Wednesday briefing: The chancellor has an unexpected windfall – how will he use it in today’s budget?

In today’s newsletter: Jeremy Hunt’s autumn statement was all about repairing the damage of the Truss government. What will his first budget entail?

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Good morning. When chancellor Jeremy Hunt gave his autumn statement last year, he was attempting life support on a British economy spiralling into crisis because of the disaster of Liz Truss and Kwasi Kwarteng’s policy agenda. When he delivers his budget in the House of Commons today, he will present a more optimistic picture – with caveats: that he will push for growth after stabilising the public finances, but has to be restrained if he is to finish the job.

Hunt has enjoyed much lower than expected energy prices, and greater confidence in the UK’s ability to pay its debts that has reduced the cost of financing them. Last night, the Guardian exclusively reported that among the big beneficiaries of that situation are parents of one- and two-year-olds, who will get an extra 30 hours of free childcare a week.

Ukraine | A Russian fighter has collided with a US Reaper drone, forcing it down into the Black Sea, in what US forces called an “unsafe and unprofessional” intercept. After the incident – the first such collision since the invasion of Ukraine – Russia said it was not seeking confrontation with the US. Read Jonathan Yerushalmy’s explainer on the drone and Julian Borger’s analysis.

BBC | Leaked messages seen by the Guardian show that BBC editors asked their journalists to avoid using the word “lockdown” at the start of the pandemic and to be more critical of Labour after pressure from Downing Street. One insider said headlines online had been determined by No 10 “on a very regular basis”.

Asylum | A judge has ruled that a group of asylum seekers threatened with removal to Rwanda can bring a legal challenge against the Home Office to appeal against the controversial policy. The ten people bringing the challenge claim there has been a failure to consider risks of deportation.

UK news | A 22-year-old woman has been jailed for eight and a half years after she was found guilty of lying about being raped and trafficked by an Asian grooming gang. Eleanor Williams also made a series of false rape claims against other men.

Trump | Donald Trump has said that Queen Elizabeth II, Diana, Princess of Wales, Richard Nixon, Oprah Winfrey and Hillary Clinton all “kissed my ass” in letters they wrote to him. He made the comment as he promotes a forthcoming book of his correspondence.