Oral Answers to Questions

Kemi Badenoch Excerpts

Wednesday 11th June 2025 Commons Chamber

[Mr Speaker]

I call the Leader of the Opposition.

[Mrs Kemi Badenoch (North West Essex) (Con)]

Perhaps the Prime Minister knows something I do not, because there is only one hospital in my constituency.

Since Labour took office, inflation has nearly doubled, growth has halved and unemployment has surged. Is this what the Prime Minister meant when he tweeted that “The economy is improving”?

[The Prime Minister]

Since the general election, 500,000 more people are in work. I know that the right hon. Lady does not mention that—she is fixated on talking Britain down. We are investing in the future. Even in the last two weeks, we have had the strategic defence review, with 30,000 new jobs building submarines. Yesterday we had the Sizewell announcement, which will create 10,000 new jobs, and there will be tens of thousands of construction jobs building the social and affordable housing that was announced this morning. That is the difference that Labour makes in government.

[Mrs Badenoch]

The Prime Minister must be talking about a different economy. All of us in this House heard about unemployment increasing—unemployment has increased every month since Labour took office. Last year, the Prime Minister said that he was taking the winter fuel payment away to balance the books, but the books are not balanced; in fact, they are worse. This year, the deficit is forecast to be £10 billion higher since the Budget—not since last year’s election, but since the Budget. In what way are the books now balanced?

[The Prime Minister]

The right hon. Lady has obviously missed the interest rate cuts, the growth figures for earlier this year, the strategic defence review, £15 billion going into local transport, free school meals, Sizewell and social housing. She stands at the Dispatch Box to lecture us, and I see that Liz Truss is obviously back in vogue, advising Reform officially now and haunting the Tories. I remind the Leader of the Opposition that the shadow Home Secretary, who I think was then Chief Secretary to the Treasury, gave the Liz Truss Budget 9.5 out of 10. The Leader of the Opposition said that what was wrong with Liz Truss’s Budget was not necessarily the package—that was all right—but the way it was sold. The Tories have learned absolutely nothing.

[Mrs Badenoch]

The Prime Minister loves talking about Liz Truss. Why? Because he wants to hide from his own economic record. He is a coward. Every time he stands at the Dispatch Box and talks about Liz Truss, it is because he is scared of talking about his record and what is happening to the economy out there.

Let us bring the Prime Minister back to the U-turn that he is running away from—a U-turn on a policy that his MPs went out defending time and again. Let us go through what is happening here. One minute, they said that it was right to take the winter fuel payment away, because there might be a run on the pound; the next minute, they said it was right to give it back. This is laughable. The Prime Minister stands there, all puffed up and self-righteous. Why can he not just admit that he made a mistake?

[The Prime Minister]

The Conservatives left a £22 billion black hole that we had to fill, and that is why we took the right decisions. We have stabilised the economy, which is why we have seen four interest rate cuts. We have committed to the triple lock, which the Opposition say is unsustainable—that is £470 for most pensioners—and we have had good quarter 1 growth. Three weeks ago, I said that I wanted more pensioners to be eligible for the winter fuel payment. I am really pleased that we set out the threshold and the certainty that is needed. The right hon. Lady says that I do not want to talk about our record, but what about three trade deals, record investment, free school meals, breakfast clubs, social and affordable housing, the defence review, Sizewell—we could go on all morning, but the Chancellor will say even more in a minute. At the weekend, the right hon. Lady said that she would be getting better in the role. She could start by apologising for the Liz Truss Budget; that would be better.

[Mrs Badenoch]

I get better every week; the Prime Minister gets worse. Last week—[Interruption.]

[Mr Speaker]

Order. I say to the Member shouting that if you think that is a good look, let me tell you that it is a very bad look. Think twice before you try to shout somebody down in that way. I call Kemi Badenoch.

[Mrs Badenoch]

Last week, the Prime Minister had to get his lines from the Russian embassy. I think we all know that he is getting worse, and what he does not want to talk about is how he is going to make the economy better. That is what the people out there want to hear, and he has got no answers. His trade deals have unravelled. With the strategic defence review, everyone out there is asking where the money is coming from. The fact is that he does not know how to balance the books. The Chancellor says that the winter fuel payment U-turn will not be funded through higher borrowing, so will the Prime Minister admit that it will be funded by putting everybody’s taxes up?

[The Prime Minister]

I think the right hon. Lady let slip on the Matt Forde programme the other day that she rehearses her fury for PMQs, so there was a very good rehearsal this morning, I think. She asks what we are doing. At the Budget, we put record investment in our NHS and our public services. She comes every week to carp on about national insurance, but she does not stand there with the courage of her convictions and say that she will actually reverse it. The reason she will not is because she will not stand up and say she is against the investment in the NHS. She will not stand up and say she is against the investment in our public services. We will all listen very carefully in just 20 minutes, when the Chancellor lays out more record investment, as to whether the Conservatives welcome it or whether they say they would not support it.

[Mrs Badenoch]

Every week I come here to tell the Prime Minister the truth. The truth is that the economy is in a spiral because Labour—all of them—put up taxes, which cuts growth. We all heard the Prime Minister. He did not rule out tax rises, so the Government are going to have to put up taxes even more. This is a spiral. If that was not bad enough, this morning we heard that because of his terrible Chagos deal, Mauritius is scrapping income tax. Why on earth should the British taxpayer pay £30 billion for tax cuts in Mauritius?

[The Prime Minister]

Diego Garcia is a vital intelligence and strategic capability, and it is absolutely clear that legal uncertainty would compromise it in very short order—that is why the Conservatives started the negotiations in relation to it—and no responsible Prime Minister would let that happen. We have secured the base for the long term. That has been welcomed by our allies—by the US, by NATO, and by Australia, New Zealand and India. It has been opposed by our adversaries—by Russia, China and Iran. In the second column, we add Reform following Putin, and the Tories following Reform.

[Mrs Badenoch]

The Prime Minister knows this has nothing to do with national security; it is his bad negotiating. I have had the security briefings; it was a bad deal before, and it is still a bad deal. In half an hour, the Chancellor is going to stand up and tell us that everything is fine, but the truth is that she has made bad choices—bad choices that mean higher inflation, bad choices that have led to lower growth, and bad choices that have meant that jobs have been lost every single month since Labour came into office. That is hundreds of thousands of families who have lost their income in Stoke, Grangemouth and Luton. Those are their constituencies and businesses across the country. The Chancellor has lost all her headroom. She has fallen out with the Cabinet. She is making unfunded spending commitments, which she promised not to do. Is the truth not that we have got the wrong Chancellor and the wrong priorities?

[The Prime Minister]

The wrong choice that they made was making the right hon. Lady the Leader of the Opposition.