to sunak answering questions to journalists after speaking about inflation after that news that the bank of england becomes the latest central bank to hike interest rates, putting up half a percentage point to 5%. let's listen in. welcome to world business report, i'm victoria valentine. i believe labour party policy would make it worse, and i have tried not to get into too much politics at these things, but the labour party policy is to borrow £28 billion per year. you know my view, i think they are in huge amounts of money at a time when we are facing rising interest rates and inflation is not a good idea. maybe all the things it would be spent on might sound good but i think that is the one thing to do and it would make the situation worse. labour party policy is to not do any more exploration of energy supplies in the north sea, which i

think is a mistake. i believe in it so that we are going to get there but we are going to get there in decades and not overnight. between now and then we are still going to need oil and gas and if we had got supplies in the uk it seems to me absurd not to use those because it will create jobs and also nick improves our energy security and reduces inflation. we have seen what happens when energy dictators hold us to ransom, so cutting off our own supplies of energy seems short—sighted policy and it would the situation worse. on public sector pay, low value public sector workers, they do an incredible job, the nhs or the teachers, for example, and of course everyone would like to be paid more, but i have got to be cognisant of what we can afford and what is responsible and it would be dishonest to say, i'm going to borrow money so i can give you a generous pay rise and

make my life easier for a give you a generous pay rise and make my life easierfor a bit but knowing full well that all i have done is a fuel inflation and high interest rates and the extra pay packet you are going to get will be eaten up and then some because we are dealing with more inflation down the line. i am not going to do that. it is difficult for me. my life would be easier if i could say yes to everyone but it is the wrong thing for you and the country and also the one thing for those public sector workers because they will also pay the price of high inflation in the long run. that is my approach on that. bbc. in the long run. that is my approach on that bbc-— in the long run. that is my approach on that. bbc. , �* �* , on that. bbc. chris mason, bbc news, ou tried to on that. bbc. chris mason, bbc news, you tried to reassure _ on that. bbc. chris mason, bbc news, you tried to reassure people _ on that. bbc. chris mason, bbc news, you tried to reassure people this - you tried to reassure people this afternoon that it would be ok, but isn't the blunt truth is that for some people it will not be ok if you are going to be able to get inflation down? —— if you are not. i never said this was going to be easy and getting inflation down, i have always said this would be tough and it will take time. i'm determined to

do it and it is right that we do it because in the long run that is the best way to help everyone. inflation eats away at the money in your pocket and that is wrong and that is why i feel a moral responsibility to get it down and i'm prepared to do what it takes. that does mean making difficult decisions but those are the right decisions for the country in the long run. because if we don't get a grip of this it will get worse and it will last for longer. it hurts those on the lowest incomes. inflation is always the most people who are the most vulnerable and that is why i feel moral responsibility to get it down. i am being straight with people. it is not easy and it will take time but this is what the responsible leadership looks like, thatis responsible leadership looks like, that is the kind of leader i am and that is the kind of leader i am and thatis that is the kind of leader i am and that is what the government will do. we have got the financial times now.

you warned about the risk of inflation _ you warned about the risk of inflation when you were chancellor, do you _ inflation when you were chancellor, do you think the bank of england has moved _ do you think the bank of england has moved too _ do you think the bank of england has moved too slowly and has done too little too _ moved too slowly and has done too little too late to tame inflation? | little too late to tame inflation? support little too late to tame inflation? i support the bank of england in what they are doing and i would pent back to what i said earlier, what we are grappling with is something many countries are grappling with —— point back. interest rates in australia, canada, new zealand, america, similar to here. interest rates in europe are at the highest they have been in 20 years. to give you some context. the central banks around the world are worried about the persistence of inflation and are taking steps to bring it down by raising interest rates. that is the global context for what we are facing, it is not unique to the uk

and it is right that the bank of england takes strong action to bring inflation down. they have a target to get it back down to 2% and it is right they deliver on that because thatis right they deliver on that because that is the best thing for the country ultimately. there is no short—term easy fix, no short cut. anyone standing here telling you there's a short cut is not straight with you. those of us who are responsible for this have got to take the responsible decisions in the long—term interests of the country and that is what i'm doing and that is what the bank of england are doing. the daily telegraph lastly. i5 are doing. the daily telegraph lastl . , ., , are doing. the daily telegraph lastl. , ., are doing. the daily telegraph lastl . , ., , ., ., lastly. is there now is a real chance of— lastly. is there now is a real chance of a _ lastly. is there now is a real chance of a major _ lastly. is there now is a real chance of a major tax - lastly. is there now is a real chance of a major tax cut i lastly. is there now is a real. chance of a major tax cut this lastly. is there now is a real- chance of a major tax cut this year or is— chance of a major tax cut this year or is that — chance of a major tax cut this year or is that something that is still possible? — or is that something that is still possible? your own backbenchers are calling _ possible? your own backbenchers are calling for— possible? your own backbenchers are calling for tax cuts, are they being irresponsible? it calling for tax cuts, are they being irresponsible?— calling for tax cuts, are they being irresponsible? it goes back to what i said ou irresponsible? it goes back to what i said you only. _ irresponsible? it goes back to what i said you only. l — irresponsible? it goes back to what i said you only, i would _ irresponsible? it goes back to what i said you only, i would love - irresponsible? it goes back to what i said you only, i would love to - irresponsible? it goes back to what i said you only, i would love to cut| i said you only, i would love to cut your taxes tomorrow, i am a conservative politician, who would

not want to cut taxes? i would have done that already if i thought it was a good thing to do but burn lots of money to do things that sound great is not the responsible approach —— bearing lots of money. the government has it puts food on the fire of inflation and it means it will not do anyone favours —— it puts fuel on the fire. the biggest tax cut in government could give to you is to reduce inflation because it is inflation which is making everyone poorer and eating into the pounds in your pocket and eroding their paycheques and putting up the prices of everything and eating into your savings. inflation is the tax. if we can halve inflation and get it down

to 3% over time, that is the biggest tax cut we can deliver, so that is what i'm focused on. thank you so much for having me. it has been great to meet you, especially new guys, have were very eloquent talking about what you are doing —— who were very eloquent. we will get through this tough stuff and we should be confident about the future because of people like you, talking in such an inspiring way about what you want to do in your careers annual story repeated across the country is why we should have confidence in the future our country —— and your story. myjob is to give you every opportunity and support your success and that is what i'm trying to do. thank you very much, everyone. trying to do. thank you very much, eve one. , ,, ., ~ trying to do. thank you very much, eve one. , ,, .,~ , everyone. rishi sunak finishing were ou everyone. rishi sunak finishing were you started. — everyone. rishi sunak finishing were you started. saying _ everyone. rishi sunak finishing were you started, saying we _ everyone. rishi sunak finishing were you started, saying we will— everyone. rishi sunak finishing were you started, saying we will get - you started, saying we will get through this and that it was right for the bank of england to take action with the half percent

increase in the interest rates. he said the government was trying to help but there was the fundamental need to drive down inflation and he was questioned about one of his pledges to halve inflation and whether he is on track for that by the end of the year. economies around the world facing the same issues, he said, but so many analysts are pointing to the core inflation numbers in the uk that are still going up and whether that is unique to the uk in terms of why we have these levels of inflation. he was questioned on other issues like why he did not vote on the suspension of borisjohnson from parliament at the start of the week but returning constantly to the issue of inflation. major set piece speech from the prime minister on what has been a difficult political day. much more on that major story throughout the day.

welcome to verified live. let's start with that massive hunt for the missing submersible in the north atlantic, which is now in a critical phase. fears are growing for the five people onboard the missing vessel, which lost contact during a descent to the wreck of the titanic. it's thought the oxygen supply on board may run out today. but the us coast guard insists it remains focused on rescuing the crew alive. the search area has been doubled in size, and a french ship — with a robot that can reach the sea bed — is on site. and our reporter danjonson joins us now from boston. what updates are you getting from the coastguard? the what updates are you getting from the coastguard?— what updates are you getting from the coastguard? what updates are you getting from the coast uard? ., ., ,, the coastguard? the word from the us coast guard this _ the coastguard? the word from the us coast guard this morning, _ the coastguard? the word from the us coast guard this morning, which - the coastguard? the word from the us coast guard this morning, which is - coast guard this morning, which is coordinating the rescue operation, is that this is still an active search and rescue mission. hope has not been lost and every effort is

being made to locate the submersible and if possible to enact some sort of rescue. there are more and more assets and vehicles and deep sea diving equipment that is arriving on the scene and we know that to remotely operated submersible have gone into the water, one from a canadian ship and one from a french ship, a remotely operated submersible which is capable of operating down at depths of 6000 metres. so way lower than the wreck of the titanic. those submersibles are going down to the sea bed to try to find any trace of what happened to find any trace of what happened to the titan submersible and the five men who went down in that submarine on sunday. everyone is aware that the estimates of how much oxygen was left for those five men have varied, and we cannot be definitive about when the air and oxygen supply will run out, but the estimates were in the last hour or so and if those men survive whatever

went wrong in the submersible, and they were not able to release themselves and get their own oxygen supply and they were still reliant on the oxygen of the craft, and it does now seem to be dawning on people that time and the oxygen is running out and that may mean that people are having to accept hope of being lost here and the reality that evenif being lost here and the reality that even if the men survived the initial problem on board the craft, they may now have lost their lives and that the operation now may be moving into more of a recovery phase but the us coast guard is not letting up and there are more assets and diving equipment is being flown to the search area from around the world. it is a huge area and a challenging search but the coastguard says it goes on. search but the coastguard says it noes on. ., goes on. down in boston, we will return to you _ goes on. down in boston, we will return to you later. _ goes on. down in boston, we will return to you later. -- _ goes on. down in boston, we will return to you later. -- dan. - goes on. down in boston, we will| return to you later. -- dan. these

return to you later. —— dan. these pictures coming into us from raf lossiemouth following the overnight request. more equipment and more personnel heading to canada. we do not have those pictures at the moment. live now to dr sarah spelsberg — she serves as faculty for world extreme medicine. she's also the medical lead of project neptune 100 — which looks at how the human body handles long—term exposure to pressure. thanks forjoining us about what is happening to the body at these depths for this sort of length of time. —— tell us about what is happening. time. -- tell us about what is happening-— time. -- tell us about what is haueninu. �* . happening. i'm concerned about the cabin because _ happening. i'm concerned about the cabin because if _ happening. i'm concerned about the cabin because if they _ happening. i'm concerned about the cabin because if they have - happening. i'm concerned about the cabin because if they have lost - cabin because if they have lost pressure that would have been a catastrophic event, but the biggest concerns down there are going to be

hypothermia and how long their oxygen supply will last. in hypothermia and how long their oxygen supply will last. in terms of ox ten, oxygen supply will last. in terms of oxygen. tell _ oxygen supply will last. in terms of oxygen. tell me — oxygen supply will last. in terms of oxygen, tell me more _ oxygen supply will last. in terms of oxygen, tell me more because - oxygen supply will last. in terms of oxygen, tell me more because we | oxygen supply will last. in terms of- oxygen, tell me more because we know that three of the people are very experienced down there, how much can you actually slow the consumption of oxygen and what is happening with the body is the build—up of co2 happens? the body is the build-up of c02 ha ens? ., u, the body is the build-up of c02 ha ens? ., , ., the body is the build-up of c02 ha- ens? ., , ., . happens? you can slow it quite a bit. if happens? you can slow it quite a bit if you _ happens? you can slow it quite a bit if you are — happens? you can slow it quite a bit. if you are staying _ happens? you can slow it quite a bit. if you are staying still- happens? you can slow it quite a bit. if you are staying still and i bit. if you are staying still and breathing in and out through your nose and taking slow breaths and keep yourself calm, you can slow it quite a bit. hypothermia, while it initially increases the metabolic rate, overtime initially increases the metabolic rate, over time it decreases the metabolic rate so if they survive the hypothermia it could actually help them by slowing their metabolic rate down. and with carbon dioxide, it is like if you have ever been to the dentist and had laughing gas or

too much laughing gas, over time your heart mate might go faster and there might be a period of anxiety and headaches, but eventually you drift off to sleep. an experienced explorer and adventurer would be able to keep themselves karma through that. b, able to keep themselves karma through that-— through that. a final thought because they _ through that. a final thought because they still _ through that. a final thought because they still have - through that. a final thought because they still have to . through that. a final thought l because they still have to find through that. a final thought - because they still have to find the vessel. , , , . ., ., vessel. keep themselves calm through that. if the vessel. keep themselves calm through that if they are _ vessel. keep themselves calm through that. if they are found, _ vessel. keep themselves calm through that. if they are found, and _ vessel. keep themselves calm through that. if they are found, and i _ vessel. keep themselves calm through that. if they are found, and i know- that. if they are found, and i know the have that. if they are found, and i know they have hyperbolic— that. if they are found, and i know they have hyperbolic chambers - that. if they are found, and i know they have hyperbolic chambers on| they have hyperbolic chambers on site, but how would the body deal with that? i’m site, but how would the body deal with that? �* ,, site, but how would the body deal with that? �* , , _, . site, but how would the body deal with that? �* ,, _, . ., with that? i'm less concerned about decompression _ with that? i'm less concerned about decompression after _ with that? i'm less concerned about decompression after being - with that? i'm less concerned about decompression after being on - with that? i'm less concerned about decompression after being on a - decompression after being on a submariner than i decompression after being on a submarinerthan i am decompression after being on a submariner than i am about hypothermia and hypoxic dehydration, and also when you are laying still for a long period of time you are at risk of blood clots. those other things that concern me the most. do

i think they need to go directly to a hospitalfor tests? i think they need to go directly to a hospital for tests? absolutely. i think they need to go directly to a hospitalfor tests? absolutely. i don't necessarily think they would... . , �* would... inaudible . we would. . . inaudible . we have _ would. . . inaudible . we have got - would. . . inaudible . we have got to - would... inaudible i . we have got to leave would... inaudible - . we have got to leave it would... inaudible _ . we have got to leave it there but thanks forjoining us. around the world and across the uk. this is bbc news. let's take a look at some other stories making news across the uk. the search for a 42 year old firefighter, missing while on a charity swim across the english channel has been called off. iain hughes, from dudley, started the solo challenge with a support boat on tuesday from dover before disappearing. mr hughes has been aiming to raise £21,000 for the british heart foundation, midlands air ambulance and fire fighters charity. an annual survey from the higher education policy institute has found that more university students in the uk are working a paid job

alongside their studies. research suggests 55% of students are now doing paid work, compared with a total of 45% of them 12 months ago. in the survey of more than 10,000 students, 76% also said the cost of living has had a negative impact on their studies. the defence secretary, ben wallace — who had been seeking to become the next head of nato — appears to have ruled himself out. mr wallace told the economist magazine that he now wasn't going to get thejob — in the face of american pressure for the current secretary—general, jens stoltenberg, to remain in post. you're live with bbc news. in the uk, the bank of england is the latest central bank to put up interest rates. they've gone up by half a percentage point to 5%. that's the highest rate for 15 years. it means higher monthly payments for about 1.5 million people with a tracker or variable rate mortgages as well as those about to re—mortgage. the bank of england, like most central banks around the world, is tackling high inflation and trying to curb prices.

just a quick comparison — in the us, interest rates stand at 5% to 5.2%. levels not seen for 16 years, although the fed held them at its last meeting. the european central bank recently raised its main interest rate, by a quarter of a percentage point to 4%. and on the extreme end of the scale, turkey, a few hours ago, hiked its main interest rate from 8.5% to 15%. here's the head of the bank of england speaking after thursday's decision. we have to get inflation back to target. we have to have price stability. we have raised interest rates to do that. we have seen strength in the economy. i think there is good news in this. the economy has been more resilient, it has been stronger. we have got very low unemployment. but it is leaving us with inflation looking much more persistent. we think inflation is going to come down markedly this year

but there are signs of it being more persistent. and i felt it was right that we took this action, this decisive action today. more politics in a moment. but the bank of england's decision means more pain for mortgage holders, as andy verity reports. i'm currently paying £560 a month. at the end ofjuly it will go on to variable and it will go up to £1,200 a month. our mortgage has gone up by over £2,200 a year, it is a huge impact on our expenditure and has an impact on the family as a whole. rose is going through what mortgage brokers call payment shock. i am having to cut down on how much i spend a week on food. i am having to plan my meals that i cook for the children and i am also currently looking at getting another part—time job

alongside my currentjob. do you want a bit more? and so is craig. my wife is working nights and i am working days so that reduces childcare costs. we are cutting down on things such as takeaways and nice—to—haves. we have looked at other tv providers, to reduce those fees as well. they're among millions coming off a fixed rate mortgage deals, only to find they can only get a new one at interest rates three times what they were two years ago. renters are being hit too, as thousands of landlords pass on higher mortgage costs. the bank of england's decision to boost rates by half a percentage point, when many expected a quarter, brings its official rate to 5%. compared to a low of 0.1% two years ago it is a multiple of 50, the steepest rise in over 30 years. but then again, inflation is only slowly coming down from its highest level in a0 years. it is not for the bank of england to do less. the alternative is for the government to do more,

to try to help in two ways. one, to enhance the responsiveness of the economy, to make sure we do not have to fall into recession in order to control inflation. and two, to strengthen safety nets. the bank of england alone cannot deliver lower inflation, financial stability and no recession. it needs help from the government. some people are slipping through that modest safety net, like andrew wood, who used to be a super—fit sports psychologist, but then caught long covid. since then he's been physically unable to work and now his mortgage payments are set to double. there are millions of people suffering the same thing. hopefully this wil revolutionise the way we treat post—viral illnesses. if they want people to come back into the workplace, finding out and researching the root cause of the issue, it will alleviate everything else. while the economy's stagnating, the majority of rate—setters on the bank's nine member committee are worried about the jobs market,

where employers are bidding up wages to atrract and keep staff, leading to the biggest pay rises this century. they fear employers will have to boost prices even more to cover bigger wage bills. four more rises are expected by city traders up to a peak of nearly 6% next year. but a minority think they have already gone too far. andy verity, bbc news. like to return to the political aspect. the opposition labour party has alse reacted to the bank of england's decision coming in. here's shadow labour chancellor, rachel reeves. today is an incredibly worrying time for many families right across the country who are concerned about what happens when they come off fixed term mortgage deals. already, people were facing mortgage payments of £3,000 on average more than the rates they were coming off of. this is going to heap even more pain on ordinary working families. it is why today labour have set out a five—point plan to help people with their mortgages. live now to westminster

with our correspondent damian grammaticas. we were just watching rishi sunak talking to workers and to the press about the bank of england and about inflation and he talks about it being a moral obligation to cut it but people want to know how his government is going to do that. he promised to halve it by the end of the year but he looks way off track. certainly looks increasingly difficult or tricky for him and his government to hit that target. that target is to bring inflation down to around 5.5%. when they set it it was around 5.5%. when they set it it was around 10%. at the moment the figures we are looking at, 7—8%, so moving down but the question is, will it come down enough to hit the target? if you listen to the tone of the prime minister today, he is

saying this is going to be tough and difficult. he never said it would be easy, he said. but then he had words of reassurance, trying to say everything will be ok, trust me, stick with me. he wants to have this image which he has crafted fairly carefully from the outset as a safe economic pair of hands, in contrast to his predecessor liz truss. and borisjohnson as well to some extent. he wants to have a safe pair of hands aura around him and he wants to be seen as someone who delivers what he promises is a sensible economic manager. this is a real challenge to all of that. it makes it tricky for rishi sunak and tricky for him because he was talking about his pledges and one of his pledges is to halve inflation and other pages is to grow the economy and to see debt reducing. over the medium term. to do all of

those things looks increasingly complex and when you look at what he said his government was doing, essentially he said we have got to stick the course, but the course is not being set by the government but by the bank of england. independently sets interest rates and its target is to bring down inflation. the government, he pointed at things the government is doing, he talked about energy supply and labour market supplies, but most of those things are not things that will have any impact in the next few months, childcare reforms are next year and the year after, energy supplies, he talked about nuclear, thatis supplies, he talked about nuclear, that is 2030, so these will not have an impact right now. the government is saying that the bank of england is saying that the bank of england is in the lead on this and the government, he said he talked about the need for help, but essentially that means, he talked about supermarkets, but he is talking to the banks and supermarkets about

them voluntarily doing things to help people like consumers and borrowers and in the meantime with the prime minister is sitting tight and keeping his fingers crossed hoping it will work out.- and keeping his fingers crossed hoping it will work out. thanks for “oininr hoping it will work out. thanks for joining us- — hoping it will work out. thanks for joining us. laybutt _ hoping it will work out. thanks for joining us. laybutt have _ hoping it will work out. thanks for joining us. laybutt have been - hoping it will work out. thanks for i joining us. laybutt have been facing the same questions about how you actually bring down core inflation —— labour. iwant actually bring down core inflation —— labour. i want to quickly show you the pictures from the covid inquiry. patrick vallance giving evidence, former scientific adviser for the british government. that is currently going on. we will bring you the latest from that covid inquiry injust you the latest from that covid inquiry in just a you the latest from that covid inquiry injust a moment. hello, there. nice day for scotland and northern ireland today with some sunshine. for england and wales

there'll be some sunny spells, but we're going to find a scattering of showers around as well and maybe a risk of some slow moving thunderstorms through parts of the midlands and eastern england as well. warmer in the sunshine again today. temperatures widely in the low to mid 20s and could make 28 degrees in the south east of england. those showers that do develop shouldn't last too long this evening. they'll fade away and it'll be dry for a while. but then as we head further into the night, we're going to find cloud coming in from the atlantic that will bring some rain into northern ireland, push the cloud over the irish sea heading into western scotland as well. quite a warm night tonight, but there are warmer and more humid nights to come as we head into the weekend. this is the picture, though, on friday. and that rain clears northern ireland to be followed by some sharp showers, some rain pushes into scotland, into northern england and across wales. many sheltered eastern areas may well be dry and through much of the midlands towards the southeast we should see more sunshine around here. and this is where we'll see the highest temperatures around the mid 20s in the south east of england. under the cloud and some

rain at times further north and west temperatures will be a bit lower, and temperatures may be a bit lower for the women's ashes cricket at trent bridge, day two. it should be dry this time, even though there will be quite a bit of cloud around. and there'll be quite a cloudy start, i think, for many of us to start the weekend, we will see the overnight rain clearing away. just a few showers around, mainly drifting northwards across scotland. the cloud should tend to thin and break and that will allow it to get warmer temperatures into the mid twenties for scotland and northern ireland and could be close to 30 degrees in the south east of england. so it's getting hot on saturday. it's also getting really quite humid as we draw this humid air, this muggy airfrom continental europe ahead of this weather front, which will eventually bring a change in the weather. that's going to bring some heavy rain and some thunderstorms into northern ireland and then through the day towards scotland, wales and some western parts of england. staying dry until late in the day for eastern areas.

here, it's still going to be very muggy. temperatures could be 30 degrees in the southeast and east anglia. out to the west after the rain, it does turn a little cooler and fresher, but until then, it looks like it's going to be dry for glastonbury. it will be getting more humid and also warmer.

this is bbc news, the headlines... as the search effort for the missing sub enters a critical phase, more international help arrives at the scene.