Starmer and Badenoch clash over economy at PMQs
Conservative leader Kemi Badenoch and Prime Minister Sir Keir Starmer clashed over the economy during a heated session of prime minister’s questions. Badenoch accused the labour government of mismanaging the nation’s finances, claiming the UK was now “spending more on debt than on schools and hospitals.”
Addressing MPs, Badenoch criticised the government’s handling of public finances, stating: “His budget means fewer jobs, lower growth and higher borrowing costs.” She questioned whether Chancellor Rachel Reeves would resort to raising taxes in her upcoming March mini-budget to plug the fiscal gaps.
Defending his government’s record, Starmer dismissed the claims and reaffirmed his confidence in Reeves. He insisted that Labour’s fiscal rules were “iron-clad” and that the government could not “just tax and spend [its] way out of problems.” The prime minister added, “Rachel Reeves will be chancellor for many, many years to come.”
Rising borrowing costs and economic criticism
Recent turbulence in the financial markets has exacerbated the government’s economic challenges. Borrowing costs have reached their highest levels in years, placing added pressure on public finances. Badenoch seized on this, arguing that the Labour government’s policies had worsened the situation.
She further accused Labour of creating an economic environment that forced businesses to raise prices. “Two-thirds of businesses have complained they will need to raise prices as a result of Labour’s first budget, which increased national insurance costs for employers,” Badenoch said.
Attempting to undermine Reeves, Badenoch questioned her qualifications, saying, “Labour congratulated themselves on having the first female chancellor, instead of ensuring they had somebody who was qualified for the job.” She also claimed that market confidence in Reeves was waning.
Starmer fires back
Starmer hit back, labelling the Conservatives “economic vandals and fantasists” and asserting that his government’s focus was on delivering economic growth. He criticised the Conservatives for “flatlining the economy,” leaving the country with “the worst cost of living crisis in living history” and creating what he described as a £22 billion fiscal black hole.
“They [the Conservatives] left us with the mess we’re now working to fix, so I won’t be taking lessons on the economy from them,” Starmer said. He dismissed Badenoch’s claims about a fiscal black hole, stating they were not backed by the Office for Budget Responsibility.
In a sharp retort, Starmer pointed out inconsistencies within the Conservative Party, referencing the controversial tenure of Priti Patel as Home Secretary under previous Tory governments. “They’re quick to throw insults, but let’s not forget their own record, with ministers breaching the ministerial code and staying in post,” he said.
Ministerial resignations and liz truss
Badenoch also attacked Starmer’s leadership, highlighting the recent resignations of city Minister Tulip Siddiq and transport minister Louise Haigh. Siddiq stepped down after a disagreement over government policy, while Haigh resigned following revelations of a historic fraud conviction.
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Starmer brushed aside these attacks as “cheap political points,” contrasting them with the actions of former tory ministers who faced scandals but remained in office. He particularly referenced the resignation of Liz Truss as conservative prime minister, mocking a recent letter she wrote demanding labour stop blaming her for “crashing the economy.”
“It wasn’t written in green ink, but it might as well have been,” Starmer quipped. “It was actually crashing the economy that damaged her reputation.”
Divided opinions and march mini-budget
The fiery exchanges underscored the growing political divide over the UK’s economic direction. While Labour defends its focus on growth and fiscal responsibility, the Conservatives continue to question the credibility of the government’s economic team.
The upcoming March mini-budget, to be presented by Rachel Reeves, is likely to be a critical moment for the Labour government. It remains to be seen whether Reeves can navigate rising borrowing costs and deliver a plan that satisfies both the markets and the public.
