as the new chancellor, jeremy hunt, and prime minister meet for talks today, they face a daunting task. there will be a new budget in a fortnight, and the government needs this one to calm turmoil in financial markets. but the governor of the bank of england has warned borrowing costs are already likely to rise. we will not hesitate to raise interest rates to meet the inflation target, and as things stand today, my best guess is that inflationary pressures will require a stronger response than we perhaps thought in august. in a statement last night, jeremy hunt said. he said there would now be very difficult decisions both on spending and untaxed, and it is already clear that he plans to junk the taxcutting agenda liz truss promised during the leadership contest. even the us president, joe biden, said he thought the original plan had been a mistake.
an almighty roar. this is news day on the bbc. 0ur headlines for today: at the us congressional committee investigating the storming of the capitol in 2021 has voted to subpoena the former president donald trump. britain s chancellor kwasi kwarteng says he is not going anywhere as pressure mounts on him to reverse the controversial taxcutting policies announced in his mini budget. let s turn to china where president xijinping is set to be given a historic third term in power this weekend with efforts to boost his image and popularity in full swing across the country however in beijing there was an act of protest just days however in beijing there was an
turning to britain, kwasi kwarteng says he is totally focused on delivering his taxcutting plans to increase economic growth. he has admitted his mini budget has caused some turbulence in the uk economy both said countries around the world are facing similar problems. as pressure intensifies, the foreign secretary james cleverly said changing the prime minister would be a disastrously bad idea. here is our political editor chris mason. the government finds itself in an almighty mess. we ve got 15 minutes. i m trying to find out what conservative mps say they should do, and what ministers say they will do. the chancellor says he s sticking to his plan. our position hasn t changed. i will come up with the medium term fiscal plan on 31st october as i said earlier in the week, and there ll be more detail then. the mood at westminster
the prime minister will stand by the tax cuts outlined in the mini budget, as the conservative party conference gets under way in birmingham today. it s after the announcement of her economic plans caused turmoil on the markets. our political correspondent lone wells is in birmingham. good morning to you. it could be a challenging few days. she has already had a challenging few days but more challenging days for liz truss? ., , but more challenging days for liz truss? . , ., , truss? that is right, roger. these conferences truss? that is right, roger. these conferences can truss? that is right, roger. these conferences can sometimes - truss? that is right, roger. these conferences can sometimes feel i truss? that is right, roger. these conferences can sometimes feel a | conferences can sometimes feel a little bit detached from the outside world, a bit like people preaching to the choir. i think on this occasion every word that liz truss and her counsellor say will be highly scrutin
summary, it is an economically troubling time with an ominous decision over what to prioritise, the energy rescue, or tax cuts, leading to be made within days, and impacting every household in the country. faisal islam there, with the scale of the economic challenges facing the new prime minister. we can now talk to pauljohnson from the institute for fiscal studies, who is at college green, right by parliament. paul, we are a quarter of an hour or parliament. paul, we are a quarter ofan hour orso parliament. paul, we are a quarter of an hour or so away from hearing who will be picking up the reins, and what we ve been hearing from liz truss has been about her agenda of taxcutting, and more over the time has come into the mix about what she would potentially do on support for people with those energy bills, what is your view of how affordable what she has been saying is? is your view of how affordable what she has been saying is? well, we re lookin: at she has been saying is? well, we