Rayner and Dowden clash over prospect of Budget tax rises at ‘battle of gingers’

Angela Rayner sidestepped questions over the prospect of Budget tax rises hitting working people, as she took part in a “battle of the gingers” at Prime Minister’s Questions.

The Deputy Prime Minister faced her Conservative counterpart Sir Oliver Dowden, with the two taking centre stage at PMQs because of Sir Keir Starmer’s visit to the Commonwealth Heads of Government Meeting (Chogm) in Samoa.

In recognition of their final despatch box exchanges, Ms Rayner joked: “I will miss our exchanges, the battle of the gingers, the late nights voting.”

Shadow deputy prime minister Sir Oliver earlier asked Ms Rayner to define “working people” after Labour’s election manifesto said the party would not increase taxes on them and included a commitment not to increase national insurance, income tax or VAT.

Prime Minister Sir Keir has previously said the Government is “going to keep our manifesto pledges”, amid speculation that Chancellor Rachel Reeves will increase employers’ national insurance contributions.

In their opening exchanges, Ms Rayner mocked Sir Oliver over the Conservatives’ decision to go for a July election – which resulted in Labour securing a huge Commons majority.

Ms Rayner went on to say: “The definition of working people are people that the Tory Party have failed for the last 14 years.”

Sir Oliver countered: “The Deputy Prime Minister stood on a manifesto promising not to raise taxes on working people. It now appears she can’t even define who working people are, so I’ll give her another go.

“There are five million small business owners in this country. Are they working people?”

Ms Rayner replied: “I don’t know how the shadow deputy prime minister can stand there with a straight face when it was the small businesses, the working people of this country, that paid the price for them crashing the economy, sending interest rates soaring.

“I think he needs to learn his own lessons in opposition.”

Sir Oliver said the House would have heard Ms Rayner “disregard five million hard-working small business owners”, adding: “These are the publicans, the shopkeepers, the family running a local cafe, none of those count as working people to her.

“Now, Labour gave a clear commitment not to raise national insurance.

“The independent IFS (Institute for Fiscal Studies) has given their view on this, they say that raising employer national insurance is a tax on working people, even the Chancellor said that raising employer national insurance was a jobs tax that will make each new recruit more expensive and increase the cost to business.

“So does she agree with the IFS and her own Chancellor?

Ms Rayner replied: “I remember the party opposite, what they said to business, what was it, ‘F’ to business? Whereas this party held an international investment summit last week.”

She added: “We’re pro-business, pro-worker, and getting on with fixing the mess that they left behind.”

Sir Oliver said it appeared Ms Rayner did not agree with the IFS, adding: “And I suppose it shouldn’t come as a surprise that she doesn’t agree with her Chancellor.

“But does she agree with this, and I quote ‘working people will pay when employers pass on the hike in national insurance’ – these are her words – so does she at least agree with herself?”

Ms Rayner replied: “What I’m incredibly proud of is this week, this Government brought in a new employment Bill, which will raise the living standards of 10 million workers.

“Would the shadow deputy prime minister like to apologise for the … 70-year hike in taxes that he put on working people, the crashes (to) the economy and the disaster that he left behind?”

Sir Oliver said of the Employment Rights Bill: “It’s a £5 billion hit to the British economy and that’s her own assessment.

“I think that following these answers there will be millions of working people now even more worried about the tax rises coming their way in next week’s Budget.”

Sir Oliver went on to raise the work of the “hard-working” King and the importance of the Commonwealth.

He asked: “Will she confirm that this Government recognises the unique role played by the Commonwealth and will she commit to deepening this relationship so that under His Majesty’s leadership we build upon possibly the greatest legacy of the late Queen?”

Ms Rayner, in her reply, said: “I will agree with (Sir Oliver). The King does a tremendous job and so did the late Queen and the Commonwealth is very important – and that’s why the King and Prime Minister at the moment are working together.”

Sir Oliver went on to joke: “Our Commonwealth family is brought together by historical and cultural ties, indeed much like the pair of us.”