more people back into work. jeremy hunt insists his budget will deliver growth, but labour accuses the government of sticking plaster politics, today we build for the future. with inflation down, debt falling and growth up, the declinists are wrong and the optimists are right. a country set on a path of managed decline, falling behind our competitors, the sick man of europe once again. free childcare for more people in england — one of the big incentives unveiled today to get more parents back into work.

we can't afford to be able to put her in nursery for some days a week so i can go back to work. so it's quite difficult really, but announcing this sounds really promising. big changes to pensions too to encourage people to stay in employment, but the chancellor's plans prompt accusations that his budget favours the rich. also on the programme tonight... markets fall in europe and the us amid concerns about the troubled banking giant credit suisse. it's a lovely ball through to benzema. break�*s here for vinicius. then benzema. and there's no miracle in madrid as liverpool are knocked out of the champions league. and coming up in the sport, but you left the best of the action from snakes champions league clashes, it is mission improbable liberal pool and nurture it, find out how they fare against the defending champions. —— liverpool.

good evening. the chancellor, jeremy hunt, has pledged to "build for the future" in his first budget, promising it will deliver growth. he told mps that the economic forecast has improved. the economy will shrink slightly but avoid going into recession this year with inflation predicted to fall to just under 3% by the end of the year. the big focus was on getting more people into work with changes to childcare, benefits and pensions. in england, free childcare will be expanded to all children over the age of nine months, with up to 30 hours a week for eligible households. there'll be money for schools to provide wraparound childcare outside the school day from september. on benefits, there are plans to apply universal credit sanctions for those refusing to work "more rigorously". on pensions there are changes to tax rules to enable high earners to save more into their pensions tax—free.

it's hoped it will encourage people, particularly senior doctors, to return to work. but the government's independent forecasters, the obr, say we still face the sharpest fall in living standards since the 1950s. and labour has accused the government of sticking plaster politics. ourfirst report tonight is from our political editor, chris mason. when will things actually get better, chancellor? there have been rather a few chancellors of late — here is the current one, jeremy hunt, the fourth in a year, and a big personal moment. at one end of downing street, his wife and children. at the other end, out on whitehall and beyond, this again. striking workers, schools closed, demonstrations. do you have money to end the strikes, chancellor? the answers, or lack of them, would come down the road in parliament.

the overall message, things are tough but improving. i report today on a british economy which is proving the doubters wrong. the uk will not now enter a technical recession this year. soaring energy bills have been a massive factor in crippling family finances in the last year. the government's help to ease the burden is to be extended until the summer. this measure will save the average family a further £160 on top of the energy support measures already announced. here is another choice the chancellor has made, maintaining the 5p a litre cut in fuel duty and not putting it up in line with rising prices. that saves the average driver £100 next year and around £200 since the 5p cut was introduced. the headline rate of corporation tax is going up, not popular among all his mps. businesses will pay less, though, if they put money into their future growth.

that means that every single pound a company invests in it equipment, plant or machinery can be deducted in full and immediately from taxable profits. a big part of this budget is getting more people into work. there are measures to help those with disabilities and 50— and 60—somethings tempted to retire. now they will be able to save more in a pension, tax—free every year and the chancellor will. .. abolish the lifetime allowance altogether. it is a pension tax reform that will stop over 80% of nhs doctors from receiving a tax charge, incentivise our most experienced and productive workers to stay in work for longer. critics say it will help the already very well off. childcare has become a big political battleground between labour and the conservatives. mr hunt said this about

his plans for england. we will introduce 30 hours of free childcare, notjust for three and four—year—olds, but for every single child over the age of nine months. it is a package worth on average £6,500 every year and reduces their childcare costs by nearly 60%. but it will not be fully up and running for two and a half years. in the round, ministers want this to be seen as a steady as you go budget. the declinists are wrong and the optimists are right. we stick to the plan because the plan is working and i commend this statement to the house. in response the opposition parties were scathing. managed decline, britain going backwards, the sick man of europe once again. that's the britain they have created and they should look it in the eye. a uk whose performance deteriorated

after the brexit referendum both- in absolute and relative terms. and a country, the only one _ in the 67, where the economy has not returned to its pre—pandemic level. we know that a lot of households are struggling with the prices at the moment so we really wanted to see him extend also some of the support payments that have previously been issued to households and businesses. he hasn't done that. it's a real missed opportunity, in our opinion. what do you say to people who say this is a budget for the rich, allowing people who are already well off, already earn a lot, save more into their pensions? of course we want to help older people who want to stay in work and by definition they will generally be on higher salaries, but nearly five times more help is going to young parents. your official forecasters say that the freezing of the income tax thresholds over six years is the equivalent to putting 4p on income tax. you're clobbering people. i thought conservatives were meant to cut taxes. conservatives cut

taxes when they can. today i cut corporation tax by £9 billion, but remember this... and raised the headline rate. yes, but, the pandemic, we spent £400 billion to support businesses and families. how much of today is still about shovelling up the mess of your conservative predecessors? it's not. none of it? no. the financial statistics about the country, they have completely recovered from that. today is about a long—term growth plan. the blunt political truth is conservative opinion poll ratings have not recovered. he, they, have a lot of persuading to do. chris mason, bbc news, at westminster. the independent watchdog, the office for budget responsibility, predicts the uk economy will shrink this year, but will avoid a technical recession — that's when it shrinks for two quarters in a row. it warned of a big drop in living standards over the next two years —

the sharpest since records began in the 1950s. and house prices are predicted to fall by 10%. 0ur economics editor, faisal islam, has been looking at the numbers behind today's budget. the chancellor called it a comprehensive plan for growth, but that is against a backdrop of a flat economy, of widespread strikes even today, of declining living standards. this is what the government's official independent forecaster, the obr, thinks is going to happen with the economy, year by year, versus where they were in november. you can see here it's better this year and next — no longer an official recession but still down this year, but a touch worse in future years after the likely election. broadly speaking, the forecast looks a bit better this year. that's mostly luck, that's the economy doing a bit better, that's energy prices going up less than expected. over the medium term, a little bit of the additional growth is,

according to the office for budget responsibility, down to some of the measures that we've seen, in particular expecting to get a few more people into work. now what's underlying all this? the chancellor's central aim is a plan for growth that implicitly acknowledges two core ongoing problems — a lack of workers and very low investment — the 0br has given a verdict on the chancellor's measures, an early marking of the homework, if you like, and they say yes it could boost the workforce by between 55,000 to 250,000 as a result of the measures — childcare, pensions, sickness benefits comparing to a loss of some 500,000 workers since the pandemic. so that could be material for the economy. but on the other problem — investment — look at this pattern for the new corporation tax break. those new allowances lead to a boom in investment in the next couple of years. but then quite a sharp correction as the policy is assumed to end — and actually in future years,

over here this is less investment than what was forecast before the policy announcement, so net net the official forecast is no overall improvement in investment from this three year policy. however, there were dozens of other policies to try to jump—start high—tech growth in key sectors from medicine to artificial intelligence up and down the country but even if that does work perfectly in boosting growth, it will take some time to escape the shadow of the current hit to spending power. this shows post inflation disposable income for households — the squeeze on your wages and wallets. it was already predicted to fall sharply for two years on the trot, there in red. while that fall is now a little smaller thanks to lower energy prices, the official forecaster says this remains an historic fall in living standards over the decades. back in november we thought that living standards would fall by about 7%. that's because inflation was outstripping growth and earnings over this financial year and next. because we are now seeing lower inflation and also slightly higher wage deals, we think the fall in living

standards is going to be only 6%. but that's still a historic two—year fall in living standards in the uk and not something we've seen since we started collecting records on these things back in the 1950s. it's the back to work budget came on a day of strikes in schools and the wider public sector — for now no extra money there, but a hope that settlements are on the way. no money for those tax cuts just yet either. the chancellor's microsurgery on the economy could changes the game for britain's sluggish growth and its deep—seated causes at a time when other economies have grand plans for green growth . he and his downing street neighbour will need to deliver results very quickly. sophie. faisal islam, thank you. the uk has one of the most expensive childcare systems in the world — free childcare in england is now being expanded to encourage more parents to return to work. this is what's been announced — if both parents are in work and earning at least £152 per week they will be eligible for 30 free hours of childcare per week from the age of nine months. that's for england with equivalent funding given to the other nations. the scheme will be phased

in from next april, with eligible two—year—olds getting 15 hours and all measures are expected to be in place by september 2025. each carer in england will also be able to look after five two—year—olds instead of four, as is already the case in scotland. the 700,000 families on universal credit will get childcare support paid upfront, instead of claiming it back and they'll also be able to claim for more help, if they are moving into work or increasing their hours. the government also said they'd work with local councils to ensure all schools in england will offer wraparound care between 8am and 6pm by september 2026. 0ur political correspondent alex forsyth has been meeting parents in the west midlands to see what they think of the announcement. few parents would have been jumping forjoy over the cost of childcare of late. so, at this baby sensory group in west bromwich, today's announcement was broadly welcomed.

# say hello... many here who want to work know the struggle ofjuggling that with childcare costs. i worked out that to go back three days i couldn't actually afford the childcare for three days, so i had to go back four to be able to put her in nursery forfour, but then i had that mum guilt of, "but i'm leaving her." so hopefully, it will actually help. but sarah, a teacher keen to return to herjob, is frustrated that she will have to wait until next september before she sees any benefit. in that year, how are we going to afford to be able to afford to put her in nursery for some days a week so i can go back to work? so, it's quite difficult, really. but announcing this sounds really promising. in nearby walsall, this nursery is working out what the change will mean for them. this is already a sector under strain, facing rising costs and staff shortages. director debbie is concerned that even though the government is increasing the funding for free

childcare hours by 30%, they will be left short. i think it will close more nurseries than it will save, because they won't be able to afford to keep running. even with that extra money that the chancellor... ? it's not enough, 30% will not cover the costs. she has already decided that here they won't reduce the number of staff for younger children, one option announced today to try to ease pressures. they're very vulnerable at two and it's going to affect the workforce as well, it's extra pressure, having that one extra child per adult. not far away, this town was named by the chancellor as one of those in line for regeneration. help with childcare costs was one element of a budget meant to boost the stagnant economy. the wider west midlands was given special status to attract investment. but at this martial arts club in west bromwich, some challenges feel more immediate. here, the extended help with energy bills is welcome,

as is the promise of falling inflation, but the reality now is still tough. we've ended up paying £575 and gone up to £1,100 a month in rent. so your rent has doubled? yeah. how is that affecting you? hard work at the minute because i can't afford to eat. i feel like sometimes a lot of the food at college is also quite expensive so i'm struggling a lot money wise in that situation because things have gone up in price. the club leaders, though, are hopeful for the future. we try and create an environment where people see opportunity, i even when you're in an area such as west bromwich and the westl midlands which doesn't have a lot of prosperity compared _ to other areas. some economic optimism might have been the tone the chancellor was trying to strike. the question, though, is whether his budget leaves people feeling better off. alex forsyth, bbc news, west bromwich. there were significant changes announced to a range of benefits to encourage people back into work today. 0ur social affairs correspondent, michael buchanan, is with me now.

you have been looking through it. what has been announced? the benefit s stem what has been announced? the benefit system makes — what has been announced? the benefit system makes a _ what has been announced? the benefit system makes a distinction _ what has been announced? the benefit system makes a distinction between i system makes a distinction between being ill and being disabled and to get additional payments claimants have to go through to mike russell protests. the government's plan is to scrap the work capability assessment, the test used to decide if someone is too ill to work from 2026, the only people who will get the top payment or those who qualify for the main disability benefit and crucially they will be allowed to keep that money even if they get a job. but there will be a group of people who are ill but don't qualify for the disability benefit who will not get that top up payment. the government are also planning to use artificial intelligence to automate benefit sanctions for those who fall foul of the rules, particularly if they turn down a job. it is worth pointing out sanctions are at near record levels at the moment and the literature suggests they don't really work in that way, and finally a word on the over 50s everyone is trying to get into work and stop

work and research suggests one in ten of them are relying on benefits to get by so the welfare system is possibly not the best way of getting them into work.— possibly not the best way of getting them into work. the chancellor also unveiled some specific measures for wales, scotland and northern ireland today. in a moment we'll hear from emma vardy in belfast and tomos morgan in cardiff, but first to alexandra mackenzie in glasgow. many of today's announcements don't apply here in scotland. instead, the scottish government will get £320 million as part of the block grant and could choose, for example, to extend free childcare. the freeze on the energy price cap does apply to scotland, that has been extended until the end ofjune, and the freeze in fuel duty for another year. in the arts, up to £8.6 million has been given directly to the edinburgh festivals. this has been welcomed by the scottish tourism sector. the snp say this is yet another wasted opportunity by the uk

government to help businesses and households through the cost of living crisis. 0njeremy hunt's first headline announcement on childcare, the welsh labour government is already coming under pressure from opposition parties to follow suit. a phased expansion of childcare for two—year—olds is already being rolled out across wales, and the cabinet here say they will consider how best to spend the extra money from this year's budget. 0njeremy hunt's second major announcement, the expansion of the energy price cap guarantee, that is important for two reasons here in wales. firstly, because generally homes are older here and less energy efficient. and secondly, because wages are lower, which means a higher percentage of household income goes towards fuel payments compared to more affluent parts of the uk. and lastly it's worth mentioning something that wasn't in the budget, no extra funding towards the public sector.

this is something the welsh labour government have been calling for, for some time, because almost a third of wales works in the public sector, and the welsh labour government's response to this — that this is a budget which prioritises petrol and potholes over investment in the public sector. overall, the treasury says northern ireland is getting an extra £130 million of funding over the next couple of years. it is not going to feel like an awful lot here, because local finances are under extreme pressure. that free childcare won't apply to northern ireland because that's something for the devolved government at stormont to decide whether to follow, and there's no government sitting here at the moment because of divisions over brexit. as for the energy price cap, well, customers in northern ireland already had a little more generous relief from energy bills earlier on this winter, so in effect energy prices here will increase slightly. there were one or two other pots of money for specific things in northern ireland,

one of them being northern ireland's tackling paramilitarism programme, there's an extra £3 million for that. it is something pretty unique to this place, to help communities deal with the effects of the armed gangs that still operate here. emma vardy there. well, there was a lot in the budget today — the chancellor was on his feet for an hour — so let's have a look at some of the other measures he announced. the energy price guarantee will remain until the start of july. those on pre—payment meters will be charged the same as those on direct debit. to help pubs the tax on a typical pint of draught beer will be frozen from august 1st. and cigarette duty will increase by 15%. for drivers, fuel duty has been frozen for another year. and there's £200 million for pothole repairs in england here's our business editor, simonjack, on what it all means for business. thank you, sophie. the chancellor has called this a budget for growth, and he needs business to help him deliver on that. something many businesses were hoping the government might reverse, is the rise in corporation

tax from 19% to 25% from april 1st. that's the rate of tax on profits over £250,000, though the government says only 10% of companies will pay that rate. but to soften that blow, the chancellor will allow companies to deduct every pound they invest in new it, new plant, new machinery from their profits, meaning the more companies invest the less tax they pay. but that's replacing a more generous scheme which ends this month — and it's only promised the new scheme for three years. the government also wants some those who have left theirjobs to return to the workforce. we've heard about childcare measures, but there were measures aimed at older workers too. the cap on the amount workers can put in their pensions savings over their lifetime before having to pay extra tax — currentlyjust over £1 million — will be abolished — you keep working, you keep saving.

and the amount workers and their employers can put in their pension pot tax free every year, will be raised from £40,000 to £60,000. opposition parties say these are tax cuts for the very highly paid. and to further tackle labour shortages, this wasn't in the speech, but immigration rules will be relaxed for some roles in the construction sector, including bricklayers, roofers and carpenters. other sectors struggling to recruit, including retail and hospitality, are disappointed tonight they weren't included. overall, the budget watchdog thinks these measures will help boost growth in the short term but the impact will fade if investment incentives aren't permanent. simon, thank you. another significant focus was on energy — as the chancellor announced plans to ensure a quarter of britain's energy will come from nuclear power. they are reclassifying nuclear energy as environmentally sustainable to drive more investment in the sector. it's already met with some opposition, as our climate editor, justin rowlatt reports. the floodlights are on tonight

and every night at europe's largest building site. work never stops at hinkley point in somerset where they are building the uk's only new nuclear plant. nuclear power is big and it's expensive, but it does deliver dependable energy 24/7 and the chancellor confirmed today the uk's low carbon future will involve much more of it. nuclear is essential as part of a future energy mix with wind and solar, renewables as a whole, in order to produce the amount of low carbon energy we need to fight climate change. and if you thought this was what green power looks like, think again. nuclear power is to be classified as environmentally sustainable alongside wind and solar, the chancellor said. re—designating it as green means it will get the same investment

incentives as renewable power, despite the long—term risks from nuclear waste. is it april fools' day? i mean, this is utterly ludicrous. how can an energy source be green when, for example, there is a huge amount of nuclear waste — we still don't know what to do with it — it remains radioactive for hundreds and hundreds of years? nevertheless, we were told we can expect to see new kinds of reactors in future, including smaller scale plants that could look a bit like this. we learned today that a new company great british nuclear will help drive investment in these and other nuclear technologies. justin rowlatt, bbc news. let's get a final thought from our political editor, chris mason, who's in westminster. chancellor's first budget, what is your assessment? es, chancellor's first budget, what is your assessment?— chancellor's first budget, what is your assessment? a senior figure in government — your assessment? a senior figure in government described _ your assessment? a senior figure in government described it _ your assessment? a senior figure in government described it to - your assessment? a senior figure in government described it to me - your assessment? a senior figure in government described it to me as l your assessment? a senior figure in government described it to me as a | government described it to me as a steady as she goes budget, and i think tonight as we step back, you can see why they attached that label

to it. taking a step back and looking at the economic picture, it remains bleak. it isjust looking at the economic picture, it remains bleak. it is just not quite as bleak as some of the forecasters suggested it might be by this stage. so disposable income remains squeezed, wages for many remain squeezed, wages for many remain squeezed, the tax burden remains high. jeremy hunt's pitch is to say he is a serious and careful custodian of the economy, trying to do what he can to lure people back into the workplace, trying to do something on child care in england, an increasingly competitive political space, with labour also making their own offer there. and then there is the political spike tonight where the argument looks like it will come in the coming days, and this is over this pensions perk for some of the highest paid. the government is trying to lure people back into work, or avoid them heading off into retirement on the golf course. labour think, heading off into retirement on the golf course. labourthink, hang heading off into retirement on the golf course. labour think, hang on a minute, this is, in their view, hugely unfair, even comparing it

with the cut in income tax for the very highest paid that liz truss briefly floated and then ditched. will it prove that totemic? who knows? labourwill try will it prove that totemic? who knows? labour will try and make an argument out of it and push it to a vote next week. asum argument out of it and push it to a vote next week.— argument out of it and push it to a vote next week. our political editor chris mason — vote next week. our political editor chris mason westminster, - vote next week. our political editor chris mason westminster, thank i vote next week. our political editor. chris mason westminster, thank you. in other news — financial markets have fallen in europe and the united states amid fears about the swiss banking giant credit suisse. shares in the bank — one of europe's biggest — slumped to a record low, as investors remain nervous after the collapse of america's silicon valley bank. shares in other major financial institutions, including barclays and hsbc, have also fallen sharply. our business correspondent michelle fleury is in new york for us. credit suisse is one of europe's biggest banks — just how serious could this be? regulators are in a state of high anxiety right now, fears are getting

very real. we are talking about not just regional banks in america but a global player, credit suisse, switzerland's second largest lender which saw its share price plunged to a record low after its top back are ruled out lending it any more money. to try and calm nerves the swiss central bank, banking regulator, issued a joint statement saying they were ready to provide liquidity if needed. what we have seen is that rising interest rates are beginning to expose cracks in the financial system. we should remind viewers at home that in the uk if you have deposits of up to £85,000 those are protected by the financial services compensation fund. so despite all of these worries in the markets about banks, most people are safe. still, what this does is show that everyone's faith in the financial system has been jolted everyone's faith in the financial system has beenjolted by the everyone's faith in the financial system has been jolted by the events of the last few days.— of the last few days. michelle, thank yon _

liverpool have been knocked out of the champions league tonight. having lost the first leg of their tie against real madrid 5—2, they were beaten again this evening. here'sjoe wilson. what chance of success did jurgen klopp give his team before kick—off in madrid? 196. well, coming from three goals down is part of liverpool folklore in europe, and of course they had to commit to attack. and of course that in turn left them vulnerable at the back. still in it, by theirfingertips, and the crossbar. liverpool's manager prowled and he scowled, and the minutes just ticked by. it was the spanish team forcing the pace. the only frustration for real madrid was self—inflicted. liverpool weren't troubling them. 75 minutes played, surely there'd be a chance for him, or him, or surely someone. too late, too late. klopp's 1% turned to zero as real madrid finally, a little scrappily, scored. then benzema! they will go on to try to win their 15th european cup. liverpool will try to finish fourth

in the premier league. sensations do happen, but by their very nature, not often. joe wilson, bbc news. time for a look at the weather. here's tomasz schafernaker. hello. hello, sophie and grieving, gloomy with outbreaks of rain, but i wanted to imply there will be a bit of sunshine around too, its not all bad, but overall we will cool it a dump picture for most of us on thursday. mild, though, and if you look at the satellite picture you can see where the clouds are streaming in from the south—west, quite a broad area of cloud wrapping around an area of low pressure and you can see the mild atmosphere spreading all the way from the azores engulfing much of the uk. not the far north of scotland. earlierwe the uk. not the far north of scotland. earlier we had some snow across the highlands, but eventually it will turn to sleet and rain and after that it is just mild across the board. the morning temperatures will be around 10 degrees in the south of the country, probably ten

in belfast, still cold in stornoway, 2 degrees command about