The Tory leader Kemi Badenoch has said the Labour government has left the economy “fragile” at a time when the UK is facing “global trade wars.”
She warned that Labour’s “jobs tax” has led to an increase in employers’ national insurance and this could lead to job losses.
Badenoch warned that the increase on taxes will be passed on to workers and that on average families will be £3,500 poorer and asked, “why should anyone trust him again?”
Sir Keir Starmer accused the Tories of making up a “fantasy figure” and denied families will be poorer by £3,500.
During Prime Minister’s Questions on Wednesday Badenoch told the House of Commons, “From Sunday, Labour’s jobs tax will mean many British businesses face a terrible choice: to cut wages, put up prices or sack their staff. What is the Prime Minister’s advice to those businesses?”
Starmer said, “We’re clearing up the mess that they left. We’re dealing with global instability, and we recognise the pressures that are bearing down on businesses and individuals and working people, that’s why we’re rolling up our sleeves.
“And yesterday, I was pleased to announce the national living wage increasing by £1,400, that’s a pay rise for millions of workers.
“We’ve announced £150 for the warm homes discount, extended now to six million households – that’s one in five families – and wages are going up faster than prices.
“And never forget, the party opposite: worst living standards on record, inflation up to 11%, public services left on their knees.”
The Tory leader blasted the “only mess is the one that he made with his budget”, adding: “They had an emergency budget last week that fixed nothing. He says he is bringing stability, all we see is fragility.
“During the election, the Prime Minister also promised that he would not increase taxes on working people, but even the OBR (Office for Budget Responsibility) says that the jobs tax will be passed on to workers. On average, families will be £3,500 poorer. Why should anyone trust him again?”
The Prime Minister said, “Her fantasy figure is about as much use as Liz Truss’s economic planning, and she turns up every week to carp from the sidelines about decisions we made at the budget.
“Yesterday, she held a press conference and she couldn’t say whether she would reverse the decisions that we made at the budget.”
Badenoch replied, “Out there, they are calling it ‘awful April’. That’s because of decisions he made, because he made promises and broke them. His promises are worthless, people are getting poorer.
“Before the election, he pledged to freeze council tax, instead it is going up everywhere, even in Birmingham where there is 17,000 tonnes of rubbish uncollected on the streets. Does the Prime Minister regret promising the British people he would freeze their council tax when he has so obviously failed?”
Starmer bated back, “I have to ask, if she doesn’t want people to be poorer, why didn’t she resign when she was in government? The last government put up council tax for 12 years in a row. She, I think, was actually minister for council tax, and in the years she was, she put it up.
“And even now the Conservative’s own local government association manifesto said currently their position, page nine, we asked the Government to remove the caps on council tax. So who’s leading the charge?”
Badenoch said, “His policies have left our economy dangerously fragile. The Chancellor once again left herself no room for manoeuvre.
“Economic experts, real economists, say she will either have to break her fiscal rules or put up taxes. Which will it be?”
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