Says is worth it. When he sees what his students can achieve, jessica washington al jazeera to carter. Ah, youre watching al jazeera, these are the headlines. This. Our a Ballistic Missile launched by north career is overshadowing trade talks at an apex summers in thailand. Us Vice PresidentCarmella Harris gathered leaders of ally states to condemn young yang. Harris says its actions destabilize the regions security and raised tensions conduct by north korea. Most recently is a raising violation of multiple un security resolution. Stabilizes here in the region and unnecessarily raises tensions. We strongly condemn these actions, and we again call north korea to stop further unlawful the stabilizing act. On behalf of the united states, i reaffirmed our iron clad commitment to our in pacific alliances. While japan has warned, the mis are launched by north career on friday is capable of reaching the us mainland. South korean authorities believe it was an intercontinental Ballistic Missile. Japan confirmed he landed in its exclusive economics. Im now the use of fire in a residential building and guys who killed at least 21 people including 7 children. The blame wrapped it on the 3rd floor of the building in the jabante, a refugee camp. The bonded Administration Says saudi arabias crown prince should get immunity in a case related to the killing of us journalists, jamal her show gene. Its a reversal of president jo bidens campaign at rhetoric in which he denounced the murder. The Washington Post columnist was killed in the saudi consulate in the sample in 2018. Its up to a judge to decide whether to grant him immunity. Twitter is closing his offices until monday, after hundreds of employees reportedly quit new boss. A little mosque had given stop the option of signing up to a new hard core, twitter, or leave with 3 months severance pay. The deadline for work is to decide past several hours ago. All right, those are the headlines. Im emily angland. The news continues here on out to 0, after inside story to stay with us. Ah, the cost of living prices worse ends in the u. K. Inflation is at its highest level in more than 40 years. Millions of people cannot afford to buy food or heat their homes. So will the new governments budget be enough to ease the pain . This is inside story. Ah, hello, welcome to the program. Im hashem alcala. The u. K. Government says its making difficult decisions to control aspiring cost of living crisis. Millions of people are struggling to pay their food and, and as you bills and things could get much worse as winter sets in. Inflation has hit 11 point one percent the highest level in 41 years. Families are paying 90 percent more for gas, electricity and fuel than the were a year ago. Charities say more people are asking for help. The previous by minister news truss resigned in september after her finance minister announced 53000000000. 00 in unfunded tax cats that spooked the markets and the pound took a nose dive. The current finance minister under Prime Minister wishes snark is raising taxes and cutting public spending. Instead. This is a balance ha, to stability, tackling inflation to reduce the cost of living and protect pension or savings while supporting the economy on a path to growth. But it means taking difficult decisions. Any one who says there are easy answers is not been straight with the british. People under simmons has bought from london more than 38000000000. 00 in cuts, and around 28. 00 and a half 1000000000. 00 raised in increased taxation. Really, nobody in the u. K. Is going to escape paying more tax because stealth is the word with this autumn. Statement or as anyone else would call it a budget, or the stealth is applying to the salaries of people in the went in the sense that they will actually find that their thresholds will be crossed quite easily. They stay the same, but with inflation high and with wages increasing, theyll still end up paying more tax because the cross thresholds add to that a number of increases in, in direct taxation. And the fact that most of the really big costs will be held over until 2025 co. Incidentally no, not thats just after the general elections are due. So a very big political move there by this conservative government. And also there are some takeaways witcher appear quite well that advantageous to the public such as Health Spending education spending and spending on on the year a care sector. However, that is really going to be overtaken by inflation. And that applies to many of the goodies in this budget. In ball terms straightforwardly. People are going to really suffer in the u. K because of this autumn state. Andrew simmons, the inside story. Ah, now lets bring in, i guess her will be joining us from london today. We have patrick diamond, professor in Public Policy at Queen Mary University of london. Alpha sterling is the director of the search of the new economics foundation. And max lawson is the head of inequality, policy at ox, from international. What come to the program . Patrick, is this an attempt by jury hon to fix an economy that has been grappling with inflation potential for recession or more of a political attempt by the tories to build a credibility that has been battered by blunders . I think its a very Political Economic statement which has find it to fundamental intentions long. Youve already referred to you, which is attaching to restore the credibility of the government of the disastrous many budget in september with rob financial markets. But then the 2nd political aspect to this statement is trying to create a platform for a conservative election victory in 2024 when we expect an ex lashan to happen. And this Statement Today was i think an effort to try to my hammer Political Choices and debates on the will shape that Election Campaign alfie. If you look at the other statement by a jeremy hand, so hes talking about the need to high taxes and cut public spending as somehow an idea remedy. Comp pulled were the decision by their bank of england to increase the Interest Rates or something which has been unprecedented over the last 33 years. Do you see this as a plan that could work that could fix the economy . And i think its highly problematic. I mean, you know, the, you k is facing a final severe economic downturn, the other countries of a rich colonies. I mean, we just heard today a record collapse in disposable income per person in real terms of 7 percent over 2 years. That is the say, the deepest on record here in the u. K. And is far deeper than in other comparable economies. As i said after hours, the question where does come from and its come from our own policies, including the ones you just mentioned. Said the bank in england, increasing Interest Rates are faster, harder than other countries are quite likely over doing it and pushing us into a deep recession that could otherwise have been the case. And today, getting an alternate statement that has a net, a contraction restart small, i mean by that is taking money out of the economy even as were going into recession and even us with them kind of slow recovery out that this, the policies today are spending cuts tax rises that will, hong recovery. Max, when you look at the statement, it offers some metrics, some decisions to be made, but then when it comes to the very core question of, where does the leave the most vulnerable . Those who are all low income the, the government does not really seem to be often some very clear answers. Yeah, i think its hard to exaggerate the scale of suffering out there in the country for the poorest people, but a large proportion of the population. I think, you know, in some ways, politically, its a lot easier for the tourist to ignore the poorest people in the country. Its very hard to ignore the sheer numbers of people being hit by this real terms car, and theyre spending power, huge hikes in the mortgage payments. We have a situation of wanting 7 people according to to say, a skipping me or was because they cant get enough food. And then were still one of the richest countries, the world. So the scanner is suffering not just for the post of the pool, although that is where people are hardest hit. But across the country to serious political problems. List government and one thats going to cause enormous suffering and hardship for, for families across the country. Patrick, how did the ok get to this particular point . Should we blame the full Prime Minister . Lets trust and her chance of the checker cause the quoting why is the legacy i think of a series of decisions that should be taken over a number of years over the factory at separating out the cool impacts of these different decisions. This is in itself challenging, but obviously weve conference decisions, leave European Union thoughtful a period of very significant austerity in the claim which itself inflicted significant damage based on Public Infrastructure and also on the welfare site. So when you, when you went into the crisis generated by have 19 and then obviously the subsequent j political crisis course on the spot warning ukraine, it was already an economically and socially vulnerable position. And so i think the maintenance that were seeing status, the reflection about governments having to take the very difficult economic decisions because the economic funded mental than the highest so weak. And then we, because i think decisions going back over the last decade of it was, it was quite obvious. I mean, when, when, when liz trust and quite a quarter decided to move ahead with a plan, which is basically based on a very notional supply side, economics. Why you cut, you decide for tough costs without having the without going to cost public spending. And this has increased borrowing across the spectrum, created a panic, and we know what happened white after that, that we have jeremy hunt whos trying to those all those decisions. But it does not really give you a strong guarantee. Is that like 6 months from now, were going to see an economy which is back on track. Yeah, i mean i wouldnt over exaggerate the impact to the trust car tang many budget and thats for 2 reasons. One is that the main impact of that budget in terms of affecting the u. K, Going Forward was an increase cost of government borrowing. And, but actually that has now been essentially 3 reversed since the budget came out to 10 of those markets of now eradicated. If you like that, that competency premium that they were giving to the u. K. Thats gone. And secondly, the budget didnt show us the sort of hard limits to borrowing per say. You know that the wrong lessons about it is to say, markets going to panic. If a country are you pay borrows, the lesson is a country borrows. It doesnt support the economy, but that barring then market take a very dim view. So its quite important to learn that lesson. Therefore, were looking at this budget, the fact that were not supporting the economy despite across living crisis, despite recession, shows that were not learning that right lesson. Its certainly not mandated by investors. Alfie when you look at the graphs all the charts presented by Different Countries in particularly in europe, most of them having exactly the same set of problems by using gas, electricity prices, food shortages, high transport prices coupled with the ramifications from the rustling evasion of the ukraine but still, they managed to bring their own or to bring the economy to the levels which were before covey 19 except for the okay, which is like in fi behind why . Yeah, thats right. I mean, a lot of it is down the fundamentals, but previous gas was referring to the u. K. Went into the pandemic, hardly being worse prepared. You know, we had a, a Health System that was near breaking point. We had record a period of low at low average earnings. We productivity, we went into it incredibly weak and nice effect the way with then recovered. We also mismatched the pandora, i think compared to other countries as well. The i would say, as well as point us making non Public Finances, is that the e u a years and countries have suspended their fiscal rules, they are not about to cut tax, cut spending or raised taxes, going into this difficult period the to spend their target whereas the u. K is now going on and a new austerity isnt entirely direction. I think that will become increasingly important in the coming years. Max, if you look at all the projections, they basically say that will likely to see recession move in all the way towards the other, the 1st half of 2023. What does it mean for the families who are suffering as we speak . Oh, it means terrible hardship. That means choosing between hating and 18. I mean, i think of the, some of the parents at my kids school here, and one of the poorest areas of london, you know, really struggling to make ends me. And this is not, people are benefits. These are people working. You know how they dont job struggling to, to pay the bills. And i think its really important to get the message across that there is plenty of money in this country. And its good to see the chance to increase taxes at the top a small amount. But the so much more he could do should be done to ensure the richest people in our country pay more tax. For instance, the right of tax on Capital Gains is to 20 percent. Instead of their taxes for work is much, much higher. You know, the highest income tax, right . A 45 percent. So you make you pay less tax on the money you earn from your bank account and Interest Rate savings than you deal with the money from hard work. Really simple steps he could take to raise a lot more money from the very rich people in our country and to pay to protect report. So we dont have to go down this fool there and of all stare to which would only her economy and her ordinary people even more, less tax the rich thats not a poor patrick was, was back that a responsible in a way or another for this situation. Because you look a neighbor economies, they manage somehow to navigate through this process by doing business with a lot of an expanded market and the managed to mitigate the impact. When you look at the u. K. It seems to be a different scenario. Yeah, i wouldnt, i think thats right. Simplify the effects that are going on here. And i think say that its simply the conference of breaks that would be a distortion. There are many different factors work here which explain the, the providing Economic Situation of the day. And i think that the, the truth is the, the, on the line for the british economy. Or we can happen week for some time g, c, levels of public and private investment and the poor economy, the decision making. And those have been exacerbated by series of shocks and crises of which it is warm, but yet for the cool crisis around another. And obviously, choosing to leave europe in market in the last 2 years, has also inflated the shocks on particular part of the economy. One of the really striking features, the brakes it is, but in some respects, london, the south east has been relatively well insulated from economic shock, the other parts of the economy, the north of england, and so on. The golden part of why i was doing really very badly indeed. So theres also be a kind of a symmetric right that has created. So when you take all these boxes together, it just on the lines really the weak moment position that britain, the points itself in alpha does the economy have or the fundamentals it takes to not only to like the 59000000000. 00 plus hole in the countries Public Finances but also rebuild the economy. Well, i mean, the 1st thing is there isnt a 54000000000 whole, its just a gap between the government and political targets and the current full cos. And one of the reasons one is budget if i political because the government trying to make it about Public Finance sustainability. Even though that is a function of Political Choice to distract from all the underlying things that previous gas was talking about in the economy. But ultimately, what it means for people, thats the real crisis is the cost of Living Standards that 7 percent squeeze in real incomes over the next 2 years. And thats what the government failed to address. Max, were talking about static measures, which are going to continue for quite some time. It means that some people will have to pay 4000. 00 pounds a year to to try to tackle some of the rising bills that we have to deal with. Could the middle class be mostly targeted as far as the slope the measures are concerned . Or do you see it more expanding towards all the sections of the society . I think where it becomes a real political problem for the tories. Is it with rising interests, right . And that really significant increases in the cost of mortgages with really iris stretch 1st time buyers is spending choose proportion of their income, ready on servicing their mortgages or paying very high rents, particularly here in london, in the southeast there. I mean, its not the same. Its not they have to choose between 80 and 80, and the huge suffering is really coming in the bottom half of the population, particularly for women and particularly people of color. But i think as a political problem, when it starts to look at that hit the Living Standards of the vast majority of the population. And people can make a connection between the and the clear economic mismanagement of the current government and previous iterations of the current government. Then i think that is really, really big issue because way more prepared for us going to fill the sprays and its going to make a big difference. Politically. Patrick, the shadow chancellor. Rachel, be said. The country cannot, for the country, is sick of being ripped off by the tories again. And again, as she said that she doesnt see a way out from an economy which is not based on growth. Because this be the moment to build momentum for the labor party and see how it could benefits from this situation. Politically speaking. Well, certainly in the last few months the, the lots of economic trusting credibility in the conservative government under the trust the previous Prime Minister. And i think now, and she said that has been very striking and found friends in the position of the opposition made the policy because people conceded the current governments policies are not very successful. Thats a real loss of confidence by the public law school. So business and even with financial markets, which is traditionally being strong, supporters of conservative governments. So certainly late this position has been strengthened, but of course its still faces a challenge itself, which is to say what it would do. And i think the intention of the statements state like army. Com was to try to lay the grounds over the next couple of years for challenge to labor. Which is to say, what would you do . Would you be willing to borrow more . Would you tax more . He did taxable acts which had to go along with some of the cops in public spending where pass, make so late. This position is a cool story that has been for some time, but it has to get a signed act together and it needs to be able to have a clear argument and response. The question if the government will pose, which is what would labor do if it was in government, ill say can the u. K, get out of this mass and at what price . Yeah, and i think the key thing of course is, is, are you a nozzle homogenous entity, but the People Living there, distribution consequences and consequences, inequality, but i think action you can come through this period in a way that does protect a Living Standards of those that most at need protecting of the poorest in society, and you making the 3 things. First of all, acknowledge that this is a whether having a current mistakes at home is fundamentally a price shock. Thats common to many countries. Number 2, therefore say right, we need to protect peoples Living Standards. As this price shock moves free. The systems that support energy bills that much more target than what we already have. Its much more protection kind of Public Service and based on an investment in our income safety net and the number 3 to say on to make sure that all of that is what the family doesnt add to inflation further and set up the tax rises that would offset that, and if you were to go down that route of them, acknowledging that the, the real world putting in place to support and raising taxes on those who can afford it, prevents the choice and getting worse. You can come through the situation, come out of it, stronger, certainly stronger than what the government is currently in the park up on the setters on mass. When you look at a decade of, of missteps which we should have left the Public Services close to a breaking point. Now you have 2 key sectors here, education and health care. If this is going to go for quite some time, oh, is it bad news for all everybody in the u. K . I think if you look at cuts to the church and is absolutely, i mean, the vast majority of british people use the National Health service. You know, private healthcare is only used by the very, very rich in this country. And that is very different to many of the other countries or works where the universal Health Coverage is only the privilege of the rich. So a massive cuts in real, in real terms, to what be in a chest could do off the back of the heroic steps i took your and kind of, it does impact. Absolutely. Everybody in country. And thats another reason why some place called politically dynamite. I do think that that is good news for the opposition that the conservative party, the record on Economic Management is taking touch of beating. But i also think that the live party i agree with the previous speaker needs to be much care about what they can do. And i think in particular, if i need to be very specific about how theyre going to increase taxation on the very, very well, lets have him call for a wealth tax instance which seems a very good Solid Research showing that wealth tax on the top one percent could raise another 10000000000. 00 meant to pray about taxing. The super rich, we know from polling about is enormously pumped across the political spectrum. So there are things that i think labor could be doing to, to take the initiative and show that there is an alternative to us. There is an alternative to the cops, a hunting poorest will over the country. Patrick, what happens when it comes to the very issue of taxes. They say that they would like to a ca, taxes because you see it as one of the key components of the strategy. Im talking about the tories by the power base itself, which has always been skeptical this help barry notional cutting taxes is its something that could grow the trust the tories has been having most of the time with its power base. Yeah, i mean its important thing to reflect from the, the wild oscillations and physical policy that the recently been going for and gets being pointed out quite quite things, many budget and with the largest tax cussing budget for 50 years. But the package, the term commas, amounts today is the largest tax running thing, budget statement by government in 30 years. So in the space of a few months, you take the School Policy kind of dramatically changed direction. I think that the conservative, the real problem is that in success of elections, many claims we since its being based around their account commitment to generally low taxes. Nicole, what weve seen in this package today is really the end of the right strategy because taxes risen will rise and many middle income groups will be caught in this kind of concerned movement bands with facts. The electrical can are, the concern is particularly multiple seats that populated by higher proportion of these kinds of middle income. And its not going to be hit really hard by the measures jeremy on the mounts today. Ill say, if you dont mind in less than 30 seconds, if you look at all the metrics now london losing position of the most valuable european stock market, we pound fuse of recession and inflation of the highest in more than 41 years. What does it leave the u. K. And leaves us expose, but actually those are the symptoms of the problem, not problem itself. And the, and the problem, the life i symptoms is at the wrong decision at the wrong time by our petitions and government and our central bank, patrick diamond, ill face telling much loss. And i really appreciate your insight looking forward to talking to you in the near future. Thank you for watching. You can see the program again any time by visiting our website al jazeera dot com for further discussion. Go to our facebook page. Thats facebook dot com, forward slash ha, inside sorta. You can also join the conversation on twitter. Our 100 is add a jane size for me hush and the entire team here in doha bye for now. A new series follows players from 6 countries hoping to make it to qatar 2022 people love football guy. Not so much. Playing Football Industries are passion at be so 2 features 3. Hopefully im gonna be so glad thats going to work a home. I will be part of the world cup dream. 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