this is bbc news. i m samantha simmonds and these are the latest headlines at four.. are the latest headlines at four. as the prime minister fights for her political life her new chancellor admits mistakes were made in rolling out the government s new economic policy and that some taxes will rise. we are going to take some tough decisions, notjust on spending but also on tax because we have to show the world that we have a plan that adds up financially and that is the way we will get stability back in the situation. meanwhile, the governor of the bank of england warns that interest rates might need to go up by a larger amount than previously expected after financial volatility following the government s mini budget last month. we will not hesitate to raise interest rates to meet the inflation target. my best guesses in
decisions ahead , suggesting taxes may have to rise and refusing to rule out spending cuts. meanwhile, in the last hour, the governor of the bank of england has predicted that uk interest rates may have to rise even higher than expected. our political correspondent, ione wells, reports. congratulations, mr chancellor. hours into his newjob, the chancellor was tasked with setting out his stall, a very different one from the one the prime minister set out. on wednesday, she said she is absolutely not planning public spending cuts but listen to this. we have some very difficult decisions ahead, difficult decisions on spending, which is not going to rise as much as people hope and i am going to be asking all government departments to find additional efficiency savings. one person s efficiency savings is another person s cut. - yes. and remember when liz truss said the country cannot tax its way to economic growth? we are also going to have pressure on the tax side, taxes are not going to
others argue that would be better than the alternative. aren t you going to say sorry? and she faces more clashes with them ahead, on possible spending cuts, on her plans to bring back fracking, on changes to house building and planning rules. she is still in the top job but feels far from being completely in control of her increasingly divided party. a short time ago i spoke to our correspondent helen catt who s in downing street. and i asked her what mr hunt s arrival at 11 downing street could mean. i think his primaryjob this morning was to try and reassure the markets. he went out and calmly set out the position and suggested there would be a change of strategy from before. in that sense he did what he needed to do. in terms of addressing the political issue in the conservative party, potentially that has heightened it for liz truss because her central plank of her leadership pitch
over the summer to those who voted her in, was this big economic visions of loosening regulation, cutting taxes, throwing everything at growing the economy, saying they needed this new bold approach to make this work. for those who did not support liz truss, they will look at what was said this morning by the chancellor, seeing what looks like a very different strategy emerging and thinking if she is not going to do the vision she set out to do, what is she for, what is the point of a liz truss premiership? there is another problem for her in that for those supporters who were really enthused by that vision she set out in the summer and bought into it, they are really disappointed she has now in effect overturned most of that, even though she says the mission is still to go for growth. you have that issue there and the issue that her authority has taken a huge knock from all this. there are some who think jeremy hunt s appointment has