The Labour government’s “ideological” Budget was “designed to milk the private sector”, Tory leader Kemi Badenoch has claimed.
Quizzing Sir Keir Starmer during Prime Minister’s Questions (PMQs) today, the Conservative leader accused the Labour leader of “having nothing to offer but platitudes”.
She said: “Their ideological Budget was designed to milk the private sector and hope nobody would notice
“Now his cabinet ministers are all queuing up for public sector bailouts from his tax mess.”
But Starmer insisted: “What did they deliver in 14 years? Low growth, a stagnant economy, a disastrous mini-Budget, a £22bn black hole.
“And now she wants to give me advice on running the economy! I don’t want to be rude, but no thank you very much.”
Badenoch’s comments came as the government faces increasing pressure to revisit its hikes to employer national insurance contributions (NIC) and the minimum wage.
Some 200 of the UK’s biggest hospitality firms wrote to the Chancellor this week warning the additional tax bill will force some into liquidation as well as headcount and investment cuts.
The letter, signed by Premier Inn-owner Whitbread, Wagamama operator The Restaurant Group and pub giant Marston’s, came as major supermarkets including Tesco, Sainsbury’s and Asda revealed they faced hikes of hundreds of millions of pounds to their NIC bills.
Badenoch pressed Starmer over the impact of employer NIC hikes on local councils, dubbing Rachel Reeves a “copy-and-paste” Chancellor.
She told MPs: “With no separate funding for the Chancellor’s Budget announcements, care providers will likely see increased costs, which will cost councils more.
“It is clear that they had not thought through the impact of the Budget, and this is the problem with having a copy-and-paste Chancellor.
“Did they not realise care homes, GP surgeries, children’s nurseries, hospices and even charities have to pay employers’ national insurance?”
Sir Keir replied: “We have put more money into local authorities than they did in 14 years – the absolutely catastrophic state.
“We produced a Budget which does not increase tax on working people, nothing in the payslip, investing in our NHS, investing in our schools, so every child could go as far as their talent will take them, investing in the houses of the future. If she is against those things, she should say so.”
The opposition leader said she was “not against any of those things, of course not, none of us are against any of those things” – but Starmer argued: “She doesn’t want any of the measures in the Budget, but she wants all the benefits.”
While the Prime Minister was also quizzed by Liberal Democrat MP Christine Jardine over the “genuine fears” from GP surgeries over the impact of employer NIC changes.
“They’re far from the only ones struggling, particularly in the health and social care sectors,” she said.
Starmer insisted his government had taken “tough decisions” while increasing NHS funding by some £22bn over two years.
“We will ensure GP practices have the resources we need and funding arrangements will be set out in the usual way,” he stressed.
Labour Party chairman Ellie Reeves responded to Badenoch’s comments, and said the Tory leader “is trying to have her cake and eat it”.
She said: “The Tories want all of the benefits of the Budget, yet they voted against it and they have no plan to pay for it.
“It’s time they told the public where they would find the money to pay for more investment in schools and the NHS.”