best—loved artists. water is a surface that is elusive, in a way. all the patterns that you see are just on the surface. the show�*s called bigger & closer, not smaller & further away — 60 years of his life and art. have you just always been better at looking than the rest of us? i do look closely at things. i can look at a puddle and get pleasure out of them. most people think it's just raining, don't they? hockney has been painting on his ipad in recent years, most famously the arrival of spring in his home in normandy. this year we discovered he was back painting on canvas when this self—portrait was revealed, and there's much more work still unseen. i have been doing paintings. how many? well, about a0.

i painted my cook, the man who comes to do my feet, because he's a bit of a dandy. have you painted harry styles, is that right? yes. in person? yes. he came to see you? oh, yeah, all the paintings are done from life. he wanted me to paint him. he had a few little outfits, and i chose this yellow sweater. yellow is a hockney favourite. how many pairs of crocs have you got? i've only got one, actually. these are the only shoes he wears now, he says, deemed beautifully chosen by prince charles when they met, a rare outing for hockney. i'm usually drawing or painting, yeah. i mean, it's all i want to do now. i mean, i'm 85.

how much longer do i have? i'm a smoker. i might have five years, i don't know. yeah, i've had a very, very good life. i would say i live in the now. it's the now that's eternal, isn't it? eternal too, hockney�*s joyful art. katie razzall, bbc news. now on bbc news, it's time for review 2022. and one story that's led news bulletins in the uk throughout the year has been rising prices and their impact. victoria valentine, along with our team of economics and business correspondents, have been reflecting on the causes and consequences of the squeezed economy and the cost of living. when big ben brought

in the new year, few of us would have expected the year that was to follow. remember, in 2022 we started off very much in the grip of a global pandemic. who would have thought that another worldwide story would dominate the news agenda? tonight at ten, we are live in ukraine, a country at war, after a huge russian military offensive by land, sea and air. prices quickly rose to their fastest rate in over a0 years, and inflation touched everything, from our household bills to our wages and our hopes for the future. the global economy was already suffering from a long covid, with hold ups in supply chains causing headaches and higher bills for business. countries from france to finland faced a double blow of rising inflation, and at best, slowing growth, but a war in europe and the sanctions that followed changed everything. and at home, westminster struggled to provide the answer. this is it, folks. with no fewer than three prime ministers in less than two months, this year britain's

seen its fastest turn over at number ten for nearly a century, and it was hardly quieter at number”. and you will be chancellor and liz truss will be prime minister this time next month? absolutely, 100%. i'm not going anywhere. less that 2a hours after kwasi kwarteng insisted he was 100% safe in hisjob as chancellor, he has gone. three weeks of turmoil on the financial markets has culminated in this, another dizzying day in politics. jeremy hunt is now tasked with bringing the financial turmoil under control. what can he do? it's third year unlucky for many firms. when our business editor went to visit south shields beach in march, just a few weeks after russia invaded ukraine, he found one fish and chip shop already feeling the hit. the war in ukraine seems a long way away from this beach in south shields, but the soaring price of potato, fish, oil, the energy to cook them, is in part due to that conflict. it is causing a cost of living and cost of doing business

emergency, which has very much arrived on these shores and the firms who work for, its products and services we buy are desperate for some kind of financial lifeline. simon the energy to cook that meal is up 400%, that is the at the heart of the story. is up 400%, that is the at the heart of the story-— is up 40096, that is the at the heart of the story-— of the story. yes the story of 2022 has been energy — of the story. yes the story of 2022 has been energy and _ of the story. yes the story of 2022 has been energy and inflation, - of the story. yes the story of 2022 has been energy and inflation, we| has been energy and inflation, we were already seeing inflation this time last year, as we world economy emerged from a covid induced coma, you had economies coming back from a deepfreeze, supply chain issue, prices beginning to rise but the big event which was russia's invasion of ukraine, that sent the energy markets into a tail spin because russia is enormous exporter of oil and gas, you saw the supplies shut off, orshunned and gas, you saw the supplies shut off, or shunned by the rest of world, who didn't want to finance the russian war interest. energy prices balloon, particularly gas and

tenfold and electricity, bah us yes use gas to produce electrician t food, ukraine and russia big exporters of wheat. fertiliser, the fertiliser which which other countries use to produce their food so you saw inflation in those areas too and there can't be a single individual, government, business, that wasn't affecteded by inflation, and continues to be so, for businesses, they getting a double whammy, while their costs are going up, their customers pockets are being emptied by that same inflation, which is why richard 0rd feared his business and thousands of others might not survive. seen hundreds of shops already that havent— seen hundreds of shops already that haven't been able to cope with the price _ haven't been able to cope with the price increases and unfortunately tinges— price increases and unfortunately tinges are — price increases and unfortunately tinges are getting worse, the sooner we can— tinges are getting worse, the sooner we can get— tinges are getting worse, the sooner we can get something sorted with the price increase, the better or we will see — price increase, the better or we will see a — price increase, the better or we will see a lot of the local fish and chips _ will see a lot of the local fish and chips gone. will see a lot of the local fish and chips gone-—

will see a lot of the local fish and chis one. ,, . ., ., chips gone. since you made that film the government _ chips gone. since you made that film the government has _ chips gone. since you made that film the government has responded - chips gone. since you made that film the government has responded in . chips gone. since you made that film | the government has responded in the form of the energy support package, what kind of difference has that made at what kind of difference has that made �* ., , , what kind of difference has that made ~ . , , , . what kind of difference has that made �* . , , ' . ~' made a massive difference, i think the government _ made a massive difference, i think the government reel— made a massive difference, i think the government reel realised - made a massive difference, i think. the government reel realised without that people were looking at energy bills of 5, £6,000 a yore and that would derail the economy completely, so they had to step in, so they have been sub dicing bill since then, and it has cost them tens of billions of pound but i don't think they felt they had any choice, if you look round the world other governments have done similar things, the question is how long can they afford to keep doing that? and that depend on how long we see energy prices this high. ithink on how long we see energy prices this high. i think that is the big imponderable of next year, is where does this end?— does this end? even before the war started, inflation _ does this end? even before the war started, inflation was _ does this end? even before the war started, inflation was beginning - does this end? even before the war started, inflation was beginning to| started, inflation was beginning to seep into many aspects of british life and the bank of england was already beginning to raise rates and the governor, he was telling our economics editor that we should be restraining ourselves, when it comes to pay.

restraining ourselves, when it comes to .a _ . ., restraining ourselves, when it comes to -a . ~ ., ., restraining ourselves, when it comes toa. ., ., , restraining ourselves, when it comes to pay. what we can do, is try to revent to pay. what we can do, is try to prevent it _ to pay. what we can do, is try to prevent it becoming _ to pay. what we can do, is try to prevent it becoming spreading, l prevent it becoming spreading, inflation spreading, inflation becoming more engrained. share inflation spreading, inflation becoming more engrained. are you t in: to becoming more engrained. are you trying to get _ becoming more engrained. are you trying to get into — becoming more engrained. are you trying to get into peoples - becoming more engrained. are you trying to get into peoples heads . becoming more engrained. are you| trying to get into peoples heads and ask them for them not to ask for too high pay rises ask them for them not to ask for too high pay rise— ask them for them not to ask for too high pay rises yes. really? ask them for them not to ask for too high pay rises- really?— high pay rises yes. really? we do need to see _ high pay rises yes. really? we do need to see moderation _ high pay rises yes. really? we do need to see moderation of - high pay rises yes. really? we do need to see moderation of wage l need to see moderation of wage rises, that is pain. . find rises, that is pain. . and unusually. _ rises, that is pain. . and unusually, blunt - rises, that is pain. . and unusually, blunt acknowledgement of yet another battle rages in the british economy. after a decade of stagnation, many worker, including those in the public sector, are unlikely and unwilling to allow another fall in their living standards. fresh wave of strike action on the railway, causing huge disruption. we understand the anger caused by disrupt— understand the anger caused by disrupt eruption of the stodges of course, _ disrupt eruption of the stodges of course, -- — disrupt eruption of the stodges of course, —— stoppage, but we are getting _ course, —— stoppage, but we are getting support from the public.

there _ getting support from the public. there isn't a bottomless pit of monex — there isn't a bottomless pit of mone . z: z: z: z: there isn't a bottomless pit of mone . i: i: z: z: , , there isn't a bottomless pit of mone. :: :::::: , ~ there isn't a bottomless pit of mone . i: i: i: z: , , ., ~ ., money. 40,000 members of the rmt are walkin: out money. 40,000 members of the rmt are walking out four— money. 40,000 members of the rmt are walking out four four _ money. 40,000 members of the rmt are walking out four four days _ money. 40,000 members of the rmt are walking out four four days this _ walking out four four days this week. . , . walking out four four days this week. , , . �* ., walking out four four days this week. _ . �* ., week. this year britain has faced its bi est week. this year britain has faced its biggest set — week. this year britain has faced its biggest set of _ week. this year britain has faced its biggest set of rail— week. this year britain has faced its biggest set of rail strikes - week. this year britain has faced its biggest set of rail strikes in i its biggest set of rail strikes in 40 year, affecting england, scotland and wales. i 40 year, affecting england, scotland and wales. ., , ., , 40 year, affecting england, scotland and wales. .,, ., , , and wales. i hope the reasons why the strike is _ and wales. i hope the reasons why the strike is on _ and wales. i hope the reasons why the strike is on is _ and wales. i hope the reasons why the strike is on is being _ and wales. i hope the reasons why the strike is on is being looked - the strike is on is being looked into already and hopefully we should get back because it is combatsing. if we are going to strike about something you can negotiate first and negotiate, negotiate until conclusion, if it doesn't strike at a time _ conclusion, if it doesn't strike at a time that— conclusion, if it doesn't strike at a time that causes the least disruption to people. so a time that causes the least disruption to people. so there has been public _ disruption to people. so there has been public support _ disruption to people. so there has been public support for _ disruption to people. so there has been public support for industriall been public support for industrial action, but not everyone is sympathetic, and it often comes at a cost. . . sympathetic, and it often comes at a cost. , , ., . ., cost. yes, there is a cost to the economy _ cost. yes, there is a cost to the economy and — cost. yes, there is a cost to the economy and to _ cost. yes, there is a cost to the economy and to the _ cost. yes, there is a cost to the economy and to the workers . economy and to the workers themselves, because they lose pay when they are on strike, this dispute has been going on for month, no obvious end in sight. the unions say rail workersjust no obvious end in sight. the unions say rail workers just haven't had a pay rise in far too long, and the

cost of living. the government want to give a pay rise but changing to working practises have to happen because they say covid has presented such a big financial challenge to the railway. these days of course, no people can work from home so the impact on commuters is a bit less thanit impact on commuters is a bit less than it would have been in years gone by, but the passengers ultimately who need to travel and a lot of businesses are the ones caught in the middle and we spoke to the manager of a pub in portsmouth about the difficult choices he has had to make. i about the difficult choices he has had to make-— had to make. i think we will lose 3096 of normal— had to make. i think we will lose 3096 of normal trade, _ had to make. i think we will lose 3096 of normal trade, a - had to make. i think we will lose 3096 of normal trade, a lot - had to make. i think we will lose 3096 of normal trade, a lot of. had to make. i think we will lose l 3096 of normal trade, a lot of that 30% of normal trade, a lot of that is because — 30% of normal trade, a lot of that is because a — 30% of normal trade, a lot of that is because a big part of the trade is because a big part of the trade is commuter, unfortunately i will have _ is commuter, unfortunately i will have to _ is commuter, unfortunately i will have to cut — is commuter, unfortunately i will have to cut back on staffling level, that is _ have to cut back on staffling level, that is another hit for my staff. we have that is another hit for my staff. have been that is another hit for my staff. - have been hearing about the impact of transport chaos on city centres here in the uk. the of transport chaos on city centres here in the uk.— here in the uk. the toll it is takin: here in the uk. the toll it is taking on — here in the uk. the toll it is taking on pubs _ here in the uk. the toll it is taking on pubs and - here in the uk. the toll it is i taking on pubs and restaurants here in the uk. the toll it is - taking on pubs and restaurants what we have seen _

taking on pubs and restaurants what we have seen is _ taking on pubs and restaurants what we have seen is foot _ taking on pubs and restaurants hisisgt we have seen is foot fall down by 4030-40% but in we have seen is foot fall down by 4030—40% but in central london and in city it has been down as low as 50-60% in city it has been down as low as 50—60% and on top of the cancels christmas parties and bookings you have seen walk in trade decimated. it is hitting retailers too but there is a warning for anyone tempted to buy online, according to the british independent retailers association, if you want gifts in time for christmas you will have to go shoching in person because the ongoing strike disruption to postal services. more sectors havejoined the pickett line, teachers and unity lecturers. and for the first time in 106 years, the royal college of nurses decided to strike this year we are operationalising plan, we have a great team doing this every day, so whether it is our military personnel we have trained up or a surge capacity, that we can actually make sure things like borders are

safe and protected, and of course people's lives are not disrupted. aha, people's lives are not disrupted. a lot of us are more conscious of crisis days and people have started tradings down, that has caused a revolution in the bottom line for discounters. revolution in the bottom line for discounters— revolution in the bottom line for discounters. ~ . ., , , discounters. what we are seeing is an unprecedented _ discounters. what we are seeing is an unprecedented shift _ discounters. what we are seeing is an unprecedented shift in - discounters. what we are seeing is| an unprecedented shift in customer behaviour and we are seeing customers reprioritising value like never before, and switching their shopping to aldi, and we are winning shoppers from all of the traditional full price supermarkets. this shoppers from all of the traditional full price supermarkets.— full price supermarkets. this year, we thought — full price supermarkets. this year, we thought differently _ full price supermarkets. this year, we thought differently and - full price supermarkets. this year, we thought differently and acting i we thought differently and acting accordingly. in the summer, bbc news commissioned some research looking into how inflation is affecting our behaviour. and this is what it found. ., ., , found. eight out of ten people in that survey _ found. eight out of ten people in that survey told _ found. eight out of ten people in that survey told us _ found. eight out of ten people in that survey told us they - found. eight out of ten people in that survey told us they were - that survey told us they were worried about cost of living pressures, that is up from six in ten injanuary, more than half said it was having a negative impact on their mental health. people are having to cut back, they are saying more than half said to us they are

spending less, when they do their weekly shop, they are cutting back on that, they are not only spending less on food and groceries they are also eating less, this is the really worrying thing, more than half said they have skipped at least one meal to try and save monday and four out of ten say it is affecting their physical health.— physical health. this was the situation our _ physical health. this was the situation our economics - physical health. this was the l situation our economics editor physical health. this was the - situation our economics editor found in a church near sunderland. workers crowded round radiators to keep warm and pensioners fearing they can't afford the most basic of foods. bulleter. it is a luxury now, for most people i would think. it really is. . . most people i would think. it really is. , , ., ., , is. this is a godsend, where we can have a hot — is. this is a godsend, where we can have a hot meal, _ is. this is a godsend, where we can have a hot meal, sit _ is. this is a godsend, where we can have a hot meal, sit beside - is. this is a godsend, where we can have a hot meal, sit beside a - have a hot meal, sit beside a radiator, _ have a hot meal, sit beside a radiator, it— have a hot meal, sit beside a radiator, it a nice warm radiator. you _ radiator, it a nice warm radiator. you are — radiator, it a nice warm radiator. you are here _ radiator, it a nice warm radiator. you are here because it will save you having to... it you are here because it will save you having to. . ._ you are here because it will save you having to... it saves a lot from home, a you having to... it saves a lot from home. a lot _ you having to. .. it saves a lot from home. a lot of— you having to... it saves a lot from home, a lot of cooking _ you having to... it saves a lot from home, a lot of cooking at - you having to... it saves a lot from home, a lot of cooking at home, . home, a lot of cooking at home, which costs us money, food bill

alone comes down because we come here. 50 alone comes down because we come here, ., ., ., �* �* alone comes down because we come here. ., ., ., �* �* alone comes down because we come here. ., ., ., “ ., here. so you are our bbc cost of livin: here. so you are our bbc cost of living correspondent, _ here. so you are our bbc cost of living correspondent, you - here. so you are our bbc cost of living correspondent, you have l here. so you are our bbc cost of - living correspondent, you have been up living correspondent, you have been up and down the country, in and out of people's homes and bys, what is it you found?— it you found? there is two really different groups _ it you found? there is two really different groups of _ it you found? there is two really different groups of people - it you found? there is two really different groups of people i - it you found? there is two really | different groups of people i have encount others. particularly in the last few months that are distinctive. 0ne last few months that are distinctive. one is the group of people who have probably been in fuel poverty for some time, potentially more used to living on a budget, perhaps they live on benefits, perhaps theyjust have had a limited income and a lot of those individuals are very good at budgeting but have made all the cuts they can, so when energy prices went up, in september, 2021, that was theirfirst big shock, up, in september, 2021, that was their first big shock, that many of us across the country tridonned really feel that much or were able to take it in our stride but for a lot of the individuals they were hit with it more than a year ago, so this year has been sort of, you know, slice after slice of their

income being removed, and it has been incredibly difficult for them. it has got really bad since the gas went— it has got really bad since the gas went up — it has got really bad since the gas went up i— it has got really bad since the gas went up. i am paying triple my gas this month, — went up. i am paying triple my gas this month, to the month before, like i_ this month, to the month before, like i have — this month, to the month before, like i have put £100 a week on that isjust_ like i have put £100 a week on that isjust far— like i have put £100 a week on that isjust far too much, i am buying cheaper— isjust far too much, i am buying cheaper mince, cheaper chicken. how does it feel — cheaper mince, cheaper chicken. finish does it feel about the prospect of having to spend less on, how do you feel about that as a parent? heartbreak, it is absolutely heartbreaking because you want to give your child the world. there heartbreaking because you want to give your child the world.— give your child the world. there is a second group — give your child the world. there is a second group of— give your child the world. there is a second group of people - give your child the world. there is a second group of people in - give your child the world. there is a second group of people in the l give your child the world. there is l a second group of people in the last few months and that is people who are i suppose very overstretched financially, but are in work, so the sort of— financially, but are in work, so the sort of typical example of that is two parents in work but reasonable size house. — two parents in work but reasonable size house, they is have a big mortgage, perhaps they have got two cars but _ mortgage, perhaps they have got two cars but they are on car finance for that, _ cars but they are on car finance for that, and _ cars but they are on car finance for that, and that means that really as soon _ that, and that means that really as soon as— that, and that means that really as soon as those energy bills really

went _ soon as those energy bills really went up— soon as those energy bills really went up in— soon as those energy bills really went up in september, october of this year. — went up in september, october of this year, they didn't have anywhere to go— this year, they didn't have anywhere to go in— this year, they didn't have anywhere to go in terms of finance, loads of people _ to go in terms of finance, loads of people suddenly become conscious of you know _ people suddenly become conscious of you know their smart meter or the bills are _ you know their smart meter or the bills are coming in every month or so and _ bills are coming in every month or so and thinking what can they do, to limit that— so and thinking what can they do, to limit that use of energy in particular. for households that has been _ particular. for households that has been a _ particular. for households that has been a good wake up call. let us not leave _ been a good wake up call. let us not leave the _ been a good wake up call. let us not leave the telly on, leave the lights on, leave the telly on, leave the lights on. turn _ leave the telly on, leave the lights on, turn radiators off.— on, turn radiators off. there is information _ on, turn radiators off. there is information about _ on, turn radiators off. there is information about ways - on, turn radiators off. there is information about ways you i on, turn radiators off. there isj information about ways you be on, turn radiators off. there is - information about ways you be more energy—efficient, but there are lots of organisations trying to help, there are charities, what are the sort of schemes that you have come across that you think, have really stood out for you and are making a difference for people? hate stood out for you and are making a difference for people?— difference for people? we went to visit manchester, _ difference for people? we went to visit manchester, we _ difference for people? we went to visit manchester, we went - difference for people? we went to visit manchester, we went to - difference for people? we went to visit manchester, we went to visit | difference for people? we went to | visit manchester, we went to visit a project _ visit manchester, we went to visit a project in _ visit manchester, we went to visit a project in liverpool who is is teaching _ project in liverpool who is is teaching people how to cook on a single _ teaching people how to cook on a single stove, that is what a lot of

people _ single stove, that is what a lot of people have in their bedsits or use a microwave effectively and this is a microwave effectively and this is a chef— a microwave effectively and this is a chef doing this in his free time to help — a chef doing this in his free time to help out _ a chef doing this in his free time to help out people who really need it at the _ to help out people who really need it at the moment. a lot of individuals that can't cope with being. — individuals that can't cope with being, you know, to a food bank recently— being, you know, to a food bank recently who are really struggling with the — recently who are really struggling with the amount of donations they are getting, and they have double the amount they are trying to help and service — the amount they are trying to help and service but so many more volunteers, it is incredible, to see people _ volunteers, it is incredible, to see people just — volunteers, it is incredible, to see people just giving up their own free time. _ people just giving up their own free time. to— people just giving up their own free time, to make these kind of places work _ work. as pressure work. - as pressure on work. — as pressure on the uk economy work. as pressure on the uk economy -rew, as pressure on the uk economy grew, the political landscape was changing. the political landscape was changing-— the political landscape was chanttin. ., ., ,., changing. hasta la vista, baby. there boris _ changing. hasta la vista, baby. there boris johnson _ changing. hasta la vista, baby. there boris johnson stood - changing. hasta la vista, baby. | there boris johnson stood down changing. hasta la vista, baby. - there boris johnson stood down and there borisjohnson stood down and after a summer of campaigning a new leader emerged as the threat of recession began to loom. liz truss becomes prime minister. kwasi kwarteng becomes chancellor. and they go hell—for—leather for what they go hell—for—leather for what they said was a growth strategy, and what was interesting was what was

happening internally in the treasury, ifound out that happening internally in the treasury, i found out that a forecast, the numbers had been prepared by the office for budget responsibility in draft form. they were dire number, and in any ordinary circumstances an incoming chancellor may have tweaked i say tweak, provided some pretty massive surgery to their plans, that didn't happen, those forecasts were ignored, parked, forgotten about, and they went even further, in terms of tax cuts, and further borrowing, and just said we are not going to publish a set of forecasts. that was really damaging. — publish a set of forecasts. that was really damaging, that _ publish a set of forecasts. that was really damaging, that decision - publish a set of forecasts. that was really damaging, that decision notl really damaging, that decision not to publish the 0br forecast, because thatis to publish the 0br forecast, because that is the thing, that international investors of, everyone is looking at to say is this legit, does this make sense? it is looking at to say is this legit, does this make sense? it shows a certain discipline _ does this make sense? it shows a certain discipline of— does this make sense? it shows a certain discipline of having -

does this make sense? it shows a certain discipline of having gone l certain discipline of having gone through the numbers, and accepted a certain economic orthodoxy, the rules of the game. they were explicit they didn't like the existing rules of the economic game, they wanted to chuck them, the result was bedlam, i have been following budgets for 20 years, and you watch the screens for the impact on the currency markets on the value of the pound on the cost of government borrowing, and ordinarily it never happens, it a bit of a non—event. this time right from the off e it was an extraordinary movement in financial markets, you could see it flowing tan jibly into the real economy. could see it flowing tan 'ibly into the real economy._ could see it flowing tan 'ibly into the real economy. that had started to sook the real economy. that had started to spook the _ the real economy. that had started to spook the guys _ the real economy. that had started to spook the guys and _ the real economy. that had started to spook the guys and give - the real economy. that had started to spook the guys and give girls - the real economy. that had started to spook the guys and give girls in | to spook the guys and give girls in there and stepped in to spook the guys and give girls in there and stepped i— there and stepped in doing the o- osite there and stepped in doing the opposite of— there and stepped in doing the opposite of what _ there and stepped in doing the opposite of what they - there and stepped in doing the opposite of what they said - there and stepped in doing the | opposite of what they said they there and stepped in doing the - opposite of what they said they were going to do a week before, clear sign of a crisis, emergency action, and at that point, you started to see the tanker turning round, very slowly. and then when the chancellor

was in the us, the imf meetings, his budget was being effectively unpicked business his prime minister, an extraordinary situation s very rare to get the bank of england governor coming out and talking to you on camera, but he did do it for my team, in washington, he wanted to get the message across that the support they put in place had to end. latte that the support they put in place had to end-— that the support they put in place had to end. ~ ., ., , had to end. we are doing everything to preserve — had to end. we are doing everything to preserve financial _ had to end. we are doing everything to preserve financial stability. - had to end. we are doing everything to preserve financial stability. you i to preserve financial stability. you know. _ to preserve financial stability. you know. you — to preserve financial stability. you know, you have my assurance on that, ithink— know, you have my assurance on that, i think there _ know, you have my assurance on that, i think there is — know, you have my assurance on that, i think there is an important task now for— i think there is an important task now for the — i think there is an important task now for the funds to ensure they are done _ now for the funds to ensure they are done. �* , ., ,, ., , done. but they are sterling has fallen in response _ done. but they are sterling has fallen in response on _ done. but they are sterling has fallen in response on the - done. but they are sterling has fallen in response on the whatl done. but they are sterling has i fallen in response on the what you have said, they have three days... this has to be done for the sake of financial— this has to be done for the sake of financial stability.— financial stability. over the course of a weekend _ financial stability. over the course of a weekend we _ financial stability. over the course of a weekend we get _ financial stability. over the course of a weekend we get a _ financial stability. over the course of a weekend we get a new- financial stability. over the course - of a weekend we get a new chancellor who decides to do things differently.— who decides to do things differentl . . , ., , who decides to do things differentl . . , . , ., differently. plans have been laid out a few dozen _ differently. plans have been laid out a few dozen days _ differently. plans have been laid

out a few dozen days before, - differently. plans have been laid| out a few dozen days before, and differently. plans have been laid - out a few dozen days before, and all of them that hadn't already been legislated for were wiped off the slate. it lists all the measures and their costings and it is basically thatis their costings and it is basically that is kept, gone, gone, gone, that is kept, gone, gone, gone, gone, gone, gone, gone, gone, gone. right? extraordinary stuff, we have never seen anything like that. when you seen anything like that. when you see how economic changes are like a giant wrecking ball changing everything and it must be said primarily, individuals, households facing this unprecedented squeeze, that has come directly from geopolitical instability, leading to just frankly, just unfathomable rises in energy bills but then also food bills and mortgage costs, all hitting at the same time, and the instant impact that eden hazard had

on politics, essentially, then some bad calls can, or badly communicated calls, meaning a governmentjust lasting over 40 day, all because of economics, there is nothing like it, and we are not kind of through it, either. . and we are not kind of through it, either. , ., ., ., , either. the uk is far from the only country experiencing _ either. the uk is far from the only country experiencing high - either. the uk is far from the only country experiencing high interestj country experiencing high interest rates or borrowing cost, the economic climate is changing for everyone. britain is an island nation, it benefits from foreign direct investment and trade. sheer the head of the international chamber of commerce, talking to me in november, at the time of the autumn statement. and pointing to the office of budget responsibility�*s own forecasts.. i would have liked to have seen a bit more honesty to be truthful. there was no mention of the big b word brexit, you know, we are 4% poorer as a country as a result of brexit, so, that is one of the main reasons

why we have a hole in our public finances so it is notjust about international issues it is about the decisions we made in the past. if we are asking millions of people and bids to pay more taxes i think they deserve the right to be told and acknowledged that was part of the issue as to why that is happening. the big take away for me, was there is no mention of trade. trade is 60% of the uk economy. it drives and safeguard and generates thousands of jobs across every region in the economy and there was no mention of it at all. the confederation of british industry is one of a growing number calling on the government to reexamine britain's post—brexit trading arrangementses, and the visa system supporting foreign labour. there is going to be quite a shallow recession, but the question really now facing policy maker, facing all of us is, how do we make sure it gets no worse, how do we make sure we come out at the end of the year and that comes down to this serial british problem of business investment.—

british problem of business investment. ., ., , , . , investment. what of energy prices and inflation? _ investment. what of energy prices and inflation? we _ investment. what of energy prices and inflation? we return _ investment. what of energy prices and inflation? we return to - investment. what of energy prices and inflation? we return to our . and inflation? we return to our business editor simonjack, we could be here in a few months�* time and inflation might be score roar, that is because you are comparing the high prices to the high prices of a year ago, that doesn�*t mean that extra money that money people are spending on energy hasn�*t been a permanent hit to their living standard. we have seen the biggest squeeze on living standards in 70 years and even if inflation is zero, in a few months�* time, it won�*t feel like that, and a lot will depend on what happens in the russia situation. i can�*t myself see vladimir putin saying, it was a fair fight we came off second best, we are off home and have crimea back, so that stand—off is going to be all—important, so that is going to be the biggest issue, the other one will be what happens to global interest rates, we have seen after years of them being almost close to zero, they have gone up very quickly, to try and get inflation in check, now when you increase

interest rates from near zero to four to five percent sent after a decade of being low unexpected and bad things start to happen and i think you will be a basically seeing major economies, perhaps even including the us slide into recession, the uk is predicted to be in recession for most of 2023 so it won�*t be, i can�*t give you a massive message of good will for next year, it is going to be tough, but hopefully, inflation will begin to come down, and that will make people feel a bit more stable because it has been one of the greatest shocks to the system that western europe has seen since the second world war. after two years of covid, another huge seismic shock to the world economy, was something that everyone including the uk wanted to avoid, but of all g7 industrialised countries, britain is the only one with an economy that is smaller than before the pandemic start add. yes, 0k, transport and fuel bills might

start coming down, but food bills, those are still rising and that means inflation is still comfortably outstripping average wage increasing tos for the public and private sector, and that is a deeply uncomfortable place for businesses and homes to close out the year. 2022 was a year of difficult questions without maniances, watched on by a nation gripped by a deep cost of living crisis and shouldering the highest taxes since world war ii, debate is beginning to shift from the scale of the economic problems we face to the nature of the solutions we must find.

the christmas day forecast later, but today has been a bit grey day for many, a lot of cloud streaming in from in from the atlantic, bringing most of the rain and drizzle to england and wales. temperatures on the higher side but chilly north. we have showers in scotland, those will continue overnight. could turn wintry over the hill, one or two fog patches lingering into the night. as the wind picks up in the south—west we have rain arriving here, it will be mildest here, coldest in the north and in scotland there could be a touch of frost. given the showers one or two ice eye patches as well. it will be a cloudier day in scotland with shower, colder as well, this band of rain briefly heavy, sweeps northwards in england and wales and then it slows down in northern ireland as it arrives here during the afternoon. a band of rain

followed by snatch the south—west. 0ne followed by snatch the south—west. one or two sharp showers, blustery wind as westminster. south of the band of rain it is mild, north of it it is cold, temperatures four or five degrees in scotland. that band of wet weather due to a weather front. that will push forth ward, into the cold air, mainly north of the central belt in scotland and over the hills, several centimetres likely, but you can see that wintry mix move up toward the far north of scotland, otherwise we will find showers following on behind, mainly for western parts of the uk, it may be dry with sunshine and temperatures here, double figures, we will find the winds picking up through the day on christmas eve. strongest through the irish sea, round coasts and hills, but it�*s a southerly wind so we are in my lord air going into christmas day. and if you are planning to head out for a walk, perhaps it will be drier in the eastern side of the uk, more

likely to have blustery showers out to the west with the west weather in the far north—west but it�*s a mild day, temperatures nine degrees in the central belt of scotland and 12 in southern england and wales with, after dark, we could see some wintry showers, in the north—west of scotland, colder air pushes in here and we could see a fewer no wintry showers on boxing day in the north—west of the uk, that cold air doesn�*t last long back to mild conditions by tuesday.

this is bbc news. the headlines: prime minister rishi sunak appoints new ethics adviser on ministerial behaviour. a final vote in the scottish parliament is imminent on legislation making it easier for people to legally change their gender in scotland. brixton academy has had its licence suspended after a crush at a gig last week which led to the deaths of two people. firms are "banging their heads against the wall" two years after post—brexit trading began — according to a new report by a leading business organisation. and, seeing the world through a painter�*s eyes.

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