The latest session of Prime Minister’s Questions (PMQs) saw a spirited exchange between Prime Minister Keir Starmer and Conservative Leader Kemi Badenoch, with economic issues taking center stage as the government prepares for significant financial changes this weekend. The backdrop of U.S. President Donald Trump’s impending tariffs added further complexity to the discussion, raising concerns about their potential impact on the government’s economic growth plans.
Economic debate takes center stage
Badenoch launched the session by criticizing the recent increase in national insurance contributions for employers. Labeling Labour’s policies as a “jobs tax,” she argued that this would compel businesses to either reduce wages, raise prices, or lay off staff. In response, Starmer asserted that Labour was committed to taking decisive action to support the economy, pointing to policies such as an increase in the minimum wage. He also took the opportunity to chastise the Tories, declaring that public services have been left “on their knees” during their governance.
Strong exchanges and familiar accusations
As the debate progressed, Badenoch remained defiant, accusing the government of losing the public’s trust and referencing the Office for Budget Responsibility’s (OBR) assessment that working families could be as much as £3,536 worse off in the current parliamentary term. She questioned why the public should trust Starmer again, to which he retorted with a dismissal of her figures as a “fantasy” akin to the discredited economic planning of former PM Liz Truss.
“Why should anyone trust him again?” Badenoch exclaimed in her critique of Starmer.
Despite the evident tension, Starmer suggested that there were commonalities in economic policy that Badenoch might be hesitant to acknowledge. He highlighted a recent press conference led by Badenoch, where she refrained from saying whether she would overturn the national insurance changes if elected. This aspect of the debate underscored the complexities of Tory economic plans and their implications for future governance.
In an attempt to shift the narrative, Badenoch pointed out the challenges faced by Labour-run Birmingham City Council, where a bin strike had resulted in significant amounts of refuse left uncollected. However, Starmer countered by emphasizing the council tax increases implemented by the Tory government, effectively neutralizing Badenoch’s argument.
As the discussion turned to broader economic matters, Badenoch claimed her party left behind “the fastest growing economy” for Labour to manage, a statement that drew laughter and skepticism from the opposition benches. Starmer dismissed this assertion, reiterating that he was the “only person left” who believed it, while highlighting the OBR’s more cautious growth forecasts for 2025.
The exchange also touched on the contentious issue of trade relations, with Badenoch criticizing the government’s failure to secure an exemption from Trump’s tariffs. Starmer defended the ongoing negotiations, asserting the government’s commitment to a pragmatic approach that serves the national interest. He also pointed out Badenoch’s previous inadequacies as trade secretary concerning the U.S. trade deal.
In a noteworthy moment, Liberal Democrat leader Ed Davey questioned whether Starmer would support an “economic coalition of the willing” against Trump. Starmer, maintaining his diplomatic stance, underscored the importance of fostering good trade and defense relationships with both Europe and the U.S.
Among backbench remarks, Glasgow East MP John Grady praised the impending state pension increase as a product of the government’s reform agenda, to which Starmer concurred, subsequently directing criticism toward the economic legacy left by previous Conservative administrations.
Evaluating the performances, Badenoch scored a modest 5 out of 10, while Starmer secured a slightly higher rating of 6. Although Badenoch effectively spotlighted economic concerns impacting voters, her inability to clarify her party’s plans to reverse recent government measures somewhat undermined her criticisms. Ultimately, while she momentarily stung the Prime Minister regarding local governance issues, her past role as trade secretary weakened her arguments about international trade. In the end, Starmer left the Commons with a notable advantage.