debates/debates2025-01-29c conversation_9
Source: hansard.parliament.uk (2025-01-29)

UK Parliament Hansard data: debates/debates2025-01-29c conversation_9

Damien Egan:If he will list his official engagements for Wednesday 29 January. \p Keir Starmer: Communities across the United Kingdom have been hit hard by Storm Éowyn. I spoke to the leaders of the devolved Administrations in Scotland and Northern Ireland over the weekend to discuss working with them on the support that is required, and to pay tribute to all those responding on the frontline.

Kick-starting economic growth is the No. 1 mission of this Government. It will put more money in people’s pockets and will deliver on our plan for change. Today the Chancellor announced our next steps to deliver that plan: a new Oxford-Cambridge corridor, redeveloping Old Trafford, and supporting a new runway at Heathrow. We are removing the barriers to investment, supporting innovation, and going further and faster to boost growth.

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. \p Damien Egan: This April the state pension will increase by £470 a year, and over the course of this Parliament it will increase by up to £1,900, benefiting millions of  pensioners. Does the Prime Minister agree that means-testing the state pension would do severe harm, and will he confirm that this Government will always protect the state pension and the triple lock? \p Keir Starmer: Let me be absolutely clear: there will be no means-testing of the state pension under this Labour Government. We are committed both to the triple lock and to the principle that people should receive pensions based on their contribution, regardless of their wealth. My hon. Friend is right: 12 million pensioners will receive a £470 increase in April. When people such as the Leader of the Opposition say that they want means-testing, that means a cut. The difference between us is that they would cut pensions and we are increasing them. \p Lindsay Hoyle: I call the Leader of the Opposition. \p Kemi Badenoch: May I take this opportunity to solemnly commemorate the 80th anniversary of the liberation of Auschwitz? We remember the 6 million Jewish men, women and children who were murdered. The Holocaust stands as a unique evil in human history.

Yesterday the Prime Minister set his growth test. He said that if a policy is

“good for growth…the answer is ‘yes’, if it’s not then the answer is ‘no’.”

This morning the Chancellor embraced a series of Conservative policies. Although many are welcomed, they will take years to deliver. When the Conservatives left office, we had the fastest economic growth in the G7, but what are the Government doing for growth now? They are destroying it. Let us look at the employment Bill. The Government’s own figures say it will cost business £5 billion a year. It clearly fails the Prime Minister’s growth test. Will he drop it? \p Keir Starmer: I think the proposition that the Conservatives left a golden inheritance was tested on 4 July, which is why they are standing over there.

The Leader of the Opposition asked what we are doing. The Office for National Statistics says that we have the highest investment for 19 years. PwC says that this is the second-best place to invest in the world. The International Monetary Fund has upgraded our growth, predicting that the UK will be the fastest-growing major economy in Europe. Wages are up and inflation is down. However, there is more to do. We are reforming planning and regulation, building the new homes that we need, and supporting a third runway at Heathrow. As the Leader of the Opposition admitted to the CBI in November,

“there is no point in me just complaining about Labour when it was obvious that we Conservatives lost the confidence of business.”

We are not taking lectures from them. \p Kemi Badenoch: The Prime Minister does not want to talk about the employment Bill because he does not know about it. Last week he misled the House. He was not on top of his own Education Bill— \p Lindsay Hoyle: Order. We cannot accuse the Prime Minister of misleading the House. [Interruption.] We cannot do it. I am sure there are words that the Leader of the Opposition would prefer to use. \p Kemi Badenoch: Last week, the Prime Minister claimed to have laid down an amendment that he had not made. He does not know what is going on in here or out there. Last week, I spoke to a woman running a business in Exeter. She is terrified of taking on new staff. She is struggling to keep her head above water, dreading what this Government will do next. She is not alone. The Federation of Small Businesses says 92% of small employers are concerned about the employment Bill. Clauses 1 to 6 make it harder for businesses to hire new employees—often young people looking for their first job. This is not an employment Bill; it is an unemployment Bill. Given these clauses, will he drop his Bill and show that he is not anti-growth? \p Keir Starmer: We believe in giving people proper dignity and protection at work. That is why we are proud of our record on supporting workers. The Conservatives consistently vote against any protection for working people, and the Leader of the Opposition’s consistent refrain is that there should be less, but we are driving growth on behalf of working people. Good work rights are consistent with growth—every good business knows that. On top of planning reform, the building of houses and supporting aviation, the Chancellor this morning spoke of the Oxford-Cambridge growth corridor, redeveloping Old Trafford, and manufacturing at East Midlands airport. We want to grow the economy; the only policy the Leader of the Opposition has got is to shrink pensions. \p Kemi Badenoch: All the Prime Minister’s ideas are the ones that we thought up. He needs to make sure that we deliver growth now, as well as in the future. To grow our economy, we must get more people off sickness and welfare, and into work. Clauses 8 and 9 of the unemployment Bill take us in the opposite direction by increasing entitlements. The Government themselves—his Government—estimate that these changes will increase business costs from £600 million to £1 billion a year in sick pay. That will mean higher prices, fewer jobs and less growth. Will he drop these measures from the Bill? \p Keir Starmer: No. I think they are good for workers and good for growth. This is the same argument that the Conservatives made against the minimum wage and every protection for workers. The Leader of the Opposition says that they are their ideas. She says she supports a third runway at Heathrow. Her shadow Transport Secretary says that it would be “calamitous”. The shadow Business Secretary is busy writing letters opposing airport expansion in his own back yard. The shadow Chief Secretary to the Treasury says the Oxford-Cambridge idea is “flawed” and he is against it. We are the coalition of builders; they are the coalition of blockers. \p Kemi Badenoch: The Prime Minister forgets that his own Chancellor blocked an airport in her constituency. They are hypocrites.

Let us talk about the employment Bill. Part 1 of the Bill means that a new employee could start a job in the morning and take their employer to a tribunal that afternoon. It is no wonder that this Bill has been called an “adventure playground for lawyers”. This Bill is terrible for business, but it is great employment for lawyers. I know the Prime Minister loves the legal profession, but he needs to stop being a lawyer and start  being a leader. This is another measure in the Bill that fails his growth test. Will he show some leadership and drop it? \p Keir Starmer: I understand that the Leader of the Opposition likes straight talking: she is talking absolute nonsense. She knows, and anybody who understands anything about the Bill or any employment law will know, that you cannot start in the morning and go to a tribunal in the afternoon. We know she is not a lawyer, she is clearly not a leader, and if she keeps on like this, she is going to be the next lettuce. \p Kemi Badenoch: The Prime Minister does not know what his Bill is doing. He should listen to business, which is terrified of this Bill. The only workers he cares about are lawyers, but it is not just lawyers benefiting from this Bill. Who else benefits? It is not taxpayers; they will be paying for even more welfare. It is not young workers; they will not get their first break. It is definitely not businesses; they are being hammered with yet more burdens. Who benefits? It is the trade unions. Part 4 of the unemployment Bill—[Interruption.] Labour Members have not read it. Part 4 of the unemployment Bill is the biggest expansion of trade union powers for a generation—[Interruption.] Exactly; thank you. The public will have heard them cheer. Rather than deregulating for business, which creates growth, he is deregulating for the unions. Clause 61 alone reduces the notice period for strikes to just one week. Given that strikes are catastrophic for growth, will he drop part 4 of the Bill? \p Keir Starmer: It is good for working people, and it is good for the economy. The right hon. Lady should keep up: the CBI has welcomed our positive steps this morning. The Chancellor has given a brilliant speech on the economy, fixing the mess the Conservatives left and growing our economy, and the CBI has said it celebrates this

“positive leadership and a clear vision to kickstart the economy”.

That is the difference. We are growing the economy; the Conservatives left it in a complete mess. \p Kemi Badenoch: The arrogance of the Prime Minister is that he thinks that it is his Government who create growth. He is wrong. It is business that creates growth. Our economy is built by entrepreneurs, risk-takers and the hard graft of working people. They know that you cannot tax your way to growth, you cannot borrow your way to growth, you cannot legislate your way to growth. Other countries are serious about freeing business from red tape. President Trump is doing it in America. Argentina is taking a chainsaw to regulations. Even the EU is not going as far as this left-wing Government. This Bill will put us at the bottom of the pack. Added to the jobs tax and the family business tax, it is no wonder that wealth creators are fleeing Britain in droves. The Chancellor is desperately trying to save her reputation. She knows Labour has damaged growth. This Bill manifestly fails the Prime Minister’s own growth test. If he will not drop the unemployment Bill, what is the point of his growth test? \p Keir Starmer: The right hon. Lady has got a nerve. The Conservatives broke the economy and completely destroyed it. They broke the health service and completely destroyed it. They ruined the prisons and everything  else you can mention. They failed on every front. They are in no position to give us lectures on anything. She says that she accepts they failed and they are changing, but they have learned absolutely nothing.