Oral Answers to Questions

Keir Starmer Excerpts

Wednesday 18th May 2022 Commons Chamber

[Mr Speaker]

We now come to the Leader of the Opposition, Keir Starmer.

[Keir Starmer (Holborn and St Pancras) (Lab)]

I, too, send my best wishes to Rangers. It has been quite an extraordinary story for that football club over the last few years.

A one-off tax on huge oil and gas profits would raise billions of pounds and cut energy bills across the country. The Chancellor rightly says there are two camps on this: you are either for it or you are against it. But in which camp does the Chancellor put himself? He says neither. Well, I am in favour of it. This is the question for the Prime Minister: is he for it, is he against it or is he sitting on the fence like his Chancellor?

[The Prime Minister]

I remind the House that the right hon. and learned Gentleman struggled to define what a woman is. If he cannot make up his mind on that point, heaven help us. This Government are not, in principle, in favour of higher taxation; of course not. Labour loves it. They love putting up taxes. Dogs bark, cats miaow and Labour puts up taxes. What we want to do is take a sensible approach, governed by the impact on investment and jobs. That is the test of a strong economy, and it is by having a strong economy that we will be able to look after people, as we did during covid and as we will in the aftershocks of covid. I am proud to say it was revealed this week that unemployment has come down to the lowest level since 1974. I do not know how old he was, but I was 10 years old.

[Keir Starmer]

Hang on; last week the Prime Minister said he will have a look at the idea, and yesterday he voted against it. Anyone picking up the papers today would think the Government are for it, and now he says he is against it again. Clear as mud. To be fair, it is not like the rest of the Cabinet know what they think, either. On the same day, the Chancellor said it was something he is looking at and the Justice Secretary said it would be “disastrous.” The Business Secretary called it a “bad idea,” but he also said he would consider a Spanish-style windfall tax. One minute they are ruling it in, and the next they are ruling it out. When will the Prime Minister stop the hokey-cokey and just back Labour’s plan for a windfall tax to cut household bills?

[The Prime Minister]

Labour’s plan, always and everywhere, is to raise taxes on business. I remember the right hon. and learned Gentleman campaigning in 2019 on the biggest taxes for business that this country has ever seen. That is their instinct. This country and the world face problems with the cost of energy, driven partly by covid and partly by Putin’s war of choice in Ukraine. We always knew there would be a short-term cost in weening ourselves off Putin’s hydrocarbons and in sanctioning the Russian economy. Everybody in this House voted for those sanctions. We knew it would be tough, but giving in and not sticking the course would ultimately be a far greater economic risk. Of course we will look at all the measures we need to take to get people through to the other side, but the only reason we can do that is because we took the tough decisions that were necessary during the pandemic, which would not have been possible if we had listened to the right hon. and learned Gentleman.

[Keir Starmer]

He just doesn’t get it, does he? He doesn’t actually understand what working families are going through in this country. They are struggling with how they are going to pay their bills. While he dithers, British households are slapped with an extra £53 million on their energy bills every single day. Meanwhile, every single day, North sea oil and gas giants rake in £32 million in unexpected profits. Does he not see that, every single day he delays his inevitable U-turn—he is going to do it—he is choosing to let people struggle when they do not need to?

[The Prime Minister]

The right hon. and learned Gentleman says that this Government have no sympathy for people who are struggling and working. Let me tell him what we are already doing. We are already spending £22 billion. We are already helping people with the cost of living in any way that we can, but the reason why we can do that is that we took the tough decisions to get this country through covid, to make sure that we came out of lockdown in the way that was necessary, and to have a strong economy with robust employment growth. We will continue—[Interruption.] He talks about cutting taxes. In July, we will have the biggest tax cut for 10 years: £330 in cuts, on average, for 30 million people who are paying national insurance contributions. The reason why we can do that is that we have a strong and robust economy. I am going to look at all measures in future to support our people—of course I am—but the only reason why we can do that, and why our companies are in such robust health, is because of the decisions this Government have taken.

[Keir Starmer]

The Prime Minister is still pretending the economy is booming. He still has his head in the sand, in the middle of an economic crisis. He keeps saying that more help is coming, but we have heard it all before. On 13 May, he stood there and said,

“We will do more right now.”

A week has passed, and there has been nothing. On 19 April, he stood there and said:

“we will do more as soon as we can”.—[Official Report, 19 April 2022; Vol. 712, c. 60.]

A month has passed, and still nothing. The Chancellor said, “Wait until the autumn.” At least he is honest that the plan is to do nothing. Does the Prime Minister not realise that working people across the country cannot afford to wait while he vacillates? It is time to make his mind up.

[The Prime Minister]

I will tell the right hon. and learned Gentleman what has happened in the past month. We have got 300,000 more people off welfare and into work, on our Way to Work programme. It is because we get people into work that those families, those people, are £6,000 a year better off. It is by getting people into work that we fix the long-term problems of this economy. His answer, in addition to putting up taxes, is to borrow more—we heard it from the shadow Chancellor this morning. She says she wants to borrow almost another £30 billion; that is what she says. Do Members know what that means? It means more pressure on interest rates. It means pressure on mortgages. It means pressure on every family—on every man, woman and child—in this country. That is Labour economic policy. That is why there has never been a Labour Government who left office with unemployment lower than when they came in—that is the reality.

[Keir Starmer]

On the day when inflation went to 9%—the highest rate for 40 years—the least the watching public can expect is a Prime Minister who concentrates on the cost of living crisis. Clearly, he just cannot make his mind up, so let us have a look at who is for this and who is against it. On one side, we have the chair of Tesco; the chair of John Lewis; the Chair of the Treasury Committee; the Chair of the Education Committee; Lord Hague; and Lord Browne, the old chief executive officer of BP. They all support a windfall tax. Even the current boss of BP says a windfall tax would not discourage investment. On the other side, we have the right hon. Member for North East Somerset (Mr Rees-Mogg), who, when he is not sticking notes on people’s desks like some overgrown prefect, is dead set against it. When is the Prime Minister finally going to get a grip, stand up for the people of Britain and get on the right side of the argument?

[The Prime Minister]

Nothing could be more transparent from this exchange than Labour’s lust to raise taxes on business. We do not relish it. We do not want to do it. Of course we do not want to do it; we believe in jobs, in investment and in growth. As it happens, the oil companies concerned are on track to invest about £70 billion into our economy over the next few years, and they are already taxed at a rate of 40%. What we want to see is investment in the long-term energy provision of our country; Labour has signally failed to do this, cancelling our nuclear power investment. The people suffering from high energy prices in this country today have previous Labour Governments to blame for that mistake. Of course we will look at all sensible measures, but we will be driven by considerations of growth, investment and employment. I just remind the House that unemployment has now hit a record low—or for 50 years, I should say—and half a million more people are now in payroll employment than before the pandemic began.

[Keir Starmer]

So the Prime Minister is on the side of excess profits for oil and gas companies; we are on the side of working people—there you have it. He clearly does not like me pushing him on this, but the reason why I keep coming back to this subject, and why it is so frustrating that he has not acted, is that so many people are living through this nightmare and feel totally abandoned by their Government.

This week, I spoke to Phoenix Halliwell. A rare kidney condition means that Phoenix has to do dialysis from home, from 10 pm to 7 am, five days a week, just so he can take his daughter Rosie to school. His dialysis is life-saving, so he cannot turn it off. Even though his wife, who is a midwife in the NHS, works extra shifts, during the winter they had to turn their central heating off, and Phoenix skips meals to make ends meet, but their energy bill has still doubled. Phoenix says he feels like he is being “priced out of existence.” And it is not just him: millions of our disabled, elderly and vulnerable neighbours are at the sharp end of this crisis. They simply cannot afford to live with dignity.

The decisions we make here matter. The cost of indecision is enormous. People across the country need action now. The plans are already there; Prime Minister, stop the delay and work with us to put them in place. Do it for households that face bills they cannot afford, and do it for Phoenix, who simply cannot afford to wait.

[The Prime Minister]

I would be grateful if the right hon. and learned Gentleman could send me the details of that sad case. The NHS does cover the costs of those who are on dialysis. By the way, the Opposition voted against the vital investment in the NHS that this country needs.

I remind the right hon. and learned Gentleman, and the House, of the key point: none of this is possible—the investment in the NHS is not possible, the £22 billion that we have already put in is not possible and the further investment we are going to put in is not possible—without the strong economy that this Government have delivered. It is because we took the tough decisions that I have mentioned that we have record low unemployment —or a record low for the last 50 years. The Queen’s Speech that we have been debating is about putting in the infrastructure, skills and technology that will continue to build the platform for growth and jobs in this country. That is what this Government are committed to doing and that is the best way out of economic problems.

By the way, I thought it was fantastic to see Her Majesty the Queen open Crossrail. That has already delivered 72,000 jobs and will produce £90 billion for the whole of the UK economy. Let me ask the right hon. and learned Gentleman: who was the Mayor of London when Crossrail was first starting to be built? And who was the Prime Minister who completed it? We get the big things done. There has never been a Labour Government who left office with unemployment lower than when they began.