I am honoured to take my place as Prime Minister in this House and to take on responsibility at a vital time for our country. I am determined to deliver for everybody across our United Kingdom. I will work constructively with all Members of this House to tackle the challenges we face.
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.
Can I warmly welcome the Prime Minister to her place? This is her first Prime Minister’s question, and it is also mine.
In a leaked audiotape, the Prime Minister is heard saying that British workers need to put in “more graft” and that they are lacking in “skill and application”. She also wants to take away their basic workers’ rights. In my Erdington constituency, the latest figures from the Commons Library show that children in over 7,000 households are living in child poverty and that 68% of those households have working parents. So does the Prime Minister believe that thousands of working parents on low income in my community should just put in more graft?
I congratulate the hon. Lady on her first Prime Minister’s question. What I am determined to do as Prime Minister is to make sure we have an economy with high wages and high-skilled jobs, and the way I will achieve that is through reducing taxes on people across our country and boosting economic growth. That is the way that we will make sure we get the investment and the jobs that people deserve.
Q3. I want to warmly congratulate my right hon. Friend on becoming the third woman Prime Minister of this great country. I wish her well with her premiership, and I am going to ask her about pubs today. A pub restaurant in my constituency of Barnet got in touch with me to say they were struggling to find an energy supplier, and the quotes they had got hold of showed that they would be paying a 600% increase in their bill to £320,000. They cannot survive that. Will she ensure her plan to tackle the energy price crisis helps businesses in the hospitality sector, which our communities value so much?
My right hon. Friend is absolutely right. The hospitality industry is vital, and I will make sure that our energy plan, which will help support businesses and people with the immediate price crisis, as well as making sure there are long-term supplies available, will help businesses as well as helping individual households.
Thank you, Mr Speaker. May I congratulate the Prime Minister on her appointment? When she said in her leadership campaign that she was against windfall taxes, did she mean it?
I thank the right hon. and learned Gentleman for his welcome. I hope that we will be able to work together, particularly in areas we agree on. I know that we have had strong support from the Opposition in opposing Vladimir Putin’s appalling war in Ukraine, and I want us to continue to stand up to that appalling Russian aggression, which has led to the energy crisis we face now. I am against a windfall tax. I believe it is the wrong thing to be putting companies off investing in the United Kingdom, just when we need to be growing the economy.
I thank the Prime Minister for her answer. I ask because Treasury estimates are that the energy producers will make £170 billion in excess profits over the next two years. The Prime Minister knows that she has no choice but to back an energy price freeze, but that won’t be cheap, and the real choice—the political choice—is who is going to pay. Is she really telling us that she is going to leave those vast excess profits on the table and make working people foot the bill for decades to come?
I understand that people across our country are struggling with the cost of living, and they are struggling with their energy bills. That is why I as Prime Minister will take immediate action to help people with the cost of their energy bills. I will be making an announcement to this House on that tomorrow, and giving people certainty to make sure that they are able to get through this winter, able to have the energy supplies and able to afford it. But we cannot just deal with today’s problem; we cannot just put a sticking plaster on it. What we need to do is increase our energy supplies long term. That is why we will open up more supply in the North sea, which the right hon. and learned Gentleman has opposed, and why we will build more nuclear power stations, which the Labour party did not do when it was in office. That is why we will get on with delivering the supply, as well as helping people through the winter.
I look forward to tomorrow’s statement, but the money has got to come from somewhere. The Prime Minister knows that every single pound in excess profits that she chooses not to tax is an extra pound on borrowing that working people will be forced to pay back for decades to come. More borrowing than is needed—that is the true cost of her choice to protect oil and gas profits, isn’t it?
The reality is that this country will not be able to tax its way to growth. The way we will grow our economy is by attracting investment, keeping taxes low, and delivering the reforms to build projects quicker—that is the way that we will create jobs and opportunities across our country.
So, Mr Speaker, the right hon. Lady’s first act as Prime Minister is to borrow more than is needed because she will not touch excess oil and gas profits. On that topic, how much would her planned corporation tax cut hand out to companies?
The right hon. and learned Gentleman is looking at this in the wrong way. The last time we cut corporation tax, we attracted more revenue into the Exchequer because more companies wanted to base themselves in Britain, and more companies wanted to invest in our country. If taxes are put up and raised to the same level as in France—that is what the current proposal is, which I will change as Prime Minister—that will put off investors, and it will put off those companies investing in our economy. Ultimately, that will mean fewer jobs, less growth, and fewer opportunities across our country.
It is extraordinary that the Prime Minister is not only refusing to extend the windfall tax but choosing to hand the water companies who are polluting our beaches a tax cut. She is choosing to hand the banks a tax cut. Add it all together, and companies who are already doing well are getting a £17 billion tax cut while working people pay for the cost of living crisis, stroke victims wait an hour for an ambulance and criminals walk the streets with impunity. Families and public services need every penny that they can get. How on earth does she think that now is the right time to protect Shell’s profits and give Amazon a tax break?
I am on the side of people who work hard and do the right thing. That is why we will reverse the national insurance increase, and that is why we will keep corporation tax low, because ultimately we want investment right across our country. We want new jobs and new opportunities, and that is what I will deliver as Prime Minister.
The Prime Minister claims to be breaking orthodoxy, but the reality is that she is reheating George Osborne’s failed corporation tax plans, protecting oil and gas profits, and forcing working people to pay the bill. She is the fourth Tory Prime Minister in six years. The face at the top may change, but the story remains the same.
There is nothing new about the Tory fantasy of trickle-down economics and nothing new about this Tory Prime Minister who nodded through every single decision that got us into this mess and now says how terrible it is. Can she not see that there is nothing new about a Tory Prime Minister who when asked, “Who pays?” says, “It’s you—the working people of Britain”?
There is nothing new about a Labour leader who is calling for more tax rises. It is the same old, same old tax and spend. What I am about is reducing taxes, getting our economy growing, getting investment and getting new jobs for people right across the country.
I am afraid to say that the right hon. and learned Gentleman does not understand aspiration. He does not understand opportunity. He does not understand that people want to keep more of their own money. That is what I will deliver as Prime Minister. I will take immediate action to help people with their energy bills but also secure our long-term energy supply. I will take immediate action to ensure that we have lower taxes and grow the economy. In that way, I will ensure that we have a positive future for our country and get Britain moving.
Q9. First, may I congratulate my right hon. Friend the Prime Minister on her successful campaign to become our party leader and the Prime Minister of the United Kingdom? It is right and proper that the Government focus their attention on rising energy costs for households across the country, but, as we have heard, businesses big and small are exposed to horrific energy price increases with no restraint provided by the domestic energy price cap and no support so far from Government. For the sake of businesses in west Cornwall and on Scilly, the jobs that they provide and the economy as a whole, what can my right hon. Friend the Prime Minister do to ease the energy costs that our businesses face?