Mrs Kemi Badenoch
MP for North West Essex · Conservative · United Kingdom
“It is unbelievable that the Prime Minister would say that. He is clearly unwilling. We need to fund our defence, not spend all our money on welfare. I cannot believe that he would actually say that. He is clearly unwilling, but there are ways to do this—he is not unable.”
“The Prime Minister seems to think that the last Government were a Conservative Government. The last Government were a Labour Government and they failed, which is why Keir Starmer resigned. He keeps talking about their record as if it was fantastic. If it was, then why is Keir Starmer not sitting there?”
“The Prime Minister wants to talk about the past on defence spending, so let me refresh his memory and that of the House. I remember when he was the shadow Home Secretary, when the then Labour leader wanted us to leave NATO, disarm our nuclear deterrent and defund the Army, so I will not be taking any lectures from him.”
“No, it is not. The truth is the Prime Minister does not know where he is going to find the money. He is talking about anything except defence, including council housing. He will not fund the military.”
“We are talking about paying £35 billion to give away British territory, and all of that is happening while the Prime Minister’s Government are cancelling £30 million of vital training for British soldiers. He may be new to the job, so let me tell him what may not be in his briefing paper.”
“After last week’s session, the country was thrown into confusion over whether the Prime Minister was or was not going to fund 3% for defence by 2030. After today he will have another five weeks off PMQs, but there are some serious threats to national security that cannot wait.”
The complete record
Every one of 600 lines we hold for Mrs Kemi Badenoch, in date order, each linked to its source. Free to read, in full, without an account. Page 10 of 12.
“Labour Members can do the fake cheers as much as they like. The whole country knows what a mess of the economy they are making. It is clear that taxes are going up for everyone—except, perhaps, the Deputy Prime Minister. I warned before the summer that we would face weeks of speculation about which taxes would be going up. The former head of the Institute for Fiscal Studies has said: “This sort of…uncertainty is actively damaging to the economy.” And now we find that we have to wait until 26 November for a Budget. Does the Prime Minister really think that the country, or the markets, can wait that long?”
“This is desperate stuff from the Prime Minister. This week, he had another reset. This morning, the Prime Minister scrapped his five missions. After scrapping his three foundations, his six first steps for change and his seven pillars for growth, the truth is that this man has got no clue—zero clue. But this is serious. The Prime Minister’s incompetence is hurting real people. They are losing their jobs and the cost of everything is going up, from energy bills to the weekly shop. This is a crisis made in Downing Street. Is it not the truth that he is too weak to change course, and too arrogant to admit he got things wrong?”
“Yesterday, the head of the Office for Budget Responsibility warned the Government that higher and higher levels of taxes are bad for growth. Does the Prime Minister agree?”
“The Prime Minister is talking about what he has achieved, but we have just heard that inflation is up again—the worst in the G7. We left him with 2% inflation. We have borrowing up, unemployment up and taxes up under his Government. The fact is that the Prime Minister does not get it, so let me tell him. His Budget last year had high taxes. That is why the economy is contracting. The Government have said that they will not put up taxes for people on modest incomes, but they also seem incapable of explaining who is in that category, so can the Prime Minister clear up the confusion and tell us what he thinks a modest income is?”
“I am not talking of the country down; I am talking the Prime Minister down. I asked him what a modest income was. He answered with what a working person is. He does not know what a modest income is, and they cannot even define who working people are. The Chief Secretary to the Treasury said that working people are people who get a payslip, but millions of self-employed people do not get a payslip, so are the self-employed next in line for a Labour tax raise?”
“I do not know where these 3,000 jobs are coming from. Unemployment has gone up every month under his Government. Perhaps the Prime Minister should speak to farmers and small business people and find out what those working people think about his Government. But that is not all, because we know that the Chancellor is launching a review into pension contributions. It is as clear as day why this is. It is because the Government are considering taxing them. Does the Prime Minister agree with me that a tax on pension contributions is a tax on working people?”
“The Budget is in November, which is months away and the markets may not wait. What will the Prime Minister be doing over the summer to get a grip on the cost of borrowing?”
“The Prime Minister says that he is not going to write the Budget, but his Chancellor is on the front of the Daily Mirror talking about what she is going to do on taxes, so why can he not do the same in the Chamber? I asked him about pension contributions. The truth is that he does not want to talk about pension contributions. It is all right for the Prime Minister, because he has his own special law to stop his personal pension from being taxed. But let us be honest: this is really about choices. My party knows that there is an alternative to tax rises: cutting spending—something that the Government are too scared, or perhaps too weak, to do. We offered to work with him to reform welfare and make meaningful savings, but his refusal sent a signal and now the cost of borrowing is rising.”
“] Labour Members can shake their heads as much as they like, but the fact is that this summer they will have to go to their constituents and explain why the Government have been making such a mess over the past 12 months. And is it not the case, given that this is just their first year, that the worse is yet to come?”
“The Prime Minister is not planning to do anything this summer to fix the economy. The shadow of the last Budget is hanging over the entire country. Just yesterday, only the Conservatives supported the two-child benefit cap, because only the Conservatives believe in living within our means—not Labour, not the Liberal Democrats, not Reform. But it is the end of term, so why don’t we go through the Prime Minister’s end-of-term scorecard? The economy is contracting, inflation is the highest in the G7, unemployment is up every month under this Government, spending is out of control, borrowing costs are more expensive than in Greece—and this is just the first year. The Labour party should be ashamed of what it is doing to the country. [ Interruption.”
“I echo the Prime Minister’s sentiments about the horrific terrorist attack of 7 July. I was pleased to be at the commemoration service on Monday. In particular, our thoughts are with the families of those who lost their lives, those who had to go on without their loved ones. I would like to pay tribute to Lord Tebbit, who died yesterday at the age of 94. He was a man of iron integrity and conviction, who, by his efforts, helped to save our country from the chaos of the 1970s. We all owe him so much. In its manifesto last year, Labour promised not to increase income tax, not to increase national insurance and not to increase VAT. Does the Prime Minister still stand by his promises?”
“It is rare— [Interruption.] It is rare that the Prime Minister is able to give a clear answer, but I am glad that he has done so now. He also promised—in fact, he boasted—that he had solved the doctors strike. Only a Prime Minister who was so weak would give doctors a 28% pay rise—only for us now to see them vote to strike again. He folds in every negotiation and claims it is a triumph. [ Interruption. ] Yes, he does. We saw more promises at the Budget: the Chancellor promised that she would lift the freeze on income tax and national insurance thresholds, because, in her words, they “hurt working people”. Is that still Government policy?”
“There was no clear answer there. The whole House will have heard the Prime Minister fail to rule out freezing tax thresholds. He could say yes to the first question—he could promise—but could not this time. What does this mean? He is talking about record investment and more jobs. We know that people are losing their jobs; unemployment has gone up every single month of Labour’s year in office. What does the issue of tax thresholds mean? It means that under Labour, millions of our poorest pensioners face being dragged into income tax for the first time ever. Does the Prime Minister think it is right that struggling pensioners should face a retirement tax?”
“Investors are fleeing the country. The Prime Minister says he will stick to his manifesto promises, but Labour promised not to put a tax on working people and then we got the jobs tax, and all we have seen are jobs disappearing. Before the election, the Prime Minister promised “not a penny more on your council tax”. The Institute for Fiscal Studies says that council tax bills will now rise at their fastest rate in 20 years. Will the Prime Minister admit that under him council tax is set to soar?”
“What is more worrying is that now the Prime Minister is flirting with Neil Kinnock’s demand for a wealth tax. Let us be honest about what that means: it would be a tax on all our constituents’ savings, on their houses and on their pensions. It would be a tax on aspiration. Will the Prime Minister rule this out?”
“The Prime Minister still does not understand, so I am going to make it very simple for him: this is a mess of his own making—he should not be asking how we would clean it up. The fact is this Government raised national insurance through the jobs tax, and that is why they have to put up council tax. The truth is that his catastrophic Budget has created a domino effect that he cannot now control. We on the Conservative Benches know that you cannot tax your way to growth, but now he is flirting— [ Interruption. ] Labour Members are all muttering, but I remember that Budget. They were laughing and cheering; they had no idea of the mess that they were creating. They should go and explain to their constituents why unemployment is going up.”
“Yesterday, the Office for Budget Responsibility said that our economy is being eroded under Labour: doctors strikes; tax bombshells; the wealthy leaving in droves. Is it not the truth that, under him, he is dragging us back to the 1970s?”
“The Prime Minister says that he has stabilised the economy. Has he spoken to any farmers recently? It is time for him to take responsibility for the mess that he is making. He has been in office for a year, and all we see is him congratulating himself on what a fantastic job he has done. [Interruption.] Nobody out there believes it—not even Labour Members. What a weak cheer! He is congratulating himself, but we can compare records. He talks about the fastest growing economy. We left him the fastest growing economy of the G7. We cut the deficit in every year until the pandemic, and we got inflation down to 2%. On his watch, taxes are up, unemployment is up, inflation is up and this weak Prime Minister has been forced into a series of chaotic U-turns.”
“First of all, can I take this opportunity to congratulate the hon. Member for Rochdale (Paul Waugh) on being the toady of the week, helping the Prime Minister? [ Interruption. ]”
“It has been a difficult week for the Prime Minister, so let us start with something simple. Can he tell the House how much his welfare Bill is going to save?”
“I do not think the Prime Minister actually watched what happened in the House yesterday—his Bill was completely gutted. There was a U-turn in the middle of the debate, removing clause 5. Where on earth was he? He cannot answer the question because he knows his Bill does not save any money; it is going to cost millions. This is the first Prime Minister in history to propose a Bill to save money who ended up with a Bill that costs money. If the Bill does not cut welfare spending, can the Prime Minister tell the House how many people it will get into work?”
“I will tell the Prime Minister what we did on welfare. [ Interruption. ] Why are Labour Members laughing? They do not know. My party delivered the biggest reform of welfare in government. We got record numbers of people into work, including millions of disabled people, and we cut the deficit every year until covid. The fact is that we are not scared of doing difficult things. We got people back into work. What the Prime Minister forgets is that since the election—since he became Prime Minister—an additional 1,000 people a day are signing on to incapacity benefit. That is 50% more than under us. Astonishingly, because of the mess that the Government made yesterday—because there are no more savings—sickness benefits alone are set to rise to £100 billion on the Prime Minister’s watch. He cannot reduce that now— [ Interruption. ]”
“I will start again, Mr Speaker. [ Interruption. ] Yes, and louder for those at the back: sickness benefits are set to rise to £100 billion because of the Government’s mess. They cannot now reduce that, because after last night’s humiliating U-turn, we know that the Prime Minister cannot control his MPs. They are cheering now, but I can point out Labour Members who signed the amendment: you did, and you did. Over 100 people signed that reasoned amendment until the Bill was completely gutted. The Prime Minister said that he would take the difficult decisions, but is the reality not that he is too weak to get anything done?”
“The Prime Minister has got some brass neck. Has he read the papers this morning? That Bill will achieve nothing. It is a pointless waste of time, and it is absolute proof that he does not have a plan. Let me tell the House what is going to happen: in November, the Chancellor is going to put up our taxes to pay for the Prime Minister’s incompetence. We on the Opposition Benches know that you cannot tax your way to growth— [ Interruption. ] These are the same Members who cheered when they talked about the national insurance rise—the jobs tax; why are they complaining now? People out there are frightened. Can the Prime Minister reassure them by ruling out tax rises in the autumn Budget?”
“The Prime Minister talks about jobs. Unemployment has risen every month since Labour took office. Has he spoken to Nissan, by the way, and looked at what is happening there? This man has forgotten that his welfare Bill was there to plug a black hole created by the Chancellor. Instead, they are creating new ones. [ Interruption. ] The Chancellor is pointing at me, but she looks absolutely miserable. [ Interruption. ] They can point as much as they like, but the fact is that Labour MPs are going on the record saying that the Chancellor is toast. The reality is that she is a human shield for the Prime Minister’s incompetence. In January, he said that she would be in post until the next election. Will she really?”
“What is really shocking is the fact that every other party in the House voted for even more welfare spending yesterday—yes, those MPs behind the Prime Minister, and the Liberal Democrats, and Reform. The Conservative party believes that this country needs to live within its means. [Hon. Members: “Hear, hear.”] We know what we believe, but this is a Prime Minister who has U-turned on everything he has done in office, including his own speeches, because he does not know what he believes. With left-wing Labour MPs now running the Government, is it not working people who will now pay the price?”
“How awful for the Chancellor that the Prime Minister could not confirm that she would stay in place. He talks about his year in office. This week marks the first anniversary of Labour coming into office. [ Interruption. ] Yeah, yeah, let’s have it. The Whips cannot get their MPs in the Lobby, but they can get them to cheer at the right time. The fact is that the Prime Minister’s own MPs are saying that this Government are “incoherent and shambolic”—it was the hon. Member for Liverpool Wavertree (Paula Barker) who said that. I could go on and on, but the fact is that it has been mistake after mistake after mistake. There is no plan to get people into work, there is no plan to cut the welfare budget, and there is no strategy; there is just a series of humiliating U-turns, as with winter fuel and as with grooming gangs.”
“We face a new reality. Under this Government, every working day 3,000 people move on to incapacity benefits—3,000 every single day. That is a 50% increase from when we left office. The Government have been in power for only one year; imagine what it will be like after the next four years. A 50% increase and 3,000 people going on to incapacity benefits every day is not normal, sustainable or acceptable. Spending is spiralling under Labour.”
“The last Conservative Government reformed welfare to introduce universal credit, and our reforms helped to ensure that unemployment more than halved and was at a near record low. What have we seen since Labour came in? Unemployment has risen every single month since Labour came into office. During our time, 800 jobs were created for every day we were in office. At the same time, until the covid pandemic, we kept spending under control, cutting the deficit every year. But covid changed everything— [ Interruption. ] It did, and now we face a new— [ Interruption. ] Mr Speaker, it is delightful to hear Labour Members laughing. I remember when we sat on the Government Benches, and they were demanding that we spent more and more and more money. Thank God it was Conservatives who were there under covid—Labour would have bankrupted the country!”
“We are staring down the barrel of a crisis that no serious Government can ignore. The welfare system no longer works as it should, and what was once a safety net has become a trap. A system designed to protect the most vulnerable is now encouraging dependency, and dragging this country into deeper debt. The welfare system is a crucial safety net for the poorest and most vulnerable in our society, so I was quite surprised at the tone that the Secretary of State decided to take today. She thinks that she can stand there and get away with the fiction that all this was caused by the previous Government, so let me refresh the memories of Labour Members, especially those who were not here at the time. In 2010, we inherited 8% unemployment, and we brought it right down.”
“The Father of the House is absolutely right. This is something we should all be able to agree on, but the Government are too busy trying to shift the blame instead of solving the problem. Let us talk about solving the problem. We have 28 million working people propping up 28 million people who are not working—the rider is getting heavier than the horse. Health and disability benefits were £40 billion before covid. By 2030, on this Government’s spending plans, they will hit £100 billion.”
“That should make everyone in this House stop and think, because this Bill does nothing to fix that problem. That is why we cannot support it. The Conservative party is the only party in this House urging restraint. Unless this House acts, the Government will bankrupt our children. They will bury the next generation under a mountain of borrowing and debt, and they will do it not because we have no choice, but because they lack the courage to choose. A fundamental and serious programme to reform our welfare system is required, and this Bill is not it—it is a fudge. I feel sorry for the Secretary of State: she looks as if she is being tortured.”
“I will remind the right hon. Lady of our inheritance. We took difficult— [ Interruption. ] I will. I have said it before, and I will say it again: we had 8% unemployment, and we got it down to 4%. Every single time Labour leaves office, it leaves more people unemployed. The welfare system needs continual reform. We took difficult decisions and got universal credit through with so much opposition from Labour. We improved the system, but that does not mean it cannot be improved further. We have offered to help, but the Government do not want any help: they just want to make things worse. By 2030, on this Government’s spending plans, we will hit £100 billion on health and disability benefits alone. That is more than we spend on defence.”
“I will in a moment. We all know why this is happening: this is a rushed attempt to plug the Chancellor’s fiscal hole. It is driven not by principle, but by panic. The changes were forced through not because they get more people into work, but because someone in 11 Downing Street made a mistake. It is clear that these changes were not designed to introduce fundamental reforms. How did we get here? Last year, at the Chancellor’s first Budget, she left herself no headroom. That same Budget killed growth, meaning that unemployment has increased every month since Labour took office. This is a good time for me to remind the House again that every time Labour leaves office, it does so with unemployment higher than when it came in, and it is doing that again.”
“The country should not have to pay for the mess she has made, and neither should disabled people. Even with the changes in this Bill, welfare spending will still be billions higher at the end of the Parliament. Slowing down how much you increase spending is not a cut.”
“My right hon. Friend is quite right: this is a fiasco, and it is the Chancellor’s fault. She marches Labour Members up and down the hill all the time, and they are the ones who have to face their constituents. We are trying to help to get a welfare system under control and get people into work. My right hon. Friend the Member for Beverley and Holderness (Graham Stuart) is right to raise the Chancellor. When the economic outlook worsened this spring, she chose to force through these changes to welfare, which are designed not to reform or improve the system, but to address a hole in her numbers. Those changes were rushed for Rachel, as we say. I watched when she made that Budget, and it was quite clear that she had no idea of the consequences of her decision.”
“I am not surprised that the hon. Gentleman is baffled, because he is clearly not listening to what I am saying. We had three conditions. We have been very, very clear that we want to see the welfare budget come down. I will make some progress. Even with the changes in this Bill, welfare spending will still be higher by billions at the end of this Parliament. Slowing down an increase is not a cut: we need to get this under control.”
“How’s that going? What happened instead was that the number of MPs opposed to the Bill grew ever larger, until the inevitable U-turn finally came, announced by a press release dispatched after midnight and a panicked letter setting out that the reforms had been gutted. The Bill is now more incoherent than it was at the beginning.”
“I will make some progress. Despite the obvious flaws in the Bill, we offered to support benefit changes in the national interest. The hon. Member for Gateshead Central and Whickham (Mark Ferguson) asked a question, and I will answer it very clearly for those who have not been paying attention. We agreed to support the Government if they could make three simple commitments; they were not unachievable or unreasonable commitments. First, they had to cut the overall welfare bill, because we are spending far too much already. Secondly, they had to get more people into work. Thirdly, they had to stand by the Chancellor’s own commitment that, with taxes at a record level because of her choices, she would not come back for more tax rises. What did we get from the Government? A sneery response indicating that they could manage on their own.”
“This time, when asked to line up behind a Bill that takes money from older, disabled people with physical disabilities—a Bill that, according to the Government’s own modelling, gets no one into work—funnily enough, lots of Labour MPs did not fancy another go. Perhaps they will think twice next time the Chancellor comes to them with a bad idea.”
“The Government do not care how they have made their Back Benchers look, and it is not for the first time. Week after week, the Chancellor was sent here to say with a straight face that she was right to cut the winter fuel payment, that there would be no turning back and that the country’s finances would simply collapse if she did not take pensioners’ fuel money and give it to the trade unions, and her Back Benchers sucked that one up. They muttered and they grumbled, but each of them went back and told their constituents that the winter fuel payments were being confiscated to fix the foundations. Only once pensioners had sat in the cold all winter, the Chancellor had tanked the economy and Labour MPs had had the door slammed in their face up and down the country did they finally accept that it was a mistake.”
“I definitely will not agree with the hon. Gentleman. He is talking about relative poverty figures. The fact is that the best way to get people out of poverty is to get them into work—something we did again and again and again. The Bill is more incoherent now than it was at the beginning. It does not do the job at all. Reforms that were not enough in the first place will now cut only £2 billion from a ballooning budget, instead of £5 billion. They will create a new welfare trap and a two-tier welfare system. Right up until the last moment, the Government kept pushing and pushing, ruling out changes and sending their poor, weary Ministers and ambitious Back-Bench bootlickers out on to the airwaves. At the last moment, as we have seen before, the Government abandon them after all of that—they have been hung out to dry.”
“The fact that the Government have refused to commit to not raising taxes means it is probably inevitable that they will. However, it is quite clear that Labour MPs will feel emboldened to push for more unaffordable changes to our welfare system, including the two-child benefit cap. Let us be clear: part of the reason why these plans have been so rushed and badly thought through is the mess the Chancellor has made. This Bill is an attempt to find the quickest and crudest savings possible—to plug the hole in the public finances that she has created—but the Chancellor is not the only one to blame. It beggars belief that the Labour party came into office after 14 years in opposition with no serious plan for reforming welfare. What was Labour doing all that time? The welfare bill is already totally unsustainable, and it is only getting worse.”
“We would cut unemployment. As I was saying, health and disability benefits are forecast to rise to £100 billion, meaning that one in every four pounds raised in income tax will pay for those benefits. That is not sustainable. Until the pandemic, we in the Conservative party had spent years bringing down the benefits bill and getting people back into work, including millions of disabled people. Talent, energy and ingenuity are not confined to those in perfect health. If we want to afford public services, improve people’s lives and compete globally, we cannot consign so many people to a life out of work—we have to get them into work. I believe that the whole House agrees that the system needs change. We may disagree on what exactly that change looks like, but what we have in front of us today is just a big mess.”
“Rather than the fundamental reforms we so badly need, we have been presented with a botched package of changes that have been watered down and carved apart in the face of Back-Bench pressure. There is no way we can back this, so instead of allowing her Back Benchers to dictate her policy, the Secretary of State should go back to the drawing board. She should cut the overall welfare bill, get people into work, and eliminate the need for new tax rises. That is a programme that we would support in the national interest.”
“Findings published by the TaxPayers’ Alliance today show that people with conditions including acne and food intolerance are getting benefits and entitlements such as Motability. The impact assessments for the Bill—not my impact assessments, but the Government’s—show that it will get no one into work, so the Government should think again. We will support them to do so. We support replacing remote or online assessments for claimants with face-to-face assessments—that simple change alone could dramatically reduce the number of new claimants. Before the last election, we outlined reforms that the new Government rejected out of hand, so will the Secretary of State return to them? The changes we are discussing today are rushed and confused.”
“For instance, we need to filter out people who are gaming the system, we need to redesign the system so that genuinely disabled people do not find it so Kafkaesque, and we need a fundamental rethink of who we can afford to support and why. One in four people in this country now self-report as disabled—that is an extraordinary state of affairs. We clearly cannot afford to support all of them; rather, we should focus that support on those with the greatest need. Many people with disabilities live full and independent lives, contributing to society. Research published by the Centre for Social Justice last week shows that we could save up to £9 billion by restricting benefits for lower-level mental health challenges such as anxiety. Labour Members ask what we would change—that is one of the things we would change.”
“My right hon. Friend makes an excellent point. I have nothing further to add—he said it as well as it could possibly be said. The whole House agrees that the system needs to change in one way or another, but what we have in front of us today is a big mess; it is neither fish nor fowl. Because of the Government’s hasty concessions, we now have a two-tier benefits system under which people who are already on benefits will be incentivised to keep them. There are other issues. Why, for instance, should someone diagnosed with Parkinson’s after November 2026 receive a lower payment than someone diagnosed a month prior? We need to fix a whole load of problems.”
“I thank the Prime Minister for advance sight of his statement. He has evaded Prime Minister’s questions for two weeks, only to come back here to tell us what we already heard on the news. This is a weak statement from a weak Prime Minister, which can be characterised in two words: noises off. In his statement, the Prime Minister said: “We urge Iran and Israel to honour the ceasefire”. He said: “We are using every diplomatic lever to support this effort”. What diplomatic levers? Are they the same levers he is using with his Back-Bench rebels? Is he just asking them to please play nice? Let us be honest: nobody cares what this Prime Minister thinks—why should they, when he does not even know what he thinks? Clearly no one cares what he thinks, because he was not involved.”
“Now, with 126 of his own MPs openly undermining his authority, his Government are incapable of making even the smallest changes to bring down the cost of our ever-expanding welfare bill; there is no way that they are going to be able to pay for our defence. This is a Government who are paralysed by their own legal advice, paralysed by their rebellious Back Benchers, and paralysed by the fear of being found out for having no real vision for this country.”