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tv   BBC News at One  BBC News  September 23, 2022 1:00pm-1:30pm BST

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a massive shake—up of the uk's finances — the chancellor unveils a series of tax cuts and other economic measures. changes are announced to income tax and stamp duty, and kwasi kwarteng abolishes the cap on city bonuses. we promised a new approach for a new era, we promised to release the enormous potential of this country. our growth plan has delivered all those promises and more. labour said the changes are a "comprehensive demolition" of the government's last 12 years in power. it is a budget without without figures, a menu without prices. speaker, what has the chancellor got to hide? the institute for fiscal studies says the announcements
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are the biggest tax—cutting budget in half a century. we'll find out what the changes mean for households. also this lunchtime: four russian—occupied areas of ukraine are voting on whether to become part of russia in what the west sees as a move by moscow to annex the regions. a court has been shown distressing video footage about suicide and self—harm that the schoolgirl molly russell viewed before she took her own life. and the multi—award—winning novelist dame hilary mantel, best—known for her wolf hall trilogy, has died aged 70. coming up on the bbc news channel, can england rediscover theirform again? italy awaits tonight before germany on monday, with gareth southgate hoping to avoid the disappointment of relegation in the nations league.
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good afternoon and welcome to the bbc news at one. in a massive shake—up of the uk's finances, the chancellor, kwasi kwarteng, has outlined a series of tax cuts and spending commitments that will cost £45 billion by 2027. the independent institute for fiscal studies has described the announcements as the biggest tax—cutting budget in 50 years. the government says its policies will help boost economic growth. yesterday the bank of england warned the uk may already be in recession. but critics say funding the tax cuts will lead to unsustainable borrowing. the chancellor announced changes to income tax in england, wales and northern ireland. the basic rate will be cut from 20% to i9% in april. the top rate, which is currently 45% and is paid by anyone
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earning more than £150,000 a year, is being abolished. there are immediate changes to stamp duty, paid when buying a property in england and northern ireland. the threshold is being raised, meaning no tax will be paid on the first £250,000, and that figure will be £105,000 for first—time buyers. the planned increase in corporation tax — the amount companies pay on their profits — is being scrapped, so it will remain at i9%. and the cap on bankers�* bonuses, which had limited them to twice someone�*s annual salary, is also being axed. labour says the government's plan is based on "outdated trickle—down economics". here's our political editor, chris mason. can you afford these tax cuts,
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chancellor?— can you afford these tax cuts, chancellor? . , , �* chancellor? technically, this wasn't even a budget _ chancellor? technically, this wasn't even a budget. in _ chancellor? technically, this wasn't even a budget. in reality, _ chancellor? technically, this wasn't even a budget. in reality, inside - even a budget. in reality, inside that blue booklet were the biggest tax cuts in 50 years. i that blue booklet were the biggest tax cuts in 50 years.— tax cuts in 50 years. i now call the chancellor — tax cuts in 50 years. i now call the chancellor of _ tax cuts in 50 years. i now call the chancellor of the _ tax cuts in 50 years. i now call the chancellor of the exchequer - tax cuts in 50 years. i now call the chancellor of the exchequer to - tax cuts in 50 years. i now call the i chancellor of the exchequer to make a statement, — chancellor of the exchequer to make a statement, chancellor! _ chancellor of the exchequer to make a statement, chancellor!— a statement, chancellor! kwasi kwarten: a statement, chancellor! kwasi kwarteng said _ a statement, chancellor! kwasi kwarteng said it _ a statement, chancellor! kwasi kwarteng said it was _ a statement, chancellor! kwasi kwarteng said it was all - a statement, chancellor! kwasi kwarteng said it was all about i kwarteng said it was all about firing up the economy. growth is not as hiuh as firing up the economy. growth is not as high as it — firing up the economy. growth is not as high as it should _ firing up the economy. growth is not as high as it should be. _ firing up the economy. growth is not as high as it should be. this - firing up the economy. growth is not as high as it should be. this has - as high as it should be. this has made it harder to pay for public services requiring taxes to rise, and we need a new approach for a new era. 0uraim overthe and we need a new approach for a new era. our aim over the medium term is to reach a trend rate of growth of 2:5%... to reach a trend rate of growth of 2:5%. .. �* h, to reach a trend rate of growth of 2:5%...�* , , ., ., ., 2:5%... and so rises in national insurance _ 2:5%... and so rises in national insurance and _ 2:5%... and so rises in national insurance and corporation - 2:5%... and so rises in national insurance and corporation tax l 2:5%... and so rises in national. insurance and corporation tax are being scrapped, and then the big reveal on income tax. right now, the very highest earners, those on £150,000 a year, pay 45p in tax for every £1 over that amount they earn,
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but not for much longer. they have a big tax cut coming. but but not for much longer. they have a big tax cut coming.— big tax cut coming. but i am not auoin to big tax cut coming. but i am not going to cut _ big tax cut coming. but i am not going to out the _ big tax cut coming. but i am not going to cut the additional- big tax cut coming. but i am not going to cut the additional rate | big tax cut coming. but i am not. going to cut the additional rate of tax today, mr speaker. i am going to abolish it altogether. from april the 23rd, we will have a single higher rate of income tax of a0%. this will simplify the tax system and make britain more competitive, it will reward enterprise and work, it will reward enterprise and work, it will reward enterprise and work, it will incentivise growth, it will benefit the whole economy and the whole country... bud benefit the whole economy and the whole country. . ._ benefit the whole economy and the whole country... and there was more, and income — whole country... and there was more, and income tax _ whole country... and there was more, and income tax cut _ whole country. .. and there was more, and income tax cut for— whole country... and there was more, and income tax cut for everyone. - whole country. .. and there was more, and income tax cut for everyone. i - and income tax cut for everyone. i can announce today that we will cut the basic rate of income tax to 19p in april 2020 three, one year early. that means a tax cut for 31 million people. that means a tax cut for 31 million --eole. �* ,., that means a tax cut for 31 million neale, �* ,., ., that means a tax cut for 31 million --eole. �* ., ., . people. also, an immediate cut in the property _ people. also, an immediate cut in the property buying _ people. also, an immediate cut in the property buying tax _ people. also, an immediate cut in the property buying tax stamp - people. also, an immediate cut in | the property buying tax stamp duty in england and northern ireland. but some of the measures are not popular, including removing the cap on bankers' bonuses, so why do it?
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we need global banks to create jobs here, invest here, and pay taxes here, invest here, and pay taxes here in london! in london! not in paris, not in frankfurt, and not in new york. paris, not in frankfurt, and not in new york-— new york. overall, this plan involves the _ new york. overall, this plan involves the cut _ new york. overall, this plan involves the cut borrowing i new york. overall, this plan involves the cut borrowing a| new york. overall, this plan - involves the cut borrowing a massive amount of money, a huge about turn from recent conservative instincts. rachel reeves! labour pointed out the tories — rachel reeves! labour pointed out the tories have been in government since _ the tories have been in government since 2010 — the tories have been in government since 2010. , , ., the tories have been in government since 2010-— since 2010. this statement is an admission _ since 2010. this statement is an admission of— since 2010. this statement is an admission of 12 _ since 2010. this statement is an admission of 12 years _ since 2010. this statement is an admission of 12 years of- since 2010. this statement is an l admission of 12 years of economic failure, and now here we are. admission of 12 years of economic failure, and now here we are, one last throw — failure, and now here we are, one last throw of _ failure, and now here we are, one last throw of the _ failure, and now here we are, one last throw of the dice, _ failure, and now here we are, one last throw of the dice, one - failure, and now here we are, one last throw of the dice, one last. last throw of the dice, one last claim that these ministers will be different. forall the claim that these ministers will be different. for all the chopping and changing, all the chaos and confusion, there has been one person there through out — the prime minister. b. there through out - the prime minister. �* ., , , ., minister. a new era, but they have been in government _ minister. a new era, but they have been in government for _ minister. a new era, but they have
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been in government for 12 - minister. a new era, but they have been in government for 12 years, l minister. a new era, but they have i been in government for 12 years, it stretches_ been in government for 12 years, it stretches credibility beyond breaking point, saying that tax cuts for the _ breaking point, saying that tax cuts for the richard whopping bonuses for bankers _ for the richard whopping bonuses for bankers and low corporation tax will somehow_ bankers and low corporation tax will somehow re—float, magically, britain's — somehow re—float, magically, britain's sinking economy. this budaet britain's sinking economy. this budget amounts _ britain's sinking economy. in 3 budget amounts to an environment wrecker�*s charter and is a statement of missed opportunities. a report this week shows that a major programme of ventilating homes in britain and installing heat pumps could benefit the economy by £7 billion a year, create 140,000 jobs ijy billion a year, create 140,000 jobs by 2030, jet fuel bills down and climate emissions down too. some financial statements _ climate emissions down too. some financial statements that _ climate emissions down too. some financial statements that come - climate emissions down too. some financial statements that come outj financial statements that come out of the treasury can feel inconsequential, easily forgotten. this is not one of them. this is a big move by a new chancellor and a new prime minister with not big move by a new chancellor and a new prime 1\ can ter with not big move by a new chancellor and a new prime i\ cant news, not big move by a new chancellor and a new prime i\ cant chief, not big move by a new chancellor and a
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new prime i\ cant chief, no? feel did i there nothing - did i there nothing mini i did i there nothing mini i did this, |ere nothing mini did this, this was nothing mini about this, this was nothing mini about this, this was a mega set of announcements from the chancellor this morning, many of which are a complete break with the politics the conservative party has been pursuing over the last few years in government. there are going to be big tax cuts, the biggest of them will be for the highest earners. that is going to be a lot more government borrowing, something the tories for years so it was a bad idea. the calculation the chancellor is making is this — that by allowing people to invest more money, by slashing tax and cutting regulation, the economy will grow, and thus the amount of money that the government brings in through tax will ultimately grow. but this is a gamble — ed gamble politically that the government can sell it to voters, saying yes, we are giving bankers higher bonuses, tax cuts are coming for the very richest, but it is worth it to grow the economy,
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thatis is worth it to grow the economy, that is a gamble, and economically it is a gamble as well. many economists are not certain that all that this will work in its objective of achieving long—term economic growth. so the arguments you are going to hear over the next few weeks about this plan or whether the government has got its priorities right and its policies right. 0pposition parties say no, you should raise the money in other ways and focus your interventions in different ways. the biggest question of all that the government in the country is now facing, is this going to work? . ~ country is now facing, is this going to work? w' . ~ country is now facing, is this going to work? w ., ,, i. a to work? nick, thank you. nick eardle . this all comes at a time when inflation, the rate at which prices rise, is at a 40—year high, leaving many households facing hardship. prices in august were 9.9% higher than they were 12 months ago. and yesterday the bank of england raised interest rates from 1.75% to 2.25%, the highest level for 14 years, in an attempt to cool soaring prices. the bank also warned that the uk
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may already be in a recession. since the government's announcement today, the pound has fallen nearly 2% against the us dollar, as investors digest the biggest tax—cutting budget in 50 years. 0ur economics correspondent andy verity has this analysis. if the markets believed the biggest tax cuts in 50 years were going to boost economic growth, you might expect the pound to strengthen. but foreign currency markets gave it a decidedly grumpy response. the pound, already at its lowest since 1985, dropped 2% to $1.10, which will make it even more expensive for the government to subsidise wholesale energy priced in dollars or euros. if you think about why investors are taking that, well, they don't really believe in the fiscal position of the new government. they're worried that some of these tax cuts that have been announced aren't going to be fully funded. that will result in a large amount of debt at a time when the bank of england is also
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going to be selling some of its holdings of uk government debt. here's why the city is worried. it's notjust the energy help for households at 31 billion or six months�* help for businesses costing 29 billion, the government has also cut taxes for the highest earners, corporations and individuals, costing 27 billion next year, rising to 45 billion three years from now. kwasi kwarteng's so—called mini budget has implemented maxi tax cuts, bigger than any other chancellor has done in decades. this was a huge event. it's called a mini budget, this is possibly one of the biggest i have seen in 30 years of looking at budgets, and it is certainly the biggest tax—cutting event since 1972, for exactly half a century since we saw a chancellor stand up and announce quite such big tax cuts. the last time we saw tax cuts this big, there was another energy crisis and a conservative chancellor subsidising soaring energy prices and trying to go for growth.
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but two years after anthony barber's 1972 budget, inflation got up to 24%. today, investors sold uk government bonds, demanding a sharply higher interest rate to compensate for the risks of lending to a government that is financing huge tax cuts through borrowing. economists say it is likely to boost growth, but that might not last. we think this will boost output in the economy from something where it was hovering around zero over the next year or so to something like 2% over the next year or so. what it is doing is really bringing about an artificial boom in the economy. and the bank of england is going to respond to that with higher interest rates, because it is boosting the economy over and above its capacity to supply those goods and services. so in effect it's a problem, not an answer that we have had today from the budget. with the government doing its utmost to heat up the economy, the bank of england has to do even more to cool it down and keep inflation under control.
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interest rates are now expected in the city to rise by next august to 5.5%, more than twice their current level. andy verity, bbc news. so how is today's announcement being received by people? our business correspondent marc ashdown has been speaking to people in bolton. the peleton community grosses helps hard pushed families make ends meet. people pay £4 but get £25 with other essentials. forsome, it's a lifeline. like fay, she has two children and is on universal credit. looking for work, but her money isn't stretching as far as it used to. in isn't stretching as far as it used to. , , ., , �* isn't stretching as far as it used to. in past years, i've saved and been able _ to. in past years, i've saved and been able to _ to. in past years, i've saved and been able to put _ to. in past years, i've saved and been able to put money, - to. in past years, i've saved and been able to put money, i i to. in past years, i've saved and been able to put money, i have | to. in past years, i've saved andl been able to put money, i have a card on gas, and i have been able to build it up, and i haven't got that disposable income now, so i'm really worried about that, and i'm trying to think we can sit with duvets
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around us and make it fun, but i've still got to cook and have hot water. . '!~ still got to cook and have hot water. ., 1k ., , . , water. there are 18 of these centres across england _ water. there are 18 of these centres across england and _ water. there are 18 of these centres across england and scotland, - water. there are 18 of these centres l across england and scotland, helping 30,000 families with advice on debt and other money matters. a small bit extra, then, in everyone's pocket is welcome — but is it enough to make a real difference? welcome - but is it enough to make a real difference?— real difference? people are often at the tail in tears, _ real difference? people are often at the tail in tears, and _ real difference? people are often at the tail in tears, and we _ real difference? people are often at the tail in tears, and we hear- real difference? people are often at the tail in tears, and we hear more| the tail in tears, and we hear more and more — the tail in tears, and we hear more and more heartbreaking stories about families_ and more heartbreaking stories about families where parents are missing meals _ families where parents are missing meals to— families where parents are missing meals to feed their kids, they are dreading — meals to feed their kids, they are dreading the winter, the decision between — dreading the winter, the decision between heating and eating, and the fear is _ between heating and eating, and the fear is that— between heating and eating, and the fear is that it is a trickle—down budget, — fear is that it is a trickle—down budget, sometime in the future we may see _ budget, sometime in the future we may see a — budget, sometime in the future we may see a benefit if all goes well, but the _ may see a benefit if all goes well, but the poor need help right now. there _ but the poor need help right now. there was— but the poor need help right now. there was help for business owners like dave, who supplies it paul scholes. ., ., ., ., , ., like dave, who supplies it paul scholes. ., ., ., ., , scholes. corporation tax is a big one for us- _ scholes. corporation tax is a big one for us. they _ scholes. corporation tax is a big one for us. they are _ scholes. corporation tax is a big one for us. they are not - scholes. corporation tax is a big one for us. they are not giving i one for us. they are not giving back, but now it means we can recruit at least eu extra full—time staff, and it will help offset some of the other increasing overheads we
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have experienced over the last 12—18 months. have experienced over the last 12-18 months. , ., , months. every taxpayer will benefit from the changes _ months. every taxpayer will benefit from the changes but _ months. every taxpayer will benefit from the changes but shoppers i months. every taxpayer will benefit from the changes but shoppers in l from the changes but shoppers in norwich are asking who will gain most and how will it be paid for. spending more money that we don't have, _ spending more money that we don't have, that _ spending more money that we don't have, that is the problem. rather than _ have, that is the problem. rather than borrowing more money, we should be sorting _ than borrowing more money, we should be sorting out the issue of balancing the finances. the rich, the will balancing the finances. the rich, they will benefit. _ balancing the finances. the rich, they will benefit. if _ balancing the finances. the rich, they will benefit. if they - balancing the finances. the rich, they will benefit. if they get i balancing the finances. the rich, they will benefit. if they get a i balancing the finances. the rich, | they will benefit. if they get a tax but of a few pants, somebody in a mega wage will get more money. the chancellor pledged he is on the side of the british people. voters will ultimately decide if they agree. of course, people will be sitting around kitchen tables with their calculators, working out exactly what all this means for them. a few eyebrows raised about what wasn't in it. pensioners here say nothing for them, businesses say they were hoping for movement on business rates and vat, but they will have a bit more money to hopefully invest in the local economy. that is what
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the government is hoping. this area is interesting, traditionally labour leaning, the conservative did well at the last election, so high—stakes what people think of this and how it works out. in scotland, the snp has described the chancellor's mini budget as a "plan for recession" which will create economic chaos. we'll get more on how it's gone down in wales and northern ireland with our correspondents there in a moment, but first to our scotland correspondent lorna gordon, who's at holyrood. lorna. tax rates and devolved areas of policy had already started i budge, even more so after this mini budget, which the deputy first minister in scotland, john swinney, has called reckless, describing it as a damaging set of measures by a uk chancellor who he says is playing fast and loose with the public finances. it does pose a political
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challenge, a dilemma for the scottish government — there is the cut in the highest rate of tax from 45-40p cut in the highest rate of tax from 45—40p for those earning £150,000 or above. the rate in scotland is 46 p. the basic rate has a different threshold here in scotland, and it is up to the scottish government what they do with the equivalent of that stamp duty tax. the treasury says it will allocate hundreds of millions of pounds to the scottish government to offset those in effect tax cuts elsewhere. as to what the scottish government does, john swinney says the government in edinburgh will look very carefully at their position.— at their position. most of the chan . es at their position. most of the changes announced - at their position. most of the changes announced by i at their position. most of the changes announced by the i at their position. most of the - changes announced by the chancellor this morning will apply in wales at least when it comes to business taxes, national insurance rates and the benefits system. one change which won't apply here is that stamp duty in wales is a land transaction
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tax, controlled with a threshold of £180,000 by the welsh government. will the welsh government put that “p will the welsh government put that up like in england and potentially make more house sales tax free? and other grey area is about investment zones. the chancellor said that if you talk to —— he would talk to devolved nations about that. a cool response, very little notice of these changes from the uk government. the first minister mark drake for saying these are measures that offer tax cuts for the rich and bonuses for bankers but no meaningful change for the people who need it most. applied camry are saying it is engaging in fantasy trickle—down economics. the largest opposition party in the welsh senate say that the opposition could learn a lot from the chancellor, bringing tax cuts rather than suggesting future taxation of tourism wales. the stamp duty cut won't
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automatically apply in wales and scotland — automatically apply in wales and scotland but will in northern ireland — scotland but will in northern ireland because property prices in this part — ireland because property prices in this part tend to be lower than the uk average, it won't have much effect — uk average, it won't have much effect. relatively few people here pay the _ effect. relatively few people here pay the upper rate of tax. some parts _ pay the upper rate of tax. some parts of— pay the upper rate of tax. some parts of the chancellor's plans would — parts of the chancellor's plans would involve the devolved governments, and that is complicated by the _ governments, and that is complicated by the fact— governments, and that is complicated by the fact that northern ireland currently— by the fact that northern ireland currently doesn't have one. the democratic unionist party is blocking _ democratic unionist party is blocking the power—sharing assembly at stormont from meeting because of the party's _ at stormont from meeting because of the party's opposition to the brexit trade _ the party's opposition to the brexit trade border with the rest of the uk, known as the northern ireland protocol, _ uk, known as the northern ireland protocol, and the dup says it will not relent — protocol, and the dup says it will not relent until checks on goods arriving — not relent until checks on goods arriving here from great britain are scrapped — arriving here from great britain are scrapped. when it comes to the reaction — scrapped. when it comes to the reaction of— scrapped. when it comes to the reaction of the two biggest parties, the dup_ reaction of the two biggest parties, the dup says it welcomes some aspects — the dup says it welcomes some aspects that kwasi kwarteng has announced, but it has expressed concern — announced, but it has expressed concern about others. for example,
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it wanted _ concern about others. for example, it wanted more tax breaks to help add family— it wanted more tax breaks to help add family struggling with the cost of childcare. sinn fein highly critical— of childcare. sinn fein highly critical of— of childcare. sinn fein highly critical of the conservative approach, saying they have backed the super— approach, saying they have backed the super wealthy and done nothing to help _ the super wealthy and done nothing to help the working poor. one of the more controversial announcements was the end of the cap on bankers' bonuses. the chancellor says the move will attract more bankers to work in the uk rather than other european countries. labour says the plan rewards those who are already wealthy. anjana gadgil has been getting reaction in the city of london. a gloomy morning, but how is the mood in the city of london after the cap on bankers' bonuses was lifted? i don't like it. cap on bankers' bonuses was lifted? i don't like it— cap on bankers' bonuses was lifted? | don't like it.- it— cap on bankers' bonuses was lifted? i don't like it. why? itjust gives i don't like it. why? it 'ust gives more money * i don't like it. why? it 'ust gives more money to _ i don't like it. why? it 'ust gives more money to the i i don't like it. why? itjust gives more money to the richer i i don't like it. why? itjust gives more money to the richer ones and gives less money to the poor ones. it seems a bit of a rush to me. a
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lot of— it seems a bit of a rush to me. a lot of instant giveaways. i'm not sure _ lot of instant giveaways. i'm not sure that — lot of instant giveaways. i'm not sure that they've fully thought through — sure that they've fully thought through the debt position they are taking _ through the debt position they are taking on — through the debt position they are takin: on. w through the debt position they are takin: on. .,, , ., �* taking on. positive, yeah, i'm leased taking on. positive, yeah, i'm pleased it _ taking on. positive, yeah, i'm pleased it is _ taking on. positive, yeah, i'm pleased it is going _ taking on. positive, yeah, i'm pleased it is going the - taking on. positive, yeah, i'm pleased it is going the right . taking on. positive, yeah, i'm l pleased it is going the right way for a _ pleased it is going the right way for a change _ pleased it is going the right way for a change. less— pleased it is going the right way for a change. less tax _ pleased it is going the right way for a change. less tax is- pleased it is going the right way for a change. less tax is good, i pleased it is going the right way. for a change. less tax is good, in principle — for a change. less tax is good, in --rincile. ., ., for a change. less tax is good, in --rincile. ., , ., principle. too early for celebrations, - principle. too early for celebrations, but i principle. too early for celebrations, but bars| principle. too early for i celebrations, but bars will principle. too early for - celebrations, but bars will also benefit from the freeze on alcohol duty, welcomed by colleagues linda and anna. brute duty, welcomed by colleagues linda and anna. ~ ., ., , ., and anna. we have all been hit hard, one because — and anna. we have all been hit hard, one because there _ and anna. we have all been hit hard, one because there is _ and anna. we have all been hit hard, one because there is less _ and anna. we have all been hit hard, one because there is less foot - one because there is less foot traffic because people are working from home, not coming in as much, so hopefully if people have got more in their pockets,... i hopefully if people have got more in their pockets,...— their pockets,... i think something has to be done _ their pockets,... i think something has to be done and _ their pockets,... i think something has to be done and they _ their pockets,... i think something has to be done and they are - has to be done and they are obviously— has to be done and they are obviously trying to do what they can to ease _ obviously trying to do what they can to ease the — obviously trying to do what they can to ease the pressure on the cost of living, _ to ease the pressure on the cost of living, that — to ease the pressure on the cost of living, that kind of thing, so, we 'ust living, that kind of thing, so, we just have — living, that kind of thing, so, we just have to— living, that kind of thing, so, we just have to wait and see. the cost of livin: just have to wait and see. the cost of living is — just have to wait and see. the cost of living is foremost _ just have to wait and see. the cost of living is foremost in _ just have to wait and see. the cost of living is foremost in people's i of living is foremost in people's mines. it's not yet clear how big an effect this mini budget will have. and our economics correspondent andy verity is with me.
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give us a sense of how people are reacting and markets are reacting to all of this. ., ., , . all of this. you would expect the markets to _ all of this. you would expect the markets to be _ all of this. you would expect the markets to be cock-a-hoop i all of this. you would expect the i markets to be cock-a-hoop about the markets to be cock—a—hoop about the biggest tax cuts we've had in more than half a century, but they haven't reacted that way. as we've heard, the pound has fallen to its lowest level since 1985, and that is partly because the city won'tjust say, tax cuts, great, they will weigh up whether the prospects for growth in the public finances are realistic. when they are considering whether to buy bonds, effectively lending to the uk government, they want to know about the risks, and they are just the interest those bonds they require in order to purchase them according to those rates. investors want more money offered to them to, take the risk that they don't get paid back. they now say the risk that the government doesn't honour its debts is higher thanit doesn't honour its debts is higher than it was a week ago. they are also concerned about whether these
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plans will work in the long term, so although tax cuts if you had a lot of money into the highest honours in the country and also next year to everybody, by the 19p rate in the pan, it should mean that people have more money to spend, but it is a bit like pouring petrol on a fire. you get a big explosive effect at first. whether it is sustainable beyond thatis whether it is sustainable beyond that is another question, which is why some experts are now saying, you will have an artificial boom next year because people will have more money in the pockets, but two questions — will it last, and will it be inflationary? that is the other side. the bank of england is trying to cool inflation down and this will heat it up, and at the moment the markets are saying, we think interest rates will have to go to 5.5%, a lot higher than they are at the moment.— to 5.5%, a lot higher than they are at the moment. andy verity, thank ou. and you can find all the detail of the chancellor's mini budget online, including analysis from our correspondents, how markets are reacting, and what they mean for you. head to bbc.co.uk/news
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or use the bbc news app. now more other news today. a united nations commission of inquiry investigating alleged human rights violations in ukraine has concluded that war crimes have been committed. the commission listed russian bombing of civilians areas, the commission listed russian bombing of civilian areas, numerous executions, torture and sexual violence, including assaults on children. the news comes as four ukrainian regions controlled wholly or in part by russian forces have begun so—called referendums onjoining the russian federation. ukraine says the votes have no legal force. the process in the regions of donetsk, luhansk, zaporizhzhia and kherson has been described by western countries as illegal, and is seen as a step towards annexation of ukrainian territory by russia. 0ur correspondent hugo bachega sent this report from the capital, kyiv.
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in this so—called referendum, there's only one expected result — the one that russia wants. at this polling station in donetsk, a school principal shows how the vote will happen, and how things are likely to go. since 2014, we have no doubt, she says. we are russian. ukraine and western countries say this process has no legitimacy. they claim this is a land grab attempt by russia, but this hasn't stopped russian—backed officials from going ahead. these families in zaporizhzhya have fled the occupation. they don't want their cities to be part of russia. translation: i don't support the referendum because i how can you illegally take away part of ukraine, come to others' homes and do what they please? i don't support it. translation: i think that my town
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and region fully belong to ukraine. | this is all very hard, and i think there is no place for russians on _ ourland. but on russian television, this is what you see — a free and fair vote. translation: today we are opening a new page in our history. _ it's the first day of the referendum, and we vote to join the russian federation. also today, un investigators said russia had committed war crimes, including executions, torture and sexual violence. here in kyiv, officials say the vote is illegal and that nothing will change. they see it as russia's reaction to its recent defeats on the battlefield. but this could lead to an escalation in the war. russia could argue that attacks on those areas are attacks on russian territory. president putin's forces are losing ground as ukraine advances. with this vote, russia hopes
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to be able to change the course of the war. hugo bachega, bbc news, kyiv. the coroner at the inquest into the death of 14—year—old molly russell issued a warning to the court about the distressing, harmful content of videos that the teenager had watched on instagram. the warning came before a series of video clips found on her account were shown to the hearing. 0ur correspondent angus crawford is following the inquest in north london. senior coroner andrew walker took an unusual step today, warning the entire court that journalist, unusual step today, warning the entire court thatjournalist, the family and legal representatives about videos he was about to play in open court, videos molly russell had obtained from instagram, that she had watched and liked and saved. he described them as being very distressing and said they showed self—harm, young people self harming, and that anyone who wished to should leave the court now. he said they were very difficult if not
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impossible to watch. he then showed them, a series of 17. they were indeed graphic, bloody, highly unpleasant, showing various methods of suicide. after that, we moved on to the first evidence from mehta, from their head of health and well—being, a really significant moment, the first time meta has allowed one of x —— one of its executives to appear in court in britain, under oath. she said that in 2016 when mollyjoined the platform, there was no age verification so there could be no content moderation for her age group, and therefore no parental controls. angus crawford, thank you. if you have been affected by any of theissues if you have been affected by any of the issues raised here, there is help and support from organisations that are listed on the bbc action line. scientists say early human trials of a new type of cancer therapy have
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shown promising results. the treatment involves using a common virus to infect and destroy harmful cells. about 40 people had a drug directly injected into their tumours. researchers say the treatment could offer a lifeline to people with advanced cancer, though larger scale studies will now be required. the multi—award—winning novelist dame hilary mantel has died. she was 70. dame hilary won the booker prize twice — for wolf hall, her fictional account of the rise of the tudor politician thomas cromwell, and for its sequel, bring up the bodies. lizo mzimba is with me: extremely sad news. absolutely, one of the finest authors of her generation, more than a dozen books over nearly 40 years. she was once described as one of the best kept secrets in the literary world. of course, that all changed with the
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publication of wolf hall. it won the booker prize, was acclaimed by critics and embraced by the public, and her genius, what she did with that book and its sequels was that she didn't want to take advantage of years, centuries of historical analysis, she wanted just a place you in the middle of these complex situations so that even if you didn't sympathise with them, you understood the motivations, the emotions of these characters, then she wove that into a compelling narrative that worked beautifully, not just on the narrative that worked beautifully, notjust on the page but on the stage, with theatre adaptations, and on the screen, with film adaptations. jk rowling said, we have lost a genius. a fellow booker prizewinner said, we were so lucky to have such a massive talent in our midst. a publishing director talked about a new book that she was excited about working on just a few weeks ago. that is such a sad element of this story — she wasn't
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someone who wrote great books long in the past, she was still at the height of her

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