In today’s Prime Minister’s Questions (PMQs), Keir Starmer faced intense scrutiny over the government’s handling of the economy.
The session revealed potential misrepresentations by Starmer and highlighted pressing national issues.
As the political landscape shifts, the implications for the UK economy are becoming clearer.
The Prime Minister had previously laid out his criteria for growth: if a policy is beneficial for economic expansion, it gets a green light; if not, it’s a no-go.
However, this morning, Chancellor Jeremy Hunt backed several Conservative policies that, while popular, may take years to show results.
Reflecting on past performance, when the Conservatives last held power, the UK experienced rapid economic growth compared to other G7 nations.
Yet, the current government seems to be stalling progress rather than propelling it forward.
Starmer pointed out that the Employment Bill, according to government estimates, would impose a hefty £5 billion burden on businesses annually, contradicting the Prime Minister’s growth criteria.
He pressed the Prime Minister to reconsider this legislation, questioning its alignment with the government’s stated goals.
The narrative that the previous administration left behind a robust economy has been challenged, leading to the Conservatives’ current position in opposition.
In contrast, Starmer emphasized the achievements of his own administration, claiming it has reached the highest investment levels in nearly two decades.
Notably, PwC has rated the UK as the second-best destination for global investment.
Furthermore, the International Monetary Fund (IMF) has revised growth forecasts, suggesting the UK could become the fastest-growing major economy in Europe.
Still, Starmer acknowledged that there’s work left to do, particularly in planning reforms and housing development.
Despite these claims, Starmer pointed out a significant issue: the Conservatives have seemingly lost the trust of the business community.
He argued that the Prime Minister is avoiding discussions about the Employment Bill, possibly due to a lack of understanding of its implications.
Last week, the Prime Minister was accused of misleading Parliament regarding his Education Bill, raising concerns about transparency and accountability.
Starmer shared a concern voiced by a small business owner from Exeter, who expressed hesitance in hiring due to uncertainty surrounding government decisions.
According to the Federation of Small Businesses, a staggering 92% of small employers are apprehensive about the Employment Bill, which they believe creates barriers to hiring, especially for young job seekers.
Starmer provocatively labeled the bill an “Unemployment Bill,” urging the Prime Minister to retract it to demonstrate a commitment to growth.
The Labour leader defended the party’s stance on worker protections, asserting that their goal is to ensure dignity in the workplace.
He criticized the opposition for resisting measures that safeguard employees and reiterated that responsible work rights naturally contribute to economic growth.
Alongside planning reforms, he mentioned the Oxford-Cambridge Growth Corridor and developments at East Midlands Airport as key initiatives aimed at economic expansion.
Starmer raised alarms about the Employment Bill’s provisions, suggesting it could allow new employees to file tribunal claims within hours of starting their jobs.
He described this situation as creating a legal “adventure playground,” questioning whether the Prime Minister truly grasps the ramifications of his own legislation.
Business owners are reportedly anxious about the potential fallout, with the only apparent beneficiaries being lawyers.
Furthermore, Starmer highlighted that the Bill would extend the powers of trade unions, reducing strike notice periods to just one week.
He argued that such changes could be detrimental to growth and urged the Prime Minister to reconsider these aspects of the legislation.
The confidence expressed by Starmer in the government’s measures drew attention to the broader economic landscape.
The Confederation of British Industry (CBI) has reportedly welcomed the Chancellor’s recent remarks on economic recovery, yet Starmer warned that the belief that the government alone fosters growth is misguided.
He emphasized that it is the entrepreneurs and risk-takers who truly drive the economy, noting that one cannot simply tax or legislate their way to prosperity.
In related news, a prominent bakery chain chairman criticized the Labour government’s proposed tax increases, suggesting that ministers lack a solid grasp of business realities.
He called on Chancellor Rachel Reeves to adopt policies similar to those in the US, emphasizing the need to pause the Net Zero 2050 agenda in light of rising electricity costs.
The bakery chain plans to expand despite economic challenges, intending to open 35 new locations in 2025 while currently managing over 150 stores.
