Key Takeaways
- The Leader of the Opposition, Kemi Badenoch, called for Chancellor Rachel Reeves to resign over her handling of the Budget
- Prime Minister Keir Starmer defended the Budget and his Chancellor, accusing the Tories of being "utterly ashamed" of their previous welfare spending measures
- The decision to lift the two-child benefit child cap was a major point of contention, with Starmer claiming it would help thousands of children and Badenoch suggesting it was a move to appease backbench MPs
- The Office for Budget Responsibility (OBR) chair, Richard Hughes, resigned after an error saw key details of the Budget published early
- The Treasury minister, James Murray, stated that Hughes’ resignation was his own decision
Introduction to the Post-Budget PMQs
The post-Budget session of Prime Minister’s Questions (PMQs) was highly anticipated, and as expected, it was dominated by discussions of Chancellor Rachel Reeves’s policy announcements. The Leader of the Opposition, Kemi Badenoch, was quick to criticize the Chancellor, accusing her of "twisting the facts" and giving an overly pessimistic impression of public finances in order to raise taxes. Badenoch reiterated her calls for Reeves to resign, sparking a heated debate in the chamber. Prime Minister Keir Starmer jumped to his Chancellor’s defense, maintaining that he is proud of the Budget and dismissing Badenoch’s concerns.
The Two-Child Benefit Child Cap Debate
One of the most contentious issues discussed during PMQs was the decision to lift the two-child benefit child cap. Starmer told the Tories that they should be "utterly ashamed" of the measure, which he claimed had dragged "thousands" of children into poverty. However, Badenoch suggested that the Prime Minister was only lifting the measure to appease backbench MPs, after he previously removed the whip from several MPs who voted in favor of it. This exchange highlights the deep divisions between the parties on welfare spending and the impact of the Budget on vulnerable families. The decision to lift the cap is seen as a significant shift in policy, and its implications will likely be felt for years to come.
The Office for Budget Responsibility (OBR) Chair Resignation
In addition to the Budget debate, the chamber also heard an "urgent" question from shadow chancellor Mel Stride regarding the circumstances of OBR chair Richard Hughes’s resignation. Hughes resigned after an error saw key details of the Budget published early, causing embarrassment for the government. Treasury minister James Murray stressed that Hughes took the decision to quit himself, and that it was not a result of any external pressure. This incident has raised questions about the independence and integrity of the OBR, and the government’s handling of sensitive economic information.
Conclusion and Next Steps
As PMQs came to a close, it was clear that the debate over the Budget and its implications would continue in the days and weeks to come. The opposition will likely continue to press the government on its handling of the economy and its impact on vulnerable families. The government, on the other hand, will need to defend its policies and demonstrate that they are working in the best interests of the country. The resignation of the OBR chair has added an extra layer of complexity to the situation, and it remains to be seen how this will play out in the future. As the dust settles on the Budget, one thing is clear: the debate over the economy and welfare spending will be a major theme in the coming months.
