Kemi Badenoch
Main Page: Kemi Badenoch (Conservative - North West Essex)Department Debates - View all Kemi Badenoch's debates with the Cabinet Office
(1 day, 17 hours ago)
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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.