this is bbc news, i'mjoanna gosling at westminster. the headlines... the new chancellorjeremy hunt scraps most of last month's controversial mini budget, ditching the promise of a 1p 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 task decisions are necessary to do so. the chancellor's emergency 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 is through this ideological experiment and will pay a lasting price through economic instability and rising mortgage rates for some time to come. and in other news... the head of the metropolitan police says hundreds of his officers should have been sacked for gross misconduct. civilians rescued in the ukrainian capital after an attack by russian kamikaze drones. scotland's first minister nicola sturgeon has set out her economic argument for leaving the uk, including plans move to a scottish currency �*when the time is right�*.

the new chancellor, jeremy hunt, has scrapped almost all of the key measures in last month's controversial mini—budget, in the latest in a series of government u turns. in an emergency statement, he abandoned indefinitely the planned 1p cut in the basic rate of income tax, that had been due to come in next year. help with energy bills will now only last until next april instead of for two years and then will be reviewed. mr hunt claimed all today's announcements will save £32 billion a year but he warned there are more difficult decisions ahead on tax and spending to cut government debt. well, he'll address mps in the commons later this afternoon. so far, the markets have reacted positively. but labour says the government is in a state of panic. here's our political correspondent, helen catt, with our lead report.

later on, there will be an urgent question from the labour party. liz truss has already announced that she will not be heading to the house of commons for that. penny mordaunt will be responding. morning, chancellor. which measures will you be announcing today? a barrage of questions for the new chancellor, who decided the markets could not wait any longer for some answers as he complains of a close the door on the government's mini budget. firstly, we will reverse almost all of the tax measures announced in the growth plan three weeks ago that have not started parliamentary legislation. the basic rate of income tax will remain at 20% and will do so indefinitely until economic circumstances allow for it to be cut. 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. the mini budget was delivered by the previous chancellor, kwasi kwarteng, on the 23rd of september. it started unravelling on the 3rd of october when the government backtracked on cutting the 45p rate of tax. then on friday the 14th of october, the previous chancellor was sacked and a pledge not to raise corporation tax, too. then today the income tax cuts stopped indefinitely two year promise on energy bills now and were guaranteed until april. what remains of the plans, the cut to national insurance and stamp duty. the most important objective for 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. outside parliament, opposition

politicians lined up to say it was too late. what has been the point of all of this? we have had 2a days since the mini budget, almost all that now scrapped, but huge economic pain went on to people across of these islands. the damage has already been done. thousands of people are already |facing hundreds of pounds extra i on their mortgage payments, pensioners will be worried . about their pensions, l and now we're hearing that there are potentially- going to be to public services which will leave many more people concerned about what _ that means for them. so attention turns again to number ten. the economic strategy on which liz truss won a job has been ripped up. she is in an impossible position where the survival of the government is dependent on publicly torching everything she believes, so today is a humiliation for her, it is a humiliation for the government. the challenge for liz truss

is to convince her own mps that she has more to offer as prime minister. many of them have privately been saying theyjust can't see a way back. a few of them are starting to say it publicly now, too. if your confidence levels as prime minister are in single figures, the position is frankly unachievable, and we don't have time between now and the next two years to waste in seeing if we can repair liz as our prime minister. the chancellor will face questions about his statement from the mps in the commons later as his boss faces continued questions about her future. with me is our chief political correspondent, nick eardley. the focus is sort of shifting as the day goes on. now there is going to be that urgent question asked by the leader of the opposition, normally the prime minister would answer it but liz truss is not going to answer

it. what is going on? she but liz truss is not going to answer it. what is going on?— it. what is going on? she is not compelled _ it. what is going on? she is not compelled to — it. what is going on? she is not compelled to answer _ it. what is going on? she is not compelled to answer it - it. what is going on? she is not compelled to answer it but - it. what is going on? she is not compelled to answer it but i - it. what is going on? she is not l compelled to answer it but i think it would be seen by many as a sign of weakness that she is not owning what is happening today. there are many tory mps who say privately they really want to hear from the prime minister today because so far we have heard from the chancellor, we will hear from the chancellor again at half past three, he has been addressing tory mps this morning and although the prime minister is going to have some behind closed door meetings, we are not going to actually hear from her today. meetings, we are not going to actually hearfrom her today. and this is a huge day for liz truss. her whole programme has beenjunked. we cannot over emphasise just how dramatic these u—turns are. the prime minister spent the summer telling us we can't tax our way to grow. the resolution foundation has done some calculation is and reckon what has been announced today that the tax burden is heading to its highest since the 1950s. the prime

minister spent last week criticising labour for saying they only had a six—month plan on energy and she had a two—year strategy which would keep people safe. she has nowjunked that andy government has gone back to a six—month strategy, after which it will revisit exactly how it is going to fund and who gets payments. this is the moment at which liz truss' programme for government completely died. it is the final nail in the coffin. and there are many in the opposition benches but many tory mps also, thinking why aren't we hearing from the prime minister? the also, thinking why aren't we hearing from the prime minister?— also, thinking why aren't we hearing from the prime minister? the nail on the coffin for— from the prime minister? the nail on the coffin for her— from the prime minister? the nail on the coffin for her programme - from the prime minister? the nail on the coffin for her programme for- the coffin for her programme for government and for trussonomics, but is anyone saying that they think she can survive?— can survive? there are two things that count — can survive? there are two things that count in _ can survive? there are two things that count in her _ can survive? there are two things that count in her favour. - can survive? there are two things that count in her favour. the - can survive? there are two things that count in her favour. the first | that count in her favour. the first is that it is not easy to remove a prime minister and the tory mps chatting about it this afternoon don't really have a plan for who would take over. there are not ——

lots of names doing the rounds, rishi sunak, jeremy hunt, penny mordaunt, ben wallace, but they cannot agree on that and there is not a unity candidate, so to speak. some tory mps really want stability and i hope that what the chancellor has announced this morning essentially will provide a better stability and he should be given the space for a few days to see that through. —— they hold. it is hard to find tory mps that are confident in liz truss. there are dozens who will tell you off the record her authority a short that she is prime minister in name only, she doesn't have any credibility left, it is a matter of when not if she leaves downing street. i don't know when the prime minister will leave downing street, i don't know the mechanism by which that will happen, because nobody over there knows it either, but there are an increasing number of tory mps who think the game is up for the prime minister.

this is a party with a 71 seat working majority. it this is a party with a 71 seat working majority.— working majority. it is extraordinary - working majority. it is extraordinary to - working majority. it is extraordinary to think| working majority. it is - extraordinary to think that working majority. it 3 extraordinary to think that in some ways the conservatives have gone from strength to strength at elections but in their comedy fundamental problem that they have and this summer showed it, is the party does not know what it wants to do, even after liz truss winning the leadership election, still loads of mps thought that her plan was bonkers and it would never work. they are telling us this morning that they have been proven right. and because the party has wanted to take the no tax gamble through, it was to be fiscally responsible party, promising to balance the books, now the party cannot get behind her because it thinks her authority a shot but it does not know what should come next and there is no prospect of a candidate who

everyone will get behind. it looks like a mess because it is a mess. there are not many people with an answer as to what happened now. isluiith answer as to what happened now. with the mini budget and the stated aims of what liz truss said she wanted to achieve, there really was clear blue water between the tories and the opposition parties and now in economic terms at least, are they kind of in similar territory? i suppose they are. jeremy hunt is trying to haul the party back into the centre ground with his announcement this morning. i think the bigger question though is who has credibility now because we are whirring liverpool ace few weeks ago where keir starmerjust at every point he got a chance to speak would say labour is in the centre, we have any comic plan, we will balance the books. jeremy hunt has tried to take

the government back into that place this morning. but at any time ministers make the case for the strategy, they will be faced with the accusation that it was not what the accusation that it was not what the government wanted to do, it only did it after the markets tanked and after the economic turmoil set in. it seems hard just now to see how liz truss is going to try and claim that mantle back. the argument the chancellor has been making behind closed doors to tory mps this morning is that the prime minister did the right thing, she did a brave thing to go for political and economic stability. the question is, does that float with voters. i'm not sure and there are many tory mps who do not think it will. behind—the—scenes, labour are turning some of the old thatcher language on the tories, the word frit being used. that language on the tories, the word frit being used.—

language on the tories, the word frit being used. that has been used to me in a few _ frit being used. that has been used to me in a few phone _ frit being used. that has been used to me in a few phone calls - frit being used. that has been used to me in a few phone calls this - to me in a few phone calls this afternoon. the argument they will uses if this really is her plan, why aren't we seeing the prime minister today? i don't have an answer to that at the moment. as we've been hearing, the government is drastically scaling back the support its offering support for people's energy bills — that will now only last till next april. the chancellor's emergency statement this morning was timed to reassure the markets and so far it seems, partly at least, to have succeeded: the pound was up against the dollar and the cost of government borrowing has fallen. our business correspondent, theo leggett, reports. energy bills. the government promised to cap them for millions of households in the face of surging international gas prices. the plan was to keep the cap in place for two years, but the new chancellor says that is unaffordable. from april, it will be reined

in to bring down the cost. it is a change that sends a powerful message to the financial markets. in the mini budget, the government outlined plans for huge tax cuts, but it did not say how it was going to pay for them when it was already committed to spending tens of millions of pounds on the energy scheme. that prompted turmoil on the markets, u—turns on the tax plan, the sacking of a chancellor the direct result. it is you importantly have changed the energy support scheme, or at least they are going to review it. it always struck me is extraordinary that he would say now you would provide this huge universal and massively expensive subsidy for two years. maybe it is all we could have done over this winter. surely we can do better next year. it is worth spending an enormous amount of effort and frankly an enormous amount of money coming up with a better scheme. just three weeks after it was announced amid great fanfare, large parts of liz truss' tax cutting strategy, the core of economic policy, lie in ruins.

the question now is whether what her new chancellor has to offer will be enough to reassure investors here in the city of london and other major financial centres around the world. so far, the signs have been positive. the effective cost of government borrowing, which rose dramatically after the mini budget, fell sharply this morning, anticipating the government's latest u—turns. the pound rose against the dollar as well. the changes over the last few days, the new chancellor, have brought back most of the mini budget measures, are a positive thing in the sense that it reduces the amount of cost. but the uncertainty domains because now the credibility of this government is really open to question. mr hunt may have done enough by now to reassure investors in the short term at least, but after the roller—coaster ride sparked by the mini budget, as far as the markets are concerned, the government as a whole remains on probation.

joining me now is our business correspondent, darshani david. what is the latest in terms of the market reaction? has what is the latest in terms of the market reaction?— what is the latest in terms of the market reaction? as we were hearing in that report. _ market reaction? as we were hearing in that report, the _ market reaction? as we were hearing in that report, the markets _ market reaction? as we were hearing in that report, the markets have - in that report, the markets have cheered up on the back of frankie what is the greatest economic breaker in uk domestic policy history. those u—turns coming just a few weeks after the biggest tax cuts unveiled for 50 years. three fifths, of them are now on the scrapheap and that has calmed the markets because they were concerned that the uk was overstretching itself and borrowing too much and that pushes up borrowing costs for the government. it also tends to mean when you put more money into the economy that inflation is higher and the bank of england governor was warning about the interest rates having to go up further than expected. those sort of fears have been calmed to a certain degree, i should say. what we have

seen today has been shock and or in terms of economic policy—making but there has to be more to come. the reason i say that is because part of the concerns in the markets are how do you fund all these plans the government has because there is much that remains on the table, notjust him in —— in the immediate term, also the cap on —— abolishing the cap on bankers bonuses also stays. it is a bit of a bill for the government and they will have to find more money to get back on the path of balancing the books. all eyes now on halloween, notjust because of trick or treat, because thatis because of trick or treat, because that is the time when we were due more about the plans and it may not be that much of a treat for many because he has got spending in his view and what he means by that is perhaps more than the odd bit of penny—pinching here and there are we will possibly see a return to full—scale austerity.

will possibly see a return to full-scale austerity.- will possibly see a return to full-scale austerity. that is exact what i was _ full-scale austerity. that is exact what i was going _ full-scale austerity. that is exact what i was going to _ full-scale austerity. that is exact what i was going to ask- full-scale austerity. that is exact what i was going to ask you. - full-scale austerity. that is exact what i was going to ask you. it i full-scale austerity. that is exact what i was going to ask you. it is| what i was going to ask you. it is —— is it going to be in the territory of the sort of austerity we saw from george osborne? there are still many — we saw from george osborne? there are still many figures _ we saw from george osborne? there are still many figures that _ we saw from george osborne? there are still many figures that we - we saw from george osborne? turf are still many figures that we have to find, many gaps in this jigsaw puzzle, because when we look at what is already on the table, there are changes in terms of the tax measures. a lot of this will depend on what that independent watchdog, the office for budget responsibility, the men in the blue suits, as some call them, the ones who turned up at downing street for a hurried meeting, it all depends what they think can be 31st of october and how much more it thinks the government needs to know to make its —— make sure its finances are knocked back into shape. that will —— there are many factors to take into consideration. one is the movement in the market. every time the bond markets bill for interest in government borrowing. that

scenario is changing all the time and it will run and run.— scenario is changing all the time and it will run and run. thank you. so far, the — and it will run and run. thank you. so far, the markets _ and it will run and run. thank you. so far, the markets seem - and it will run and run. thank you. so far, the markets seem to - and it will run and run. thank you. so far, the markets seem to be i and it will run and run. thank you. i so far, the markets seem to be quite forgiving, what about the public? what about the tory mps, talking more about this is tim stanley, economist at the telegraph. —— economist. he might have restored confidence in the market but it will not sure up confidence among the public. tory mps are possibly viewers liz truss has had her entire manifesto wiped clean. just a couple of bits of it remain. jeremy corbyn change tack but also implied... sorry, it has been a long few days. everything jeremy hunt said in his statement implied that everything she had done was bad governance. the chancellor is clearly the man in charge and he

has told the country what she wanted to do was bad for the country. i think it comes down now to her. i think it comes down now to her. i think it comes down now to her. i think it is a question of at best weeks, very probably days, and i don't know anything more than you or anyone else walking past us now knows but i have covered four prime minister is on the way out and it really ultimately comes down to them and if they can stomach putting up a fight, even when it has become clear that they have lost and it is obvious that liz truss has lost. she now has to decide how much humiliation does she want to put herself through, did she want to become the face ofjeremy hunt's administration? become the face of jeremy hunt's administration?— become the face of jeremy hunt's administration? even if she has the stomach for — administration? even if she has the stomach for it, _ administration? even if she has the stomach for it, can _ administration? even if she has the stomach for it, can she _ administration? even if she has the stomach for it, can she survive - administration? even if she has the stomach for it, can she survive and | stomach for it, can she survive and what do you read into the fact that she has decided not to turn up to answer the urgent question that sir keir starmer has been granted? that makes perfect _ keir starmer has been granted? t'isgt makes perfect sense because it would have been embarrassing and she would have been embarrassing and she would have taken flak from her own mps. we will see the response from the

backbenches to whatjeremy hunt will say later. will they vent? will they welcome him? will they welcome him in a way that they recognise our has shifted to him question mark she will be watching this right now, thinking, can i continue being the face of an administration that is not my own but which has repudiated the basis on which i was elected? you said weeks, if not days, but everything comes back to the situation whereby there are rules to replace sitting prime minister is and currently those rules are that he cannot be unseated for a year. but that can change. there is also the possibility of the party uniting around a candidate who could effectively be anointed, parachuted in. can you see that happening because two everyone is working on the assumption that the latter will happen, she will resign, there will not have to be a process because it will be very quick because there

will be very quick because there will be very quick because there will be one alternative. ida will be very quick because there will be one alternative.- will be very quick because there will be one alternative. no one will stand against _ will be one alternative. no one will stand against them. _ will be one alternative. no one will stand against them. i _ will be one alternative. no one will stand against them. i would - will be one alternative. no one will stand against them. i would not. will be one alternative. no one will stand against them. i would not be certain of that but it will effectively be that a candidate arises from the party and the working assumptions are that might be rishi sunak, that might be a compromise candidate, possibly penny mordaunt, some people even think borisjohnson might come back. that is the assumption. but i am put in mind of what diplomatjohn gray said in the 18th—century, london became unsafe to walk around in for fear that it might be kidnapped and forced to serve in the candidate —— cabinet. it is not clear who wants to do thatjob. there are some people who would like it. nonetheless, you are now in the business, not of advancing a popular agenda but of managing austerity and rebuilding the party's reputation. what tory mps are thinking about now is not how we win the election, it is not how we win the election, it is how do we reduce the scale of a

labour landslide, so that i keep my secrecy mark that is to be seen to be running the economy well, it is not about doing anything for anyone who is now leader is going to be the face of whateverjeremy hunt is going to do in the next few months, which is going to be very painful and voters are probably going to come out presenting. rebuilding trust. we heard _ come out presenting. rebuilding trust. we heard at _ come out presenting. rebuilding trust. we heard at the _ come out presenting. rebuilding trust. we heard at the labour i come out presenting. rebuilding i trust. we heard at the labour party conference, keir starmer and rachel reeves saying, we are now the party of fiscal responsibility. the tories have now torn up what they were doing that gave rise to those claims but is that enough to be able to turn that back around? the tories would say the _ turn that back around? the tories would say the irony _ turn that back around? the tories would say the irony is _ turn that back around? the tories would say the irony is that - turn that back around? the tories would say the irony is that labour| would say the irony is that labour actually endorsed many of the elements of the mini budget, they did not endorse the controversial ones, but in some ways you could argue there was a few minutes in which labour was more pro—tax cutting than the conservative party, but nonetheless, they have

rejected... after 12 years, what are you going to bring to people and say this is what we have done, what is the tory story of what they have managed to do that says, ok, we clocked up a bit but we did do x, y and z? there are things like employment and reform is a universal credit, some will say that is very controversial, but there is this problem of after 12 years, so many iterations of conservatism, populist, fiscally conservative, now back to austerity, square one. find back to austerity, square one. and back to austerity, square one. and back to austerity would not create warning of it because just three weeks ago, the message was it is going to be tax cuts, that is how we are going to stoke the economy? there is also that thing to say to the people, there was this money you were expanding to come and now it has been taken away. find were expanding to come and now it has been taken away.— has been taken away. and the liz truss message _ has been taken away. and the liz truss message was _ has been taken away. and the liz truss message was that - has been taken away. and the liz truss message was that if - has been taken away. and the liz truss message was that if we - has been taken away. and the liz i truss message was that if we don't reverse the tax increases, there is

a recession. if the logic of what she said before the year ofjeremy hunt stands, we are headed towards a session under these plans. what they have said contradicts each other. they have given a great deal of ammunition to the opposition full stop no one here has a mandate. within the past year, the conservative party has conspired to remove a prime minister elected by the public in a landslide and they will end up removing a prime minister chosen by the membership and end up replacing her with a prime minister, rishi sunak, rejected by the membership. italy —— it will be very controversial with the public. there will be eight round of public pay increase sector strikes will topical be very controversial and the person in charge was not elected by anyone.

the scottish government has set out its plans for the economy. nicola sturgeon said it will lead to a fairer, greenerand sturgeon said it will lead to a fairer, greener and wealthier country. she confirmed plans to move to a new scottish currency if independence is achieved. lode to a new scottish currency if independence is achieved. we would create an independent _ independence is achieved. we would create an independent scottish - create an independent scottish central bank, a debt management office and significantly strengthen the scottish fiscal commission so that it effectively replicates the budget for responsibility. these institutions would operate independently of government and help ensure financial stability, transparent economic forecasting and performance monitoring and a responsible purposeful and efficient use of borrowing powers. second, we address the issue of currency, we confirmed that with the policy of the scottish government is to establish a scottish pound. we would

seek to do this as soon as practicable. the precise timing would be determined not by a fixed timetable but by a set of objective requirements and criteria, guided by advice from the central bank and subject to a decision by parliament in the overall interests of the country. this paper sets out in detail a careful and responsible phased approach, as well as the arrangements necessary to support a new currency and in the shorter term, continued use of sterling. fiur term, continued use of sterling. our scotland correspondent told us how nicola sturgeon thinks independence will happen. the nicola sturgeon thinks independence will ha - en. nicola sturgeon thinks independence will ha en. ., ., will happen. the timing of what nicola sturgeon _ will happen. the timing of what nicola sturgeon did, _ will happen. the timing of what nicola sturgeon did, she - will happen. the timing of what nicola sturgeon did, she had i nicola sturgeon did, she had originally been scheduled to speak at 11 o'clock, the same time as jeremy hunt, she delayed it until 12. that enabled her to offer a critique of whatjeremy hunt is planning to do as the chancellor of the exchequer and that i think kind

of put wind in her sales because she was able to talk about the situation at west mr and compare it to what the scottish government wants to do but as you said, there are still these unanswered questions really about how independence would happen. nicola sturgeon started to go some way towards answering those questions, so for example on the issue of a separate currency for scotland, she said that should happen as soon as practicable. he would not say exactly when that was but when she was pressed, she seemed to say that she hoped it would happen within five years and that is really important for her plan because without a separate currency, scotland could not rejoin the european union. lode scotland could not re'oin the european union._ scotland could not re'oin the european union. we have a busy afternoon ahead _ european union. we have a busy afternoon ahead at _ european union. we have a busy| afternoon ahead at westminster. european union. we have a busy i afternoon ahead at westminster. at 3:30pm, sir keir starmer is going to be asking an urgent question on the sacking of chancellor kwasi kwarteng full it will not be answered by liz

truss, instead, penny mordaunt will be answering that and following on from that, the statement from the chancellor, jeremy hunt on the unpicking of the mini budget. stay with us forfull unpicking of the mini budget. stay with us for full reaction and coverage throughout. now time for the weather. another afternoon of autumn sunshine to look out for across much of england and wales. some sharp showers across the far north of scotland and maybe into northern ireland, slowly easing away and blustery winds, some of those showers heavy with rumbles of thunder. furthersouth, showers heavy with rumbles of thunder. further south, the lightest wins and the warmest weather. top temperature 19 celsius, pretty good for this time of year. clear skies through the night, allowing for patchy fog to form in some places across england and wales, also allowing the temperatures to fall away. showers dialling —— dying away and may be parts of —— it'll be

eight chilly started tuesday morning. early morning fog will take its time to lift at this time of year. it will do so and for most of us, quite a dry, subtle, bright day. a northerly wind driving cloud across the east coast. the headlines.

the new chancellorjeremy hunt scraps most of last month's controversial mini budget, ditching the promise of a 1p cut in basic income tax — while help with energy bills will only last til april. the chancellor's emergency statement was designed to calm turmoil on the financial markets. early reaction there has been positive. the head of the metropolitan police says hundreds of his officers should have been sacked for gross misconduct. civilians rescued in the ukrainian capital — after an attack by russian kamikaze drones. scotland's first minister nicola sturgeon has set out her economic argument for leaving the uk — including plans to move to a scottish currency �*when the time is right�*

let's start with cricket — scotland have had a great start to their t20 world cup campaign in australia with an shock victory over west indies in the initial group stage. george munsey helped scotland to total of 160, making an unbeaten 66. west indies would have been confident of reaching their target but scotland were superb with the ball, and bowled them out forjust 118. ireland were in action against zimbabwe, in the days other t20 group b match. ireland won the toss and chose to field. zimbabwe made 174 for 7. sikandar raza top scoring with an unbeaten 82 from 48. ireland then battled with the bat and curtis campher top scored with 27 but they fell short of their target with zimbabwe winning by 31 runs.

meanwhile, england have continued their preparations for the t20 world cup by thrashing pakistan by six wickets in their final warm—up game. ben stokes showed glimpses of a return to form. the england test captain smashed 36 off 18 balls as england successfully chased down a target of 161, with 26 balls to spare in what was a 19—over game in brisbane. england face afghanistan in their first t20 world cup match on saturday. harlequins wing caden murley has been called into eddiejones�* england squad for the first time. he is one of six uncapped players preparing to face argentina, south africa, new zealand and japan this autumn. the other five potential debutants eddiejones has selected are northampton duo alex coles and david ribbans along with gloucester�*s val rapava ruskin, newcastle's george mcguigan and saracens hugh tizzard. following financial turmoil

at wasps and worcester, only one player, wasps back row jack willis, has been named in the 36—man squad from the troubled teams. every country once a settled domestic competition, and they want a vibrant national team. that is how rugby works. good, strong domestic competition under national team that fills the stadium. it gets people excited about it and then the domestic competition, sometimes, particularly when you are a young competition which most professional rugby competitions are, you start small, you expand, you get to big and you have to go back in. so i think this is almost like a natural process of developing the best competition. meanwhile, there's been a blow for scotland in the women's rugby world cup. full—back chloe rollie has been ruled out of the remainder of the tournament, after injuring her arm in their defeat against australia. the 27—year—old exeter chiefs back, has had successful surgery

and will remain with the team in new zealand this week as she begins her recovery. mclaren f1 boss zak brown has written a letter to the governing body the fia in which he says red bull breaking the budget cap "constitutes cheating". in the letter, which has been seen by bbc sport, addressed to the fia, brown writes, "any team who have overspent have gained an unfair advantage both in the current and following year's car development". the mclaren boss says he wants penalties that will hit red bull both financially and on the track. a leading referees�* charity has called for an inquiry into the touchline behaviour of managers. this comes after a number of incidents in the premier league at the weekend, including liverpool boss jurgen klopp being shown a red card, for berating a referee�*s assistant during the game, which he then apologised for. this happened on a weekend where merseyside youth league games were postponed, because of issues with referee abuse.

and finally, in the last few minutes, wasps rugby club have announced they have gone into administration, you can follow this story and all the latest on the bbc sport website. that�*s all the sport for now. the chancellor�*s emergency statement this morning was timed to reassure the markets and so far it seems, partly at least, to have succeeded. the pound was up against the dollar and the cost of government borrowing has fallen. so far the financial markets have reacted positivity, but what do voters think? our correspondentjo black has been talking to people in northampton south — a marginal seat, currently held by the conservatives. after weeks of political chaos and uncertainty, has the new chancellor�*s statement done anything to calm people�*s nerves? 62 miles north from westminster as the constituency of northampton south, a marginal seat

currently held by the tories. reaction from the markets seems key at the moment, so we came to this one in the town centre. the government has today decided to make further changes to the mini budget... as the chancellor spoke about the cap on energy prices now only being guaranteed until april, shaun the butcher here expressed some concerns. he says he has already losing 30 to a0 customers a week. with the energy bills, a lot of the elderly customers are worried. they are scared to put their cookers on or whatever, so they do not cook certain things, they only took hot meals about twice a week, and that is no good at all. people come here and they moan because we have to put things up 10p a bowl. we are struggling to buy things at the moment because prices have just gone through the roof, so something needs to be done drastically, because the footfall in this town has gone absolutely downhill.

the florist stall on this market has been here for over 100 years, and even though they have a loyal customer base, they are feeling the pinch. they are just worried. people are worried they will not be able to afford to live. the cost of living is constantly going up, they are worried they will not have that extra money, and flowers are a luxury item, something that people give for gifts, so they are just tightening their belts a little bit. the mini budget now looks very different. people here just want certainty, but they know there could be more anxious times ahead. joining us now is the former lib dem mp and minister of state for pensions, steve webb. welcome. thank you forjoining us. first, what is your reaction to the reversals we have seen today? it was very dramatic- _ reversals we have seen today? it was very dramatic. when _ reversals we have seen today? it was very dramatic. when the _ very dramatic. when the chancellor more or less says pretty much everything from the previous budget from three weeks ago has gone, bar

the national insurance change, that is a profound reversal and i think the most worrying thing from a household point of view is the uncertainty of what happens over next april. we have this £400 energy bill skene, £66 a month until then but there is talk of it being more targeted or means tested and my concern would be people in the middle, not the rich, who will be fine, and the poor who might be compensated, but people in michael not rich, not poor, who are struggling at the moment and might be excluded from any nuke scheme and that would hit them hard and the sorts of businesses you are hearing from in northamptonshire would see the knock—on effect because these consumers will not have money to spendin consumers will not have money to spend in the shops. haifa consumers will not have money to spend in the shops.— consumers will not have money to spend in the shops. how would you even define — spend in the shops. how would you even define where _ spend in the shops. how would you even define where the _ spend in the shops. how would you even define where the level- spend in the shops. how would you even define where the level of- spend in the shops. how would you even define where the level of help should be in terms of the middle? what we are seeing with energy bills and all other areas of the cost of living is that prices are rising at levels that are affecting every household.

levels that are affecting every household-— levels that are affecting every household. ~ , ,., , , ., household. absolutely. there is a reason why _ household. absolutely. there is a reason why this _ household. absolutely. there is a reason why this was _ household. absolutely. there is a reason why this was done - household. absolutely. there is a i reason why this was done universally to begin with and every household gets the £400 plus the more targeted stuff is that it�*s very difficult to quickly design something that draws potentially arbitrary lines because either you have a cliff edge, let�*s say, under20,000 either you have a cliff edge, let�*s say, under 20,000 a year, if you are £1 and you get help, if you are pounds over, you don�*t, and that would be terrible and unfair for people in just the wrong side of the line or you have a sliding scale in which case it gets complicated, so there is a good reason why it was done universally and i was struck by jeremy hunt�*s raise that the public finances cannot be exposed to the risk of the movement in wholesale gas prices but the consequences if the public finances will be exposed to that, the public�*s phone —— finances will have to be exposed, households, and they are less able to cope with the stop and the government. that is quite worrying. are we going back to the levels of

austerity we saw in the austerity years under the coalition government of which you were a number? i suspect some of this could be rather tougher. for example, there was a year during the coalition when inflation was higher than earnings growth, about 5%, and wages were three and a bit and there was a row in the coalition about whether people on benefits should get the full increase even though wages were rising fast and the coalition played 5.1 benefit increases in line with inflation so there is talk that might not happen this april and again, if you think about it, april just gone, pensioners and people on benefits got 3%, roughly and inflation was already 9% by then, so it�*s not as if next april, for pensioners, it�*s not some great giveaway for get 10% on their pensions, it�*s catching up for the pain of this year. this pensions, it's catching up for the pain of this year.— pensions, it's catching up for the pain of this year. as you say, there already the — pain of this year. as you say, there already the commitment _ pain of this year. as you say, there already the commitment to - pain of this year. as you say, there already the commitment to up - pain of this year. as you say, there already the commitment to up rate pensions in line with inflation and

there is a conversation around benefits, so when you look at the commitments that have currently been made and the discussions around areas that are in the sphere for consideration, can you see any obvious areas to save money in the public spending on the sort of scale required, or is this going to be a case of more tax rises. the chancellor has said there were the more difficult decisions ahead. i think it's going to be a very think it�*s going to be a very difficult cocktail to swallow. as you say, i�*m sure there will be tax rises we haven�*t heard about yet. the biggest thing apart from pensions that the government spends money on is paying people, nurses, doctors and civil servants and public servants and public sector pay is absolutely critical and it�*s very hard to say to a nurse or teacher or someone that you can add four or 5% when inflation is tender.

that is a hefty cut in living standards but that is where the money is and they will cut capital and that is an easy short term thing to do but it doesn�*t fit with the narrative investing for growth but you can always put off building a bridge or a road and there isn�*t an immediate household loser, but i think public sector pay will come under more pressure than it was going to. in under more pressure than it was auoin to. ., under more pressure than it was oiiin to, ., , going to. in that context, is there any prospect _ going to. in that context, is there any prospect of— going to. in that context, is there any prospect of real _ going to. in that context, is there any prospect of real growth? - going to. in that context, is there i any prospect of real growth? people are going to be having to tighten their belts because the cost of living is going up exponentially and potentially benefits won�*t keep pace with that. the potentially benefits won't keep pace with that. ., �* , ., with that. the government's argument would be growth _ with that. the government's argument would be growth coming _ with that. the government's argument would be growth coming from - would be growth coming from supply—side measures, such as freeing up the economy so planning would be one for example and if they let people generate more greenfield sites, but even if they did that and

they thought it was a good idea, these things take years to come through and there would be that trouble in parliament he would not see the fruit of that for years and we are in for a tough ride sadly for the next few years.— the next few years. when the coalition government had - the next few years. when the coalition government had its| coalition government had its austerity agenda it was something that had been, there was the political mandate for it, effectively.— political mandate for it, effectively. political mandate for it, effectivel . ., ' , political mandate for it, effectivel. ., ' , effectively. how different is this? you are right- _ effectively. how different is this? you are right. if— effectively. how different is this? you are right. if you _ effectively. how different is this? you are right. if you think - effectively. how different is this? you are right. if you think what i effectively. how different is this? i you are right. if you think what the 2019, hard to think that is what it was, but the 2019 conservative manifesto doesn�*t look like what we�*ve just heard and doesn�*t look much like the mini budget either. it's much like the mini budget either. it�*s hard to see where the political justification is and the irony is that the damage done to the governing party�*s poll ratings, and i don�*t say this from a partisan point of view, but objectively, it�*s very hard to get tough stuff through parliament if you have mps worried about losing their seats. a chancellor might have chosen to go

in hard on benefits and the conservative element under george osborne squeezed benefits hard in recent years but if you are a backbench mp sitting on a majority of five or 7000, are you going to vote for a real terms cut for key voters? you probably aren�*t. so the ability of the government to deliver this stuff is damaged by the government�*s lack of voter support. thank you very much, steve webb. with me now is sebastian payne, the whitehall editor at the financial times. picking up on what steve webb was saying aboutjust picking up on what steve webb was saying about just there, picking up on what steve webb was saying aboutjust there, saying there is a real difference as this government heads into that sort of territory in terms of where the coalition government was with its mandate and party pulling together. this is very different, isn�*t it? hugely and if you think about the situation we are in now, jeremy hunt has announced a wholescale u—turn and trust comics is dead. but the

consequences will exist for a long period of time and even with everything reversed, there will be a big black hole in the public finances —— trussonomics. everyone is trying to work out the implications of what happened this morning, but there was a talk of a £20 billion black hole. finding that kind of money can be done but it�*s not easy and when jeremy kind of money can be done but it�*s not easy and whenjeremy hunt is going around whitehall departments asking for cuts, be it in defence or other areas of domestic services, thatis other areas of domestic services, that is going to be very painful and when the markets look at this, they will say, hang on a minute, can this get through the house of commons? we�*ve seen this with the debate about benefits thatjeremy hunt has said he would like to see benefits improved in some way and he wants to help the poorest in society stop you said that yesterday on the bbc but if they are not uprated, that will struggle to get through mps and there will always be a lobby group you will not go with things and that is the difference from 2010, the lib

dems and conservatives were both endow on a joint platform to shrink the state and reduce spending, but now they are just trying to survive and it�*s not clear exactly how they will do it. and it's not clear exactly how they will do it. , ., ., , ., will do it. currently, at least, one ofthe will do it. currently, at least, one of the constituencies _ will do it. currently, at least, one of the constituencies they - will do it. currently, at least, one of the constituencies they are - of the constituencies they are addressing, the markets, are responding well.— addressing, the markets, are resondin well. , , responding well. yes, the response to mr hunt's _ responding well. yes, the response to mr hunt's statement _ responding well. yes, the response to mr hunt's statement this - responding well. yes, the response l to mr hunt's statement this morning to mr hunt�*s statement this morning has been favourable and the pound has been favourable and the pound has been favourable and the pound has been trading higher against the dollar and we�*ve also seen government borrowing costs have dropped, still significant higher than before this whole project began, but yes, they do seem to be reassured by what the chancellor has said, but as i said earlier, this is not the end of it. mr hunt has more to explain and will appear in the house of commons later and very soon he will have to be set out those difficult spending cuts across whitehall. that is what the markets will be looking out for next. then there is the bigger question about there is the bigger question about the future of the prime minister and how that plays into confidence as well because if the markets respond well, essentiallyjeremy hunt is now

the prime minister. she well, essentially jeremy hunt is now the prime minister.— the prime minister. she had an opportunity. — the prime minister. she had an opportunity. i _ the prime minister. she had an opportunity, i don't _ the prime minister. she had an opportunity, i don't know- the prime minister. she had an opportunity, i don't know if- the prime minister. she had an i opportunity, i don't know if that's opportunity, i don�*t know if that�*s the right way to describe it, but an invitation to go to the commons to set out her stall because the leader of the opposition, sir keir starmer, has been granted an urgent question about the sacking of the chancellor and she chose not to take that up and she chose not to take that up and instead penny mordaunt is going. what you read into that? it�*s a and instead penny mordaunt is going. what you read into that?— what you read into that? it's a sign of how weak _ what you read into that? it's a sign of how weak the _ what you read into that? it's a sign of how weak the prime _ what you read into that? it's a sign of how weak the prime minister - what you read into that? it's a sign| of how weak the prime minister has become because she�*s not able to go in public and address the issue. she did go to the house of commons, and it�*s a widespread view amongst conservative mps that it would have been a very difficult time for and the fact she has gone is added to the fact she has gone is added to the idea that george osborne has said that she is the prime minister in name only, and penny mordaunt will go to the dispatch box in an hour�*s time and be essentially repeating whatjeremy hunt said, that we are doing this to stabilise the markets and show we are fiscally prudent and show there is a plan but what she won�*t be answering is the fact that liz truss�*s purpose for

being prime minister has gone. she stood on a platform of radically reshaping the state, cutting taxes, but all that is now gone and when we get through this bit of turbulence, if liz truss can survive this week, then what is the point of a premiership? what legislation will she pass? what budget can she possibly get through? what is if there is another crisis and where is her authority was not the only thing she has is the confidence and jeremy hunt is the markets reacted, so it shows things are bad for liz truss and she can�*t duck this for ever. she has prime minister�*s questions on wednesday so she has 48 hours to work out what she will say to mps. what do you think will happen in those 48 hours? it�*s worth remembering that this is 40 days into administration, and as you say, the figures we are going to see on this key day, who are standing and speaking to the government, are people who lost against liz truss in that leadership contest.— that leadership contest. which is extraordinary — that leadership contest. which is extraordinary and _ that leadership contest. which is extraordinary and if _ that leadership contest. which is extraordinary and if we - that leadership contest. which is extraordinary and if we think - that leadership contest. which is| extraordinary and if we think back to what the former chancellor rishi

sunak said, pretty much everything you ending the contest was born into reality and mr hunt, the new chancellor backed rishi sunak in that contest and we�*ve not heard much from rishi sunak although his supporters, his outriders are hitting the phones on the whatsapp groups and trying to take soundings, in the westminster parlance, to see what people are thinking in case liz truss has to go. this is the point. it's truss has to go. this is the point. it�*s a very comical situation because liz truss run on a platform and the platform has been dismantled, plank by plank byjeremy hunt, so there is nothing left for her at the moment. there is a question aboutjust how sustainable that is. the mood amongst mps is pretty dire at the moment and i�*ve been spending most of today speaking to them over in parliament and i don�*t think i�*ve spoken to anyone in the past 12 hours who thinks liz truss can survive this. it�*s just a question of when, not if. one of her own cabinet minister said to me this morning about when she goes, and with all of these things in the tory party, it�*s about the mechanism and how you get rid of her. will it be

the cabinet or mps? the fact is we have never seen a draining of political authority like this really since the soo is of 1956 when a primer is the�*s key policy platform was pulled away from them and that�*s what we�*ve seen with least dross. what would your betting be on how long she can survive? i think things are so volatile that i don�*t want to make a prediction that if she gets through the next 48 hours, which are totally critical for her totally criticalfor her premiership, then i think she gets to the end of the month and that big fiscal event on october the 31st and then we see where we get to but i think, really, we should hang tight for 48 hours because things could move very quickly but they could also stumble on. i know that�*s not a clear answer, also stumble on. i know that�*s not a clearanswer, but also stumble on. i know that�*s not a clear answer, but it�*s very free broil at the moment. it clear answer, but it's very free broil at the moment.— clear answer, but it's very free broil at the moment. it is. thank ou ve broil at the moment. it is. thank you very much- _ broil at the moment. it is. thank you very much. that's _ broil at the moment. it is. thank you very much. that's all - broil at the moment. it is. thank you very much. that's all from i broil at the moment. it is. thank i you very much. that's all from here you very much. that�*s all from here for now, but it�*s a very busy day in westminster and we will be hearing that urgent question from sir keir starmer. that will be on 35 minutes

or so. starmer. that will be on 35 minutes orso. he starmer. that will be on 35 minutes or so. he is not going to have a liz truss on the opposite bench and it will be penny mordaunt and then after that it will be the statement from the chancellor, jeremy hunt, so plenty more red but for now, i will hand you back to the studio. four explosions have been reported in the city of kyiv. and its mayor, vitaly klitschko, says residential buildings have been damaged. a week ago gf was hit by a wave of russian missiles at rush hour, part of nationwide attacks which left 19 dead. pauladams nationwide attacks which left 19 dead. paul adams reports from kiel. ukraine�*s capital under attack again. the city�*s defences responding quickly. but the drones came thick and fast. of 28... five got through.

one tore this elegant century old apartment building in two. half of it is gone, people werejust getting up. we heard shooting from the underground parking, the drones. we thought this looks like something... i think it is terrible, it is like a terrorist act. i heard it at six o'clock in the morning, i couldn't sleep and then i heard the second one which comes out of nowhere. people running all over the place, they don't know what to do or where to hide any more. it has been a few hours since the explosion in the city, but there is still frantic rescue work going on. we know one person died here, there may well be more. this is the second time in a week that the centre of kyiv has been hit. for one elderly resident, a narrow escape. her balconyjust a few feet from the impact. but three people died here, including a young couple. the woman, six months pregnant. what happens right now in our town,

it is a terror attack. it is here in the historical centre, innocent civilians. less people freezing in the winter, less people doing without electricity. the russians want to make a human catastrophe in our hometown. this, a piece of one of the weapons used. iranian made so—called kamimkaze attack drones. low flying, hard to shoot down. russia has used hundreds in recent weeks. in kyiv, they call them mopeds. one of the buildings hit today housed one of ukraine�*s national energy company. national infrastructure companies were hit outside the capital, too. moscow�*s assault on daily life goes on. pauladams, bbc news, kyiv.

the manchester united footballer, mason greenwood, has been remanded in custody after appearing in court charged with attempted rape. the 21—year—old is also charged with assault and engaging in controlling and coercive behaviour. his next court appearance is november 21st. our correspondent was in court today. tell us more about what happened. yes, mason greenwood only spoke to confirm his name and address during the hearing which started at ten past ten this morning on court number five at manchester magistrates�* court. in court we heard he faces three charges relating to the same woman over a four—year period, attempted rate, assault and repeatedly engaging in controlling and coercive behaviour. member of mason greenwood�*s family were in court for the hearing at the end of the hearing were shown the districtjudge mark hatfield remanded mason greenwood in custody until his next court appearance. when that happened, mason greenwood

rocked —— looked over to his mother. he will appear at crown court on november the 24th and will be held in prison until then. idols? november the 24th and will be held in prison untilthen._ in prison untilthen. now look at the weather _ in prison untilthen. now look at the weather with _ in prison untilthen. now look at the weather with louise. - overnight rain clearing away and for many of us an afternoon of sunny spells to look forward to. not a bad start for the working week, actually. by day time, it will feel mild in the sunshine but a slight change from the latter stages of wednesday towards the end of the week with areas of low pressure making it very unsettled with some sharp showers around. we have still got showers from this low and it�*s starting to trail away, still blustery winds on the southern flank, so some showers are really across parts of scotland, in particular the northern and western isles later this afternoon. early morning cloud eases away from essex and kent where the best of the sunshine is coming through across

england and wales and with lighter winds here, temperatures will respond. you can see where the sharp showers are sitting, northern and western isles and there will be one or two in central scotland as well, accompanied by blustery winds. top temperatures around 13 or 14 celsius but in the sunshine we could see highs of 19 degrees. with clear skies by day leading to clear skies overnight and light winds, we could see patchy fog across parts of northern england, the midlands and the south—east for a time and if that happens with those light winds, it will be slow to lift. it will be a chilly start to the day, particularly across england and wales with low single figures first thing. fog around lifts and we see another dry, settled, sunny story. a northerly wind could drag on a little more cloud spilling off the north sea coast in the afternoon but still pleasant enough and still the temperatures in the mid to high teens which is pretty good for this time of year. however, as we move to the middle of the week, this area of

low pressure will dominate the weather story and by the end of the afternoon we will see rain pushing into the south—west, just like the last couple of days. it means on wednesday for scotland and northern england and much of eastern england, which should see a good deal of dry weather, albeit cloudy skies and recently but some of the showers could be heavy as we go through the day will top temperatures not quite as warm, looking at around nine or 16 degrees. and it looks likely that sunny spells and blustery showers are set to continue to stay with us right through the working week, but those temperatures are still on the mild side for the end of october.

this is bbc news. the headlines... the new chancellorjeremy hunt scraps most of last month�*s controversial mini budget, ditching the promise of a 1p 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 chancellor�*s emergency 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 will pay a lasting price through economic instability and rising mortgage rates for some time to come. and in other news... shortly, we will hear from shortly, we will hearfrom sir keir starmer in the house of commons. he head of the metropolitan police says hundreds of his officers should have been sacked for gross misconduct. scotland�*s first minister nicola sturgeon has set out her economic argument for leaving the uk — mason greenwood has been remanded in custody after appearing in court. scotland�*s first minister nicola sturgeon has set out her economic argument for leaving the uk — including plans to move to a scottish currency �*when the time is right�*.

good afternoon and welcome to bbc news. the new chancellor, jeremy hunt, has scrapped almost all of the key measures in last month�*s controversial mini—budget, in the latest in a series of government u—turns. in an emergency statement, he abandoned indefinitely the planned 1p cut in the basic rate of income tax, that had been due to come in next year. help with energy bills will now only last until next april instead of for two years and then will be reviewed. mr hunt claimed all today�*s announcements will save £32 billion a year but he warned there are more difficult decisions ahead on tax and spending to cut government debt. well, he�*ll address mps in the commons later this afternoon. so far, the markets have

reacted positively. but labour says the government is in a state of panic. in the next half—hour, sir keir starmer is going to be asking an urgent question in the commons. liz truss has decided she will not be there to answer the question, instead penny mordaunt will respond to it. here�*s our political correspondent, helen catt, with our lead report. morning, chancellor. which measures will you be announcing today? a barrage of questions for the new chancellor, who decided the markets could not wait any longer for some answers as he comprehensively closed the door on the government�*s mini budget. firstly, we will reverse almost all of the tax measures announced in the growth plan three weeks ago that have not started parliamentary legislation. the basic rate of income tax will remain at 20% and will do so indefinitely until economic circumstances allow for it to be cut.

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. the mini budget was delivered by the previous chancellor, kwasi kwarteng, on the 23rd of september. it started unravelling on the 3rd of october when the government backtracked on cutting the 45p top rate of tax. then on friday the 14th of october, the previous chancellor was sacked and a pledge not to raise corporation tax, too. then today the income tax cuts stopped indefinitely two year promise on energy bills now and were guaranteed until april. what remains of the plans, the cut to national insurance and stamp duty. the most important objective for 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. outside parliament, opposition politicians lined up to say it was too late. what has been the point of all of this? we have had 24 days since the mini budget, almost all that now scrapped, but huge economic pain lumped on to people across of these islands. the damage has already been done. thousands of people are already |facing hundreds of pounds extra j on their mortgage payments, pensioners will be worried . about their pensions, l and now we're hearing that there are potentially- going to be cuts to public services which will leave many more people concerned about what _ that means for them. so attention turns again to number ten. the economic strategy on which liz truss won herjob has been ripped up. she is in an impossible position where the survival of the government is dependent on publicly torching everything that she believes,

so today is a humiliation for her, it is a humiliation for the government. the challenge for liz truss is to convince her own mps that she has more to offer as prime minister. many of them have privately been saying theyjust can�*t see a way back. a few of them are starting to say it publicly now, too. if your confidence levels as prime minister are in single figures, the position is frankly irretrievable, and we don't have time between now and the next two years to waste in seeing if we can repair liz as our prime minister. the chancellor will face questions about his statement from the mps in the commons later as his boss faces continued questions about her future. what is your reaction to what is happening, in terms of tearing up

that so—called mini budget? it is happening, in terms of tearing up that so-called mini budget? it is a real embarrassment. _ that so-called mini budget? it is a | real embarrassment. trussonomics that so—called mini budget? it 3 —. real embarrassment. trussonomics has not survived the day. essentially though what they have done is i think broadly sensible, so if you think broadly sensible, so if you think about where we were last week, we had a huge group of unfunded tax cuts, we had a cut to income tax that was in the works, planned corporation tax cuts, now that has been reversed and so the government can with a sort of easier... it is easierfor the can with a sort of easier... it is easier for the government to say they are doing something to regain theirfiscal they are doing something to regain their fiscal credibility. it is easier for _ their fiscal credibility. it is easier for the _ their fiscal credibility. it is easier for the government when it is facing the markets but it is another story altogether when it is facing the politicians, the politics of it, and also voters.— the politicians, the politics of it, and also voters. completely. i think the next question _

and also voters. completely. i think the next question is, _ and also voters. completely. i think the next question is, will— and also voters. completely. i think the next question is, will the - the next question is, will the government be able to follow through with what it is saying it is going to do? there is still a big fiscal hole, even with these reversals we have seen, and sojeremy hunt as chancellor is saying there are going to be spending cuts to come, may be further tax rises. the question is whether this government can get those through parliament was up if not, we could be taking a step backwards in a few weeks. i not, we could be taking a step backwards in a few weeks. i spoke to the former pensions _ backwards in a few weeks. i spoke to the former pensions minister, - backwards in a few weeks. i spoke to the former pensions minister, steve | the former pensions minister, steve webster, who served in the coalition government and the austerity years and he said that what is looming he thinks is going to be tougher even than those austerity years because of where inflation is and also any political sense because of where the politics is. it political sense because of where the olitics is. , ., ., , , politics is. it is going to be very, very difficult- — politics is. it is going to be very, very difficult. if— politics is. it is going to be very, very difficult. if you _ politics is. it is going to be very, very difficult. if you think- politics is. it is going to be very, very difficult. if you think about | very difficult. if you think about government departments, higher wage bills than expected, higher inflation, that is eating into their

budgets, they are already less generous than the government first planned. if using about inflation, it is high. and so if you decide, the government decides, not to increase benefits with inflation then you are potentially hurting some of the most vulnerable in the population, that is going to be very practically difficult for lots of households but also politically toxic. �* , households but also politically toxic. �* _ ., ., toxic. and by removing those tax cuts and keeping _ toxic. and by removing those tax cuts and keeping taxation - toxic. and by removing those tax cuts and keeping taxation levelsl toxic. and by removing those tax i cuts and keeping taxation levels at that record high, basically, the highest level for 70 years, the position of liz truss was to say that tax at those levels means there cannot be economic growth. what are the prospects for economic growth now? i the prospects for economic growth now? . , the prospects for economic growth now? ., ,. , ., the prospects for economic growth now? ,. , ., ., now? i was always sceptical that all the tax cuts — now? i was always sceptical that all the tax cuts would be _ now? i was always sceptical that all the tax cuts would be the _ now? i was always sceptical that all the tax cuts would be the recipe i now? i was always sceptical that all the tax cuts would be the recipe for unleashing growth. really, the fact that the tax rate is very high, in the share of the economy, it is more

of a symptom of the low growth than a cause. in terms of the prospects for growth, growth is hard. growth requires painful reforms, it would be wonderful if the process will getting infrastructure projects through would be easily bet, it would be wonderful if there could be some planning reform, those things are difficult and the question now is, does the liz truss administration have political credibility, does it have the ability to push those harder truly growth boosting things through? i am sce tical. growth boosting things through? i am sceptical- and — growth boosting things through? i am sceptical. and in _ growth boosting things through? i am sceptical. and in terms of where inflation goes, there was a lot of discussion about the bank of england and the government pulling in different directions with the bank of england�*s remit to try to keep inflation at 2%, whereas it is just under 10% currently. and the measure

for trying to achieve that is higher interest rates and with the government pouring money into the economy, pulling on the opposite direction, now they are pulling on the same direction, what would your sense be of where inflation and interest rates go? i sense be of where inflation and interest rates go?— sense be of where inflation and interest rates go? i think where we are is that the _ interest rates go? i think where we are is that the size _ interest rates go? i think where we are is that the size of _ interest rates go? i think where we are is that the size of the _ interest rates go? i think where we are is that the size of the fiscal - are is that the size of the fiscal stimulus, as it were, has been reduced. that means that the bank of england, monetary, won�*t have to act as aggressively and so any kind of medium—term, i don�*t think interest rates will rise as quickly as they would have done had we not had the u—turn this morning. that said, this is all very complicated. the government has said that it is revising its package of support for households, for the energy bills come next spring, if that means that essentially they are going to allow energy prices to rise and try and hand—out help for the poorest

households, then that will increase measured inflation in the short run and so you have all these strange dynamics pushing in opposite directions. i think for the near term, inflation isjust going to be very high and interest rates are on the way up. very high and interest rates are on the way up— the way up. thank you very much indeed for _ the way up. thank you very much indeed forjoining _ the way up. thank you very much indeed forjoining us. _ the way up. thank you very much indeed forjoining us. joining - the way up. thank you very much indeed forjoining us. joining me| indeed forjoining us. joining me now is our chief political correspondent. we were discussing the economics of it. that is one thing. the politics, where do the politics stand right now? it is not a ood politics stand right now? it is not a good position _ politics stand right now? it is not a good position for— politics stand right now? it is not a good position for the _ politics stand right now? it is not a good position for the prime - a good position for the prime minister at all. i think it is just worth remembering how much of what we have heard from liz truss since she became prime minister has been thrown in the shredder. this is the prime minister who spent ages saying you cannot tax your way to economic growth. the resolution foundation have looked at the decisions made

this morning and said that means the tax burden is heading to its highest since the 1950s. the prime minister last week was goading the opposition at prime minister yes questions saying you only have a six—month plan for energy we have committed to you —— to two years but not any more. so it feels like liz truss�* authority and credibility have been shotin authority and credibility have been shot in the most spectacular fashion. jeremy hunt has come in and reallyjustjunked everything she really just junked everything she stood reallyjustjunked everything she stood for as prime minister. where does that leave her? there are a couple of things at work in her favour actually. one is that a lot of conservative mps i have been speaking to are desperate for stability and they mayjust speaking to are desperate for stability and they may just want to give jeremy stability and they may just want to givejeremy hunt�*s new stability and they may just want to give jeremy hunt�*s new strategy a bit of time to see if it works. the second thing that works in her

favour is that there is not an obvious answer to the question of what comes after liz truss? there are names being touted as her successor, ben wallace, rishi sunak, penny mordaunt, but none of them are agreeable to all wings of the party. if liz truss was brought down, they would still be a fight over who takes over. however, that said, i think the mood in the conservative party is as because i have seen it over the last few years. there are a growing number of mps who willjust say, it is done, liz truss is not going to recover from this, there say, it is done, liz truss is not going to recoverfrom this, there is no way that she can lead them into another general election, they would say. i think it is a question of when, and not yes, she is removed from office —— they think. among those mps, any last 24—hours, there are an increasing members who think it is a matter of weeks, potentially days, before liz truss has to leave downing street but how that happens, nobody is certain. ih

downing street but how that happens, nobody is certain.— nobody is certain. in the situation we are seeing _ nobody is certain. in the situation we are seeing today _ nobody is certain. in the situation we are seeing today where - nobody is certain. in the situation we are seeing today where she i nobody is certain. in the situation we are seeing today where she is| we are seeing today where she is choosing not to go to the house of commons to answer questions from sir keir starmer, we are only 48—hour is away from prime minister�*s questions. every time she comes out, it�*ll be the same story facing the arguments you have been outlining. they are turning her own lines on herself. ., ., herself. the argument the labour pa is herself. the argument the labour party is making — herself. the argument the labour party is making this _ herself. the argument the labour party is making this afternoon - herself. the argument the labour party is making this afternoon is i party is making this afternoon is the prime minister is scared to turn up, using that word frit, to say why is she not turning up to sell that vision? i is she not turning up to sell that vision? ., , , ., ., vision? i need to interrupt you for a moment- _ well, welcome to viewers on bbc two for our special coverage of events in westminster, where the new chancellorjeremy hunt will be addressing mps in the house of commons about his decision, announced this morning, to scrap

almost all of the key measures announced by his predecessor, kwasi kwarteng, in last