PMQs- Starmer vs Badenoch: Tariffs, Northern Ireland and Thames Water.
- Jack Walsh
- Apr 4
- 4 min read
PMQs this week was dominated by issues of the economy, in particular, the government’s response to incoming US tariffs. Keir Starmer began PMQs by outlining his government’s intention to take a “calm and pragmatic” approach to US tariffs and confirming ongoing talks about a wider economic deal with the US. The tariffs are a 25% punitive tariff on all cars imported to the US, which The Guardian reports the move puts 25,000 UK-based jobs at risk. In an attempt to strike a deal, the government is offering a reduction in Digital Services tax as a concession to US firms. This report was referenced by Ed Davey who urged the government not to make concessions to US tech firms who have damaged British democracy, hinting at Trump administration insider Elon Musk's X. Certainly, the move would be a change of direction in a week dominated by talk of greater social media regulation, but government sources told the Guardian that the aim of the move would be to bring the UK in line with Trump’s desired “fairness” approach towards US companies operating abroad.
Davey then suggested that the government should move towards a European alliance on trade to retaliate and protect Britain and Europe from the ongoing US trade war, citing the “coalition of the willing” Starmer organised to protect Ukraine. On this, Starmer accused Davey of making a false choice, again reiterating the government’s preference to negotiate with the US rather than retaliate, although Starmer did make clear no options were off the table. On the theme of the EU and tariffs, the DUP weighed in with fears that any EU retaliation against the US tariffs may ultimately affect imports to Northern Ireland, asking if Starmer will retaliate if this happens. Again, Starmer acknowledged the gravity of the situation and re-affirmed his commitment to taking a clear-headed process rather than retaliating emotionally. Clearly, the government’s preference is to resolve the tariff situation through an agreement with the US, with Business Secretary Jonathan Reynolds claiming the UK was in the “best possible position of any country to reach an agreement”. This may be true, but like with Ukraine, the government run the risk of over-estimating their ability to convince Trump or even their ability to predict him as a stable actor. With Ukraine, Starmer demonstrated excellent leadership in pulling together a European response, having ruled that out already with tariffs it is hard to see where the UK response will go if an agreement is not reached soon.
As for Kemi Badenoch’s questions, her focus on the tariffs went only as far as to ask Starmer to seize on the draft trade deal the Conservatives had agreed with the US, which warranted Starmer’s general response that “talks are ongoing”. Outside of that, Badenoch focused heavily on the National Insurance rise which she labels a “jobs tax”. Here, Starmer’s response was strong, as he cited labour’s £26bn of NHS investment paid for by the rise, as the reason that Badenoch will not outright confirm whether she would repeal the rise. Again, Badenoch’s PMQs strategy is confused, as she continues to attack the NI rise without actually confirming she would repeal it. Badenoch’s continual disappointing performances only highlight the lack of enthusiasm in the Conservative Party. Despite the expectations of poor local election results a month away, there is little appetite to replace her as leader.
Davey’s second question raised an important issue that has been somewhat under the radar in this week's news, and that is the possible KKR takeover of Thames Water. This week, the group were named by Thames Water as their preferred buyer for a £4bn pound stake in the company. An American-based firm, KKR already own a 25 percent share of Northumbrian water. As Davey pointed out, that company dumped over 1m tonnes of sewage into a conservation area last year alone. Given the calamitous state of Thames Water as is, it was an important point to raise. Starmer’s response highlighted the actions the government is already taking with the Water Act 2025 which outlaws bonuses for boses that do not meet environmental standards. However, Starmer did signal a willingness to “go further if necessary”. Thus, the signals from PMQs are very much that the government is willing to intervene further on the issue to prevent the situation the Conservatives left.
On the backbenches, Labour MP Elsie Blundel used her question to welcome this week’s announcement of the largest rail investment in the north for decades. Included in this is £1.7bn investment in buses roads and trams, as well as £415m into railways in the Pennines an issue that is proving important in local election campaigns in northern England. Likewise, a fellow Labour MP closed PMQs by thanking the government for the upcoming opening of the first 750 breakfast clubs promised by the government, affecting 180,000 pupils over a third of which are in deprived areas.
PMQs this week was unexpectedly a relatively easy ride for the government, with Keir Starmer’s core message reaffirming a patient approach to US tariffs and plenty of opportunities to celebrate recently announced achievements.
Sources and further reading:
https://www.bbc.co.uk/news/articles/cvg1p0zv541o#:~:text=Starting%20in%20April%2C%20180%2C000%20pupils,the%20funding%20is%20too%20low.
