Engagements

Before we come to Prime Minister’s questions, may I extend a warm welcome to the President of the National Council of the Slovak Republic and his delegation, who are with us in the Gallery? May I also welcome the new Chief Minister of Saint Helena?

Q1. If he will list his official engagements for Wednesday 19 November.

Let me start by congratulating Scotland on its magnificent victory last night. It qualified for the World cup for the first time since 1998—[Interruption.]

Order. I did not realise that you were all Scottish MPs!

Scotland qualified with fantastic goals, including a cracker from former Arsenal player Kieran Tierney, who was always a favourite with the fans.

My thoughts are with the communities across the country affected by severe flooding, particularly in Monmouthshire. I have been liaising with the First Minister of Wales, and I thank all our emergency services for their response.

My thoughts are also with the family and loved ones of Royal Fleet Auxiliary member James Elliot, who has sadly been lost. I know the contribution that the personnel of the Royal Fleet Auxiliary make, and the risks that they take in the line of duty. My thoughts and, I am sure, the thoughts of the whole House are with those who knew him at this tragic and difficult time for them.

Last Thursday, I visited Anglesey to announce the construction of the country’s first small modular reactor. That is the biggest investment in north Wales in a generation, creating more than 6,000 jobs.

On Monday, we introduced the largest overhaul of the asylum policy in modern times, restoring control and fairness, and creating safe and legal routes.

Today, I am pleased to announce that inflation is coming down. There is more to do, but it is an important step. 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.

Many of us are becoming concerned that technical or procedural manoeuvres outside this House may be used to prevent Parliament from reaching a decision on the Terminally Ill Adults (End of Life) Bill. The Government are neutral on the Bill itself, but I presume they are not neutral on the issue of democracy or the primacy of this Chamber. Will the Prime Minister reassure the House that the decision of elected Members—and, indeed, the wishes and hopes of the vast majority of the people we serve—will not be frustrated in this way?

I know the right hon. Gentleman feels strongly about this issue. As he says, the Government are neutral on the passage of the Bill. It is a matter of conscience; there are different and respected views across Parliament, and it is for Parliament to decide in the end on any changes in this Chamber. Scrutiny of the Bill in the Lords is a matter for the Lords, but the Government have a responsibility to ensure that any legislation that passes through Parliament is workable, effective and enforceable.

Q3. When the Conservatives were in government, they said that they would level up the country, but in fact they left the country divided. Austerity, de-industrialisation and stagnant wages all ripped the heart out of mining communities like the ones I represent. Everywhere we can see the legacy that the Conservatives left. How can it be right that the hard-working, loyal people in my constituency earn £400 a week, or £20,000 a year, less than people who live in Kensington? Will the Prime Minister declare that it is the Government’s moral purpose to eliminate economic injustice—starting, in the Budget next week, with an announcement of massive investment in the north, and wherever else poverty and low pay raise their heads?

I thank my hon. Friend for raising this important issue. [Laughter.] Conservative Members laugh, but working people paid a very heavy price for 14 years of economic failure. Austerity damaged the economy and decimated public services; the botched Brexit deal stifled growth; and the reckless borrowing of the mini-Budget saw mortgages and the cost of living soar.

My hon. Friend is right to raise this issue. We are determined to tackle inequality; he will be pleased to know that under this Government, wages are up, but we need to do more. We have had a pay increase for the 3.5 million lowest-paid, and the Chancellor will deliver a Budget based on Labour values.

I call the Leader of the Opposition.

I associate Conservative Members with the remarks the Prime Minister made about James Elliot.

Can the Prime Minister tell us why his Government are the first Government in history to float an increase in income tax rates, only to then U-turn on it—all after the actual Budget?

I can inform the Leader of the Opposition that the Budget is actually next week. She only has one week to go, but I can tell her that it will be a Labour Budget with Labour values. That means that we will concentrate on cutting NHS waiting lists, cutting debt, and cutting the cost of living. Because of the decisions we have already made, inflation is down this morning, the Bank of England has upgraded growth, and we have a record £230 billion of investment in this country under this Government.

The Prime Minister says that the Budget is next week, but we read all about it in the papers. This is the first Budget to unravel before it has even been delivered. I am afraid that the Chancellor’s cluelessness is damaging the economy now. The Prime Minister needs to end this shambles, so can he confirm today that he will not break another promise by freezing income tax thresholds?

The Budget is one week today, and we will lay out our plans then. I have said what we will do, in terms of protecting the NHS and public services; what we will not do is inflict austerity on the country, as the Conservatives did, which caused huge damage. What we will not do is inflict a borrowing spree, like Liz Truss did, which also inflicted huge damage. Have the Conservatives learned anything? The Leader of the Opposition apparently has a golden economic rule—it is very important, this golden rule. It is £47 billion of cuts with no detail. No wonder the Institute for Government says that they are on very shaky foundations. They have not listened, and they have not learned.

It is quite clear that the Government are going to freeze thresholds; we did not get a clear answer from the Prime Minister, but this is really important. In her Budget speech last year, the Chancellor said:

“I am keeping every single promise on tax that I made in our manifesto, so there will be no extension of the freeze in income tax and national insurance thresholds”.—[Official Report, 30 October 2024; Vol. 755, c. 821.]

Why was freezing thresholds a breach of the manifesto last year, but not this year?

Every week, the Leader of the Opposition comes along and speculates and distorts. Last year, the Conservatives predicted a recession, and what did we get? The fastest-growing economy in the G7 in the first half of the year. They opposed NHS investment, and what did we get? Five million extra appointments in the first year of a Labour Government. The Conservatives tried growing the economy with millions on NHS waiting lists, with our schools crumbling and holes in our roofs. It did not work. What do they want to do now? Go back to the same failed experiment.

The Prime Minister talks about speculation. The only people who have been speculating are his Government, every single day for the last three months. He mentioned inflation in his last answer; inflation has nearly doubled since Labour came into office. He wants a round of applause because it has come down a little bit, but I will remind him that food inflation is up to 4.9%. That is making life miserable for all of those people out there.

The Leader of the Opposition talks about inflation, but it went to 11% and the country is still paying the price. Inflation is down this morning, wages are up and we have had five interest rate cuts, and that is because our fiscal rules are iron-clad. She and the Conservatives have no credibility on the economy. She was a Treasury Minister during the worst decline in living standards on record. She said that Liz Truss got the mini-Budget 100% right. There is not much room for flexibility there—100%; that is full marks. She might want to tell us whether that is still her position—100% right for Liz Truss.

I was a Treasury Minister at the height of the pandemic, and we cleaned up that mess. Perhaps the Prime Minister will clean up some of his own mess. I will repeat what the Chancellor said, because it is clear that the whole Labour Front-Bench team have forgotten:

“I have come to the conclusion that extending the threshold freeze would hurt working people. It would take more money out of their payslips.”—[Official Report, 30 October 2024; Vol. 755, c. 821.]

That, however, is what Labour is planning to do next week. All this speculation is having real-world consequences. Just this morning, the UK chair of ExxonMobil said:

“The Government needs to understand that the whole industrial base of the UK is at risk unless they wake up and realise the damage their economic policies are doing.”

Can the Prime Minister tell us whether the loss of UK industry is the price that the country has to pay for having a clueless Chancellor?