theo leggett, thank i for _ the short run. theo leggett, thank - for taking - the short run.fternoon, into the teens. some spots around east anglia, cambridge area, could hit 16 or 17 degrees. of these weather fronts, which are already bringing maybe a little bit more around some western coasts and hills. you can check the wind gusts where you are hour by hour this afternoon, brightening up across many western areas after a wet morning although it does remain pretty wet bursts of rain. a band of cloud and rain pushes its way into eastern scotland, north—east england, yorkshire, down towards the south and channel islands, but with sunshine continuing in east anglia and the south—east. 15 also along the moray coast. the daylight hours dry, east anglia and the south—east has rain arriving and could last all night for many. of scotland and a fresher start to saturday compared we should still be frost—free. still some outbreaks of rain lingering, it will take a while before the cloud clears. will be dry with some sunny spells, best still above where we would normally expect. after

there's usually a big surprlus; and it joining me now is our international business correspondent, theo leggettsurplus injanuary is pretty normal, what analysts had been a surplus injanuary is pretty normal, v any analysts had been a surplus injanuary is pretty normal, v any ofalysts had been a surplus injanuary is pretty normal, v any of this s had been a surplus injanuary is pretty normal, v any of this forad been aaeastiaa aha; af thiafar responsibility had been was a surface of more m the ”w: 77 than —— a surplus... the financial year up until end financial year up until the end of government afjanaary. government ~ was at hundred and bfifinc as at “moraésvé . , ~ ~ billion, that bssna as at handsasjasé . , ~ ~ billion, that is ahead of £18 billion, that is ahead of forecast. what this means is that as we go the that as we go forward, the chancellor is trying to keep within certain w a." w' w sighs; ' " zshehastiscal constraints. she has fiscal rules which she says are rulaa whitish??? saga are. day—to—day non—negotiable. day—to—day spending should be financed by 77 and not borrowing: tax rec

our business correspondent theo leggett explains what the numbers really tell us. it is. are effectively £5 billion worse off than expected. the tax year to date, which began in april, that's £118 billion. that's about £13 billion more borrowing than was expected back in october. day—to—day spending should be met entirely by tax income and that national debt as a share of national income should be falling by the end of the parliament. and she had about £10 billion worth of room for manoeuvre in october. or reducing public spending. or rec lines public spending. or rec lines on alic spending. or rec lines on the spending. or rec lines on the situation in the middle east. seme lines en. thesitdatienin the: are seeing seme lines en. the'eite'etierrin the are seeing that middle east. we are seeing that benjamin netanyahu has to benjam'i n'netanya'ha' has'been'to'dte . camp dergfarn�*i n'netanya'ha' has'been'to'dte . camp in benjam'i n'netanya'ha' has'been'to'dte . camp in the northern of refugee camp in the northern part of occupied west bank, ordering the to i to inte

theo leggett, gave us his analysis.d on steel. the sector in the past. that kind of thing. and later with the european union and the uk. market and also mexico. what we have seen from beijing, the tit—for—tat your thoughts on that and the growing escalation of what looks like potentially a pretty significant trade war? we are on the verge of a trade war now. tariffs on about $14 billion worth of imports. china imports about $165 billion worth of products a signal that we are willing retaliating in a big wayjust yet for fear of escalation. without making the situation worse. is potentially that aspect to it as well. you threaten and then you wind down what you are asking for. two news agencies both reporting the thing, both reporting the same thing, both quoting hamas armed wing said quotinghamas anned wing said the last few minutes they in the last few minutes they will delay the hostage releases planned �* saturday until planned for saturday until further notice. so to crucial of that line, they are to j to delay furth

our business correspondent theo leggett reports. at harry king & sons near ipswich, they've been building and repairing small boats for 170 years. it's a highly skilled job, and all the work is done by hand by a small team of craftspeople. but for owner sarah curtis, running the business is becoming increasingly difficult. wages, obviously, is the biggest cost. electricity, which has doubled — notjust the unit price, but the standing price has doubled. hear we th; udl."£";1;””w'” ' we the level the 7,t:’ glifiér gear. ever will f; , at , c ' at? if’ of iurther of furl not i year. 7 7 cysezarjlf tyzeza'rjif it thujyesr lf’it went t; 33; gr | the dramatically but in the last of . will 7— cut the of sstirats suit. frsfifi. tbs bsfifi'sfi in sstirats sat. frshi. tbs 5315.55 in we pm mm h of z’e’ij is s z. aeeping iisf’j: s ..f. . ., lreeping up fiia:.,:i 5, .—.,. is .; épeeping up a stop some have heme aw; man we of g. is?“- able �*ygorkers. will demteetnfiaten the " to demtgetnfiaten the " to make denjgetnfiateh the " to make people it fe-ei

our business correspondent theo leggett reports.t harry king & sons near ipswich, they've been building and repairing small boats for 170 years. it's a highly skilled job, and all the work is done by hand by a small team of craftspeople. but for owner sarah curtis, running the business is becoming increasingly difficult. wages, obviously, is the biggest cost. electricity, which has doubled — notjust the unit price, but the standing price has doubled. that will have a significant impact on our business, because we can't pass that on. material costs have gone up — anything between 5% and 25%. again, we can pass some of that on, but not all of it. so all of those things will impact our profit and our ability to grow as a business. means it's increasingly difficult to make ends meet. food shopping — that's almost doubled in price. energy, gas and electricity. especially in wintertime. it's definitely vulnerable people — myself included — where we have to have the heating on, can't cope with the cold — i wouldn't be able to we want it on

however, it was still much smaller than expected, our business correspondent theo leggett can explainasing ream " manoeuvre if reeves is increasingly lasing rcxcrm' " manoeuvre if she wants to stay fer manoeuvre if she wants'tcr stay her own fer maneeuvre if she wants'te' stay her own self—imposed rules on within her own self—imposed rules on tax and spending. so the government generally does run a surplus in january because a lot �*taxing january because a lot of taxing income comes in. £151; billion sent leigh sounds a lot of and in leigh sounds a lot of money and in a is back in october after the after is back. in qeteber after the after budget, js back. in qeteber after the after budget, the office for budget t reported t t 7 reportedthe t t 7 reported thejantjary responsibility reported the january would actually be £20.5 figure'weuld actually be £20.5 so already you can see that billion. so already you can see that the government's finances are £5 billion worse off effectively £5 billion worse off than expected and if you thah espeeteei and then ifyeel lee'e government borrowing

theo leggett, bbc news. let's dive into the detail now.is chief economist at peel hunt. thanks for being with us. inflation at 3% injanuary, what has been pushing it so high? what has been pushing it so hiuh? ~ what has been pushing it so hih? ~ , ., what has been pushing it so high? well, we should keep in mind that _ high? well, we should keep in mind that hasn't _ high? well, we should keep in mind that hasn't actually - high? well, we should keep in mind that hasn't actually been i mind that hasn't actually been an increase in prices between last december and this january. overall prices actually declined over that period by about 0.1%. what you have is this baseless effect, just the comparison, this january versus last january. comparison, this january versus lastjanuary. when comparison, this january versus last january. when you comparison, this january versus lastjanuary. when you look across the basket, actually very little has happened. it doesn't change the fact that inflation is about to pick up, but at least these january numb