Badenoch and Starmer clash over Budget at PMQs

Badenoch and Starmer clash at post-Budget PMQs
Adam Goldsmith
Live reporter
As expected, we heard a Budget-heavy session of Prime Minister's Questions today, a week on from Chancellor Rachel Reeves's policy announcements.
Leader of the opposition Kemi Badenoch reiterated calls for Reeves to resign, accusing her of "twisting the facts" by giving an overly pessimistic impression of public finances in order to raise taxes.
Jumping to his chancellor's defence, Keir Starmer maintained he is proud of the Budget and batted away Badenoch's response that she has written to the Financial Conduct Authority (FCA) about Reeves's conduct.
Welfare spending measures set out at the Budget - particularly the decision to lift the two-child benefit child cap - were also under close scrutiny as Starmer took questions from MPs.
Starmer told the Tories they should be "utterly ashamed" of the measure that he said dragged "thousands" of children into poverty, but Badenoch suggested the PM is only lifting the measure to appease backbench MPs - after he previously removed the whip from several when they voted in favour of it.
With PMQs wrapped up, the chamber heard an "urgent" question from shadow chancellor Mel Stride, who asked about the circumstances of Office for Budget Responsibility (OBR) chair Richard Hughes's resignation.
Treasury minister James Murray stressed that Hughes took the decision to quit himself, after last week's error saw the OBR publish key details of Reeves's Budget early.
We're ending our live coverage now. Thanks for reading.
Are three quarters of children in poverty living in working families?
By Gerry Georgieva
During Prime Minister’s Questions today, Keir Starmer said that "three quarters of children in poverty are in working families".
This is in the right ballpark if you look at the latest figures for the number of children classed as being in “relative poverty” - after housing costs are accounted for.
Being in relative poverty means that these children were living in households whose income was less than 60% of the median for the UK that year.
The most recent figures from the Department for Work and Pensions show 72% of the children in relative poverty in the 2023-24 financial year were in families with at least one adult in work.
Of those children, 15% were in single-parent households with a working adult and 57% were in two-parent households with at least one working adult.
Labour insists is hasn't broken promises, while Tories accuse it of dishonesty
Vicki Young
Politics Live presenter
The fallout from last week’s Budget continued on Politics Live after PMQs.
The Conservative frontbencher Andrew Griffith said the Labour Party had been dishonest about its plans - and always wanted to put up taxes. “If something moves, Labour wants to tax it!” he said.
Culture Secretary Lisa Nandy told me she hoped voters don’t feel misled by the Labour election manifesto - which promised no increase to the rates of income tax and National Insurance. She insisted the government hasn’t broken any promises.
It’s a big political battle line and we can expect to hear both parties fight over this for weeks to come.
Urgent question on resignation of OBR boss
Shadow chancellor Mel Stride uses an "urgent question" to ask if the chancellor will make a statement on the resignation of the chairman of the Office for Budget Responsibility (OBR), Richard Hughes, earlier this week.
He quotes the report the OBR published after it released its economic forecast before the chancellor announced the Budget. He says the report described the "systemic issues" which the OBR said led the worst failure in its 15-year history.
Chief Secretary to the Treasury James Murray responds by saying the chancellor has written to Hughes to thank him for his years of public service, and the decision for him to resign was a matter for him.
Murray says the government will work closely with the OBR to ensure robust security arrangements are in place before spring Budget and further forecasts.
He adds that the government puts the "upmost weight on budget security, including prevention of leaks of information" - and an inquiry into the leak it under way.
MPs can apply each day to the Speaker to ask "urgent questions" of government ministers in the Commons. The Speaker grants the request if they are "satisfied that the question is urgent and of public importance"
Putin is the aggressor, says Starmer on Ukraine war
Conservative MP Bernard Jenkin asks the prime minister to respond to reports that Putin has "turned down terms for peace in Ukraine", which the Kremlin later denied.
He also references Putin's comments in which he said he "wasn't planning to go to war with Europe...but if Europe suddenly wants to go to war and starts one, we are ready right now".
Jenkin asks: "How ready are we?"
Starmer doesn't answer the question about the UK or Nato's readiness for war.
He instead says: "We all know that Putin is the aggressor here," adding that the Russian president is "dragging his feet".
He says "we have to put pressure" on Russia by continuing to support Ukraine with "capability and resource", while also acting with allies to ensure sanctions damage the Russian economy.
MP says he appeared in AI deepfake defecting to Reform
There's a unique question from Conservative MP George Freeman, who tells Parliament that he's been the subject of a deepfake AI video that showed him announcing his defection to the Reform UK party.
He stresses that this is not the case, and asks Starmer what steps he's taking to tackle the rise of AI dangers and protect democratic integrity.
The PM replies by observing that three former Conservative MPs have this week defected to Reform, saying: "They talk about leaks, that's where their leaks are going."
Starmer continues by mentioning that Reform leader Nigel Farage has said he would be open to merging with the Conservatives - Farage shakes his head from his seat in the chamber.
Will the government tackle 'rip-off' service charges? Lib Dems ask
Liberal Democrat MP Layla Moran references complaints from her constituents about service charges from their housing associations, saying it is a "wild west out there".
Will the government consider Liberal Democrat plans for a new regulator and a cap on "outrageous rip-off service charges?" she asks.
Starmer says the government is implementing the Leasehold and Freehold Reform Act, which will result in "greater rights, powers and protections" for homeowners. He says the act will "bring the injustice of leasehold to an end", protecting up to 1.75m households.
He also references the introduction of a "standardised service charge document", making it easier for leaseholders to "challenge unreasonable bills".
Why did Starmer U-turn on scrapping some jury trials?
There's a question from Conservative MP Paul Holmes on the government's announcement that jury trials are to be scrapped in some cases.
For context, Justice Secretary David Lammy announced that jury trials in England and Wales for crimes that carry a likely sentence of less than three years will be scrapped.
Starmer is asked why he is U-turning on this, after previously saying there should be a right to trial by jury in all criminal cases.
Starmer replies that the Tories left a "broken criminal justice system" with long waits for trials to take place.
He says he has been given examples this week of 14-year-olds girls having to give evidence four years after an allegation.
"That is not justice for them, and I'm determined that we will deal with it," he says.
Starmer follows up that 90% of criminal cases go to the Magistrates' Court (where they are heard without a jury) and says just 3% result in a jury trial.
PM pressed on Kent water supply crisis
We now turn to leader of the Liberal Democrats, Ed Davey, who starts by mentioning the situation in Royal Tunbridge Wells where thousands of people have been without water for five days.
Davey describes it as a "public health emergency" with businesses, schools and GP surgeries forced to close.
South East Water said the situation would be sorted on Monday but it still isn't fixed. Davey asks the PM whether he thinks it's time "for him to get a grip on this crisis" and convene Cobra - an emergency response committee.
Starmer says it is shocking, and the government is bearing down on that, as "it is such a serious issue".
Davey moves on to point out how the PM's chief economic adviser has recommended a customs union with the EU as one of the effective ways of generating growth. He asks whether the PM will listen to him and change course.
Starmer says the government is getting closer relations with the EU on a number of fronts. He says there are "clear red lines in relation to the single market and the customs union" and his party will move closer "within those constraints".
Labour is turning the page on Tories' 'failure' - Starmer
Badenoch now accuses the government of "making the country poorer" and "destroying jobs", saying this is "not how you keep children out of poverty". She refers to "broken promises, broken leadership, and a broken Budget for benefit street".
She asks: "Isn't the truth behind it all a PM who only cares about his own job?"
Starmer responds by accusing Badenoch of wanting to put "half a million children back into poverty".
He says the government is "turning the page on their failure", cutting waiting lists, bringing stability to the economy and facilitating interest rate cuts.
He adds that Labour is "building a brighter future".