Oral Answers to Questions

Ed Davey Excerpts

Wednesday 2nd April 2025 Commons Chamber

[Mr Speaker]

I call the leader of the Liberal Democrats.

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

I associate myself with the Prime Minister’s earlier remarks, particularly about Myanmar and Thailand. I support the aid; despite the budget cuts, I hope we can be as generous as possible because of the humanitarian crisis there.

The Prime Minister has shown commendable leadership over Ukraine, with his plan for a military coalition of the willing against Putin. Will he now provide similar leadership with an economic coalition of the willing against Trump’s tariffs and for free trade, so we can avoid a global trade war and a global recession?

[The Prime Minister]

Every week the right hon. Gentleman tries to tempt me to make what I think is a false choice between our relationship with the US and our relationships with other countries, particularly in Europe. I think that is the wrong choice on defence, on security and on intelligence, for reasons that we have rehearsed across this Chamber. I also think it is wrong on trade and on the economy. We have a good deal of trade—a balanced trade relationship—with the US, and I believe that our interests are best served by calmly trying to secure a deal that is in our national interest, while at the same time preparing and leaving all options on the table.

[Ed Davey]

I hope the Prime Minister is able to cut a deal, but I increasingly fear that the deal will not be good enough to avoid a global trade war. That is why one of the options must be to work with our European allies, our Commonwealth allies and others, because if we do not tackle Trump’s tariffs we could be saying goodbye to free trade for a generation.

Turning to a domestic matter, three years ago the American private equity firm KKR bought a 25% stake in Northumbrian Water. Since then, people across the north-east have seen their water bills soar, while in the last year alone Northumbrian Water has dumped nearly 1 million tonnes of raw sewage into Durham’s Whitburn coast conservation area. KKR is now poised to buy into Thames Water, because Ministers have ruled out a special administration regime. Will the Prime Minister guarantee that Thames Water will not be allowed to repeat the same trick of putting up bills and dumping raw sewage at the same time? The Conservatives allowed it; he should not.

[The Prime Minister]

In relation to the beginning of the right hon. Gentleman’s comments, I really do not think it is sensible to say that the first response should be to jump into a trade war with the US. That cannot be the first response of the United Kingdom, and I will resist his urgings to do that.

In relation to water, the right hon. Gentleman is absolutely right to point out the Conservative party’s appalling record on water, just like its record on everything. That is why I am pleased that we have already passed the Water (Special Measures) Act 2025 to take the necessary measures, but we will go further.