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Now. the average household bill will be capped at £2500 for the next two years. the government will fit any shortfall or extra cost in wholesale prices. interest rates could bring more pain as well. the bank of england base rate is currently 2.25% and the governor says it will need to raise higher than that. analysts are pricing and expecting possibly about to go up to 4.25% by the end of the year. just to put that in context, if you've got a mortgage of £200,000, that could add £211 on every month to your repayments. households trying to balance their budgets as is the chancellor. meanwhil...

To plug and it's hard to see how that could be found without tough cuts in spending. big departments like health, education and defence are normally protected, but mr hunt says nothing is off the table. that could mean less money for things people really care about. welfare and benefits, another big issue. the chancellor could limit increases below inflation, but many of these payments go to the most vulnerable and people in low—paying jobs. inflation is the biggest problem, at 10% still. public—sector pay raises are not keeping up, so we're seeing lots of strikes as inflation bites into h...

The effective cost of government borrowing has soared and the bank of england had to step in with an emergency programme buying up government bonds to stabilise the pension sector. there is a pressing need, then, to restore some confidence and credibility. bank of england governor andrew bailey said he spoke to the new chancellor yesterday and had an immediate meeting of minds. but in a speech in washington dc, he had this warning on interest rates. 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...

My best guess is that inflationary pressures will require a stronger response than we perhaps thought in august. the current base rate is 2.25%. investors are expecting a rise of up to one percentage point in november to 3.25%. most mortgage offers are currently already around 6%, but a bigger rise in the base rate will affect the economy elsewhere. and even with a change of approach, the government's problems remain the same. how to find tens of billions of pounds to help people with their energy bills and make the sums add up. we're certainly looking at a really tough couple of years, we've ...

Rises, huge investment replaced with a spending slowdown. this rethink has largely been driven by the turmoil in the financial markets since the mini—budget was announced. the pound has had a torrid time. the effective cost of government borrowing has soared and the bank of england had to step in with an emergency programme buying up government bonds to stabilise the pension sector. there is a pressing need, then, to restore some confidence and credibility. bank of england governor andrew bailey said he spoke to the new chancellor yesterday and had an immediate meeting of minds. but in a spe...