This is John Batchel, a conversation with colleague Joseph Sternberg in London about the towing and froing of the Labor Party in Parliament,

standing back and looking at Kirstehm of the Prime Minister and saying no to his very modest proposals with Rachel Reeves to reduce the welfare payments to find money somewhere to spend on other matters, including defense and growth.

Joseph Sternberg outlines the problem very straightforwardly here and what the risk is to Mother England.

Here's Joe Sternberg, much more of this tonight, and also about the U.S.

that has not dissimilar problem of raising taxes or grow. Can't do both.

That is because the country is out of money and is not growing economically, and you need to

solve those problems before you can even

talk about expanding welfare or even not reforming welfare. But I think that this agenda is

collapsing because those backbench left-wingers don't want to admit the reality that the government just can't afford this kind of welfare program right now.

And a result of that is that Starmer's authority is much diminished, so is Reeves.

And I think that a lot of investors should be very nervous about what's going to happen to the British economy next, because if they

can't cut obvious things in welfare, the only alternative is to try to raise taxes more, and they're

already pretty high.