Engagements

1. If he will list his official engagements for Wednesday 5 January.

May I start by wishing you, Mr Speaker, and all Members a happy new year?

Thanks to the heroic efforts of our vaccination programme and people coming forward up and down the country, we managed to ensure that families could still celebrate Christmas. With more than 34 million people now boosted, I want to take this opportunity to say that anybody who has not yet done so should come forward and get boosted now.

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.

With Sadiq Khan’s Transport for London in tatters and the Welsh Labour-nationalist coalition in Cardiff Bay an unfunded devolved disaster, does the Prime Minister agree that the great British public do not need to look back at the last UK Labour Government to see what the Opposition’s answer to all our problems is? It is to bang at the doors of the Treasury and demand that the taxpayer bail them out of their own ineptitude and incompetence.

It is not just Labour’s record in London or in Wales: every Labour Government in history since the second world war has left office with unemployment higher than when they came in. That is because only Conservatives can be trusted to deliver on the economy and on the people’s priorities, which is why, thanks to the policies that we have pursued, this country now has the fastest economic growth in the G7.

A happy new year to you, Mr Speaker, and to the rest of the House.

Over the Christmas break, the world lost a giant in the fight for equality and human rights: the great Desmond Tutu. I offer my condolences to his family and to the people of South Africa.

I thank all the key workers who have kept our essential services running over the festive period. In particular, I thank all the staff and volunteers working at vaccination sites and our amazing NHS staff, who are working incredibly hard in incredibly stretched circumstances. We will come to that after Prime Minister’s questions, with the Prime Minister’s statement. I also thank the formidable Sue Gray, who has been busier than Santa over the festive period.

In October, the Prime Minister said that fears about inflation were “unfounded”, but working people across the country are starting the new year facing rising bills and ballooning prices, so how did he get it so wrong?

Of course, I said no such thing, because inflation is always something that we have to be careful about. We are making sure that we protect the people of this country throughout what is unquestionably going to be a difficult period, which is why we have lifted the living wage by record sums and why we make sure that people have cold weather payments, the warm home discount and all the other protections, including the £500 million fund we have put in to help local councils look after people through what will be a difficult period. The most important thing we can do to look after people during this very difficult time is to ensure that we take the balanced and proportionate approach that we are taking to ensure that we are able to keep our country and our society going, which is exactly what we are doing. That is why we have doubled down on the booster programme and why we are sticking with plan B. That is the right approach for the country.

Inflation is about to hit 6%. That is the highest rate since the early ‘90s, when the Conservatives had been in power for more than a decade—when they were mired in sleaze, with a divided party and a Prime Minister losing the support of his Back Benchers and governing shambolically, and a Labour party ready to take over and provide Britain with a better future. Familiar stuff, Mr Speaker? The Prime Minister promised that wage rises would offset inflation. They have not and they will not. Millions of British workers now face a further pay cut and the Chancellor is handing them a tax hike. What will the Prime Minister do to get a grip of this?

It is great to be here with the right hon. Lady, the shadow Secretary of State for the Future of Work—we know the future job that she has in mind. I wish her well. What we are focused on is delivering jobs for the British people. It is a quite extraordinary thing that there are now record numbers of people in work—420,000 more than there were before the pandemic began. We have youth unemployment at a record low. Never let it be forgotten that when omicron hit this country, what was the instinctive response of Labour Members? [Interruption.] That is right, Mr Speaker. They said that we needed a road map to lock down. If we had listened to them, we would not have anybody working at all.

I have heard on the grapevine that there might be a vacancy for Prime Minister soon, so perhaps I should have aspirations.

The Prime Minister pretends that it is not his fault. He blames the global forces. He blames the markets. We are an aspirational party. Perhaps the Prime Minister needs to be more aspirational for this country. The Prime Minister has made political choices that have led us to this place. His Government have failed to invest in long-term energy security. His Government decided to let gas storages collapse. His Government let the energy market run out of control: 27 energy companies have gone bust in the past year, and now household bills are going through the roof, or, as the Money Saving Expert Martin Lewis put it, there will be a “seismic” hit to energy bills. Cannot the Prime Minister see what is happening? Yet again, working families are picking up the tab for his incompetence.

The right hon. Lady talks about energy. I think the House would agree that she has a lot more energy than the current Leader of the Opposition. I welcome her point, because what the Government are doing is supporting people throughout the pandemic: 2.2 million people supported with the warm home discount, worth £140 per week, which we introduced; pensioners supported with the £300 winter fuel payments; and there are cold weather payments worth £25 a week for 4 million people up and down the country. That is what we are doing, and that is on top of everything that we are doing to support people on low incomes. We are cutting taxes for those on universal credit and increasing the living wage—£1,000 more for everybody on the living wage. These are record sums. Let me remind the House of the fundamental difference between that Labour party and this Government. Labour Members would have kept us in lockdown in July. When omicron hit, they were calling for further restrictions. [Interruption.] That is right, Mr Speaker. We have been able to keep this country moving, keep the economy growing, and keep the money going into people’s pockets.

I will tell you what this Prime Minister is doing, Mr Speaker. He is increasing taxes for the hard-working people of this country. That is what he is doing. That is what he did not promise to do in his manifesto, but that is what he is doing to the people.

“The poorest households spend three times more of their income on household energy bills than the richest households spend”,

and

“VAT on…energy bills…makes gas and electricity…more expensive.”

Those are not my words, but the words of the Prime Minister himself. When energy bills are to be hiked again in April, any decent Government would find a way to help British families. Even Tory Back Benchers have finally accepted Labour’s call for a cut in VAT on energy bills, so will the Prime Minister finally stand up to his Chancellor and do the same?

The right hon. Lady obviously did not listen to my previous answer. Let me remind her that the warm home discount already supports 2.2 million people to the tune of £140 a week. Pensioners are supported with £300 through the winter fuel payment, and there are cold weather payments for 4 million people. The Opposition now have the effrontery, having campaigned to remain in the European Union—and she did too, did she not? [Hon. Members: “Yes!”] Oh yes, she campaigned to remain in the EU. [Interruption.] Oh yes she did—and they now have the barefaced cheek to come to this House of Commons and say that they want to cut VAT on fuel—[Interruption]—and so did the shadow Foreign Secretary—when everyone knows full well that that would be absolutely impossible if we were to do what Labour would do, go back into the EU and remain aligned with the EU single market. That is the objective of the Labour party. It cannot be trusted on Brexit, and it cannot be trusted on the economy.

Prime Minister, how’s it going? Are you okay?

The Prime Minister and his Chancellor have presided over economic mismanagement, low growth, and neglect of our public services, and what is their solution to fix that? Whacking more taxes on to working people. When the tax rises are combined with soaring energy prices, the average family faces a £1,200 hit. This is an iceberg, right ahead of us, so will the Prime Minister finally stop and change course—[Interruption.]

Order. We did not start the new year in the way we left the last one. I was given an assurance that we would try to calm down, so if we could, it would be helpful.

Given that hit of £1,200, will the Prime Minister finally stop and change course, or will he plough on towards what will be a disaster for thousands of families?

As a direct result of what we have already done on universal credit, a single mother with two kids is £1,200 better off. As a result of what we have done with the living wage—introduced by this Conservative Government, never let it be forgotten—everyone on that living wage has seen another £1,000 of income every year. But that is not the point. We will continue to look after people throughout the pandemic, but the fundamental point is that because of the steps that the Government have taken—because of the tough decisions we have taken, and because of our balanced and proportionate approach to covid—we have been able to keep this country open and keep our economy moving. We have kept our economy more open than any comparable economy in Europe, and the Opposition know it, although they opposed it on every step of the way. That is why people are seeing increases in employment, and increases in their pay packets as well.

The Prime Minister always gives with one hand and takes away more with the other. Under this Prime Minister, the country is worse off. Prices of everyday goods are soaring out of control. Hard-earned savings will be hit, and the wages of working people will not go as far. Inflation is not an economic theory; it has serious consequences for people’s lives. We need serious solutions to stop people falling into poverty or debt, but instead we have this Prime Minister and his incompetent leadership.

Every time we are faced with a challenge, he denies that there is a problem. He tries to laugh it off. He looks for someone else to blame. May I suggest to the Prime Minister that this is not about brushing his hair, but about brushing up his act? Does he accept that his incompetence is taking our country backwards and costing our country dear?

No—what I would tell the House and the country is that Labour incompetence has ruined this country time and time again. There has never been a Labour Government that have left office with unemployment lower than when they came in. And what is the right hon. Lady’s answer to the energy crisis? It is to nationalise our energy.

It was in fact Labour’s failure to invest in supply over a decade or more that reduced our ability to have cheaper, cleaner energy. We are rectifying that. We are taking the tough decisions that this country needs for the long term. It is because we have taken those tough decisions—because we have taken the balanced and proportionate approach we have that they opposed every step of the way—that we have youth unemployment at a record low. We have 420,000 more people in jobs now than there were before the pandemic began, and we have not only the most open society and economy in Europe but the fast economic growth in the G7. That is completely contrary to what the right hon. Lady has just said, and it is because of our stable, balanced and proportionate approach. Never let it be forgotten that when omicron presented itself, what did they vote for? They reached for the lever of more restrictions. They said lockdown; we said boosters. They carp from the sidelines; we get on with the job.

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