Liz Saville Roberts (Dwyfor Meirionnydd) (PC)
The Secretary of State for Scotland (Mr Douglas Alexander)
The measures announced by the Chancellor at the Budget will help families right across Scotland. Scrapping the two-child limit will benefit 95,000 Scottish children. We are putting more money into the pockets of 220,000 people in Scotland through increases to the national minimum and living wage, and the triple lock pension increase will benefit around 1 million Scottish pensioners. We are also cutting energy bills by up to £300 for those most in need.
Graham Leadbitter
While the Labour Westminster Government have been killing jobs, hiking energy bills and exacerbating the cost of living crisis, yesterday the SNP Scottish Government’s budget cut child poverty, boosted funding for the NHS and slashed income tax for hard-working families. A clear majority of workers in Scotland will pay less tax than those in the rest of the UK. Does the Secretary of State support the action in the SNP’s budget, or would he prefer that the lowest earners in Scotland paid more tax, as they do under Labour?
Mr Alexander
What is the reality? The governing philosophy of the Scottish National party is 19th-century nationalism. What is the reality of what we saw yesterday? The 19th budget from John Swinney. The idea that after 18 goes, the SNP will get it right at the 19th is frankly risible. We have the same record of failure with the SNP. If people want a new direction, they will have the chance to vote for it in May.
Liz Saville Roberts
England-only projects such as Northern Powerhouse Rail give the Scottish Government the Barnett consequentials that they rightly choose to use on cost of living support such as the Scottish child payment, but Wales is denied any such extra funding. The Secretary of State’s Government have committed to learning lessons from HS2. Why can Wales not have the same means? I assure him that would allow a Plaid Cymru Welsh Government to spend in order to alleviate child poverty.
Mr Alexander
I think 19th-century nationalism is a bad prescription for Scotland, and it is also a bad prescription for Wales. We are proud of the fact that we are increasing public investment not just in rail, as we have heard today from the Transport Secretary, but more broadly across public services in every part of these islands.
Patricia Ferguson (Glasgow West) (Lab)
The Secretary of State is aware that the Scottish Affairs Committee recently conducted an inquiry into the Thistle safer drug consumption room in Glasgow. I hope that this innovative facility will help to cut drug death numbers in Scotland, but does he agree that the Thistle on its own cannot end the drug crisis? Does he therefore agree that a real-terms cut of £1.3 million to alcohol and drug services was entirely the wrong move in yesterday’s Scottish budget?
Mr Alexander
This is literally and figuratively a deadly serious issue. As we have just heard from those on the SNP Benches, the SNP will be claiming in the coming months that this is as good as it gets for Scotland, but the reality is that its shameful record in Scotland is more than 6,800 drug deaths since it declared a public health emergency. That, let us be clear, is the worst drug-related death rate in Europe. It is a shameful failure by the Scottish Government. Despite all their claims about the budget yesterday, once again it was a missed opportunity to take a better approach. We have provided the resources, but alas we have a Scottish Government who are out of time, out of ideas and failing in terms of public health.
Kirsteen Sullivan (Bathgate and Linlithgow) (Lab/Co-op)
After 19 years of an SNP Government, does the Secretary of State agree that yesterday’s budget reflects broken public services and decades of economic stagnation? For many families, that means there is just too much month at the end of the money.
Mr Alexander
What is the reality after yesterday’s budget from the Scottish Government? The reality after 19 SNP budgets is that hundreds of thousands of us are stuck on NHS waiting lists in Scotland; over 10,000 children are waking up in temporary accommodation, with no permanent home; and councils are unable to afford even the basics. Members should look at the comments yesterday about what the Scottish Government did to local government. They do not learn, they do not understand and they are out of time.
Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
One way to lessen the bite of the cost of living for hard-working Scots would be to cut their taxes, letting people keep more of their hard-earned money. Unfortunately, for the nationalists that appears to be anathema. Instead, they are increasing foreign aid spending, which is reserved, to £16 million. They are introducing yet more tax bands and more new taxes, but nothing to incentivise people to find good, well-paying jobs. Conservatives know that you cannot tax a nation into prosperity. Does the Secretary of State agree?
Mr Alexander
Why did the Conservatives deliver a decade of low growth, high inequality and high taxes when they were last in power? Let us take a moment to have a look at their record. There was an 11% rate of inflation under the Conservative Government of which the hon. Member was part, interest rates hit the highest level in 40 years, and mortgages went up by £221 a month for families who were forced to remortgage after the mini-Budget. There are many people who have interesting observations on how to run an economy, but Conservative Front Benchers are not among them.
Alan Gemmell (Central Ayrshire) (Lab)
Chris Kane (Stirling and Strathallan) (Lab)
The Secretary of State for Scotland (Mr Douglas Alexander)
Just last week, we launched the UK Government’s £140 million local growth fund, which will help to deliver economic growth to five Scottish regions. Scotland will also benefit from around £700 million of other local and regional project funding over the next three years. In addition, as we pointed out in relation to the Budget, the UK Government have provided the Scottish Government with the largest block grant in the history of devolution.
Alan Gemmell
I thank the Secretary of State for the announcement of £11 million of local growth funding for Ayrshire. Ayrshire boasts internationally successful businesses in the engineering, advanced manufacturing, aerospace, defence and energy sectors, and I have been working with my excellent Ayrshire colleagues and the Ayrshire chambers of commerce to ask businesses what more we can do to grow the economy. Does the Secretary of State agree that we must support Ayrshire’s most successful sectors and ensure this region plays its part in growing Scotland’s economy?
Mr Alexander
Absolutely. I welcome the work of the ambitious Ayrshire consultation, and pay generous tribute to the work that my hon. Friend is doing. When I was Trade Minister, I visited companies including Ecocel and GE Aerospace in Ayrshire, and saw for myself the extraordinary potential for growth-driving sectors such as advanced manufacturing. As part of the more than £200 million the UK Government are investing in Ayrshire, the local growth fund will provide flexible, targeted support to help unlock exactly that potential.
Kenneth Stevenson
After years of increases to the cost of living, my Airdrie and Shotts constituents are understandably impatient for change, and want to see the benefits of economic growth in their communities and in their pockets. Can the Secretary of State provide further detail on how this Government are supporting the growth of local economies in North Lanarkshire, and what role does he see AI, advanced manufacturing and life sciences playing in that growth by helping to develop supply chain resilience locally?
Mr Alexander
Of course, North Lanarkshire has been at the heart of Scottish manufacturing for many decades. Since 2019, it has actually grown faster than the national average in Scotland, due to its highly skilled workforce and ambitious local development plans. I am delighted that large US companies such as CoreWeave have recognised that potential, with CoreWeave having invested £1.5 billion in North Lanarkshire’s growing AI infrastructure. I can assure my hon. Friend that North Lanarkshire has a strong advocate and supporter in the UK Government—we are determined to fulfil that potential.
Liz Twist
Buses are hugely important to our communities and our transport network, so it is vital that Falkirk-based Alexander Dennis Ltd and its supply chain, including Dellner Glass in Consett in my constituency, are supported. It has taken the SNP First Minister over a year to recognise that. Can the Secretary of State set out how he is working with other Departments to ensure that jobs and the company not only survive, but thrive?
Mr Alexander
Of course, I warmly welcome the decision to keep Alexander Dennis’s Falkirk and Larbert sites operational. That will be a huge relief to the talented workforce, not just in those parts of Scotland, but at Dellner Glass and other parts of the supply chain. I recently met the president and managing director of Alexander Dennis, Paul Davies, to discuss its strategic plans and the growth of UK bus manufacturing, and I am also supporting the positive progress made by the Department for Transport’s UK bus manufacturing panel—the first of its kind—which brings industry leaders such as Alexander Dennis together with metro mayors to support manufacturing, boost regional economies and create jobs.
Mike Reader
As chair of the international trade and investment all-party parliamentary group, I am pleased that we are running the power of place campaign to encourage colleagues to highlight incredible small businesses that are exporting out of their constituency. Does the Secretary of State agree that this initiative and others such as Brand Scotland are invaluable for showcasing the power of Scottish products in markets across the world, and will he meet me to explore the ways in which we can improve exports out of Scotland?
Mr Alexander
In my previous role as a Trade Minister, I was proud to promote world-class Scottish products from satellites to whisky. Since 2024, the Government have been working to extend those international trading benefits. For example, the UK-India trade agreement will boost the Scottish economy by an estimated £190 million a year. Both Brand Scotland and the power of place can help small businesses in Scotland and elsewhere to increase their global exports. I pay generous tribute to my hon. Friend and thank the international trade and investment all-party parliamentary group for its important work. I would be pleased to hear more from him about the work we can do together.
Euan Stainbank
In November, I called for urgent intervention to support the Forth valley’s industrial economy. Since then, we have a £150 million deal to protect 500 jobs at Grangemouth’s ethylene plant, £14.5 million in the Budget to unlock hundreds of new jobs quicker at Grangemouth, such as those announced at MiAlgae, and £9.8 million of local growth funding announced at Forth Valley college last week, despite some nationalists moaning that the money should have been sent to St Andrew’s House rather than to Falkirk, Clackmannanshire and Stirling. What further steps will the Secretary of State be taking to support the vast economic potential of the Forth valley?
Mr Alexander
Just last week, I was with my hon. Friend in Falkirk announcing £9.8 million-worth of funding for the Forth valley region as part of the new local growth fund. Meanwhile, the UK Government are working hard to secure further investment for the Grangemouth site. Tomorrow, the Minister, my hon. Friend the Member for Midlothian (Kirsty McNeill), will be in Scotland signing a memorandum of understanding for the Forth green freeport, unlocking £25 million in capital funding to support economic growth in the region. That, frankly, is the difference that having a Labour Government with Scots at the heart can make to economies such as Falkirk’s.
Chris Kane
Does the Secretary of State agree that yesterday’s SNP budget, which metes out another round of civic vandalism to local authority budgets, demonstrates a failure to understand that economic growth is built from the ground up and requires well-funded local authorities delivering schools, infrastructure and clean, safe communities? Does he also agree that Scotland needs a Labour Government at Holyrood, with the same ambition for growth being shown by this UK Labour Government, if it is to unlock its full economic potential?
Mr Alexander
I sense that my hon. Friend has forgotten more about local government financing than John Swinney will ever know. The reality is that the First Minister has been writing budgets for 19 years in the Scottish Government, while at the same time Scottish local government has been pushed to the brink of failure. The independent analysis from the Institute for Fiscal Studies shows that Scottish local government finance is set to see reductions averaging 2.1% a year in real terms. That would require each Scottish council to increase council tax by around 8% just to hold budgets constant. My question for the First Minister is the same the day after the budget as it was the day before: “John, where’s the money gone?”
David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)
The Secretary of State will know that the Borderlands inclusive growth deal is an important factor in driving growth in the south of Scotland, and I am looking forward to speaking to the Minister next week about the deal. With such deals, the important thing is getting the money out the door. Over the years, a number of projects originally identified will not now go ahead. Does the Secretary of State agree that new projects should be brought on board, including replacing the bridges at Annan, which have been damaged in storms over recent years?
Mr Alexander
I know from the right hon. Gentleman’s expertise and understanding of his constituency the challenge in relation to Annan and the fact that the bridges were swept away in the floods. I can assure him that my officials are working closely with the Borderlands inclusive growth deal partners to oversee our £65 million investment in projects in that area. We are endeavouring to strike a balance with ensuring that there is effective local leadership, but he makes a powerful case that in recent years we have not seen delivery at the pace that he and we would have wanted. I hope that next week’s meeting is a constructive and useful opportunity to discuss these matters.
Dave Doogan (Angus and Perthshire Glens) (SNP)
The SNP delivered yet another ambitious budget for Scotland yesterday. It saw almost £1 billion for rates relief, £5 billion for energy and climate change and a 10% uplift for Scotland’s colleges. [Interruption.] The SNP has delivered 10.5% growth since 2007, compared with the UK’s 5.1%. The question is not about what the UK Government will do for Scotland’s economy, but what they will do to stop damaging it. [Interruption.]
Mr Alexander
Through the shouting, I heard the claim that yesterday’s announcement in the Scottish budget had helped Scottish colleges. I had the opportunity to visit Forth Valley college last week; I simply invite the hon. Gentleman to talk to the principal of that college, or indeed the principal of West college, or the principals of any of the further education colleges in Scotland. If he were to suggest for one second that the uplift announced yesterday touches the sides of the 20% cut that we saw previously, that would be an interesting perspective. I tell him to look at the numbers and not to judge this on the rhetoric; he should judge the cuts that his Government have delivered, and then come back and, perhaps, apologise to the young people of Scotland.
Wendy Chamberlain (North East Fife) (LD)
Business rates are crippling, particularly for the hospitality sector in my constituency, including hotels. We in Scotland have not seen the initiatives that have delivered business rates relief in other parts of the United Kingdom. The UK Government may be U-turning on this issue, but would they consider a cut in VAT for hospitality, so that businesses throughout the UK can benefit?
Mr Alexander
My initial glance at the Scottish budget that was announced yesterday suggests that in 2026 there will still be significant uplifts in terms of business rates across Scotland. That is a direct challenge to the claims that we have heard from the Scottish Government in relation to economic growth. I hope that as well as continuing to advocate and make the case to the UK Government, the hon. Lady and her colleagues will take the opportunity to say that Scotland’s high streets are being let down by the Scottish Government as surely as its public services are being let down.
Harriet Cross (Gordon and Buchan) (Con)
Putting money back into people’s pockets is vital for economic growth, but today the Government have signed the country up to the highest energy bills for offshore energy for the next 10 years, and to bills that we will be paying for 20 years. Can the Secretary of State explain how this will put more money into people’s pockets for them to spend in high streets, rather than just spending it on higher bills?
Mr Alexander
Let us start with the facts. Our auction today delivers new renewable power, and building and operating that will be cheaper than building new gas. Let me give the hon. Lady the figures. Here are the key facts: the cost of building and operating new gas—£147 per megawatt-hour; the strike price that we agreed today—an average of £91. That means that the price of wind that we have secured is 40% lower than the cost of building and operating new gas power plants. What the hon. Lady has said is simply not true.
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
Tonight, millions of people will tune into “The Traitors”, which was filmed at Ardross castle in my constituency. I really should have put on my Claudia Winkleman eyeliner for this one. The programme has brought millions of pounds and jobs to the highlands. What plans has the Secretary of State to encourage the screen industry to look at locations in Scotland like Ardross castle?
Mr Alexander
I defer to my Cabinet colleague the Health Secretary, given his expertise and knowledge when it comes to “The Traitors”. He made a powerful case on television that he had watched the series, and I then had to catch up subsequently. Let me simply say that Ardross castle—not just the castle itself, but the scenes surrounding it—is a fantastic advertisement for Scotland. Only yesterday I was talking to my hon. Friend the Member for Stirling and Strathallan (Chris Kane) about the huge potential for the film industry in Scotland, and we stand ready, along with our colleagues in the Department for Culture, Media and Sport, to do whatever we can to support screen in Scotland.
Brendan O’Hara (Argyll, Bute and South Lochaber) (SNP)
The Secretary of State talks about supporting economic growth in Scotland. Perhaps he should check in with the local authorities across the highlands and islands, which, combined, have received absolutely nothing from the UK Government’s local growth fund. Life is tough enough for our rural communities, and the decision to exclude them from the fund will only make things more difficult. Will the Secretary of State listen to the advice of the leader of Argyll and Bute Council, Councillor Jim Lynch, who desperately wants him to rethink this allocation?
Mr Alexander
I understand that the SNP’s grievance machine does not run on facts, but let me introduce a few facts into the conversation. The highlands and islands are benefiting from more than £300 million in investment, including £80 million to support neighbourhoods through Pride in Place, and, of course, the £25 million for the Inverness and Cromarty Firth green freeport. I can attest to that, because I visited Inverness and announced it.
Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
The Labour Government are doing absolutely nothing to grow the Scottish economy, given the national insurance increase, the family farm tax, the unemployment rights Bill and the gutting of the oil and gas industry. Growth has been halved, unemployment is up and inflation is up. It is total incompetence. However, the Government are not only incompetent but weak—so weak that Scottish Labour announced that it would not oppose the SNP’s budget before its members even knew what was in it. We know that they are not very good at government, but you would have thought that after all these years they might have worked out how to do opposition, wouldn’t you?
Mr Alexander
Let us see whether this Opposition Front Bencher agrees with the Leader of the Opposition, because, of course, he does not need to take my word for the complete chaos left by the last Government. The present leader of the Conservative party is the one who admitted they had “no plan for growth”, so we are not going to take any lectures from a party that delivered not just the Liz Truss Budget, but an economy high in inequality and low in growth.
Andrew Bowie
What we saw yesterday from the SNP was nothing more than the same old tired, stale Government with tired, stale gimmicks, handouts and an addiction to punishing hard-working Scots with the highest taxes for poorer services. There was nothing for growth, nothing for entrepreneurs and nothing for businesses, but what would we expect from the separatist pressure group cosplaying as a Government that is the SNP? Does the Secretary of State agree that, after 19 years, we need change in Scotland, and that the only party with a plan to cut tax, cut the benefit bill, support business and grow the economy is the Scottish Conservative and Unionist party?
Mr Alexander
Unsurprisingly, no. I half agree with the shadow Secretary of State in that, frankly, Scotland deserves better than a Government who, after 19 years, are claiming to be the change that Scotland needs. The reality is that, when I am on the doorsteps in Lothian East, I ask people inclined to vote SNP a single question, “Can you name a single area of Scottish public life that has got better over the last 19 years?” We have had two decades of talking about independence, and what do we have to show for it? That Budget is not the change that Scotland needs; the change we need is Anas Sarwar and Scottish Labour.
Susan Murray (Mid Dunbartonshire) (LD)
I congratulate the Government on the successful seventh round of the allocation of green energy in contracts for difference, nearly 20% of which are going to Scotland. It is good to see that, even amid their U-turns, a Liberal Democrat system from over a decade ago is still delivering. What discussions has the Secretary of State had with his Cabinet colleagues to ensure that the benefits are passed on to the Scottish people through skilled jobs, working to upgrade the grid and, crucially, protecting and defending our offshore infrastructure?
Mr Alexander
I was last in touch with the Energy Security and Net Zero Secretary about an hour ago. I talked to him after the Cabinet, and I discussed these issues with him in the Cabinet. It is a very serious question, and it deserves a serious answer. The choice is not whether to build, but what to build, and our answer is clean home-grown power that the United Kingdom controls. Our answer is that we should build new renewables, because they are cheaper to build and to operate than gas.
Stephen Gethins (Arbroath and Broughty Ferry) (SNP)
I wish the Secretary of State the best for 2026. I am glad he caught “The Traitors”, because I am so sorry to have heard the language used about Scottish Labour MPs by Labour MPs in the press recently. If what he is saying is the best way to improve our lives and our economy, why is Scotland the only part of the UK where child poverty is going down?
Mr Alexander
In part, child poverty will be falling because of the 95,000 kids we will help by abolishing the two-child benefit cap. It is not a coincidence that, in a single afternoon, our Chancellor of the Exchequer took the mantle from Gordon Brown as the politician who lifted the most kids out of poverty across the UK in a single Parliament. Gordon Brown had taken that mantle previously from Denis Healey. It is not a coincidence that Labour Chancellors lift kids out of poverty. That is what we do, and we are proud of it.
Stephen Gethins
I would take the Secretary of State a little bit more seriously if so many Labour MPs had not lost the Whip for backing our vote on tackling the two-child cap. The Scottish child payment, which has been described as “game changing”, has been extended to provide additional funding for babies, meaning that those from deprived communities in Scotland get the best start in life anywhere in the UK in Scotland, so why on earth is Labour abstaining on the Budget? [Interruption.] Just as the Prime Minister turns up, maybe Labour can explain why it abstains and why it does not stand for anything.
Mr Alexander
We are not spending our time indulging in the games of opposition; we are getting on with the serious job of government. That includes delivering a record package of employment rights to help raise pay, because the critical point the hon. Member failed to mention is that three quarters of the kids in poverty in our country today are in working households. That is why the Employment Rights Bill matters, and that is why the 220,000 people being lifted out of poverty as a consequence of increases in the minimum wage matter. We have a comprehensive approach, which is why we have a comprehensive strategy.
Dr Scott Arthur (Edinburgh South West) (Lab)
The Parliamentary Under-Secretary of State for Scotland (Kirsty McNeill)
First, I pay tribute to my hon. Friend’s very passionate advocacy for higher education in Scotland. He will be well aware that the Scottish Government have received an additional £11 billion since the general election, money that could have been spent on Scotland’s world-class universities and colleges, but as a recent Audit Scotland report shows, those institutions have been put under immense stress, with Scottish colleges suffering a 20% cut in real-terms funding since 2021. That is utterly shameful.
Dr Arthur
Scotland’s universities have been facing a funding crisis that has been many years in the making. Funding for students in Scottish universities is currently over £2,000 less than it is in England. Universities Scotland yesterday, in response to the SNP Budget, made it clear that it will have little impact on this problem, as
“it does not adequately address”
the situation. No Government in Europe cares less about the education of their young people. Will the Secretary of State or the Minister make time to visit Heriot-Watt University in Edinburgh South West to meet the vice-chancellor, Richard Williams, the staff and the students to hear about the impact of this situation?
Kirsty McNeill
I agree with my hon. Friend that Scotland’s young people have been appallingly let down, which is why it is time for a new direction. I would, of course, be delighted to meet him and representatives of Heriot-Watt to discuss Scotland’s desperate need for a new direction.
Lincoln Jopp (Spelthorne) (Con)
The Prime Minister (Keir Starmer)
May I start by condemning, in the strongest possible terms, the sickening repression and murder of protesters in Iran? The contrast between the courage of the Iranian people and the brutality of their desperate regime has never been clearer. We have called out this brutality face-to-face. We are working with allies on further sanctions and doing all we can to protect UK nationals.
Time and again under the Conservative party, towns and cities across the north were failed. Today, this Labour Government deliver change: a major new rail network across the north and a new northern growth strategy. That is the renewal that this country voted for.
This morning I had meetings with ministerial colleagues and others. In addition to my duties in this House, I shall have further such meetings later today.
Lincoln Jopp
I associate myself with the Prime Minister’s remarks, particularly about Iran.
Visiting schools in my Spelthorne constituency is one of the great joys of this job, so I was, frankly, appalled to hear that the Labour Member of Parliament for Bristol North East (Damien Egan) was prevented from visiting a school in his constituency because he is Jewish. This is antisemitism and it is happening in plain sight. With all due respect to the Prime Minister, I do not want to know how he feels about this; I want to know what he is going to do about it.
The Prime Minister
Can I start by thanking the hon. Gentleman for raising this case, because it is very serious and very concerning? All Members of Parliament should be able to visit anywhere in their constituency, schools or other places, without any fear of antisemitism. We do take this seriously. We are providing more funding for security and support that we are putting in across the country, and we will be holding to account those who prevented that visit to the school.
Anneliese Midgley (Knowsley) (Lab)
The Prime Minister
I thank my hon. Friend. The Hillsborough law will right wrongs of the past, changing the balance of power to ensure the state can never hide from the people it should serve. I think some of the families are with us in the Gallery here today, and I will be meeting them later on this afternoon. I have always been clear that the duty of candour applies to the intelligence services. I made a commitment that we would not water down the Bill, and the amendments we have put forward strengthen it. It is right that there are essential safeguards in place to protect national security, and we have got that balance right. We will meet the families and outline the next steps on Monday in relation to that crucial balance.
Mrs Kemi Badenoch (North West Essex) (Con)
I agree with the Prime Minister’s comments on Iran. Today, Erfan Soltani faces execution for protesting in Iran. I am sure the whole House will be united in condemning that; our thoughts are with him and his family and the brave protesters fighting for their freedom against an evil regime.
I know the Home Secretary will be making a statement today on the West Midlands police. The first thing she should be announcing is the sacking of the chief constable. I thank my hon. Friend the Member for West Suffolk (Nick Timothy) for relentlessly pushing this issue.
I welcome the Prime Minister’s latest U-turn—I feel like I say that every week. Mandatory digital ID was a rubbish policy, and the Opposition are glad to see the back of it. Yesterday, the Health Secretary said that the Prime Minister’s new year’s resolution should be to try to get it right first—[Laughter.] It should be to
“try to get it right first time”.
The Secretary of State for Health and Social Care (Wes Streeting)
indicated dissent.
Mrs Badenoch
Yes, you did say that. My question to the Prime Minister is: does he agree?
The Prime Minister
I am determined to make it harder for people to work illegally in this country, and that is why there will be checks, which will be digital and mandatory. I will tell the Leader of the Opposition what this Government are doing: whether it is on planning, child poverty, employment rights or investing in our NHS, we are taking the right choices for Britain, but the Opposition oppose every single one. She talks about U-turns and consistency, but her party, which used to recognise the challenge of climate change, now runs from it; it promised to cut immigration, but then lost control of it; it once took great pride in our diversity, but now talks of deporting our neighbours to achieve “cultural coherence”. Don’t get me started on consistency: the Tories had five Prime Ministers, six Chancellors, eight Home Secretaries and 16 Housing Ministers—they had more positions in 14 years than the Kama Sutra. No wonder they are knackered; they left the country screwed.
Mrs Badenoch
A lot of waffle, Mr Speaker, but it is still a U-turn. The hon. Member for Kingston upon Hull East (Karl Turner)—this is so interesting—has said:
“Labour MPs must think very carefully before defending policy decisions publicly. This stuff leaves us looking really stupid.”
I am sorry to tell him that Labour MPs have been looking stupid for a long time. Let us look at some of the other things the Prime Minister did not get right the first time, starting with the family farm tax. Some farmers were so terrified that they sold their farms last year, only for the Prime Minister to U-turn two days before Christmas. Will he apologise for the misery he has caused countless farmers?
The Prime Minister
The principle we put in place on inheritance tax is the right one. We listened, and we made an announcement. What we are doing is turning the country around. [Interruption.] Yes, we have changed the country; we have changed the failed approach of the Tory Government, who crashed the economy and sent mortgage rates through the roof, left millions stuck on NHS waiting lists and presided over the worst Parliament for living standards on record. We are turning that around and changing that: inflation and interest rates are coming down, waiting lists are coming down and wages are up more in the first year of a Labour Government than in 10 years of a Tory Government.
I understand that the Leader of the Opposition is taking advice on change. She had in Nadhim Zahawi to ask his advice on how to change and how to save her party—please don’t tell me she listened to his accountant! The next day, after giving her advice, he jumped ship to Reform—the 23rd former Tory MP to do so. I do not know which is more pitiful: the flood of former Tory MPs deserting her sinking ship or the Reform party so desperate to launder any old failed Tory politician.
Mrs Badenoch
The Prime Minister does not need to worry about me—I’m all right. I did not hear an apology to the farmers; has he even apologised to the hon. Member for Penrith and Solway (Markus Campbell-Savours), who stood up for farmers only to have the Whip removed? The Prime Minister treats his MPs so badly. They follow his lead, and he hangs them out to dry every time.
Let us turn to another area that the Prime Minister has got wrong. His Budget doubled business rates for thousands of pubs. Will the Prime Minister tell us whether there is going to be any change to his business rates policy?
The Prime Minister
We are working with the sector to ensure that it gets the support it needs. I have to say that the Leader of the Opposition’s new-found concern for pubs will come as a surprise to anyone who remembers the 7,000 pubs that were closed under the Tories. As Business Secretary, she did not say a word about it.
We support business, and we also support workers, which is why we have passed our Employment Rights Act 2025. On Monday, the Business Secretary and I went to Croydon to discuss the Employment Rights Act with workers there, who were very keen on the paternity and maternity rights that the Leader of the Opposition opposes. While we were at Ikea, they showed me their new prototype: the Ikea shadow Cabinet. The trouble is that nobody wants to buy it, it is mainly constructed of old dead wood, and every time you lose a nut it defects to Reform.
Mrs Badenoch
The Prime Minister did not answer the question about business rates. It sounds like he does not know what his policy is. It has been a farce from start to finish. On Monday, the Business Secretary said that the Chancellor did not even realise the impact of her business rates policy—no surprise there—and yesterday the tax office said that it did tell the Government what the impact would be. Can the Prime Minister be clear? Did he understand the impact of his own policy on pubs?
The Prime Minister
We are working with the sector. The right hon. Lady has not explained why she said nothing about the 7,000 pubs that closed on her watch. We are doing other things on the cost of living to help people and to make sure that they can get out and spend money in pubs and hospitality. We are boosting the minimum wage. What did the Tories do? They opposed it. We are freezing rail fares and prescription charges. What did they do? They opposed it. We are taking £150 off energy bills. What did they do? They opposed it. She said nothing when pubs were closing and she opposes every measure now.
The right hon. Lady said a moment ago, “I’m all right.” She clearly did not listen to the advice of Nadhim Zahawi, because what he told her he has now made public. He told her that the Tories failed on mass migration and failed on our armed forces, and he told her that she is leading
“a defunct brand…that the nation…can no longer trust.”
No wonder he has joined the Tory migration to Reform—it is the second Boriswave.
Mrs Badenoch
I asked the Prime Minister whether he understood the impact of his own policy; he did not say yes. The reason why he U-turns all the time is because he is clueless. He is blowing around like a plastic bag in the wind, with no sense of direction whatsoever. Let us be clear: this mess goes beyond pubs. The whole hospitality industry—cafés, hotels and restaurants, they are all being clobbered by Labour’s tax hikes. There is an answer to this: Conservatives would abolish business rates for small businesses on the high street. [Interruption.] Government Members are all chuntering, but the Prime Minister is already agreeing with us on the family farms tax and he is already agreeing with us on digital ID; why does he not make it a hat trick and abolish business rates for the high street?
The Prime Minister
The Tories crashed the economy and now they want to give lectures. The right hon. Lady is wondering why nobody is listening to them—nobody is ever going to listen to them on the economy ever again. In 18 months, because of the decisions we have made, inflation is falling and the Bank of England says it is coming back down to target; we have had six interest rate cuts in a row; wages are up more in the first year of a Labour Government than under the first 10 years of the Conservative Government; and we beat the forecasts on growth for 2025. We are turning this country around after the appalling mess they left it in.
Mrs Badenoch
The Prime Minister says that no one is going to listen to us—who is going to listen to him? The winter fuel allowance? U-turn. WASPI women? U-turn. The two-child benefit cap? U-turn. Grooming gangs inquiry? U-turn. The family farms tax? U-turn. Digital ID? U-turn. Jury trials?
Mrs Badenoch
We hope so. I think that is going to be the next one. Week after week, the poor people sitting people sitting behind the Prime Minister have to defend the indefensible, only for him to U-turn a few days later.
One of the Prime Minister’s Cabinet Ministers told a journalist that
“What’s happening at the moment is extraordinarily bad.”
Another said:
“We’ve gone through a catastrophic series of mis-steps.”
Yet another Minister said
“we are so unpopular at the moment I’ve come to the conclusion it’s worth rolling the dice”
on a new leader. They are right, aren’t they?
The Prime Minister
Here is the difference: I changed my party, and that is why we stand here with a majority Labour Government. The Leader of the Opposition sits there with her party that lost two thirds of its MPs at the last election, and she is losing more every week. They are queuing up to join the hon. Member for Clacton (Nigel Farage) and his laundry service for disgraced Tory politicians. Meanwhile, inflation is down, wages are up and waiting lists are down. Labour is turning the corner and changing this country for the better.
Janet Daby (Lewisham East) (Lab)
The Prime Minister
My hon. Friend draws attention to the important work of the Mayor of London. Nobody should be talking our country down or talking London down. She is right to say that since we came into office the number of knife crime offences is down, but there is more to do. We are introducing new powers to seize knives and increasing the penalty for selling knives to under-18s. [Interruption.] What did the Conservatives—they are chuntering—do? They voted against those provisions. What is obvious about London and Reform is that it has got a candidate for mayor who does not like London, a new ex-Tory recruit who struggled to pay his taxes in this country and a leader who spends more time in France than in his constituency.
Ed Davey (Kingston and Surbiton) (LD)
I associate myself and my party with the Prime Minister’s comments on Iran. I encourage him to go even further on sanctions and proscribe the Islamic Revolutionary Guard Corps.
Sandra is 71. She has bladder cancer. Just after Christmas, she went into her local A&E. She had to wait 31 hours on a trolley or on a plastic chair to be admitted. Last year, more than half a million people waited for over 12 hours in A&E to be admitted—more than any year in the history of the NHS. This corridor care crisis was created by the Conservatives, but it has got worse under Labour. Will the Prime Minister end this scandal by taking up our plan to end all 12-hour A&E waits this year?
The Prime Minister
May I first say through the right hon. Member to Sandra that that is simply not acceptable for her or anybody else? I would appreciate it if he passed that on to her directly. We have put record investment into the NHS so that we can turn this problem around, and we are turning it around.
The right hon. Member puts forward his plans for change, but he never votes for the increase in investment and the measures needed to put them into practice. You cannot change things without investing in them. You cannot call for change and vote against a Budget that puts record investment into the NHS.
Ed Davey
We saw what happened to the last Government when they failed to improve the NHS, and if the Prime Minister is not careful, that will happen to his Government.
Last month I asked the Prime Minister to get a grip of South East Water, which had left thousands of people in Royal Tunbridge Wells without water. Now it has happened again, not only in Tunbridge Wells but in East Grinstead, Burgess Hill, Haywards Heath and other parts of Kent and Sussex. Families, pensioners, schools, care homes and businesses have been without any water since Saturday, and the water company bosses involved now stand accused of misleading Parliament over their failures. South East Water keeps failing its customers over and over again, so will the Government immediately strip it of its licence?
The Prime Minister
I thank the right hon. Gentleman for raising this, because the situation is clearly totally unacceptable. He will want to know that Ministers have chaired daily emergency meetings to hold the company to account to deliver on the change that is urgently needed in all the areas that he mentioned. We have also doubled the compensation rates for individuals and businesses and we are absolutely clear that the company must urgently invest in infrastructure. We will publish the water White Paper in due course, but we are holding those daily meetings to hold the company to account.
Dr Marie Tidball (Penistone and Stocksbridge) (Lab)
The Prime Minister
I pay tribute to my hon. Friend as a dedicated campaigner on this and so many other issues. I am delighted that today we are announcing a transformation in journeys across the north. Of course, this was promised many times by the Conservatives but never delivered. We are taking action and delivering. We are working with Kirklees council to prepare the business case for the first phase of upgrading the line, and I know that the Transport Secretary will be happy to discuss the details of that with my hon. Friend.
Robin Swann (South Antrim) (UUP)
At question time last week, the Prime Minister seemed to intimate that the Government were bringing forward amendments to the Northern Ireland Troubles Bill. Within hours of him saying that, the Irish Government’s Minister for Foreign Affairs said that any “significant changes” must have the
“full agreement of both Governments”.
Is the Prime Minister intending to bring forward amendments to the flawed Northern Ireland Troubles Bill? Will he give me a reassurance that the Irish Government do not have a veto over legislation in this House?
The Prime Minister
I thank the hon. Gentleman for raising that. I spoke to the Taoiseach about it in December, and I know that he is committed to delivering on this issue. The new legacy unit has been established in the Garda, and I am confident that the Irish Government’s other commitments will be delivered as set out in the joint framework. For the first time, information held by the Irish authorities is being shared with the reformed legacy commission, meaning that more families and victims of terrorism are getting information about what happened to their loved ones.
Mary Glindon (Newcastle upon Tyne East and Wallsend) (Lab)
The Prime Minister
I am proud of what we are doing on child poverty, lifting half a million children out of poverty. The Conservatives’ policy is to plunge them straight back into poverty, and they should be ashamed of that. The situation my hon. Friend draws my attention to is appalling. Parents and teachers are furious that the Conservatives left schools literally crumbling. We invested £20 billion to rebuild around 800 schools, and our aim is that all schools and colleges in England that are not being fully or substantially rebuilt are free from RAAC—reinforced autoclaved aerated concrete—by the end of the Parliament. I will ensure that a Minister meets her to discuss this issue.
Mr Tom Morrison (Cheadle) (LD)
The Prime Minister
I thank the hon. Member for raising that. He knows we inherited a terrible situation: waiting lists, missed performance targets and hospitals such as Stepping Hill left to crumble—the Conservatives should be absolutely ashamed of themselves. I am pleased that the new out-patients building is open, and because of our decisions, the local trust will receive £75 million in capital funding. Progress is being made. His local trust has seen waiting lists fall by almost 3,000, and the number of waits of over a year is down by 67%. I will ensure that he gets the meeting he wants to discuss the details further.
Emily Darlington (Milton Keynes Central) (Lab)
The Prime Minister
I thank my hon. Friend for raising that. The actions of Grok and X are disgusting and shameful. Frankly, the decision to turn it into a premium service is horrific, and we are absolutely determined to take action. We have made it clear that X has to act and, if not, Ofcom has our full backing. We will introduce, and are introducing, legislation. To update the House, I have been informed this morning that X is acting to ensure full compliance with UK law. If so, that is welcome, but we are not going to back down. X must act. We will take the necessary measures. We will strengthen existing laws and prepare for legislation if it needs to go further, and Ofcom will continue its independent investigation.
Llinos Medi (Ynys Môn) (PC)
The Prime Minister
I thank the hon. Member for raising that. It is astonishing that Reform defends Musk on this issue. I said that the images are disgusting; Reform’s position on this issue is disgusting. This is weaponising images of women and children and they should never be made, and that is why we are acting. Reform refused to do anything about it, but more than that, on the point she raised, it would scrap the Online Safety Act 2023, which stops children accessing pornography and content on suicide, self-harm and eating disorders. Reform is an absolute disgrace and knows nothing about protecting children.
Several hon. Members rose—
Kevin Bonavia (Stevenage) (Lab)
The Prime Minister
This is a question of values and freedom. I am proud of the British workers, including in my hon. Friend’s constituency, supporting our Ukrainian allies. Ukrainian soldiers are defending European values on the frontline every day. In the event of a ceasefire, a multinational force will carry out defence and deterrence operations and conduct training, planning, recovery and regeneration of Ukrainian forces. This week, the leader of Reform said that Russia had a casus belli—that means a justification for war—in invading Ukraine. He is a Putin apologist using Russia’s talking points.
Lewis Cocking (Broxbourne) (Con)
The Prime Minister
Diego Garcia is a vital military base with important capabilities for our allies. It is integral to our security. Our decision was welcomed by our allies, the Five Eyes, India and the United States. It was opposed by our enemies, including Russia. Now we can add the Tories and Reform to that list. The Tories are following Reform; Reform is following Putin.
Yasmin Qureshi (Bolton South and Walkden) (Lab)
The Prime Minister
My thoughts, and the thoughts of the whole House, are with all those so awfully impacted by the terrible road traffic accident in my hon. Friend’s constituency over the weekend. On her question, we are determined to restore the dream of home ownership. That is why there has been £39 billion of investment to deliver the biggest boost in social and affordable housing in a generation. Through planning reforms, the new homes accelerator and new towns, we are determined to deliver the homes that people need.
Dr Luke Evans (Hinckley and Bosworth) (Con)
The Prime Minister
I thank the hon. Gentleman for his support for what we are doing about violence against women and girls. I agree that this is not about women or men, or boys or girls; it is about both. That is why I was very pleased to bring forward our men’s health strategy, one of the first of its sort, to deal with the challenges that young men in particular, in my view, have growing up, particularly to do with social media, and to go further on the question of suicide, which I know the whole House is prepared to work together on—and quite right, too.
Carolyn Harris (Neath and Swansea East) (Lab)
As trade envoy to New Zealand, I visited Eden Park in Auckland last year to hear about the exciting plans to bring the Royal Edinburgh Military Tattoo to New Zealand. Next month, that plan becomes a reality, and one of Scotland and the UK’s greatest military displays will take place in Auckland. That spectacular event is testament to the exciting and successful trading relationship between the UK and New Zealand. Will the Prime Minister join me in congratulating and thanking everyone who has made it a reality?
The Prime Minister
I thank my hon. Friend for raising the Royal Edinburgh Military Tattoo, which is absolutely brilliant, as anybody who has seen it will attest. I am so pleased that it is heading to New Zealand. That is another example of Scotland’s unique contribution to our international image, our culture and our tourism. We all wish them the very best of luck in their performance. I know that it will be very well received.
Nick Timothy (West Suffolk) (Con)
The Prime Minister
I disagree, as the hon. Member knows, with the decision of the West Midlands police. The Home Secretary will today make a statement in relation to that. Home Secretaries used to have the power to remove chief constables. That power was stripped by the Police Reform and Social Responsibility Act 2011. The hon. Member knows who was making decisions in the Home Office at the time—it was he, working for Theresa May, who stripped that power away.
Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)
I wish you a belated happy new year, Mr Speaker. However, for the 4.8 million leaseholders across England, it is not a happy new year; they will receive large bills in a matter of weeks. They have been waiting patiently for us, a new Government who said we would deliver change, to bring forward legislation on leasehold and commonhold. When will we see that legislation, so that we can put those leaseholders out of their misery?
The Prime Minister
I thank my hon. Friend for raising that important issue. We will bring forward proposals very shortly.
Anna Sabine (Frome and East Somerset) (LD)
The Prime Minister
I thank the hon. Lady for raising the case of Clover. NHS England and the National Institute for Health and Care Research recently agreed funding for two world-first clinical trials relating to the use of cannabis-based products. That could help these medicines to become more routinely available in the NHS. I will ensure that she gets the meeting that she wants with the relevant Minister to discuss what else we are doing.
Helena Dollimore (Hastings and Rye) (Lab/Co-op)
The people I represent are fed up with Southern Water, when it comes to everything from sewage and broken pipes to water outages, even on Christmas day. In November, millions of plastic beads washed up on our beaches, and we discovered that they came from a Southern Water treatment plant. I am campaigning for water companies to stop using this outdated plastic bead method, and to bin the beads. We are really concerned about the impact on wildlife, and have a massive clean-up operation on our hands. More than 5,000 people have already supported my campaign with the Sussex Wildlife Trust. Does the Prime Minister share my horror about this dereliction of duty by Southern Water, and will he join me in calling for it to face the full force of the law for that terrible pollution incident?
The Prime Minister
I credit my hon. Friend with having helped to expose this scandal, and with working with everyone in her community to volunteer to clean up the beaches. That is the very best of who we are. People are right to be furious that, for far too long, water companies were allowed to get away with polluting our seas and beaches. The Environment Agency is leading a full investigation. More generally, we are ending unfair bonuses for polluting water bosses, abolishing Ofwat, and introducing tougher penalties to hold companies to account.
Ben Obese-Jecty (Huntingdon) (Con)
The Prime Minister
There are no done deals here; we are going through the proper process.
Matt Turmaine (Watford) (Lab)
The staff at West Hertfordshire teaching hospitals NHS trust, which operates Watford general hospital in my constituency, have been very busy bees. They recently won trust of the year and a performance recovery award at the 2025 Health Service Journal awards. Will the Prime Minister join me in congratulating the amazing team at Watford general, and thank them for all the hard work they have done to achieve this admirable accolade? Imagine what further achievements they will make when they have their new hospital and new facilities.
The Prime Minister
I will join my hon. Friend, and thank not only the staff in his hospital, but NHS staff across the country, who worked so hard over Christmas and new year, which is a notoriously difficult time.