New: Peston

The programme opens with the founder of AI company Anthropic warning that his products could wipe out humanity and asking governments to regulate, while Donald Trump dismissed his intelligence and claimed he alone could prevent a malevolent AI superintelligence. The focus then turns to the rising cost of living: the US Federal Reserve raised interest rates, UK mortgage rates are nearing 6%, energy analysts forecast the Ofgem price cap could surge by 25% in January, and the Chancellor's fiscal headroom has collapsed to about £5bn, leaving a £15bn gap to fill in the budget.

Business Secretary Jonny Reynolds was interviewed: he rejected the idea that the government is seen as tax-and-spend, said the budget date was set early to curb speculation, and played down concerns about energy shortages and oil price rises from the war in Iran, urging people not to panic. He indicated the government would soften EV manufacturing targets, citing investments from McLaren and Nissan, and defended the government's AI approach, noting the King's summit. On EU associate membership for Canada, he said he needed to know what that status meant before commenting.

Reform UK received two £36m donations from crypto billionaires, and legislation to restrict foreign donors may be retrospective. In an interview, Robert Jenrick defended the donations, said the party would get the money one way or another, and outlined plans to raise the income tax personal allowance to £15,000, funded by welfare savings, while vowing to resign if he couldn't deliver. Panelists questioned the source of the donations and the risks of big money in politics. The programme ended with a segment matching word clouds to party leaders' public perceptions, and a Lib Dem spokesperson said their conference would be 'gloves off' against Reform.