Oral Answers to Questions
Debate between Elizabeth Truss and Keir Starmer(1 year, 6 months ago)
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Keir Starmer (Holborn and St Pancras) (Lab)
A book is being written about the Prime Minister’s time in office. Apparently, it is going to be out by Christmas. Is that the release date or the title?
The Prime Minister
I have been in office for just under two months, and I have delivered the energy price guarantee, making sure that people are not paying £6,000 bills this winter; I have reversed the national insurance increase; and I have also taken steps—and we will be taking steps—to crack down on the militant unions. I think that is more of a record of action than the right hon. and learned Gentleman in his two and a half years in the job.
Keir Starmer
Last week, the Prime Minister ignored every question put to her. Instead, she repeatedly criticised Labour’s plan for a six-month freeze on energy bills. This week, the Chancellor made it her policy. How can she be held to account when she is not in charge?
The Prime Minister
Our policy is to protect the most vulnerable for two years. I had to take the decision, because of the economic situation, to adjust our policies. I am somebody who is prepared to front up. I am prepared to take the tough decisions, unlike the right hon. and learned Gentleman, who has not done anything on businesses and who has done nothing to say he will protect people after one year. He has got no plan.
Keir Starmer
Last week, the Prime Minister stood there and promised absolutely no spending reductions. Conservative Members all cheered. This week, the Chancellor announced a new wave of cuts. What is the point of a Prime Minister whose promises do not even last a week?
The Prime Minister
I can assure the right hon. and learned Gentleman that spending will go up next year and it will go up the year after, but of course we need to get value for taxpayers’ money. The Labour party has pledged hundreds of billions in spending pledges, none of which it has retracted. He needs to reflect the economic reality in his policies.
Keir Starmer
Those spending cuts are on the table for one reason and one reason only: because the Conservatives crashed the economy. Working people will have to pay £500 more a month on their mortgages, and what is the Prime Minister’s response? It is to say that she is sorry. What does she think people will think and say: “That’s all right; I don’t mind financial ruin, and at least she apologised”?
The Prime Minister
I do think that there has to be some reflection of economic reality from the Labour party. The fact is that interest rates are rising across the world and the economic conditions have worsened. We are being honest and levelling with the public, unlike the right hon. and learned Gentleman, who simply will not do that. What is he doing about the fact that train workers are again going on strike? The fact is that he refuses to condemn the workers. We are bringing forward policies that will make sure our railways are protected and that people going to work are protected. He backs the strikers; we back the strivers.
Keir Starmer
The Prime Minister is asking me questions because we are a Government in waiting and they are an Opposition in waiting. There is no getting away from this. Millions of people are facing horrendous mortgage repayments and she has admitted that it is her fault. She should not have conducted an economic experiment on the British public. But it is not just her; Tory MPs put her there. They are keeping her there. Why on earth would anyone trust the Tories with the economy ever again?
The Prime Minister
I notice that the right hon. and learned Gentleman is not actually objecting to a single economic policy that the Chancellor announced on Monday. He is refusing to condemn the strikers. We are on the side of working people. We will legislate to make sure that we keep our railways open. The right hon. and learned Gentleman refuses to do anything.
Keir Starmer
The only mandate that the Prime Minister has ever had is from Government Members. It was a mandate built on fantasy economics and it ended in disaster. The country has nothing to show for it except for the destruction of the economy and the implosion of the Tory party. I have the list here: 45p tax cut—gone; corporation tax cut—gone; 20p tax cut—gone; two-year energy freeze—gone; tax-free shopping—gone; economic credibility—gone. Her supposed best friend, the former Chancellor, has gone as well. They are all gone. So why is she still here?
The Prime Minister
I am a fighter and not a quitter. I have acted in the national interest to make sure that we have economic stability—
Oral Answers to Questions
Debate between Elizabeth Truss and Keir Starmer(1 year, 6 months ago)
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Keir Starmer (Holborn and St Pancras) (Lab)
May I join the Prime Minister in her comments about Sir David? She spoke for the whole House when she made those comments. I know how deeply his loss was felt on the Government Benches, and we extend our best wishes across the House at this important time.
I also want to send my heartfelt condolences to the families of all those who tragically lost their lives in Creeslough last week. Donegal is a special place for my family and me, and across the House. The people there are in all our thoughts.
This morning the Business Secretary toured the television studios arguing that the turmoil in the markets had nothing to do with the Prime Minister’s Budget. Does the Prime Minister agree with him?
The Prime Minister
We have taken decisive action to make sure that people are not facing energy bills of £6,000 for two years. We remember that the Opposition are only talking about six months. We have also taken decisive action to make sure that we are not facing the highest taxes for 70 years in the face of a global economic slowdown. We are making sure that we protect our economy at this very difficult time internationally. As a result of our action—this has been independently corroborated—we will see higher growth and lower inflation.
Keir Starmer
Avoiding the question, ducking responsibility, lost in denial—it is no wonder investors have no confidence in her Government. This is why it matters: a few weeks ago, Zach and Rebecca from Wolverhampton were all set to buy their first home. Then the Government’s borrowing spree sent interest rates spiralling and their mortgage offer was withdrawn. I met them last week. They are back to square one: unable to buy, devastated and sick to their back teeth with excuses and blame shifting. Does the Prime Minister understand why Zach and Rebecca are completely furious with her?
The Prime Minister
The fact is that when I came into office, people were facing energy bills of up to £6,000 per year—[Interruption.] Well, I am sorry; Labour Members are shouting, but the right hon. and learned Gentleman is opposing the very package that we brought in with the energy price guarantee. That was the major part of the mini-Budget that we announced. He has refused to confirm whether he backs our energy price guarantee for two years, which protects families not just this winter but next winter. We are seeing interest rates rising globally—[Interruption.] They are rising globally in the face of Putin’s appalling war in Ukraine. What we are doing is helping people with lower stamp duty, helping people with their energy costs, reducing inflation with our energy package and keeping taxes low. I notice that the right hon. and learned Gentleman had a Damascene conversion last night when he backed our cut to national insurance.
Keir Starmer
The economy is in turmoil. People are really worried. This is really not the time to descend into nonsense attacks about last night. There is no point in trying to hide it; everyone can see what has happened. The Tories went on a borrowing spree, sending mortgage rates through the roof—they are skyrocketing by £500 a month—and for nearly 2 million homeowners, their fixed-rate deals are coming to an end next year. They are worried sick, and everybody in this House knows it. They will not forgive; they will not forget; and nor should they. When will the Prime Minister stop ducking responsibility, do the right thing and reverse her kamikaze Budget, which is causing so much pain?
The Prime Minister
Last night, the Labour party supported bringing down national insurance. Is he really—[Interruption.]
Keir Starmer
The Prime Minister knows very well that, on this side, we voted against the national insurance rise in the first place. She voted for it, so who is doing the U-turn? Honestly.
Last week, the Prime Minister was forced to U-turn on her unfunded tax cut for the super-wealthy. This week, she is beginning to realise that she needs to extend the windfall tax, one step behind the CEO of Shell, but she is still going ahead with £18 billion of tax cuts for the richest businesses, and they did not even ask for it. She has still gift-wrapped a stamp duty cut for landlords, just as renters feel the pinch, and she is still holding out tax cuts for those who live off stocks and shares. Why does she expect working people to pick up the bill for her unfunded tax cuts for those at the top?
The Prime Minister
I notice the Leader of the Opposition is still not saying whether he supports our energy price guarantee. This is very relevant, because it is the biggest part of our mini-Budget. The fact is that all the Opposition have said is that people should be supported for six months. Does he think that, in March, pensioners should be facing very high energy bills? That is what will happen if he does not support our energy price guarantee.
Keir Starmer
The Prime Minister is not even attempting to answer the questions now. I gently remind her that the idea of freezing energy bills was a Labour idea that she took on. During her leadership contest the Prime Minister said, and I quote her exactly:
“I’m very clear I’m not planning public spending reductions.”
Is she going to stick to that?
The Prime Minister
Absolutely. [Interruption.] Look, we have almost £1 trillion of public spending, and we were spending £700 billion back in 2010. We will make sure that, over the medium term, the debt is falling, and we will do that not by cutting public spending but by making sure we spend public money well. The right hon. and learned Gentleman talks about our spending on the energy price guarantee, which he does not seem to support, but the reality is that he cannot criticise us, on the one hand, for spending money while, on the other hand, claiming we are cutting public expenditure. [Interruption.]
Keir Starmer
Conservative Members can cheer. I hope they listened very carefully to that last answer, because other people will have listened very carefully. Who voted for this? Not homeowners paying an extra £500 on their mortgage. Who voted for this? Not working people paying for tax cuts for the largest companies. Who voted for this? Not even most of the MPs sitting behind her, who know they cannot pay for tax cuts on the never-never. Does she think the public will ever forgive the Conservative party if it keeps on defending this madness and goes ahead with its kamikaze Budget?
The Prime Minister
What our Budget has delivered is security for families for the next two winters. It has made sure we will see higher economic growth, lower inflation and more opportunities. The way we are going to get our country growing is through more jobs, more growth and more opportunities, not through higher taxes, higher spending and his friends in the unions stopping hard-working people getting to work.
Oral Answers to Questions
Debate between Elizabeth Truss and Keir Starmer(1 year, 7 months ago)
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Mr Speaker
We now come to the Leader of the Opposition, Keir Starmer.
Keir Starmer (Holborn and St Pancras) (Lab)
Thank you, Mr Speaker. May I congratulate the Prime Minister on her appointment? When she said in her leadership campaign that she was against windfall taxes, did she mean it?
The Prime Minister
I thank the right hon. and learned Gentleman for his welcome. I hope that we will be able to work together, particularly in areas we agree on. I know that we have had strong support from the Opposition in opposing Vladimir Putin’s appalling war in Ukraine, and I want us to continue to stand up to that appalling Russian aggression, which has led to the energy crisis we face now. I am against a windfall tax. I believe it is the wrong thing to be putting companies off investing in the United Kingdom, just when we need to be growing the economy.
Keir Starmer
I thank the Prime Minister for her answer. I ask because Treasury estimates are that the energy producers will make £170 billion in excess profits over the next two years. The Prime Minister knows that she has no choice but to back an energy price freeze, but that won’t be cheap, and the real choice—the political choice—is who is going to pay. Is she really telling us that she is going to leave those vast excess profits on the table and make working people foot the bill for decades to come?
The Prime Minister
I understand that people across our country are struggling with the cost of living, and they are struggling with their energy bills. That is why I as Prime Minister will take immediate action to help people with the cost of their energy bills. I will be making an announcement to this House on that tomorrow, and giving people certainty to make sure that they are able to get through this winter, able to have the energy supplies and able to afford it. But we cannot just deal with today’s problem; we cannot just put a sticking plaster on it. What we need to do is increase our energy supplies long term. That is why we will open up more supply in the North sea, which the right hon. and learned Gentleman has opposed, and why we will build more nuclear power stations, which the Labour party did not do when it was in office. That is why we will get on with delivering the supply, as well as helping people through the winter.
Keir Starmer
I look forward to tomorrow’s statement, but the money has got to come from somewhere. The Prime Minister knows that every single pound in excess profits that she chooses not to tax is an extra pound on borrowing that working people will be forced to pay back for decades to come. More borrowing than is needed—that is the true cost of her choice to protect oil and gas profits, isn’t it?
The Prime Minister
The reality is that this country will not be able to tax its way to growth. The way we will grow our economy is by attracting investment, keeping taxes low, and delivering the reforms to build projects quicker—that is the way that we will create jobs and opportunities across our country.
Keir Starmer
So, Mr Speaker, the right hon. Lady’s first act as Prime Minister is to borrow more than is needed because she will not touch excess oil and gas profits. On that topic, how much would her planned corporation tax cut hand out to companies?
The Prime Minister
The right hon. and learned Gentleman is looking at this in the wrong way. The last time we cut corporation tax, we attracted more revenue into the Exchequer because more companies wanted to base themselves in Britain, and more companies wanted to invest in our country. If taxes are put up and raised to the same level as in France—that is what the current proposal is, which I will change as Prime Minister—that will put off investors, and it will put off those companies investing in our economy. Ultimately, that will mean fewer jobs, less growth, and fewer opportunities across our country.
Keir Starmer
It is extraordinary that the Prime Minister is not only refusing to extend the windfall tax but choosing to hand the water companies who are polluting our beaches a tax cut. She is choosing to hand the banks a tax cut. Add it all together, and companies who are already doing well are getting a £17 billion tax cut while working people pay for the cost of living crisis, stroke victims wait an hour for an ambulance and criminals walk the streets with impunity. Families and public services need every penny that they can get. How on earth does she think that now is the right time to protect Shell’s profits and give Amazon a tax break?
The Prime Minister
I am on the side of people who work hard and do the right thing. That is why we will reverse the national insurance increase, and that is why we will keep corporation tax low, because ultimately we want investment right across our country. We want new jobs and new opportunities, and that is what I will deliver as Prime Minister.
Keir Starmer
The Prime Minister claims to be breaking orthodoxy, but the reality is that she is reheating George Osborne’s failed corporation tax plans, protecting oil and gas profits, and forcing working people to pay the bill. She is the fourth Tory Prime Minister in six years. The face at the top may change, but the story remains the same.
There is nothing new about the Tory fantasy of trickle-down economics and nothing new about this Tory Prime Minister who nodded through every single decision that got us into this mess and now says how terrible it is. Can she not see that there is nothing new about a Tory Prime Minister who when asked, “Who pays?” says, “It’s you—the working people of Britain”?
The Prime Minister
There is nothing new about a Labour leader who is calling for more tax rises. It is the same old, same old tax and spend. What I am about is reducing taxes, getting our economy growing, getting investment and getting new jobs for people right across the country.
I am afraid to say that the right hon. and learned Gentleman does not understand aspiration. He does not understand opportunity. He does not understand that people want to keep more of their own money. That is what I will deliver as Prime Minister. I will take immediate action to help people with their energy bills but also secure our long-term energy supply. I will take immediate action to ensure that we have lower taxes and grow the economy. In that way, I will ensure that we have a positive future for our country and get Britain moving.