that being said, what kwasi kwarteng did. that being said. it _ what kwasi kwarteng did.what kwasi kwarteng did. that being said, it is a negative front page and there — said, it is a negative front page and there is no positives to take from _ and there is no positives to take from it— and there is no positives to take from it all— and there is no positives to take from it all and understanding from the daily— from it all and understanding from the daily mail, that is middle britain, — the daily mail, that is middle britain, middle england describe the mass, _ britain, middle england describe the mass, strivers and there is no doubt that the _ mass, strivers and there is no doubt that the middle classes in the upper middle _ that the middle classes in the upper middle classes are going to be paying — middle classes are going to be paying more tax and i personally think— paying more tax and i personally think that — paying more tax and i personally think that is quite fair, if you can afford to— think that is quite fair, if you can afford to pay a bit more in these diffic

kwasi kwarteng. the _ jobs all around the country.your response to that. its really disgraceful _ your response to that. its really disgraceful that _ your response to that. its really disgraceful that kwasi _ your response to that. its really disgraceful that kwasi kwarteng your response to that. its really - disgraceful that kwasi kwarteng has the cheek to do this interview. he crashed the economy with his mini budgetjust crashed the economy with his mini budget just a crashed the economy with his mini budgetjust a few crashed the economy with his mini budget just a few weeks crashed the economy with his mini budgetjust a few weeks ago and caused untold damage to people, anyone coming off a mortgage deal will be blaming the conservatives, including kwasi kwarteng, for those huge increases, up to £500 a month more in interest payments, because of the decisions by conservative chancellors over the last few months, including kwasi kwarteng. the cop27 climate summit is continuing in egypt, with us presidentjoe biden set to speak at the

is the _ to that was put in by kwasi kwarteng is the l~25% — to that was put in by kwasi kwarteng is was designed _ in social care levy. that was designed by borisjohnson in social care levy. that was designed by boris johnson and in social care levy. that was designed by borisjohnson and rishi sunak— designed by borisjohnson and rishi sunak to _ designed by borisjohnson and rishi sunak to actually help with social care spending, something like that tax cut— care spending, something like that tax cut is— care spending, something like that tax cut is gone. there does not seem to be _ tax cut is gone. there does not seem to be any— tax cut is gone. there does not seem to be any money down the back of the self to _ to be any money down the back of the self to help— to be any money down the back of the self to help people, and meanwhile social— self to help people, and meanwhile social care — self to help people, and meanwhile social care remains in a morass. john— social care remains in a morass. john stapleton, it is very difficult to find a positive on this story, isn't it? as a point

good to talk to, thank you. | the former chancellor, kwasi kwarteng, said he warned liz truss to "slowime minister. mr kwarteng made the comments in an interview with talk tv, the first time he has spoken since he was forced to step down last month. i bear some responsibility for it. i think it was a good idea to try and set our parameters quickly. and i think the prime minister was very much of the view that we needed to move things fast. but i think it was too quick. so you made the argument that the prime minister go slow at the time? well, i said actually after the budget, because we were going very fast, even after the mini budget we were going at breakneck speed. i said, "we should slow down, slow down." what did she say? she said well, "i've only got two years." and i said, "you'll have two months if you carry on like this." and that's, i'm afraid, what happened. let's talk to our political correspondent iain watson. good morning to you, i wonder what you make of kwasi kwarteng's version of events? ,:, :, :, :, , of events? good morning. it was the late us president _ of events?

here, the former chancellor kwasi kwarteng said he warned liz truss to "slow down" from what he calledwas a good idea to try and set our parameters quickly. and i think the prime minister was very much of the view that we needed to move things fast. but i think it was too quick. so you made the argument that the prime minister go slow at the time? well, i said actually after the budget, because we were going very fast, even after the mini budget we were going at breakneck speed. i said, "we should slow down, slow down." what did she say? she said well, "i've only got two years." and i said, "you'll have two months if you carry on like this." and that's, i'm afraid, what happened. our political correspondent iain watson told me what he makes of kwasi kwarteng's comments. it was, of course, the late us presidentjohn f kennedy that said that success has 100 fathers and failure is an orphan. and i think so it proves with the mini budget, because in his comments kwasi kwarteng very clearly puts the blame, if you like, on liz truss rather than himself when he says that she was very dynamic,

liz truss and mr kwasi kwarteng — tax cuts. liz truss and mr kwasi kwarteng and a house.a house. and now were having to _ kwarteng and a house. and now were having to make good of all that, good _ having to make good of all that, good cost — having to make good of all that, good cost is £30 billion according to the _ good cost is £30 billion according to the metro this mornings paper. £30 billion at in addition to all the debt, _ £30 billion at in addition to all the debt, service and cost thatjohn has the debt, service and cost thatjohn hasjust_ the debt, service and cost thatjohn hasjust outlined. it's the debt, service and cost thatjohn has just outlined. it's a the debt, service and cost thatjohn hasjust outlined. it's a gloomy prospect— hasjust outlined. it's a gloomy prospect to put it mildly. who knows where _ prospect to put it mildly. who knows where we _ prospect to put it mildly. who knows where we go from here? where the cuts going — where we go from here? where the cuts going to come from, 35,000, don't _ cuts going to come from, 35,000, don't know — cuts goi

but nonetheless, what liz truss decided to do, along with her then chancellor, kwasi kwarteng, was golashing taxes, all sorts of different taxes, at a time when, as i say, the national debt was rising and the deficit was also rising. now, most economists, if that had come from a labour government or a labour party, would have said that is the most irresponsible sort of economic policymaking! but it seems you and a bunch of other — i'm saying small—c conservative economists — appeared to think that was the right thing to do. 0k. there's a whole host of issues there. let's take the actual debt figures. but then the advice after. in terms of the debt figures, uk debt to gdp is very high. it's just below 100%. it's the second lowest... it's going over 100%. yeah, it's second—lowest in the g7. so the point is that it's not a unique problem for the uk, but the high level of debt means that it makes the debt picture very sensitive to the relation between economic growth and interest rates. so, if interest rates go up, it makes the debt picture worse. if the growth picture is disappointed, it

that was the idea that the markets looked at liz truss and kwasi kwarteng and thought these people doave a clue what they're doing, we're going to charge them more to lend them money. which at one point, was £20 billion a year, so not nothing. that has gone away, but i think there is a really important cost that you can absolutely pin on that period. if you're rishi sunak and you're looking at a really uncertain situation and you know that you have got a bit of a hole, but you don't know how bad the economy's going to be and you don't know what the world's going to look like in a year's time, far better to delay some of the pain, to use your credibility to delay some of the pain or to do slightly less than you need to do in the end. he has much less room to do that now because the one thing that can happen is, he can't sit down and have investors start questioning, have the same kind of reaction or even half of the reaction they had to kwasi kwarteng's budget. so, that has been the real cost, that he does not have the same room for manoeuvre, and i'm afraid that means, if anything, he

interesting that kwasi kwarteng was talking about slowing the pace after the mini budget.at essentially there were more tax cuts to come, presumably unfunded tax cuts at that. he also mentioned it was a mad of liz truss to sack him as chancellor. i'm not sure the current chancellorjeremy hunt would agree. when he was told about kwasi kwarteng's remarks, he said unless people had a plan to bring debt down, the markets would react badly and the country had to show it could pay its way. he brings forward his own plans on november the 17th. they will be nothing like the mini budget, but that doesn't mean to say they will be popular. he said today, he will have to make eye watering the difficult decisions on tax and spending. the difficult decisions on tax and sendina. . ~ the difficult decisions on tax and sendina. ., ~ i. the difficult decisions on tax and sendina. ., ~ , the difficult decisions on tax and sendina. ., ~' , . the difficult decisions on tax and sendina. ., ~ , . ., spending. thank you very much, ian watson in westminster. _ the nhs is spending billions of pound

help me out, obviously kwasi kwarteng and i out, obviously kwasi kwarteng and liz truss were seen asnot? there is an important distinction _ sunak and others were not? there is an important distinction here, - an important distinction here, during rishi sunak�*s timei think there were around 20 fiscal events when he was chancellor and only half a dozen of those at most had an accompanying obr publication associated with them. but the key is that all of the decisions he was taking basically to deal with the pandemic, things like the introducing of the furlough scheme, they were temporary interventions obviously to deal with an immediate emergency. in fact, it would be crazy to hold up those sanctions simply to give the obr several weeks to produce an accompanying forecast. and then what happens is the decisions get reviewed after the event, next time the obr produces a forecast. they key thing is those interventions are largely temporary. the mistakes that truss and cortege made with the mini budget were, i think, several —— the mistakes that truss one kwarteng made. a key thing was t

it's a marked contrast between liz truss and kwasi kwarteng.ss. never to the bank of england never mind the cabinet to what they were doing for the up there trying to prepare the markets in the public and everyone else fought the tax rises and cuts that are coming down the track in less than two weeks. the press plays a role in this in the sense that some of this will be stuff they are trying to run up the flagpole and see the reaction that peoples had to the suggestions. what is clear is that are going to be significant cut to the public services. the question is where you cut public services? a lot of public services are already quite frankly in crisis. the other issue is, are you can raise taxes? one think the rishi sunakjeremy hunt approach to this that is very different from liz truss and kwasi kwarteng is that they are saying it will be the richest that will show the two shoulder the heaviest burden. that's a direct contrast to the quite frankly catastrophic many budget we had what seems like a few years ago. just days in the scale of thi

more legitimately at this— and kwasi kwarteng more legitimately at this stage. and kwasi kwarteng more this stage. brexit trade blow i over tory ties to bolsonaro, this is on the front page of the independent. this refers to bolsonaro who has just lost an election to lula in brazil and this potentially means, there is little prospect of a post—brexit trade deal with brazil because of strained relations between the uk government and the administration of lula. yasmin, do you think the change in government is going to have that kind of impact on the trade deal with brazil?— with brazil? yes, i do. this is a hue with brazil? yes, i do. this is a huge change. _ with brazil? yes, i do. this is a huge change, not _ with brazil? yes, i do. this is a huge change, notjust - with brazil? yes, i do. this is a huge change, notjust a - with brazil? yes, i do. this is aj huge change, notjust a normal election with one party winning, one party slightly to the left and one slightly to the right, bolsonaro was the donald trump of brazil, and the trade deals, i don't know the details, but lula is a soci

in terms of market reaction to all this, of course the last mini budget, delivered by kwasi kwarteng,kets have settled a lot since then, which has meant borrowing costs have come down as well, and that's a big factor in this going forward. when it comes to projections about how big the black hole is for the government, it could actually be a lot smaller depending on the projections you go with. depending on the pro'ections you go mutt depending on the pro'ections you go with. absolutely, let's remember — you go with. absolutely, let's remember that _ you go with. absolutely, let's remember that this _ you go with. absolutely, let's remember that this black - you go with. absolutely, let's| remember that this black hole is actually a black hole the government has set itself, it is committed for the debt to fall as a proportion of gdp overfive years. so fall as a proportion of gdp over five years. so that is why it is scrambling around to try and find this money. as you say, the markets have been calmed with the measures already announced. after this i think what will switch is a focus

: , , ., truss and kwasi kwarteng dead before? : , y., before? put in place a plan, the sooner we can give people confidence and hope for the future that we will get to the other side. you and hope for the future that we will get to the other side.— get to the other side. you say very little, get to the other side. you say very little. how — get to the other side. you say very little, how much? _ get to the other side. you say very little, how much? in _ get to the other side. you say very little, how much? in terms - get to the other side. you say very little, how much? in terms of - get to the other side. you say very little, how much? in terms of the l little, how much? in terms of the long-term _ little, how much? in terms of the long-term borrowing _ little, how much? in terms of the long-term borrowing costs, - little, how much? in terms of the long-term borrowing costs, i- little, how much? in terms of the l long-term borrowing costs, i don't long—term borrowing costs, i don't think they are any higher, what i think they are any higher, wh

picture is we are less than eight weeks on from that mini budget that brought down liz truss and kwasi kwartengthe then chancellor. and we've had this colossal about—turn that would be a colossal about—turn if you'd had a general election in between and the party of government had changed. and yet it's one conservative chancellor followed by another. and then the other striking thing is that we associate these moments, don't we, with at least in part kind of triumphalism on behalf of the person stood at the despatch box doing the thing. some rabbit comes out of the hat, something that gets all of their side cheering and the other side thinking, blimey, what do we do in response to that? there was kind of none of that today. it was somber, it was sober. even the response from the opposition benches was pretty muted, really, because they know things are really grim for so many people and any outcome at the next general election will confront the next government, whatever complexion it has, with really difficult decisions and an inheritance of really tough times. and then you went and had a chat w

then liz truss and kwasi kwarteng brought _ then liz truss and kwasi kwarteng brought this massive energyto _ byjeremy hunt, that's been scaled back to april on a universal scale. there's— back to april on a universal scale. there's been this massive support that's— there's been this massive support that's never been scaled back, and it's a _ that's never been scaled back, and it's a very— that's never been scaled back, and it's a very difficult decision to be made _ it's a very difficult decision to be made the — it's a very difficult decision to be made. the politics of this is very different— made. the politics of this is very different and they help the people have been accustomed to expecting from the _ have been accustomed to expecting from the government is no longer going _ from the government is no longer going to _ from the government is no longer going to be there.— from the government is no longer going to be there. picking up on one oint, ou going to be there. picking up on one point, you mentioned _ going to be there. picking up on one point, you mentioned the _ point, you m

the kwasi kwarteng liz truss budget was about trying to generate growth. where does growth fit in the hierarchy of needs for this government? how important is it? is there anything you think drives growth within this? simon: the retention of r&d a spending by government which had been widely in -- in terms of being caught, that didn't happen. the re-profiling away from the free ports, investment zones towards university towns, it was the way the u.k. does have genuine global leading ip actually focusing it around those centers of excellence and scaling and commercializing is a good move. this was a little bit of a plug to the brexit years and the brexit dividend. the ability to decouple being outside the european union allowing an insurance company to invest in different assets. guy: the eu is doing it as well. >> absolutely. you're asking what marginal effects of today's announcements could boost investment. there weren't many. guy: simon, thank you very much indeed. simon joining us, the chief economist bird we will get more reaction to jeremy hunt's pla

kwasi kwarteng - chancellor. yes, charlie, good. morning. kwasi kwarteng broke chancellor.teng broke his silence after his 38 day stint as chancellor of the exchequer in his talk tv interview. effectively his message was that the mini budget that he presided over that the measures of —— that the measures in it had gone far too quickly and fast, and although he said that he bought some response ready for it, he tended to shift the blame as far as possible onto liz truss. pointing out she was very dynamic, very forceful, in a hurry. and he said that he had warned her that if he was sacked, this is how things would turn out. i was sacked, this is how things would turn out. ~ ., , ., ., was sacked, this is how things would turn out. ~ .,, ., ., a turn out. i think it was too quick. he made the _ turn out. i think it was too quick. he made the argument - turn out. i think it was too quick. he made the argument to - turn out. i think it was too quick. he made the argument to the i turn out. i think it was too quick. . he made the argument to the prime minister, go slow at the tim

after liz truss and kwasi kwarteng's mini—budget, and the turmoil seen in the markets, the treasury feelsthat it can win credibility back, while trying to reassure the country as the economy struggles. caroline davies, bbc news. the chancellor said he will lean into the political storm, command here today it is quite stormy weather. it is going to be a defining moment for the chancellor and for the prime minister as they set out their vision for the economic immediate term and also the slightly longer term, and obviously it is about how the markets respond and it is most importantly going to be about the impact on people in their pockets at this time of high inflation, ii.i% their pockets at this time of high inflation, 11.1% is the latest inflation, 11.1% is the latest inflation figures revealed yesterday, and there is negative growth and the prospect of being in recession by the end of the year. our chief political correspondent 0ur chief political correspondent nick eardley is at downing street. i mention how much of a defining moment this is for the prime minister and the chancellor.

liz truss and kwasi kwarteng unleash the economic plan.w—dropping and caused economic turmoil. nowjeremy hunt is the man who has to restore economic stability and the reputation of the country. something the conservatives do prize, he has to keep markets and voters happy and the back benches as well. we voters happy and the back benches as well. ~ , ., ., well. we were sitting here not that lona aao, well. we were sitting here not that long ago. on _ well. we were sitting here not that long ago. on the — well. we were sitting here not that long ago, on the 23rd _ well. we were sitting here not that long ago, on the 23rd of _ well. we were sitting here not that i long ago, on the 23rd of september. the market turmoil, you were monitoring as it was happening pretty shortly after kwasi kwarteng had stood there and delivered the plan for growth. what is driving the decisions thatjeremy hunt with rishi sunak had already decided to do and they will unveil today? how much is about the event we uncovered and how much of it would we have had to hav

very different from when we stood here waiting for kwasi kwarteng's so—called mini budget which have on the uk's finances, in part because the markets were not expecting all of it. today the chancellor has tried to tell us everything that's coming to tell us everything that's coming to try and prepare the markets because i think that's his number one audience today, he is trying to persuade financial markets and all of us that there is a plan for stability and economic credibility. he is going to say that today, that there is an economic storm but the uk needs to face it. however, i don't think that's going to be without controversy. i think by the end of the day we are going to be talking about some key squeezes on household incomes are they are going to mean for millions of people across the country more tax because the tax threshold, the point at which we start paying tax rates will be frozen. doesn't sound like a big deal but because everybody�*s pay is going up, because of inflation it means most everybody is going to pay more tax. then there is energy bills. there are going to

liz truss— disaster of the kwasi kwarteng liz truss short lived administration.was a toxic clash — the junior doctors and that was a toxic clash so i don't think the health — toxic clash so i don't think the health secretary is going to relish taking _ health secretary is going to relish taking on— health secretary is going to relish taking on the nurses because a lot of people — taking on the nurses because a lot of people have an in—built affinity and sympathy for nurses. i think it is really— and sympathy for nurses. i think it is really important as welljust to realise _ is really important as welljust to realise that if you become a nurse, and it— realise that if you become a nurse, and it is— realise that if you become a nurse, and it is not— realise that if you become a nurse, and it is not great pay to start with. — and it is not great pay to start with. to — and it is not great pay to start with, to say the least, you are doing — with, to say the least, you are doing that _ with, to say the least, you are doing that because you want to help people. _ doi

had come _ liz truss and kwasi kwarteng had come which is all about cutting taxes — come which is allome which is all about cutting taxes but the city and the world economy— taxes but the city and the world economy in general were not wearing it. economy in general were not wearing it and _ economy in general were not wearing it and that _ economy in general were not wearing it. and that is why things were so catastrophic and the tax cuts were there. _ catastrophic and the tax cuts were there. the — catastrophic and the tax cuts were there, the books are not being balanced — there, the books are not being balanced and of course, but we are faced _ balanced and of course, but we are faced with — balanced and of course, but we are faced with now is not going be pleasant — faced with now is not going be pleasant for anybody, really in the not to _ pleasant for anybody, really in the not to pay— pleasant for anybody, really in the not to pay more taxes and some will have to _ not to pay more taxes and some will have to pay — not to pay more taxes and some will have to pay more than others

the real downgrade under kwasi kwarteng.cellor over a corporation tax of 25% and some big windfall taxes on north sea oil and gas and the energy generators. it's very difficult to ascertain what he thinks and, indeed, how that will frame his economic decisions over the next couple of years. economic decisions over the next copple of years— economic decisions over the next couple of years. interesting, simon french, couple of years. interesting, simon french. chief— couple of years. interesting, simon french, chief economist. _ couple of years. interesting, simon french, chief economist. thank i couple of years. interesting, simonl french, chief economist. thank you. the headlines on bbc news. jeremy hunt defends his autumn statement, denying claims a £25 billion of tax rises are a raid on working people. labour sasteremy hunt has picked the nation's pockets with "stealth taxes". analysis suggests that the freezing of income tax thresholds for six years will hit middle earners particularly hard. a "game—changing" drug which d

gave his mini budgetjust a matter of when kwasi kwarteng gave his mini budget just a matter of weeksminister, liz truss, that caused so much concern on the markets because their statement wasn't underpinned by the forecast of the government's official forecaster, by the forecast of the government's officialforecaster, which is the office for budget responsibility. we were hearing the uk is now facing its biggest drop in living standards on record as the cost of living crisis eats into people's wages and inflation is 11%. there forecast is that household incomes when adjusted for rising prices will drop by 7% in the next few years and living standards will not recover to the levels that they were last year until 2027, 28. the uk is already in recession and it is set to shrink further next year. let's get a round—up from damian grammaticas of what the chancellor said earlier. after the last tory budget brooke ayers, what is in that little blue book is meant to stabilise things. the team photograph is meant to be reassuring. this is a chancellor who needs to win back trust in the and ow

liz truss and kwasi kwarteng were rightly kicked out of downing street for their disastrous policies,ould lose their homes because of them. so today, i am should lose their homes because of them. so today, iam proposing should lose their homes because of them. so today, i am proposing a new mortgage protection fund to cover the extra costs for those families are seeing their payments rise most sharply, to protect them from falling into serious arrears or even facing repossession, and it is not just homeowners who need help. the conservative property penalty is making it even harderfor young families and people to get a mortgage in the first place. so we will keep campaigning for stronger rights for renters, to give them security in their homes and protection from unfair rent hikes. people and businesses need help now. just to survive inflation this winter. but they will also need a plan to end the recession, to end the chaos of the pain. a plan to get our economy growing again, to create opportunity and prosperity for all, and that plan cannot be the cut to the bone race to the bottom

saying mortgage providers have baked in, because of the chaos that came after liz tru55 and kwasi kwarteng'sere any cause _ expected. briefly, optimism, is there any cause for _ expected. briefly, optimism, is there any cause for optimism? | expected. briefly, optimism, is - there any cause for optimism? when we look at a potential two year recession and people struggling with their bills? trio. recession and people struggling with their bills? ., , ~ , , their bills? no, but i think this is about audiences. _ their bills? no, but i think this is about audiences. the _ their bills? no, but i think this is about audiences. the message l their bills? no, but i think this is l about audiences. the message the markets _ about audiences. the message the markets are trying to get is that things— markets are trying to get is that things will be calmer for you because _ things will be calmer for you because we have some more sensible beobie _ because we have some more sensible people how— because we have some more sensible people now running the show. but this is— people now running the show. but th

make.— because of mistakes that kwasi kwartent make. , ., , kwarteng make.ou tried to address this, - point is you tried to address this, is brexit. there is brexit is the elephant in the room. there is no debate today about the cost of brexit. yes, there are opportunities in brexit, we haven't seen them yet, but by focusing only on there are opportunities in the future and not discussing the cost of brexit, i think that there is more room for transparency, that's what i'm trying to say. transparency, that's what i'm trying to sa . ,, ., transparency, that's what i'm trying to sa _ ,, ., ., transparency, that's what i'm trying to sa . ,, ., ., .,~ ., to say. simon, what did you make of heafint to say. simon, what did you make of hearint a to say. simon, what did you make of hearing a politician _ to say. simon, what did you make of hearing a politician speak _ to say. simon, what did you make of hearing a politician speak like - hearing a politician speak like that, i'm going to be honest and tough but i'll tell you the truth, what did you think? it’s tough b

the uk economy and public finances after the fallout from the mini budget under liz truss and kwasi kwartengich is devastated aim over the next couple of years. they are proposing tax cuts and tax rises, sorry tax rises and spending cuts. jeremy hunt did not say exactly what he was going to do, and you wouldn't expect him to this far out from that statement, but he did have one very broad message about the fact that everyone is going to have to bear some of the burden. we are going to see everyone paying more tax, we're going to see spending cuts, but i think it's very important to say that we are a resilient country, i think that, as simon sharma would say, we've faced bigger challenges in our history in the past, and we are also a compassionate country. we will introduce a plan that will see us through the very choppy waters that we're are in economically, but we'll make sure that we protect the most vulnerable and, in particular, deal with the single biggest worry for people on low incomes, which is the rising cost of their weekly shop and rising energy prices. economically, that make sen

after liz truss and kwasi kwarteng's mini budget and the turmoil in the markets, the treasury feels underwin credibility back, while trying to reassure the country as the economy struggles. caroline davies, bbc news. there is a lot of nerves about this autumn statement and what it means for homes and businesses. i will be talking to a market analyst and the institute of directors about what they want from this autumn statement. all of that to come later in the programme. now to the us... after a week of ballot—counting in the us midterm elections, president biden has congratulated the man likely to be named the new speaker of the house of representatives — kevin mccarthy. it comes after republicans secured a slim majority in the house, while democrats held the senate. the return to divided us politics came just moments after 12 republicans sided with the democrats on a bill that would ensure country—wide recognition of same sex marriage. here's our north america correspondent, peter bowes. scenes ofjubilation outside the us supreme court seven years ago when same sex marriage rights were

we have not turned up today to do what liz truss and kwasi kwarteng did and ignore 0br. rs, nurses and give them an inflation pay rise because _ and give them an inflation pay rise because you have the same fiscal constraints? my because you have the same fiscal constraints?— because you have the same fiscal constraints? g , ., , , constraints? my message to everybody is we will put — constraints? my message to everybody is we will put financial _ constraints? my message to everybody is we will put financial stability - is we will put financial stability first. but let's see what happens in the next couple of years. this is not the final 0br report, there are two a year. as you know, often the forecasts they make can change quite a lot over six months. let us see what happens. we accept the 0br and think it is an important part. are the labour— think it is an important part. are the labour left _ think it is an important part. are the labour left signed up to that? think it is an important part. are i the labour left signed up to that? i am the labour left signed up to th

the mini budget you - talked about earlier from liz truss and kwasi kwarteng, the increased amount iny it was the energy intervention, the energy price guarantee. rishi sunak said plans to increase borrowing were risky and even immoral. the snp, you can on the other hand, said liz truss was not borrowing enough. liz truss's plan to cap energy bills fell far short of the help we need to play even though it was probably one of the most expensive policies in modern political history. that need not necessarily _ modern political history. that need not necessarily have _ modern political history. that need not necessarily have been - modern political history. that need not necessarily have been a - modern political history. that need i not necessarily have been a problem. there was no clear plan for how that would be consolidated through the tax base. that is what gave fright markets and that is the price we are still paying through interest rates that are higher than otherwise there would be. spending increases in cash terms rather than real terms announced by the chancellor simply are no

is that the cuts in stamp duty that were announced by lizz truss and kwasi kwarteng, which have alreadybe reversed in march 2025, says jeremy hunt and that includes i think i haven't got clarification on this , but i think that includes this, but i think that includes not just the doubling of the stamp duty begins from 125 grants to 250 grand. so at the moment you can buy a house for up to £250,000 and not pay any stamp duty. i think that may go back. that was the logic of what the chancellor was saying yesterday , £125,000, but also yesterday, £125,000, but also trusts and kwarteng introduced . trusts and kwarteng introduced. a note a no duty stamp duty for first time buyers of £450. i mean my , information is that mean my, information is that it's going to be scrapped in march 2025 as well. so a lot of young people, you know, kids here, the gb news. yeah who have generally, you know, obviously got a great job in the media. they're not from privileged backgrounds whatsoever, unlike a lot of television stations, if we're a lot of them are we're honest a lot of them are complaining there

concerns about high levels of borrowing that kwasi kwarteng's plan depended on sent mortgage rate soaringll the way to above 6%. that is a huge increase, particularly if you are on an interest only loan. we have seen the mortgage market calming down and that government borrowing market has settled a bit. pressures on the bank of england remain and it looks as though interest rates will continue to go up. time into next year until inflation really gets under control. what are the financial markets going ahead of this decision? we what are the financial markets going ahead of this decision?— ahead of this decision? we are seeinu ahead of this decision? we are seeing markets _ ahead of this decision? we are seeing markets really - ahead of this decision? we are seeing markets really sell - ahead of this decision? we are seeing markets really sell off. seeing markets really sell off around the world overnight and this morning after the us central bank of the federal reserve signalled it is expecting to raise interest rates for longer. it has lifted the us dollar but is putting pressure on the

raise rates to a peak of more than 6% next summer, but since the resignation of liz truss and kwasi kwartenggland has raised interest rates this quickly, just as it says we are already in a recession expected to last until 202a. if on top of that the government raises taxes or cut spending too soon or too severely, ordinary families will again have to pay notjust through higher bills but higher unemployment. andy verity, bbc news. well, as we've heard, today's interest rate rise will mean significantly higher mortgage payments for millions of homeowners at a time when many people are already struggling to make ends meet with surging inflation and energy bills. 0ur correspondent navtej johal reports from derby. 0mar is a veterinary surgeon based in derby. he came to the uk four years ago and had planned to buy a home and settle here long—term. but the recent political and economic turmoilfollowing now former prime minister liz truss's mini budget has made him think twice. when i lose trust in something, it's really difficult to gain it back. um... have you lost trust in the uk? i trust my col

lots of announcements pretty much on doing all of what trusts and kwasi kwarteng did.age, although there is some doubt about what will happen after april. there is no doubt that the timing is difficult for the bank. ideally, it difficult forthe bank. ideally, it would difficult for the bank. ideally, it would like to make the decision after their fiscal plans were made clearer, but they can change course at the next meeting if they need to. you are a former head of strategy at the bank of england, do you predict that rates will come down late next year or not? it that rates will come down late next year or not?— year or not? it can be a bit of a mu~'s year or not? it can be a bit of a mug's game — year or not? it can be a bit of a mug's game forecasting, - year or not? it can be a bit of a mug's game forecasting, i - year or not? it can be a bit of a l mug's game forecasting, i doubt year or not? it can be a bit of a - mug's game forecasting, i doubt it. i think, given the way things are going, i think it may take longer for that to get inflation under control and for

as well , presume kwasi kwarteng as well, with an equal proportion of russia's invasion of, ukraine,of course, the threshold at which people pay the highest of tax. 45 pe in the pound that is has been reduced from . 150000 to been reduced from. 150000 to 125050% of you support that measure. when asked of the following would be the best to manage the british economy forward. 42% said they don't really know and it was even on rishi sunak and jeremy hunt and keir starmer and reeves. i'm delighted to be joined by matt goodwin, professor of politics , goodwin, professor of politics, international relations at the of kent . one of the most of kent. one of the most interesting bits found reading the data overnight and thinking about it this morning is who's to blame . labour, of course, say to blame. labour, of course, say it's all a result of a crisis made in downing, it's all a result of a crisis made in downing , whereas sunak made in downing, whereas sunak going can blame putin's invasion of russia and a global recession and actually take it a little bit more supported in the poll perha

the fte is also reporting that jeremy hunt is planning to keep the bankers bonus cap as kwasi kwarteng to do, but that is controversial and even more so after the prime minister rishi sunak's comments yesterday to sizing nurses for demanding a double-digit pay rise. even more controversial after this big inflation print. dani: you will be reporting on that for us, the autumn fiscal statement. think forward to that coverage. lizzy burden, thank you. coming up, we have bloomberg surveillance for you. francine: -- this is bloomberg. ♪ >> this is "bloomberg surveillance: early edition" with francine lacqua. francine: good morning and welcome to "bloomberg surveillance: early edition."

_ ago when i stood here when kwasi kwarteng was about to _ ago when i stood here when kwasi kwartengrent, to prepare us for bad news, prepare the - something different, to prepare usj for bad news, prepare the markets for bad news, prepare the markets for some _ for bad news, prepare the markets for some bad — for bad news, prepare the markets for some bad news— for bad news, prepare the markets for some bad news as _ for bad news, prepare the markets for some bad news as well. - for bad news, prepare the markets for some bad news as well. but i. for some bad news as well. but i think. _ for some bad news as well. but i think. as — for some bad news as well. but i think, as faisal— for some bad news as well. but i think, as faisal was _ for some bad news as well. but i think, as faisal wasjust- for some bad news as well. but i think, as faisal wasjust saying, i for some bad news as well. but i. think, as faisal wasjust saying, of households— think, as faisal wasjust saying, of households are _ think, as faisal wasjust saying, of households are going _ think, as faisal wasjust saying,

now, interesting though that kwasi kwarteng was talking about slowing the pace after the mini budget. essentially, there were more tax cuts to come, more unfunded tax cuts to come. he also said that it was mad of liz truss to sack him as chancellor. but i'm not sure that the current chancellor, jeremy hunt would agree because when he was told about kwasi kwarteng's remarks today, he said that unless people had a plan to bring that down than the markets would react badly, the country had to show it could pay its way. he brings forward his own plans of course on november the 17th. they will be nothing like the mini budget but that doesn't mean to say troops have now left. a member of the local ruling council said ukraine had pushed out hiding after failing to escape. russia's defence ministry said all of its troops were successfully withdrawn. video from inside kherson shows ukrainian flags being raised above government monuments and buildings. and here — locals greet soldiers and reporters as ukrainian troops moved into settlemets abandoned by the russian occupying force. russia says i

the times carries the first interview with former chancellor kwasi kwarteng, who says he warned liz trussconomic plans were going too far, too fast. the telegraph leads on a plea from the us to ukraine to �*give peace a chance�*. the financial times covers elon musk�*s decision to end remote working at twitter as he continues to push through major changes at the social media firm. and finally, the mirror leads on an exclusive about blood tests of nuclear test veterans being hidden for 70 years. those are the front pages. let us start. anand and natasha, lovely to see you both. prof, kick us off with the daily —— daily express. this see you both. prof, kick us off with the daily -- daily express.- the daily -- daily express. this is the daily -- daily express. this is the alleged _ the daily -- daily express. this is the alleged news _ the daily -- daily express. this is the alleged news that _ the daily -- daily express. this is the alleged news that the - the daily -- daily express. this is - the alleged news that the government is pushing back the introduction of the cap care. the plan

that was one of the few measures the chancellor actually kept from liz truss's and kwasi kwarteng's mini-budgetd i think that was a mistake. tom: some of the credibility that was lost after the liz truss budget has been restored at least partially with markets, a lot of those spending cuts being pushed back to the second half of their term, or potentially post the election. would you commit to those spending cuts? rachel: the way you introduce that was interesting. they have partially brought back some of their credibility, what a mess this country is in. we have had 12 weeks of conservative government, 12 weeks of utter chaos, and it is ordinary people and businesses paying the price for that volatility. that chaos we have seen in recent weeks. at the next election, people will ask themselves, are me and my family better off with conservative government? and the answer will be no. in terms of the next election, i've already set out to you, and in the response to the statement yesterday, some of the different choices labour would make, for example, on tax. in the last year, as shadow chancellor

one of the criticisms, one of the many criticisms of liz truss and kwasi kwarteng's mini budget was thatre palatable. i am not sure that is the case but it has gone down as received wisdom that you do need to have a few leaks, see how things land, there has definitely been almost a conversation in the few weeks about the triple lock. i think the message came back sadly from the papers that i wasn't palatable. so, as sonia says, it seems from the telegraph and the times who have got what feels like very strong legs from the treasury or only some guidance that rather than going for those big headline cuts, what they are going to try and do is stalk of stealth measures so things like, yes, freezing thresholds here and windfall taxes there, rather than doing something, as the front pages are still screaming today, would be very difficult going into a general election were as we know, pensioners are far more likely to vote than younger people. fine are far more likely to vote than younger people-— are far more likely to vote than ounuer --eole. ., , ., younger people. one more question each to

to repair and terms of reputation, than the gilt market and when they bounced back after the kwasi kwarteng., ., whatever it was described as at the time. . ., ., �* , time. the damage to the uk's international— time. the damage to the uk's international reputation - time. the damage to the uk's international reputation has . time. the damage to the uk's i international reputation has been highlighted again. not the first time, i think, highlighted again. not the first time, ithink, by highlighted again. not the first time, i think, by the governor of the bank of england andrew bailey. he has talked about damaged reputation which has worsened the crisis and highlighted the dramatic difference between the post—pandemic recovery in the uk, and in the united states and the eurozone, so thatis united states and the eurozone, so that is a startling condemnation of the short lived government of liz truss. , , ., , ., ., ,, the short lived government of liz truss. , ., .,~ ., the short lived government of liz truss. , ., ., truss. jenny, what you make of this? it seems truss. jenny, what you make

money because i was imposed by the financial markets which did not like what liz truss and what kwasi kwartenghe same as borrowing to give tax cuts to the riches. —— riches. borrowing. we riches. -- riches. borrowing. we think there _ riches. -- riches. borrowing. we think there is _ riches. —— riches. borrowing. - think there is sufficient scope for borrowing but that�*s on the primary way that we would change the decisions. i think the evening to fourin decisions. i think the evening to four in the spending cuts and not sufficiently taking some of the text phrases that were on the table which have avoided spending cuts to public services and the real risk there is that these cuts are going to consign us to further growth in the future and the reason why we have such high inflation in the uk and other comparable economies, the reason why the cost of living crisis is so much more severe here is because are cashing in on the failure to invest for the past 12 years and really stunning figures that we�*ve seen and in terms of peoples take—home pay or below 2008 levels of pay in real terms now and

six weeks ago, they were banging the table" cheering at liz truss and kwasi kwarteng putting the countryncellor getting this through. these are people who would normally vote against this. they might do a little bit of spending cuts, but after all of the austerity since 2010, there are no good options. a recent report pointed out if you cut staff, you worsen already dire level of public service. if you can't pay, pay has fallen well beyond the position it should have been for the last ten years. it's about 16% behind. yeah, there were no easy options at all and has to be taxed.— there were no easy options at all and has to be taxed. yes, no easy 0 tions. and has to be taxed. yes, no easy options- so. _ and has to be taxed. yes, no easy options. so, essentially, - and has to be taxed. yes, no easy options. so, essentially, come i options. so, essentially, come novemberthe options. so, essentially, come november the 17th, you would be very surprised if there weren't tax rises on everything that he reads out? yeah, i expect a tax rises to make the bulk of it. he'll probably be looking at th

so kwasi kwarteng were no go. so reform. yeah i reform uk.r how you do that because the big question is if you want a smaller state and low taxes, the question you have to ask is are you going to reform the nhs so that rich people habitually pay for or are you going for that care or are you going to you to cut welfare to are you going to cut welfare reform? uk haven't explained how they're cut taxes they're going to cut taxes without bits of the without cutting bits of the state that people like and i think that's the reason the tories unnecessary. tories probably unnecessary. you're them. yet you're too scared of them. yet if doing that, that if they start doing that, that would worthwhile would be a very worthwhile contribution to the conversation. seen conversation. but i haven't seen it from reform uk so and it from reform uk so far. and final question and we're all for balance. i know your conservative leave but conservative leave home, but i know watch the entire know you watch the entire spectrum of politics as indeed do i. did you fin

i think a failure of the liz truss and kwasi kwarteng administration, and one of the reasons for its the books. i think a problem he is going to face is we are probably going to face is we are probably going to face is we are probably going to bejust a bad other taxable limits of the economy. what do i mean by that? as you heard from iain watson on your programme a bit earlier this will be the highest tax burden since the second world war, there are thereabouts, and probably in a position where ye few try and dial up tax rates much more there is no guarantee will bring in more revenue, people will start to change their behaviour. we are probably squeezing out of the private sector about as much revenue as you can so i think he should have done more on the spending cuts side of the ledger. but absolutely right, you need to show the markets you are serious about getting public finances under control. we have been running budget deficits for over 20 years and at some point that needs to come to an end. it is more on the growth side wherejeremy hunt has been rather unimaginative. hs2 and