Joe Robertson (Isle of Wight East) (Con)
The Secretary of State for Scotland (Ian Murray)
This is the first opportunity I have had to apologise to the House for using an inaccurate figure on previous occasions. I had told the House that the Scottish Government had received a record settlement of £47.7 billion this year, but Treasury figures show that the block grant for this year is actually £50 billion. That is the highest ever settlement in the history of devolution, with bells on. That £50 billion is more money for schools, hospitals, policing and housing; it is an end to austerity. That is the Barnett formula in action—the formula that both the SNP and Reform have announced this week that they want to scrap.
Oil and gas will remain a crucial component of our energy mix for decades to come. Our workforce is the most talented in the world, and we are committed to ensuring its future. We have consulted on support for the energy transition in the North sea, including on these issues, and the Secretary of State for Energy Security and Net Zero will respond to that consultation shortly. Economic growth in the UK in the first quarter of the year beat all forecasts, reaching 0.7%—the highest in the G7. Growth in Scotland is more sluggish than in the rest of the UK; if Scotland’s economy had grown at even the low rate at which it grew under the Tories, it would be £10 billion larger. That makes it even more astonishing that the Opposition parties oppose the EU, US and India trade deals.
Joe Robertson
Ministers across various Departments have repeatedly said that oil and gas is here to stay for many years. Issuing new North sea oil and gas licences would support tens of thousands of jobs, return millions in tax revenue to the Treasury and help to grow the Scottish economy. Why are the Government refusing to issue any new licences?
Ian Murray
A consultation on Rosebank and Jackdaw is concluding, and the Secretary of State for Energy Security and Net Zero will report on it in due course. There is also the North sea transition consultation, which has concluded, as I mentioned earlier, and which will take into account all those issues. It will be published in due course.
Dr Scott Arthur (Edinburgh South West) (Lab)
Labour’s windfall tax on North sea energy profits is designed to make us less reliant on people like Vladimir Putin. When I was campaigning in Hamilton last week, voters asked me why the SNP, the Tories and Reform were so against our windfall tax. I could not explain. Can the Secretary of State?
Ian Murray
I am grateful to my hon. Friend for the question. What astonishes me more than anything is that the shadow Secretary of State for Scotland was the Energy Minister when the energy profits levy was brought in.
Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
indicated dissent.
Ian Murray
The hon. Gentleman shakes his head, but he was the Energy Minister. Indeed, as my hon. Friend the Member for Edinburgh South West (Dr Arthur) may remember, the leader of the SNP in Westminster, the right hon. Member for Aberdeen South (Stephen Flynn), did not support the levy, then did, then did not, and then put in the SNP’s manifesto that it would be extended to every single Scottish industry. I am at a loss, as is my hon. Friend.
Andrew Bowie
I start by congratulating the famous Aberdeen football club—the only team in red I like to see winning—and the manager Jimmy Thelin, the players and all the coaching staff for winning their eighth Scottish cup a week and a half ago, qualifying for the Europa league in the process. The pride and jubilation on the streets of Aberdeen last Sunday show just how much the club means to the north-east of Scotland. Even more important to the north-east than Aberdeen football club is the oil and gas industry. What does the Secretary of State make of the report published by Robert Gordon University this week that warns of 400 job losses every two weeks in the North sea?
Ian Murray
I join the shadow Secretary of State in congratulating—through gritted teeth—Aberdeen on winning the Scottish cup. Speaking as a big Hearts fan, it is always nice to see the smaller clubs doing well in national competitions. [Interruption.] I do not know whether I have lost or won the House there, Mr Speaker.
We have this discussion across the Dispatch Box a lot during questions. We are aiming for clean energy by 2030, and setting up GB Energy in Aberdeen—something that the shadow Secretary of State voted against, of course—to ensure a transition. We have a declining and mature base, and we need to create the jobs of the future and the future industries in Scotland. He should support that, rather than voting against it. The EPL was brought in by his Government.
Andrew Bowie
To be absolutely clear, there is no transition under way. It is not the Conservative party saying that; it is the Robert Gordon University Energy Transition Institute. These mythical jobs in renewable energy simply do not exist yet. There is a slowdown in offshore wind deployment and a steep decline in offshore oil and gas activity as a direct result of Labour’s ideological policies—400 job losses every two weeks, a steep decline in skilled roles, nowhere for supply chain jobs to go but overseas, and a decline in the workforce of 25%. Why? Because of massive investor uncertainty due to negative sentiment around oil and gas as a result of the ban on licences and the EPL extension. When will the Secretary of State and the Scottish Labour party grow a backbone, stand up to the Secretary of State for Energy Security and Net Zero, and stand up for Scotland and Scottish workers?
Ian Murray
I do not know whether the hon. Member agrees with net zero anymore—certainly, his party leader does not seem to believe in it—but that is where the jobs are for the future. There is a declining base in the North sea. Companies are making that transition already, and we need to ensure pace; that is the big issue. We need regulatory change and investment, and GB Energy is there to ensure that. The National Wealth Fund is making investments as well. We have seen £600 million invested in Scottish Power’s infrastructure. Things are starting to happen, but we need cross-party support on this.
Martin Rhodes (Glasgow North) (Lab)
The Parliamentary Under-Secretary of State for Scotland (Kirsty McNeill)
The National Wealth Fund has made its first Scottish investment in the Glasgow city region, which is one of four areas across the UK selected for a strategic partnership with the fund to unlock private investment opportunities. The Secretary of State meets the Deputy First Minister regularly to discuss economic growth, which is this Government’s No.1 priority.
Martin Rhodes
Does the Minister agree that in recent years, we have witnessed the benefits of further devolving power to cities and city regions, which have created tailored policies to better serve communities? In Holyrood, however, devolution appears to have stalled, and there is little appetite to pass power down to our cities, towns and communities. Does she agree that the recent Glasgow city region devolution proposal makes a compelling case for further devolution to that city region?
Kirsty McNeill
It does, but I am afraid that the SNP seems determined to hoard powers and funding, rather than passing them to communities. There is no better example of that than the Labour-run council in South Lanarkshire proposing £8 million for Hamilton town centre, only for the SNP to vote against that. That is why, tomorrow, voters in Hamilton, Larkhall and Stonehouse should back a real local champion, Labour’s Davy Russell.
Sam Rushworth (Bishop Auckland) (Lab)
The Parliamentary Under-Secretary of State for Scotland (Kirsty McNeill)
I wish to thank veterans for their service, and their families for the sacrifices that enabled it. As it is Volunteers Week, may I place on record my thanks and those of the whole House to the volunteers who do so much for our military charities? I welcome the announcement of the new programme, Valour, which is giving veterans across the UK easier access to essential care and support. The Minister for Veterans and People is leading work across the UK Government to ensure that veterans and their families have sufficient access to health services, housing, employment and other forms of support.
Sam Rushworth
I regularly speak to veterans in Bishop Auckland and, although they mostly reflect positively on their military service, they often mention the need to improve homes for forces families. Will the Minister welcome this week’s announcement that Labour will improve 3,000 forces family homes in Scotland as part of a £1.5 billion investment, and does the Minister agree that all those who serve our forces in this United Kingdom should have a home fit for a hero?
Kirsty McNeill
I am pleased to join my hon. Friend in welcoming the strategic defence review, which was launched by the Prime Minister in Scotland on Monday and included more than £400 million of investment in military accommodation in Scotland. I am sure that, like me, my hon. Friend will be appalled that the First Minister snubbed a confidential briefing on that strategic defence review to go campaigning, during a by-election campaign, at a charity whose funding he had slashed.
Emma Foody
A local charity in my area supports women veterans. Recently, it was supporting a woman who was rehomed in general-purpose supported accommodation for veterans in Scotland. The accommodation was entirely unsuitable for her as a survivor of sexual violence, and it led to her being subjected to a further sexual assault by a man who was also housed there. Can the Minister assure me that her work with the Ministry of Defence will ensure appropriate support for women veterans?
Kirsty McNeill
First, I am truly sorry to hear about the experiences of my hon. Friend’s constituent. Support services and accommodation across the UK must reflect the needs of all our veterans, including women. That includes the provision of safe, suitable and appropriate housing. If she writes to me, I shall ask the Minister for Veterans and People to get in touch with her.
John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)
The previous Conservative Government had a dedicated Minister of State for veterans sitting at the Cabinet table, but that job was taken away by the new Administration. How are the interests of veterans in Scotland being raised in Cabinet under the new Government?
Kirsty McNeill
The Minister for Veterans and People is doing sterling work. His advocacy has helped to ensure that Labour will improve 3,000 forces family homes. We are making a £1.5 billion investment across the whole UK. I am sure that when the strategic defence review was launched, in Scotland and then in this Chamber, the hon. Member was full of admiration for what the Minister is doing for veterans and those who currently serve us with such distinction.
Josh Babarinde (Eastbourne) (LD)
Scotland-born veteran Betty Gallagher joined the Army when she was 17, but eight months later she was dishonourably discharged for what were referred to as “lesbian tendencies”. Today, Betty runs the thriving BourneOut LGBT hub in Eastbourne and founded Eastbourne Pride. Will the Minister thank Betty for her service to our country, and advise on how she and other veterans can seek justice for the discrimination that they were subjected to?
Kirsty McNeill
I am delighted to join the hon. Gentleman in thanking Betty for all her efforts. He will know that, in the review, work has been undertaken on justice for LGBT people in our armed forces, and we are pleased to commend that to the House.
Christine Jardine (Edinburgh West) (LD)
I associate myself with the remarks of the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie) about the success of Aberdeen football club. The strategic defence review makes it clear that housing must be a priority, and that the money from the sale of housing must be reinvested, but veterans continually come to me who have been discharged into homelessness. Can the Minister reassure us that we will ensure that houses that are sold or redeveloped are available to veterans’ families?
Kirsty McNeill
I am very pleased to offer the hon. Lady that reassurance.
Stephen Gethins (Arbroath and Broughty Ferry) (SNP)
I join colleagues in congratulating Aberdeen FC, despite the impact of their victory on my beloved Dundee United. I also congratulate Arbroath FC on securing the Scottish league one championship title. The Scottish Government have reinstated the winter fuel payment for up to 88,000 pension-age veterans in Scotland, but the Prime Minister has said that it was right to slash the winter fuel payment. Was the Prime Minister right to slash it?
Kirsty McNeill
The hon. Member will be perfectly aware—as, indeed, everyone in the House will be—that questions about the winter fuel payment in Scotland are devolved to the Scottish Government. Decisions made in Scotland are the responsibility of the Scottish Government, but I am pleased to reiterate to the House what the Prime Minister and the Chancellor have said. This was a difficult decision, and now that we have a little more breathing space, we are very pleased to make changes to help more pensioners.
Stephen Gethins
I see that we are not going to get a straight answer out of the Minister, just as the people in Hamilton did not get a straight answer out of Labour’s candidate. That will be why Labour is sinking without a trace. Let me put it this way: does the Minister think that the Prime Minister was right to slash the winter fuel payment for up to 1 million veterans across the UK?
Kirsty McNeill
When this Government took office, we inherited a £22 billion black hole, which required emergency action. We said at the time that our decision on the winter fuel payment was a difficult one that we did not want to make, and we are very pleased to be in a position to reconsider it.
Wendy Chamberlain (North East Fife) (LD)
The Parliamentary Under-Secretary of State for Scotland (Kirsty McNeill)
Scotland’s universities are of course world-class, but I am very concerned about the financial difficulties faced by several of them. As the hon. Lady will know, higher education is a devolved matter, and Scotland’s universities, their staff and their students all need a Scottish Government with a proper plan to turn this crisis around.
Wendy Chamberlain
International students are hugely valuable, not just when it comes to sharing cultures and knowledge, but to our universities and local economies. In North East Fife in 2021-22, that value was estimated at £159 million. What discussions has the Minister had with the Scottish Government about the economic impact of the reforms relating to international students in the immigration White Paper? Can she update the House on whether an economic impact assessment has taken place?
Kirsty McNeill
We are in ongoing discussions with the Scottish Government and Scottish universities, but I want to be absolutely definitive about this, because there has been some confusion in the press. Education policy is devolved, and the international student levy will not apply in Scotland unless the Scottish Government decide to introduce it. I met Universities Scotland just this week and made that very clear, and I am pleased to do so again today.
Torcuil Crichton (Na h-Eileanan an Iar) (Lab)
The university sector is important for growing the Scottish economy, but so is tourism. Can the Minister enlighten me about the jet safari trips from Clacton to Scotland that have taken place, allowing former bankers to patronise the locals, miss the big picture and be back in England for a pint of warm beer by lunchtime?
Kirsty McNeill
I think I did hear something about the hon. Member for Clacton (Nigel Farage) getting lost in Hamilton this weekend, and sculking behind the bins before he was sent packing by the good people of South Lanarkshire. Of course, the only local candidate in that by-election is Labour’s Davy Russell, who will stand up for his community against the division peddled by both the SNP and Reform.
Sir Desmond Swayne (New Forest West) (Con)
The Secretary of State for Scotland (Ian Murray)
The right hon. Gentleman will have heard me remind the House on a number of occasions that John Swinney said that education was the “defining mission” of his SNP Government, but earlier this year we got the news that standards of attainment in Scotland’s schools are declining across the board and, shamefully, outcomes for young working-class kids are getting worse. The attainment gap is widening. The Scottish Government have failed a generation; they cannot be allowed a third decade in power to continue that damage. Scotland’s teachers, parents and pupils all deserve better standards in our schools.
Sir Desmond Swayne
What has caused the system, which was once the benchmark for all others, to become such a disappointment?
Ian Murray
There is a simple answer to that question: the SNP Scottish Government.
Richard Baker (Glenrothes and Mid Fife) (Lab)
When my right hon. Friend discusses with SNP Ministers, through announcements made this week, the huge employment opportunities that this Government have created for young people in Scotland, will he impress on them the urgent need to finally tackle the persistent—and in some areas widening—attainment gap faced by pupils from poorer backgrounds, not only in Fife but in South Lanarkshire? These concerns are often raised by residents of Hamilton, Larkhall and Stonehouse.
Ian Murray
The House may not know that last year, 1,351 pupils left high school in Scotland without a single qualification to their name, and one in six Scots is not in education, employment or training. That is the legacy of the SNP Scottish Government. What have they done about jobs and growth? They are against the defence industry and against the trade deals with the EU, India and the US. They are against young Scots in Scotland.
Alex Easton (North Down) (Ind)
The Parliamentary Under-Secretary of State for Scotland (Kirsty McNeill)
Our recent trade deals with the United States, India and the EU will improve access to vital markets for businesses in both Scotland and Northern Ireland. These are deals with the most populous country in the world, the richest country in the world and our most important trading partner. I recognise the importance of economic co-operation between Northern Ireland and Scotland. Indeed, earlier this week I met the hon. Member for South Antrim (Robin Swann) and a local business to discuss exactly this issue.
Alex Easton
Will the Minister set up a meeting with the Secretary of State for Northern Ireland to consider creating a trade fair focusing on trade between Northern Ireland businesses and Scottish businesses? That would create networks, would possibly create jobs, and would be great for the economy in both Northern Ireland and Scotland. It would certainly go down well with businesses in North Down and right across the UK.
Kirsty McNeill
I would be delighted to see more trade between Scotland and Northern Ireland. I will happily meet colleagues in the Northern Ireland Office to explore that.
Alan Gemmell (Central Ayrshire) (Lab)
Scotland and Northern Ireland are set to benefit from the Government’s trio of trade deals. Does the Minister agree that it is astonishing that the SNP stands with the Tories and Reform against an EU trade deal that is good for Scotland, and that after almost 20 years in government, the SNP has no plan for Scotland? One in six Scots is on an NHS waiting list; Ayrshire ferries are late and are costing £1 billion; one in six Scots is not in education, employment or training; and the SNP has no plan for the defence of our Union.
Kirsty McNeill
I agree with my hon. Friend that it is astonishing that we see ranged on the Opposition Benches numerous people who have talked down the potential of Scotland’s exporters, and who have said that there is no benefit to be had from these deals for a Scottish business sector that is desperate to grow and export, and is delighted with the three trade deals, which will make such a difference to them.
Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
For years, there has been under-investment in Scotland’s roads. The A9, A96, A77 and A75 are all in dire need of upgrading or dualling; work on all of them has been delayed or even cancelled by the SNP. In the spirit of improving economic co-operation between the nations of the UK, and specifically between Scotland and Northern Ireland, and given how vital the A77 and A75 are to individuals, businesses and hauliers, will the Minister seek the ringfencing of the Barnett consequentials that will arise as a result of this morning’s announcement by the Chancellor, so that the SNP must spend that money on improving roads in Scotland?
Kirsty McNeill
We are in conversation with all the relevant parties, but yes, we would like an increase in trade, and in the transport infrastructure that supports it.
Dr Lauren Sullivan (Gravesham) (Lab)
Becky Gittins (Clwyd East) (Lab)
The Secretary of State for Scotland (Ian Murray)
As a former publican, I know that these are hard times for businesses on the high street. We are investing £200 million in our plans for neighbourhoods in Scotland, with £20 million-worth of funding for towns including Irvine, Greenock, Kilmarnock, Coatbridge, Clydebank, Elgin, Dumfries, Arbroath, Peterhead and Kirkwall. Of course, it would help if the Scottish Government extended business rates relief to retail and leisure businesses, as has happened south of the border. Many businesses in Scotland are asking where that money went.
Dr Sullivan
Does the Secretary of State agree that it was astonishing that the SNP voted against the £8 million to regenerate Hamilton town centre and that only Labour’s Davy Russell will stand up for local people, jobs and services?
Ian Murray
I have brought glasses to see if I can find an ounce of credibility in the SNP’s candidate in Hamilton for voting against that £8 million. The SNP candidate is a councillor from Cambuslang who stood for election twice in Rutherglen, sought selection in Shettleston and then voted against £8 million for the Hamilton town centre before seeking selection there. In Scotland, we are allowed to elect councillors with a single transferable vote; she appears to be the SNP’s single transferable councillor.
Becky Gittins
A proud industrial heritage, a strong community spirit and an overwhelming feeling of being let down and under-invested in by the previous Conservative Government unite towns in my constituency with those across Scotland, including those in Hamilton, Larkhall and Stonehouse. In Wales, Labour’s transforming towns programme has invested in Holywell in my constituency. Will the Secretary of State join me in calling on the SNP to U-turn and finally back Labour’s plans to invest in Hamilton town centre?
Ian Murray
What a wonderful representative my hon. Friend is for her constituency. I could not agree more. The SNP candidate is yet to explain to voters in Hamilton, Larkhall and Stonehouse why she voted against the much needed £8 million investment in Hamilton town centre. I hope she will explain before tomorrow’s vote. If she does not, everyone should back Labour’s Davy Russell.
Stephen Flynn (Aberdeen South) (SNP)
I will tell the Secretary of State what is bad for town centres, and that is job losses. On this Government’s watch, Robert Gordon University has been forced to publish a report that outlines that there could be 400 job losses in the North sea every two weeks. That is a Grangemouth-type shutdown every two weeks. How many jobs have to be lost in my constituency for his Government to act?
Ian Murray
The leader of the SNP in this House voted against the setting up of Great British Energy in his constituency, which is creating jobs in Scotland. He is against the EU trade deal, he is against the US trade deal, he is against the India trade deal; he is bad for jobs and should go.
Harriet Cross (Gordon and Buchan) (Con)
Towns and villages across north-east Scotland, such as Aberdeen, and Inverurie, Kintore and Ellon in my constituency, will all need regenerating in future if the Secretary of State’s Government keep decimating the oil and gas sector. The best thing his Government can do for the north-east of Scotland is allow new licences and cut the increase to the energy profits levy. Will he commit to that? Otherwise, more and more money will need to be put into north-east Scotland to regenerate our towns in future.
Ian Murray
This Government are putting money into Scottish towns to regenerate them. As we keep saying from this Dispatch Box, oil and gas will be with us for decades to come. The industry itself is making the transition, and we have to make sure that it happens, and happens for the benefit of workers in the north-east and all over Scotland. I am not even sure, however, that it is a transition that the hon. Lady and the Conservative party now back.
Anneliese Midgley (Knowsley) (Lab)
The Secretary of State for Scotland (Ian Murray)
Following the spring statement, it was confirmed that the block grant for Scotland this year was a record £50 billion. That was no thanks to the SNP and Reform, which both voted against that massive funding boost for Scotland and want to scrap the Barnett formula that delivered it. Despite that record funding, the SNP still has no plan to get waiting lists down, when one in six Scots are stuck on an NHS waiting list and the educational attainment gap is growing by the day.
Anneliese Midgley
Despite the record funding provided by the Labour Government, the SNP plans to downgrade the neonatal intensive care unit at university hospital Wishaw, which could force the families of sick babies to travel as far as Aberdeen for treatment and support. Does the Secretary of State agree that the SNP cut should be reversed?
Ian Murray
As the father of an 18-week-old daughter, I am absolutely horrified by those proposals and I know that they will be causing anxiety for families across Lanarkshire. That is why it is so disappointing to see the SNP candidate in the Hamilton by-election back the plans to downgrade the Wishaw neonatal unit. The way to send a message to the SNP that that is unacceptable is to vote for Davy Russell tomorrow in the Hamilton, Larkhall and Stonehouse by-election.
David Smith (North Northumberland) (Lab)
The Parliamentary Under-Secretary of State for Scotland (Kirsty McNeill)
The Chancellor’s autumn Budget delivered the biggest settlement in the history of devolution for the Scottish Government—£50 billion. I want to see that cash reach the frontline services that have suffered years of cuts under the SNP. That record settlement is possible only because of the Barnett formula—something opposed not only by the Scottish nationalists, but by the hon. Member for Clacton (Nigel Farage), whose Reform circus was sent packing from Hamilton this week.
David Smith
The largest ever devolution settlement—£50 billion—is great news for Scotland and its local authorities, but under the SNP there are 840,000 cases on NHS waiting lists. This affects people in my constituency in North Northumberland, many of whom use cross-border healthcare and dental services, so does the Minister agree that the SNP needs to sort itself out and start delivering change to the NHS, as Labour is doing in England?
Kirsty McNeill
I could not agree more. In England, waiting lists have fallen since Labour came to office less than a year ago, while in Scotland they continue to rise, and we now see nearly one in six Scots waiting for treatment. John Swinney has, in total desperation, announced that the SNP Government’s fifth NHS recovery plan in less than four years, but the reality is that patients, staff and we all know that Scotland desperately needs a new direction.
Mr Speaker
Before we start Prime Minister’s questions, I would like to welcome to the Gallery the Speaker of Bahrain and his delegation: a big welcome to you.
Clive Efford (Eltham and Chislehurst) (Lab)
The Prime Minister (Keir Starmer)
Today we are investing £15.6 billion in the transport infrastructure of the north and of the midlands. We are decisively turning the page on a failed economic model of low investment, and we are backing the talent and prospects of the whole country. Over the coming weeks we will set out plans for further investment and renewal.
Our strategic defence review shows that this Government will never gamble with our national security. Through the biggest sustained funding increase since the cold war, we will transform our defence, strengthen our nation and invest in jobs and industry across the United Kingdom.
This morning I had meetings with ministerial colleagues and others. In addition to my duties in this House, I shall have further such meetings later today.
Clive Efford
We all remember the glorious summer of 2012 when the world’s greatest athletes came to London to compete in the Olympics and the Paralympics. It showcased Britain at its best, not just in track and field, but as a country that can host major cultural and sporting events. My right hon. and learned Friend has been written to by over 200 of our top athletes—some of them are members of Cambridge Harriers, who meet in my constituency—and they are calling for the Government to support the bid for the 2029 world athletics championships to take place in London. If successful, it will lift the whole nation—[Interruption.] If successful, it will lift the whole nation, inspire a generation of new athletes, showcase Britain on the world stage and put £400 million into our economy. What’s not to like?
The Prime Minister
One of the greatest achievements of the last Labour Government was the 2012 Olympics in London, and we all remember it—[Interruption.] Given that response, can I pay tribute to the extraordinary contribution of Tessa Jowell to those games? I agree that there have been huge economic benefits from hosting major sporting events as well as an important legacy.
Mrs Kemi Badenoch (North West Essex) (Con)
Three weeks ago, the winter fuel policy was set in stone. Two weeks ago, the Prime Minister U-turned. Today, the Chancellor is rushing her plans because she just realised when winter is. So, on the behalf of the pensioners who want to know, can the Prime Minister be clear with us here and now: how many of the 10 million people who lost their winter fuel payments will get it back?
The Prime Minister
Well, I am glad to see the right hon. Lady is catching up with what happened two weeks ago. At the Budget, we took the right decision to stabilise the economy because of the £22 billion black hole that the Conservatives left. We took the right decisions and the growth figures are up, interest rates have been cut, and we have free trade deals. So we will look again, as I said two weeks ago, at the eligibility for winter fuel and of course we will set out how we pay for it, but because we have stabilised the economy, we on this side are committed to the triple lock, and that increased pensions by over £400 this April. The Conservatives say the triple lock is unsustainable. I think her position is that she wants to means-test it.
Mrs Badenoch
The Prime Minister clearly has selective amnesia. I asked him three questions about the winter fuel payment two weeks ago and he was floundering. The fact is he has not answered the question I asked him; he cannot tell us who will get the payments. All we see is U-turn after U-turn—his head must be spinning. Will he apologise now, including to his own Back Benchers, for taking the payments away in the first place? Can he tell us how he will pay for this?
The Prime Minister
We took the right decisions at the Budget because we needed to stabilise the economy. The right hon. Lady needs to apologise for the fact that the Conservatives left the economy in a terrible state, with a mini-Budget that blew up the economy, and we were left with a £22 billion black hole. When she gets up, perhaps she should apologise for that.
Mrs Badenoch
The Office for Budget Responsibility has said there was no such black hole. The Prime Minister has just given away £30 billion for the Chagos islands—that is his black hole. He has not stabilised the economy. Borrowing prices are higher now than at any time in the last Parliament. He has not stabilised the economy. He has no clear answers on what he is doing. It is just chaos, chaos, chaos. He keeps making announcements with no detail.
Let’s move to another area of confusion. Can we get a simple answer: will the Government keep the two-child benefit cap?
The Prime Minister
I am absolutely determined that we will drive down child poverty. That is one of the proudest things of the last Labour Government. That is why we have a taskforce and that is why we have a strategy, and we will set out that strategy in due course. But we drive child poverty down; under the Conservatives, poverty always goes up.
Mrs Badenoch
I did not ask the Prime Minister about a taskforce. I asked him if he will keep the two-child benefit cap, and he does not know—it is just chaos and uncertainty. He has no details. He is briefing something and causing a lot of confusion to the people out there. On that two-child benefit cap, I tell him this: I believe in family, but I also believe in fairness. On the Conservative side of the House, we believe that people on benefits should have to make the same choices on having children as everyone else. What does the Prime Minister believe?
The Prime Minister
I believe profoundly in driving down poverty and child poverty. That is why we will put a strategy in place. But the right hon. Lady talks about heads spinning. There is only one leader who been praised this week by the Russian embassy. If she carries on echoing Kremlin talking points like this, Reform will be sending her an application form for membership.
Mrs Badenoch
I asked the Prime Minister what he believes in. He had to look in his folder to find the answer. His MPs behind him know what they believe in—he does not know. He has been in government for nearly a year. It will only get harder and harder. The canned, forced laughter, the planted questions—all that will disappear because at every single point things are getting worse. He has to ask Morgan McSweeney what it is that he believes in, but the fact is that chaos is being felt in the economy. The Chancellor said she would not be coming back with new tax rises, but she will have to pay for all these U-turns she is announcing out there, won’t she?
The Prime Minister
I am going to look in my folder because here I have the quote that the right hon. Lady said on Sky News—[Interruption.] I will read it, thank you. [Laughter.] It is what the Leader of the Opposition said—it is worth listening to. She said:
“Israel is fighting a proxy war on behalf of the UK, just like Ukraine is on behalf of Western Europe against Russia.”
Well, that was certainly noticed in the Russian embassy because they put out a statement saying that the Leader of the Opposition has
“finally called a spade a spade”.
It said:
“Ukraine is indeed fighting a proxy war against Russia on behalf of Western interests”.
It went on to say:
“The illegitimate Kyiv regime, created, financed and armed by the West, has been at it since 2014.”
So they endorsed—[Interruption.] They want the detail; I have given the quote. That is what Russia said in response. She asked me what I believe in. I believe in standing by Ukraine and calling out Russia as the aggressor.
Mrs Badenoch
It was our Government that stood behind Ukraine and led the way in Europe. Everything the Prime Minister has said this afternoon is total nonsense, obfuscation, and avoiding the question. He does not have any answers. It is disgraceful.
I asked the Prime Minister about the two-child benefit cap; he is talking about the Kremlin. He is saying everything he can to distract from the mess he is making of our economy. The OECD has downgraded growth for the next two years. He cannot rule out tax rises. Police chiefs are saying that they do not have the money they need to keep the public safe, just as he is releasing more criminals on to the streets. His Cabinet are squabbling with each other, and they said that they have lost control of the borders, but he still managed to find £30 billion to give away the Chagos islands. This is total and utter chaos. Two weeks ago, he was crowing about his historic trade deal and how he got zero per cent tariffs on steel. Now the steel industry will face 25% tariffs unless he does exactly what President Trump tells him to. It is chaos, chaos, chaos—and isn’t the root of the chaos that it is about this Prime Minister, his decisions and his judgment?
The Prime Minister
The only advice—[Interruption.] She gets up on a Wednesday morning, scrolls through social media and never does any of the detail. We are the only country in the world that is not paying the 50% tax on steel, and we are working on the rest. That will be coming down. She—[Interruption.] We are working to bring it down to zero; that is going to happen. [Interruption.]
Mr Speaker
Order. Please, let us listen to the answer, even if you do not believe you are getting one. It is how the Prime Minister wishes to do it.
The Prime Minister
She opposes the US deal, she opposes the India deal, she opposes what we are doing with the EU, and she opposes Diego Garcia. That is a vital intelligence and strategic capability, and it is absolutely clear that legal uncertainty would compromise that capability in a very short time. No responsible Prime Minister would ever let that happen. We have secured the long-term basis for the base. That has been welcomed by the US, NATO, Australia, New Zealand and India. They are our allies. It has been opposed by our adversaries, Russia, China and Iran—and into that column we have Reform, presumably following Putin, and the Tories following Reform.
Claire Hanna (Belfast South and Mid Down) (SDLP)
Anyone who saw the six-year-old girl fleeing the flaming shelter where her family were killed by an Israeli air strike will carry those horrific images with them forever. These are very dark days. Gaza is a stain on the soul of humanity, and it is a further shame that there is more moral clarity coming from Ms Rachel on YouTube than from many world leaders, who are complicit in silence. The Prime Minister said this week that Britain must be ready for war. I ask: after tens of thousands of deaths, after a generation of Gazans stunted by hunger and trauma, when will it be ready for peace? When will it help to stop this genocide? When will it hold the Israeli Government to account, and when will it recognise the state of Palestine?
The Prime Minister
I am grateful to the hon. Member for raising this. She is absolutely right to describe these as dark days. Israel’s recent action is appalling and, in my view, counterproductive and intolerable. We have strongly opposed the expansion of military operations and settler violence, and the blocking of humanitarian aid. The House will have seen that we have suspended the free trade agreement talks and sanctioned extremists supporting violence in the west bank. We will keep looking at further action, along with our allies, including sanctions, but let me be absolutely clear: we need to get back to a ceasefire, we need the hostages, who have been held for a very long time, to be released, and we desperately need more aid, at speed and at volume, into Gaza, because it is an appalling and intolerable situation.
Ed Davey (Kingston and Surbiton) (LD)
I start by welcoming reports that the Chancellor will give winter fuel payments to more pensioners this winter, although because we still await the details, we will reserve our full judgment.
I recognise the efforts of the Prime Minister to pull out all the stops to avoid President Trump’s damaging tariffs: a letter from the King, offering to water down online safety laws and even trying to send the Open to one of Trump’s golf courses. The Prime Minister thought he had secured 0% tariffs for British steel, but now Trump is threatening us with 50% unless we comply with his new, five-week deadline. This is classic Trump—changing the terms of a deal he has already agreed. Does the Prime Minister share my fear that nothing will stop Trump messing the UK around, short of bunging a few hundred million pounds into his TrumpCoin?
The Prime Minister
We have a deal and we are implementing it. Within a very short time, I am very confident that we will get those tariffs down in accordance with the deal. I will come back to the right hon. Gentleman and update the House in due course, and I think the House will be very pleased at the outcome—[Interruption.] From a sedentary position, the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie) says no. This is zero tariffs on steel. [Interruption.] Let us come back to this in a couple of weeks when we have implemented it, but the Conservatives obviously do not want it. Labour has backed steel; the Conservatives laugh at attempts to do so. That is a big part of the problem.
Ed Davey
I had hoped the Prime Minister would now be beginning to see the sort of man Trump is and start getting tough on him, so we will come back to this issue.
I welcome the Prime Minister’s remarks about Gaza, because I am sure that all of us are appalled by the latest scenes: starving people desperate for food, water and medicine, met with chaos and violence. The US-Israeli programme is clearly failing and nothing short of lifting the full blockade on aid will do. Given that the Netanyahu Government refuse to do that, will the Prime Minister take more decisive action today? Will he push at the United Nations Security Council for humanitarian corridors to get the desperately needed aid urgently into Gaza?
The Prime Minister
I give the right hon. Gentleman my assurance, because this is a very important issue, that we are working at pace with our allies on that very issue, to take whatever measures we can to get that humanitarian aid in. We have been doing that intensively over recent weeks and I give him my assurance that we will continue to do that, because that aid needs to get in at speed and at volume, and he is absolutely right about that.
Ruth Jones (Newport West and Islwyn) (Lab)
The Prime Minister
I thank my hon. Friend for her campaign. I know that the Secretary of State for Environment, Food and Rural Affairs will have heard her representations. We have commissioned the expert Animal Welfare Committee to produce a full report on the responsible sourcing of fur to inform the next steps that need to be taken, and we are committed to publishing an animal welfare strategy later this week.
Rachel Gilmour (Tiverton and Minehead) (LD)
The Prime Minister
I thank the hon. Lady for raising this case and I am deeply sorry to hear about Molly’s situation. We are improving the lives of those that need it. My right hon. Friend the Secretary of State for Work and Pensions has just said to me that she will look into the case, so if the hon. Lady will provide the details, I will ensure that it gets proper attention so that we can deal with the particular problems she has raised. I am grateful to her, as I am sure Molly is, for raising this and I hope that we can now take the action that is necessary.
Mr Alex Barros-Curtis (Cardiff West) (Lab)
The Prime Minister
My hon. Friend is doing great work with Welsh Labour colleagues to champion working people in Wales. The United Kingdom is the only country in the world that will not be subject to the additional tariffs announced today, and we are working with the US at this moment to swiftly implement the agreement we have reached, which will see the 25% tariffs removed. We want that—the Conservatives do not want it—and it is crucial for British jobs. We have fought tooth and nail for our steel industry, saving jobs at British Steel and improving the deal at Port Talbot, and we will continue to do so.
Brendan O’Hara (Argyll, Bute and South Lochaber) (SNP)
The Prime Minister
I have said that we are strongly opposed to, and appalled by, Israel’s recent actions. We have been absolutely clear in condemning them and calling them out, whether that is the expansion of military operations, settler violence, or the dreadful blocking of aid—it is completely unacceptable. We must see a ceasefire, hostages must be released, and there must be aid into Gaza. However, the hon. Gentleman talks about peace and security. As I understand it, at this moment of global instability as we go into a new era, what does his party want to do? It wants to get rid of the nuclear deterrent—the single most important capability that we have to keep the UK safe—harming the industry and harming the country.
Graeme Downie (Dunfermline and Dollar) (Lab)
The Prime Minister
I thank my hon. Friend for raising this issue. At a time of global conflict, it is staggering that the SNP policy is to block an £11 million investment for a new national welding centre on the Clyde. I was there earlier this week and saw the huge potential for apprenticeships, for job opportunities, and for young people. [Interruption.] I support it—the SNP blocks it. In England, we are backing 120,000 more apprenticeships with £3 billion of funding as part of our plan for change, but despite the highest funding settlement in the history of devolution, the SNP is cutting college budgets and blocking opportunities. It has no plan for Scotland’s future.
Sarah Pochin (Runcorn and Helsby) (Reform)
The Prime Minister
I welcome the hon. Lady to her place. I am not going to follow her down that line, but now she is in Parliament and safely in her place, perhaps she could tell her new party leader that his latest plan to bet £80 billion of unfunded tax cuts with no idea how he is going to pay for them is Liz Truss all over again—although, considering that I think the hon. Lady was a Conservative member when Liz Truss was leader, she probably will not.
Dr Scott Arthur (Edinburgh South West) (Lab)
The Prime Minister
What my hon. Friend describes is how health services in Scotland are utterly broken under the SNP, whether it is people waiting too long for mental health support in his constituency, or the Wishaw neonatal unit in Hamilton, which the SNP is threatening to downgrade. In 2021, the SNP Government said they would recruit 1,000 more community mental health workers. They utterly failed to do so. If they had a plan to fix Scotland’s NHS, they would have done it by now. Scotland needs a change of direction.
Jess Brown-Fuller (Chichester) (LD)
The Prime Minister
I share the hon. Member’s anger and frustration at the broken water system that we inherited, with frankly appalling sewage, higher bills and executives paying themselves huge bonuses. The era of being rewarded for failure is over. We have launched a record 81 criminal investigations into lawbreaking water companies in England, and we have introduced the Water (Special Measures) Act 2025, with prison sentences for polluting bosses and the banning of unfair bonuses. We will respond to the independent water commission in full following the publication of the final report.
David Taylor (Hemel Hempstead) (Lab)
The Prime Minister
I pay tribute to how my hon. Friend is bringing people together to deliver better care in the community that meets the needs of his constituents. The proposals for the health campus will be open to public consultation. I urge the whole community to input into that, to ensure the strongest investment case is put forward. I am pleased that waiting lists in his local trust have fallen by a fifth since March 2024, because of the investment that we have put into the NHS. That, of course, was opposed by the parties on the Opposition Benches.
Manuela Perteghella (Stratford-on-Avon) (LD)
The Prime Minister
We announced £502 million to support local authorities to manage the changes in NICs. We have put in £3.7 billion in additional funding for social care, doubled the disabled facilities grant and introducing the first ever fair pay agreement for professional carers, including minimum standards for pay. I gently say to the hon. Member that her party opposed the Budget that provides the money for the funding. They cannot keep asking for more spending and oppose a Budget that raises the money.
Natalie Fleet (Bolsover) (Lab)
The first constituent to reach out to me was a brave Bolsover mummy who had waited four years and five months, from rape to prosecution, with three postponements and multiple suicide attempts. I will do everything I can to use this Chamber to speak out for women who are being so badly let down. How will the Prime Minister support me to ensure that when these survivors—these formidable women—across the country come forward, they will get justice and there will be space in our prisons for the perpetrators?
The Prime Minister
May I thank my hon. Friend for raising this issue so powerfully and for everything that she is doing on it? The case she has outlined is utterly shameful, and far too many victims are waiting too long for justice. We are delivering a record number of sitting days and reviewing criminal courts to speed up the hearing of these cases, and we have a mission to halve violence against women and girls.
My hon. Friend talks about the prison system. The Conservatives left the prison system on the brink of collapse and routinely operating at 99% of capacity, because in 14 long years they added just 500 extra places. We will deliver 14,000 new prison places so that the public are protected from these vile offenders.
Lincoln Jopp (Spelthorne) (Con)
The Prime Minister
Was it Kwasi Kwarteng that the hon. Gentleman replaced? Now he stands there to give lectures on economic prudence—you couldn’t script it! The difference between the Labour Government and the parties opposite is that we believe in properly costing our plans. Reform has £80 billion-worth of unfunded commitments—Liz Truss 2.0.
Chris Webb (Blackpool South) (Lab)
Blackpool’s own boxing champion, Brian Rose, uses his gym to tackle knife crime and antisocial behaviour and to give young people a safe space, demonstrating the significant impact of amateur gyms. Thousands of amateur gyms up and down the country operate on a shoestring and cannot afford to keep their lights on, and they are reliant on brilliant charities such as Maverick Stars, Empire Fighting Chance and Matchroom in the Community. Will the Prime Minister join me in thanking those charities and praising the volunteers, and will he throw a haymaker behind these gyms, giving them the knock-out support they need to continue their vital work?
The Prime Minister
My hon. Friend is a great champion of how amateur boxing gyms can transform both physical and mental health, as well as confidence, in young people. The time given by selfless volunteers is inspiring, and we should thank them for it. England Boxing is investing £9 million in the sport and GB Boxing will also receive more than £12 million during the next Olympic games cycle, and I know that my hon. Friend will be looking forward to Liverpool hosting the inaugural world boxing championships in September.
Gregory Stafford (Farnham and Bordon) (Con)
The Prime Minister
I remind myself that the Conservatives left the NHS on its knees: the last Labour Government brought waiting lists down to record lows, and they drove them up to record highs; the last Labour Government had the highest possible confidence in the NHS, and they dragged it down to the lowest ever level. Because of the money that we are putting in, we have done 3 million extra appointments in the first year of a Labour Government—that is the difference that Labour makes in power.
David Pinto-Duschinsky (Hendon) (Lab)
The Environment Agency predicts that 8 million homes—one in four in England—could be at risk of flooding by 2050. Despite this, the Conservative party presided over a tripling of the proportion of our flood defences that are deemed “not adequate”. By contrast, this Labour Government are investing over £2.6 billion in new flood defences, including on the Greenway in my Hendon constituency. Does the Prime Minister agree that it is a shame that not all parties share this Government’s determination to keep homes safe from flooding?
The Prime Minister
I thank my hon. Friend for highlighting this issue, because the Conservatives left our flood defences in the worst state on record. It is prisons, it is the NHS, it is the economy, it is flooding—every single thing they touched, they broke. We are investing £2.65 billion to build and maintain flood defences, and that means 52,000 more properties will be protected by March of next year.
Sarah Dyke (Glastonbury and Somerton) (LD)
The Prime Minister
The hon. Member is absolutely right to raise this matter. Antisocial behaviour massively impacts on individuals and their communities, and that is why we are introducing 13,000 new neighbourhood police and giving them better powers—respect orders—so they can actually deal with what they see on the streets effectively. It is very important that we take this seriously.
David Burton-Sampson (Southend West and Leigh) (Lab)
This time last year, Southend United football club almost went bankrupt, thanks to mismanagement by the former owner, but on Sunday they made it to Wembley for the national league play-off final. Despite being beaten by Oldham Athletic at the eleventh hour, it was like the phoenix rising from the flames to see them on the pitch. Will the Prime Minister join me in congratulating Southend United on their outstanding recovery, and give me an assurance that the Government are doing all they can to make sure that no club ever again has to go through what our club went through?
The Prime Minister
Let me congratulate Southend on what was an incredible achievement; commiserations for the final result. One of the police officers on my team is an ardent Southend supporter, so I know all about the team—and the plans and the stadium—and what it means, but I should also congratulate Oldham, of course, on that victory.
David Davis (Goole and Pocklington) (Con)
The Prime Minister
The right hon. Member raises a really important issue that I am obviously aware of. It is right that victims of miscarriage can apply for compensation and appropriately do so, and I will take away what he says and have it looked at.
