Key Takeaways
- Kemi Badenoch and Keir Starmer clashed at Prime Minister’s Questions over the Budget and Chancellor Rachel Reeves’s handling of public finances
- Badenoch called for Reeves to resign, accusing her of "twisting the facts" to justify tax increases
- Starmer defended the Budget and the decision to lift the two-child benefit cap, which he said would help thousands of children
- The opposition leader also faced questions over welfare spending measures and the resignation of Office for Budget Responsibility (OBR) chair Richard Hughes
Introduction to the PMQs Session
The Prime Minister’s Questions (PMQs) session was dominated by discussions about the Budget, which was announced by Chancellor Rachel Reeves last week. As expected, the opposition leader, Kemi Badenoch, used the opportunity to criticize the government’s handling of public finances and call for Reeves’s resignation. Badenoch accused Reeves of "twisting the facts" to give an overly pessimistic impression of the public finances, which she claimed was used to justify tax increases. This criticism was met with a strong response from Keir Starmer, who defended the Budget and the decisions made by his government.
The Budget and Public Finances
The debate over the Budget and public finances was a central theme of the PMQs session. Badenoch argued that Reeves had presented a misleading picture of the public finances in order to justify tax increases, which she claimed would harm the economy. In response, Starmer maintained that the Budget was a necessary step to address the challenges facing the country and that the government was taking a responsible approach to managing the public finances. The exchange between Badenoch and Starmer highlighted the deep divisions between the government and opposition over economic policy and the role of the state in managing the economy.
Welfare Spending and the Two-Child Benefit Cap
Another key issue that was discussed during the PMQs session was welfare spending, particularly the decision to lift the two-child benefit cap. Starmer faced questions from MPs about the measure, which he said would help thousands of children who had been dragged into poverty by the previous policy. However, Badenoch suggested that the decision to lift the cap was motivated by a desire to appease backbench MPs who had previously rebelled against the government over the issue. This criticism was rejected by Starmer, who argued that the decision was taken to address the poverty and inequality that had been exacerbated by the previous policy.
The Resignation of Richard Hughes
The PMQs session also saw an "urgent" question from shadow chancellor Mel Stride about the resignation of Richard Hughes, the chair of the Office for Budget Responsibility (OBR). Hughes had resigned last week after the OBR published key details of the Budget early, which was seen as a significant error. Treasury minister James Murray responded to the question, stating that Hughes had taken the decision to quit himself and that the government had accepted his resignation. The resignation of Hughes has raised questions about the independence and integrity of the OBR, which is responsible for providing impartial advice on economic policy.
Conclusion and Next Steps
The PMQs session highlighted the deep divisions between the government and opposition over economic policy and the role of the state in managing the economy. The debate over the Budget and public finances is likely to continue in the coming weeks and months, with the opposition seeking to hold the government to account for its decisions. The resignation of Richard Hughes has also raised questions about the independence and integrity of the OBR, which will need to be addressed by the government. As the parliamentary session continues, it is likely that these issues will remain at the forefront of political debate and discussion.