Starmer refuses to rule out tax rises in tense PMQs clash - as Labour brands Tories 'economic vandals'

15 January 2025, 13:46 | Updated: 15 January 2025, 16:20

Keir Starmer and Kemi Badenoch clashed at PMQs
Keir Starmer and Kemi Badenoch clashed at PMQs. Picture: Alamy

By Emma Soteriou

Keir Starmer has accused the Tories of being "economic vandals and fantasists" as he refused to rule out tax rises during PMQs.

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Sir Keir said the global economy is experiencing "volatility" which is why he "took the tough and right decisions in the budget to get our finances back in order".

He insisted that Rachel Reeves will be Chancellor for "many, many years to come", adding that the government cannot "tax our way out" of the problems it faces.

"We had to deal with the £22 billion black hole that they left, made difficult cuts, raised taxes to invest in health, public services and housing, vital to stability, vital to growth, and we've got an ironclad commitment to our fiscal rules, and she will welcome, no doubt, the inflation figures from this morning," he said on Wednesday.

Inflation dropped slightly in the month of December but remained above the target set by the Bank of England.

Sir Keir continued: "Contrast that with the party opposite, they weren't brave enough in government to take those difficult decisions. They've opposed all of our measures to stabilise the economy and promote growth.

"They're back to the magic money tree, she wants all the benefits of the budget, but she can't say how she's going to pay for them.

"They haven't changed, they're still economic vandals and fantasists, imagine where we'd be if they were still in charge."

Read more: Keir Starmer to host Iraqi PM to discuss return of illegal migrants and export package worth billions

Read more: Keir Starmer stresses 'full confidence' in Reeves as PM 'refuses' to say if she'll stay chancellor at next election

'Conservatives have not changed', claims PM as he rejects criticism from Badenoch

Tory leader Kemi Badenoch called on the PM to rule out any new tax rises this year, saying: "The Prime Minister refused to repeat his Chancellor's promise that she would not come back for more, will he now rule out any new tax rises this year?"

Sir Keir repeated: "We took the right and difficult decisions at the budget, decisions that they did not have the courage to take, which left us in the mess in the first place."

He went on to say: "When it comes to tax, she knows very well the limits of what I can say from this despatch box, but we have an ironclad commitment to our fiscal rules.

"We can't just tax our way out of the problems that they left us, which is why we put in place tough - they were howling at the spending decisions, they wouldn't take them, and we'll stick to those spending decisions and our focus is absolutely on growth."

Liz Truss sent a cease and desist letter to Keir Starmer
Liz Truss sent a cease and desist letter to Keir Starmer. Picture: Alamy

The PM also took aim at Liz Truss after he received a cease and desist letter over 'defamatory' claims she 'crashed the economy'.

"I got a letter this week from a Tory voter in a Labour seat," he said. "I hope they don't mind me saying who it was, it was Liz Truss.

"It wasn't written in green ink but it might as well have been.

"She was complaining that saying she crashed the economy was damaging her reputation.

"It was crashing the economy that damaged her reputation."

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