? as we are hearing there, you have seen a little bit _ reaction? as we are hearing there, you have seen a little bit of - reaction? as we are hearing there, you have seen a little bit of relief l you have seen a little bit of relief infecting the markets as they start trading in this new week. i was saying on friday when we saw the former chancellor depart that it wasn't so much the man but the policy is that the markets were questioning. if you look at the bond markets you can see that there is a little bit of a recovery there in which sense i mean that cost of borrowing for government debt as indicated by those markets has slipped. the pound is up by almost 1% in early trading this week. all of which suggests that perhaps we are seeing the door opening back up

when it comes to the idea that markets have more belief, that they think the chancellor but i plans are more credible. but what is it going to have to take to maintain and build on that credibility? because we know already that we have seen some £20 billion worth of tax changes reversed in the what are we going to see in the latest instalment on this fiscal circus today? people talk about u—turns but are we going to see backflips as well? are we going to see another 5— amount of tax changes scrapped to restore credibility. we will see more from the chancellor today, what they mean for growth, for bringing down debt and crucially what they mean for spending. we may not get all of the answer is by no means today but it's a hopeful start for a market that has frankly suffered from anxiety now for many weeks. what will potentially materially changes that the government won't be looking to borrow so much money to pay for those tax cuts, but there is

still another big issue and that is inflation, and what happens with that? �* , . inflation, and what happens with that? ~ , . ,.., that? indeed. by reducing the scale of tax changes. _ that? indeed. by reducing the scale of tax changes, you _ that? indeed. by reducing the scale of tax changes, you do _ that? indeed. by reducing the scale of tax changes, you do bring - that? indeed. by reducing the scale of tax changes, you do bring down | of tax changes, you do bring down somewhat to the inflationary pressure that is in the economy which are not releasing as much money into the economy and that means at the bank of england perhaps does need to worry so much about raising those base rates. indeed, if you look at to make things that are worrying the markets, fundamentally, it comes down to risk and it comes to inflation. the risk, i mean by that really how creditworthy is the uk, because when we talk about markets and bond markets what we are talking about is how much faith investors have in the uk economy and that matters when you're talking about the bond market because those are the investors who are lending to the government and what they do in that particular market impacts mortgage rates for everybody else. and we know in recent weeks we tried to take out a fixed—rate mortgage and we were looking at some of the highest rate since the financial

crisis. so tackling all of those in bringing down the markets expectations when it comes to inflation and interest rates, that is the key. it is going to be a pretty intense couple of weeks for the chancellor, ultimately like his predecessor he is likely to be judged on the outcome by the market and the price could be pretty steep both ways. and the price could be pretty steep both wa s. . ~ and the price could be pretty steep both wa s. ., ,, �*, and the price could be pretty steep bothwas. ., both ways. thank you. let's stay with this. with over 25 years of experience in the financial markets industry and here to share her take on the market reactions, i'm joined by the head of fx strategy at rabobank, jane foley. welcome. what is the answer to that question that was opposed just now about how creditworthy investors see the uk as being? the about how creditworthy investors see the uk as being?— about how creditworthy investors see the uk as being? the answers will be within the statement _ the uk as being? the answers will be within the statement is _ the uk as being? the answers will be within the statement is not _ the uk as being? the answers will be within the statement is notjust - within the statement is notjust when _ within the statement is notjust when we — within the statement is notjust when we were hearing this morning from the _ when we were hearing this morning from the chancellor but the more detailed — from the chancellor but the more detailed assessment that we will get at the _ detailed assessment that we will get at the end of the month. many people have argued that those details, particularly from the office for budget— particularly from the office for budget a response when it is, those forecasts. _ budget a response when it is, those forecasts, they should have been a

si-n forecasts, they should have been a sign of— forecasts, they should have been a sign of the — forecasts, they should have been a sign of the budget we saw in such 23rd _ sign of the budget we saw in such 23rd so — sign of the budget we saw in such 23rd. so the markets do need to see the breakdown here, investors quite clearly— the breakdown here, investors quite clearly do _ the breakdown here, investors quite clearly do not have the appetite to 'ust clearly do not have the appetite to just keep — clearly do not have the appetite to just keep absorbing large amounts of unfunded _ just keep absorbing large amounts of unfunded tax cuts. they want to see policies. _ unfunded tax cuts. they want to see policies, they want to see leadership and policies that will put in _ leadership and policies that will put in reforms that we can have greater— put in reforms that we can have greater productivity in the uk, that we know— greater productivity in the uk, that we know what we are going in terms of our— we know what we are going in terms of our trade — we know what we are going in terms of our trade policies, that is the sort _ of our trade policies, that is the sort of— of our trade policies, that is the sort of leadership and direction that the — sort of leadership and direction that the markets want to see. so like was — that the markets want to see. so like was said, a hopeful start to today, — like was said, a hopeful start to today. we — like was said, a hopeful start to today, we have seen the cost of borrowing — today, we have seen the cost of borrowing coming down, we have seen the market— borrowing coming down, we have seen the market reassess how much the bank— the market reassess how much the bank of— the market reassess how much the bank of england may have to hike interest— bank of england may have to hike interest rates going forward to get inflation _ interest rates going forward to get inflation back on track. but there is still— inflation back on track. but there is still a — inflation back on track. but there is still a huge amount that we do not know. — is still a huge amount that we do not know. a _ is still a huge amount that we do not know, a lot of uncertainty still out there — not know, a lot of uncertainty still out there. ., . ~ not know, a lot of uncertainty still out there. ., ., ,, ., out there. you talk about the leadership — out there. you talk about the leadership the _ out there. you talk about the leadership the markets - out there. you talk about the leadership the markets want| out there. you talk about the l leadership the markets want to out there. you talk about the - leadership the markets want to see, are they effectively dictating to the political order right now? foretell. the political order right now? well, we are in a — the political order right now? well, we are in a country _ the political order right now? well, we are in a country where - the political order right now? well, we are in a country where we - the political order right now? well, we are in a country where we have a

very large _ we are in a country where we have a very large current account deficit. what _ very large current account deficit. what that — very large current account deficit. what that means is that we rely on foreign _ what that means is that we rely on foreign savers to plug that gap. of course _ foreign savers to plug that gap. of course foreign savers or any kind of savers _ course foreign savers or any kind of savers or— course foreign savers or any kind of savers or investors, they don't dish out their— savers or investors, they don't dish out their money willy—nilly, they want _ out their money willy—nilly, they want to— out their money willy—nilly, they want to give it to a government that is route _ want to give it to a government that is route running prudently. the fact that we _ is route running prudently. the fact that we have a current account deficit — that we have a current account deficit means that we do have to listen _ deficit means that we do have to listen to — deficit means that we do have to listen to what these investors want in order— listen to what these investors want in order to — listen to what these investors want in order to provide them with the investment and the returns that they want to— investment and the returns that they want to see — investment and the returns that they want to see and if they walk away then we _ want to see and if they walk away then we see the cost of our borrowing go up and which of course leads— borrowing go up and which of course leads to _ borrowing go up and which of course leads to all— borrowing go up and which of course leads to all sorts of problems with mortgage — leads to all sorts of problems with mortgage rates, etc, that we have seen _ mortgage rates, etc, that we have seen in _ mortgage rates, etc, that we have seen in the — mortgage rates, etc, that we have seen in the past few weeks. there is an element— seen in the past few weeks. there is an element that investors are dictating _ an element that investors are dictating that is because of the way our finances are right now. it�*s our finances are right now. it's very hard _ our finances are right now. it's very hard to — our finances are right now. it�*s very hard to make predictions, but i'm going to ask you to make some comment terms of where you see key things like interest rates and inflation in a year's time? i think

there are structural— inflation in a year's time? i think there are structural reasons - inflation in a year's time? i think there are structural reasons to i there are structural reasons to believe — there are structural reasons to believe inflation is going to be higher— believe inflation is going to be higher in— believe inflation is going to be higher in the next five years than it was— higher in the next five years than it was in— higher in the next five years than it was in the past ten years. we have _ it was in the past ten years. we have a — it was in the past ten years. we have a tighter labour market and that is— have a tighter labour market and that is a — have a tighter labour market and that is a demographic issue that is seen _ that is a demographic issue that is seen across— that is a demographic issue that is seen across the g ten. there are structural— seen across the g ten. there are structural reasons for that. however. _ structural reasons for that. however, what we had in the former chancellor's — however, what we had in the former chancellor's policies was a bank of england _ chancellor's policies was a bank of england that was at odds with the government's policy, the government wanted _ government's policy, the government wanted to— government's policy, the government wanted to cut tax and put a man back into the _ wanted to cut tax and put a man back into the system, the same time with a bank— into the system, the same time with a bank of— into the system, the same time with a bank of england who is mandated to brin- a bank of england who is mandated to bring inflation down trying to take demand _ bring inflation down trying to take demand away because that is how monetary— demand away because that is how monetary policy works. it does seem that the _ monetary policy works. it does seem that the new chancellor will be working — that the new chancellor will be working with the bank perhaps with the same _ working with the bank perhaps with the same sort of page, but ultimately means the bank of england will not _ ultimately means the bank of england will not have to hike interest rates as much— will not have to hike interest rates as much if— will not have to hike interest rates as much if the government isn't putting — as much if the government isn't putting so— as much if the government isn't putting so much demand back into the system _ putting so much demand back into the system. that is good news in terms of mortgages, looking out for the

next year. — of mortgages, looking out for the next year, the next two mages, we will hopefully not see the same high levels _ will hopefully not see the same high levels as— will hopefully not see the same high levels as we would have done... what mayjust _ levels as we would have done... what mayjust come on, you have not put figures _ mayjust come on, you have not put figures on _ mayjust come on, you have not put figures on it. — mayjust come on, you have not put figures on it, watch sort of figures would _ figures on it, watch sort of figures would you — figures on it, watch sort of figures would you put? because we are at mortgage — would you put? because we are at mortgage rate of about 6% that would you put? because we are at mortgage rate of about 696 that have one u- mortgage rate of about 696 that have gone up dramatically _ mortgage rate of about 696 that have gone up dramatically in _ mortgage rate of about 696 that have gone up dramatically in weeks - mortgage rate of about 696 that have gone up dramatically in weeks from | gone up dramatically in weeks from deals when people were getting around 2%. where will that be in the air? around 296. where will that be in the air? ~ ., ., ., ~' around 296. where will that be in the air? ~ ., ., ., ~ ., around 296. where will that be in the air? ~ ., ., , ., air? well, we are looking at maybe a eak in air? well, we are looking at maybe a peak in interest _ air? well, we are looking at maybe a peak in interest rates _ air? well, we are looking at maybe a peak in interest rates in _ air? well, we are looking at maybe a peak in interest rates in the - air? well, we are looking at maybe a peak in interest rates in the spring i peak in interest rates in the spring when _ peak in interest rates in the spring when looking at where we are now comment— when looking at where we are now comment is— when looking at where we are now comment is a bank of england interest— comment is a bank of england interest rate, maybe 100 basis points. — interest rate, maybe 100 basis points, maybe 75 at the next policy meeting _ points, maybe 75 at the next policy meeting and then going up a little bit more _ meeting and then going up a little bit more at the end of the year, the beginning _ bit more at the end of the year, the beginning of next year. but, hopefully, there is hope and the market— hopefully, there is hope and the market expectations are showing us this morning that the peaks that we thought— this morning that the peaks that we thought we might be in a few days a-o thought we might be in a few days ago might— thought we might be in a few days ago might now be a little bit lower. and that _ ago might now be a little bit lower. and that should be good news for people _ and that should be good news for people trying to get mortgage rates towards _ people trying to get mortgage rates towards the end of the year. this will he _ towards the end of the year. this will he a — towards the end of the year. this will be a lot higher than they were a year—

will be a lot higher than they were a year ago — will be a lot higher than they were a year ago but perhaps not as high as we _ a year ago but perhaps not as high as we were — a year ago but perhaps not as high as we were fearing just a few days a-o. as we were fearing 'ust a few days auo. . ~' as we were fearing 'ust a few days auo. . ~ , ., as we were fearing 'ust a few days ao. ., ~' , ., , . as we were fearing 'ust a few days auo. . , . . ., ago. thank you very much. we are 'ust ago. thank you very much. we are just about — ago. thank you very much. we are just about 30 _ ago. thank you very much. we are just about 30 minutes _ ago. thank you very much. we are just about 30 minutes away - ago. thank you very much. we are just about 30 minutes away from | just about 30 minutes away from hearing the chancellor, he is going to be on camera, then we are not exactly sure where about at 11am he is going to be speaking and outlining what the plan is going forward in terms of tearing up what was announced in that mini budget just weeks ago. stay here with us in westminster, we will be live here throughout the day for reaction, right now back to the studio. scotland's first minister is to publish a paper this morning outlining the economic argument for leaving the uk. according to nicola sturgeon, an independent scotland would build an "economy that works for everyone". let's talk to our scotland correspondent james shaw. james, welcome to you. this will be central to her argument for independence, want to be expecting? that is right. the latest thing i can tell you which is an interesting

development is that this news conference with nicola sturgeon has been a back from 11am to 12 o'clock. you have to think the reason for that, this is speculation, is because of the jeremy hunt statement which is happening at 11am. the first minister doesn't want her statement to be overshadowed by what is happening at westminster. i think there is a serious danger of that, given the scale of what is happening in london today. but one of the things i think nicola sturgeon will do is try to contrast what she is doing with the extraordinary turbulence that there has been in government over the past few weeks. essentially she will lay out a vision for what she will say would be a fairer, wealthier and greener economy if scotland becomes independent. things like the £20 billion infrastructure fund, which would be funded by oil and gas and what they call responsible borrowing. a new policy on

immigration, encouraging people to come to scotland and also changes in things like the minimum wage. the critics of the scottish government are going to say there are difficult questions that nicola sturgeon needs to answer on things like currency, currently the policy is that scotland will carry on using the pound until the conditions were right to move to its own currency. on trade scotland if it was independent would want and seek to rejoin the european union. if that happens, one country inside the single market would be trying to trade with another country, england, and the rest of the uk outside the single market. there is also the question of what kind of deficit the scottish government could run, people say that is a serious issue, the amount of money that the government would bring in compare to how much it will spend. my suspicion is that nicola sturgeon will probably want to address those kind of questions head on, because there is a feeling that when the last time

there was an independence referendum in 2014, it was a worries about those kind of financial questions which meant some people didn't vote for independence. so it is a key opportunity for nicola sturgeon, but i think her and her ministerial colleagues will be worried about what is happening in westminster, but they will try to contrast what they are doing with what is happening in london. figs they are doing with what is happening in london. as you say that'll be happening _ happening in london. as you say that'll be happening at _ happening in london. as you say that'll be happening at 12 - happening in london. as you say that'll be happening at 12 o'clockj that'll be happening at 12 o'clock and we will bring it to our viewers. thank you. officers in britain's largest police force are "getting away with breaking the law and committing misconduct and hundreds should be sacked". that's the conclusion of a new report which also found the metropolitan's police internal disciplinary system is racist and misogynist. met police commissioner, sir mark rowley, says he's appalled by the findings. our special correspondent lucy manning reports. how could a police officer kidnap, rape and kill? it was sarah everard's murder by metropolitan police officer wayne couzens that shocked the country, that made people ask,

how could the police be trusted? in the aftermath of sarah everard's murder, baroness louise casey was asked to investigate the met. can it police its own? the answer is no. she found misconduct cases take too long to resolve — on average, more than a year. nearly 60% of cases end without any action taken, especially sexual misconduct and discrimination allegations. there is systemic racial bias with black and asian officers more likely to be accused of misconduct. too few officers who should be removed for gross misconduct have been, and officers with repeated patterns of unacceptable behaviour aren't identified. i have found in their internal misconduct system that it's not good enough, it's not quick enough and it has racial disparity and the force needs to accept that. the whole force needs to accept it.

they mustn't deny it and they mustn't look to find that i've somehow got my homework wrong. the new metropolitan police commissioner says he's appalled and angry, but it's clear these issues aren't new. i'm so angry about how we've let so many people down. what you read about what women and non—white officers are suffering in the organisation, it's disgraceful, our feebleness in our response to that, and i apologise to them that we've let them down so badly and i apologise to the public for what that means for them as well. when two police officers take photos with the dead bodies of murdered sisters nicole smallman and bibaa henry then share them with colleagues, when police officers, mainly based at charing cross police station, send messages thatjoke about rape, domestic violence and racism, it's clear failing to deal internally with dangerous officers has put the people they serve, the public, at risk. lucy manning, bbc news. in china, the week—long

communist party congress is under way in beijing. delegates are likely to give president xi jinping a third term as party chief, in a break with tradition. in his opening speech, president xi addressed the issue of taiwan, which china claims as part of its territory. he said the "complete reunification of our country must and will be realised". translation: resolving the taiwan question - is a matter for the chinese. we will continue to strive for the peaceful unification with the greatest sincerity and utmost effort, but we will never promise to renounce the use of force and we reserve the option of taking all measures necessary. this only directed at interferers by our side forces, and a few separatists seeking taiwan independence and their separatist activities. it is by no means targeted at our taiwan compatriots. more than 600 people are now

known to have died in nigeria as a result of severe flooding and meteorologists say the torrential rain is likely to continue until at least the end of november. the government is urging the state authorities to evacuate those living in vulnerable areas as soon as possible. wendy urquhart reports. others are stocked up on sandbags to keep the water out, but the sheer brute force of the floods made that impossible. flash flooding has displaced at least 1.3 million people in nigeria and some 200,000 homes have been completely washed away. the water released from several dams which were supposed to

prevent excessive flooding has made a very bad situation even worse. humanitarian groups have provided a shelter, food and clothing for those who have been affected, but there are fears that the worst is yet to come. the world food programme and the un's food and agricultural programme have both said nigeria is one of six countries are facing a high risk of a catastrophic level of hunger. with large swathes of farmland, waterlogged and crops completely destroyed, rice producers are already warning that prices could soar. not least because rice imports were banned in a bid to stimulate local production. this is the worst rainy season in nigeria for a decade. despite early warnings, it seems the countryjust wasn't prepared for the level of destruction that the rainy season has caused.

typhoon nesat brought 120 kilometre an hour winds and driving rain to the northern philippines on sunday. flash floods forced at least 900 people to evacuate their homes and many roads are completely blocked. the storm also brought down trees and damaged houses and businesses. typhoon neset is now heading for the south china sea. emergency warnings are still in place in parts of australia after a massive storm dumped a month's worth of rain in rochester, 200 kilometres north of melbourne. more than 340 roads were closed across the state of victoria, leaving hundreds of people stranded and thousands have no electricity. over 3,000 people have already applied for aid and meteorologists say more rain is on the way. officials in the ukrainian capital, kyiv, say the city has been attacked by so—called kamikaze drone weapons, with at least one person killed. there have been at least three explosions in the ukrainian capital, kyiv, at least two of them close to the heart of the city. the government says the attacks were conducted by russian forces using drones recently supplied by iran. people ran for safety

and buildings were damaged. it comes a week after russia launched missiles on cities across the country, including kyiv. our diplomatic correspondent, paul adams, sent this report from kyiv. we are down near the railway station here in the centre of kyiv at the scene of one of this morning was my explosions. you can see the smoke rising on both sides of the road here so from an office building on the right where we saw flames earlier this morning, there were still smoke there, and across the road, what looks to be a slightly more urgent scene, large amounts of smoke still billowing from what we believe is a residential building, there is a crane already there and we have seen lots of rescue workers arriving all the time. this isjust one of several attacks this morning around the city, which began around 630 m in the morning, it went on for

a couple of hours before the all clear was sounded. we don't yet have a particularly clear idea of the nature of the targets. office buildings, residential buildings, possibly targets connected with ukraine's energy infrastructure, all of those details will emerge probably as the day wears on. but this is the second week in a row in which the people of this city have woken up on a monday morning to multiple attacks right in the centre of the capital. i have to say that unlike last week, where the streets were deserted for some hours after the attacks, in other parts of the city, very close to here, we see people going about their business, we see traffic, we see people walking to their offices, people carrying coffees looking pretty relaxed. already, it seems people are getting used to this kind of thing in the capital. we have had an update from the reuters news agency saying that several people have been

killed in those russian extracts in the ukrainian city today, after the mayor of kyiv had said at least one person had been killed in the capital and at had been a few deaths in other cities but no other details as yet. more on our top story. the new uk chancellor, jeremy hunt, is to make an emergency statement on the mini—budget in less than an hour's time — two weeks earlier than planned. he's expected to fast track billions of pounds worth of tax and spending measures as he looks to reassure markets that influence the cost of government borrowing. mr hunt is expected to confirm he will delay the cut to the basic joanna gosling is in westminster. jeremy hunt is expected to announced that he will delay the cuts to income tax, kwasi kwarteng was only income tax, kwasi kwarteng was only in the position of chancellor, a matter of weeks, it is just 40 days since this new government has been in position. let's not talk about it with former adviser to theresa may,

political commentator and lbc radio presenter thomas welbeck. we have seen the markets have responded pretty well this morning to what has been said so far byjeremy hunt and what is anticipated to come, how much breathing space do you think that delivers for the cupboard? i think it delivers a bit but i don't think it delivers a bit but i don't think it delivers enough. the first fantasy was that you could have unfunded tax cuts that would stem led growth and the moment that found a seat made contact with that reality, it exploded. the second fantasy is the gesture that the country, everyonejust fantasy is the gesture that the country, everyone just sorta forgets what happens over the last five weeks or so, that liz truss can apparently morph from market libertarian, uber ordering delivery riding freedom fighter to being a

chin scratching incrementally. i am not sure people are going to buy it. i was talking to the former adviser of rescission act earlier and he said that as the person —— talking to the former adviser of rishi sunak, that she can bring the people that still believe that on side to the new vision. do you accept that? she might do but this is now liz truss coastline rishi sunak, and so the conservative party might think, why not get rishi sunak back in? the exect for why not get rishi sunak back in? the expect for tory mps why not get rishi sunak back in? the expect for tory mp5 is going to be expect for tory mps is going to be what effect that is going to have in the polls and the pals are disastrous for them over the last few weeks. disastrous for them over the last few weeks-— disastrous for them over the last few weeks. , ._ ., , few weeks. they may well get worse, the ma

few weeks. they may well get worse, they may get — few weeks. they may well get worse, they may get better _ few weeks. they may well get worse, they may get better but none - few weeks. they may well get worse, they may get better but none of- few weeks. they may well get worse, they may get better but none of it - they may get better but none of it will be better enough for liz truss to be anywhere near needing a part in the next general election. the mechanisms _ in the next general election. the mechanisms for _ in the next general election. the mechanisms for changing leader are, as we saw before, there needs to be as we saw before, there needs to be a certain numbers and letters going to the 1922 committee, to graham brady, there is a suggestion, actually, that more than enough letters are either being thought about or have already been sent, potentially, there is still the rule that the premier can't be changed within the first year of the leadership, but again the rules can be changed on that. but what every body seems to be agreed on is that they shouldn't be another leadership contest because we saw how long that takes. but in terms of anointing someone else, is the party going to get behind one candidate? how are things looking?— things looking? well, that is part ofthe things looking? well, that is part of the reason _ things looking? well, that is part of the reason there _ things looking? well, that is part of the reason there is _ things looking? well, that is part of the reason there is a _ things looking? well, that is part of the reason there is a time - things looking? well, that is part. of the reason there is a time being bought because clearly there isn't an immediate obvious successor that people can quote unquote unite

behind. the mechanism for doing it can be changed, i think george osborne said last night that water will find its way downhill, and it well, so there is inevitably about this, who they light upon i have no idea, you might as well, if you thought there was enough support, put rishi sunak as by minister and havejeremy hunt as chancellor, that the whole notion of trying to pretend the last five weeks didn't happen, that liz truss has once again morphed from being a remained voter to a brexit vac at —— back, from a republican did them, from a curtsying conservative, i don't think people are going to die so however it happens and whoever they decide needs to be the next prime minister, i think they will end up doing it, and then of course the massive question is well, on whose mandate come on whose say so? but never again, mandate come on whose say so? but neveragain, i don't mandate come on whose say so? but never again, i don't think ever again, should political parties be to prime minister based on the votes

of the membership. do to prime minister based on the votes of the membership.— of the membership. do you think there is some _ of the membership. do you think there is some sort _ of the membership. do you think there is some sort of _ of the membership. do you think there is some sort of payback- of the membership. do you think there is some sort of payback forj there is some sort of payback for tory leaders who have gone before in recent and pretty recent history and been ousted successively from david cameron, theresa may, who you were an adviser too, to borisjohnson and now we have liz truss, but in that leadership contest, we heard rishi sunak saying stuff that is now absolutely coming out as he predicted it would, so is there a certain amount of schadenfreude about there? i certain amount of schadenfreude about there?— certain amount of schadenfreude about there? ., ., about there? i thought the line from the rishi sunak _ about there? i thought the line from the rishi sunak camp _ about there? i thought the line from the rishi sunak camp advising - about there? i thought the line from the rishi sunak camp advising him l the rishi sunak camp advising him about his lack of attendance to conference, that was dripping in schadenfreude actually. i suspect there will be, but none of this is

good news for the country, first of all, and then for the conservative party second of all, because even the stuff that the armed tax cuts, the stuff that the armed tax cuts, the supply side that liz truss has been talking about, that is hard to do with a majority, that is hard to do with a majority, that is hard to do when you have got absolutely no political capital left with your conservative mps, i heard damian green on the radio this morning saying, of the fracking change, the moratorium being lifted, well, there doesn't seem to be very much public consent, local consent, to give fracking the go—ahead, so it's fracking the go—ahead, so it's fracking ever really going to happen, even ones that moratorium is lifted? i doubt it. riff happen, even ones that moratorium is lifted? i doubt it.— happen, even ones that moratorium is lifted? i doubt it.— lifted? i doubt it. of course, we are talking _ lifted? i doubt it. of course, we are talking about _ lifted? i doubt it. of course, we are talking about a _ lifted? i doubt it. of course, we are talking about a government| lifted? i doubt it. of course, we - are talking about a government with are talking about a government with a 71 seat working majority. it’s are talking about a government with a 71 seat working majority.— a 71 seat working ma'ority. it's not workinu. a 71 seat working ma'ority. it's not working. the h a 71 seat working majority. it's not working. the problem _ a 71 seat working majority. it's not working. the problem is, - a 71 seat working majority. it's not working. the problem is, of- a 71 seat working majority. it's not i working. the problem is, of course, that for conservative mps, they weren't particularly united behind liz truss, and it ended up going to the mothership and we all know what

happened. even the other stuff, the other bits of the reform that liz truss is talking about, really tricky, you know, house—building, changing the rules about house—building does need to happen, we do need to build more homes, but it comes at a political cost, it comes with trying to persuade people around your ideas, it might come at the and i are induced from councillors and conservatives that may be changing the rules about where people can build, she doesn't have any pedicle capital left, so i don't know where she is going to borrow that from to get those kinds of changes through.— of changes through. thank you very much, of changes through. thank you very much. tom — of changes through. thank you very much, tom swarbrick. _ of changes through. thank you very much, tom swarbrick. the - of changes through. thank you very l much, tom swarbrick. the chancellor has now left downing street, and he is now expected to give a televised statement from inside the treasury at around 11:15am, so in half—an—hour, priorto at around 11:15am, so in half—an—hour, prior to his announcement in the commons this afternoon, we will have coverage from here. for now, back to the studio. the united nations refugee agency has told the bbc it's deeply

distressed by reports that a group of naked migrants was discovered on greece's land border with turkey. greek police said 92 men were found near the river evros on friday, and accused turkey of forcing the migrants across the river in plastic boats. the un is calling for a full investigation, emphasising it condemns any cruel and degrading treatment of migrants. it has not yet had access to the men but understands they're being transferred to a reception centre. turkey's deputy interior minister has dismissed greek allegations that his country was responsible. our reporter azadeh moshiri has been following that story and she gave me this update. greek police have said that they found 92 men near the northern border with turkey and that they were found in a vulnerable position without clothes and many of them injured. greece has said it conducted an investigation with the eu border agency which typically leads these sorts of investigations into migrants and that they uncovered evidence that these migrants were. two cross this river

in rubber dinghies, but in terms of who is responsible, that is currently a blame game between greece and turkey. now, a quick minister has laid the blame plainly at 30's feet and said that this is a pattern of turkey pushing these migrants towards greece, and has said that the border agency were told by the migrants that they were forced into army vehicles and taken to the river, now that hasn't been confirmed by them and the bbc hasn't been able to verify this themselves, but turkey completely denies this the president's spokesperson said this is the greek fake news machine at work and that in fact greece has at work and that in fact greece has a pattern of mistreating migrants that arrive in greece, but a big question remains and it is how did they end up in such a vulnerable position, how did they lose their clothes, exactly what happened to them? that so many questions why the un is calling for this independent investigation to take place, but

this in context for us, there has been an argument between these two countries about migrants for years. yes, that is right, socially when it dates back to 2015 when there was a mass migration crisis, the eu really felt it but in particular greece really felt it, that was when 1 million migrants and refugees made their way from syria, iran, afghanistan, countries that were war torn and dealing with very severe economic problems, these migrants were seeking a better life and took a very dangerousjanuary were seeking a better life and took a very dangerous january is to make it to europe, but they mainly arrived in greece and greece had a very difficult time with such a huge number of migrants arriving to the country, and so a deal was struck between the eu and turkey, where turkey would receive billions of euros in aid in order to control the flow of migrants. greece is saying that the number of migrants is spiking again and that turkey isn't living up to its site of the deal, and so this is just a pattern of

back—and—forth between the two countries. campaigners are warning that the british government is running out of time to equip the nhs with a drug that could protect some vulnerable people against covid—19 this winter. the department of health says more research is needed before it commits to purchasing evusheld. here's our health correspondent, dominic hughes. evusheld would give me a layer of protection that is better than nothing. because that's what i have currently, is nothing. i've just been thrown right under the bus. forgotten about, totally forgotten about. i'm expensive and expendable. so, you know, the sooner people like me disappear, the easier it will be for everybody. the solution to - the problem is there. but we can't get it. and to be honest, i think that's even more cruel than _ not having a solution at all. already struggling with her health, blanche is preparing for another long winter.

she lives with lupus, a condition where her own immune system has turned against her. the drugs that i take to treat the lupus that i have have suppressed my immune system to the stage where it doesn't function. and so what all that means is, i will get whatever infection much more quickly than a healthy person, and i will not recover in anything like the speed of a healthy person. so you add covid to that mix, and it's potentially fatal. no immune system means vaccines can't offer blanche any protection. so as the world has moved on, she's been shielding for two and a half years. the reality of sitting in a place, watching people go about their lives through the window, knowing that you can't do that, and that if you get sick again, that will be the end of it for you. and all you can do now is wait

for the axe to fall. essentially, we are your last visitors, you think? oh, absolutely. last people to come into the flat? yes, yes. but there is a drug that offers some hope. evusheld, available in more than 30 countries, delivers readymade antibodies to those who can't create their own. it was all set to be prescribed to up to half a million immune—suppressed people in the uk. but in august, the government called a halt to the roll—out, concerned over how it performs against the omicron variant. it is a nice day, though. that decision was hard to take for scott and his wife, nicola. scott's treatment for a rare form of blood cancer has left his immune system in pieces. evusheld offered them the chance to make some memories in whatever time scott has left. i'm ex—military. i've served this country in the early �*90s, and ifeel like i've just been thrown under

the bus, to be quite honest with you. angry, disappointed, abandoned. let down, as well. totally let down by the government. good boy! scott believes evusheld offers him a route back into the world, to work, a social life. and a significant number of medical experts agree that delaying a roll—out of the drug is flawed. the decision to not run with evusheld this winter is very much a kind of glass—half—empty approach. but the glass—half—full approach is, it has some activity and it has some benefit. and so for very many patients, actually, isn't it better to do something for them rather than nothing? just a stone's throw from blanche's home, people are getting on with their lives. but for those who face another winter of shielding,

time is running out. what's really striking about this group of people, the immunosuppressed, for whom the vaccines just don't really work, is how abandoned they feel. now, the government have told us in a statement that they are not yet convinced about how long drugs like evusheld will provide protection against the omicron variant of covid, and they are looking into urgently setting up clinical trials. but what this group of people want to know is, just how long is that going to take? it doesn't seem just and fair in a society where the majority of people can have some protection and go about their lives but people like me don't have a life to go about any more. we should just reassure viewers that blanche's friends and family are on a rota system for the next six months to check in on her and bring her shopping and medication.

there have been more anti—government protests in iran. demonstrators at tehran university have been shouting slogans about the events at evin prison on saturday. authorities have now said eight people were killed in the fire that broke out there. turkey's president has been criticised for linking the deaths of 41 miners in an explosion to destiny. president erdogan said such accidents will always be. he made the comments during a visit to the site in bartin province on saturday. protests have taken place in istanbul objecting to his remarks, with some protestors describing the accident as a massacre. a number of unidentified gunmen opened fire in a bar in central mexico, killing 12 people. it's the second mass shooting in the state of guanajuato in less than a month. the motive behind the shooting was not immediately clear. the region has been convulsed by brutal turf wars between rival drug gangs in recent years.

jeremy hunt is to make an emergency statement shortly two weeks earlier than planned, let's take you back to westminster and joined my colleague joanna gosling. taste westminster and “oined my colleague ioanna costing.— joanna gosling. we are expecting to hear from the _ joanna gosling. we are expecting to hear from the chancellor _ joanna gosling. we are expecting to hear from the chancellor that - joanna gosling. we are expecting to hear from the chancellor that a - hear from the chancellor that a slant —— dismantling of the many budget and at only three weeks ago, and don't forget, this new administration has only been in position the 40 days so there is no precedent for what we are seeing here. when we had the mini budget, it was supposed to be the start of a planned rolling out but that was the growth plan, we were told, it was all of those tax cuts that were announced, totalling around £45 billion of unfunded tax cuts, and also, as part of that mini budget, there was the help with energy bills, around £150 billion help with energy bills, so expect that to survive, and also the national insurance cut that was announced, thatis insurance cut that was announced, that is also expected to survive,

not least because it has already been legislated for, but everything else we are expecting to be wiped away when we hear from the chancellorjeremy hunt in the next 20 minutes or so, when he speaks inside the treasury, so that was announced in haste this morning, just before, well, a couple of hours before the markets open, that was officially designed as attempting to reassure the markets, and we have seen that the markets have responded well to what has been announced, and also what is excited to be coming with the pound up against the dollar, about 1%, and also the bond markets doing better as well, the bonds are the cost of borrowing that the government makes and the cost of that had gone up dramatically on the morning of the mini budget of the cost of government bonds went up from around 2% to almost double, and it has gone up since then. and that

is basically an indication as to how creditworthy the investors see the uk, so that has caused problems, of course, because at a time of dramatically increased government borrowing, when the cost of that borrowing, when the cost of that borrowing increases, it is an additional headache for the government, and of course it is a time of high inflation, 9.9% is the current inflation level, so what the chancellor is hoping he will achieve this morning when he announces that those measures are being pulled back will be that it continues to calm the markets. so that is the economics of it but of course there is the politics as well and the questions go on about the future of liz truss, there have been suggestions that potentially there are around 100 tory mps who have either already fired off letters to the 1922 committee, which is the committee that handles the question of leadership elections for the tory party, so some, it is suggested,

have already put in letters, and others, it is suggested, are planning to. and the figure being put into that is about 100 letters, and that is more than the 15% of tory mps required to trigger a leadership contest. but it is only 40 days into the premiership of liz truss and under the current rules they cannot be a leadership contest until a year has passed my butt that can change because the rules can be changed, —— untila can change because the rules can be changed, —— until a year has passed, but that can change. graham brady has got back from his holidays and will be considering that and the conversations are continuing among tory mps as to whether they continue to have faith in liz truss. one example is penny mordaunt, only last week she was being discussed as potentially either a prime minister or a chancellor in a duo with rishi sunak with the two of them taking

those two positions in some sort of a 90 to power, but she has written this morning in the sunday telegraph saying that the party needs to support the government. so, the next key moment is going to be at around 11:15am when we will be hearing from the chancellor, and we will have full coverage of that. back to you, samantha. thank you very much. well, we are just hearing, joanna, if we can come back to you briefly, that suggestion is that the energy price guarantee, that times are reporting, could come to an end in april, something that has been the focus of the budget that we heard from the mini budget just a few weeks ago, we are going to hearfrom that just a few weeks ago, we are going to hear from that announcement pretty shortly from jeremy hunt in about 20 minutes' time. joanna, just about 20 minutes' time. joanna, just a more detailed coming in. i am

about 20 minutes' time. joanna, 'ust a more detailed coming in.�* a more detailed coming in. i am 'ust heafina a more detailed coming in. i am 'ust hearing that — a more detailed coming in. i am 'ust hearing that from i a more detailed coming in. i am 'ust hearing that from you, i a more detailed coming in. i amjust hearing that from you, samantha, i a more detailed coming in. i amjust. hearing that from you, samantha, but if that is the case, that is obvious to be a big change and it is not something that has been suggested until now. during the leadership contest their weather questions as to what support the tory government would put in place for people through the energy crisis, through the winter, because we were seeing the winter, because we were seeing the bills going up dramatically, they have doubled since this time last year already, and they were due to go up much higher still into january, so the question was how much support the government, the new government would introduce, and when liz truss won that leadership contest and make that announcement that what she was doing went actually dramatically beyond what had been suggested by anyone else which was a prolonged level of support for keeping the energy bills at the level that they were at, going beyond, as i say, what had been suggested by others in the

contest, and what had been suggested by the labour party, so that was seen as a really big intervention to the tune of about £150 billion, so if as you suggest it is being reported that the government is going to pullback on that level of energy support, that is going to be a really important moment because obviously then that puts the focus back onto concerns on energy bills, back onto concerns on energy hills, which had dissipated when that support had come in, and it was expected that support would be ongoing for some time yet. so, we have yet to see, of course, whether thatis have yet to see, of course, whether that is going to be that statement, but as you say, samantha, it is being supported —— reported, and we will have to wait to see what the reaction will be to that.- will have to wait to see what the reaction will be to that. joanna, we don't know — reaction will be to that. joanna, we don't know exact _ reaction will be to that. joanna, we don't know exact how _ reaction will be to that. joanna, we don't know exact how much - reaction will be to that. joanna, we don't know exact how much detail. reaction will be to that. joanna, we l don't know exact how much detail we will get on this becausejeremy hunt has only been in the job for three days before having to overhaul

the,economic strategy. and we also understand today that there is now possibly a £70 billion black hole, a deficit that the government is going to have to pay for, somehow, so it will be interesting to see where cuts are going to come today or whether that detail will be more thorough in a couple of weeks' time. yes, it is adjusted what we will see todayis yes, it is adjusted what we will see today is not going to be news on spending cuts, the discussions around that will continue but what we are expecting to see today is the pulling back of those unfunded tax cuts. you talk about the black hole and —— in the government finances, it is bigger now, it is looking like it is bigger now, it is looking like it is bigger not least because of the cost of borrowing and inflation and everything else that comes with servicing the government debt, but the level of the unfunded tax cuts must actually put at the time of around £45 billion but the black hole the government needs to fill is bigger than that so there is going to need to be things on top of what we expect to hear today with that,

the rolling back on the tax cuts that had been announced, with the exception of national insurance. and we were saying we were expecting the energy bill support also to be an exception with a £150 billion bill for that but it is being reported, as you say, that that may yet be tweaked as well. so, we are just going to have to keep watching and waiting to hear from the chancellor. he is going to be speaking in 15 minutes or so, he is going to be speaking in 15 minutes orso, and he is going to be speaking in 15 minutes or so, and of course there are those three constituencies that are those three constituencies that are going to be watching and listening, initially the markets, thatis listening, initially the markets, that is the prime concern for the government in the immediate term and thatis government in the immediate term and that is why we heard that sudden announcement this morning before the markets opened that the chancellor was going to be making this statement after 11 o'clock this morning, so those are the primary constituency right now, there are also of course the tory mps who are

watching undigested what the new chancellor is doing, that complete reversal of what was announced under kwasi kwarteng, the so—called trussonomics, whether the tory mps have faith in the direction notjust underjeremy hunt but also of course liz truss at the helm. and then there is the wider constituency, the voting public, and the backdrop to all of this is that we are potentially less then two years away from a general election, and currently, the polling is not looking at all that for the tory party, so time is of the essence and thatis party, so time is of the essence and that is what is being weighed up, not least within the party this morning, as the considerations are about whether they are prepared to give liz truss more time to see how things unfold. you are watching bbc news and continuing coverage of the chancellor's statement coming in the

next 15 minutes. in the next few minutes, we are expanding to hear from jeremy hunt, delivering an emergency statement on the economy. he has brought that forward by two weeks and he is expected to delay or drop some of the measures announced in the mini budget last month. we can go now to our business correspondence. we have just been hearing that potentially, he may pullback what was announced on the support over energy bills. but that is not clear of course until we actually hear from him whether that is what he is planning, but in terms of what you are hearing and how the markets are responding, talk us through it. the and how the markets are responding, talk us through it.— talk us through it. the silence is bein: talk us through it. the silence is being filled _ talk us through it. the silence is being filled with _ talk us through it. the silence is being filled with all _ talk us through it. the silence is being filled with all sorts - talk us through it. the silence is being filled with all sorts of- being filled with all sorts of rumours _ being filled with all sorts of rumours and speculation, as you can imagine _ rumours and speculation, as you can imagine and— rumours and speculation, as you can imagine. and that would be a hayward moving _ imagine. and that would be a hayward moving day— imagine. and that would be a hayward moving day because don't forget the

energy— moving day because don't forget the energy package in total is worth some _ energy package in total is worth some £60 billion. it is important to households— some £60 billion. it is important to households and businesses across the country. _ households and businesses across the country, who are already assuming they have — country, who are already assuming they have that help. more likely people — they have that help. more likely people are saying are changes to some _ people are saying are changes to some of— people are saying are changes to some of the tax changes that were outlined _ some of the tax changes that were outlined just a few weeks ago, things— outlined just a few weeks ago, things like the cut to the basic rate _ things like the cut to the basic rate of— things like the cut to the basic rate of income tax, the changes to dividend _ rate of income tax, the changes to dividend tax, self—employed people, those _ dividend tax, self—employed people, those kind _ dividend tax, self—employed people, those kind of things are what really people _ those kind of things are what really people think are in the immediate firing _ people think are in the immediate firing line — people think are in the immediate firing line and they would add up between — firing line and they would add up between them to five, £6 billion for stoppage _ between them to five, £6 billion for stoppage would make a difference was we have _ stoppage would make a difference was we have already had the difference on friday— we have already had the difference on friday with corporation tax and the markets reacted quite positively because _ the markets reacted quite positively because the message they are getting through— because the message they are getting through is— because the message they are getting through is that the new economic strategy— through is that the new economic strategy unveiled a few weeks ago is now firmly— strategy unveiled a few weeks ago is now firmly in the bin and we are going _ now firmly in the bin and we are going back— now firmly in the bin and we are going back towards a situation with which _ going back towards a situation with which they— going back towards a situation with which they are more comfortable, one with which— which they are more comfortable, one with which the government plans to not look— with which the government plans to not look quite so risky, both on and

looks— not look quite so risky, both on and looks to _ not look quite so risky, both on and looks to -- — not look quite so risky, both on and looks to —— comes to the model borrowing — looks to —— comes to the model borrowing but what it means to our economic— borrowing but what it means to our economic outlook. what was on the economic— economic outlook. what was on the economic table could push up inflation — economic table could push up inflation and borrowing costs, that was the _ inflation and borrowing costs, that was the concern. economists said that was— was the concern. economists said that was enough to tip the economy into recession in the coming months and a _ into recession in the coming months and a very— into recession in the coming months and a very painful downturn at that. those _ and a very painful downturn at that. those are _ and a very painful downturn at that. those are all the kind of things the markets _ those are all the kind of things the markets are looking out for at the moment— markets are looking out for at the moment but yet another day, more twists _ moment but yet another day, more twists and — moment but yet another day, more twists and turns in the saga and ultimately what markets want to know is i'll creditworthy as a nation, what _ is i'll creditworthy as a nation, what are — is i'll creditworthy as a nation, what are our prospects, what does this say— what are our prospects, what does this say about yuki —— uk plc and is the chancellor have a clear idea how to restore _ the chancellor have a clear idea how to restore it. — the chancellor have a clear idea how to restore it, is ability and what it takes— to restore it, is ability and what it takes to — to restore it, is ability and what it takes to get financial stability back on— it takes to get financial stability back on the table? it is a tall task but managing the economy is never easy or— but managing the economy is never easy or straightforward.— easy or straightforward. thank you. tell us what — easy or straightforward. thank you. tell us what is _ easy or straightforward. thank you. tell us what is happening _ easy or straightforward. thank you. tell us what is happening with - easy or straightforward. thank you. tell us what is happening with the i tell us what is happening with the energy bill support. i tell us what is happening with the energy bill support.— energy bill support. i think it is likely that _

energy bill support. i think it is likely that it — energy bill support. i think it is likely that it will— energy bill support. i think it is likely that it will change - energy bill support. i think it is likely that it will change over . energy bill support. i think it is i likely that it will change over the course of the day. at the moment, it is due to be universal for two years both by don't think that'll be the case by the end of the day. the suggestion is it will be scaled back potentially to a matter of months. that does not mean there will be support for people with bills, the specifics that matter here, but remember the energy plan was a big expensive pens of billions of pounds one. and i think that is one of the things that the government is looking to scale back —— tens of billions of pounds. income tax reduction next year that the government had promised is unlikely to survive. and there could be more to survive. and there could be more to come when we hear from the chancellor within the next 15 minutes. this is going to be a big deal. it is a proper ripping up of the plans. mi; deal. it is a proper ripping up of the plans-— deal. it is a proper ripping up of the lans. g , ., ., the plans. my mind is going into overdrive. _ the plans. my mind is going into overdrive, in _ the plans. my mind is going into overdrive, in terms _ the plans. my mind is going into overdrive, in terms of— the plans. my mind is going into overdrive, in terms of where - the plans. my mind is going into i overdrive, in terms of where these strands lead because as you say, there is going to be people who had been banking on support on energy

bills and it does not mean everything is going to go but it is obviously going to be finessed, it will not be universal for two years, so there is that... i will not be universal for two years, so there is that. . ._ so there is that... i think there are elements _ so there is that... i think there are elements of _ so there is that... i think there are elements of universality i so there is that... i think there i are elements of universality that will continue for a few months. when this was introduced, there were suggestions from opposition parties like labour that you should do this for six months. the government said no, we want to be bigger and bolder and give people certainty, we are going to cap prices for two years, the price per unit. that was expensive, some thought it was too expensive, some thought it was too expensive and i think the chancellor agrees with them. that expensive and i think the chancellor agrees with them.— agrees with them. that is the other direction my _ agrees with them. that is the other direction my mind _ agrees with them. that is the other direction my mind is _ agrees with them. that is the other direction my mind is going - agrees with them. that is the other direction my mind is going on. - agrees with them. that is the other direction my mind is going on. the | direction my mind is going on. the messaging has been so strong about, no, we are doing something more than the opposition parties have been talking about, we are the people you can trust effectively with that. that messaging, it is notjust about the real impact on voters, it is the

political messaging and how they manage that. i political messaging and how they manage that-— manage that. i think that is absolutely _ manage that. i think that is absolutely right. _ manage that. i think that is absolutely right. the - manage that. i think that is i absolutely right. the message manage that. i think that is - absolutely right. the message we will hear from the government is they have listened and they have reacted to economic circumstances. let's be frank, the plans that liz truss drew up when she became prime minister, the promises he made over the summer to conservative members are in the shredder this morning. jeremy hunt has come in as chancellor and absolutely ripped up the government's plans and he is going to announce a u—turn without precedent in its scale, in its timeframe, in modern politics. this is a real repudiation of what liz truss stood for as prime minister. it is a complete junking truss stood for as prime minister. it is a completejunking of truss stood for as prime minister. it is a complete junking of what kwasi kwarteng thought... for weeks, we had that message, you cannot tax your way to growth. this is required

to give people certainty over the next two years. the government has completely changed its mind and that is why in number of tory mps we have been speaking to over the past couple of days are raising the question, what does liz truss stand for now? one put it to me, what is the point of liz truss? there will be a lot more of those conversations today. it be a lot more of those conversations toda . . be a lot more of those conversations toda . , ., ., today. it is often said about olitics, today. it is often said about politics, when _ today. it is often said about politics, when you - today. it is often said about politics, when you go - today. it is often said about politics, when you go into i today. it is often said about - politics, when you go into politics, the question is, do you have the stomach for it? it is hard to imagine what must be going through the minds of those who are in charge right now in having to deal with what they are doing and the relentless level of u—turns, the like of which we have never seen before. it is notjust about whether they have got the stomach, it is whether they have the trust, as you say, of the party to go forward. that is absolutely right. you will remember that when liz truss took over as prime minister, she said she was prepared to do things that

weren't popular, determined to see through her plan, but she has not been prepared to do things that are unpopular when it has become tough and she has not fought for her plan any longer. we are about to see a completely new strategy from the government, a complete reversal of what ministers had been telling us was required. you are now going to hear ministers say the opposite is true. there are two facts that the government has had to face up to, one is the markets, the terminal that we have seen over the last few days, the rising cost of energy, and the genuine fear a lot of voters had about mortgages and the cost of borrowing and just where the uk economy is going to be left by all these decisions. the second was, the political reality, which is there are dozens of mps who will be returning to parliament this afternoon, who are plotting, conservative mps who want rid of the prime minister, who want to replace her with someone else. it doesn't

seem like that is imminent for two reasons, some will want to give jeremy hunt some time and it is not clear what comes after liz truss, nobody wants to push the button until they know what the answer to that is. but liz truss' critical career is hanging by a thread. i am told we may _ career is hanging by a thread. i am told we may be _ career is hanging by a thread. i am told we may be hearing from you chancellor any moment. we were keep an eye on what is happening inside the treasury because that is where we are going to be hearing from him. he has started speaking, i am hearing. he says the uk will always pay its way. this is on camera, off—camera, some sort of a briefing... and he has said that they will reverse nearly all the tax measures of the mini budget. it is frustrating. i am not hearing it but i am hearing word of what is being said. we thought this was going to be an on camera briefing. it does not seem it is that, unless the link

has fallen down. it is being recorded but maybe not for immediate broadcast. �* , ., , broadcast. don't be under any illusions about _ broadcast. don't be under any illusions about how— broadcast. don't be under any illusions about how big - broadcast. don't be under any illusions about how big a - broadcast. don't be under any i illusions about how big a political moment this is. jeremy hunt has been in thejob for 72 moment this is. jeremy hunt has been in the job for 72 hours and is now coming in absolutely ripping up what was done by his predecessor in the treasury, kwasi kwarteng. but it is impossible to just see this as kwasi kwarteng's economic plans, it was the prime minister as well. they work very closely on these and there will be a lot of people questioning this afternoon how liz truss can stand up in parliament over the next few days and stick up for these plans, givenjust how few days and stick up for these plans, given just how much they have changed. just plans, given 'ust how much they have chanted. , . . plans, given 'ust how much they have chanted. . , ., changed. just see if we are getting an more changed. just see if we are getting any more details. _ changed. just see if we are getting any more details. yes, _ changed. just see if we are getting any more details. yes, he - changed. just see if we are getting any more details. yes, he has - changed. just see if we are getting any more details. yes, he has said he will reverse almost all the tax measures announced in the growth plan, no longer cut dividend tax, won't cut the basic rate of income tax, so that remains at 20%

indefinitely. as you say, this is... this is demolishing something that the government, or at least liz truss and kwasi kwarteng stood by, and i say those two because in the immediate aftermath of the mini budget, there were interviews and liz truss did say that the 45p tax rate for instance had only been discussed between the two of them and we very quickly heard even members of the cabinet talking against what had come out in that mini budget. against what had come out in that mini iitudget-_ against what had come out in that mini buduet. , ., ., , ., mini budget. there is going to be a very different _ mini budget. there is going to be a very different style _ mini budget. there is going to be a very different style from _ mini budget. there is going to be a very different style from the - mini budget. there is going to be a very different style from the prime | very different style from the prime minister over the next few hours. we think that she will spend the afternoon speaking to mps, speaking to the cabinet, trying to shore up support by saying i am in listening mode now and i am prepared to have these conversations with you about these conversations with you about the way forward. i am just hearing

in the last few seconds the prime minister held a political cabinet call at ten o'clock this morning, to update the cabinet on her plans and reiterated the government was taking immediate action to address the rising cost of living by supporting families with energy bills. taste rising cost of living by supporting families with energy bills. we can hear from jeremy _ families with energy bills. we can hear from jeremy hunt. _ good morning. a central responsibility for any government is to do— responsibility for any government is to do what— responsibility for any government is to do what is necessary for economic stability _ to do what is necessary for economic stability. this is vital for businesses making long—term investment decisions and the families— investment decisions and the families concerned about theirjobs, their mortgages and the cost of living — their mortgages and the cost of living no — their mortgages and the cost of living. no government can control markets. — living. no government can control markets, but every government can

-ive markets, but every government can give certainty about the sustainability of public finances. and that — sustainability of public finances. and that is one of the many factors that influence how markets behave. and for— that influence how markets behave. and for that reason, although the prime _ and for that reason, although the prime minister and and for that reason, although the prime ministerand i and for that reason, although the prime minister and i are both committed to cutting corporation tax, committed to cutting corporation tax. on _ committed to cutting corporation tax, on friday she listened to concerns— tax, on friday she listened to concerns about the mini budget and as a result _ concerns about the mini budget and as a result we will not proceed with the cut— as a result we will not proceed with the cut to _ as a result we will not proceed with the cut to corporation tax announced. the government has today decided _ announced. the government has today decided to— announced. the government has today decided to make further changes to the mini _ decided to make further changes to the mini budget and to reduce unhelpful speculation about what they are, — unhelpful speculation about what they are, we have decided to announce _ they are, we have decided to announce these ahead of the medium—term fiscal plan which happens — medium—term fiscal plan which happens in two weeks. i will give the detailed statement to parliament this afternoon, and answer questions from mps. _ this afternoon, and answer questions from mps, but because these decisions _ from mps, but because these decisions are market sensitive, i have _ decisions are market sensitive, i have agreed with the speaker the need _ have agreed with the speaker the need to— have agreed with the speaker the need to give an early brief summary of the _ need to give an early brief summary of the changes which are all designed to provide confidence and

stability _ designed to provide confidence and stability. firstly, we will reverse almost — stability. firstly, we will reverse almost all — stability. firstly, we will reverse almost all of the tax measures announced in the growth plan three weeks _ announced in the growth plan three weeks ago — announced in the growth plan three weeks ago that has not started parliamentary legislation. whilst we will continue with the abolition of the health and social levy and stamp duty changes, we will no longer be proceeding with the cuts to dividend tax rates. _ proceeding with the cuts to dividend tax rates, the reversal of payroll working — tax rates, the reversal of payroll working reforms introduced in 2017 and 2021. — working reforms introduced in 2017 and 2021, the new vat free shopping scheme _ and 2021, the new vat free shopping scheme for— and 2021, the new vat free shopping scheme for non—uk visitors, all the freeze _ scheme for non—uk visitors, all the freeze on _ scheme for non—uk visitors, all the freeze on alcohol duty rates. secondly, the current plan is to cut the basic— secondly, the current plan is to cut the basic rate of income tax to 19% from _ the basic rate of income tax to 19% from april— the basic rate of income tax to 19% from april 2023. it is a deeply held conservative value, a value that i share. _ conservative value, a value that i share. that — conservative value, a value that i share, that people should keep more of the _ share, that people should keep more of the money that they earn. but at

a time _ of the money that they earn. but at a time when — of the money that they earn. but at a time when markets are rightly demanding commitment to sustainable public finances, it is not right to borrow— public finances, it is not right to borrow to— public finances, it is not right to borrow to fund this tax—cut, sol have _ borrow to fund this tax—cut, sol have decided the basic rate of income — have decided the basic rate of income tax will remain at 20% and it will do _ income tax will remain at 20% and it will do so _ income tax will remain at 20% and it will do so indefinitely until economic circumstances allow for it be cut _ economic circumstances allow for it be cut. taken together with the decision— be cut. taken together with the decision not to cut corporation tax and restoring the top rate of income tax, and restoring the top rate of income tax. the _ and restoring the top rate of income tax, the measures i have announced today— tax, the measures i have announced today will— tax, the measures i have announced today will raise every year around £32 billion — today will raise every year around £32 billion. finally, the biggest single — £32 billion. finally, the biggest single expense in the growth plan was the _ single expense in the growth plan was the energy price guarantee. this is a landmark policy supporting millions— is a landmark policy supporting millions of people through a difficult _ millions of people through a difficult winter and today, i want to confirm — difficult winter and today, i want to confirm that the support we are providing — to confirm that the support we are providing between now and april next year will— providing between now and april next year will not change but beyond that. _ year will not change but beyond that. the — year will not change but beyond that, the prime ministerand i have agreed _ that, the prime ministerand i have

agreed it— that, the prime ministerand i have agreed it would not be responsible to continue exposing public finances to continue exposing public finances to unlimited volatility in international gas prices. i am announcing today a treasury led review _ announcing today a treasury led review into how we support energy bills beyond april next year. the objective — bills beyond april next year. the objective is to design a new approach that will cost the taxpayer significantly less than planned, whilst — significantly less than planned, whilst ensuring enough support for those _ whilst ensuring enough support for those in _ whilst ensuring enough support for those in need. any support for businesses will be targeted to those most affected and the nail approach will better incentivise energy efficiency. the most important objective — efficiency. the most important objective for our country right now is stability — objective for our country right now is stability. governments cannot eliminate — is stability. governments cannot eliminate volatility in markets, but they can _ eliminate volatility in markets, but they can play their part and we will do so _ they can play their part and we will do so because instability affects the prices of things in shops, the cost of— the prices of things in shops, the cost of mortgages, and the values of

pensions _ cost of mortgages, and the values of pensions. there will be more difficult — pensions. there will be more difficult decisions i'm afraid on both— difficult decisions i'm afraid on both tax— difficult decisions i'm afraid on both tax and spending, as we deliver our commitment to get debt falling as a share — our commitment to get debt falling as a share of the economy over the medium—term. all departments will need to— medium—term. all departments will need to redouble their efforts to find savings and some areas of spending — find savings and some areas of spending will need to be cut. but as i spending will need to be cut. but as i promised — spending will need to be cut. but as i promised at the weekend, our priority— i promised at the weekend, our priority in— i promised at the weekend, our priority in making the difficult decisions that lie ahead will always be the _ decisions that lie ahead will always be the most honourable. and i remain extremely— be the most honourable. and i remain extremely confident about the long—term economic prospects of the uk -- _ long—term economic prospects of the uk -- most _ long—term economic prospects of the uk —— most vulnerable. but growth requires _ uk —— most vulnerable. but growth requires confidence and stability and the — requires confidence and stability and the united kingdom will always pay its _ and the united kingdom will always pay its way. this government will therefore — pay its way. this government will therefore take whatever tough decisions are necessary to do so. thank— decisions are necessary to do so. thank you — decisions are necessary to do so. thank yon-—

decisions are necessary to do so. thank ou. . ., , ., thank you. that was the statement from the chancellor. _ thank you. that was the statement from the chancellor. let's - thank you. that was the statement from the chancellor. let's bring - thank you. that was the statement from the chancellor. let's bring inl from the chancellor. let's bring in our chief critical correspondence. the word he used again and again was turbidity. —— political. but this is an absolute bombshell —— stability. the mini budget in itself was dramatic in terms of what it was offering but to pull it back so soon after is quite extraordinary. the prime minister _ after is quite extraordinary. tie: prime minister and the after is quite extraordinary. ti2 prime minister and the government's ignite vision is dead. the chancellor has rated up on television and told us that he is not accepting any of the things that kwasi kwarteng wanted to do. only two elements of it survive and it seems that the only reason they are surviving is because they are at such an advanced stage. the only things that liz truss wanted to do that her new chancellor is prepared to do is cut national insurance back to do is cut national insurance back to the level it was earlier this year and to reduce stamp duty in

england. everything else has been junked and that is an extraordinary political moment. just as extraordinary as the mini budget was earlier this year. it leaves the economic vision incomplete tatters, it leaves liz truss' credibility highly question. there will be a lot of conservative mps wondering what exactly the prime minister has... is doing now, this afternoon, after all of that was junked. and almost everything thatjeremy hunt could scrap, he hasjust scrapped. income tax, something the government until earlier this year was promising to put down... take—down a penny into years, that is not happening at all under what he has just announced. it has been postponed indefinitely. the energy price plan, the thing that liz truss announced as soon as she got into number ten, the certainty she promised for two years, gone. we have got it for six month but after

that, the chancellor is clear, he is not going to spend the amount of money the last chancellor was. this is a complete junking money the last chancellor was. this is a completejunking of money the last chancellor was. this is a complete junking of what liz truss promised when she came into office. it is a completely new strategy, completely new plan for the government. it is extraordinary. over the last couple of years, we have seen so many extraordinary moments of this has gotta be up there with those jaw dropped as that just completely change the political direction of the government and the question that will be asked over the next few hours in parliament, the next few hours in parliament, the next few hours in parliament, the next few days in parliament, can liz truss survive such an economic humiliation? clearly, the new chancellor thinks her plans were so ridiculous, so expensive and so problematic that he has had to junk them all. the mps will be wondering whether the prime minister will survive this. late whether the prime minister will survive this-— survive this. we will talk more about the _ survive this. we will talk more about the politics _ survive this. we will talk more about the politics of _ survive this. we will talk more about the politics of it - survive this. we will talk more about the politics of it but - survive this. we will talk more | about the politics of it but let's get some reaction from the markets.

jeremy hunt was saying he had special dispensation from the speaker to make that statement because it is about stabilising the markets. the special dispensation was because they will be more announced in the commons later. he was able to make that announcement on camera now. the market reaction? they got more than they were expecting to hear this morning, they got much more than they were expecting at that so—called mini budget, of course, and that threw them into turmoil. today we had more questions answered and they thought they were going to this side of the halloween fiscal plan. government bonds are doing a lot better, bringing down the cost of borrowing for the treasury and people taking out new mortgages. the pound has been doing better and stocks. i have got to say, in more than two decades covering the economy, i have never seen anything like this. the biggest tax cuts in 50 years unveiled just a

few weeks ago and now a climb—down and the burial today of trussonomics. the idea of tax cuts is a centre plank of that vision for growth. there is much more to come. £32 billion worth of savings... that feels like the wrong word but that is the scale of the climb—down. the u—turns on things like corporation tax we have heard this morning, the change to the basic rate of income tax and of course those changes ahead with support for energy bills but there are still questions about exactly how much money the government is going to need to find to actually fund its remaining plans as well and those questions will have to be answered come the 31st of october and that is why we heard the chancellor saying that there are more difficult decisions ahead. that means that the traders in the market cannot quite afford to switch their computers off and take a breakjust

yet. plenty more to watch out for any days and weeks ahead. itoothed yet. plenty more to watch out for any days and weeks ahead. what he said was what _ any days and weeks ahead. what he said was what has _ any days and weeks ahead. what he said was what has been _ any days and weeks ahead. what he said was what has been announced l said was what has been announced today means that is £32 billion a year that will not need to be borrowed, but there is still a shortfall and as you say, he paved the way for more, as he called them, difficult decisions ahead. absolutely. when we look at those £32 billion mentioned there, that includes some of the previous u—turns we have seen in recent weeks, corporation tax, the decision on scrapping the highest rate of income tax, and if you take all those changes together, the tax changes, it has unwound more than half of what we saw kwasi kwarteng announce a few weeks ago. on top of that, we have a few billion pounds more because of the change in the way that end —— energy support will be engineered. they will have to think more about what happens after april. and those tax changes we have seen and the energy plan are to help

the —— tended to help some of the better off households more and this unwind that. that aspect was being queried and people were asking whether that would really help to get the economy as a whole back to prosperity. this changes some of the parameters there. also not so much money being released into the economy means less pressure on inflation and ultimately, on the bank of england when it comes to raising those interest rates because don't forget over the weekend, there was the admission the government plans unveiled would mean that interest rates would rise further and faster than previously thought. this of course changes their thinking. much to absorb at for the moment, a better day for the markets and not one that we were expecting because don't forget, amongst all of this, the bank of england had ended its temporary support for the bond market. but at present, they are doing much better and that is the result of what they are seeing right now but they are still saying, shall

as the money. we need to see more detail on this two easel those fears. and we are a way off from that. . ~ fears. and we are a way off from that. . ,, , ., , fears. and we are a way off from that. . ,, y., , , fears. and we are a way off from that. . ,, .._ that. thank you. this is politically expensive. _ that. thank you. this is politically expensive. of _ that. thank you. this is politically expensive, of course. _ that. thank you. this is politically expensive, of course. let's - that. thank you. this is politically expensive, of course. let's talk i expensive, of course. let's talk about the politics of it. how do you respond to what you have heard from the chancellor, jeremy hunt? i thought it was remarkable. that was essentially a statement that you won't have... rishi sunak, three, two, it is a complete reversal of all the trussonomics expense we have seen over the next few weeks. tory mps will respond to that saying, why bother having liz truss as prime minister if she is going to deliver the same policies because two she is in office but not in power. it is because of the markets and her own mps and the wider economy. she is not able to deliver the tax cuts and

the progrowth agenda on which she was elected for the blood of mps will be worried her leadership now has no actual point to it. she was the price of conservative members but she really has to now assure mps and members she has a broader agenda that she could take forward. maybe that'll mean the domestic agenda is very much run byjeremy hunt and... sorry, on foreign policy matters, but i think frankly her position looks incredibly perilous. ih but i think frankly her position looks incredibly perilous. in terms thou:h of looks incredibly perilous. in terms though of other _ looks incredibly perilous. in terms though of other policy _ looks incredibly perilous. in terms though of other policy areas, - looks incredibly perilous. in terms though of other policy areas, one | looks incredibly perilous. in terms i though of other policy areas, one of the areas that she was wanting to see expanded is fracking and there is already talk about their being dissent within the ranks. we are talking about a party with a 71 seat working majority. it is a huge amount of dissent when we have seen what has happened in terms of the internal pressures within the party and the unhappiness about what has been offered.

and the unhappiness about what has been offered-— been offered. yes, i would be incredible _ been offered. yes, i would be incredible surprised _ been offered. yes, i would be incredible surprised if - been offered. yes, i would be incredible surprised if we - been offered. yes, i would be incredible surprised if we see| been offered. yes, i would be . incredible surprised if we see any fracking happening because the local opposition to it is so strong that when liz truss talked about it, she had to promise that local people would be able to voice their opposition. that would kill most plan stone dead. i think frankly there is so much on the parliamentary agenda already that any attempt to push through the wider supply—side agenda touches are promised a going to be dead in the water. she has an incredibly large effort now to try and overhaul the deficit amongst mps, to actually win back the confidence from them to actually try and achieve anything at all. remember, as we tracked on conservative home, once it was clear she was going to win the contest that the majority of mps chose to come out and back her. she was never actually the choice of tory mps during the contest itself. that was

again rishi sunak. she has already started from a position where mps did not show a huge amount of confidence in her and her actions over the last few weeks have done more and more to undermine that confidence was frankly, she is stuck between a rock and an economic hard place. d0 between a rock and an economic hard lace. , ., between a rock and an economic hard lace. ~' between a rock and an economic hard lace. 4' ,., , place. do you think there is anyway that she can _ place. do you think there is anyway that she can survive? _ place. do you think there is anyway that she can survive? i _ place. do you think there is anyway that she can survive? i think - place. do you think there is anyway that she can survive? i think she i that she can survive? i think she certainly needs _ that she can survive? i think she certainly needs to _ that she can survive? i think she certainly needs to reach - that she can survive? i think she certainly needs to reach out - that she can survive? i think she certainly needs to reach out to i that she can survive? i think she - certainly needs to reach out to mps, show them that she has learnt the lessons of the last few weeks, but at the same time i think she has to prove there is a point to her government she needs a cabinet reshuffle and bring in more of her opponents and critics and find some way to relaunch her leadership but frankly, a lot of mps are going to be wondering what is the point of a liz truss government and i think sadly, her core agenda, the agenda on which she was elected, has now

fully gone. a lot of mps already sceptical of her will say today to colleagues, i told you so. the major benefit her leadership as it is so difficult to get tory mps to agree on somebody to replace her, hence why the removal of borisjohnson was so chaotic. why the removal of boris johnson was so chaotic. ~ . ., , ,, so chaotic. what i was thinking was. . . so chaotic. what i was thinking was- -- even — so chaotic. what i was thinking was... even within _ so chaotic. what i was thinking was... even within the - so chaotic. what i was thinking was... even within the party, i so chaotic. what i was thinking j was... even within the party, if enough can be... that they can be unity behind her, what has been delivered in terms of our mission to critical opponents is incalculable? —— political opponents. labour are so far ahead —— political opponents. labour are so farahead in —— political opponents. labour are so far ahead in the polls, there is a suggestion the next election is going to resemble what happened in 1997 with the tony blair landslide. i think the thing that tory mps

agreed to be thinking about is the 1993 election in canada where the conserved party was reduced to two mps, the complete collapse that wiped it out as a critical force. mps are wondering if that is going to happen to them. —— political force. incalculable damage has been done to the party reputation. only three years ago, it won that almost landslide majority and it has managed to lose so much political capital and make itself look like a bunch of idiots, frankly. the last few years have been so changeable that whatever the

political resurrection of liz truss orfor political resurrection of liz truss or for any of the other potential candidates currently being touted around s w one, the tory party, as remarkable as it is, will not be able to claw back victory from the jaws of defeat. in 2019 it came fifth in the european elections in six months later got a stonking majority under borisjohnson, so as dire as things may seem right now, if anything in my brief career in politics has taught me anything, is there is always a way for the tory party to come back.— there is always a way for the tory party to come back. thank you very much, party to come back. thank you very much. william _ party to come back. thank you very much, william atkinson, _ party to come back. thank you very much, william atkinson, assistantl much, william atkinson, assistant editor of a former conservative from a home. let's hear again that statement and is byjeremy hunt the chancellor a short while ago. good morninu. chancellor a short while ago. good morning- a — chancellor a short while ago. good morning. a central— chancellor a short while ago. (limp. morning. a central responsibility for any government is to do what is necessary for economic stability. this is vital for businesses making long—term investment decisions, and

forfamilies long—term investment decisions, and for families concerned about their jobs, their mortgages and the cost of living. no government can control markets, but every government can give certainty about the sustainability of public finances. and that is one of the many factors that influence how markets behave. for that reason, although the prime minister and i for that reason, although the prime ministerand i are for that reason, although the prime minister and i are both committed to cutting corporation tax, on friday she listened to concerns about the mini budget and confirmed we will not proceed with the cut to the corporation tax and outs. the government today has decided to make further changes to the mini budget and to reduce unhelpful speculation about what they are, we have decided to announce these ahead of the medium term fiscal plan, which happens in two weeks. i will give a detailed statement to parliament this afternoon and answer questions

from mps, but because these decisions are market sensitive i have agreed with the speaker the need to give an early, brief summary of the changes which are all designed to provide confidence and stability. firstly, we will reverse almost all the tax measures announced in the growth plan three weeks ago that have not started parliamentary legislation. whilst we will continue with the abolition of the health and social care levy and stamp duty changes, we will no longer be proceeding with the cuts to dividend tax rates, the reversal of off payroll working reforms introduced in 2017 and 2021, the new vat free shopping scheme or the freeze on alcohol duty rates. secondly, the government's current plan is to cut the basic rate of income tax to 19% from april 2023. it is a deeply held conservative

value, a value that i share, that people should keep more of the money that they earn. but at a time when markets are rightly demanding a commitment to sustainable public finances it is not right to borrow to fund this tax cut. so i have decided that the basic rate of income tax will remain at 20% and it will do so indefinitely until economic circumstances allow for it to be cut. taken together with the decision not to cut corporation tax and restoring the top rate of income tax, the measures i have announced today will raise every year around £32 billion. finally, the biggest single expense in the growth plan was the energy price guarantee. this is a landmark policy supporting millions of people through a

difficult winter, and today i want to confirm that the support we are providing between now and april next year will not change. but beyond that the prime minister and i have agreed it would not be responsible to continue exposing public finances to continue exposing public finances to unlimited volatility in international gas prices. so i am announcing today a treasury led review into how we support energy bills beyond april next year. the objective is to design a new approach that will cost the taxpayer significantly less than planned, whilst ensuring enough support for those in need. and support for businesses will be targeted those most affected and the new approach will better incentivise energy efficiency. the most important objective for our country right now is stability. governments cannot eliminate volatility in the markets,

but they can play their part and we will do so because instability affects the prices of things in shops, the cost of mortgages and the values of pensions. there will be more difficult decisions, i am afraid, on both tax and spending as we deliver our commitment to get debt falling as a share of the economy over the medium term. all departments will need to redouble their efforts to find savings and some areas of spending will need to be cut. but, as i promised at the weekend, our priority in making the difficult decisions that lie ahead will always be the most vulnerable. i remain extremely confident about the uk's long—term, economic prospects as we deliver our mission to go for growth. but growth requires confidence and stability and the united kingdom will always pay its way. this government will

therefore take whatever tough decisions are necessary to do so. thank you. decisions are necessary to do so. thank yon-— thank you. jeremy hunt, the chancellor. _ thank you. jeremy hunt, the chancellor. let's _ thank you. jeremy hunt, the chancellor. let's bring - thank you. jeremy hunt, the chancellor. let's bring in - thank you. jeremy hunt, the chancellor. let's bring in ourj chancellor. let's bring in our business correspondence —— heaney david. so, stability, stability, stability, is that the new growth, growth, growth mantra? you stability, is that the new growth, growth, growth mantra? you may well ask. one of growth, growth mantra? you may well ask- one of the _ growth, growth mantra? you may well ask. one of the jobs _ growth, growth mantra? you may well ask. one of the jobs in _ growth, growth mantra? you may well ask. one of the jobs in the _ growth, growth mantra? you may well ask. one of the jobs in the person - ask. one of thejobs in the person in number 11 ask. one of thejobs in the person in number11 is ask. one of thejobs in the person in number 11 is notjust to grow our prosperity, but to keep the financial markets reassured and that should always be the mantra. but in over two decades of covering the economy i have never experienced a day like today, the fact we have seen such a massive reversal, not just a numbers terms, but of a strategy that was outlined just a few weeks ago. we know it was a strategy the markets were not comfortable with and we can see the instant reaction and the bond markets which determine the cost of government borrowing and household borrowing recovering somewhat, we can see the pound regaining some

ground as well against the dollar, so all of those factors point to a market which is reassured on many fronts. but this is not done and dusted by any means. we know the chancellor has more to unveil on the 3lst chancellor has more to unveil on the 31st of october and we had a hint there that spending could be under there that spending could be under the spotlight and there could be some tough decisions because even with the kind of u—turns we have seen, the kind of savings on the original plan, over £30 billion, there is likely still to have to be extra money the government needs to find. that is the kind of money you cannot find down the back of sofas, it is more than efficiency savings. when we hear that word difficult decisions, don't think it means we have escaped austerity. many departments are already facing that because of the higher cost of living and there will be tough times ahead to make those sums add up. thahk to make those sums add up. thank ou. with to make those sums add up. thank you with me _ to make those sums add up. thank you with me is — to make those sums add up. thank you. with me is the _ to make those sums add up. thank you. with me is the labour - to make those sums add up. thank you. with me is the labour shadow chief secretary to the treasury, pat mcfadden. you are very critical about the level of unfunded tax cuts

that had been announced, so do you know support this reversal? this has been a complete _ know support this reversal? this has been a complete humiliation - know support this reversal? this has been a complete humiliation for- know support this reversal? this has been a complete humiliation for the| been a complete humiliation for the prime minister. the platform upon which she fought and won the conservative leadership election has caused economic chaos for three weeks, repeated interventions on behalf of the bank of england and driven up mortgage rates. the damage has now been done. she is in an impossible position, where the survival of the government is dependent on publicly torching everything that she believes. so todayis everything that she believes. so today is a humiliation for her, it is a humiliation for the government and the fear it must be that the damage that has been done will leave the country paying a continued tory instability premier and people are paying a tory premium on their mortgages for some time to come. what we have seen is the market is responding well to what has been announced this morning by the chancellor. as you are saying, this

is politically expensive and we have never seen the light of this before. but if the markets settle and if the country gets back on a more stable economic footing, does that leave everything else behind? the people who caused the _ everything else behind? the people who caused the instability, - everything else behind? the people who caused the instability, the - who caused the instability, the people who caused the chaos, the people who caused the chaos, the people who caused the chaos, the people who put ideology before the economic well—being of the country cannot be the people to fix this. over the weekend we had the former deputy governor of the bank of england saying that in the past the uk had been compared economically to the united states and germany, but internationally was now closer to greece and italy. when you are having to watch the gilt yields by the hour that is testimony to the instability that you caused. in addition, we had a current governor of the bank of england saying that interest rates would now have to go

up interest rates would now have to go up more than was previously expected before the mini budget. the country will pay a lasting price for putting us through this ideological experiment and will pay a lasting price through economic instability and rising mortgage rates for some time to come. in and rising mortgage rates for some time to come-— time to come. in terms of the olitical time to come. in terms of the political gap _ time to come. in terms of the political gap now _ time to come. in terms of the political gap now between - time to come. in terms of the . political gap now between labour time to come. in terms of the - political gap now between labour and the tories, it has shrunk, hasn't it? what was announced before meant there was very clear blue water between what liz truss and kwasi kwarteng were saying, they said the route that they would take the country down and what labour was saying. it seems that they have pulled back on this you are not that far apart. pulled back on this you are not that far a art. . pulled back on this you are not that far aart. . .,, pulled back on this you are not that far aart. , .,, ., pulled back on this you are not that faraart. , .,, ., , ,. far apart. this has gone beyond individual measures. _ far apart. this has gone beyond individual measures. it - far apart. this has gone beyond individual measures. it was - far apart. this has gone beyond i individual measures. it was never really about any single, individual measure or individual tax decision. it was about a whole approach and that approach was at a time when

interest rates and inflation were already rising to throw petrol on the fire through large—scale, unfunded tax cuts. doing that has undermined trust in the uk economy, it has forced up mortgage rates, and the people who did that cannot be the people who did that cannot be the people who did that cannot be the people to fix it. this is about more than just reversing some individual policies. when credibility has been destroyed you cannot regain itjust by screeching u—turn. cannot regain it 'ust by screeching u-turn. ~ ., , ., ., u-turn. when it all boils down to, and obviously _ u-turn. when it all boils down to, and obviously the _ u-turn. when it all boils down to, and obviously the question - u-turn. when it all boils down to, and obviously the question of- and obviously the question of credibility and trust is a choice that voters may, but when it comes down to what will be presented to voters in terms of policy, there is now not very much difference between the tories and the labour party. the criticism that liz truss was levelling was that taxation was at its highest level for 70 years, wanted to cut that and presumably

also at a later stage talk about cutting spending, but now the trajectory will continue with the high level of taxation and public spending to an extent, but i guess that will be the area where there will be a differential?— will be a differential? credibility and trust are _ will be a differential? credibility and trust are questions - will be a differential? credibility and trust are questions for- will be a differential? credibility i and trust are questions for voters, but they are not just questions for voters as we have seen in recent weeks. there are questions about the ability to invest in the uk economy and the damage the government has done... , ., , and the damage the government has done," , ., , , and the damage the government has done... , ., , , ., done... sorry to interrupt, but what would ou done. .. sorry to interrupt, but what would you offer— done... sorry to interrupt, but what would you offer differently - done... sorry to interrupt, but what would you offer differently in - would you offer differently in economic terms that would make a labour government more investable? there are three principles that would lie behind labour budget making. i have to say we now think it is likely that if there was a change of government because of the damage of recent weeks, we would inherit a worse situation than would have been the case. those three principles behind what we would do

are, first of all, restore economic stability because we have learned in the last three weeks that when you put ideology above economics everybody pays the price. secondly, respect the economic institutions that have safeguarded our credibility instead of treating them with a contemptuous, cavalier way that the government has, by those in the obr, the treasury itself and the bank of england. thirdly and importantly, we cannot make the most vulnerable in the country, and people working hard to make ends meet, pay the economic price for the conservative party was my ideological mistakes. just conservative party was my ideological mistakes. conservative party was my ideoloical mistakes. , ., ideological mistakes. just on those, the first two. _ ideological mistakes. just on those, the first two, the _ ideological mistakes. just on those, the first two, the economic - the first two, the economic stability, that is now very clearly the mantra of the new chancellor. where did the instability come from? who caused the chaos? you cannot simply give us a fourth tory chancellor in four months and say this guy is the answer to what all the others did. it is not credible as a proposition. let me put this in

terms of where the prime minister is. at the next election which policy does she support? the one that she believes in that she won the conservative party leadership election on? or the one that is dependent on torching that? what will she believe? what will she support? the fact that we cannot answer that shows how completely untenable her position now is. you say untenable. _ untenable her position now is. you say untenable, but would you prefer for her to be in position for the next election? i for her to be in position for the next election?— for her to be in position for the next election? i believe in the old football analogy, _ next election? i believe in the old football analogy, you _ next election? i believe in the old football analogy, you can - next election? i believe in the old football analogy, you can only - next election? i believe in the old| football analogy, you can only play the team in front of you. it is up to the tory party who they have, but they have now got a prime minister whose credibility and authority are completely shot.— whose credibility and authority are comletel shot. . ,, , ., , . completely shot. thank you very much indeed. completely shot. thank you very much indeed- let's — completely shot. thank you very much indeed. let's speak _ completely shot. thank you very much indeed. let's speak to _ completely shot. thank you very much indeed. let's speak to a _ completely shot. thank you very much indeed. let's speak to a financial - indeed. let's speak to a financial commentator and broadcaster from hargreaves lansdown. susanna, tell us how the markets are reacting now. what has been really interesting is that actually with the expectations

there would be a much bigger rollback of these plans, tax cuts, the pound had been rising up to above 1.13, but in the last few minutes it has dipped back below that. this fresh balance of volatility hitting stirling a little. ithink volatility hitting stirling a little. i think actually the scale of this rollback has taken the markets by surprise to some extent. certainly there's a limit to the freezing of bills. on one hand it will reassure the bond markets, that was completely out of control, that until you saw a u—turn on ten year gilts below 4%, so reassurance there, but i think there will be concerns again rearing up about the cost of living crisis and the impact this will have on the fact that there is this limit to how long energy bills will be frozen for on people's resilience, on people's

financial resilience, just how much they will be able to spend and potentially what impact this will have on economic growth in the uk. so much to digas, it is often difficult to know exactly why markets move as they do, but we have seen the pound dipped back a little bit, although it has risen compared to friday afternoon. —— so much to digester. ih to friday afternoon. -- so much to diaester. . to friday afternoon. -- so much to diaester. , ., , , ., digester. in terms of the push and ull digester. in terms of the push and pull between _ digester. in terms of the push and pull between the _ digester. in terms of the push and pull between the bank _ digester. in terms of the push and pull between the bank of - digester. in terms of the push and pull between the bank of england | digester. in terms of the push and . pull between the bank of england and its remit to keep inflation in check at 2% where it is currently at 9%, and what was happening in terms of government policy, putting money into the economy and potentially stoking inflation, that is now history, they are pulling in the same direction?— history, they are pulling in the same direction? that tug of war between the — same direction? that tug of war between the government - same direction? that tug of war between the government and i same direction? that tug of war. between the government and the same direction? that tug of war - between the government and the bank of england has been abandoned by all of england has been abandoned by all of these moves today and we did have an indication of that over the weekend with the governor of the bank of england saying he had a meeting of minds withjeremy hunt

over the weekend. jeremy hunt fully understands the real aim of the bank of england to try and put a lid on inflation. because actually many of these policies lead to inflation and it means people have less money to spend and if there is a reversal of tax cuts and a freeze in energy bills, stopping sooner rather than later, it will mean that people may struggle more, but that will bring down demand in the economy which is what the bank of england wants to see, and it is really painful. but it really thinks we should go through this more painful period to bring inflation down, which it considers to be the greater evil. if you allow it to spiral up further, that means interest rates would have to go even higher than they are currently forecast to do. it could be that because of these policies those super high interest rates that the markets had factored in last week may not actually come to fruition. the bank of england is

still forecasting to be pushing up interest rates in the next few meetings, but they might not now reach levels that were forecast last week, which had an impact on the mortgage market. if the economy does slow down further, will have a deflationary effect. it is nonetheless going to be a pretty tough few months for so many home owners, consumers and businesses, but financial stability does appear to be returning to some extent with those uk government borrowing costs coming down. those uk government borrowing costs coming down-— coming down. thank you very much. with me now— coming down. thank you very much. with me now is _ coming down. thank you very much. with me now is the _ coming down. thank you very much. with me now is the snp's _ coming down. thank you very much. with me now is the snp's treasury i with me now is the snp's treasury spokesperson alison fearless. welcome. we were just hearing about the markets are stabilising. it is very early moments in the aftermath of what we have heard and we still have more to come from the chancellor, but do you agree with the changes that are now being announced? the the changes that are now being announced?— the changes that are now being announced? ., . ., , ., announced? the chancellor proposed hue, announced? the chancellor proposed

huge. massive _ announced? the chancellor proposed huge, massive unfunded _ announced? the chancellor proposed huge, massive unfunded tax - announced? the chancellor proposed huge, massive unfunded tax cuts - announced? the chancellor proposed huge, massive unfunded tax cuts for| huge, massive unfunded tax cuts for the very wealthy in the first place and we could never support them in the first place. what you have to question what has been the point of all of this? we have had 24 days since the mini budget and almost all of that is now scrapped, but huge economic pain are lumped onto people across these islands, including people who have mortgages who will now be paying higher rates as a result of what the chancellor has done. tats result of what the chancellor has done. �* , , ., result of what the chancellor has done. a result of what the chancellor has done. , ., done. as you say, it has been a three-week _ done. as you say, it has been a three-week period _ done. as you say, it has been a three-week period since - done. as you say, it has been a three-week period since the i three—week period since the announcements that were a huge surprise in themselves, but changing direction so soon after, while it is politically extremely difficult is it the economically right thing to do and also limiting the damage? taste do and also limiting the damage? we will do and also limiting the damage? 2 will wait to see what the chancellor says to parliament this afternoon. what we are extremely worried about is what he's talking about in regards to tightening the purse strings austerity stop we have

already had 12 of tory austerity and services are being told to cut and people up and down the silos are really worrying about what that means for them. for their really worrying about what that means forthem. fortheirjobs, means for them. for theirjobs, their futures means forthem. fortheirjobs, theirfutures and the means forthem. fortheirjobs, their futures and the services available. their futures and the services available-— their futures and the services available. ~ . , available. we have seen political ”ivotin available. we have seen political pivoting all— available. we have seen political pivoting all over _ available. we have seen political pivoting all over the _ available. we have seen political pivoting all over the place i available. we have seen political pivoting all over the place and i available. we have seen politicali pivoting all over the place and the tory party very clearly have gone from that decision to cut taxes and try to propel growth going forward. in terms of how the snp at no pivot, what will your approach be if it is a return to the austerity that we saw, the likely which we saw under george osborne? our saw, the likely which we saw under george osborne?— saw, the likely which we saw under george osborne? our position has not chanted, george osborne? our position has not changed. we — george osborne? our position has not changed, we opposed _ george osborne? our position has not changed, we opposed tory _ george osborne? our position has not changed, we opposed tory austerity. i changed, we opposed tory austerity. we look at this in scotland with a real sense of horror and asia viewed that we have seen all this before and it is something scotland has not voted for. scotland did not choose and austerity obsessed, uk tory

government and we see the option of an independent scotland where we could have a fair taxation system and public services the likes of which the nordic countries have. flat which the nordic countries have. not everything can be laid at the door of number ten because the background to this has been a high inflation, the cost of living crisis and the roots of that go back what has been happening in ukraine, back to covid, they go beyond this, this kind of concentrated market reaction, but interest rates were inevitably going to go up anyway? we interest rates were inevitably going to go up anyway?— interest rates were inevitably going to go up anyway? we took evidence from a chief — to go up anyway? we took evidence from a chief economist _ to go up anyway? we took evidence from a chief economist from i to go up anyway? we took evidence i from a chief economist from deutsche bank last week, not one of the anti—grow coalition, and he said they were particular british circumstances that were making this worse in the uk and the overhanging factor of all this is brexit because the uk government has caused this

harm upon the people of these islands and everything they do now islands and everything they do now is try to overturn the decisions they have already made. it is absolute chaos and people are paying the price both for the decisions of the price both for the decisions of the tories to go into the hardest possible brexit and for the chaos that has been caused over the past couple of weeks with the mini budget and the unwinding of that. thahk couple of weeks with the mini budget and the unwinding of that.— and the unwinding of that. thank you very much- — and the unwinding of that. thank you very much- joining — and the unwinding of that. thank you very much. joining me _ and the unwinding of that. thank you very much. joining me now— and the unwinding of that. thank you very much. joining me now is - and the unwinding of that. thank you very much. joining me now is a i very much. joining me now is a senior research economist at the institute for fiscal studies. welcome, thank you. what is your reaction to the chancellor's statement? of course there is more to come. i statement? of course there is more to come. ~ . . statement? of course there is more to come. ~ , , ., .., to come. i think this is a welcome attem -t to come. i think this is a welcome attempt by _ to come. i think this is a welcome attempt by the — to come. i think this is a welcome attempt by the chancellor - to come. i think this is a welcome attempt by the chancellor to i to come. i think this is a welcome attempt by the chancellor to plug | attempt by the chancellor to plug some of the gaps in the government's fiscal plan, but also to plug some of the credibility gap that has emerged in recent weeks. these are big steps, the treasury is saying £32 billion of tax rises are

cancelled, that is a big fiscal eventin cancelled, that is a big fiscal event in its own right. it is a sign of the mess we are in, if you like, that it of the mess we are in, if you like, thatitis of the mess we are in, if you like, that it is only the first step and there will be big decisions to take at the end of october, where the sad reality of the unfortunate statement from the economy is the chancellor might still have more to do in the form of future tax rises or some cuts to spending potentially. it is an important first step, but i don't think this is the end of the saga. so an important first step on the route back to stability? what does the road start to look like? i route back to stability? what does the road start to look like?- the road start to look like? i think the road start to look like? i think the specifics _ the road start to look like? i think the specifics of _ the road start to look like? i think the specifics of today's _ the specifics of today's announcement are important but perhaps less important than the signal they are sending of an overall change in approach. two examples. one, weeks ago we were hearing about huge amounts of cuts in taxes that would help trigger a

surge in growth and that was the government's number one priority and we now have had a cancellation of the tax cut deviously promised by rishi sunak, so that is a real about turn. if we think about the near—term, previously the government had announced two years of an energy price guarantee for all households and all household qualifying, now we are hearing from april it will be much more targeted, focused on the most vulnerable. that is a complete in approach that signals that the government has listened and is changing policy accordingly. that is the start of acknowledging constraints, listening to expert opinion and recognising that sometimes difficult choices have to be made. 50 sometimes difficult choices have to be made. ., . sometimes difficult choices have to be made. ., , . ., sometimes difficult choices have to i be made— well. be made. so who is in charge? well, the new chancellor _ be made. so who is in charge? well, the new chancellor has _ be made. so who is in charge? well, the new chancellor has taken i be made. so who is in charge? well, the new chancellor has taken some i the new chancellor has taken some very decisive decisions and he has clearly ta ken in very decisive decisions and he has clearly taken in and listen to advice from officials and made bad choices about tax cuts which were going to go ahead. but it is not who

is in charge, it is important to realise that when the government has a big gap between tax and spending, it has to plug that gap by borrowing, so people lending the government money and financial markets and what they make of the government's overall economic and fiscal strategy also matters. it is not to say they are in charge, but you cannotjust ignore all of these factors and plough on regardless. you have to acknowledge there are constraints. it is also about timing. some fiscal policy choices made in recent weeks sits oddly with the predicament we are in. it is more about taking a step back and not throwing caution to the wind and thinking about how we can take careful steps to get out of this mess. . ~' careful steps to get out of this mess. . ~ , ., careful steps to get out of this mess. . ~ ,. . careful steps to get out of this mess. . ~' , ., . ., careful steps to get out of this mess. . ~ , ., 2 ., .., mess. thank you. with me now we can seak to mess. thank you. with me now we can speak to sarah — mess. thank you. with me now we can speak to sarah olney _ mess. thank you. with me now we can speak to sarah olney from _ mess. thank you. with me now we can speak to sarah olney from the - speak to sarah olney from the liberal democrats. it has been quite an extraordinary morning. in terms

of where it lands, reversing the economic announcements there have been, do you agree with the final position? i been, do you agree with the final osition? ., ., ., ._ position? i have got to say the damate position? i have got to say the damage has — position? i have got to say the damage has already _ position? i have got to say the damage has already been i position? i have got to say the i damage has already been done. thousands of people are already facing hundreds of pounds extra on their mortgage payments, pensioners will be worried about their pensions, and now we are hearing there are potentially going to be cuts to public services, which will leave many more people concerned about what that means for them. so, you know, frankly it is this conservative government and the choices they have made that have already created so much damage another course will be borne by ordinary families and pensioners. we are in a terrible place. in ordinary families and pensioners. we are in a terrible place.— are in a terrible place. in terms of where the — are in a terrible place. in terms of where the liberal _ are in a terrible place. in terms of where the liberal democrats i are in a terrible place. in terms of where the liberal democrats are i where the liberal democrats are going forward and where the fight is for you, you mentioned public spending. it has been absolutely clear how difficult the economic picture is, do you fight four where

do you stand on public spending and on further tax rises? ididfhat do you stand on public spending and on further tax rises?— on further tax rises? what we want to see is a — on further tax rises? what we want to see is a general _ on further tax rises? what we want to see is a general election. i on further tax rises? what we want to see is a general election. the i to see is a general election. the absolute priority right now is stability in this country and we don't think that can come from the tories, changing their leader... what would your recipe before stability? exactly that. what will you be telling the voters at that election why they should be voting for you? taste election why they should be voting for ou? ~ . election why they should be voting for ou? ~ , . ., , ., for you? we will be coming up with a manifesto, for you? we will be coming up with a manifesto. a — for you? we will be coming up with a manifesto, a fully _ for you? we will be coming up with a manifesto, a fully costed _ for you? we will be coming up with a manifesto, a fully costed manifesto, | manifesto, a fully costed manifesto, just as our manifestos always are. you don't know currently where you would stand in terms of tax cuts and increases? taste would stand in terms of tax cuts and increases? ~ ., would stand in terms of tax cuts and increases? ~ . , ., , ,, would stand in terms of tax cuts and increases? ~ . , ., ,~' , . increases? we have been asking since last october— increases? we have been asking since last october for _ increases? we have been asking since last october for a _ increases? we have been asking since last october for a windfall _ increases? we have been asking since last october for a windfall tax - increases? we have been asking since last october for a windfall tax on i last october for a windfall tax on gas and oil companies, to tax that excess profits they have been waking. we have been calling for that since last year and we were the first to come out with what is now the energy price guarantee. we were asking for that in the summer. we have come up with so many different

proposals and suggestions and all of those things could have avoided some of the really severe effects we are seeing now. of the really severe effects we are seeing now— seeing now. thank you for “oining us. if ou seeing now. thank you for “oining ifyou fl seeing now. thank you for “oining us. if you are watching i seeing now. thank you for “oining us. if you are watching on i seeing now. thank you forjoining us. if you are watching on bbc. seeing now. thank you forjoining i us. if you are watching on bbc two it is time to say goodbye. thank you for your company. and so what we have had this morning has been that dramatic news from the chancellor, jeremy hunt, who made a brief statement, just five minutes, but five minutes in which he completely unpicked what had been announced by the previous chancellor, kwasi kwarteng, just three weeks ago. that plan only three weeks ago was for growth, growth, growth. it was about tax cuts, it was about looking ahead to how that would be funded in terms of they were unfunded tax cuts and thatis of they were unfunded tax cuts and that is what led to the reaction on the markets and what has now seen this on picking this morning from the chancellorjeremy hunt. he will

be saying a lot more in the commons later when he gets to his feet at 2:30pm. but we have had all of the key information already in those dramatic five minutes from the chancellor this morning. basically pulling back on everything that was previously announced, by the announcement on the cut in national insurance and also stamp duty, and thatis insurance and also stamp duty, and that is because effectively they were already in the process. let's join daily politics. the new chancellor makes an emergency statement and checks out nearly all of liz truss' tax—cutting plans.

with me today, conservative mp andrew bowley, jonathan reynolds of the labour party. today, tax cuts are out, as the new chancellor performs perhaps the biggest u—turn in august —— british comic history. we will reverse almost all the tax measures announced three weeks ago. jeremy hunt also says the massive energy support package jeremy hunt also says the massive energy support package will jeremy hunt also says the massive energy support package will be scaled back. energy support package will be scaled back-— energy support package will be scaled back. there will be more difficult decisions _ scaled back. there will be more difficult decisions i'm _ scaled back. there will be more difficult decisions i'm afraid i scaled back. there will be more difficult decisions i'm afraid on | difficult decisions i'm afraid on both tax and spending. taste difficult decisions i'm afraid on both tax and spending. we will speak to money saving _ both tax and spending. we will speak to money saving expert _ both tax and spending. we will speak to money saving expert martin i both tax and spending. we will speak to money saving expert martin lewis| to money saving expert martin lewis about what this might mean for our bills. the tax—cutting agenda lies in tatters. some tory mps are calling for liz truss to go. if your confidence _ calling for liz truss to go. if your confidence levels _ calling for liz truss to go. if your confidence levels are _ calling for liz truss to go. if your confidence levels are in - calling for liz truss to go. if your confidence levels are in single i confidence levels are in single figures as a prime minister, the position is frankly irretrievable.

welcome to the programme. and welcome to viewers on the bbc news channel. the new chancellor, jeremy hunt, has reversed pretty well all the tax—cutting measures announced by kwasi kwarteng, his predecessor, in the mini budget around three weeks ago. he will be addressing mps in the commons at around 330 this afternoon. let's listen to what he said. . , afternoon. let's listen to what he said. , , , said. firstly, we will reverse almost all — said. firstly, we will reverse almost all the _ said. firstly, we will reverse almost all the tax _ said. firstly, we will reverse almost all the tax measures| almost all the tax measures announced in the growth plan three weeks ago that have not started parliamentary legislation. whilst we will continue with the abolition of the health and levy and stamp duty changes, we will no longer be proceeding with the cuts to dividend tax rates, the reversal of payroll working reforms introduced in 2017

and 2021, the new vat free shopping scheme for non—uk visitors, and the freeze in alcohol duty rates. secondly, the government current plan is to cut the basic rate of income tax to 19% from april 2023. it is a deeply held conservative value, a value that i share, that people should keep more of the money that they earn. but at a time when markets are rightly demanding commitment to sustainable public finances, it is not right to borrow to fund this tax cut. i have decided that the basic rate of income tax will remain at 20% and it will do so indefinitely until economic circumstances indefinitely until economic ci rcu msta nces allow indefinitely until economic circumstances allow for it to be cut. taken together with the decision not to cut corporation tax and restoring the top rate of income tax, the measures i have announced

today will raise every year around £32 billion. the biggest single expense in the growth plan was the energy price guarantee. this is a landmark policy supporting millions of people through a difficult winter and today, i want to confirm that the support we are providing between now and april next year will not change. but beyond that, the prime minister and i have agreed it would not be responsible to continue exposing public finances to unlimited volatility in international gas prices. i am announcing today a treasury led review into how we support energy bills beyond april next year. the objective is to design a new approach that will cost the taxpayer significantly less than planned whilst ensuring enough support for those in need. any support or businesses will be targeted to those

most affected and the new approach will better incentivise energy efficiency. the most important objective our country right now is stability. governments cannot eliminate volatility in markets but they can play their part and we will do so because instability affects the prices of things in shops, the cost of mortgages and the values of pensions. there will be more difficult decisions i'm afraid on both tax and spending, as we deliver our movement to get debt falling as a share of the economy over the medium—term. all departments will need to redouble their efforts to find savings and some areas of spending money to be cut. but as i promised at the weekend, our priority is making the difficult decisions that lie ahead and that will be the most vulnerable. i

remain a creamy confident about the uk's long—term economic prospects —— extremely confident. as we deliver our mission to go for growth. growth requires confidence and stability for the united kingdom will always pay sway. this government will therefore take whatever path decisions are necessary to do so. jeremy hunt, the chancellor, with a pretty dramatic statement. let's get reaction from the bbc economics editor faisal islam. a three weeks ago you were sitting in the studio with me as kwasi kwarteng unveiled his mini budget. pretty much all of those tax—cutting measures are undone. those tax-cutting measures are undone. �* ., those tax-cutting measures are undone. , ., ., , ., undone. both brutal and staggering to hear that — undone. both brutal and staggering to hear that statement. _ undone. both brutal and staggering to hear that statement. we - undone. both brutal and staggering to hear that statement. we use i undone. both brutal and staggering to hear that statement. we use the terminology u—turn all the time, we are going to have to come up with a

new taxonomy. i came up with a jet plane using a handbrake turn, which is properly not good. when you combine the two numbers, in rough terms, in three weeks and three days, no precedent for that i can see which is why i am saying it is the biggest u—turn in economic history in britain. i had my ipad and we were watching the markets going down with a raised eyebrow. i was trying to flash the ipad on screen, i'm going to do that now. this is called the balanced scorecard. it lists all the measures and their costings. it is basically, thatis and their costings. it is basically, that is kept, gone, gone, gone. that is kept. gone, gone, gone, gone, gone. extraordinary stuff. they had

never seen anything like that. the reason why we have had to do this, we had a dramatic announcement in the morning they were going to do something like this, i did not expect it to be quite so extensive, is because of their need to regain that market credibility that are probablyjeremy hunt does manage to regain market credibility, probably what we have seen in the markets and borrowing and currency. the political credibility, whether we can push this through is another thing. it is really important, it is notjust a reversal of many budgets policies, there is also the 19p cut to income tax which was legislated for in over a year's time, that was factored in. that is notjust reversed in the mini budget, it is reversed in the mini budget, it is reversed in the mini budget, it is reversed in years going forward. the basic rate of tax will be higher

than the plans she inherited by 1p into the future, that is the cost of the chaos we have seen over the past three weeks and three days. let’s the chaos we have seen over the past three weeks and three days.— three weeks and three days. let's go back to the market _ three weeks and three days. let's go back to the market response. i three weeks and three days. let's go back to the market response. that i back to the market response. that was the key driving force in terms ofjeremy hunt wanting to as he said himself, restore some sort of stability. has it had the desired effect? just flesh it out to us in terms of the cost of government borrowing, the pound versus the dollar, what has been the instant reaction? , , ., , dollar, what has been the instant reaction? , , . , ., , dollar, what has been the instant reaction? , , reaction? pretty stable. it has come down over the _ reaction? pretty stable. it has come down over the course _ reaction? pretty stable. it has come down over the course of— reaction? pretty stable. it has come down over the course of the - reaction? pretty stable. it has come down over the course of the day. i down over the course of the day. borrowing rates were going up in the studio. what they were worried about is it that spiral up today. the bank of england was withdrawing its parachute of support, which has been in place for about two weeks. it was taking that away. it was down to how convince the markets were in the

policy of the government where these numbers went today. they have come down. they are still higher than they were. there is still a chaos factor in our borrowing numbers. that does notjust factor in our borrowing numbers. that does not just affect factor in our borrowing numbers. that does notjust affect borrowing numbers or government, it filters through, if it is two a year or five year borrowing, it filters through into mortgage rates and business lending. it is going in the right direction and they will take that. in terms of the control of the chancellor of the markets, it has got their attention. he has their attention and they are listening to him. it is over to you guys to assess the mood over there. i think he has got the economic credibility measures through to the markets. it does not mean damage done over the past few weeks has been solved, it

has not article. now he needs to show he can get it through. i was atoin to show he can get it through. i was going to say. _ show he can get it through. i was going to say. let's _ show he can get it through. i was going to say, let's talk— show he can get it through. i was going to say, let's talk about i show he can get it through. i was going to say, let's talk about the energy price guarantee. the government made an awful lot of the fact that was the biggest part of the mini budget. as it happens, we pretty well knew about that in the days before the mini budget, to some extent it was priced in. it looks as though there were going to be changes in terms of scale and length of time of the energy price guarantee. that is going to be extremely important to households. let's concentrate on households for the moment. it was only can it go up to april anyway and then the review. —— going to go up. the to april anyway and then the review. -- going to go up— -- going to go up. the uk's entire borrowing — -- going to go up. the uk's entire borrowing numbers _ -- going to go up. the uk's entire borrowing numbers were - -- going to go up. the uk's entire borrowing numbers were now i borrowing numbers were now inextricably connected to the wholesale price of gas because it was an open—ended commitment made over a couple of years. what he has done strategically is break the

link, saying it it would only last till april. link, saying it it would only last tillapril. it link, saying it it would only last till april. it is important that viewers know the policy announced stays overwinter. it will be reviewed. come april, without any support, the famous £2500 bill would be £4000. we are not saying that people will face all of that. we do not know. there was another interesting line from jeremy hunt saying he wanted to incentivise energy efficiency. we have seen schemes in germany where they provide subsidised energy, say 80%, 90% of your bill, and the rest is the full price. it provides a massive incentive for energy efficiency. it might be they are looking at that. we do not know how targeted it will be. it cuts the market perception link between the price of uk government borrowing and a wholesale gas prices over which we have no control and is determined by

vladimir putin's latest geopolitical fantasies. . ~ vladimir putin's latest geopolitical fantasies. ., ,, , ., vladimir putin's latest geopolitical fantasies. . ~' , ., , . vladimir putin's latest geopolitical fantasies. ., ,, , . ., fantasies. thank you very much for that. trussenomics _ fantasies. thank you very much for that. trussenomics is _ fantasies. thank you very much for that. trussenomics is dead, i fantasies. thank you very much for that. trussenomics is dead, as i fantasies. thank you very much for that. trussenomics is dead, as is i that. trussenomics is dead, as is the growth plan. the only tax—cutting measure that is going through is going through because it has already gone through parliament. do you support what he is doing? absolutely. he is clear and correct that what the country, the economy needs more than anything is a period of stability. we now need to give jeremy and the treasury space to develop plans more fully and await for the budget on the 31st of october and take a decision as to where we go from there. it looks like from initial report has done thejob at the like from initial report has done the job at the minute. flat like from initial report has done the job at the minute. not done the 'ob. the job at the minute. not done the “0b. the the job at the minute. not done the job. the government _ the job at the minute. not done the job. the government is _ the job at the minute. not done the job. the government is getting i the job at the minute. not done the job. the government is getting a i

job. the government is getting a hearing, it has not reversed or in any way solved the problem. i said thus far, any way solved the problem. i said thus far. that _ any way solved the problem. i said thus far, that is _ any way solved the problem. i said thus far, that is why _ any way solved the problem. i said thus far, that is why we _ any way solved the problem. i said thus far, that is why we need i any way solved the problem. i said thus far, that is why we need a - thus far, that is why we need a period of calm and stability. we need tojudge them period of calm and stability. we need to judge them budget from there. i need to 'udge them budget from there. . ., , there. i welcome this wholeheartedly. - there. i welcome this wholeheartedly. i- there. i welcome this| wholeheartedly. i had there. i welcome this - wholeheartedly. i had never there. i welcome this _ wholeheartedly. i had never seen a government so out of control, so incompetent, so wilfully causing damage — incompetent, so wilfully causing damage to the national finances and to household finances. i think people — to household finances. i think people do understand this, unfortunately. jeremy hunt has tried to stop _ unfortunately. jeremy hunt has tried to stop the _ unfortunately. jeremy hunt has tried to stop the bleeding but the damage has been _ to stop the bleeding but the damage has been done. mortgages are higher and investment is lower than otherwise would have been. damage has been _ otherwise would have been. damage has been done. i would say to anyone, — has been done. i would say to anyone, no_ has been done. i would say to anyone, no matter their politics, what _ anyone, no matter their politics, what are — anyone, no matter their politics, what are the arguments for liz truss remaining _ what are the arguments for liz truss remaining as prime minister and what are the _ remaining as prime minister and what are the arguments against a general election— are the arguments against a general election so_ are the arguments against a general election so the public can have a say? _

election so the public can have a sa ?, , ., ,, election so the public can have a sa7�* , .,~' election so the public can have a sa7, , .,~ ,, say? jeremy hunt talked about speed abili . his say? jeremy hunt talked about speed ability- his job _ say? jeremy hunt talked about speed ability. his job was _ say? jeremy hunt talked about speed ability. his job was to _ say? jeremy hunt talked about speed ability. his job was to persuade - ability. his job was to persuade people — ability. his job was to persuade pe0pte that _ ability. his job was to persuade pe0pte that the _ ability. his job was to persuade people that the government. ability. his job was to persuade i people that the government could ability. his job was to persuade - people that the government could get the public— people that the government could get the public finances _ people that the government could get the public finances onto _ people that the government could get the public finances onto a _ people that the government could get the public finances onto a stable - the public finances onto a stable footing. — the public finances onto a stable footing. yet _ the public finances onto a stable footing, yet that _ the public finances onto a stable footing, yet that happens - the public finances onto a stable i footing, yet that happens against the backdrop _ footing, yet that happens against the backdrop of _ footing, yet that happens against the backdrop of a _ footing, yet that happens against the backdrop of a government. footing, yet that happens against. the backdrop of a government which is torching _ the backdrop of a government which is torching hour— the backdrop of a government which is lurching hour by— the backdrop of a government which is lurching hour by hour— the backdrop of a government which is lurching hour by hour through - the backdrop of a government which is lurching hour by hour through a i is lurching hour by hour through a crisis. _ is lurching hour by hour through a crisis. from — is lurching hour by hour through a crisis, from one _ is lurching hour by hour through a crisis, from one crisis— is lurching hour by hour through a crisis, from one crisis to - is lurching hour by hour through a crisis, from one crisis to the - is lurching hour by hour through a | crisis, from one crisis to the next. the two _ crisis, from one crisis to the next. the two things _ crisis, from one crisis to the next. the two things are _ crisis, from one crisis to the next. the two things are difficult - crisis, from one crisis to the next. the two things are difficult to - the two things are difficult to align, — the two things are difficult to align, the _ the two things are difficult to align, the economic- the two things are difficult to align, the economic attemptl the two things are difficult to - align, the economic attempt with the political— align, the economic attempt with the political reality~ — align, the economic attempt with the political reality. liz _ align, the economic attempt with the political reality. liz truss's _ political reality. liz truss's spokesman _ political reality. liz truss's spokesman has _ political reality. liz truss's spokesman hasjust- political reality. liz truss's spokesman has just told . political reality. liz truss's - spokesman hasjust told reporters she is— spokesman hasjust told reporters she is not— spokesman hasjust told reporters she is not going _ spokesman hasjust told reporters she is not going anywhere, - spokesman hasjust told reporters she is not going anywhere, she i spokesman has just told reportersl she is not going anywhere, she will stay on. _ she is not going anywhere, she will stay on. she — she is not going anywhere, she will stay on. she is— she is not going anywhere, she will stay on, she is in— she is not going anywhere, she will stay on, she is in charge. _ she is not going anywhere, she will stay on, she is in charge. she - she is not going anywhere, she will stay on, she is in charge. she is . stay on, she is in charge. she is meeting — stay on, she is in charge. she is meeting various _ stay on, she is in charge. she is meeting various conservative i stay on, she is in charge. she is . meeting various conservative mps later today — meeting various conservative mps later today before _ meeting various conservative mps later today before gathering - meeting various conservative mps later today before gathering the l later today before gathering the cabinet — later today before gathering the cabinet tonight _ later today before gathering the cabinet tonight in _ later today before gathering the cabinet tonight in downing - later today before gathering the. cabinet tonight in downing street for an— cabinet tonight in downing street for an informal— cabinet tonight in downing street for an informal get—together. - cabinet tonight in downing street| for an informal get—together. she cabinet tonight in downing street. for an informal get—together. she is trying _ for an informal get—together. she is trying to— for an informal get—together. she is trying to shore — for an informal get—together. she is trying to shore up— for an informal get—together. she is trying to shore up her— for an informal get—together. she is trying to shore up her position, - for an informal get—together. she is trying to shore up her position, butl trying to shore up her position, but let's be _ trying to shore up her position, but let's be honest, _ trying to shore up her position, but let's be honest, she _ trying to shore up her position, but let's be honest, she has— trying to shore up her position, butl let's be honest, she has completely lost controt~ — let's be honest, she has completely lost control. jeremy— let's be honest, she has completely lost control. jeremy hunt _ let's be honest, she has completely lost control. jeremy hunt is - let's be honest, she has completely lost control. jeremy hunt is runningj lost control. jeremy hunt is running the government, _ lost control. jeremy hunt is running the government, and _ lost control. jeremy hunt is running the government, and that - lost control. jeremy hunt is running the government, and that to- lost control. jeremy hunt is running the government, and that to me i lost control. jeremy hunt is running i the government, and that to me looks unsustainable — the government, and that to me looks unsustainable. is— the government, and that to me looks unsustainable.— unsustainable. is that how it looked to ou, unsustainable. is that how it looked to you. henry? _ unsustainable. is that how it looked to you. henry? do _ unsustainable. is that how it looked to you, henry? do you _ unsustainable. is that how it looked to you, henry? do you think- unsustainable. is that how it looked to you, henry? do you think what . to you, henry? do you think what jeremy hunt said today as the chancellor, he spent three hours apparently at chequers with liz truss going through what he announced just an hour ago. is it he

who is running the government, not liz truss? it who is running the government, not liz truss? , liz truss? it is him running the economic— liz truss? it is him running the economic policy. _ liz truss? it is him running the economic policy. he's - liz truss? it is him running the economic policy. he's an - liz truss? it is him running the - economic policy. he's an incredibly powerful chancellor, given the circumstances. that is testified to by the fact he has got the growth plan. liz truss is a prisoner in her own government at the moment. economic policy is what she came into do. kwasi kwarteng was a close ally of hers and they worked on the growth plan together, and now it's gone. there's nothing left, so the question is, what is she going to achieve in office? it's not as if she is a great front line communicator. mps won't be thinking, thank goodness we have campaigner liz truss at the helm. without the economic policy, it's difficult to see what you will achieve, so it's a question of when, not if she leaves office before the next election. this discussion is self—indulgent, i think _ this discussion is self—indulgent, i think the — this discussion is self—indulgent, i think. the country needs a period of stability. _ think. the country needs a period of stability, people with calm heads, needs— stability, people with calm heads, needs to — stability, people with calm heads, needs to be cool and collected about

where _ needs to be cool and collected about where we _ needs to be cool and collected about where we go next. for us to change prime _ where we go next. for us to change prime minister as well as changing chancettor— prime minister as well as changing chancellor last week, will signal more _ chancellor last week, will signal more chaos in government. we need a space _ more chaos in government. we need a space to _ more chaos in government. we need a space to reflect on what has hunt. -- on _ space to reflect on what has hunt. -- on what — space to reflect on what has hunt. —— on what has happened. the question— —— on what has happened. the question about what is preventing us going _ question about what is preventing us going for— question about what is preventing us going for a _ question about what is preventing us going for a general election — that would _ going for a general election — that would cause even more instability. it would cause even more instability. it would _ would cause even more instability. it would be — would cause even more instability. it would be six weeks before we could _ it would be six weeks before we could form a government of any kind, so we _ could form a government of any kind, so we need _ could form a government of any kind, so we need to get on with the job in hand _ so we need to get on with the job in hand. mistakes have been made, the government has acknowledged it, jeremy— government has acknowledged it, jeremy hunt is taking action to rectify— jeremy hunt is taking action to rectify those mistakes, and it's up to all— rectify those mistakes, and it's up to all of— rectify those mistakes, and it's up to all of us— rectify those mistakes, and it's up to all of us to calm down, look at where _ to all of us to calm down, look at where we — to all of us to calm down, look at where we are and in the national interest— where we are and in the national interest move this country forward reflecting — interest move this country forward reflecting on what has happened. we will reflecting on what has happened. will come reflecting on what has happened. , will come back to the politics in a moment. let's talk to pauljohnson from the institute for fiscal studies. you would also heal in the studio on the day of the mini budget just over three weeks ago — what did you make ofjeremy hunt's statement

today? he you make of jeremy hunt's statement toda ? . , , you make of jeremy hunt's statement toda ? ., , , ., , today? he has reversed nearly everything _ today? he has reversed nearly everything that _ today? he has reversed nearly everything that has _ today? he has reversed nearly everything that has already . today? he has reversed nearly i everything that has already been today? he has reversed nearly - everything that has already been or was on the way through legislation. he has done that as a down payment on what is clearly a difficult fiscal situation. on what is clearly a difficult fiscalsituation. it on what is clearly a difficult fiscal situation. it would only be that kind of scale of change which was likely to really reassure the markets that it is being taken seriously. simply abandoning the corporation tax cut, for example, which we saw last week, was never going to be enough, so this is a really big change, a complete about turn, but i think one that was broadly speaking inevitable. in broadly speaking inevitable. in terms of spending, the iss also estimated, because we didn't have independent figures from the obr, a £60 billion black hole that would have to be filled, probably through spending cuts. jeremy hunt says the

measures will raise £32 billion. do you see the rest coming from spending cuts?— you see the rest coming from spending cuts? you see the rest coming from sendin: cuts? �* , ., ., spending cuts? there's quite a lot of thins spending cuts? there's quite a lot of things in _ spending cuts? there's quite a lot of things in that. _ spending cuts? there's quite a lot of things in that. from _ spending cuts? there's quite a lot of things in that. from the - spending cuts? there's quite a lot of things in that. from the leaks l of things in that. from the leaks from the obr of the weekend, it sounds like they have come up with very similar numbers, but these are number several years out. given that we are no longer having really big tax cuts, i think that gives the chancellor a bit of time to at least say wait and see rather than pencilling in cuts for four or five years down the road. he said clearly in a statement today that he will look at efficiencies or cuts over the next couple of years. that is going to be quite painful if he does anything at all significant, because spending over the next couple of years looked very tight in any case, in particular because of very high levels of inflation we are facing. there is a really fine judgment here for the chancellor in a way that is straightforward — let bin most of these tax cuts. what he says on spending as a harderjudgment. flan spending as a harder 'udgment. can

we 'ust spending as a harderjudgment. can we just remind viewers, it was only last wednesday, incredibly, at prime minister's questions that the labour leader asked liz truss on precisely this issue. let's have a listen. maybe we can't play thatjust at this issue. let's have a listen. maybe we can't play that just at the moment... during her leadership contest, the prime minister said, and i quote her exactly, "i'm very clear, i'm not planning public spending reductions." is she going to stick to that? prime minister! absolutely. what we are... look, mr speaker, mr speaker... we are spending almost £1 trillion on public spending. we were spending 700 billion back in 2010. what we will make sure is that over the medium—term, the debt is falling. but we will do that not by cutting

public spending but by making sure we spend public money well. so, more efficiencies paul — is that credible? so, more efficiencies paul - is that credible? ,., so, more efficiencies paul - is that credible? , ., . ., so, more efficiencies paul - is that credible? ., , credible? the government can always sa it will credible? the government can always say it will make _ credible? the government can always say it will make less _ credible? the government can always say it will make less money _ say it will make less money available to departments, as it has done over the last many years. it's difficult to do, though. there are tough decisions, really hard ones that have been debated, like not increasing welfare benefits even in line with inflation. if you look at the big public service areas, what are the big areas? the biggest is the nhs - are the big areas? the biggest is the nhs — are we really going to cut it? i don't think so. pensions — the prime minister has already said she will at least raise those in line with prices. then the working age welfare i mention. after that, education. will you cut education if you are really focused on growth? after that, defence. the prime minister wants to increase defence spending by 50%. these are really

hard areas to cut, and we've already had a year in which public sector pay is rising by about 5% on average in the face of io% inflation, so public sector workers already have big pay cuts —— who have had big pay cuts over the last decade are going to get more. you can find things to do but none of it will be in the least easy. if the chancellor takes much out of it, it really will be a return to austerity. in other words, actually cutting the amount of money that goes to public services. paul johnson, thank _ that goes to public services. paul johnson, thank you. _ that goes to public services. paul johnson, thank you. your response to those difficult decisions — where will you have to make those savings and cut? . , , . , and cut? that is why we need jeremy hunt to devektp _ and cut? that is why we need jeremy hunt to develop his _ and cut? that is why we need jeremy hunt to develop his economic- and cut? that is why we need jeremy hunt to develop his economic plan. l hunt to develop his economic plan. as he _ hunt to develop his economic plan. as he said. — hunt to develop his economic plan. as he said, there will be difficult decisions — as he said, there will be difficult decisions to make. i would be against — decisions to make. i would be against not raising benefits in line with inflation. i would be against going _ with inflation. i would be against going against the plans to increase the defence budget, especially at a time of— the defence budget, especially at a time of such turmoil on the european

continent _ time of such turmoil on the european continent. , ., ., , continent. there will be areas... education. _ continent. there will be areas... education, for _ continent. there will be areas... education, for example? - continent. there will be areas... education, for example? we've | continent. there will be areas... - education, for example? we've been in this place — education, for example? we've been in this place before _ education, for example? we've been in this place before and _ education, for example? we've been in this place before and it _ education, for example? we've been in this place before and it is - education, for example? we've been in this place before and it is right - in this place before and it is right thatjeremy is given time and space to do— thatjeremy is given time and space to do that — thatjeremy is given time and space to do that. it is the fiscally conservative, sensible thing to do, and he _ conservative, sensible thing to do, and he has — conservative, sensible thing to do, and he has my full support. fair -la to and he has my full support. fair play to you _ and he has my full support. fair play to you for _ and he has my full support. fa; " play to you for coming on, andrew, but the idea that any conservative can pitch themselves as the party of stability and fiscal responsibility after the last few weeks, we weren't talking about spending cuts three weeks ago. that is the scale of the damage. conservative colleagues who have been elected for the first time, who promised levelling up, a bit vague, but the promise of something was there, there aren't the votes in parliament for a return to austerity. evidence of the party wants to do that, it will have to fight an election to get a mandate for that, otherwise there will be no basis for that. where we are left with jeremy basis for that. where we are left withjeremy hunt, i don't know what conservative economic policy is right now, genuinely no idea. i know bits of the budget had been kept, so

maybe it is still that trickle down effect, but we need fresh ideas to improve economic growth. that is the bit liz truss was right on. the last 12 years have been poorfor the british economy, but the fresh ideas won't come from this crisis management. as soon as you come off air, you will have missed calls from cabinet ministers ringing around because they have leadership bids on the way. everybody knows this, no point denying it. the stability is not there. it will only come from a change of government with fresh ideas and a fresh mandate. that's wh it is ideas and a fresh mandate. that's why it is up _ ideas and a fresh mandate. that's why it is up to _ ideas and a fresh mandate. that's why it is up to us _ ideas and a fresh mandate. that's why it is up to us and _ ideas and a fresh mandate. that's why it is up to us and be - why it is up to us and be responsible and not engage in the self—indulgent politics that s w one engages _ self—indulgent politics that s w one engages in. it is up to us as members— engages in. it is up to us as members of the government to take decisions _ members of the government to take decisions in — members of the government to take decisions in the national interest, put aside — decisions in the national interest, put aside party politics and our own electoral— put aside party politics and our own electoral fortunes, whether individual mps hold their seats at the next — individual mps hold their seats at the next election. we need to reassure _ the next election. we need to reassure the markets and get the economy— reassure the markets and get the economy on a steady footing, and

that is— economy on a steady footing, and that is whatjeremy economy on a steady footing, and that is what jeremy hunt economy on a steady footing, and that is whatjeremy hunt did right now _ that is whatjeremy hunt did right now. lia— that is what jeremy hunt did right now. , , . ., ., that is what jeremy hunt did right now. ., now. liz truss cannot reassure the markets because _ now. liz truss cannot reassure the markets because she _ now. liz truss cannot reassure the markets because she is _ now. liz truss cannot reassure the markets because she is the - now. liz truss cannot reassure the markets because she is the source now. liz truss cannot reassure the i markets because she is the source of the problem. i agree it is not about who does whatjob in this government, it is about the fact that everyone with a mortgage is paying considerably more because of what happened three weeks ago. business investment, already the lowest in the g7, the cause of a lot of our economic problems, will fall, we will be second bottom of the 620. this country ranks behind italy in financial stability right now. you can't have the answers for the problems you are responsible for. that is whyjeremy hunt has to be given— that is whyjeremy hunt has to be given some — that is whyjeremy hunt has to be given some space to put flesh on the bones— given some space to put flesh on the bones of— given some space to put flesh on the bones of what he announced this morning — bones of what he announced this morninu. �* ,, bones of what he announced this morninu.�* i. ., , _ bones of what he announced this morninu.�* ., , _ ., ., morning. are you happy to have liz truss as prime _ morning. are you happy to have liz truss as prime minister? _ morning. are you happy to have liz truss as prime minister? yes, - morning. are you happy to have liz truss as prime minister? yes, i - morning. are you happy to have lizl truss as prime minister? yes, i am, because at — truss as prime minister? yes, i am, because at the _ truss as prime minister? yes, i am, because at the end _ truss as prime minister? yes, i am, because at the end of _ truss as prime minister? yes, i am, because at the end of the _ truss as prime minister? yes, i am, because at the end of the day, - because at the end of the day, getting — because at the end of the day, getting rid of the prime minister would _ getting rid of the prime minister would cause even more instability and it— would cause even more instability and it is— would cause even more instability and it is the thing we need less of. we need _ and it is the thing we need less of. we need calm heads, coolness at the centre _ we need calm heads, coolness at the centre of— we need calm heads, coolness at the centre of government, and we need to -ive centre of government, and we need to give jeremy— centre of government, and we need to give jeremy hunt the space and to

develop _ give jeremy hunt the space and to develop the plan. i won't get drawn into a _ develop the plan. i won't get drawn into a hypothetical situation of who might— into a hypothetical situation of who might do— into a hypothetical situation of who might do whichjob into a hypothetical situation of who might do which job and where, but i’ilht might do which job and where, but right now— might do which job and where, but right now we need to rally behind the chancellor and prime minister to deliver— the chancellor and prime minister to deliver this — the chancellor and prime minister to deliver this economic plan being developed right now. we deliver this economic plan being developed right now.— deliver this economic plan being developed right now. we will talk to the bbc's political _ developed right now. we will talk to the bbc's political editor _ developed right now. we will talk to the bbc's political editor shortly. . the bbc�*s political editor shortly. i will show everybody this tweet from liz truss. chris mason, we havejust chris mason, we have just heard andrew bowie say a couple of times we need to givejeremy hunt time and space. we'll liz truss have much more time and space to remain as prime minister if some of her tory mps have their way? they want to see had gone within weeks. time

mps have their way? they want to see had gone within weeks.— had gone within weeks. time and sace had gone within weeks. time and space looks _ had gone within weeks. time and space looks at — had gone within weeks. time and space looks at a _ had gone within weeks. time and space looks at a premium - had gone within weeks. time and space looks at a premium in - had gone within weeks. time and - space looks at a premium in downing street at the moment. the hope in downing street is that what we are seeing from jeremy hunt today might give them a little of both, because frankly, if we look at the u—turns, everyone has been done short of liz truss walking out the door of downing street and not coming back. it is the only thing that hasn't happened here. the entire liz truss programme for government, save one or two things, is dead, completely and utterly gone. critics will say within the party, and by the way, they are saying that, texting me this lunchtime, what is the point of a liz truss administration when the programme for government that she won office on has gone into the thames, the skip, the shredder, call it what you want. she will hope that by doing all of this you can make an argument, and we haven't heard her make it directly in these terms yet, but perhaps you could say she is being pragmatic, recognises her

original vision for the government has not survived contact with reality, so here is an alternative one. she won a leadership race and accepted forming a government from the king, changed course and will try to make the best of it. when you speak to conservative mps in private, yes, there are a range of views, some who say liz truss should be given time, but you don't find many or indeed any enthusiastically endorsing the idea of her are leading them into the next general election, so it seems to be a case of when rather than if there might be some sort of change. i'm struck by the fact that not long ago at the conservative conference, a nightmare for the party, plenty of people were deeply uncomfortable with liz truss and how things were going, but even more so about what they saw as the ridiculousness of changing leaders so soon. they are now so uncomfortable that that ridiculousness as so many of them see it is perhaps a better option than not doing anything. that's where i think we are this lunchtime. we will go on and talk about the

potential impact on households, on families, of the current financial and economic situation, but politically, chris, when you sit there today in the studio and think about liz truss and her so—called survival plan, just take us through the stages she is going to try and win back some support from both her mps and cabinet ministers. just make thins - mps and cabinet ministers. just make things - one — mps and cabinet ministers. just make things - one is. _ mps and cabinet ministers. just make things - one is, what— mps and cabinet ministers. just make things - one is, what we _ mps and cabinet ministers. just make things - one is, what we hear- mps and cabinet ministers. just make things - one is, what we hear from i things — one is, what we hearfrom her and the chancellor today is an attempt to reassure the markets. —— two things. he is also talking in very stark terms about getting rid of tax cuts in spending cuts coming. for many people at home watching the conversation now, uncomfortable. as far as the prime minister was concerned, we have the chancellor on his feet at about 3:30pm. there is then what is described as a

reception for the cabinet taking place this evening, clearly outwardly downing street trying to lay it on thick that they are consulting the cabinet about what they are doing, particularly the measure still to come in coincide with the publication of the numbers by the office for budget responsibility. that's when we can expect to hear a lot about spending cuts. lots of the cabinet frozen out of those decisions before the mini budget, this time they are going out of the way to emphasise that they are hearing from the cabinet. she will talk to the one nation group of conservative mps, then starting today and running all week is basically giving every single conservative mp in regional groupings are chance to speak to the prime minister and tell her what they think. listening mode, consultation mode, clinging on mode, all being, buttons being pressed to go on by the prime is as she tries

to reassure the party it is worthwhile then clinging to her for the time being. but things for her and looked really bleak. just responding to that, we understand jeremy hunt is now breaking mps and one of the committee wins over in parliament, ahead of his statement this afternoon. how do you view attempts by liz truss to show up any support? i do not think they will be successful, ultimately. isuspect mps have come to the conclusion they need to givejeremy hunt time and space to deliver the rest of his budget on halloween and to see what potentially the government can do going forwards. everything we are hearing from liz truss at the moment, with language in her cabinet, blaming localfactors, none of it is actually owning the

problem. she was a key part of it. she went on stage at the tory party conference and said disruption, yet she is now saying they want stability. the one thing the public needs to hear from stability. the one thing the public needs to hearfrom her stability. the one thing the public needs to hear from her is an apology, a recognition that she got things wrong and she has realised and learned from mistakes going forward and she would do things differently. the one thing saving her at the moment is precisely the point that andrew makes. tory mps are concerned that bedding her now they end up in a more difficult predicament afterwards but not is because they do not know who else would replace her. she because they do not know who else would replace her.— because they do not know who else would replace her. she is a hostage of two different _ would replace her. she is a hostage of two different groups _ would replace her. she is a hostage of two different groups that - would replace her. she is a hostage of two different groups that want i would replace her. she is a hostage of two different groups that want to make _ of two different groups that want to make way _ of two different groups that want to make way different things. the markets — make way different things. the markets are listening to jeremy hunt~ _ markets are listening to jeremy hunt~ he — markets are listening to jeremy hunt. he is talking like a 2009 conservative with fiscal responsibilities. that is good for the market. the millions of voters

who backed the tories in 2019 were elected _ who backed the tories in 2019 were elected on — who backed the tories in 2019 were elected on a high spending programme. they are probably pleased the markets have stabilised but they are not— the markets have stabilised but they are not going to be satisfied with the chancellor coming in saying i'm going _ the chancellor coming in saying i'm going to _ the chancellor coming in saying i'm going to be — the chancellor coming in saying i'm going to be making efficiencies and spending _ going to be making efficiencies and spending cuts and there will not be money— spending cuts and there will not be money for— spending cuts and there will not be money for levelling up. they were worried _ money for levelling up. they were worried that they do not have enough to put— worried that they do not have enough to put on— worried that they do not have enough to put on leaflets to justify voters backing _ to put on leaflets to justify voters backing them a second time. they want _ backing them a second time. they want a _ backing them a second time. they want a commitment to northern powerhouse rail and there is no money— powerhouse rail and there is no money for— powerhouse rail and there is no money for it. powerhouse rail and there is no money for it— powerhouse rail and there is no money for it. there are too many different factions _ money for it. there are too many different factions wanted - money for it. there are too many different factions wanted to - money for it. there are too many| different factions wanted to many different factions wanted to many different things. it is impossible because of what henry has just set out. they are diametrically opposed in terms of what they want government to do.- in terms of what they want government to do. in terms of what they want covernment to do. ., , ., , ., , government to do. the tory party has alwa s government to do. the tory party has always been — government to do. the tory party has always been a — government to do. the tory party has always been a broadchurch _ government to do. the tory party has always been a broadchurch of- always been a broadchurch of opinions drawn across a range of different backgrounds. i backed the guy over the summer... rishi sunak.

it would be — guy over the summer... rishi sunak. it would be easy _ guy over the summer... rishi sunak. it would be easy for _ guy over the summer... rishi sunak. it would be easy for me _ guy over the summer... rishi sunak. it would be easy for me to _ guy over the summer... rishi sunak. it would be easy for me to say - guy over the summer... rishi sunak. it would be easy for me to say we - it would be easy for me to say we warned of this. that would be contrary to national interest, not where we are right now. i am willing to give the prime minister hearing to give the prime minister hearing to work with her and to try and make it work, jeremy hunt the space to move forwards. the self—indulgent and rather self—assessed nature of politics in ourselves are even sitting around this table talking about who this in whatjob, i do not think it helps. this morning we saw a fiscally responsible statement by the chancellor. we want to see more of that in the next three weeks and thatis of that in the next three weeks and that is the sort of thing i will support. that is the sort of thing i will su ort. ., . ~' that is the sort of thing i will suuort. ., . ~' . support. you talk about self-indulgence. - support. you talk about self-indulgence. let's l support. you talk about - self-indulgence. let's listen to self—indulgence. let's listen to conservative mp crispin blunt. if you confidence levels as a prime minister are in single figures, the position is frankly irretrievable.

we don't have time between now and over the next two years to waste in seeing if we can repair liz as our prime minister, as our party leader, so she could command the confidence of the public. we need to make a change, we need to deliver sound money and sound administration, and get on with growth agenda by the difficult and complicated changes and regulations to advance the supply—side measures to try and address the growth paradox we've got. all of that is difficult and complicated and is going to need to carry confidence. we need a chief minister and a spokesman, who can address the public in a way that it's credible. i take all that from chris ben, who is a very experienced and long serving member of parliament. i do not understand how we get to that stage, if we engage in fratricide and infighting we have seen too much of in the conservative party over the last few years. it is not comfortable for many others. we are where we are. we need to support the

chancellor. we need to give the chancellor. we need to give the chancellor hearing and try to make it work in the national interest. i hope the majority of my colleagues will do that in the few weeks. we will do that in the few weeks. we will see if it _ will do that in the few weeks. we will see if it pans out. when it comes to the national interest, if we look at what is next of the measures from kwasi kwarteng, they are measures the labour party has and can sign up to. you agreed to the reversal in the national insurance contributions. that has now gone through parliament. he agreed with the energy intervention, evenif agreed with the energy intervention, even if it is going to be scaled back. labour's plan and he went up to april next year in the first instance. —— only went up. i to april next year in the first instance. -- only went up. i think there is plenty — instance. -- only went up. i think there is plenty for _ instance. -- only went up. i think there is plenty for everyone - instance. -- only went up. i think there is plenty for everyone to . instance. -- only went up. i think there is plenty for everyone to be j there is plenty for everyone to be upset with. we never supported the rise in national insurance and were

entirely consistent by maintaining that position. the big question is, what is this government now trying to achieve? is what is this government now trying to achieve? , what is this government now trying to achieve?— to achieve? is it what the alternative _ to achieve? is it what the alternative will _ to achieve? is it what the alternative will be? - to achieve? is it what the alternative will be? if - to achieve? is it what the j alternative will be? if you to achieve? is it what the - alternative will be? if you have had briefings you are on an election footing, and apparently labour front benchis footing, and apparently labour front bench is like yourself are getting lessons from the institute of government in terms of how to run a government. it looks as if you feel you are on the precipice of perhaps taking over if a mechanism were found. what is it you are going to outline to the country? it is day one of a labour government. what would the difficult decisions look like under labour? thea;r would the difficult decisions look like under labour?— like under labour? they look difficult. we _ like under labour? they look difficult. we would _ like under labour? they look difficult. we would bring - like under labour? they look| difficult. we would bring back like under labour? they look. difficult. we would bring back a long term industrial strategy, putting business investment heart of what we believe the economic problems for the uk had been. we will reform business rates and improve our trading position with the single market because there are things countries have in terms of the relationship. there are things

like a veterinary agreement, a recognition of professional qualifications which will make a difference. there are tangible things to improve growth. i opposed the top trickle—down approach in the government. we had an amazing response from the archbishop of canterbury and the imf sharing that view as well. our position has been wibbly personal taxation is high because of growth being so bad. would you go into the next election wanting to cut it?— wanting to cut it? there has been a catastrophic— wanting to cut it? there has been a catastrophic impact _ wanting to cut it? there has been a catastrophic impact of _ wanting to cut it? there has been a catastrophic impact of the - wanting to cut it? there has been a catastrophic impact of the mini - catastrophic impact of the mini budget. our plans are about stronger growth, stronger employment rights

will stop also quite frankly, i do not wear government policy is. in terms of overall philosophy, i do not support the trickle—down nonsense that somehow tax cuts for the better of wood sort. lute nonsense that somehow tax cuts for the better of wood sort.— the better of wood sort. we are havin: a the better of wood sort. we are having a discussion _ the better of wood sort. we are having a discussion about - the better of wood sort. we are having a discussion about the i the better of wood sort. we are - having a discussion about the issues that would _ having a discussion about the issues that would have arisen through planning — that would have arisen through planning unfunded tax cuts. labour is planning — planning unfunded tax cuts. labour is planning to pretty much spend the same _ is planning to pretty much spend the same also _ is planning to pretty much spend the same also through funding. any day-to-day _ same also through funding. iffy} day—to—day increase in same also through funding. jiffy day—to—day increase in spending has been high hypothecated to sources of revenue. i was an expansion to the nhs workforce which was announced at conference. we would not treat private schools as charities, that is a revenue raiser. we have always identified that. i accept that you have destroyed this government's ability to borrow and invest. we will have to see where we are when the obr forecast coming on that. it

is about investment spending, using net zero as a hook. we know not meeting our obligations on net to zero would cost the country more in the long term and that is the paradigms of that decision. we do not believe in borrowing money to pay for tax cuts or any other day—to—day expenditure outside of a crisis and that is why we identify sources of revenue and hypothecated those. .. . sources of revenue and hypothecated those. ., , g sources of revenue and hypothecated those. ., , ., ., ,, ., those. that is not what keir starmer has been saying- — those. that is not what keir starmer has been saying. that _ those. that is not what keir starmer has been saying. that is _ those. that is not what keir starmer has been saying. that is the - those. that is not what keir starmer has been saying. that is the exact . has been saying. that is the exact opposite. it has been saying. that is the exact o- osite. . has been saying. that is the exact o- osite. , ., has been saying. that is the exact o- osite. . . ., opposite. it is hard for conservative - opposite. it is hard for conservative mps, - opposite. it is hard for l conservative mps, many opposite. it is hard for - conservative mps, many of you opposite. it is hard for _ conservative mps, many of you have seen everything in a sense he believing part in the last p weeks. i understand that is hard. do not put words in armas. keir starmer has been criticised in some quarters for having that position, as has rachel. now you see why it is essential for long—term growth and prosperity in england. we long-term growth and prosperity in

encland. ~ ., ., ., ., england. we had earlier from faisal islam committee _ england. we had earlier from faisal islam committee accept _ england. we had earlier from faisal islam committee accept any - england. we had earlier from faisal islam committee accept any tax - england. we had earlier from faisall islam committee accept any tax rises or spending cuts will be bigger now, whateverjeremy hunt does or says as a result of the damage from all the fallout from the mini budget? people had to wait and _ fallout from the mini budget? people had to wait and see _ fallout from the mini budget? people had to wait and see what _ fallout from the mini budget? people had to wait and see what the - had to wait and see what the chancellor says on the 31st of october. —— we will have to wait see. october. -- we will have to wait see. . . . october. -- we will have to wait see, , ., , ., october. -- we will have to wait see. , ., ., , see. this was from nadine dorries. there was no _ see. this was from nadine dorries. there was no unity _ see. this was from nadine dorries. there was no unity candidate, - see. this was from nadine dorries. there was no unity candidate, no i see. this was from nadine dorries. l there was no unity candidate, no one has enough support. i think she missed her calling as a japanese soldier in world war ii. it is admirable that borisjohnson still has a handful of supporters. this is an important point because

some conservative members think there is. it is important to remember where we were when we got rid of borisjohnson and why. nobody forgets his achievement. he destroyed his credibility and he had lost the faith of the british people over pa rtygate lost the faith of the british people over partygate and everything is and getting rid of him is the right decision. the reason we are not hearing about the scandals any more is because he is not prime minister. we know what the decision is not, not borisjohnson. i we know what the decision is not, not boris johnson.— we know what the decision is not, not boris johnson. idisagree. boris johnson still _ not boris johnson. i disagree. boris johnson still has _ not boris johnson. i disagree. boris johnson still has not _ not boris johnson. i disagree. boris johnson still has not given - not boris johnson. i disagree. boris johnson still has not given up - not boris johnson. i disagree. boris johnson still has not given up on i johnson still has not given up on his hopes — johnson still has not given up on his hopes of a comeback at some point, _ his hopes of a comeback at some point, where he to make it back to the front— point, where he to make it back to the front line at some stage. i think— the front line at some stage. i think all— the front line at some stage. i think all the questions about integrity and probity would come up again _ integrity and probity would come up again a— integrity and probity would come up again. a lot of stories that journalists like myself could resume where _ journalists like myself could resume where he _ journalists like myself could resume where he and the front line. the tory _ where he and the front line. the tory party— where he and the front line. the tory party might want to think very carefully— tory party might want to think very carefully about whether they wanted to bring _ carefully about whether they wanted to bring him back. in

carefully about whether they wanted to bring him back.— to bring him back. in terms of members _ to bring him back. in terms of members who _ to bring him back. in terms of members who elected - to bring him back. in terms of members who elected liz i to bring him back. in terms of. members who elected liz truss, to bring him back. in terms of- members who elected liz truss, what about them and the tax—cutting agenda they bat? about them and the tax-cutting agenda they bat?— agenda they bat? ultimately constitutionally, _ agenda they bat? ultimately constitutionally, tory - agenda they bat? ultimately constitutionally, tory mps i agenda they bat? ultimately. constitutionally, tory mps are responsible for choosing the next prime minister. under conservative party rules they delegate out to the membership. there is no constitutional power in that. if tory mps lose confidence in the prime minister, the mandate by the party membership does not trump the responsibility of mps in the parliamentary system. vitally important _ parliamentary system. vitally important to _ parliamentary system. vitally important to say _ parliamentary system. vitally important to say that. - parliamentary system. vitally i important to say that. respond to this from your conservative colleague, it renders all the political fallout, colleague, it renders all the politicalfallout, criticism, dive in the polls of the last few weeks entirely pointless, doesn't it? right back where we were before. i can any repeat what i said at the

beginning. do not repeat it. find something different to say and try to engage with what your colleagues are saying. to engage with what your colleagues are sa in. ~ ., , to engage with what your colleagues aresa in_. ., , ., , to engage with what your colleagues aresa ini. ., , ., , are saying. what is important is the ma'ori of are saying. what is important is the majority of us _ are saying. what is important is the majority of us look _ are saying. what is important is the majority of us look at _ are saying. what is important is the majority of us look at the _ are saying. what is important is the majority of us look at the serious i majority of us look at the serious situation we're in, get behind the chancellor, give the prime minister space to develop an economic plan alongsidejeremy. think about space to develop an economic plan alongside jeremy. think about the national rather than the selfish political interest amid the country forward. i think that is where the majority of conservative find themselves.— majority of conservative find themselves. ~ ., , ,, ., themselves. what is keir starmer aoinu themselves. what is keir starmer auoin to themselves. what is keir starmer going to do _ themselves. what is keir starmer going to do now? _ themselves. what is keir starmer going to do now? what _ themselves. what is keir starmer going to do now? what is - themselves. what is keir starmer going to do now? what is he i themselves. what is keir starmer| going to do now? what is he going themselves. what is keir starmer i going to do now? what is he going to do this week in terms of your party's position?— do this week in terms of your party's position? bring back boris or a general— party's position? bring back boris or a general election _ party's position? bring back boris or a general election within i party's position? bring back boris. or a general election within weeks. that is why i think all routes lead to a general election, don't they can i do not know if liz truss will be prime minister on friday. i believe not at this stage. the mini

drama will be going on, as it has been. the role for the labour party will be continuing what keir starmer has done since he became leader. it transfers to the other side. what he has done is put the labour party in a position where people can turn to us in a moment of national crisis and he deserves credit for that and continues to do that. there is no route out of this crisis coming with another conservative leader, effect chancellor this year?— another conservative leader, effect chancellor this year? there was one a month. credibility— chancellor this year? there was one a month. credibility cannot - chancellor this year? there was one a month. credibility cannot come i a month. credibility cannot come with a party _ a month. credibility cannot come with a party already _ a month. credibility cannot come with a party already giving - a month. credibility cannot come with a party already giving us - a month. credibility cannot come i with a party already giving us that. it requires a change in fresh mandate. it requires a change in fresh mandate-— it requires a change in fresh mandate. , . , it requires a change in fresh mandate. , ., , ., mandate. they are getting this from conservative — mandate. they are getting this from conservative mp _ mandate. they are getting this from conservative mp mark _ mandate. they are getting this from conservative mp mark garnier. - mandate. they are getting this from conservative mp mark garnier. if. mandate. they are getting this from | conservative mp mark garnier. if the party and still is another new leader he would find it perfectly acceptable we should have a general election actually test the ability of that leader to the wider public. do you agree? i think conservative mps should keep

the council and avoid tweeting in a fit of pique and answering questions to journalists. fit of pique and answering questions tojournalists. i think fit of pique and answering questions to journalists. i think it's not helpful, certainly not conducive to the national interest. we need to have conversations, we need to find a way through, we have to ask difficult questions of the prime minister on the chancellor and the rest of the government, in the national interest, as i said. frankly, conservative mps taking to the airwaves and criticising the government or espousing their views on where we should head next is not helpful or in the national interest. we can introduce the money saving expert martin lewis onto the programme. hello to you. first, your reaction to the statement from jeremy hunt?— reaction to the statement from jeremy hunt? clearly, liz truss's economics _ jeremy hunt? clearly, liz truss's economics are _ jeremy hunt? clearly, liz truss's economics are gone, _ jeremy hunt? clearly, liz truss's economics are gone, and - jeremy hunt? clearly, liz truss's economics are gone, and we - jeremy hunt? clearly, liz truss's economics are gone, and we are | jeremy hunt? clearly, liz truss's - economics are gone, and we are back in the _ economics are gone, and we are back in the position we were when this started. — in the position we were when this started, except there is damage to the economy in the meantime and that

will affect_ the economy in the meantime and that will affect people's pockets, so a sorry— will affect people's pockets, so a sorry affair. it looks like jeremy hunt _ sorry affair. it looks like jeremy hunt has — sorry affair. it looks like jeremy hunt has managed to stabilise things which _ hunt has managed to stabilise things which were important. on the energy price guarantee, obviously a core area, _ price guarantee, obviously a core area, i_ price guarantee, obviously a core area, i was— price guarantee, obviously a core area, iwas perhaps price guarantee, obviously a core area, i was perhaps one of the loudest— area, i was perhaps one of the loudest voices calling for an intervention, because it was going to he _ intervention, because it was going to be absolutely devastating for people — to be absolutely devastating for people this winter if we didn't have that intervention. i was playing when _ that intervention. i was playing when it— that intervention. i was playing when it came out that i welcomed the intervention, but i did caveat it from _ intervention, but i did caveat it from the — intervention, but i did caveat it from the first moment by saying it is a very— from the first moment by saying it is a very expensive way to intervene, and it is a poorly targeted _ intervene, and it is a poorly targeted way to intervene. as i call for intervention and we needed it, i welcomed _ for intervention and we needed it, i welcomed it. getting rid of it in april— welcomed it. getting rid of it in april wonl— welcomed it. getting rid of it in april won't be a problem as long as the net _ april won't be a problem as long as the net for— april won't be a problem as long as the net for the support that remains is stretched highly enough. it cannot— is stretched highly enough. it cannotjust be support for those on benefits— cannotjust be support for those on benefits and pensioners and those with disabilities. it will need to stretch— with disabilities. it will need to stretch to _ with disabilities. it will need to stretch to more help for those on middle _ stretch to more help for those on middle incomes as well. we don't yet

know what— middle incomes as well. we don't yet know what situation we will go back to in april — know what situation we will go back to in april i— know what situation we will go back to in april. i presume the price cap will come — to in april. i presume the price cap will come back into effect. we are working _ will come back into effect. we are working now and looking at the predictions for the price cap from april— predictions for the price cap from april onwards, because the analysis now needs — april onwards, because the analysis now needs to be done. my guess is it will he, _ now needs to be done. my guess is it will be, for— now needs to be done. my guess is it will be, for someone on typical usage. — will be, for someone on typical usage. in — will be, for someone on typical usage, in the 3000— £4000 level. what _ usage, in the 3000— £4000 level. what is _ usage, in the 3000— £4000 level. what is interesting about this when you look— what is interesting about this when you look at— what is interesting about this when you look at it is, it seems to me, i genuinely— you look at it is, it seems to me, i genuinely believe that the blindness to this _ genuinely believe that the blindness to this energy problem is the cause of the _ to this energy problem is the cause of the downfall of government policies — of the downfall of government policies. during the zombie government period in the leadership campaign. _ government period in the leadership campaign, there was neither plan the promise _ campaign, there was neither plan the promise of— campaign, there was neither plan the promise of what would happen with energy. _ promise of what would happen with energy, even though it was blindingly obvious to everyone at the time — blindingly obvious to everyone at the time that the price cap was going _ the time that the price cap was going to — the time that the price cap was going to be astronomical and there had to— going to be astronomical and there had to he _ going to be astronomical and there had to be intervention. during that campaign, — had to be intervention. during that campaign, we got lots of tax cut promises — campaign, we got lots of tax cut promises and ignorance of the fact

we would — promises and ignorance of the fact we would need to intervene on energy — we would need to intervene on energy. there was also liz truss saying _ energy. there was also liz truss saying she — energy. there was also liz truss saying she didn't like hand—outs, and it— saying she didn't like hand—outs, and it was— saying she didn't like hand—outs, and it was a _ saying she didn't like hand—outs, and it was a dirty word, as a way of differentiating herself from rishi sunak _ differentiating herself from rishi sunak in— differentiating herself from rishi sunak. in government, they suddenly see the _ sunak. in government, they suddenly see the scale of the problem on energy— see the scale of the problem on energy that they should have seen before, _ energy that they should have seen before, and they hadn't planned to do both _ before, and they hadn't planned to do both. they then came up with a scheme _ do both. they then came up with a scheme to— do both. they then came up with a scheme to get away from the hand—out term and _ scheme to get away from the hand—out term and go— scheme to get away from the hand—out term and go for universal support, which _ term and go for universal support, which is _ term and go for universal support, which is incredibly expensive and poorly— which is incredibly expensive and poorly targeted. then they continue to do— poorly targeted. then they continue to do the _ poorly targeted. then they continue to do the election tax promises which _ to do the election tax promises which both cost the same amount at the same _ which both cost the same amount at the same time. that is why the house of cards _ the same time. that is why the house of cards tumbled. a lot of this could — of cards tumbled. a lot of this could have been foreseen, and i think— could have been foreseen, and i think the — could have been foreseen, and i think the structure of the way we had the — think the structure of the way we had the zombie government and the electoral— had the zombie government and the electoral campaign that allowed candidates to ignore the obviously impending doom of what was going to id impending doom of what was going to go on _ impending doom of what was going to go on in _ impending doom of what was going to go on in energy, with an 80% price cap rise _ go on in energy, with an 80% price cap rise on — go on in energy, with an 80% price cap rise on top of 54% had probably

a further— cap rise on top of 54% had probably a further rise injanuary, i think it is— a further rise injanuary, i think it is probably what has come back on all of— it is probably what has come back on all of this _ it is probably what has come back on all of this. we need governments who do planning _ all of this. we need governments who do planning and prevention, rather thaniust_ do planning and prevention, rather thanjust reactive crisis. it is not what _ thanjust reactive crisis. it is not what we — thanjust reactive crisis. it is not what we need from our government and it has caused _ what we need from our government and it has caused a lot of problems. one thing peeple — it has caused a lot of problems. que: thing people might be hopeful about is the cost of mortgages, because there was very much a feeling that on the back of the mini budget by kwasi kwarteng, the former chancellor, the bank of england governor andrew bailey would be in a position of raising interest rates to continue to try and rein in inflation, and that has fed through to higher mortgage rates, which is a huge worry and anxiety for homeowners, particularly those on fixed mortgages that are going to come out in the next six months to a year. do you get any sense that on the back of today's statement, interest rates may not have to go up as high as perhaps the bank of england governor had indicated? we

hope the impact is that they don't have to _ hope the impact is that they don't have to go — hope the impact is that they don't have to go up as high—end as quickly as they— have to go up as high—end as quickly as they were, because it is the shock— as they were, because it is the shock of— as they were, because it is the shock of the speed of the interest rate rises— shock of the speed of the interest rate rises that will hurt people. we will have _ rate rises that will hurt people. we will have to — rate rises that will hurt people. we will have to wait for the markets to react _ will have to wait for the markets to react the — will have to wait for the markets to react. the chancellor hasn't even given _ react. the chancellor hasn't even given the — react. the chancellor hasn't even given the full statement yet, so we don't _ given the full statement yet, so we don't know— given the full statement yet, so we don't know where this is going to lo. don't know where this is going to go i_ don't know where this is going to go i would — don't know where this is going to go. i would say that the fact that this may— go. i would say that the fact that this may have mitigated some of those _ this may have mitigated some of those rises does not stop. it follows _ those rises does not stop. it follows from what i said before. i've been— follows from what i said before. i've been calling for the past couple — i've been calling for the past couple of weeks for regulatory intervention in the mortgage market to put— intervention in the mortgage market to put protective measures in if we do get _ to put protective measures in if we do get these high rates. to be plain. — do get these high rates. to be plain, that is not calling for a bailout. _ plain, that is not calling for a bailout. it— plain, that is not calling for a bailout, it is calling to look at measures, and these are examples suggestions and would need proper research, _ suggestions and would need proper research, such as more flexibility for people — research, such as more flexibility for people to change their term and change _ for people to change their term and change it— for people to change their term and change it back. payment holidays, a change _ change it back. payment holidays, a change to— change it back. payment holidays, a change to affordability tests which at the _ change to affordability tests which at the moment mean some people are rejected _ at the moment mean some people are rejected for— at the moment mean some people are rejected for 5% fixes because they failed _ rejected for 5% fixes because they failed in _ rejected for 5% fixes because they failed in affordability tests, and that means they have to have a

higher— that means they have to have a higher rate. if you can't afford a cheaper— higher rate. if you can't afford a cheaper rate, how can you afford a higher— cheaper rate, how can you afford a higher rate? — cheaper rate, how can you afford a higher rate? more forbearance from the banks— higher rate? more forbearance from the banks whose margins are increasing. that plan should be in place _ increasing. that plan should be in place by— increasing. that plan should be in place by christmas so that in the spring _ place by christmas so that in the spring we — place by christmas so that in the spring we are in a position to help people _ spring we are in a position to help people it— spring we are in a position to help people if interest rates go up. regulatory intervention shouldn't cost the — regulatory intervention shouldn't cost the state, but we need to focus on those _ cost the state, but we need to focus on those things and soon. you cost the state, but we need to focus on those things and soon.— on those things and soon. you said at an awards _ on those things and soon. you said at an awards ceremony _ on those things and soon. you said at an awards ceremony in - on those things and soon. you said at an awards ceremony in the - on those things and soon. you said at an awards ceremony in the last. at an awards ceremony in the last few days that someone has to get a grip on the economy — do you think thatis grip on the economy — do you think that is happening? i grip on the economy - do you think that is happening?— that is happening? i think the grip is bein: that is happening? i think the grip is being had- _ that is happening? i think the grip is being had. the _ that is happening? i think the grip is being had. the changes - that is happening? i think the grip i is being had. the changes happening at the _ is being had. the changes happening at the moment, we don't like them and didn't— at the moment, we don't like them and didn't want to be in this position. _ and didn't want to be in this position, but i think they are necessary— position, but i think they are necessary for where we are right now _ necessary for where we are right now in— necessary for where we are right now in the _ necessary for where we are right now. in the short—term, this is a level— now. in the short—term, this is a level of— now. in the short—term, this is a level of control that was needed. clearly— level of control that was needed. clearly we — level of control that was needed. clearly we are still, and i know this isn't— clearly we are still, and i know this isn't a _ clearly we are still, and i know this isn't a financial point, but the situation with the prime minister— the situation with the prime minister still leads to huge amounts of uncertainty, and uncertainty factors — of uncertainty, and uncertainty factors into personal finances and

the economy. the chancellor seems to have got _ the economy. the chancellor seems to have got a _ the economy. the chancellor seems to have got a grip. the volatility in the political situation isn't good for anybody. the political situation isn't good for anybody-— the political situation isn't good for anybody. stay with us, only a few minutes _ for anybody. stay with us, only a few minutes till _ for anybody. stay with us, only a few minutes till the _ for anybody. stay with us, only a few minutes till the end - for anybody. stay with us, only a few minutes till the end of - for anybody. stay with us, only a few minutes till the end of the l few minutes till the end of the programme. that is the critical point, isn't it? instability that martin lewis says stems from the prime minister having lost credibility and authority, and that feeds into problems for people's personal finances, feeds into problems for people's personalfinances, what feeds into problems for people's personal finances, what happens to mortgages and energy bills. i personal finances, what happens to mortgages and energy bills.- mortgages and energy bills. i don't disauree mortgages and energy bills. i don't disagree with _ mortgages and energy bills. i don't disagree with anything _ mortgages and energy bills. i don't disagree with anything martin - mortgages and energy bills. i don't disagree with anything martin said. i think a grip is being got, and we didn't want to be in the situation we are in, but we are here. in terms of instability, i keep saying the worst thing we could do now is lurch into another leadership election. we have to focus on the job in hand, get to the end of october, give jeremy the space to develop his budget, because anything other than that will just frighten the markets more and will have a negative impact on people's personal finances. martin, do you agree? i on people's personal finances. martin, do you agree? i believe the solution to other _

martin, do you agree? i believe the solution to other people _ martin, do you agree? i believe the solution to other people in - solution to other people in politics _ solution to other people in politics. i don't know which is better— politics. idon't know which is better or— politics. i don't know which is better or worse, the prime minister staying _ better or worse, the prime minister staying or— better or worse, the prime minister staying or going. there is instability either way round. i leave — instability either way round. i leave it — instability either way round. i leave it to _ instability either way round. i leave it to others to decide. pippa, we hear there _ leave it to others to decide. pippa, we hear there will— leave it to others to decide. pippa, we hear there will be _ leave it to others to decide. pippa, we hear there will be an _ leave it to others to decide. pippa, we hear there will be an urgent - we hear there will be an urgent question in parliament on the economy. question in parliament on the economy-— question in parliament on the econom . , , n ., economy. the speaker has granted labour an urgent _ economy. the speaker has granted labour an urgent question - economy. the speaker has granted labour an urgent question on - economy. the speaker has granted labour an urgent question on the l labour an urgent question on the economic— labour an urgent question on the economic crisis. _ labour an urgent question on the economic crisis. this _ labour an urgent question on the economic crisis. this would - labour an urgent question on the economic crisis. this would take i economic crisis. this would take place _ economic crisis. this would take place before _ economic crisis. this would take place before jeremy— economic crisis. this would take place before jeremy hunt's - economic crisis. this would take - place before jeremy hunt's statement later on— place before jeremy hunt's statement later on the _ place before jeremy hunt's statement later on the economy. _ place before jeremy hunt's statement later on the economy. the _ place before jeremy hunt's statement later on the economy. the reality- place before jeremy hunt's statement later on the economy. the reality of l later on the economy. the reality of these _ later on the economy. the reality of these things. — later on the economy. the reality of these things, though, _ later on the economy. the reality of these things, though, while - later on the economy. the reality of these things, though, while we - later on the economy. the reality of i these things, though, while we would all hope _ these things, though, while we would all hope and _ these things, though, while we would all hope and expect _ these things, though, while we would all hope and expect that _ these things, though, while we would all hope and expect that she - these things, though, while we would all hope and expect that she turns - all hope and expect that she turns up, all hope and expect that she turns up. because — all hope and expect that she turns up, because where _ all hope and expect that she turns up, because where is— all hope and expect that she turns up, because where is liz- all hope and expect that she turns up, because where is liz truss - all hope and expect that she turns up, because where is liz truss ati up, because where is liz truss at the moment, _ up, because where is liz truss at the moment, frankly? _ up, because where is liz truss at the moment, frankly?— up, because where is liz truss at the moment, frankly? surely she will be next to her— the moment, frankly? surely she will be next to her chancellor. _ the moment, frankly? surely she will be next to her chancellor. whether . be next to her chancellor. whether she will answer _ be next to her chancellor. whether she will answer questions - be next to her chancellor. whether she will answer questions herself l be next to her chancellor. whether| she will answer questions herself is probably— she will answer questions herself is probably a — she will answer questions herself is prohahly a bit— she will answer questions herself is probably a hit of— she will answer questions herself is probably a bit of a _ she will answer questions herself is probably a bit of a stretch. - she will answer questions herself is probably a bit of a stretch. i- probably a bit of a stretch. i suspect— probably a bit of a stretch. i suspect she _ probably a bit of a stretch. i suspect she will— probably a bit of a stretch. i suspect she will send - probably a bit of a stretch. i. suspect she will send someone probably a bit of a stretch. i- suspect she will send someone junior in her— suspect she will send someone junior in her place. — suspect she will send someone junior in her place. but— suspect she will send someone junior in her place. but i _ suspect she will send someone junior in her place, but i think— suspect she will send someone junior in her place, but i think it _ suspect she will send someone junior in her place, but i think it is - suspect she will send someone junior in her place, but i think it is a - in her place, but i think it is a missed — in her place, but i think it is a missed opportunity— in her place, but i think it is a missed opportunity where - in her place, but i think it is a| missed opportunity where she in her place, but i think it is a - missed opportunity where she could reassure _ missed opportunity where she could reassure mps— missed opportunity where she could reassure mps that _ missed opportunity where she could reassure mps that she _ missed opportunity where she could reassure mps that she is _ missed opportunity where she could reassure mps that she is in- missed opportunity where she could reassure mps that she is in charge i reassure mps that she is in charge in the _ reassure mps that she is in charge in the country— reassure mps that she is in charge in the country that _ reassure mps that she is in charge in the country that she _ reassure mps that she is in charge in the country that she knows - reassure mps that she is in charge| in the country that she knows what she's— in the country that she knows what she's doing — in the country that she knows what she's doing-— she's doing. should it not be the prime minister _ she's doing. should it not be the prime minister that _ she's doing. should it not be the prime minister that answers - she's doing. should it not be the prime minister that answers the | prime minister that answers the urgent questions about the economic crisis? i’m urgent questions about the economic crisis? �* ., urgent questions about the economic crisis? ., , , , crisis? i'm not surprised it has been granted. _ crisis? i'm not surprised it has been granted, given _

crisis? i'm not surprised it has been granted, given that - crisis? i'm not surprised it has been granted, given that the i been granted, given that the chancellor was going to be given a statement on the economy that's like giving a statement on the economy this afternoon anyway.— this afternoon anyway. wouldn't it be better to _ this afternoon anyway. wouldn't it be better to wait _ this afternoon anyway. wouldn't it be better to wait and _ this afternoon anyway. wouldn't it be better to wait and see - this afternoon anyway. wouldn't it be better to wait and see what - this afternoon anyway. wouldn't itj be better to wait and see what the chancellor is going to say? it is reasonable _ chancellor is going to say? it is reasonable to _ chancellor is going to say? it is reasonable to hear— chancellor is going to say? it is reasonable to hear from the prime minister. — reasonable to hear from the prime minister, given the chaos she has caused _ minister, given the chaos she has caused if— minister, given the chaos she has caused. if you can't turn up to do an urgent— caused. if you can't turn up to do an urgent question in parliament, look, _ an urgent question in parliament, look. it's— an urgent question in parliament, look, it's over. that is the minimum level— look, it's over. that is the minimum level of— look, it's over. that is the minimum level of being — look, it's over. that is the minimum level of being the prime minister we would _ level of being the prime minister we would expect. ifjeremy hunt is in charge, _ would expect. ifjeremy hunt is in charge, fair— would expect. ifjeremy hunt is in charge, fair enough, butjust charge, fair enough, but just formalise _ charge, fair enough, butjust formalise it. charge, fair enough, but 'ust formalise mi charge, fair enough, but 'ust formalise it. �* ., ., formalise it. but not on the day when a statement _ formalise it. but not on the day when a statement will - formalise it. but not on the day when a statement will be - formalise it. but not on the day when a statement will be made formalise it. but not on the day i when a statement will be made on formalise it. but not on the day - when a statement will be made on the economy by the guy in charge of the economy by the guy in charge of the economy in the afternoon. anything said in the urgent question would be, frankly, wait a few minutes till the chancellor gets to his feet. you can talk about _ the chancellor gets to his feet. you can talk about form in practice, but it was— can talk about form in practice, but it was this — can talk about form in practice, but it was this government that put out a budget— it was this government that put out a budget that crashed the value of sterling _ a budget that crashed the value of sterling and borrowing costs. it was this government that gave us a chancellor every month. you can't say. _ chancellor every month. you can't say, let's— chancellor every month. you can't say, let's do— chancellor every month. you can't say, let's do things how they should be done _ say, let's do things how they should be done when you are behaving this way. be done when you are behaving this way we _

be done when you are behaving this way. we want to hear from the prime ministen _ way. we want to hear from the prime minister. . . , , way. we want to hear from the prime minister. ., ., , , _, , minister. that has been recognised and hopefully _ minister. that has been recognised and hopefully rectify, _ minister. that has been recognised and hopefully rectify, and - minister. that has been recognised and hopefully rectify, and that - minister. that has been recognised and hopefully rectify, and that is i and hopefully rectify, and that is why we need to give them space. it distracts from the work of government. i think we should wait to hear whatjeremy has to say this afternoon. to hear what jeremy has to say this afternoon. �* ., ., ., afternoon. before we go to the end ofthe afternoon. before we go to the end of the programme, _ afternoon. before we go to the end of the programme, martin - afternoon. before we go to the end of the programme, martin lewis, i afternoon. before we go to the end of the programme, martin lewis, if there was one thing more you would like to hear in this statement this afternoon from the chancellor that might be good for voters, households, families, what would it be? ., , ., ., be? two things, the mortgage intervention _ be? two things, the mortgage intervention i _ be? two things, the mortgage intervention i talked _ be? two things, the mortgage intervention i talked about, i be? two things, the mortgage. intervention i talked about, and be? two things, the mortgage i intervention i talked about, and the september inflation figures are coming — september inflation figures are coming on wednesday, normally the figures _ coming on wednesday, normally the figures that benefits and pensions are operated on, i think they need to say— are operated on, i think they need to say that — are operated on, i think they need to say that benefits will be operated with inflation, not average earnings _ operated with inflation, not average earnings i— operated with inflation, not average earnings. i think there are a lot of desperate — earnings. i think there are a lot of desperate people because of the cost of living _ desperate people because of the cost of living crisis and they need some reassurance, as well as the markets. martin— reassurance, as well as the markets. martin lewis. — reassurance, as well as the markets. martin lewis, thank you forjoining

us. henry, your reaction? i martin lewis, thank you for 'oining us. henry, your reaction?i us. henry, your reaction? i think a eriod of us. henry, your reaction? i think a period of silence _ us. henry, your reaction? i think a period of silence from _ us. henry, your reaction? i think a period of silence from the - us. henry, your reaction? i think a period of silence from the prime i period of silence from the prime minister makes practical sense because i don't think she has made a public statement that has enhanced her position. ultimately, this urgent question would be a good opportunity for the prime minister who is the person to assert herself, reassure her backbenchers, may be sent a message to labour. if she can't rise to these occasions, it will only confirm to conservative mps, if you are not in this for a third max, what is she in that very important role for? you need someone able —— in this for trussonomics. yet again, it shows the weakness of her position. — yet again, it shows the weakness of her position, and _ yet again, it shows the weakness of her position, and i— yet again, it shows the weakness of her position, and i find _ yet again, it shows the weakness of her position, and i find it _ yet again, it shows the weakness of her position, and i find it unlikely. her position, and i find it unlikely that for— her position, and i find it unlikely that for all— her position, and i find it unlikely that for all andrew— her position, and i find it unlikely that for all andrew and _ her position, and i find it unlikely that for all andrew and many i her position, and i find it unlikely that for all andrew and many of i her position, and i find it unlikely. that for all andrew and many of his colleagues — that for all andrew and many of his colleagues will— that for all andrew and many of his colleagues will wait _ that for all andrew and many of his colleagues will wait until— that for all andrew and many of his colleagues will wait until the - that for all andrew and many of his colleagues will wait until the mini i colleagues will wait until the mini budget— colleagues will wait until the mini budget to — colleagues will wait until the mini budget to see _ colleagues will wait until the mini budget to see what _ colleagues will wait until the mini budget to see what the _ colleagues will wait until the mini budget to see what the growth i budget to see what the growth figures — budget to see what the growth figures are _ budget to see what the growth figures are and _ budget to see what the growth figures are and what _ budget to see what the growth figures are and what comes i budget to see what the growth i figures are and what comes next, i think— figures are and what comes next, i think probably _ figures are and what comes next, i think probably people _ figures are and what comes next, i think probably people like - figures are and what comes next, i think probably people like him i figures are and what comes next, i l think probably people like him would admit _ think probably people like him would admit that— think probably people like him would admit that liz— think probably people like him would admit that liz truss _ think probably people like him would admit that liz truss is _ think probably people like him would admit that liz truss is not _ think probably people like him would

admit that liz truss is not going i think probably people like him would admit that liz truss is not going to l admit that liz truss is not going to be taking _ admit that liz truss is not going to be taking them— admit that liz truss is not going to be taking them into _ admit that liz truss is not going to be taking them into the _ admit that liz truss is not going to be taking them into the next i be taking them into the next election. _ be taking them into the next election, her— be taking them into the next election, her days _ be taking them into the next election, her days are - be taking them into the next i election, her days are numbered be taking them into the next - election, her days are numbered as prime _ election, her days are numbered as prime minister, _ election, her days are numbered as prime minister, and _ election, her days are numbered as prime minister, and that— election, her days are numbered as prime minister, and that the - election, her days are numbered as prime minister, and that the party. prime minister, and that the party really— prime minister, and that the party really needs — prime minister, and that the party really needs to _ prime minister, and that the party really needs to work _ prime minister, and that the party really needs to work out _ prime minister, and that the party really needs to work out who i prime minister, and that the party really needs to work out who they| really needs to work out who they want _ really needs to work out who they want to _ really needs to work out who they want to take — really needs to work out who they want to take over— really needs to work out who they want to take over from _ really needs to work out who they want to take over from her- really needs to work out who they want to take over from her so i really needs to work out who theyl want to take over from her so they can concentrate _ want to take over from her so they can concentrate on _ want to take over from her so they can concentrate on the _ want to take over from her so they can concentrate on the important i can concentrate on the important thing _ can concentrate on the important thing that— can concentrate on the important thing that people _ can concentrate on the important thing that people in _ can concentrate on the important thing that people in the - can concentrate on the important thing that people in the country. thing that people in the country really— thing that people in the country really want _ thing that people in the country really want them _ thing that people in the country really want them to _ thing that people in the country really want them to focus - thing that people in the country really want them to focus on. . really want them to focus on. andrew. _ really want them to focus on. andrew. you _ really want them to focus on. andrew, you talked _ really want them to focus on. andrew, you talked a - really want them to focus on. andrew, you talked a lot i really want them to focus on. i andrew, you talked a lot about really want them to focus on. - andrew, you talked a lot about they not needing to be another leadership contest, but a lot of your conservative colleagues are briefing and talking privately as well as openly about the coronation, a coalescing around a candidate who can have some sort of support among your mps. i can have some sort of support among our mps. ., �* ~' can have some sort of support among our mps. ., �* ~ ., ~ .,, your mps. i don't think a week has one b your mps. i don't think a week has gone by where _ your mps. i don't think a week has gone by where someone _ your mps. i don't think a week has gone by where someone has i your mps. i don't think a week has i gone by where someone has approached me about leadership ambitions. hagar me about leadership ambitions. how they approached you in the last few days? we they approached you in the last few da s? ~ ., , , they approached you in the last few das? , ., days? we need to be focused on sopporting _ days? we need to be focused on sopporting jeremy _ days? we need to be focused on supporting jeremy hunt, - days? we need to be focused on supporting jeremy hunt, giving i days? we need to be focused on i supporting jeremy hunt, giving him and the prime minister space. has someone approached you? look, | and the prime minister space. has i someone approached you? look, what we need to be — someone approached you? look, what we need to be doing... _ someone approached you? look, what we need to be doing... white - someone approached you? look, what we need to be doing... white might i we need to be doing... white might write, ok, we don't have any names. thanks to all my guests forjoining

me. thanks to all my guests for 'oining me. . . ~' thanks to all my guests for 'oining me. , ., ~ ., , ., thanks to all my guests for 'oining me. , ., " ., , ., ,': ,': f, , , me. the stake that is at 3:30pm this afternoon. me. the stake that is at 3:30pm this afternoon- l'll _ me. the stake that is at 3:30pm this afternoon. i'll be _ me. the stake that is at 3:30pm this afternoon. i'll be back— me. the stake that is at 3:30pm this afternoon. i'll be back tomorrow. i

the new chancellor scraps most of last month's controversial mini budget. jeremy hunt has abandoned the promise of a ip cut in basic income tax, while help with energy bills will only last till april. growth requires confidence and stability and the united kingdom will always pay its way. this government will therefore take whatever tough decisions are necessary to do so. the statement was designed to calm turmoil on the financial markets, and early reaction there has been positive. but labour say the government's in panic. the country will pay a lasting price for putting us through this ideological experiment and we'll pay a lasting price through economic

instability and rising mortgage rates for some time to come.