last obr because this is not the last obr before the next election. this is their view of the situation today. it is a radically different view from their last report in march. if the election is in two years, there will be four more reports between now and then. let's see what happens but we will put financial stability first. . n . but we will put financial stability first. . a ., ., ~ but we will put financial stability first. . a ., ., but we will put financial stability first. . n . . ~ first. pat mcfadden, thank you. when we were sitting _ first. pat mcfadden, thank you. when we were sitting here _ first. pat mcfadden, thank you. when we were sitting here at _ first. pat mcfadden, thank you. when we were sitting here at the _ first. pat mcfadden, thank you. when we were sitting here at the end - first. pat mcfadden, thank you. when we were sitting here at the end of - we were sitting here at the end of september, the 23rd, for the mini—budget, we spoke to jane foley. she said then that her clients were panicking to some extent as to what they saw in terms of market reaction. jane joins us now. they saw in terms of market reaction. janejoins us now. what they saw in terms of market reaction. jane joins us now. what is the reaction today? reaction. jane joins us now. what is the reaction today?— the reaction today? thankfully, far more boring. _ the reaction today? thankfully, far more boring, which _ the reaction today? thankfully, far more boring, which is— the reaction today? thankfully, far more boring, which is what - the reaction today? thankfully, far more boring, which is what the - more boring, which is what the chancellor had tried to achieve. we have a series of reports over the last weeks. what those for school

disparity measures would be and the size of the fiscal black hole, 50 billion within the realms of what we have been fed. in terms of market reaction, what we have our guilt selling moderately, by a small amount. the market price a little bit more in terms of an interest rate hike from the bank of england than they were this morning, over 50 basis points. probably because a lot of the austerity measures have been back loaded to the end of this fiscal period. that means they will not be hitting soon, which probably leaves the bank of england more work to do in terms of bringing down inflation through monetary policy because fiscal policy might not pull as hard. but compared with september, it is a calmer market reaction.

you say boring compared with the end of september. some of the pain has been pushed a little bit into the future. do you think the markets broadly have been calm, to the extent thatjeremy hunt and rishi sunak were hoping? extent that jeremy hunt and rishi sunak were hoping?— sunak were hoping? sterling is a little bit lower _ sunak were hoping? sterling is a little bit lower from _ sunak were hoping? sterling is a little bit lower from the - little bit lower from the announcement. that would be a bit of announcement. that would be a bit of a disappointment for them. we have had a lot of dollar weakness. that has brought up the price of sterling to the us dollar. it looks better thanit to the us dollar. it looks better than it did a couple of weeks ago. the weakness of sterling has not been huge but it is therefore that thatis been huge but it is therefore that that is probably disappointment but it probably reflects the blocking eskimo the sourness of uk fundamentals. we know from the obr the forecast of recession is here already, more or less in line with what the bank of england has predicted. no huge shocks but still a very gloomy outlook and a very

difficult situation in terms of the cost of living crisis for the uk economy. cost of living crisis for the uk economy-— cost of living crisis for the uk econom . ., ~ ,, , . economy. thank you very much. pickin: economy. thank you very much. picking up _ economy. thank you very much. picking up on — economy. thank you very much. picking up on that _ economy. thank you very much. picking up on that final - economy. thank you very much. picking up on that final point, i economy. thank you very much. l picking up on that final point, the fundamentals in the uk economy, certainly from the perspective of jane foley, they are very weak and very gloomy. there will be a sense of how long the recession will last. jeremy hunt hoping it will be shorter than we initially thought and not as deep. then politically this government will be in very big trouble. if this government will be in very big trouble. , . ., this government will be in very big trouble. , h, ., ., trouble. if they can turn around in a coule trouble. if they can turn around in a coume of _ trouble. if they can turn around in a coume of years _ trouble. if they can turn around in a couple of years and _ trouble. if they can turn around in a couple of years and say - trouble. if they can turn around in a couple of years and say the - a couple of years and say the measures we take meant a recession was more shallow, they can say they made a difference, i suppose. it is alwa s made a difference, i suppose. it is always very _ made a difference, i suppose. it is always very difficult. people are always very difficult. people are always feeling that pain. looking at this, the overwhelming _ always feeling that pain. looking at this, the overwhelming figure, - always feeling that pain. looking at this, the overwhelming figure, the | this, the overwhelming figure, the enormous drop in living standards, which will go on for some time. that is something no politician can gloss

over. people will feel every day between now and the general election. what they are doing, they are slightly crossing their fingers and hoping actually the wall, as we'll hope, will end and energy prices make drop. it is we'll hope, will end and energy prices make drop.— prices make drop. it is hoped inflation will _ prices make drop. it is hoped inflation will come _ prices make drop. it is hoped inflation will come down. - prices make drop. it is hoped inflation will come down. is l prices make drop. it is hoped i inflation will come down. is that strategy? inflation will come down. is that strate: ? , , strategy? cross your fingers. it is more interesting _ strategy? cross your fingers. it is more interesting than _ strategy? cross your fingers. it is more interesting than that. - strategy? cross your fingers. it is - more interesting than that. normally getting _ more interesting than that. normally getting down inflation is the job of the bank_ getting down inflation is the job of the bank of england. what we saw from the _ the bank of england. what we saw from the chancellor is, it is my financial— from the chancellor is, it is my financial strategy. that is not essentially the case.- financial strategy. that is not essentially the case. saying it is down to him- — essentially the case. saying it is down to him. down _ essentially the case. saying it is down to him. down to _ essentially the case. saying it is down to him. down to us - essentially the case. saying it is i down to him. down to us because essentially the case. saying it is - down to him. down to us because it is forecast — down to him. down to us because it is forecast to _ down to him. down to us because it is forecast to come _ down to him. down to us because it is forecast to come down. - down to him. down to us because it is forecast to come down. maybe i is forecast to come down. maybe below_ is forecast to come down. maybe below that. this is quite important. when _ below that. this is quite important. when energy prices drop out, the inflation — when energy prices drop out, the inflation figure quickly goes into reverse — inflation figure quickly goes into reverse. do inflation figure quickly goes into reverse. ,, inflation figure quickly goes into reverse. , ., ., inflation figure quickly goes into reverse. y., ., ., inflation figure quickly goes into reverse. ., ., , reverse. do you need to do these measures — reverse. do you need to do these measures in _ reverse. do you need to do these measures in the _ reverse. do you need to do these

measures in the way _ reverse. do you need to do these measures in the way you - reverse. do you need to do these | measures in the way you are? you reverse. do you need to do these - measures in the way you are? you do because of the _ measures in the way you are? you do because of the interest _ measures in the way you are? you do because of the interest rate - measures in the way you are? you do because of the interest rate hold - measures in the way you are? you do because of the interest rate hold on | because of the interest rate hold on public _ because of the interest rate hold on public finances. we because of the interest rate hold on public finances.— public finances. we will probably him in a year _ public finances. we will probably him in a year and _ public finances. we will probably him in a year and inflation - public finances. we will probably him in a year and inflation will i public finances. we will probably | him in a year and inflation will be zero or —i. it doesn't mean that chunk of money people spend on energy bills can never be a step change in terms of disposable income. the capital gains allowance came way down from 12,000, to 9000, to 3000. some backbenchers will say that is not particularly tory thing to do. there is an assumption that house prices will full 9%. some details that the obr is modelling down there. he details that the obr is modelling down there-— down there. he did not really mention council— down there. he did not really mention council tax. - down there. he did not really mention council tax. but - down there. he did not really mention council tax. but it i down there. he did not really mention council tax. but it is| down there. he did not really - mention council tax. but it is built he is _ mention council tax. but it is built he is allowing council taxes to protect — he is allowing council taxes to protect rates without a referendum. it protect rates without a referendum. it could _ protect rates without a referendum. it could go _ protect rates without a referendum. it could go up, i do not know their cap, 5%, potentially. if you want to know more about the economy and

their statement, know more about the economy and theirstatement, go know more about the economy and their statement, go over to bbc sounds. that is a special. it covers the statement from the chancellor and the response from that shadow chancellor. let's get a response from the snp.— chancellor. let's get a response from the snp. your response? my resonse from the snp. your response? my response is _ from the snp. your response? my response is overwhelming - response is overwhelming disappointment. anyone waking up worrying about how to pay bills and find a way through the cost of living crisis in the next few months and years ahead will still be left wondering that. the fundamental fact of this is for all the increases in spending and cash terms announced by the chancellor today, they had been eclipsed by the rate of inflation which has hit a 41 year high today.

that is being more than eroded by inflation. ., , inflation. you say disappointment, richard. inflation. you say disappointment, richard- you _ inflation. you say disappointment, richard. you will _ inflation. you say disappointment, richard. you will have _ inflation. you say disappointment, richard. you will have heard - inflation. you say disappointment, | richard. you will have heard jeremy hunt announcing an extension, a continuation of support in terms of the energy price guarantee, albeit a little bit higher. it is going to continue for another year and then targeted support for people who are on means tested benefits, for pensioners and to those on disability. pensioners and to those on disability-— pensioners and to those on disabili . , ., , , disability. presumably you welcome mat? letter— disability. presumably you welcome mat? letter and _ disability. presumably you welcome mat? letter and if _ disability. presumably you welcome mat? letter and if it _ disability. presumably you welcome mat? letter and if it wasn't - mat? letter and if it wasn't happening article. it is still a partial litigation that people are —— it is still a partial litigation of costs people are facing. it is aareed of costs people are facing. it is agreed that — of costs people are facing. it is agreed that is _ of costs people are facing. it is agreed that is the _ of costs people are facing. it is agreed that is the main root cause of high inflation. hat agreed that is the main root cause of high inflation.— of high inflation. not the only cause. self-inflicted - of high inflation. not the only cause. self-inflicted wounds l of high inflation. not the only i cause. self-inflicted wounds like cause. self—inflicted wounds like the liz truss consequential... also

brexit. that is not diminishing the headwinds. let's not let the government entirely off the hook that it government entirely off the hook thatitis government entirely off the hook that it is entirely down to global factors. the aim of the chancellor was, his word sadly did not match up to the actions. three measures he could have taken to place the burden of the taxation onto the broader shoulders. 0ne of the taxation onto the broader shoulders. one of those would have been to expand the windfall tax, not just about oil, gas and energy companies. they could expand it to people like amusan. thea;r companies. they could expand it to people like amusan.— companies. they could expand it to people like amusan. they are going to be bringing _ people like amusan. they are going to be bringing in the _ people like amusan. they are going to be bringing in the region - people like amusan. they are going to be bringing in the region of- people like amusan. they are going to be bringing in the region of £14 l to be bringing in the region of £14 billion. —— people like amusan. he billion. -- people like amusan. he could billion. —— people like amusan. he: could also have changed the situation with non doms. also taxing share buy—backs. a50 5 billion

consolidation package, split 50—50 between spending cuts and taxes. even with the last two measures i mentioned, 15 billions could have been raised without increasing a tax burden on people who can least afford it. �* , ., afford it. the mini budget you talked about _ afford it. the mini budget you talked about earlier _ afford it. the mini budget you talked about earlier from - afford it. the mini budget you talked about earlier from liz l afford it. the mini budget you - talked about earlier from liz truss and kwasi kwarteng, the increased amount in borrowing, much of it unfunded tax cuts as the market leader, fiscally it was the energy intervention, the energy price guarantee. rishi sunak said plans to increase borrowing were risky and even immoral. the snp, you can on the other hand, said liz truss was not borrowing enough. liz truss's plan to cap energy bills fell far short of the help we need to play even though it was probably one of the most expensive policies in modern political history. that need

not necessarily _ modern political history. that need not necessarily have _ modern political history. that need not necessarily have been - modern political history. that need not necessarily have been a - modern political history. that need i not necessarily have been a problem. there was no clear plan for how that would be consolidated through the tax base. that is what gave fright markets and that is the price we are still paying through interest rates that are higher than otherwise there would be. spending increases in cash terms rather than real terms announced by the chancellor simply are not going nearly as far as the need to go. in terms of spreading the burden, a couple of measures in terms of share buy—backs, taxing, and tackling non—dom split would have spread the burden far more equitably. the energy costs are building much of the inflation. it is driving through in the cost for food and drink and that is what is hammering families. that is why much more needed to be done today in order to put money into people's pockets to spread the burden equitably. sadly that is not what happened. irate equitably. sadly that is not what ha ened. ~ . ., ., equitably. sadly that is not what

hauened. . ., ., ., ,, .,~ ., happened. we are going to speak to daisy cooper — happened. we are going to speak to daisy cooper in _ happened. we are going to speak to daisy cooper in a — happened. we are going to speak to daisy cooper in a moment, - happened. we are going to speak to daisy cooper in a moment, the - happened. we are going to speak to i daisy cooper in a moment, the deputy leader of the liberal democrats. let me bring you this news by criticism from jacob rees—mogg. he has criticised substantial tax rises obtained within the autumn statement. let's have a listen to what he had to say. irate statement. let's have a listen to what he had to say.— statement. let's have a listen to what he had to say. we are basing what he had to say. we are basing what we are _ what he had to say. we are basing what we are doing _ what he had to say. we are basing what we are doing on _ what he had to say. we are basing what we are doing on a _ what he had to say. we are basing what we are doing on a forecaster| what we are doing on a forecaster who has a very bad track record. that means we are taking decisions that i would prefer us not to be taking. i am that i would prefer us not to be taking. iam particularly that i would prefer us not to be taking. i am particularly concerned about tax rises. when an economy is going into recession you would normally expect there to be fiscal support for an economy in recession. whilst you need high interest rates to deal with the inflationary problem the obr and the bank of england failed to spot a year ago. very clear that he does not like the tax rises. but very clear that he does not like the tax rises. �* ., ., tax rises. but he will vote for them! we — tax rises. but he will vote for them! we do _ tax rises. but he will vote for them! we do not _ tax rises. but he will vote for them! we do not know - tax rises. but he will vote for them! we do not know aboutj tax rises. but he will vote for - them! we do not know about esther mcve . them! we do not know about esther mcvey- there _ them! we do not know about esther mcvey. there will _ them! we do not know about esther

mcvey. there will be _ them! we do not know about esther mcvey. there will be criticism - them! we do not know about esther mcvey. there will be criticism but i mcvey. there will be criticism but how far are _ mcvey. there will be criticism but how far are they _ mcvey. there will be criticism but how far are they prepared - mcvey. there will be criticism but how far are they prepared to - mcvey. there will be criticism but how far are they prepared to go? | how far are they prepared to go? let's _ how far are they prepared to go? let's catch— how far are they prepared to go? let's catch up with daisy cooper, who is standing in central lobby. in terms of the big picture announcements, extra cash for education, extra cash for the nhs, pensions and benefits being updated in line with inflation, are you in support? in line with inflation, are you in su ort? , , in line with inflation, are you in su oft? , , ., in line with inflation, are you in su-nort? , ., in line with inflation, are you in sun-ort? , ., . support? this is a cost of chaos bud . et. support? this is a cost of chaos budget- it _ support? this is a cost of chaos budget- it is — support? this is a cost of chaos budget. it is leaving _ support? this is a cost of chaos budget. it is leaving every - support? this is a cost of chaos. budget. it is leaving every single person in this country to pay the price through higher taxes and weaker public services. the obr has already confirmed not only are we in recession, not only are we going to have the slowest rate of growth of similar countries, struggling families will face the biggest full in living standards ever on record. that is a damning indictment of the incompetence of the conservatives. what other choices with the liberal democrats have taken?— what other choices with the liberal democrats have taken? there should be a --roer democrats have taken? there should be a proper windfall— democrats have taken? there should be a proper windfall tax. _ democrats have taken? there should be a proper windfall tax. we - democrats have taken? there should be a proper windfall tax. we have - be a proper windfall tax. we have

been calling for that for a year. it has been extended quite significantly, hasn't it? it is so pathetically — significantly, hasn't it? it is so pathetically weak. _ significantly, hasn't it? it is so pathetically weak. a _ significantly, hasn't it? it is so pathetically weak. a company| significantly, hasn't it? it is so i pathetically weak. a company like shell has not paid a single penny into the treasury. you can increase the rate will unite that if you do not close the loophole, you will not get any money from them. ed davey described liz — get any money from them. ed davey described liz truss's _ get any money from them. ed davey described liz truss's administration | described liz truss's administration is probably the most right—wing government in recent history. will ou still government in recent history. will you still say _ government in recent history. ll you still say that? they are not as bad as the last lot. the bar is incredibly low. the budget is the price of tory incompetence and chaos. families will really, really struggle. they will see taxes going up struggle. they will see taxes going up and services getting weaker. thank you very much forjoining us. that's all for today and our special programme covering the chancellor's autumn statement. i will be back tomorrow with politics uk at 12.15 here on bbc two and on the bbc iplayer.

thank you to all of my gas for joining me here yet again invested in for another big programme here in westminster. goodbye. welcome back to westminster. jeremy hunt stood up at half past 11 as expected and he spoke for nearly an hour, delivering his much anticipated autumn statement and unveiling a host of measures, many of them widely expected. the chancellor confirmed the uk is in recession. he insisted his economic plan will rebuild the economy and will reduce public debt. let's take a look at some of the key points. there will be an income tax threshold freeze. and the point at which the highest tax earners start to pay the top rate in tax has been

lowered. households will pay more in energy bills from april with typical bills rising to £3000, as the government reduces the amount of support it gives. the state pension, benefits and tax credit will all rise by more than 10%, in line with the rate of inflation as it was in september. the energy companies have been hit with more taxes. health, education and defence budgets will be maintained but other departments are likely to be squeezed. capital spending will be frozen, but not for a couple of years after the general election. bad news if you own an electric car, up until now, that has been tax—free but from april 2025, you will be liable to excise duty. rachel reeves accused the conservatives are picking the

pockets of the entire country. those are the