21 hours Ago
The Prime Minister said the number used by the Opposition is “about as much use as Liz Truss’s economic planning” as he defended the Government’s handling of the economy. Conservative Party leader Kemi Badenoch said Labour had left the UK economy “fragile just as we face global trade wars” and the “jobs tax” caused by an increase to employer national insurance contributions could result in job losses. Mrs Badenoch went on to ask whether Chancellor Rachel Reeves would either put up taxes or break her fiscal rules, which rule out borrowing to fund day-to-day spending.
Speaking at Prime Minister’s Questions, Mrs Badenoch told the Commons: “From Sunday, Labour’s jobs tax will mean many British businesses face a terrible choice: to cut wages, put up prices or sack their staff. What is the Prime Minister’s advice to those businesses?” Sir Keir, in his reply, said: “We’re clearing up the mess that they left. We’re dealing with global instability, and we recognise the pressures that are bearing down on businesses and individuals and working people, that’s why we’re rolling up our sleeves.
“And yesterday, I was pleased to announce the national living wage increasing by £1,400, that’s a pay rise for millions of workers. “We’ve announced £150 for the warm homes discount, extended now to six million households – that’s one in five families – and wages are going up faster than prices. “And never forget, the party opposite: worst living standards on record, inflation up to 11%, public services left on their knees.
” Mrs Badenoch said the “only mess is the one that he made with his budget”, adding: “They had an emergency budget last week that fixed nothing. He says he is bringing stability, all we see is fragility. “During the election, the Prime Minister also promised that he would not increase taxes on working people, but even the OBR (Office for Budget Responsibility) says that the jobs tax will be passed on to workers.
On average, families will be £3,500 poorer. Why should anyone trust him again?” The Prime Minister replied: “Her fantasy figure is about as much use as Liz Truss’s economic planning, and she turns up every week to carp from the sidelines about decisions we made at the budget. “Yesterday, she held a press conference and she couldn’t say whether she would reverse the decisions that we made at the budget.
” Mrs Badenoch countered: “Out there, they are calling it ‘awful April’. That’s because of decisions he made, because he made promises and broke them. His promises are worthless, people are getting poorer.
“Before the election, he pledged to freeze council tax, instead it is going up everywhere, even in Birmingham where there is 17,000 tonnes of rubbish uncollected on the streets. Does the Prime Minister regret promising the British people he would freeze their council tax when he has so obviously failed?” Sir Keir replied: “I have to ask, if she doesn’t want people to be poorer, why didn’t she resign when she was in government? The last government put up council tax for 12 years in a row. She, I think, was actually minister for council tax, and in the years she was, she put it up.
“And even now the Conservative’s own local government association manifesto said currently their position, page nine, we asked the Government to remove the caps on council tax. So who’s leading the charge?” He said the Government had rejected requests from councils in Hampshire, Slough, and Windsor and Maidenhead to increase tax above the usual limit, adding: “It’s no surprise that council tax is £300 cheaper under Labour councils than under Tory councils.” Sir Keir said he supported Birmingham City Council’s decision to declare a major incident over the ongoing bin strike after Mrs Badenoch joked “normally a state of emergency is called for natural disasters, not Labour ones”.
Mrs Badenoch also said: “His policies have left our economy dangerously fragile. The Chancellor once again left herself no room for manoeuvre. Economic experts, real economists, say she will either have to break her fiscal rules or put up taxes.
Which will it be?” After Sir Keir did not directly answer the question in his reply, Mrs Badenoch said: “The whole House would have heard that he didn’t say whether or not he would keep his fiscal rules. That means it’s either that or putting up taxes..
