well, the headline figure is that taxes will rise by £40 billion. that was the announcement by rachel reeves. she said "any chancellor" would have done the same if they wanted to be "responsible" and "rebuild public services." a big part of that will be an increase in national insurance contributions for employers, with the rate rising from 13.8% to 15%. expected to generate more than half of these tax rises. personal taxes, rates of income tax and national insurance paid by employees, plus vat, remain the same. income tax band thresholds will be unfrozen, but not until 2028. there was a boost to public spending, an extra £22.6 billion for day—to day spending on the nhs in england — plus extra money for schools.

£6.7 billion for the department for education. the minimum wage will go up for over 21s, rising from £11.44 an hourto £12.21. and there was an announcement for home building, with the affordable homes budget being boosted by £500 million. on transport, confirmation of that rise in the cap on single bus fares from £2 to £3 — that's from january. bad news if you're a smoker with a rise in tobacco duty, plus there'll be a new tax on vaping liquid, introduced from next year. but good news if you like a pint, with duty on a pint of beer down by a penny. lots of other measures, which we'll chew over during the next few hours. there is so much to go through. let's go back to the comments. rachel reeves said the budget will " restore stability" in the country. this is not the first time that it has fallen to the labour party to rebuild britain. in1945...

in 1945, it was the labour party that rebuilt our country from the rubble of the second world war. in 1964, it was the labour party that rebuilt britain with the white heat of technology. and in 1997, it was the labour party that rebuilt our schools and hospitals. today, it falls to this party, to this labour government. to rebuild britain once again. loud cheers from the benches behind rachel reeves. the conservative leader, rishi sunak, has reacted to the chancellor's spending plans. the chancellor has no plan, if we got working age, welfare spending on people without disability or health

condition back to pre—covid—19 levels, that would free up £30 billion worth of savings. whether it is scrapping our plans to shrink the civil service on their failure to control welfare spending, this is not her inheritance, madam deputy speaker, these are her choices! and the result, higher spending, speaker, these are her choices! and the result, higherspending, higher borrowing, higher taxes, the result, higherspending, higher borrowing, highertaxes, it is broken promise after a broken promise and working people paying the price. the office for budget responsibility says this budget will lead to the biggest increase in borrowing outside of a crisis since 1992 against a largely unchanged economic and fiscal backdrop since the last forecast in march, this budget delivers one of the largest increases in spending tax or borrowing of any fiscal event in history. in the 14 years since the 0br was established, it was only george 0sbourne's first budget after the 2010 general election and rishi sunak�*s mid—pandemic economic update injuly 2020 that rival this budget in terms of the overall change in the stance of fiscal policy.

joining me now is our political correspondent, nick eardley. he is at the central lobby. what are the headlines you have picked out, certainly political? such iron it is a big deal, this budget is the obvious thing to say? rachel reeves and rishi sunak both agreed when they were speaking in the commons that big choices had been made. the? that big choices had been made. they were designed — that big choices had been made. tie: were designed to change that big choices had been made. tie1: were designed to change the course that the country's economy is no point in understating just how big some of these numbers are. £40 billion worth of tax increases, many of which will be felt by businesses. a big increase in borrowing for the investment that we've been hearing about from the government. also, a huge increase in spending, £70 billion a year more will be spent by this government by the end of this parliament under the plans that we have seen today. the nhs being by

far the biggest beneficiary of that, but the education system as well. the chancellor was trying to make a very direct argument that public services have been underfunded, they have been neglected, and you need to put the cash in to protect them. everyone will benefit from that. i was struck that she kept making the argument that businesses need a good nhs, good school systems if they are going to get the work force that is healthy and educated to do the jobs they need. but there is no doubt there is a big political battle to be had about whether the government went back on some of the promises they made during the election. we stayed here, didn't we? talking about rachel reeves saying she didn't think she needed to increase tax any more than the labour manifesto, today, she has gone a lot further, she says because of issues she has discovered that she was in the treasury. you can bet your bottom dollar that argument will be playing out over the next few years. if labour saying we needed to do

this to repair the foundations of the country, get public services back on track, to make the sums add up, the tories will keep arguing, and i bet they argue this into the next election, that labour went back on its word. we next election, that labour went back on its word-— on its word. we have already heard that from rishi _ on its word. we have already heard that from rishi sunak, _ on its word. we have already heard that from rishi sunak, it _ on its word. we have already heard that from rishi sunak, it was - on its word. we have already heard that from rishi sunak, it was all. that from rishi sunak, it was all about trust and broken promises, and if you can hear in the background, there are a variety of protest, another one has started up. let me ask you another question. 0bviously, all the focus on the headlines coming out, but with all budgets, the small print, the detail, sometimes a budget can look very different a couple of days than the track. 1 different a couple of days than the track. ., ., ., , ,., ., ., track. i have got two big books to no track. i have got two big books to go through. _ track. i have got two big books to go through. the _ track. i have got two big books to go through, the economic - track. i have got two big books to go through, the economic and - track. i have got two big books to i go through, the economic and fiscal outlook from the 0br and the treasury sums, explaining where the thing it all adds up. there are some things that are pretty important to flag up already. 0ne things that are pretty important to flag up already. one is gross, remember back in the election campaign, laboursaid its main mission was to deliver economic growth. saying that economic growth

had not been good enough over the last few years. well, the figures on that according to the 0br are not great. growth goes up a little bit in the next couple of years and then it comes down from the four because we had earlier in the year from the third year of this parliament. that is not good news for the government. they are not in that sense delivering sustained growth as they promise. another thing to flag up? rachel reeves talked about people having to feel change for it to be real. disposable household income, one of the things that the 0br measures that we look at after these fiscal events, it has come down as well. based on the forecast from march until now. real household disposable income will be slightly lower than it would have been under the plans were unveiled back in march. the government says those plans is not really add up so there's no point in looking at that. but there are definitely some things in the figures that will feel a little bit uncomfortable for some

people. inflation going up, mortgage rates going up, not massively, not like at the mini budget after liz truss, but some things that people will feel in their pockets. 0ne will feel in their pockets. one final one, national insurance contributions, the government said they are not going out for employees, that is true, there are only going up for employers. at the 0br says it will have an impact on the wages people are paid. it reckons that 76% or thereabouts of the course of increasing national insurance contributions for employers will be passed on to employees and their wages. as ever, the headlines are the headlines, there is a lot of detail to go through as well.— there is a lot of detail to go through as well. there is a lot of detail to go throu~h as well. . ., . . . through as well. thanks once again, that final thought _ through as well. thanks once again, that final thought from _ through as well. thanks once again, that final thought from nick, - through as well. thanks once again, that final thought from nick, let's i that final thought from nick, let's pick up with that. joining me now is shevaun haviland, director general of the british chamber of commerce, alongside paul nowak, the general secretary

of the trades union congress. thank you for being here with me. in terms of the headline thought about what has been laid out today, so much, what have you zeroed in on? for business, it's been a tough budget. big tax rises, coming in next april, the vast majority of businesses in the uk are small or medium bites —— medium size enterprises, it is hard to observe that cuts into their balance sheet. like the chancellor, they will have to make tough choices about where they invest in the future. hick to make tough choices about where they invest in the future.— they invest in the future. nick was ”ointin they invest in the future. nick was pointing to — they invest in the future. nick was pointing to the — they invest in the future. nick was pointing to the obr _ they invest in the future. nick was pointing to the obr are _ they invest in the future. nick was pointing to the obr are seeing - they invest in the future. nick was pointing to the obr are seeing a l they invest in the future. nick was i pointing to the obr are seeing a lot pointing to the 0br are seeing a lot of the course will be passed on to employees, do you think that is how it is going to run through? and genmark businesses tell us when they are looking to offset those costs, they will pass it on and prices. they may take it in the margin or they will reduce recruitment and change their salary, all of those things can happen. what we also

heard from the chancellor was future promises of investment and infrastructure builds and that will make the difference. ilentil]! infrastructure builds and that will make the difference.— infrastructure builds and that will make the difference. will come back to that. make the difference. will come back to that- what _ make the difference. will come back to that. what did — make the difference. will come back to that. what did you _ make the difference. will come back to that. what did you think - make the difference. will come back to that. what did you think overall? | to that. what did you think overall? the chancellor said she wanted to budget— the chancellor said she wanted to budget for growth to rebuild and repair— budget for growth to rebuild and repair public services, to put money in the _ repair public services, to put money in the pockets of working people, and no _ in the pockets of working people, and no return to austerity. i think she ticks— and no return to austerity. i think she ticks the boxes and all of those objectives — she ticks the boxes and all of those objectives. whether it is the massive _ objectives. whether it is the massive investment in our nhs, the boost _ massive investment in our nhs, the boost to— massive investment in our nhs, the boost to the — massive investment in our nhs, the boost to the national minimum wage, i am hopeful this will be a budget that people can see a tangible difference in getting access to an nhs waiting list, the money in their pay packet, the stuff that matters to people — pay packet, the stuff that matters to people at the end of the day. do ou to people at the end of the day. you worry to people at the end of the day. dr? you worry about the national insurance for employers, that is a major change and raising a huge amount of money. do you worry it prince of employers taking on new employees which drives growth are wage rises next year not being as great? 1

wage rises next year not being as treat? ., ., ., , ., ., great? i do not worry about that. it is a modest — great? i do not worry about that. it is a modest increase, _ great? i do not worry about that. it is a modest increase, 1.2% - great? i do not worry about that. itj is a modest increase, 1.2% national insurance. — is a modest increase, 1.2% national insurance, this knowledge employers will have _ insurance, this knowledge employers will have additional support from the government to cope with that, let's remember when we saw corporation tax go up, we did not have _ corporation tax go up, we did not have bumper pay rises for workers as a result _ have bumper pay rises for workers as a result i_ have bumper pay rises for workers as a result. ithink have bumper pay rises for workers as a result. i think they will be determined on the normal way next year. _ determined on the normal way next year. our— determined on the normal way next year, our members will want to see a decent _ year, our members will want to see a decent pay— year, our members will want to see a decent pay rises next year alongside that additional support. i did not see the — that additional support. i did not see the direct link between national insurance _ see the direct link between national insurance costs for employers and wages _ insurance costs for employers and wa . es. insurance costs for employers and wares, ., , , , , , insurance costs for employers and wares. ,, ,~ ., wages. the assessment they are not that treat wages. the assessment they are not that great