Oral Answers to Questions

Wednesday 29th October 2025 Commons Chamber

The Secretary of State was asked—

[Sarah Bool (South Northamptonshire) (Con)]

1. What discussions she has had with farmers in Wales on the potential impact of planned changes to inheritance tax relief on the agricultural sector.

[Jerome Mayhew (Broadland and Fakenham) (Con)]

10. What discussions she has had with farmers in Wales on the potential impact of planned changes to inheritance tax relief on the agricultural sector.

[Mr Speaker]

Minister, welcome.

[The Parliamentary Under-Secretary of State for Wales (Anna McMorrin)]

Thank you, Mr Speaker. As a proud Welsh MP I am honoured to be here for my first Welsh questions.

We fully recognise the role of farmers and the agricultural community in Wales. That is why one of the first things that I did as Minister was meet members of the Farmers’ Union of Wales at the farm of one of its members just two weeks ago. I will be meeting with the National Farmers’ Union later today to discuss important matters for its members, including inheritance tax. This Government have also made sure to protect the farm budget for Wales, ensuring that the full £337 million has been allocated to the Welsh Government.

[Sarah Bool]

I welcome the Minister to her place. The impact of the changes to IHT goes far beyond just farmers. Last month, a Pembrokeshire farm gathered 57 businesses from vets, machinery dealerships, and milk processors, to electricians and fencing companies, employing almost 11,000 people. Almost half of those were totally reliant on incomes from local farms. Have the Government fully considered the ripple effect of that policy on farms in Wales and across the UK, including in my constituency?

[Anna McMorrin]

This Government want to strike a fair balance between supporting farmers and fixing our public finances on which our communities, including those important agricultural communities, rely so heavily. The vast majority of farmers will not be affected by this change, and they will be able to pass the family farm down to their children. Welsh Conservatives voted to block the support reaching Welsh farms in March, which shows that the Conservative party just does not care for farmers and the agricultural community.

[Jerome Mayhew]

I welcome the Minister to her position at the Dispatch Box. I know she will be excellent at the job. I also refer to my entry in the Register of Members’ Financial Interests. Welsh farming is central to the Welsh economy—we can all agree on that—but it is now facing a double whammy from the mad sustainable farming scheme from Labour in Cardiff, and the frankly bad family farm tax that has been dreamt up by Labour in London. The Farmers’ Union of Wales tells us that more than 85% of active farms in Wales will have IHT bills that exceed their incomes. That spells economic disaster. Why is Labour so deaf to the voice of farmers in Wales?

[Anna McMorrin]

As I said, the Government want to strike that fair balance, and that is what they are doing. Our reforms mean that the majority of those claiming agricultural property relief will not be affected. That is a fair approach that balances fixing our public finances after the chaos of the Conservative party, and maintaining much needed support for families, farms and the wider rural agricultural community.

[Dame Nia Griffith (Llanelli) (Lab)]

I welcome my hon. Friend to her place. Was she as shocked as I was last year that Plaid Cymru and Conservative Senedd Members voted against the £300 million funding for Welsh farmers? Will she join me in urging them to stop playing political games, put the people of Wales first, and work with the Welsh Government constructively to ensure that we do not have uncertainty for our farmers and our public sector, which we all depend on in Wales?

[Anna McMorrin]

I thank my hon. Friend and pay tribute to her work in this role prior to my appointment. I completely agree: the Welsh Government published their outline draft budget earlier this month, and are working with Opposition parties to ensure that it has broad support. The question everyone in Wales wants the answer to is whether the Opposition parties will vote against billions of pounds for public services, including vital support for Welsh farmers, just like they did last year.

[Mr Speaker]

I call the shadow Secretary of State.

[Mims Davies (East Grinstead and Uckfield) (Con)]

I note that it takes three women to take me on now, but I very much welcome the Ministers to their places. Charles Rees, a fifth-generation Pembrokeshire farmer, has bravely and moving shared his battle with cancer on the BBC’s “Countryfile”, and I know this House will send him and his family our best wishes. His illness is not his only worry; he is also seriously concerned that his son, who is running his farm, could now be facing an unaffordable inheritance tax bill of £1 million, solely due to this Government’s catastrophic family farm tax. Despite Ministers saying differently, Charles and many other farmers across the country are fearing for their livelihoods, their way of life, their futures, and for food security. Will the Government scrap the family farm tax?

[Anna McMorrin]

I reiterate that our reforms mean that the majority of those claiming the relief will not be affected. As confirmed by the Minister for Food Security and Rural Affairs, my hon. Friend the Member for Wallasey (Dame Angela Eagle), there will be no change and no U-turn on inheritance tax. This policy strikes a fair balance and is fixing our public finances, after the chaos that the Tories left, while protecting our rural communities.

[Alison Hume (Scarborough and Whitby) (Lab)]

2. What recent discussions she has had with Cabinet colleagues on increasing economic growth in Wales.

[Rachel Blake (Cities of London and Westminster) (Lab/Co-op)]

9. What recent discussions she has had with Cabinet colleagues on increasing economic growth in Wales.

[The Secretary of State for Wales (Jo Stevens)]

Economic growth is the No. 1 priority for this Government. The UK was the fastest growing economy in the G7 in the first half of this year. Wages are up, inward investment is up, inactivity is down on the year and interest rates are down. This Labour Government are delivering for working people all across Wales and the United Kingdom.

[Alison Hume]

It is brilliant that last month a total of £214 million was invested in communities across Wales as part of the Government’s pride in place scheme. In my patch, I was delighted that earlier this year Scarborough was awarded £20 million through the plan for neighbourhoods. These initiatives will give local people the power to decide how funding will transform our towns. Will the Secretary of State update the House on how funds such as these will boost local economic growth and restore pride in our communities?

[Jo Stevens]

Through the pride in place initiative, we are putting power and resources directly into the hands of local communities, from Conwy to Carmarthenshire, giving them the ability to decide the priorities that matter most and the funding to pay for visible and lasting change. In Wales, 14 communities will benefit from £20 million of investment, alongside a further £34.5 million benefiting every single local authority across Wales. Together, the investments will help revitalise high streets and improve public spaces and community facilities, which is a central part of our mission to boost the economy and break down barriers to opportunity.

[Rachel Blake]

As the MP for the centre of London, including Paddington station, I know how interconnected our countries and our economies are. In stark contrast to the nationalist parties of Reform and Plaid Cymru, the Labour Government are focused on job creation. Will the Secretary of State update us on the impact of Plaid Cymru’s damaging independence plans?

[Jo Stevens]

Plaid Cymru’s disastrous plans for independence will cost Wales £21.5 billion every year— over £11,000 for every working-age person in Wales or over £7,000 for every adult and child in Wales, every single year. The people of Wales deserve to know what public services Plaid Cymru will cut or what taxes it would raise to pay for its divisive, separatist plans?

[Graham Stuart (Beverley and Holderness) (Con)]

It is not just farmers but lots of other family businesses who are terrified for their future. Under the business property relief, a company worth £20 million would have to pay £4 million in tax, yet that responsibility falls not on the business but the person who inherits it, so they will have to extract another £4 million to pay that tax, crippling family businesses, crippling investment and hurting growth in Wales. That is true, is it not?

[Jo Stevens]

It is certainly not. The right hon. Gentleman will have heard of tax planning, and so will the people he has been talking about. Investment is up in Wales and we have had record inward investment in Wales, with a 23% increase on the previous financial year and a 30% increase in jobs created. The UK was the fastest growing economy in the G7 in the first half of this year. Businesses are growing, developing and creating jobs under this Government.

[Mr Speaker]

I call the shadow Secretary of State.

[Mims Davies (East Grinstead and Uckfield) (Con)]

Under the watch of the current Secretary of State, opportunities for young people are now unbelievably dire. Despite what she says, unemployment is rising and employment is falling, and that situation is not good enough for the next generation in Wales. Last week, my colleague, Darren Millar, who is the Conservative leader of the Senedd group, met the Welsh First Minister—does anyone know who that is?—offering to potentially support the Welsh Government’s budget, provided Labour Ministers agree to scrapping Welsh stamp duty. That would help young people on to the property ladder in Wales, where it is the hardest to achieve that, and boost the Welsh economy. Will the Secretary of State confirm that she agrees with scrapping Welsh stamp duty? If so, what measures is she taking to persuade Baroness Morgan of Ely to scrap the tax in Wales?

[Jo Stevens]

I am very glad that the hon. Lady knows the name of the Welsh Conservative leader in the Senedd, because clearly her colleague the shadow Home Secretary, the right hon. Member for Croydon South (Chris Philp), does not. They must have ended their fight about who is the actual leader.

We are delivering for the people of Wales. We have ended Tory austerity, and we have the largest budget settlement in the history of devolution, with nearly £5 billion extra to spend on public services over the next three years. We are creating jobs, and we have increased the minimum wage and the national living wage for 160,000 Welsh workers. We are fixing the foundations and the chaos that the hon. Lady’s party left behind.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

Allow me first to congratulate Lindsay Whittle on his seismic victory in Caerphilly. In doing so, I pay tribute to the late Hefin David, whose service to his community was deeply respected. As Mr Whittle has said:

“He will be a hard act to follow. I will never fill his shoes but I promise you I will walk the same path that he did”.

The result shows that people in Wales seek real change. In her capacity as Secretary of State at the Wales Office, what is she doing to press the Labour Chancellor to include measures that benefit Wales in the autumn Budget?

[Jo Stevens]

I thank the right hon. Lady for her words about our late colleague Hefin David. I congratulate Lindsay Whittle on his victory and on becoming a Senedd Member; I am sure that he will work very hard for his Caerphilly constituency for the next six months. As she will know, I am not going to comment on discussions between myself and the Chancellor ahead of the Budget. She will have to wait and see what the Chancellor says on 26 November.

[Liz Saville Roberts]

None the less, I think we all know that the autumn Budget risks falling short of tackling the deep poverty and lack of opportunities that still scar far too many Welsh communities. We need to tax income from wealth fairly, scrap the two-child limit and ensure that families have the support they need to cope with rising costs. The Secretary of State tells me to wait for the Budget. Perhaps she is therefore prepared, for once, to meet with me to discuss Plaid Cymru’s proposals for a fairer, more ambitious UK Budget that actually works for Wales. Will she meet with me?

[Jo Stevens]

I am very happy to meet with the right hon. Lady.

[Mr Speaker]

I thought so.

[Dave Doogan (Angus and Perthshire Glens) (SNP)]

3. What recent discussions she has had with the Chancellor of the Exchequer on reducing the cost of living in Wales.

[The Secretary of State for Wales (Jo Stevens)]

I have regular discussions with the Chancellor and Treasury Ministers on a wide range of issues, including the cost of living. This Labour Government are on the side of working people. That is why we have already taken action by increasing the national minimum wage and the national living wage for 160,000 workers across Wales. We have frozen fuel duty and extended the warm home discount. There is more to do, and we are determined to put more money into people’s pockets right across Wales.

[Dave Doogan]

A century of Labour taking the people of Wales for granted came crashing down last week with the sensational victory of Plaid’s Lindsay Whittle in Caerphilly, with Labour reduced to third place. Why would anybody accept any more Labour, as Labour’s cost of living soars, its Westminster perma-crisis deepens, and 700,000 people in Wales live under its poverty prospectus? The Secretary of State will not say what she is going to speak to the Chancellor about, but does she think the Chancellor is ready and willing to help the people of Wales? The people of Wales feel abandoned by Labour over the last five decades.

[Jo Stevens]

I am not sure whether the hon. Member has ever been to Caerphilly or even to Wales. If he has, that is good; if he has not, he needs to be careful about what he says about the people in Wales. He absolutely does not know what he is talking about. His party’s record in Scotland is nothing to boast about. Nationalists will divide the United Kingdom, costing Wales £21.5 billion every single year.

[Mr Speaker]

I call the Chair of the Select Committee.

[Ruth Jones (Newport West and Islwyn) (Lab)]

I welcome last month’s news that Newport city council and Caerphilly county borough council will each receive £21.5 million from the UK Labour Government’s Pride in Place scheme. That funding will empower communities across my constituency to invest in community assets and their local high streets, drive local growth and create jobs, thus reducing the cost of living. Does the Secretary of State agree that at last in Wales, we have two Labour Governments delivering for the people of Wales?

[Jo Stevens]

My hon. Friend, the Chair of the Welsh Affairs Select Committee, is absolutely right. Our pride in place programmes, the local growth fund, the city and growth deals, the investment zones and our freeports are all the result of having two Labour Governments working together for the benefit of everyone across Wales. Taken together, they will boost the economy, draw in further investment, create thousands of jobs and raise living standards across Wales. They demonstrate this Government’s commitment to growth—practical, visible, long-term investment that empowers local communities and delivers real benefits for them.

[Ann Davies (Caerfyrddin) (PC)]

4. Whether she has had recent discussions with the Welsh Government on the replacement of overhead pylons with underground cabling.

[The Secretary of State for Wales (Jo Stevens)]

Overhead lines are much cheaper to build; according to the Institution of Engineering and Technology, undergrounding costs an estimated four and a half times more than overhead lines. Overhead lines are also quicker to build, cause less environmental damage, and are much easier to maintain. The cost of building this infrastructure is borne by electricity bill payers, and Plaid’s policy on undergrounding will not only increase bills, but suffocate the economic potential of Wales’s green industrial revolution.

[Ann Davies]

My constituency is the location of two major infrastructure projects—a network of pylons of 97 km and 60 km, alongside 248 wind turbines that are 230 metres tall. The cumulative impact of these projects is significant, occupying land that could support other development, and it remains unclear whether they will lower electricity bills or improve electricity connectivity for local households or businesses. What discussions has the Secretary of State had with the Welsh Government to ensure that those projects deliver genuine benefits for our communities?

[Jo Stevens]

I have heard what the hon. Lady has said, but we do have a policy to ensure that communities that host clean energy infrastructure can directly benefit. The new community funds guidance aims to improve the consistency and amount of funding for communities that could be used for local projects. Turning to bill discounts, we are introducing a scheme that will provide household discounts to those living closest to new and significantly upgraded transmission infrastructure projects.

[Henry Tufnell (Mid and South Pembrokeshire) (Lab)]

I like my constituency neighbour, the hon. Member for Caerfyrddin (Ann Davies), and Plaid wants to be taken seriously as a party of government, but it fails to recognise the importance of the role that renewable energy will play. Does the Secretary of State agree with RenewableUK Cymru, which recently concluded that Plaid’s approach would cost jobs and investment in communities such as mine in Pembrokeshire?

[Jo Stevens]

Labour is the only party that is committed to investing in renewable energy, which will bring down bills and create thousands of jobs for people right across Wales. Plaid and Reform are against renewable infrastructure, and Plaid and the SNP do not want nuclear—Plaid’s economy spokesperson in the Senedd is anti-nuclear. Plaid is happy to see people pay higher bills, to spurn investment, and to see job opportunities slashed.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[David Chadwick (Brecon, Radnor and Cwm Tawe) (LD)]

During the second world war, over 200 people were forced to leave their homes and give up their land in the Epynt when more than half of the community was taken for use by the Ministry of Defence. The people of the Epynt understood why that sacrifice had to be made, but now, Bute Energy and its wealthy investment backers want to take the rest of the Epynt. Does the Secretary of State agree that the Epynt has already sacrificed enough, and will she work with me to defend the Welsh countryside from once again having its wealth extracted from it, with no benefit to local communities?

[Jo Stevens]

It sounds like the Liberal Democrats in Wales have the same position as Plaid Cymru. Our priority is to drive growth, lower bills and create jobs for people through our new green energy revolution, including those in the hon. Gentleman’s constituency. Investment in his constituency is something he should be welcoming.

[Rebecca Smith (South West Devon) (Con)]

5. What discussions she has had with the Secretary of State for the Home Department on the adequacy of accommodation for asylum seekers in Wales.

[The Parliamentary Under-Secretary of State for Wales (Anna McMorrin)]

We inherited a broken asylum system in absolute chaos from the Tories, with tens of thousands stuck in a system dependent on expensive asylum hotels. We are committed to ending the use of hotels as asylum accommodation as soon as possible and before the end of this Parliament, as part of a controlled, managed and orderly programme.

[Rebecca Smith]

Under the Welsh Labour Government, waiting lists, educational standards and opportunities for young people have all ground to an abrupt halt. It is therefore shocking that the Welsh Labour Government are not prioritising issues that would make a real difference to the people of Wales. Instead, Labour Ministers, supported by Plaid Cymru, are ploughing tens of millions of pounds into their nation of sanctuary policy, which is believed to support services for some illegal immigrants. Does the hon. Lady agree that it is high time her colleagues scrapped this wasteful, non-devolved policy and instead focused their time on lowering NHS waiting times and improving standards?

[Anna McMorrin]

It sounds like the hon. Member does not agree with welcoming the thousands of Ukrainian refugees that the UK Government’s nation of sanctuary has supported. The scheme has been used to welcome Ukrainian families fleeing from Russian aggression. That is a cause that I understood her party supported.

[Chris Evans (Caerphilly) (Lab/Co-op)]

I associate myself with the remarks of the leader of Plaid Cymru in paying tribute to Hefin David, my friend and colleague. He was an amazing representative for Wales and a real warrior for those who are neurodivergent or find themselves on the margins of society.

I am delighted that Caerphilly is so popular today. It seems that so many people who have either only visited several times, or not visited at all and have only read about it in the press, have become experts about my constituency.

I am also pleased that the Minister has raised the plight of Ukrainians who came to Wales to seek sanctuary, running from war, because if there was one downside to the by-election, it was the talk of asylum seekers being bad people—that they are all illegal and that they do not contribute anything. Those who said such things should see the exhibition that was on at Caerphilly council and see what asylum seekers have contributed. What message does the Minister have for those Ukrainians who are still seeking asylum in Wales?

[Anna McMorrin]

We offer sanctuary for those who desperately need it, and we are proud of that, but we inherited contracts and a broken system from the Conservatives. Hotel use has nearly halved since the last election, and we have removed 30,000 people who have no right to be here, ensuring that those who do need to be here have the welcome and support that they need. It is not job done, but work in progress. We can compare that with the 14 years of the Tory Government.

[Mr Speaker]

I call the shadow Secretary of State.

[Mims Davies (East Grinstead and Uckfield) (Con)]

After wantonly scrapping the Rwanda scheme, the Labour Government are now overseeing record-breaking figures of illegal immigrants. It is reported that the scandal is now engulfing north Wales, where more than 200 illegal immigrants have tried to gain entry to the country on ferries from Dublin to Holyhead. Meanwhile, there is talk about Penally military camp in south-west Wales, which was previously condemned by the Welsh Labour Government. It appears that their policy, along with Reform’s, is from boats to barracks, as is happening in Scotland and Sussex, yet Plaid says that there is no such thing as illegal immigration. Does the Minister agree that her Government and Plaid have no idea about and no interest in how to make our borders safe?

[Anna McMorrin]

I fear that the Conservatives forget about the chaos that they created. We inherited a broken system after 14 years of chaos, and contracts that we have to honour, but in the past year we have halved the use of hotels. We have removed 30,000 people who have no right to be here. It is not job done, as I say, but it is a work in progress. We can compare that work in just one year with 14 years of chaos under the hon. Lady’s Government.

[Catherine Fookes (Monmouthshire) (Lab)]

6. What steps she is taking with Cabinet colleagues to improve cross-border rail connectivity between Wales and England.

[The Parliamentary Under-Secretary of State for Wales (Anna McMorrin)]

We are investing at least £445 million in Welsh rail in order to right years of underfunding by past Governments. That will mean new stations and more and faster trains along the key lines, and will improve cross-border connectivity, create jobs and boost economic growth.

[Catherine Fookes]

I thank the Minister for that £445 million investment, which will be a fundamental driver of economic growth and connectivity in south Wales. What action is she taking with Cabinet colleagues and industry partners to ensure that a new station serving my constituents in Magor and Undy is delivered without delay, getting my constituents on track, and faster, towards their destinations?

[Anna McMorrin]

My hon. Friend has been a strong champion for this rail investment, which is the key to unlock Wales’s economic potential. It includes funds to progress the five Burns stations in Cardiff East, Newport West, Somerton, Llanwern and Magor and Undy. I will continue to work with the Wales Rail Board and the Welsh Government to ensure that the community my hon. Friend represents is given the infrastructure that it needs.

[Aphra Brandreth (Chester South and Eddisbury) (Con)]

The huge potential of both the north-west of England and north Wales is being held back by poor rail infra-structure. The last Conservative Government committed themselves to spending at least £1 billion to upgrade and electrify the railway lines from Crewe and Warrington through Chester and into north Wales, but this Labour Government have scrapped those transformational plans, at a time when economic growth is a priority. Will the Minister seek to reinstate the vital rail infrastructure investment in the Mersey Dee and north Wales region?

[Anna McMorrin]

That money just did not exist. We are investing a historic £445 million in Welsh rail to right years of underfunding by previous Governments, unleashing Wales’s economic potential. That will mean new stations, faster trains on key lines, and connecting people with well-paid and better jobs right across Wales. Two Governments are working in partnership to deliver for the people of Wales.

[Mr Speaker]

Order. Before we come to Prime Minister’s questions, may I welcome, in the Gallery, the honourable Speaker of the Parliament of Sri Lanka and his delegation?

The Prime Minister was asked—

[Nick Smith (Blaenau Gwent and Rhymney) (Lab)]

Q1. If he will list his official engagements for Wednesday 29 October.

[The Prime Minister (Keir Starmer)]

The scenes of destruction emerging from Jamaica are truly shocking. Both the Foreign Secretary and I have been in close contact with our Jamaican counterparts in recent days to offer the UK’s full support. I can update the House: HMS Trent and specialist rapid deployment teams are pre-positioned in the region, and we stand ready to provide humanitarian support.

Awaab Ishak died five years ago from a respiratory condition caused by exposure to black mould in his flat in Rochdale. He was just two years old. No child should grow up without the safety and security of a decent home. For far too long, millions of people have lived at the mercy of rogue landlords and insecure contracts. Labour is ending that. Despite the best efforts of the Tories and Reform, who voted against it, our Renters’ Rights Act 2025 is now law, including Awaab’s law.

Fighting for working people: that is the difference that a Labour Government make, and on that issue, this Government have secured the biggest deal to manufacture Typhoon fighter jets in this country for almost 20 years. We secured that deal because the UK is back as a leading and trusted member of NATO. That is a timely reminder for the Green party, whose policy is to take us out of NATO; for the Putin-friendly Reform party, which would have no standing with NATO; and for the Leader of the Opposition, because you do not win NATO deals by not turning up to NATO summits.

This morning I had meetings with ministerial colleagues and others. In addition to my duties in the House, I shall have further such meetings later today.

[Nick Smith]

I associate myself with the Prime Minister’s remarks about supporting Jamaica.

Across our country, and in Blaenau Gwent and Rhymney, off-road bikers are a menace. They tear up our environment, and turn our streets into racetracks. After years of Tory cuts, Gwent police are now tackling that. Does the Prime Minister agree that police forces, and communities such as mine, are seeing the difference that Labour can make in power?

[The Prime Minister]

I share my hon. Friend’s determination that everyone should feel safe and secure in their community. Neighbourhood policing was decimated by the Conservative party, and we are restoring it with 3,000 extra officers by spring. We are also giving them the powers that they need, including tough new respect orders that allow the police to seize and destroy vehicles within 48 hours. The Tories walked through the Lobby, with Reform, to vote against our Crime and Policing Bill.

[Mr Speaker]

I call the Leader of the Opposition.

[Mrs Kemi Badenoch (North West Essex) (Con)]

Last year, in its manifesto, Labour promised not to increase income tax, not to increase national insurance, and not to increase VAT. Does the Prime Minister still stand by his promises?

[The Prime Minister]

I am glad that the Leader of the Opposition is now finally talking about the economy. I can update the House: retail sales are higher than expected; inflation is lower than expected; growth has been upgraded this year; and the UK stock market is at an all-time high. The Budget is on 26 November, and we will lay out our plans then, but I can tell the House now that we will build a stronger economy, cut NHS waiting lists and deliver a better future for our country.

[Mrs Badenoch]

Well, well, well; what a fascinating answer. It is not the same answer that I received when I asked exactly the same question, word for word, on 9 July. Then, the Prime Minister replied with just one word—yes—and then he sat down with a smug grin on his face. What has changed in the past four months?

[The Prime Minister]

As the Leader of the Opposition well knows, no Prime Minister or Chancellor will ever set out their plans in advance. But I can say this: the figures from the productivity review that is being undertaken—which is a judgment on the Tories’ record in office—are now coming through, and they confirm that the Tories did even more damage to the economy than we had previously thought. We will turn that around. We have already delivered the fastest growth in the G7 in the first half of this year, five interest rate cuts in a row, and trade deals with the US, EU and India. The Tories broke the economy; we are fixing it.

[Mrs Badenoch]

The right and learned hon. Gentleman says that no Prime Minister or Chancellor will say these things before the Budget. Has he told his Chancellor? She has been out there flying kites, causing constant speculation around the Budget that is damaging the economy. All week, the Government have been briefing about tax rises. What we have heard is that he does not have a plan, so we have some ideas for him. [Interruption.] It is quite clear that they need some ideas. On the Conservative Benches, we believe in scrapping taxes on family homes. Yesterday, we voted to abolish stamp duty; Labour voted against it. Even the former Deputy Prime Minister, who resigned in disgrace for not paying stamp duty, voted to keep it. I remind them that on this side of the House we know that abolishing stamp duty is how we get young people on the housing ladder and get the economy growing. So why will he not scrap this terrible tax?

[The Prime Minister]

Why did the Tories not do it, then, in their 14 years in office? As I said, the productivity review figures are now coming in, and those show the true extent of the damage that they did. The Leader of the Opposition asks us to take advice from them. These figures are coming out, and we all know that austerity damaged the economy on their watch. The botched Brexit deal damaged the economy on their watch. Liz Truss’s mini-Budget damaged the economy on their watch. So we will take no lectures or advice from them on the economy. They will not be trusted on the economy for generations to come. That is why I can be clear that, at our Budget, there will be no return to austerity—that is what broke the country—and no return to the instability of their mad borrowing spree, and we will end the unfairness and low growth that squeezed living standards for working people. That is the path to national renewal.

[Mrs Badenoch]

The Conservatives reduced the deficit every year until the pandemic. We more than doubled the personal allowance. We left 4 million more jobs than we found from Labour. We brought inflation down to 2%; it has nearly doubled—[Interruption.]

[Mr Speaker]

Order. Mr Tufnell, you are in my sights. The pantomime season has not arrived—do not start it too early.

[Mrs Badenoch]

On our record, we brought inflation down to 2%; it has doubled under the Prime Minister. We left him the fastest growing economy in the G7; it is no longer. The truth is, the Government have no ideas; we are giving them some. There is another way to get growth: cutting welfare spending and getting people into work. Last month, I offered to work cross-party with him to bring down welfare spending, because he knows and we know that he would rather dip into people’s pockets than upset the people behind him. Instead of tax rises, will he work with us to find a way to cut welfare spending and get Britain working again?

[The Prime Minister]

The right hon. Lady talks about the Conservatives’ record, so let us go through it. They crashed the economy. Inflation went up to 11%. Mortgages went through the roof. Welfare spending went up by £33 billion. And they want to give us advice! They reduced the UK to a laughing stock. Because of our Budget, waiting lists have come down, wages are up, mortgage rates are down and other countries want to do deals with us. Just on Monday of this week, the Turkish Government signed an £8 billion deal for Typhoons. Earlier this year, the Norwegian Government signed a £10 billion deal for frigates. That is because of the Budget that we passed—fixing the mess that the Tories left.

[Mrs Badenoch]

It is not because of the Budget that the Prime Minister passed; I started that deal back in January 2024, and I welcome it. [Interruption.] It has nothing to do with the Government’s Budget; we are lucky the deal is still happening. I welcome the £8 billion deal that he has done with Turkey, but I remind him that just last month his Chancellor borrowed £20 billion. He will have to sell a hell of a lot more jets to make up for that. He will not rule out any tax rises, he cannot cut spending and he is increasing unemployment. This man knows nothing about economic growth, except how to destroy it. In his weakness, he has caved in to the unions on their regulations that will cripple businesses, costing them £5 billion every year. [Interruption.] Yes, please do speak up, because I want every single business out there to hear Labour MPs heckling when we talk about the damage that they are doing. I ask the Prime Minister: how on earth can he consider adding more burdens for these firms to deal with?

[The Prime Minister]

The right hon. Lady has overlooked the fact that we had the highest growth in the G7 in the first six months of this year—and that growth has just been upgraded—and we had three interest rate cuts. We are not going to take lessons from the Conservatives. She has now introduced what I think she calls a “golden economic rule”. This golden rule that she is now putting forward—very golden!—is £47 billion-worth of unspecified spending cuts, with no detail whatsoever. Let me put that in context: that would mean 85,000 fewer nurses, 234,000 fewer teachers or cutting every police officer in the country twice over. No wonder the Institute for Government said she is on “shaky foundations”. That is exactly what caused the problem in the first place.

[Mrs Badenoch]

The fact that he has to stand there and make stuff up just shows what kind of Prime Minister he is. We had an itemised list worth £47 billion; £23 billion was on welfare spending, which I asked him to work with us to cut. He refuses to do so. All he knows how to do is tax, tax, tax. If you work, the Government tax you more. If you save, they tax you more. If you buy a home, they tax you more. None of these taxes were in their manifesto, which he had four years to prepare. He is raising taxes because he is too weak to control spending. He is blaming us, he is blaming the OBR. Last week, they were blaming Brexit. Is it not the truth that with this Prime Minister, it is always someone else’s fault?

[The Prime Minister]

The Conservatives were kicked out of office because they broke the economy. They will not be trusted for years to come. The right hon. Lady cannot tell us what her position is on the last Budget, and she has a phantom £47 billion with no foundation as we go forward. That is exactly the mess that they caused, and they have not changed one bit. Meanwhile, we are fixing their mess: 5 million extra NHS appointments, five interest rate cuts, and growth and wages are up. That is the change a Labour Government make.

[Jeff Smith (Manchester Withington) (Lab)]

Q3. As Palestinians try to rebuild their lives amid the rubble of Gaza, last night once again dozens of innocent people were killed by Israeli airstrikes. What will the UK do, along with our international partners, to hold the Israeli—the Netanyahu—Government to account for their actions, and what more can we do to ensure that aid gets in as the Israel Defence Forces block aid in breach of both the peace agreement and international law?

[The Prime Minister]

I thank my hon. Friend for raising this point. I am deeply concerned by the strikes. This underlines the fragility of the ceasefire deal. All sides need to uphold President Trump’s peace plan. It is the only route to long-term peace for Israelis and Palestinians. We are of course in close touch with the US and regional allies pushing for de-escalation. The scale of destruction in Gaza is unimaginable. The immediate priority remains getting aid in at the speed and the volume needed.

[Mr Speaker]

We come to the leader of the Liberal Democrats.

[Ed Davey (Kingston and Surbiton) (LD)]

May I associate myself with what the Prime Minister said about Jamaica, and indeed all the islands and countries affected by Hurricane Melissa? Our thoughts and prayers are with them all.

I am sure the whole House will also want to join me in paying tribute to Prunella Scales. I suspect I am not the only Member of the House with a “Fawlty Towers” DVD box set. She will be greatly missed.

Across Europe, in countries like Poland, Germany and France, we have seen evidence of dangerous Russian political interference. Last month, the former leader of a major party in Wales pleaded guilty to taking bribes to make pro-Russian statements. The evidence shows that Nathan Gill was a close confidant of the current Reform party leader for years. Does the Prime Minister agree with me that it is time we had an in-depth investigation into Russian meddling and money in British politics?

[The Prime Minister]

I join in the right hon. Member’s comments on Prunella Scales.

On the question of Russian interference, it is a serious problem in countries across Europe, including in our country, where it is a constant threat. For NATO allies, the conflict in Ukraine and dealing with Russian aggression is the No. 1 issue. That is why I have to say the Reform party would be an absolute disaster for our defence. We are a trusted member of NATO; we would not be a trusted member if we were Putin-friendly. We are leading the coalition of the willing, giving security and comfort to 30 other countries. That would collapse under Reform because it is Putin-friendly, and it would be a real threat to our defence and our security.

[Ed Davey]

I am grateful for the Prime Minister’s reply, and I agree with him on Ukraine, but I do hope he will look to have an investigation into this Russian interference in our politics.

Last week, I questioned how the Prime Minister can accept the damage of Brexit while refusing to do anything meaningful about it. The damage is clear, with the Financial Times reporting that lower productivity growth alone has blown a £20 billion black hole in the public finances—just part of the Brexit black hole that the Conservatives and Reform will not apologise for. Last week, he rejected my plan for a new customs union, so can I ask him what action he will take to change the Brexit deal, or is he just planning to complain about it?

[The Prime Minister]

The right hon. Member must have overlooked the fact that there was a UK-EU summit earlier this year, in which there were 10 strands to the change that we have already agreed in relation to the relationship with the EU, including closer trading relationships and closer work on defence and security; that is an iterative process that we will continue into next year. But he is absolutely right about the botched deal of the last Government and the damage that has done to our economy. We are just seeing some of the figures coming through in relation to that. That is one of the factors behind the way they crashed the economy.

[Mr Jonathan Brash (Hartlepool) (Lab)]

Q4. Football is a game based on fairness, yet brilliant clubs that unite communities every week, like Hartlepool, are being held back by a fundamental unfairness. The 3UP campaign—backed by 72 national league clubs, including Hartlepool United, and championed by Hartlepool legend Jeff Stelling—seeks to grant a third promotion place from the national league to league two. This simple change would be transformational for these historic clubs, many of which are over a century old. While I accept Arsenal may never directly benefit from such a change, does the Prime Minister agree that this campaign to put football first would help the new football regulator to protect club heritage, ensure stability, and put fairness and fans back at the heart of our game?

[The Prime Minister]

Can I start by wishing Hartlepool United the best for this season? My hon. Friend will appreciate that the structure of the leagues is a matter for the leagues themselves, but I commend his campaign and everything that he is putting behind it. I also pay tribute to the staff, fans and players of Sheffield Wednesday at this difficult time. We have delivered the Independent Football Regulator to stand up for fans and to make sure that clubs have fit and proper owners. The Conservatives used to support that, but now they oppose it.

[Gavin Robinson (Belfast East) (DUP)]

The Prime Minister has a deep understanding of policing in Northern Ireland and its importance. He knows about the ongoing national security threat and about the additional costs of dealing with the legacy of our past. He knows that the Police Service of Northern Ireland has been underfunded, and that the Northern Ireland Executive have rightly brought forward a stability programme for it. He also know that it is under strength; in 2020, New Decade, New Approach suggested that there should be 7,500 police officers in Northern Ireland, but today there are 6,200.

Does the Prime Minister know, however, that the Treasury did not look favourably on a request to draw on the reserves for a data breach that cost £120 million? Does he recognise that, in Treasury terms, the incident was “unforeseen, unaffordable and unavoidable”, and therefore matches the Treasury’s criteria? To set aside that money in-year would be 10% of the PSNI’s overall budget—it is not affordable. Can I ask him to think about this issue again, in engagement with the Chancellor, and to ensure that our Police Service of Northern Ireland and the national security threat that it faces are not hampered by in-year financial rules?

[The Prime Minister]

I thank the right hon. Gentleman for raising this important issue, which I know is of real concern to him. I reassure him that I am in regular contact with Chief Constable Jon Boutcher and the PSNI on it, as he would expect. As he is aware, we provided a record settlement of £19.3 billion a year on average for the Executive, and we invested £113 million in additional security funding for the PSNI to help to address specific security challenges. While it is for the Executive to set the PSNI budget, I reassure him that our commitment is to keeping people safe in Northern Ireland.

[Alan Strickland (Newton Aycliffe and Spennymoor) (Lab)]

Q5.   I am speaking on behalf of my constituents Shannon and Tyler, who lost their two-year-old son Hudson earlier this year. Worried about their son, they called 111 and were told that he had gastroenteritis. In fact, Hudson had a twisted bowel and, after being rushed to hospital a few days later, he tragically died.Shannon and Tyler are full of praise for the NHS medical staff who worked so hard to save their son’s life, but they just wish they had been offered an in-person appointment sooner, which might have given a more accurate diagnosis. They want Hudson’s legacy to be better access to face-to-face NHS appointments for children under five, so that other families do not face this tragic situation. Their online petition on the matter has gained over 80,000 signatures. Will the Prime Minister join me in sending the best wishes of the House to Hudson’s family, and will he ensure that they meet a Health Minister to discuss their courageous campaign?

[The Prime Minister]

I thank my hon. Friend for raising that tragic case. I am sure that I speak for the whole House in saying that we send our sympathies and thoughts to Hudson’s parents, Shannon and Tyler. I will make sure that they get the meeting that he has asked for. This is exactly why we are working to improve access to face-to-face appointments for those who want one. To enable that, we have delivered the largest cash uplift for GPs in a decade, have put over 2,500 GPs into general practice, and are upgrading 1,000 surgeries to deliver 8 million more appointments.

[James McMurdock (South Basildon and East Thurrock) (Ind)]

Q2. Earlier this week, I got to see the very best and some of the worst of our national health service. When my own daughter needed it, it was there, but when an 89-year-old gentleman in the restaurant I was eating at collapsed, it took over an hour and 15 minutes from my first call to the arrival of two exhausted paramedics.Basildon hospital has just been downgraded to inadequate in the latest Care Quality Commission report. I invite the Secretary of State for Health and Social Care—or the Prime Minister, if he has time in his schedule—to visit Basildon with me so that he can thank the staff for their exceptional work and get to grips with the problems they are facing.

[The Prime Minister]

I thank the hon. Gentleman for raising this issue and for the two examples that he has given. The downgrading of Basildon hospital is deeply disappointing. The Care Quality Commission has set out immediate actions for the trust leaders to deliver improvements. Our decisions in government have seen a £26 billion boost for our NHS, helping to deliver over 5 million extra appointments. I gently point out that he was elected to represent a Reform party that would dismantle our NHS and charge people to see their doctor.

[Anneliese Midgley (Knowsley) (Lab)]

Q7. Reform says that it stands up for the working class, but the truth is that it never has—its Members voted to block the Employment Rights Bill again and again. Does the Prime Minister agree that only this Government are on the side of working people? It is Labour that is creating tens of thousands of jobs, like in our deal with Turkey; it is Labour that is getting rid of zero-hours contracts; and it is Labour that is protecting workers from unfair dismissal from day one.

[The Prime Minister]

I am proud that we have delivered the biggest upgrade to workers’ rights in a generation—which the Tories and Reform have voted against at every turn, as they always do with any form of workers’ rights and protections. The deal that we struck on Monday with Turkey is worth £8 billion, 20,000 jobs and 10 years of work in manufacturing the Typhoons. It was possible only because we are a trusted member of NATO. Reform would be an absolute nightmare on defence—it would not be a trusted member of NATO because it is Putin-friendly.

[Clive Jones (Wokingham) (LD)]

Q6. Targets for cancer patients beginning treatment within 62 days have not been met by any NHS trust for 10 years—a legacy of the last Conservative Government. If those targets had been met in every month of 2025, so far nearly 3,000 breast cancer patients would have started their treatment on time. Will the Prime Minister ensure that the national cancer plan, which I asked for a year ago, makes it possible for the 62-day target to be met, along with recruiting much-needed cancer specialists and replacing outdated equipment?

[The Prime Minister]

I thank the hon. Gentleman for raising this matter, which I know is personal to him. We are investing £600 million to improve diagnostic capacity and are rolling out new radiotherapy machines, including, I am pleased to say, in his local trust. We have seen real improvements, with 148,000 more people now having cancer diagnosed or ruled out within 28 days, but I acknowledge that there is more to do. The national cancer plan will set out how we will go further and deliver the best care for every patient.

[Ian Lavery (Blyth and Ashington) (Lab)]

Q8. The big four banks have been allowed to abandon our high streets, basically closing their branches with impunity. Between 1999 and 2025, my constituency alone lost banks in Guide Post, Newbiggin-by-the-Sea, Bedlington and Blyth. Meanwhile, those banks made more than £40 billion profit in the last year alone—they are absolutely drowning in cash. The manifesto pledge to roll out 350 banking hubs is to be welcomed, but its quirky—almost bizarre—qualifying criteria need detailed revision. Will the Prime Minister commit to a wholesale review of personal face-to-face banking, which would enable local residents and businesses, alongside many vulnerable people, to access their own money in their own time on their own high street?

[The Prime Minister]

I know how important face-to-face banking is on our high streets. As my hon. Friend says, we have committed to rolling out 350 banking hubs across the United Kingdom, and over 180 are already open. However, I want to reassure him that 350 is not the limit; although decisions over hubs are taken independently, they can be rolled out wherever a community needs one. I am happy to make sure the relevant Minister follows up with details for him.

[Mike Wood (Kingswinford and South Staffordshire) (Con)]

Q9.   I am proud that the last Government introduced the triple lock, and we have committed to keeping it. [Interruption.]

[Mr Speaker]

Order. The problem is, one or two of you are trying to catch my eye. If we don’t get through this, you won’t get a chance.

[Mike Wood]

Thank you, Mr Speaker.

The triple lock was a great achievement of the previous Government, and we will be keeping it. From April, pensioners with private pensions as low as £2 a month will be paying income tax for the first time. At last year’s Budget, the Chancellor was clear that extending the freeze on personal allowances would breach Labour’s manifesto commitment. Will the Prime Minister prove the media speculation wrong, keep his promise and guarantee that there will be no extension to the freeze on personal allowances?

[The Prime Minister]

The freeze was introduced by them. That is why it is coming in next year.

[Graham Stringer (Blackley and Middleton South) (Lab)]

Q12. The hon. Member for West Suffolk (Nick Timothy), when he was an official, produced a devastating report on the Home Office. Reading it, it shows a Department characterised by disarray and defeatism. There have been 12 Home Secretaries over the past 30 years. Some were better than others, but none managed to get the Department to deliver the services that people should be able to expect in this country. Will the Prime Minister give the new Home Secretary the necessary resources and policy interventions to ensure that she can be successful?

[The Prime Minister]

Yes. She is bearing down on the challenges at the Home Office—most of them inherited from the last Government. We will make the changes necessary, and I have every confidence in the Secretary of State to do so.

[Mr Speaker]

I call the Father of the House.

[Sir Edward Leigh (Gainsborough) (Con)]

Q10. Given all the hatreds there are in the world today, was it not a lovely moment to see the King and the Pope pray together in the Sistine chapel? Does it not give us hope that these historic divisions can be resolved? Does it not give us hope that, despite the fact that Ukraine and Gaza may seem intractable problems, if we have the will to preserve the freedom of all people to live in their own country, and if we have the will to have faith in our common humanity, these problems can be resolved and we can win through?

[The Prime Minister]

I agree. I thought that the King and the Pope praying together sent an incredible message to the world and was very powerful. I agree that if we all work together, we can bring people together, notwithstanding the very many difficulties and challenges around the world and in our own country. It is why we should, so far as we can, unite on national patriotic renewal in this country, rather than have the toxic division we see from some on the Benches opposite.

[Daniel Zeichner (Cambridge) (Lab)]

Q14.   Cambridge is one of the most intensive science and innovation clusters in the world, and that success is based on openness to talent. At the moment, in many American universities there are many well-qualified people pondering their futures. That presents a fantastic opportunity, but it is a global competition. What are our Government doing to make the destination of choice for those people the United Kingdom?

[The Prime Minister]

My hon. Friend’s constituency is just one example of why the United Kingdom is a world leader in educating and attracting the brightest minds. Our immigration White Paper includes changes to make sure that more of the world’s best graduates and entrepreneurs start their careers and businesses here. We are also boosting our research and development sector with more than £86 billion, to ensure that we continue to attract the best and the brightest.

[Alison Griffiths (Bognor Regis and Littlehampton) (Con)]

Q11.   Last weekend I spoke to Paul, who runs Bah-Humbug Sweets in Littlehampton, and yesterday I heard from Matt, a tech entrepreneur whose British company employs thousands worldwide. Their businesses could not be more different, but they both told me the same thing: this Government are piling on new taxes, regulation and costs that are making it harder to create jobs, invest and grow. So when will the Prime Minister stop choking opportunity and start backing the people who create jobs in the first place?

[The Prime Minister]

Our small business plan was widely welcomed by small businesses across the country, not least because of their input into it. The hon. Lady complains about the measures we had to take at the last Budget, including national insurance—[Interruption.] The Conservative Front Benchers are saying that we chose to take them, but they still cannot say whether they would reverse them. They know nothing about the damage they did to our economy.

[Janet Daby (Lewisham East) (Lab)]

I am wearing all black today to demonstrate my sorrow over a fatal stabbing that took place in my constituency yesterday. We all know that one death is one death too many, but I have had two deaths in my constituency in the last few weeks. My community needs reassurance. Knife crime must end. Will the Prime Minister say what more his Government are doing to tackle knife crime?

[The Prime Minister]

I thank my hon. Friend for raising these tragic cases, which have a huge impact on families, friends and communities. I know that she is a passionate and dedicated campaigner on this issue. Every single life lost to knife crime devastates communities. That is why we banned zombie knives and ninja swords and are strengthening controls on online knife sales. We are also giving stronger powers to the police in our Crime and Policing Bill, which both the Conservatives and Reform voted against.

[Olly Glover (Didcot and Wantage) (LD)]

Q13. I recently had the privilege of visiting Fitzwaryn school, the only special school in my Oxfordshire constituency, to see the excellent care and education it provides. Given the urgent need for more funding for additional special schools and to enable special schools to spread their expertise to mainstream schools, what does the Prime Minister say to parents and education workers who are desperately worried by his Government’s decision announced last week to delay reforms to the special educational needs and disabilities system?

[The Prime Minister]

I am grateful to the hon. Member for raising that. I think the broken SEND system has been raised with me more frequently than any other issue at Prime Minister’s questions. We need to review it because it is not working for any of those involved, particularly children and parents. It is important that we get it right and, in so far as we can, that we get a consensus on how we go forward. That is what we are attempting to do.

[Dame Siobhain McDonagh (Mitcham and Morden) (Lab)]

A fourth patient has entered the glioblastoma drug trial set up in memory of my late sister. Today, we are joined by Ben Trotman, a patient of a similar trial in 2022 that was funded by the Jon Moulton foundation. Since then, Ben has married Emily, and in March they welcomed beautiful baby Mabel. When will the National Institute for Health and Care Research spend the £40 million given in 2017 for trials on brain tumours, or will glioblastoma patients always have to rely on the grief stricken or the philanthropist for life and hope?

[The Prime Minister]

I begin by paying tribute to my hon. Friend’s sister Margaret, who was a guiding figure in the Labour party and left a powerful legacy in helping us to tackle brain cancer. We are determined to improve cancer survival rates and hit all NHS waiting times in relation to cancer so that no patient waits longer than they should. That is why we are investing £1.5 billion in new surgical hubs and diagnostic scanners to help deliver over 30,000 more procedures and over 1.2 million diagnostic tests.

[Caroline Voaden (South Devon) (LD)]

I recently met about 20 independent local traders in Totnes who are furious that the last bank in town will close in January and that Link has refused to consider a banking hub. My businesses and constituents—1,100 of them have signed a petition—deserve better. The Prime Minister just told the hon. Member for Blyth and Ashington (Ian Lavery) that a banking hub can be rolled out wherever a community needs one, so will he now back my campaign, ask his Ministers to write to Link and instruct it to grant a banking hub to Totnes, and review the eligibility of rural towns for such hubs so that we can keep our vital high streets alive?

[The Prime Minister]

I thank the hon. Member for raising that. She will have heard the answer I gave a few moments ago. I will ensure that she gets a meeting with the relevant Minister so that she can put the case for the banking hub in question.