we begin here in the uk, where the institute for fiscal studies is warning the chancellor big and painful spending cuts will be needed to put the country s finances on a sustainable path. the independent think tank predicts with a weaker economy and promised tax cuts, there will be a large shortfall in revenue. it calculates the government would have to spend £60 billion a year less by 2026 27. the treasury says its tax cuts and reforms would deliver sustainable funding for public services . more for public services . detail on that on october sist. joining me now is janet mui, head of market analysis, rbc brewin dolphin. they have quite a lot of detail as to why they believe the government will not have the money it needs to go ahead with plans? money it needs to go ahead with lans? ., ., ., plans? thanks for having me, first of all plans? thanks for having me, first of all before plans? thanks for having me, first of all before the - plans? thanks for having me, firs
businesses will be cut by about half their expected levels as the government steps in with a multi billion pound support package to try to keep them afloat. there are some welcome to try to keep them afloat. there are some welcome bits to try to keep them afloat. there are some welcome bits but - to try to keep them afloat. there are some welcome bits but are i to try to keep them afloat. there i are some welcome bits but are not really are some welcome bits but are not really unclear and until i get my final really unclear and until i get my final bill really unclear and until i get my final bill and final quote and i know final bill and final quote and i know what it will be, i can t relax. the father know what it will be, i can t relax. the father of 14 year old molly russell, who took her own life after viewing harmful content online, tells an inquest how shocked he was after she died to discover the hideous material she had been looking at. donald trump and thre
Official forecast, other words the economy shrinks. the officialforecast, the bit missing from kwasi kwarteng s mini budget, suggests the economy is growing by a.2% this year but is now in recession and will shrink by 1.a% next year. that means less tax rolling in from vat and income tax and the government will spend more in interest on its debt and also more on benefits as the recession takes hold and unemployment goes up. rishi sunak borrowed £318 billion to years ago to cope with the pandemic but it was manageable partly because the bank of england was buying the bonds. last year, borrowing dropped by more than half. no austerity was needed. lots more tax money coming in. this year, it is expected to rise again as we enter recession to 17 7 billion. that is before it starts to drop back again. the
Doubt on that and concerns about inequality and that kind of environment it is very difficult for the economy to grow and get enough for school revenue to subsidise the tax cuts and debts we are going to see. ., . ., see. the chancellor did announce see. the chancellor did announce on see. the chancellor did announce on october i see. the chancellor did| announce on october 31 see. the chancellor did . announce on october 31 he see. the chancellor did - announce on october 31 he will set out a new debt cutting plan, and an accompanying official forecast in plan, and an accompanying officialforecast in a plan, and an accompanying official forecast in a attempt to calm down markets, so far that news has not made much difference, gilt markets got even worse yesterday? absolutely, it s because of the fact that we know that the gilt markets stabilised because the bank has intervened by committing to buy government bonds, we know that that programme is going to end this friday one octobe