Summary

  • Chancellor Kwasi Kwarteng is asked on Sunday with Laura Kuenssberg about the fall of the pound, but says he is focused on growth

  • He defends his decision to cut taxes, saying there is "more to come"

  • Kwarteng admits you can't borrow huge amounts forever, but says the UK is dealing with the massive shocks of Covid and the war in Ukraine

  • Labour leader Sir Keir Starmer tells the show the party would reintroduce the 45p top rate of tax - but backs the government's plan to reduce the basic rate of income tax

  • Starmer says the issue of who pays for a freeze in energy bills is key - but is pushed by Kuenssberg on how long Labour's plan would last

  • Sir Keir was speaking ahead of the Labour Party conference, which is now getting under way in Liverpool

  1. Questions turn to Kwartengpublished at 09:40 British Summer Time 25 September 2022

    Now it's the turn of Chancellor Kwasi Kwarteng to face Kuenssberg's questions.

  2. Panel on Starmer and Friday's mini-budgetpublished at 09:40 British Summer Time 25 September 2022

    The Sunday with Laura Kuenssberg panel is reacting to the interview with Sir Keir Starmer

    Frances O'Grady of the TUC says she believes everyone should pay their fair share on tax - including large corporations - and was pleased to see Labour's leader setting out concrete policies to improve workers' rights.

    Iceland boss Richard Walker says he applauds the aspiration of wanting to generate 100% green electricity but he thinks he didn't hear the detail from Labour's leader about how they will boost generation from renewable sources.

    Economist Gerard Lyons is asked about how the markets have responded to the government's mini-budget - with stocks down and the value of the pound plummeting. He says the issue is that the US dollar is very strong and that the markets are anticipating interest rate rises.

  3. Is Labour heading for government?published at 09:37 British Summer Time 25 September 2022

    Nick Eardley
    Chief political correspondent

    A majority will be hard to achieve given the gains Labour would need in the Red Wall, Scotland and beyond. But behind the scenes, Labour politicians are becoming more confident about their prospects of being the largest party after the next election.

    And we've heard that from Sir Keir this morning. He says what was a hope that Labour could win the election is now turning into a belief that they can form a government.

  4. Starmer's final word: We must push on from herepublished at 09:36 British Summer Time 25 September 2022

    Finally, Starmer is asked what unpopular things he would be prepared to do in leadership. He makes the point that he has already done a series of "tough, unpopular things" to put the Labour Party "back on its feet" and make it "face the public".

    Referring to May's local elections, he says there is now hard evidence that people are not only looking at Labour again, "people are believing in Labour again".

    We have to push on from here, there is more to do and every vote has to be earned, he says. "I'm not complacent," the Labour leader adds.

  5. People like what they hear from Labour - Starmerpublished at 09:29 British Summer Time 25 September 2022

    One of the key questions as this year's Labour conference gets under way is whether the party's becoming more popular.

    Asked about the differences now between the UK's two main parties, Sir Keir says the Conservatives say the future of the country is the rich get richer, but there's nothing for working people.

    But he says that everyone should share in economic growth because they contribute to it.

    Kuenssberg asks if Sir Keir thinks his message is getting across, he says that they did well in the local elections and that people tell him that when they hear about Labour's policies they say they like what they hear.

  6. Starmer: Not just wealthy driving economypublished at 09:28 British Summer Time 25 September 2022

    We need to recognise who grows the economy, the Labour leader says. He says it is working people, not simply those at the top of the economic ladder.

    "I don't believe that only the very wealthy drive the economy," he says.

  7. The tricky issue of taxpublished at 09:27 British Summer Time 25 September 2022

    Nick Eardley
    Chief political correspondent

    Tax is tricky for Labour. The party is critical of huge borrowing. But it doesn't want to go into a general election telling millions of people it is going to put their tax up (by reversing the announcements made by ministers on Friday).

    Sir Keir Starmer is saying he will support the reduction in the basic rate of income tax, paid by everyone earning over £12,570. It will go down by a penny next year with Labour support.

    Labour also agrees with reversing the increases in national insurance contributions.

    But the party is committing to reversing the decision to scrap the additional rate of income tax - the one paid by those on the highest salaries. The government says it will help drive growth - Labour says it's the wrong priority.

  8. Starmer on strikespublished at 09:25 British Summer Time 25 September 2022

    Nick Eardley
    Chief political correspondent

    Some in the Labour Party think the leadership has been far too timid on supporting strikes. The shadow cabinet has been told not to appear on picket lines. In the next few days, here at the conference, there will be criticism of Sir Keir for that position.

    This morning he is adamant he supports the right of people to go on strike. He says he understands why people are taking industrial action when bills are rising and they are struggling to get by.

    But many Labour MPs and many more members think he should go further in supporting strikers.

  9. Starmer: I understand people going on strikepublished at 09:25 British Summer Time 25 September 2022

    Kuenssberg turns the interview to one of the key decisions business are making now - how to pay workers. "Should people expect their pay to rise in line with inflation?" she asks Starmer.

    He says prices are going up, and it's completely understandable that people want their pay to go up too. Labour wants the Low Pay Commission to set the Living Wage with reference to the cost of living, locking in rises for the long term, Starmer says.

    That's a technical answer, Kuenssberg counters, what is a reasonable pay rise she asks, and do you back people going on strike to achieve it?

    Each Trades Union is negotiating the best deal for its members, Starmer says, it is reasonable to expect that wages are set taking account of cost of living and when people go on strike "it is a last resort at end of negotiations". "I can understand [that]," he adds.

  10. Starmer: I would reintroduce 45p top tax ratepublished at 09:24 British Summer Time 25 September 2022
    Breaking

    I would reintroduce the top 45p tax rate, Sir Keir Starmer tells Laura Kuenssberg.

    Following the government's announcement on Friday that they would abolish the higher rate, he says "I would reverse it - be absolutely clear about that".

    But Starmer says he will support the government's reduction in the basic rate of income tax to 19p.

  11. The battle over who pays for energy supportpublished at 09:19 British Summer Time 25 September 2022

    Nick Eardley
    Chief political correspondent

    Keir Starmer is trying to set up a political battle over who pays for energy support.

    He wants the Windfall Tax to be extended. Labour believes this is politically popular and fairer – because big energy companies are making extraordinary profits. You can expect to hear a lot more about this.

    But how long would that actually subsidise bills for? Sir Keir’s plan is for six months – the government’s is for two years, funded by borrowing. What would Labour do after that? The line this morning is they'd have to revisit that after the winter.

  12. Starmer admits there'll still be some fossil fuel use come 2030published at 09:17 British Summer Time 25 September 2022

    We need to double onshore wind, triple solar and quadruple offshore wind to achieve Labour's ambition of generating 100% renewable electricity, Starmer tells Laura Kuenssberg.

    Prize is lower prices in the longer run, on the bills they pay, this is not a short-term fix but a mission for the long-term.

    It's going to be difficult to do, Starmer admits, but says the government over 12 years hasn't done enough.

    But he's asked what happens if the wind doesn't blow and the sun doesn't shine? Starmer admits there will be a transition from fossil fuels - and may still be there for a fall back come 2030.

  13. Starmer: We need long term fix on energy pricespublished at 09:15 British Summer Time 25 September 2022

    Keir Starmer is pressed on why Labour is only offering to freeze energy prices for six months.

    We need a fix for this winter, but we need to fix the longer term issues, he tells the programme.

    "We'll have to see in April what the situation is," Starmer says.

  14. Starmer: Who will pay for energy bills freeze?published at 09:13 British Summer Time 25 September 2022

    Keir Starmer

    The Labour leader is asked directly whether Labour would freeze energy prices for two years, like the government. He says Labour's position is to freeze bills for six months. The key issue is who is going to pay for the freeze, he says.

  15. Starmer: Economy is in a very fragile situationpublished at 09:13 British Summer Time 25 September 2022

    Keir Starmer

    Sir Keir Starmer is asked by Laura Kuenssberg about the state of the economy and the pressure on households.

    "We're in a very serious situation" and face "a very difficult winter", Starmer says. "It's a very fragile situation for our economy", he adds.

    He then puts the blame for the economic situation on the government, saying it's on the back of 12 years of Tory failure.

    Wages haven't really moved because the Tories have taken then wrong decision, Starmer says.

    He brands Friday's tax cuts as wrong-headed - and that trickle-down economics doesn't work.

  16. What do the panel want to hear today?published at 09:07 British Summer Time 25 September 2022

    Panel

    There is so much in flux, Kuenssberg says, we just can't talk about everything this morning. So she steers the chat to three big issues: How the government gets its cash, where it spends it and the effect that has on all of us.

    Richard Walker, Iceland supermarkets boss, says he sees the effects every day in customer behaviour in stores, many people are struggling

    Economist Gerard Lyons says he believes in the new government's approach, it's not a gamble he says - and tax cuts are only a small part of the package

    But Frances O'Grady, the outgoing TUC chief, says the government has no real plan, other than putting the wealthy first. She wants to hear from Keir Starmer that Labour is going to fight for working people.

  17. Show startspublished at 09:00 British Summer Time 25 September 2022

    Sunday with Laura Kuenssberg has started.

    We'll hear from today's panel, before Kuenssberg quizzes Labour's Sir Keir Starmer and then Chancellor Kawsi Kwarteng.

    Stick with us for updates. You can also watch the show live by clicking the play button at the top of the page.

  18. Going livepublished at 08:57 British Summer Time 25 September 2022

    We're just a couple of minutes from the start of today's Sunday with Laura Kuenssberg - it'll be live on BBC One and is streamed on this page if you click the play button above.

    Labour leader Keir Starmer is first up, speaking from Liverpool where the party is holding its annual conference. He'll face questions on Labour’s plans to make the UK’s electricity system carbon-free by 2030 - and what he wants to do if the party wins power.

    And we'll hear from Chancellor Kwasi Kwarteng, who joins us from London to discuss Friday's mini-Budget, which is still dominating headlines.

  19. Be bold, union leader tells Starmerpublished at 08:49 British Summer Time 25 September 2022

    Sharon GrahamImage source, PA Media

    We'll be hearing from Labour leader Sir Keir Starmer shortly on Sunday with Laura Kuenssberg - ahead of the start of this year's Labour conference this morning.

    According to one union chief, the party's leader needs to "be bolder" if Labour is to win the next general election.

    Sharon Graham, Unite's general secretary, told the BBC she believes that Sir Keir can't "stand still" in order to win power.

    She said the Labour leader "made a mistake" by advising his most senior MPs to stay away from picket lines.

    And she has called for him to "come out for workers in a very strong way".

  20. Starmer plans to turn UK into 'green superpower'published at 08:45 British Summer Time 25 September 2022

    Ahead of Labour's conference opening in Liverpool this morning, leader Sir Keir Starmer has been laying out his party's to make the UK the first major economy to generate 100% of its electricity from sustainable and renewable sources.

    The idea is that a Labour government would quadruple offshore wind power, triple solar and double onshore wind by the end of this decade.

    While the Conservatives have committed to ensuring the UK has zero-carbon electricity by 2035, Prime Minister Liz Truss also ended the ban on fracking rocks for shale gas and expanded licences for oil and gas drilling in the North Sea.

    Labour believes it can win votes by backing green energy and also grow the economy.

    You can also read here how Starmer used "colourful language" at a conference fringe event on Saturday when he was giving his reaction to Friday's mini-budget by the government.

    WindfarmImage source, PA