you're watching bbc news. i'm nicky schiller. let's go live to the house of commons where very shortly the chancellor, rachel reeves and her treasury colleagues will be answering mps questions for the first time since the labour government came to power. it of course comes ahead of october's budget which the prime minister, sir keir starmer, has already will be painful. there's also the controversy around her decision to remove winterfuel payments for millions of pensioners. rachel reeves has blamed the move on a £22 billion black hole in the public finances she says she has inherited from the conservatives. they have rejected that. it comes as britain's most senior civil servant, simon case, said the previous conservative government's failure to hold a spending review in its final years in office has contributed to uncertainty over the public finances. let's speak to our

chief political correspondent henry zeffman. can we start with that leaked letter from simon case which you have seen, what does it say? well the last time we saw rachel reeves and jeremy hunt facing off, was when rachel reeves declared that she'd got into office, looked at the bot books and discover there was a £22 billion black hole in public spending this year.

. simon cayce says he would note... let me translate the civil service speak. he's basically that the previous governments decision not to revise... was a big reason for uncertainty in public finances. that's quite a claim from the cabinet, i suspect they wanted it to stay private but it got leaked to me do it to stay private but it got leaked to m- it to stay private but it got leaked to m. ., ~ .,

leaked to me do you think that is likely to _ leaked to me do you think that is likely to come _ leaked to me do you think that is likely to come up _ leaked to me do you think that is likely to come up with - leaked to me do you think that is likely to come up with the i is likely to come up with the mp questions that we going to hear? �* , , mp questions that we going to hear? �*, _,,,, ., ., hear? it's very possible that a backbencher _ hear? it's very possible that a backbencher will _ hear? it's very possible that a backbencher will bring - hear? it's very possible that a backbencher will bring it - hear? it's very possible that a backbencher will bring it up. i backbencher will bring it up. jeremy hunt says this letter vindicate him. he says that earlier in the letter, during a technical passage, i won't bore you with it, he says that this vindicate him on claims that there that they were signed off that there was a black hole when there wasn't, i hope i'm not losing you here. this claim and counterclaim, and counter counterclaim, what it all really amounts to is what it is at the core of this governments economic policy. what kind of inheritance did they get from the conservatives? the government says, a terrible

inheritance. and what tax and spending decisions are they taking as a result? they need voters to believe that those tax infect spending decisions are fair. but also if you want tojudge this government are fair. but also if you want to judge this government on its own terms, they need those tax and spending decisions to be judged on their own terms. they have said that the mission is to get the economy growing. figs to get the economy growing. as soon as rachel reeves gets to herfeet soon as rachel reeves gets to her feet we will take you there. you mention the black hole. the black hole, leads us to the budget. there is the clash on the winter fuel payments which rachel reeves says she has to cut.— says she has to cut. that was 'ust says she has to cut. that was just one _ says she has to cut. that was just one announcement -

says she has to cut. that was just one announcement that. says she has to cut. that was l just one announcement that we understand will be more announcements on tax and spending cuts. most of them will come at the end of october as part of the budget. part of rachel reeves first labour budget in 15 years. what we will hearfrom budget in 15 years. what we will hear from rachel reeves at the end of october is how she's going to plug the vast majority of what she says is that black hole. the winter fuel allowance is very controversial. including on... but it rarely touches the side. there is going to be an awful lot law tax —— more tax or spending cuts. tax -- more tax or spending cuts. , ,., ., , tax -- more tax or spending cuts. , .,, ., cuts. this government has also introduced _ cuts. this government has also introduced a _ cuts. this government has also introduced a pensions - cuts. this government has also introduced a pensions review . cuts. this government has also | introduced a pensions review to ensure that money set aside is

working for both pensioners and the economy. i understand members from both the house —— both sides of the house will have questions. i remind them that this will be a budget to fix the foundations and to ensure people are better off. does the government recognise the importance of workers saving for their later years and that any moves to reduce the 25% or reductions in pension contributions would lead to greater pensioner poverty? so lead to greater pensioner poverty?— lead to greater pensioner poverty? lead to greater pensioner ove ? ., , , ., poverty? so many people who work hard _ poverty? so many people who work hard and _ poverty? so many people who work hard and save _ poverty? so many people who work hard and save for- work hard and save for retirement that money is not enough. that i recognise that and i believe that every penny saved into a pension to get a decent return. billions of pounds of investment will be

unlocked from the uk economy. we believe that reforms introduced could improve the pension pot by £11,000 for people saving for pensions. and that's why we leading the review to make sure that people get a decent return on their investment.— investment. pubs are the lifeblood _ investment. pubs are the lifeblood of _ investment. pubs are the lifeblood of our _ investment. pubs are the lifeblood of our local - lifeblood of our local communities. in the home of britain british buick brewing —— british brewing unfortunately it's got to be linked to the question... we've always had civil, occasionally robust interactions. it's now “p robust interactions. it's now up to us to hold them to

account for the decisions they make at the treasury. during the election labour promised on more than 15 occasions not to increase taxes on working people. do they recognise that working people have pensions too? and therefore can she give those people saving for the future peace of mind, that they will not increase taxes on pensions in the upcoming budget? pensions in the upcoming budaet? �* ., ., ., budget? i'm not going to speculate _ budget? i'm not going to speculate about - budget? i'm not going to speculate about what - budget? i'm not going to | speculate about what will budget? i'm not going to . speculate about what will be budget? i'm not going to - speculate about what will be in the budget. i'm absolutely determined to make sure that working people are better off. under the last government the tax burden reached its highest level and ordinary working people pay the price for that. this budget will be a budget fix the foundations after the mess left after the previous government and to make working people better off. we government and to make working people better off.— people better off. we have committed _ people better off. we have committed to _

people better off. we have committed to build - people better off. we have committed to build 1.25 . people better off. we have - committed to build 1.25 million homes. we've already... introduced mandatory housing targets and reintroduction of stomach in the previous government _ stomach in the previous government failed - stomach in the previous government failed to i stomach in the previous - government failed to support... can the — government failed to support... can the minister tell me what the approach to developing brownfield sites is going to be from — brownfield sites is going to be from this— brownfield sites is going to be from this government? as she knows from — from this government? as she knows from the _ from this government? as she knows from the chancellor - from this government? as she j knows from the chancellor and the deputy prime minister this government takes very seriously our commitment to deliver new homes and will take every opportunity to do that. that includes making improvements to support the delivery of housing

and infrastructure. the minister _ and infrastructure. the minister knows - and infrastructure. the minister knows that. and infrastructure. the| minister knows that the planning system is built on the back of the ability to make billionaires on the stroke of a pen. often this is not necessarily that this is in the best interests of local community. surely there is more that the government can do to ensure we tip the planning system to meet need rather than greed? system to meet need rather than creed? , , ., system to meet need rather than creed? ,, ., system to meet need rather than ireed? ,, ., ., greed? the issue of sale or ho -e greed? the issue of sale or hope value _ greed? the issue of sale or hope value is _ greed? the issue of sale or hope value is something i greed? the issue of sale or i hope value is something that was referenced in the mess manifesto and the government will set up something in due course. ~ , , , ., course. with permission i will answer this — course. with permission i will answer this question. -

course. with permission i will answer this question. with i answer this question. with robust _ answer this question. with robust fiscal rules and respect for economic institutions the government is building the confidence needed to deliver private — confidence needed to deliver private sector investment. it is vital— private sector investment. it is vital so _ private sector investment. it is vital so that the tax system supports _ is vital so that the tax system supports growth and that's why i supports growth and that's why i can— supports growth and that's why i can confirm that the government will be confirming a tax road — government will be confirming a tax road map for business to office — tax road map for business to office earnestly —— of the business _ office earnestly —— of the business certainty. last year the north-east _ business certainty. last year the north-east attracted - business certainty. last year the north-east attracted 67| the north—east attracted 67 foreign _ the north—east attracted 67 foreign investment- the north—east attracted 67' foreign investment projects, creating _ foreign investment projects, creating over— foreign investment projects, creating over 4000 - foreign investment projects, creating over 4000 jobs. - foreign investment projects, creating over 4000 jobs. inl foreign investment projects, i creating over 4000 jobs. in the key sector— creating over 4000 jobs. in the key sector from _ creating over 4000 jobs. in the key sector from plants, - key sector from plants, manufacturing, - key sector from plants, manufacturing, healthl key sector from plants, i manufacturing, health and key sector from plants, - manufacturing, health and tech, those _ manufacturing, health and tech, those who — manufacturing, health and tech, those who know _ manufacturing, health and tech, those who know the _ manufacturing, health and tech, those who know the north—eastl those who know the north—east know _ those who know the north—east know a — those who know the north—east know a huge _ those who know the north—east know a huge potential, - those who know the north—east know a huge potential, and - those who know the north—east know a huge potential, and i. know a huge potential, and i know— know a huge potential, and i know the _ know a huge potential, and i know the chancellor- know a huge potential, and i- know the chancellor understands that _ know the chancellor understands that what — know the chancellor understands that what is _ know the chancellor understands that. what is she _

know the chancellor understands that. what is she doing - know the chancellor understands that. what is she doing to- that. what is she doing to ensure _ that. what is she doing to ensure that _ that. what is she doing to ensure that we _ that. what is she doing to ensure that we can - that. what is she doing to ensure that we can createj that. what is she doing to- ensure that we can create more inward _ ensure that we can create more inward investment— ensure that we can create more inward investment and - ensure that we can create more inward investment and more i inward investment and more jobs? — inward investment and more jobs? l— inward investment and more “obs? ., ~ , jobs? i thank my right honourable _ jobs? i thank my right honourable friends i jobs? i thank my right| honourable friends for jobs? i thank my right - honourable friends for that question she asked an important question she asked an important question. the north—east has got huge potential to grow the economy through sectors through manufacturing, health, technology. this government were working at —— with our local mayors to risk flecked the north—east�*s strengths and deal with the barriers. as well as marrying some

of —— of -- with 55% of jobs based in of -- with 55% of “obs based in prestwrck. _ of -- with 55% of “obs based in prestwick, can _ of -- with 55% of jobs based in prestwick, can my _ of -- with 55% of jobs based in prestwick, can my friend - of -- with 55% of jobs based in prestwick, can my friend tell i prestwick, can my friend tell me what the government can do to increase investment in the sectors? i to increase investment in the sectors? ~' ., to increase investment in the sectors? ~ ., ., , sectors? i know that his experience _ sectors? i know that his experience as _ sectors? i know that his experience as his - sectors? i know that his - experience as his majesty's trade last week i had the opportunity to visit the manufacturing opportunity in scotland and see first—hand the excellent work that is going on to promote innovation in a whole load of sectors including aerospace. the uk already produces... and the aerospace sector added £11 billion to the uk economy last year. the government is putting investment at the heart of our growth strategy, including in scotland, and i look forward to

working with the honourable member in this endeavour. london is the top choice in europe _ london is the top choice in europe for inward investment and is — europe for inward investment and is home to more headquarters than any other european city, including many base — european city, including many hase in— european city, including many base in my constituency. how will the — base in my constituency. how will the government can support our capital city and support wider— our capital city and support wider economic growth around the country? the wider economic growth around the country?— the country? the regeneration of stratford — the country? the regeneration of stratford after _ the country? the regeneration of stratford after the - the country? the regeneration of stratford after the 0lympic| of stratford after the olympic games was truly phenomenal and i know that the honourable lady will be a strong voice for her constituency, and help to deliver the growth mission that is another one priority of this new government. the success of london's economy will be integral to delivering that mission and we will work with

the mayor of london as well as our mps to ensure that growth benefits people in the capital and across the country. to ensure we narrow the gap between rich and poor and also showcase the enormous and opportunities that london has on the international stage. we will... investment in our rural economy must focus heavily on rewarding our farmers for the food they produce and for the environment that they protect. the last government ring fenced to 4.4 billion pounds for england to support ourfarming billion pounds for england to support our farming sector. through indifference or incompetence they underspent and betrayed ourfarmers. will she confirm to me, to our farmers that she will not bake

in that