Kemi Badenoch unleashed a furious attack on Rachel Reeves’ record as chancellor as she clashed with Sir Keir Starmer in the Commons over the Government’s employment legislation.
The leader of the opposition pointed to the UK showing the fastest economic growth when the Conservatives left office in July last year compared to sluggish GDP figures under Labour before criticising the Government’s employment rights bill.
Ms Badenoch accused Sir Keir of “arrogance” for thinking government generates economic growth, adding: “He’s wrong. It’s business that creates growth.
“Our economy is built by entrepreneurs, risk takers and the hard graft of working people. They know that you can’t tax your way to growth. They know you can’t borrow your way to growth. You can’t legislate your way to growth.
“Other countries are serious about freeing business from red tape. President Trump is doing it in America. Argentina is taking a chainsaw to regulations.”
She said the Government’s employment rights bill will leave Britain “at the bottom of the pack”, adding it was “no wonder” wealth creators are fleeing the UK.
Kemi Badenoch launched a furious attack on Rachel Reeves’ record (Image: UK Parliament)
Sir Keir accused Ms Badenoch of talking “absolutely nonsense” in her criticisms of the bill and Labour’s growth plans, warning she could be the next “lettuce”, in a comparison with her predecessor as Conservative leader, Liz Truss.
Ms Badenoch had said reforms in the bill would mean employees could take their bosses to employment tribunals on day one of a new job. She said: “Let’s talk about this employment bill. Part one of the bill means a new employee can start a new job in the morning and take their employer to a tribunal that afternoon.
“It is no wonder that this bill has been called an adventure playground for lawyers. This bill is terrible for business, but it is great employment for lawyers.
“I know the Prime Minister loves the legal profession, but he needs to stop being a lawyer and start being a leader. This is another measure in the bill that fails his growth test. Will he show some leadership and drop it?”
Sir Keir Starmer says Kemi Badenoch is talking ‘absolutely nonsense’ (Image: UK Parliament)
The Prime Minister said: “I understand she likes straight talking – she is talking absolutely nonsense. She knows anybody that understands anything about the bill or any employment law will know you can’t start in the morning and go to the tribunal in the afternoon.
“Now, we know she is not a lawyer, she is clearly not a leader, if she keeps on like this, she is going to be the next lettuce.”
The bill includes a raft of measures the Government insists will boost economic growth, generate jobs and raise living standards.
It would mean flexible working and parental leave are available from day one of a job. Other proposals include cutting the notice period for industrial action to just seven days and removing the current requirement for at least 50% of those entitled to vote in a ballot for industrial action to vote. This would be replaced with a requirement for a simple majority of those who vote.
Ms Badenoch, in a testy exchange with Sir Keir, said that to grow the economy, more people must get off sickness and welfare benefits and into work.
She warned: “Clauses eight and nine of the unemployment bill take us in the opposite direction by increasing entitlements. Government itself, his government itself, estimates these changes will increase business costs from £600million to £1billion in sick pay.
“That will mean higher prices, fewer jobs, less growth. Will he drop these measures from the bill?”
Sir Keir said: “No, I think they are good for workers and good for growth. This is the same argument they made against the minimum wage and every protection for workers.
“She says they are their ideas. She says she’s in support of the third runway at Heathrow, her shadow transport secretary says that it would be calamitous, her shadow business secretary is writing letters opposing airport expansion in his own backyard.
“Shadow chief secretary says the Oxford-Cambridge idea is flawed and he is against it. We are the coalition of builders; they are the coalition of blockers.”
Ms Badenoch replied Ms Reeves had blocked an airport in her Leeds West and Pudsey constituency, adding: “They are hypocrites.”
The Chancellor outlined a number of steps the Government is taking to boost economic growth in a speech before PMQs. She confirmed government support for a third runway at Heathrow Airport and pledged to turn Oxford and Cambridge into “Europe’s Silicon Valley”.
