On Monday, I was honoured to join President Macron to mark Armistice Day in Paris and, together, we paid tribute to the fallen of the first world war, and all subsequent conflicts, who made the ultimate sacrifice for the freedom that we enjoy today.
I also attended the COP summit. My focus, as ever, was on British energy security and the jobs of the future that should be on our shores—central issues of concern to people in this country. It is also Islamophobia Awareness Month, and I reaffirm our commitment to standing against discrimination and racism in all their forms.
This morning, I had meetings with ministerial colleagues and others. In addition to my duties in this House, I shall have further such meetings later today.
In the two weeks since the Budget, several GP practices in my constituency of Edinburgh West, including my own, have contacted me with their genuine fears that the impact of the changes to national insurance employer contributions will threaten their ability to continue to offer the public the same standard of health service that they currently receive. And they are far from the only ones struggling, particularly in the health and social care sectors. Can the Prime Minister explain to me—perhaps he and his Chancellor would like to come to my constituency and explain to GPs, charities and others—how they are meant to cope without extra support from the Government?
Because of the tough decisions that we took, we have put forward a Budget with an extra £25.6 billion for the NHS and for social care. That includes an increase to carers’ allowance and £600 million to deal with the pressures of adult social care. We will ensure that GP practices have the resources that they need, and the funding arrangements between the NHS and contractors will be set out in the usual way.
Q2. Members have raised their concerns about a range of damaging policies pursued by the Leader of the Opposition. This includes voting against critical investment for our NHS, stating that maternity pay is excessive and the minimum wage a burden, and even backing harmful fracking when last in government. Is the Prime Minister aware of any attempt by the Leader of the Opposition to justify these dangerous positions, which would cause untold damage to communities such as mine in South Dorset?
This Government have given millions of people a pay rise of £1,400 by boosting the minimum wage. We have strengthened parental leave with better rights for parents and put huge investment into our schools and NHS—and all that while ensuring that the payslips of working people have not been affected. It is clear whose side we are on: the working people of this country. I have not heard the Leader of the Opposition clarify why she opposes all these things, but now is her chance.
The Prime Minister can plant as many questions as he likes with his Back Benchers, but at the end of the day I am the one he has to face at the Dispatch Box. I welcome him back from his trip to Azerbaijan, where he has unilaterally made commitments that will make life more expensive for everyone back home. Speaking of making life—[Interruption.]
I can pre-prepare my questions, but the Prime Minister needs to answer from his mind. He has made life more expensive with his unilateral commitments but, speaking of making life more expensive, will the Prime Minister confirm that he will keep the cap on council tax?
The right hon. Lady talks of the trip to COP. I am very proud of the fact that we are restoring leadership on climate to the UK, because that will be measured in lower bills, energy independence and the jobs of the future. She may have missed this, but on Monday I was very pleased to announce a huge order into jobs in Hull for blades for offshore wind. If she is opposed to that sort of action, she should go to Hull and say so. On the question of councils, she knows what the arrangements are.
I think the House will have heard that the Prime Minister could neither confirm nor deny whether the cap on council tax was being raised, so I will ask him this: how much extra does he expect local authorities will have to raise to cover the social care funding gap created by the Chancellor’s Budget and increases in employers’ NI? He told the hon. Member for Edinburgh West (Christine Jardine) just now that he was covering social care. How much extra does he expect local authorities to raise?
This knockabout is all very well, but not actually listening to what I said three minutes ago is a bit of a fundamental failure of the Leader of the Opposition. I just said £600 million, and I repeat it: £600 million.
The Prime Minister has repeated that number because he has probably not listened to the Labour-run Local Government Association, which said that with no separate funding for the Chancellor’s Budget announcements, care providers would likely see increased costs, which will cost councils more. All of the £600 million in grant increase he is giving will not cover what is required for adult social care. It is clear that the Government have not thought through the impact of the Budget, and this is the problem with having a copy-and-paste Chancellor. Did they not realise that care homes, GP surgeries, children’s nurseries, hospices and even charities have to pay employers’ NI?
We have put more money into local authorities than the Conservatives did in 14 years. They left them in an absolutely catastrophic state. We have produced a Budget that does not increase tax on working people—nothing in the payslip—and is investing in our NHS, investing in our schools so every child can go as far as their talent will take them, and investing in the houses of the future. If she is against those things, she should say so.
I am not against any of those things—[Hon. Members: “Ah!”] Of course not; none of us is against any of those things. But the Prime Minister has confirmed that he does not know what is going on. He probably does not realise that on Monday the Ministry of Housing, Communities and Local Government revealed that councils will need to find an additional £2.4 billion in council tax next year. That is a lot more than £600 million. I know he has been away, but did the Deputy Prime Minister, who runs that Department, make him aware of their £2.4 billion black hole?
Let me get this straight: the Leader of the Opposition does not want any of the measures in the Budget, but she wants all the benefits? The magic money tree is back after two weeks in office. The Conservatives have learned absolutely nothing. We have put forward a Budget that takes the difficult decisions, fixing the £22 billion black hole that they left and investing in the future of our country. They say that they want all that, but they do not know how they will pay for it—same old Tories.
Even the Prime Minister must admit that Labour fiddled the fiscal rules. The Office for Budget Responsibility has said that it does not recognise where the additional growth will come from. The fact is that the rise in employer national insurance will be a disaster for small businesses around the country. Let me tell you about Kelly, Mr Speaker. For over 20 years, Kelly has run an after-school club business supporting 500 children and families in her borough. In 2024, her national insurance cost was about £10,000; in April, that will rise to £26,000—that is a 150% increase in costs from the Budget alone. If Kelly’s small business goes under, what is the Prime Minister’s message to her and the 500 families it supports?
I would say this to Kelly: we inherited a very badly damaged economy and a £22 billion black hole, and we were not prepared to continue with the fiction. We stabilised—[Interruption.]