In a fiery exchange during Prime Minister's Questions, Sir Keir Starmer and Kemi Badenoch clashed over the handling of the UK economy. Starmer criticized Badenoch's remarks as "cheap political points," while Badenoch questioned the government's financial management. This confrontation comes amid increased market turbulence, rising government borrowing costs, and recent resignations of key ministers.
Sir Keir Starmer, leader of the opposition, dismissed Kemi Badenoch's criticisms, citing past governmental failures. He pointed out that the prime minister has lost two ministers in recent months, including Tulip Siddiq and Louise Haigh. Siddiq resigned as city minister, while Haigh stepped down from her role as transport minister due to an historic fraud conviction. Starmer also drew parallels between these resignations and Priti Patel, who remained as home secretary despite breaching the ministerial code.
Badenoch challenged Starmer on the economic front, highlighting the increased cost of servicing UK debt and stating that the country now spends more on debt than on crucial public services like schools and hospitals. Despite these concerns, the Office for Budget Responsibility found no "black hole" in the budget.
"They flatlined the economy and left us with the worst cost of living crisis in living history and a £22bn black hole, so I won't be taking lessons on the economy from them." – Sir Keir Starmer
Amidst this backdrop, Labour's first budget has faced criticism for raising national insurance costs for employers. Two-thirds of businesses have indicated they will need to raise prices as a result. Badenoch argued that while the prime minister has expressed confidence in Rachel Reeves, the markets remain skeptical.
"The prime minister claims he has full confidence in [Rachel Reeves] but the markets clearly do not," – Kemi Badenoch
Starmer responded to Badenoch's economic critique by highlighting past missteps and emphasizing Labour's long-term vision for economic leadership.
"It wasn't written in green ink but it might as well have been." – Sir Keir Starmer
"It was actually crashing the economy that damaged her reputation." – Sir Keir Starmer