average tenant £200. the chancellor is allowing inflation to do some of the lifting. but in real terms, departmental spending outside health, schools, and defence will fall by 0.7% a year to 2028, instead of rising 2.8% a year as was previously forecast. there is plenty more on the bbc website. the shadow chancellor says it is the culmination of 12 years of conservative failure. no one was talking about cuts to public spending two months ago. and no other advanced economy is cutting spending, or increasing taxes on working people, as they head into recession. this government has forced our economy into a doom loop, where low growth leads to higher taxes, lower investments and squeezed wages, with the running down of public services. we are joined by sanjay raja, chief uk economist for deutsche bank. if you need reminding who he is,
buckley. chief uk and euro area economist at nomura. i universe? there is a lot of turmoil, a lot of questions about whether liz will last the week. that s right, and markets are very nervous. we have seen a rise in sterling. if you look at whether 30 year government bond yields are, they are exceptionally high, rising 2.5 percentage points since the summer, which is a lot more than competitors us, germany for example. this is reflective of the uncertainty that still exist. they have appointed a new chancellor but he has a huge job on new chancellor but he has a hugejob on his hands. he has been chancellorfor, he has hugejob on his hands. he has been chancellor for, he has two weeks to draft a plan, which the office for budget responsibility will look at and say, yes, we think this will good and locate the market, but this is a hugejob. so what are your concerns are just this week? in under two hours, do you think we will see a spike in borrowing costs? it
finau. for now. let s return to our main story, today s mini budget. what is the view from british business on the chancellor s statement? i m joined now by matthew fell, who is chief uk policy director at the cbi , which represents around 190,000 businesses in the uk thank you forjoining us on bbc news. do these figures add up for business? ~ . ., news. do these figures add up for business? ~ . . ., , ., business? what we have got is today, bein: a da business? what we have got is today, being a day one business? what we have got is today, being a day one of business? what we have got is today, being a day one of the business? what we have got is today, being a day one of the new business? what we have got is today, being a day one of the new growth i being a day one of the new growth strategy for the uk, this is good news for business. we ve been calling for a long time for an ambitious growth plan for the uk and we have got one now. we have got one now. which businesses,
today you don t know if it will be gone tomorrow. be gone tomorrow. after repeated be gone tomorrow. after repeated rises be gone tomorrow. after repeated rises in - be gone tomorrow. after| repeated rises in interest rates since december we have the highest official interest rates since 2008, that means it s more worthwhile saving that it has been for most of the last decade and a half, but at 2.5 to 3% highest interest rates aren t enough keep up with inflation, that means the real value of your savings is shrinking. the government emergency energy measures will curb inflation in the short term, but because they are expected to inject £100 billion into the economy, it will add to spending overall and to inflationary pressure in the next few years. the bank of england expected to try to hit that up by continuing to raise interest rates in the next six months to more than double their current level. the verity, bbc news. george buckley is chief uk and euro area economist at the i
hello and welcome to audiences in the uk and around the world. we start here in the uk where the bank of england is poised for the biggest rise in the cost of borrowing for 27 years to rein in the soaring cost of living. economists expect the central bank to raise its main interest rate by half a percentage point something it hasn t done in one go since 1995. that would take it to 1.75% the most expensive borrowing costs the uk has seen for almost a decade and a half with further steep rises expected. it comes as a leading think tank has warned inflation could hit 15% before it starts to ease next year. george buckley is chief uk & euro area economist at the investment bank nomura.