rescuers battle to reach communities cut off by flash floods in spain, as the death toll rises to nearly 100. a breast surgeon jailed for his botched work gives evidence into the deaths of more than 60 of his former patients. and a stunning viaduct — made famous as harry potter's route to hogwarts — is repaired to keep its future looking magical. and coming up on bbc news, pep guardiola says his manchester city side are in trouble with only 13 fit players. good afternoon and welcome to the bbc news at one. the chancellor has admitted that increasing taxes in the budget is likely to hit workers

in the form of lower pay rises. rachel reeves told bbc breakfast her decision to raise national insurance contributions for employers could impact wage growth for private sector workers because companies will need to find some way to meet the extra costs. in a moment, we'll get reaction to some of the key changes that have been announced, first our political correspondent iain watson has the latest. kier starmer and rachel reeves have been on something of a political journey, they promised limited tax rises before the general election, but announced substantial tax increases just a few months later. the bulk of this, £25 billion, coming from businesses in the form of higher national insurance contributions. employees national insurance remains unchanged, this morning the chancellor admitted working people would pay a price. i said that it will have consequences. it will mean that businesses will have to absorb some of this through profits. it is likely to mean wage

increases might be slightly less than they otherwise would have been. but overall, the office for budget responsibility forecast that household income will increase in this parliament. i was able to announce £22.6 billion of additional money for day—to—day spending in the health service... the money for day-to-day spending in the health service. . ._ health service... the prime minister and chancellor _ health service... the prime minister and chancellor had _ health service... the prime minister and chancellor had travelled - health service... the prime minister and chancellor had travelled to - health service... the prime minister and chancellor had travelled to the l and chancellor had travelled to the west midlands to meet nhs staff and to highlight their cash injection for the health service. kier starmer insisted higher taxes would provide better services.— better services. yes, difficult decisions. — better services. yes, difficult decisions, but _ better services. yes, difficult decisions, but we _ better services. yes, difficult decisions, but we have - better services. yes, difficult decisions, but we have takenj decisions, but we have taken difficult — decisions, but we have taken difficult decisions now and i think everyone. — difficult decisions now and i think everyone, many people, would agree health. _ everyone, many people, would agree health, education and housing and issues _ health, education and housing and issues like — health, education and housing and issues like that are the really important things for our country to be driving — important things for our country to be driving towards. the important things for our country to be driving towards.— be driving towards. the chancellor has said she _ be driving towards. the chancellor has said she does _ be driving towards. the chancellor has said she does not _ be driving towards. the chancellor has said she does not want - be driving towards. the chancellor has said she does not want to - be driving towards. the chancellor has said she does not want to do | has said she does not want to do another budget like this again. the red box packed full of difficult decisions. some of the independent experts have pored over the contents and think that further tax rises might be necessary. she

and think that further tax rises might be necessary.— and think that further tax rises might be necessary. she is looking at significant _ might be necessary. she is looking at significant increases _ might be necessary. she is looking at significant increases in - might be necessary. she is looking at significant increases in spending this year— at significant increases in spending this year and — at significant increases in spending this year and next _ at significant increases in spending this year and next but _ at significant increases in spending this year and next but then - at significant increases in spending this year and next but then the - this year and next but then the rate of increase — this year and next but then the rate election she was not going to raise ta increase has just raised election she was not going to raise of increase really. _ this year and next but then the rate of increase really. a _ this year and next but then the rate of increase really. a sharply- this year and next but then the rate ta increase really. t raised election she was not going to raise ta increase really. aaised election she was not going to raise ta increase really. a sharply to the of increase really. a sharply to - 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could have a knock—on _ next year's spending review and it could have a knock—on effect - next year's spending review and it could have a knock—on effect on . could have a knock—on effect on higher— could have a knock—on effect on higher taxes _ could have a knock—on effect on next year's spending review and it could have a knock—on effect on . could have a knock—on effect on higher— could have a knock—on effect on higher taxes _ could have a knock—on effect on higher taxes thereafter. - could have a knock—on effect on higher taxes thereafter. the - higher taxes thereafter. the higher taxes thereafter. - could have a knock—on effect on higher taxes thereafter. the - higher taxes thereafter. the olitical higher taxes thereafter. the political divisions _ higher taxes thereafter. political divisions between higher taxes thereafter- political divisions between the higher taxes thereafter— olitical higher taxes thereafter. the political divisions _ higher taxes thereafter. political divisions between higher taxes thereafter- political divisions between the higher taxes thereafter— political divisions between the main parties seem even clearer now than political divisions between the main parties seem even clearer now than they did at the last election. some they did at the last election. some measures suggest the budget is right measures suggest the budget is right on the inside as well as the on the inside as well as the outside, vat on private school fees, outside, vat on private school fees, more tax on private jet flights, for more tax on private jet flights, for example. this week and the example. this week and the conservatives choose the new leader conservatives choose the new leader and rachel reeves appears to have and rachel reeves appears to have succeeded in uniting the remaining succeeded in uniting the remaining candidates. they both hate her candidates. they both hate her budget. candidates. they both hate her budget. candidates. they both hate her budaet. .. , , budaet. .. , , candidates. they both hate her budaet. , , ., budget. rachel reeves is a compulsive _ budget. rachel reeves is a compulsive liar. _ budget. rachel reeves is a candidates. they both hate her budaet. , , ., budget. rachel reeves is a compulsive _ budget. rachel reeves is a compulsive liar. _ budget. rachel reeves is a compulsive liar. she - 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taxes. she hasjust raised taxes. she hasjust raised in by more than any other chancellor in 30 years. she said she would not increase borrowing. she has massively hyped borrowing. then;r increase borrowing. she has massively hyped borrowing. they do not understand _

will be lowered, too. capital gains tax is also going up — that's the profit you make from selling assets like shares. this doesn't include residential property. the freeze on inheritance tax thresholds will continue until 2030. and inherited pensions will also be taxed from april 2027. our chief economics correspondent, dharshini david, is here to help break some of this down. dharshini, what do these changes mean in practice? an awful lot of tax rises, how much of a bang are we going to see, the possibility and may not be enough to give us the kind of public service improvements we want to see. we may see further tax rises. merely detecting concerning economists and businesses as they pour over the numbers, it may not deliver the kind of growth the chancellor promised, the rise in national insurance contributions for employers is likely to give bosses a headache.

together with the rise in minimum wages, changes to workers' rights, many are saying, we will have to cease lower pay rises, we could see jobs being hit as well. it ultimately means that government gets less money than it helps. economists say put it all together, we could be looking at the second worst parliament when it comes to the improvements in incomes and living standards in modern times. put it another way, the average worker according to the resolution foundation, take away inflation, they may only be £13 per week better off than they were 20 years ago. as i am talking to you right now, we have seen an increase in the cost of new borrowing for government as well because of the amount rachel reeves wants to borrow and also because of concerns measures add to inflation. interest rates may also fall more slowly than we currently expect. thank you. away from the headline figures, here are some of the other ways the budget might affect your day—to—day life. if you're a smoker or use vapes,

it'll cost you more. taxes on tobacco are going up and you'll have to pay more duty on vaping liquid. from february, the tax on draught alcoholic drinks will go down by 1.7%, to shave a penny off a pint in the pub. a 5p cut in fuel duty on petrol and diesel, which was due to end in april, has been extended for another year. and carers will be able to earn more before losing their benefits. the maximum earnings threshold will go up from £151 to £195 a week. our business correspondent marc ashdown has been finding out how those changes have gone down. rachel reeves is budgeting and boosting growth which means businesses like this in bradford expanding, but they have been left counting the cost of rises in the minimum wage and employer national insurance contributions. taste minimum wage and employer national insurance contributions.— insurance contributions. we will have incurred _ insurance contributions. we will have incurred another _ insurance contributions. we will have incurred another half - insurance contributions. we will have incurred another half £1 i have incurred another half £1 million in expenses. we were looking

at employing up to 300 extra members of staff. we are going to have to revise that maybe introduce technology, maybe do things differently. technology, maybe do things differently-— technology, maybe do things differently. record rise in the employment _ differently. record rise in the employment allowance - differently. record rise in the employment allowance to - differently. record rise in the l employment allowance to more differently. record rise in the - employment allowance to more than £10,000 will shield the very smallest businesses. they can pay four employees the minimum wage without paying any national insurance. but kevin, just opened a fruit and veg shop in bristol, is worried about business rates relief dropping from 75% down to 40% from april. this dropping from 75% down to 4096 from a - ril. �* , . dropping from 7596 down to 4096 from aril. , , ,, dropping from 7596 down to 4096 from april. as a new business, you don't really make — april. as a new business, you don't really make money _ april. as a new business, you don't really make money for _ april. as a new business, you don't really make money for the - april. as a new business, you don't really make money for the first - really make money for the first vear~ _ really make money for the first vear~ if — really make money for the first year. if you do, you are lucky. i don't _ year. if you do, you are lucky. i don't even _ year. if you do, you are lucky. i don't even take a wage at the moment and now— don't even take a wage at the moment and now i— don't even take a wage at the moment and now i have to give the government more money for something i do not _ government more money for something i do not get _ government more money for something i do not get any money out of, i 'ust i do not get any money out of, i just think— i do not get any money out of, i just think it _ i do not get any money out of, i just think it is pretty unfair. the buduet just think it is pretty unfair. the budget has _ just think it is pretty unfair. iie: budget has been just think it is pretty unfair. the: budget has been hailed just think it is pretty unfair. ti9 budget has been hailed by just think it is pretty unfair. ti9: budget has been hailed by labour just think it is pretty unfair. ti9 budget has been hailed by labour are standing upfor budget has been hailed by labour are standing up for working people but the consensus among economists is about three quarters of the pain being dished out to businesses will

being dished out to businesses will be felt eventually by employees mainly in the form of lower wages for new starters and smaller pay rises. up and down the country, people have been digesting what the budget means for them. we people have been digesting what the budget means for them.— budget means for them. we have worked and _ budget means for them. we have worked and saved _ budget means for them. we have worked and saved all _ budget means for them. we have worked and saved all our - budget means for them. we have worked and saved all our lives, i budget means for them. we have | worked and saved all our lives, we don't _ worked and saved all our lives, we don't know— worked and saved all our lives, we don't know how much we will have left to _ don't know how much we will have left to live — don't know how much we will have left to live on.— left to live on. they are putting more money — left to live on. they are putting more money in _ left to live on. they are putting more money in the _ left to live on. they are putting more money in the nhs, - left to live on. they are putting more money in the nhs, that l left to live on. they are putting | more money in the nhs, that is fantastic — more money in the nhs, that is fantastic. :, , more money in the nhs, that is fantastic. ., , _, more money in the nhs, that is fantastic. ., , , fantastic. the wealthy could shelter more than the _ fantastic. the wealthy could shelter more than the people _ fantastic. the wealthy could shelter more than the people who - fantastic. the wealthy could shelter more than the people who are - fantastic. the wealthy could shelter| more than the people who are really struggling. brute more than the people who are really stru: culin.~ more than the people who are really stru~lin~. ~ ., more than the people who are really stru~alina.~ ., , struggling. we need to be looking after the most _ struggling. we need to be looking after the most vulnerable - struggling. we need to be looking after the most vulnerable people | struggling. we need to be looking i after the most vulnerable people and that is— after the most vulnerable people and that is where we should be putting the focus — that is where we should be putting the focus. ., , that is where we should be putting the focus. :, , :, the focus. people need to live. if ou are the focus. people need to live. if you are working, _ the focus. people need to live. if you are working, you _ the focus. people need to live. if you are working, you need - the focus. people need to live. if. you are working, you need enough money— you are working, you need enough money to— you are working, you need enough money to live _ you are working, you need enough money to live-— money to live. people working on minimum contracts _ money to live. people working on minimum contracts for _ money to live. people working on minimum contracts for peanuts, l money to live. people working on i minimum contracts for peanuts, so any improvement in the minimum wage has got to be good. any improvement in the minimum wage has got to be good-— has got to be good. millions of workers are — has got to be good. millions of workers are celebrating - has got to be good. millions of workers are celebrating just i has got to be good. millions of i workers are celebrating just that, has got to be good. millions of - workers are celebrating just that, a boost to their pay from april thanks to an increase in the minimum wage. iam to an increase in the minimum wage. i am really pleased because the minimum — i am really pleased because the minimum wage is going up and it means— minimum wage is going up and it means i— minimum wage is going up and it means i can continue to work part-time _ means i can continue to work part-time— part-time. this nursery in huddersfield _ part-time. this nursery in huddersfield might - part-time. this nursery in huddersfield might now. part-time. this nursery in . huddersfield might now need part-time. this nursery in -

huddersfield might now need to put up huddersfield might now need to put up the fees, bad news for this working man because of the decision to keep tax thresholds frozen, she increased her hours, she would pay a higher rate of tax. tiara increased her hours, she would pay a higher rate of tax.— higher rate of tax. two young children. _ higher rate of tax. two young children. by _ higher rate of tax. two young children, by the _ higher rate of tax. two young children, by the nursery, - higher rate of tax. two young children, by the nursery, i. higher rate of tax. two young | children, by the nursery, i am higher rate of tax. two young - children, by the nursery, i am only working part time, but the child care bill is more than our mortgage every month. care bill is more than our mortgage every month-— every month. businesses are strapping _ every month. businesses are strapping in _ every month. businesses are strapping in for _ every month. businesses are strapping in for more - every month. businesses are - strapping in for more challenging times, the chancellor knows they will be key to driving the economy forward and will hope she has done enough to keep them on track. mark ashton, bbc news. farmers have raised concerns about what the budget will mean for agriculture. many will be impacted by new inheritance tax rules 7 something which affects farmers who want to keep their business in the family for future generations. before now, tax relief has allowed farms to be passed down without cost, no matter what the value. but from april 2026, farmers will have to pay inheritance tax on farms worth more than £1 million. for any amount over that, they'll get 50% tax relief.

this is what the chancellor rachel reeves had to say about it earlier. 73% would not be affected at all. smaller farmers will not be affected by this. but we needed to raise money in the budget yesterday and we know there are a lot of landowners who are very wealthy, some who buy land to avoid paying inheritance tax because previously there was no inheritance tax at because previously there was no inherita