debates/debates2025-05-21c conversation_11
Source: hansard.parliament.uk (2025-05-21)

UK Parliament Hansard data: debates/debates2025-05-21c conversation_11

Sarah Owen:While the economy is showing signs of improving, many pensioners are still impacted by the cost of living crisis. People in Luton who have worked hard all their lives are seeing their precious savings slip away. Will the Prime Minister tell us what measures he will take to help struggling pensioners in towns like mine? \p Keir Starmer: We all know that the economy was left in an absolute mess by the Tories. We had to stabilise the economy with tough decisions, but they were the right decisions. Because of them, the economy is beginning to improve: there were those growth figures last year—we had the highest growth in the G7; there were four interest rate cuts in a row; and there have been three trade deals. However, I recognise that people are still feeling the pressure of the cost of living crisis, including pensioners, and as the economy improves, we want to make sure that people feel those improvements each day as their lives go forward. That is why we want to ensure that more pensioners are eligible for winter  fuel payments as we go forward. As you would expect, Mr Speaker, we will make only the decisions that we can afford, and that is why we will look at that as part of a fiscal event. \p Lindsay Hoyle: I call the Leader of the Opposition. \p Kemi Badenoch: It was extraordinary listening to that last answer from the Prime Minister. Inflation was 2% when the Conservatives left office; it is now nearly double that. When will he recognise that it is Labour’s Budget that is driving up inflation? \p Keir Starmer: What the right hon. Lady forgot to say was that inflation rose to more than 11% on the Conservatives’ watch, and she did not say a word. I am confident that those numbers will come down; the Bank of England is confident that they will come down, too, which is why we have seen four interest rate cuts in a row. I notice that the right hon. Lady cannot resist grabbing any opportunity to talk the country down. She does not mention the growth figures, the interest rate figures, the record investment, wages being up more than prices, the 200,000 jobs created or the three trade deals. The reason is that the Conservatives have not learned and they have not changed. As George Osborne said, the Leader of the Opposition does not have a credible economic plan. \p Kemi Badenoch: That is laughable from the Prime Minister. He knows that inflation was brought down by us to 2%—bang on target. We were reacting to a war in Ukraine that brought inflation up all over Europe. While he is doing trade deals with countries such as the US and India, their inflation is going down, but it is going up here. Why? The Office for National Statistics says that the inflation figures are driven by significant increases in household bills. We warned him repeatedly that this is exactly what would happen—what his policies would do. We called it “awful April”. The Prime Minister came into office saying that he would tackle the cost of living crisis. He has failed. He has not got a clue, has he? \p Keir Starmer: The right hon. Lady talks of the Conservatives’ record. There was the disastrous Liz Truss mini-Budget; inflation was through the roof; there was a £22 billion black hole; living standards were at an all-time low; energy prices went through the roof; and mortgages went through the roof. We are taking measures to bring prices down. The EU deal will bring prices down; that is why supermarkets have welcomed it. What does she do? She opposes measures to bring prices down. \p Kemi Badenoch: The Prime Minister needs to stop whining about what the last Government did and look at what he is doing. He is the Prime Minister. Look at the numbers this morning. As if inflation figures were not bad enough, we have also learned that the Deputy Prime Minister is on manoeuvres. The Prime Minister has lost control of the economy and he has lost control of his Cabinet. The Deputy Prime Minister is sitting there staring at me. She knew exactly what she was doing when she briefed the papers. She is demanding eight new tax rises—as if we have not suffered enough. People out there are struggling. Businesses are struggling.  People are losing their jobs. We cannot have more tax rises. Will the Prime Minister rule out new tax rises this year? \p Keir Starmer: The right hon. Lady has not learned or changed. The Conservatives lost the election because of their appalling record on the NHS, on health, on prisons—you name it. Now she accuses everyone of whining about the impact that had on the country. It had a huge impact on working people across the country and they are absolutely right to complain about it. She wants to talk about the Deputy Prime Minister. The Deputy Prime Minister, working with the Chancellor, is building 1.5 million new homes, reforming our planning system, putting £7 billion into our economy, and bringing forward an Employment Rights Bill, which will be the single biggest upgrade to workers’ rights in a generation. \p Kemi Badenoch: That is desperate stuff. The whole House will have heard the Prime Minister refuse to rule out new tax rises. The whole House heard it: he did not rule them out. There is open warfare in his Cabinet. The Deputy Prime Minister is clearly calling the shots. What have we learned? We are heading for new tax rises. We know that inflation is up. It is just more and more bad news from a Prime Minister who has lost control. We heard the Prime Minister’s earlier answer on winter fuel. Let us try to get some more information. I shall ask him a simple question. It requires only one word: yes or no. Is he planning to U-turn on winter fuel cuts? \p Keir Starmer: I made it clear in my earlier answer that as the economy improves, we want to take measures that will impact people’s lives, so we will look at the threshold, but that will have to be part of a fiscal event. The Conservatives lost control of every element of the economy, of prisons, of borders, of the NHS—you name it—and now she has lost control of her party. The Conservatives are sliding into oblivion. They will have to trade on their past, because that is all they have. \p Kemi Badenoch: I made it really easy for the Prime Minister. It was a simple question—yes or no—and he could not answer it. I wonder how the public feel about a man who cannot give a straight answer to a simple question. Look at the MPs behind him—they are all cheering. When this inevitable U-turn on winter fuel comes, and it will, from a desperate Prime Minister, what will he say to the 348 MPs who went over the top and voted for the winter fuel cut last September? Just like the British public, how can any of them ever trust him again? \p Keir Starmer: It is only because of the measures that we have taken that the economy is improving, with growth at the highest rate in the G7, four interest rate cuts, and three trade deals, because countries want to trade with us. Those things are because of the decisions that we have made, and all those decisions were opposed by Conservative Members. They have learned absolutely nothing and they are going absolutely nowhere. \p Kemi Badenoch: This is a Prime Minister who says he is taking measures, but the jobs tax is killing jobs, inflation is up, and business confidence is down. Everyone is worried. He promised to cut bills, but today we see that they are rising because of his policies. He promised  not to raise taxes on working people, but his jobs tax means that people are losing their jobs. Every week, we come here with a new company that says it is shedding jobs, and that is on his watch. He promised to protect pensioners, but his winter fuel cut has driven thousands into hardship. His MPs hate this—he cannot see them, but they all look sick just hearing what it he is going to do. [Interruption.] They are laughing—[Interruption.] \p Lindsay Hoyle: Order. I expect better from Whips, and to Boyzone at the back, I have my eye on you. \p Kemi Badenoch: Mr Speaker—[Interruption.] \p Lindsay Hoyle: Order. Which one of you wants to leave first? [Interruption.] There we are, we have the first volunteer. Are you going to behave? I call the Leader of the Opposition to respond. \p Kemi Badenoch: His MPs are laughing, just as they laughed at the Budget. Hands up who here wanted winter fuel cuts? Not a single one of them. The fact is, this Prime Minister is destroying them. They need to look at what they are doing to the country. The truth is, and we all know it, that it is this Prime Minister, this Labour Government and their policies that are shafting the country, is it not? \p Keir Starmer: They look in pretty good form to me, and there are lots of them. The Leader of the Opposition talks about business confidence. I did not have time yesterday to read out all the businesses that have come out in support of our EU deal, and I do not have time today—it is a long list. I went immediately to Lidl and spoke to the staff there. They are delighted with the deal we put forward yesterday. Business like the work we are doing, and it is giving them confidence in the EU deal, but the right hon. Lady is opposed to each and every measure.