The green slopes by questioning the increasingly regulatory pressure petrol and diesel pressure on petrol and diesel cars, ill be encouraging the Prime Minister to let his inner jaguar roar. If we want to win the next election, oxfam, the scandal ridden charity, now thinks that measuring the success of countries through Gross Domestic Product gdp is an act of colonialism grown. Perhaps they would rather we measured economic success based on a countrys number of Green Smoothie bars and diversity consultants and how the former president donald j. Trump never out of news, is once again set to appear in court at the end of this hour, this time for as the special counsel sees it, prolific, lies about Election Fraud fuelling the january sixth riots. As ever, polly will be bringing you updates and live happenings as and when they happen. State of the nation starts now. Starts now. Ill also be joined by a perspicacious panel this evening, historian and broadcaster dr. Tessa dunlop and former ukip leader henry bolton. As ever, i want to hear from you. Its a crucial part of the programme. Email me. Mel mog at gb com. But now its gb news dot com. But now its time for the news of the day with middlehurst. With polly middlehurst. Jacob thank you. Well, good evening to you. The top story from the newsroom tonight is that the bank of england has raised its Interest Rate for the 14th time in a row. Its increasing from 5 to 5. 25. Thats the highest base rate since 2008. The bank saying that it expects inflation to be halved by the end of the year. And the chancellor jeremy hunt, telling gb news the governments plan is working. Well. The bank plan is working. Well. The bank of england forecast today say that we will avoid recession and in a years time well get inflation down to about 3, 2. 8, i think is the number. So although its very tough when Interest Rates go up for families or for businesses that have got loans , what those have got loans, what those forecasts are saying today is that if we stick to the plan, it is working and we will end up with a soft landing and we can avoid a recession. Avoid a recession. Well, the shadow chancellor rachel reeves, says the government needs to take action. A family thats looking to remortgage their property is going to be paying , remortgage their property is going to be paying, on remortgage their property is going to be paying , on average going to be paying, on average more than £200 extra every single month. And for some people its much more than that. The government needs to take responsibility for the fact that inflation in the uk is much higher than it is in comparable countries. Comparable countries. Well, donald trump has made his way to washington dc. Lets his way to washington dc. Lets show you the pictures from a short time ago. Donald trump arriving at ronald reagan, Washington National airport ahead of his court appearance. Hes about to head by car, we understand , roughly a five mile understand, roughly a five mile drive to the Barrett Prettyman us courthouse in washington, dc. The Court Building itself just steps from the capitol building, where, of course , those deadly where, of course, those deadly riots of january. 2021 happened. Riots of january. 2021 happened. And he is accused of attempting to overturn joe bidens election in 2020. We, as i say, hes due in 2020. We, as i say, hes due in court 9 pm. Uk time. Well keep you updated with the latest on that, of course, as information reaches us. Meanwhile, here at home, the high street retailer wilko has warned its on the brink of collapse , putting around 12,000 collapse, putting around 12,000 jobs at risk. The boss of the homeware chain says he expects the company to go into insolvency after failing to secure a takeover. Wilko has about 400 stores in the uk and its filed a notice of intention to appoint administrators as now five activists that scaled the Prime Ministers personal home in North Yorkshire have been arrested on suspicion of causing criminal damage and a public nuisance. The protesters, draped rishi sunak home in black fabric in protest against the new north sea oil and gas licences that were recently granted by rishi sunak. Were recently granted by rishi sunak. Gb news asked the sunak. Gb news asked the greenpeace ceo if its justified to turn up at the Prime Ministers private home. We checked before going. We made sure there was nobody there. It was planned with utmost care. We delivered the utmost care. We delivered the message that what hes doing is unacceptable in a climate emergency. Hes the Prime Minister and this decision. Let me finish is on him. Well, you can see more of that interview on dan wootton tonight, just under an hours time, 9 00 here with gb news across the uk on your tv, in your car on Digital Radio and on your car on Digital Radio and on your Smart Speaker by saying play gb news right now though, time to go back to. Jacob de time to go back to. Jacob de dufing time to go back to. Jacob de during the pandemic, the bank of england created a total of £470 billion through quantitative easing. Easing. The bank bought government bonds as a means of securing demand keep cost of debt demand to keep the cost of debt down, government borrowed down, as the government borrowed over £400 billion to rescue the economy. As we locked down. But the later rounds of quantitative easing implemented by the bank were excessive and inflationary. The transmission mechanism between the money supply and inflation is not entirely clear, but the two are on questionably linked. But the two are on questionably unked. So but the two are on questionably linked. So when others realise there was a problem, the bank ignored them and was slow to raise rates. Despite repeated raise rates. Despite repeated warnings that inflation wasnt transitory like the famous ostrich, its head remains stuck in the sand and now the ostriches are flapping in a panic, increasing rates more than seems to be necessary. Than seems to be necessary. Today, the bank announced the Monetary Policy committee announced yet another rise in the base rate of 0. 25, 25 basis points, a quarter of a taking it to 5. 25 overall. This is the 14th consecutive rate rise , and 14th consecutive rate rise, and its come from such a low level thats come from 0. 1. So the percentage increase is many times over. Percentage increase is many times over. And sweden has done something very similar. Its central bank been behaving in a similar way to ours with unneeded later rounds of post pandemic quantative easing as well as slowness to increase Interest Rates. And interestingly, our inflation rates have been closely correlated. So thats further correlated. So thats further evidence that the money supply is behind this inflation rise. Is behind this inflation rise. So when quantitative easing was first implemented in 2008, it didnt cause us cpi inflation because the money was essentially contained within the banking system. It was short bnng banking system. It was short bring up banks that they continue their operations actions. But the quantitative easing during the pandemic went straight peoples pockets. Straight into peoples pockets. It effectively just printing it was effectively just printing money, printing £5, £50 notes and stuffing them in peoples pockets through policies such as furlough. So why is the bank getting this wrong . Well its dominated by bureaucratic groupthink. Like what . The groupthink. Like what . The Monetary Policy committee needs is diversity of thought rather than uniformity of opinion. When the Committee First began its members had different opinions and perspectives , which made and perspectives, which made a success of Interest Rate setting. Weve talked about the effects of these increases on mortgage holders before, but its a very real problem for households and indeed for businesses, for households as 35,000 people every week are finding their fixed rate mortgages expire , which could be mortgages expire, which could be one 1. 5, and they move to variable rates, which could be about 6 to 6. 5. An enormous increase in their Monthly Payment because of these new higher rates for business. Well, there are real consequences to who it emerged that wilko has issued a notice of intention to appoint an administrator to homes and Household Goods retailer. Homes and Household Goods retailer. This is homes and Household Goods retailer. This is a homes and Household Goods retailer. This is a serious risk of collapse at this point if it cant find a buyer within the next two weeks. And any business thats taken out loans will be in this position. If the loans are floating, we saw some of this with thames water too, so the bank kept rates unrealistically low for too long. It pumped money out into the system and now the consequence losses have come through in inflation in. But having said that, much higher Interest Rates, it hasnt waited to see what the consequences will be. And this is important because inflation is a lagging indicator. Its one of the last indicators to move up and to manage to get inflation down without a recession is an incredibly difficult, Sensitive Task , which the slightly task, which the slightly clodhopping bank of england may not succeed in. Im very pleased to have Liam Halligan with me this evening. Liam, to have Liam Halligan with me this evening. Liam, i think youve been reporting on this since 7 00 this morning, so thank you for making your day so long, showing proper capitalist work ethic. Do you long, showing proper capitalist work ethic. Do you think the bank has gone from one extreme to the other . To the other . I do indeed. Jacob ive been writing this for many, many months in my telegraph column. I think the bank was far late think the bank was far too late to raising rates , and when to start raising rates, and when it did start raising rates finally late 2021, it was finally in late 2021, it was cautious with very small Interest Rate rises. As a result, rates are now going up further and will stay higher for longer than otherwise would need to be the case. So yes, i agree with you very much. The bank was too slow and it dismissed inflation consistently as transitory. It dismissed the pleadings of people like you and i who said quantitative easing was going to be very inflationary. This covid era qe that had escaped from the banking system, if you like. And thats why the bank of england, in a bid to regain its shattered credibility , is now compounding credibility, is now compounding its earlier errors by keeping rates too high for too long. And its adding a cost to everybody. So theres the Interest Rate cost, but also as it reduces quantitative easing, its taking a loss on the bond selling by not holding them to maturity. Isnt this an even more decision that would more bizarre decision that would cost taxpayers tens of billions of real for money of pounds of real for money losses that are in a sense , its losses that are in a sense, its a mirage. Were now deep into technical territory. Technical territory. The losses that the bank incurs on so called quantitative tightening. But youre right, it isnt cost free to create loads of money and then use that money to buy government bonds. That has a cost. If to buy government bonds. That has a cost. If this to buy government bonds. That has a cost. If this stuff has a cost. If this stuff worked, the roman empire wouldnt have ended. Zimbabwe wouldnt have ended. Zimbabwe would be in the g7 and so on. And it strikes me that the bank of england now has is in danger of england now has is in danger of driving the british economy into a recession that it neednt enter into that is two consecutive quarters of negative growth. Our economy, the men and growth. Our economy, the men and women out there working in it, particularly the Small Business leaders across our economy, they have shown tremendous resilience over the last year or so, a year , you know, less than six months ago, the bank of england was saying we were about to enter a year long recession and they were wrong. The bank of were proved wrong. The bank of england say said today we wouldnt recession wouldnt enter a recession despite their 14 rate rises. How come they were . I dont think theyre going to right now ehhen well, the power of it , 35,000 well, the power of it, 35,000 households every week finding that their Interest Rates have gone up fourfold. Thats gone up about fourfold. Thats a big chunk out of income. Youve big chunk out of income. Youve seen private credit declining very sharply in the latest money supply figures. There is a big supply figures. There is a big tightening in money supply beyond what i think the bank would have liked to have seen. Well, the Deputy Governor of the bank of england, ben broadbent, admitted today in the post Decision Press Conference earlier afternoon that he earlier this afternoon that he acknowledges that Monetary Policy , Interest Rate changes policy, Interest Rate changes take between 12 and 18 months, even two years, to work through fully into the system. Of fully into the system. Of course, the impact on Mortgage Rates is almost immediate. If youre coming off a fixed rate as so many tens of thousands of people are, each week, Business Credit also jacob, by the way, 75 of that is on variable rates as well. So i think the bank of england should have been calling its boots holding fire, at least since march when we had 10 or 11 Interest Rate rises in the can to see the impact and were seeing the pain that this is incurring these Interest Rate rises not just on households as their Mortgage Rates go up by a huge factor, as youve just highlighted. Were also seeing it in business. Wilko is a major retailer in this country. It has 400 outlets. It has 12,000 employees. Wilkos tend to be in high streets in northern towns and midlands cities. Its not and midlands cities. Its not really the kind of place that worries a lot of our political and media class based around westminster with respect, but its a real high street perennial. They have issued this nofice perennial. They have issued this notice of intent to go into administration in hopefully in the next couple weeks. They the next couple of weeks. They can and a rescue can find a buyer and a rescue plan. Plan. But employees is but 12,000 employees is a really Serious Business and its the increase in Interest Rates and Business Rates that are having the effect on it. Its increased Cash Payments out of the business. Lets not overlook what Business Rates are. I know you have campaigned , youve have campaigned, youve mentioned this from the backbenches. Many times. Business rates are taxes that businesses pay on the rateable value of their premises. Whether those premises are rented or owned, you have to pay Business Rates even. If you dont make rates even. If you dont make any profit, even if you dont. Any profit, even if you dont. Take a single pound in revenue as a business, particularly as a shop, you still owe those Business Rates to the taxman and to the exchequer. They put high street retailers at a huge disadvantage to their online competitors. Of online competitors. Many of the online competitors, competitors. Many of the online compeoffshore or in other tax based offshore or in other tax jurisdictions. Thats why ive been for many years been saying for many, many years now tories should be now that the tories should be serious, Business Rates serious, lowering Business Rates that way to that would be a great way to level because you will help level up because you will help to save lot of those northern to save a lot of those northern towns the high are towns where the high streets are hollowed towns where the high streets are holthats a subject we will thats a subject we will have to to. But liam, thank to come back to. But liam, thank you much. Thank you for you very much. Thank you for your very long you. Only your very long day. You. Only get the best service on. Gb get the best service on. Gb news. Dont forget to let me know what you think. Male mortgage cbnnews. Com coming up, should prime let should the Prime Minister let his jaguar plus, his inner jaguar roar . Plus, welcome back. Im still Jacob Rees Mogg and this is state of the nation. Youve been getting in touch with your thoughts. Roy in touch with your thoughts. Roy says raising Interest Rates punishes the innocent with. Punishes the innocent with. Mortgage loans and not the wholesalers who. Are raising wholesalers who. Are raising prices, causing the. Inflation prices, causing the. Inflation ian and jill says this will put more people into poverty. They have brought the country to its knees areas as we cannot knees in all areas as we cannot take any enough is