Priti Patel says that people are "in the dark" over the "botched deal", she expresses concern over hostile countries setting up a foothold in the key strategic islands and the status of the US military based located on Diego Garcia.

The former Tory Minister asks: "How many billions of hard-pressed British taxpayers money will we be expected to fork out to lease back a territory we already own?"

Minister Stephen Doughty responds by stressing that when the details of the deal are finalised, including the cost, he will present it to Parliament.

He adds that securing the UK will only secure an agreement on the Chagos Islands that is in the interests of national security.

Doughty explains that this requires the UK and US to retain control over Diego Garcia - where a military base is situated - as well as the management of buffer zones in surrounding areas to ensure no activity nearby can infringe security.

Most of the huge crowd of MPs has filed out of the Commons, leaving just a few behind as Foreign Office Minister Stephen Doughty answers an urgent question from Conservative MP Priti Patel on the Chagos Islands.

Under a proposed agreement that the government says is being finalised, Mauritius would gain sovereignty of the islands from the UK, but allow the US and UK to continue operating a military base on one of the islands for an initial period of 99 years, at a cost to the British taxpayer.

We'll bring you key lines from this discussion as it happens and you can follow along by pressing watch live at the top of this page.

Image source, PA Media

• Kemi Badenoch started by questioning Starmer on Labour's "jobs tax" - the name Conservatives give to the rise in employer national insurance contributions - and what advice the PM has for businesses
• In response, Starmer promoted yesterday's increase in the national living wage, calling it a pay rise for millions of workers
• Badenoch then argued that the government made a mess of the budget, claiming families would be £3,500 poorer. Starmer called this a "fantasy figure"
• Turning to the increase in bills with the start of the new financial year, Badenoch asked Starmer if he regretted promising to freeze council tax, to which the prime minister responded by saying it's no surprise council tax is £300 cheaper under Labour
• Badenoch also brought up Birmingham, where an emergency has been declared over bins not being collected due to strike action. Starmer said the situation was "unacceptable" and said he was in the process of reaching agreements with unions
• Finally, on the topic of tariffs from Washington, the Conservative leader asked the PM what he's planning to do to protect the UK's car industry from possible taxes. Starmer repeated that the government is taking a calm, pragmatic approach

Helen Catt
Political correspondent

That was a PMQs that covered familiar ground on who is responsible for the cost of living and lacked any moment that really put the prime minister on the spot.

The range of questions from Kemi Badenoch, Ed Davey and Gavin Robinson from the DUP about upcoming US tariffs showed the level of concern.

The prime minister tried to reassure MPs that he was preparing for “all eventualities” and set out the government’s reason for not “jumping into a trade war” (he says it’s not “sensible”).

For all that though, Downing Street doesn’t know for sure what’s coming either. Like the rest of the world, MPs - and the PM - will have to wait for the White House announcement in a few hours.

Did Starmer pledge to freeze council tax?published at 12:36 British Summer Time 2 April

12:36 BST 2 April

By Anthony Reuben

Kemi Badenoch criticised the prime minister, saying: “Before the election, he pledged to freeze council tax, instead it’s going up everywhere”.

Keir Starmer did say in March 2023 that he would have frozen council tax the following year if he had been in government.

The promise was part of Labour’s campaign for the 2023 local elections in England.

But Rachel Reeves was asked on the same day whether that meant council tax would be frozen if Labour won the general election and she said: "We'll have to see what the public finances look like going into a general election."

The pledge to freeze council tax was not in the Labour manifesto for last year’s general election and we have not been able to find any pledges from the prime minister to do so during that campaign.

Brian Wheeler
Reporting from the House of Commons

Quite a few planted questions from the Labour benches this week, inviting the prime minister to talk up government policies.

There must be local elections in the offing...

• Is there an election on 1 May where you live? Look it up using your postcode here

Brian Wheeler
Reporting from the House of Commons

A curious silence descended on the chamber whenever Keir Starmer talked about tariffs.

He basically repeated the same line – taking a "calm, pragmatic approach", while keeping all options open.

It’s a sign of how seriously all sides are taking the issue.

Ed Davey then rises again for his next question, turning to a domestic issue.

He describes how a private equity firm bought shares in Northumbrian Water a few years ago, and says that people across the north-east have since seen bills soar, while raw sewage is being dumped in Durham.

Davey suggests that the same equity firm now plans to invest in Thames Water, and asks for assurances that the London-based firm will not be allowed to surge bills in a similar fashion.

Starmer responds that Davey is right to point out the Conservatives' "appalling record" on water, and says Labour is passing a Water Act on the matter, with plans to go further.

Liberal Democrat leader Sir Ed Davey asks if Starmer will provide leadership with an economic "coalition of the willing" against Trump tariffs - just as he is trying to get such a coalition on Ukraine.

This is so we can avoid a global recession, Davey says.

Starmer replies that it is a "false choice" between our relationship with the US and our relations with Europe.

Helen Catt
Political correspondent

Not sure if it’s spring in the air but the backbenches were pretty lively during that exchange

The content was familiar though: arguing over who is responsible for rising bills and costs.

Kemi Badenoch says it’s Labour’s choices, Keir Starmer points out high inflation under the Tories and raises the spectre of Liz Truss.

There was a local elections flavour too, a few weeks before some areas in England go to the polls.

Kemi Badenoch raised bin strikes in Birmingham (a Labour council) and accused Keir Starmer of breaking a promise on council tax.

He didn’t deny that but pointed back to Kemi Badenoch’s previous ministerial responsibility for…council tax.

For her final question, Badenoch turns to the car industry - telling the Commons that Labour's record is a sector "in crisis". She asks the prime minister to explain what the government is doing to protect them from possible US tariffs.

Starmer tells her the government are taking a calm pragmatic approach and "keeping our feet on the ground".

He adds that Badenoch was the trade secretary who failed to get a trade deal with the US under the last Conservative government.

Badenoch says the previous government left the Labour party the fastest growing economy in the G7.

She argues that the Bank of England says the government's policies have pushed up the cost of living for families and asks if the prime minister agrees with the bank or does he accept that his policies mean higher bills.

Starmer responds by saying Badenoch must be the only person left who thinks the Conservatives did well on the economy, before listing failures in living standards, inflation and the NHS under the last government.

Image source, PA Media

Badenoch presses Starmer on Birmingham again - which she says the PM doesn't want to talk about.

She then pivots to challenge the chancellor. Rachel Reeves, she says, has left herself no room for manoeuvre in her Spring Statement.

Badenoch asks whether Reeves will break her financial rules or put up taxes as a result.

Starmer responds that the situation in Birmingham is unacceptable, but reiterates that under the last government too many days were lost to strike action - which is why he is reaching agreements with unions.

Badenoch follows up by saying she does not agree with making people poorer or pensioners in poverty, accusing Starmer of breaking his promises.

She says people are using the term “awful April”, with council tax going up everywhere including Birmingham, where an emergency has been declared over bins not being collected due to strikes.

She asks, does the prime minister regret promising to freeze council tax?

The prime minister replies saying the last government put up council tax for 12 years in a row, pointing out Badenoch was the minister for council tax.

Starmer adds that the Tory position is asking the government to lift the cap on council tax. He adds that there’s no surprise that council tax is £300 cheaper under Labour.

• In England, there is a 4.99% cap on annual council tax rises - although councils can apply to go above that in certain circumstances. In 2023, when in opposition, Labour proposed a one-year council tax freeze

Badenoch says the government made a mess with the budget.

The jobs tax will be passed on to workers, she says and claims that families will be £3,500 poorer.

Why should anyone trust him again, she asks.

Starmer replies that this is a "fantasy figure", which is "as much use as Liz Truss's economic planning."

He says Badenoch could not say if she would reverse Labour decisions.

She doesn't want the extra investment in the NHS which his government is making.

She wants the extra £26bn in the NHS that was paid for by National Insurance rises - so, she actually agrees with it, he claims.

Brian Wheeler
Reporting from the House of Commons

Liberal Democrat leader Ed Davey is furiously pointing at himself as Kemi Badenoch says the pensions triple lock was a Conservative policy.

It was in fact devised by the Liberal Democrats when they were in coalition with the Conservatives.

Starmer responds by saying the government is "clearing up the mess" the Conservatives left and rolling up their sleeves.

He says yesterday he was pleased to announce a national living wage increase, calling it a pay rise for millions of workers.

He says wages are going up faster than prices.

Opposition leader Kemi Badenoch's first question to Prime Minister Keir Starmer this week is on Labour's "jobs tax".

It's a rowdy start as Badenoch is forced to sit down before restarting. She asks what advice Starmer has for businesses that might be forced to cut wages, put up prices, or sack staff.

Keir Starmer begins by saying the UK "rules nothing out" when dealing with Donald Trump's tariffs.

He says a trade war benefits nobody, and the UK is "prepared for all eventualities", promising a "calm, pragmatic approach".

"We've been preparing for all eventualities ahead of the confirmation of US tariffs later today," he says.

"Let me be clear with the House, a trade war is in nobody's interest, and the country deserves - and we will take - a calm, pragmatic approach.

"That's why constructive talks are progressing to agree a wider economic prosperity deal with the US. That's why we're working will all industries and sectors likely to be impacted.

"Our decisions will always be guided by our national interest, and that's why we have prepared for all eventualities and we will rule nothing out."

Brian Wheeler
Reporting from the House of Commons

Jonathan Reynolds has a prime seat on the Labour front bench this week.

He has been leading negotiations with the US over possible exemptions to Donald Trump’s tariffs.

Expect a few questions about how that’s going.