Asya Robins
Live reporter

Keir Starmer faced Prime Minister's Questions today under pressure on several fronts, including the economy and his handling of the resignation of Treasury minister Tulip Siddiq.

Opposition leader Kemi Badenoch pressed him repeatedly on both of these issues, accusing Labour of going on an "unprecedented spending spree" with its October Budget, which she said had raised borrowing costs and taxes for businesses.

Starmer insisted his government was taking the difficult decisions needed to bring growth and stability, and hit out at the Conservatives' record in government, calling them "economic vandals and fantasists".

Badenoch also questioned Starmer over Siddiq, who resigned as a Treasury minister after an ethics investigation into Siddiq's links to an anti-corruption probe in Bangladesh, which we explained a little earlier.

The Conservative leader asked the prime minister if he would offer Bangladesh the support of the UK's crime agency in their ongoing investigation, which Starmer did not directly answer. He did however say that his independent standards adviser had concluded there was no breach of the ministerial code and no wrongdoing by Siddiq.

So, a big week for the Treasury, which our political editor Chris Mason looks at in this pithy analysis. For now, though, that's it from us - join us for another PMQs next week.

Image source, Reuters

We've an update now on something that was raised by Tory leader Kemi Badenoch at Prime Minister's Questions - the future of the Chagos Islands.

The UK's planned handover of the Chagos Islands to Mauritius should be considered by incoming US President Donald Trump before it goes ahead, Downing Street says.

At a briefing this afternoon, Keir Starmer's official spokesman tells reporters No 10 "will only agree to a deal that is in the UK's best interests" - and that it's "obviously now right" Trump's government is given the time to discuss the deal.

Under the terms of the original agreement, which was announced in October, the UK would relinquish sovereignty to Mauritius over the archipelago but maintain a 99-year lease for Diego Garcia, home to a major UK-US military airbase.

"We are committed to working with the Mauritius government," the spokesman adds.

What's Tulip Siddiq alleged to have done?published at 13:29 Greenwich Mean Time 15 January

13:29 GMT 15 January

By Anthony Reuben

At PMQs, Keir Starmer stressed that his independent standards adviser had concluded "there was no breach of the [ministerial] code... there was no wrongdoing" by former Treasury minister Tulip Siddiq.

Siddiq resigned nonetheless, while insisting she had done nothing wrong, saying that continuing in her role would be "a distraction from the work of the government".

Laurie Magnus, the independent adviser on ministerial standards, said in his report to the prime minister it was "regrettable that she was not more alert to the potential reputational risks" from her family’s political role in Bangladesh.

Her aunt was ousted last year as the country’s prime minister and Siddiq has been named in a corruption investigation into the aunt by Bangladesh's Anti-Corruption Commission.

A spokesperson for Siddiq said: "No evidence has been presented for these allegations. Tulip Siddiq has not been contacted by anyone on the matter and totally denies the claims."

Magnus also said there was an "unfortunate misunderstanding" about who had bought Siddiq a flat in Kings Cross, which had led to the public being "inadvertently misled".

While he concluded that she had not breached the ministerial code, he also suggested Starmer would "want to consider her ongoing responsibilities".

Image source, UK Parliament

Not long ago, Keir Starmer faced Prime Minister's Questions in what's been a challenging week for the government, with the PM under pressure over the economy and his handling of the resignation of Treasury minister Tulip Siddiq.

Here's what you need to know:

• Conservative leader Kemi Badenoch pressed Starmer on his support for Chancellor Rachel Reeves, saying she had met business leaders who say they will no longer exist next year because of measures introduced in the Budget - including a rise in National Insurance for employers
• Badenoch went on to describe Reeves' Budget as an "unprecedented borrowing spree" but Starmer pushed back, saying Labour had to take "right and difficult decisions" to heal the economy
• He also insisted his party was taking the difficult decisions required to address the £22bn "black hole" left by the previous Conservative government, adding that Labour's policies on the public sector would boost growth and stability

• The resignation of Tulip Siddiq was another area of questioning, with the PM pressed on whether he will offer Bangladesh the support of the UK's crime agency in their ongoing anti-corruption investigation into the Labour MP's aunt - a question Badenoch said Starmer didn't address
• Badenoch then questioned proposed changes to the law that would allow former Sinn Féin president Gerry Adams to claim compensation for unlawful detention
• And Starmer was also accused of "surrendering" the Chagos Islands - but he defended the government's plans, saying he was handed a tricky situation and that he's committed to maintaining a 99-year lease over a UK-US base on the largest island of Diego Garcia

Here's the moment Tory leader Kemi Badenoch accused Keir Starmer of being distracted from "market turmoil", as he dealt with the resignation of his now former Treasury minister Tulip Siddiq.

A little earlier, we brought you a recap on the row over Siddiq's position and why she ended up quitting, which you can catch up on.

For now, though, here's the heated exchange between Badenoch and Starmer:

Image source, Getty Images

Much has happened politically and economically since October, when Rachel Reeves delivered Labour's first Budget since 2010, but with the UK economy experiencing some issues this past week - it's been brought up again and again.

As a reminder, Reeves announced tax rises worth £40bn to fund the NHS and other public services in the Budget. Here's a quick look at some of the measures she announced:

• Rates of income tax and National Insurance (NI) paid by employees, and of VAT, remained unchanged
• Basic rate capital gains tax on profits from selling shares to increase from 10% to 18%, with the higher rate rising from 20% to 24%
• Companies to pay NI at 15% on salaries above £5,000 from April, up from 13.8% on salaries above £9,100, raising an additional £25bn a year
• Increases in day-to-day spending on the NHS and education, as well as defence spending while Home Office budget to shrink (due to assumed savings from asylum system)
• The official definition of UK government debt was also loosened and the Office for Budget Responsibility (OBR) later warned some of the new policies would increase UK borrowing by an average of £32.3bn over the next five years

You can read our story from the time, which looks at key takeaways from the Budget.

Are higher borrowing costs a 'global' problem?published at 12:42 Greenwich Mean Time 15 January

12:42 GMT 15 January

By Ben Chu, BBC Verify policy and analysis correspondent

Challenged on the rise in UK borrowing costs since the Budget, Keir Starmer said: "The global economy is experiencing higher borrowing costs."

It’s correct that borrowing costs are up across most developed countries over the last month, not just the UK.

Analysts say this likely reflects a sell-off in US government bonds in anticipation of Donald Trump’s potentially inflationary economic policies. The US market moves are, in effect, driving moves in other national markets.

However, UK borrowing costs have risen by slightly more than those of other countries over the last month.

In the UK, 10-year borrowing costs have risen by 38 basis points since 15 December 2024. That’s more than in the US (36 basis points), Germany (37 basis points) and Japan (21 basis points).

Analysts say that relative weakness for the UK could reflect that UK government bonds are seen as less desirable to investors, perhaps due to the UK government’s relatively high levels of borrowing from abroad and the economic outlook.

Peter Bedford, Tory MP for Mid Leicestershire, asks the PM what advice he'll give to charities like Age UK who are confronted with whether or not to slash jobs or slash services to some of the most vulnerable in society.

In response, Starmer accuses the Tories of wanting the "benefits" of the Budget, without any of the tough measures necessary to support the Budget.

• Can't remember the details of the Budget? Read our explainer from the time, which looks at the key takeaways from the announcement

Lib Dem leader Sir Ed Davey is on his feet now.

He says patients are suffering through the "worst NHS winter crisis on record", adding 54,000 people waited for more than 12 hours in A&E.

He says health leaders say this will keep happening until social care is fixed.

Will the PM scrap the three-year timetable he's given in the Casey Commission so that we can fix social care, he asks - pointing out he asked the same question last week, and was disappointed with the answer.

Starmer says the Tories left the NHS on its knees - "there's no point groaning", he says to the opposite benches. He then says Labour is trying to turn that around - but avoids the question about social care.

The tussle for economic credibility is onpublished at 12:28 Greenwich Mean Time 15 January

12:28 GMT 15 January

Chris Mason
Political editor

The economic landscape - perhaps unsurprisingly - was the backdrop to the exchanges between the prime minister and the Conservative leader.

It will be the backdrop to our politics for years to come.

The arguments were familiar - Sir Keir Starmer focused on "kickstarting economic growth" and Kemi Badenoch talking about the government’s "unprecedented borrowing spree".

Yet again, Starmer pointed towards the likelihood of the government spending less than it had intended if the cost of borrowing remains high.

The government, he said, has an "iron-clad commitment to our fiscal rules" and the country can’t "tax our way out of problems".

He branded the Conservatives "economic vandals and fantasists".

But Badenoch could point out that the country is spending more on debt interest than on schools and universities.

The tussle for economic credibility is on, with the scrutiny now primarily focused on Labour after years of it being primarily on the Tories.

Badenoch says Starmer failed to answer her question about the Bangladesh investigation. And for her final question she moves onto former Sinn Féin president Gerry Adams, calling the saga shameful.

Badenoch goes on to say the Tories left him the fastest growing economy in the G7 and says jobs and growth are down, mortgage rates up and business confidence down. She asks if the country can afford four more years of Starmer's "terrible" judgement.

Starmer calls the question a "barrage of complete nonsense" and says the Tories "crashed the economy" - but he answers the part on Adams, saying it relates to the Legacy Act and Labour is working on replacement legislation.

• For context: Adams is in line for "a pay day from the taxpayer" under plans to repeal the Legacy Act, a report backed by several peers has stated.

Badenoch says that amid market turmoil, Starmer was focused on the controversy around now former Treasury minister Tulip Siddiq.

She presses the PM on whether he will give the support of the UK's crime agency to Bangladesh, including on its investigation of properties linked to Siddiq's family in London.

Starmer says Siddiq advised herself to the standards adviser and was found to have done nothing wrong but resigned anyway.

• For context: The government's standards adviser said no "evidence of improprieties" had been found in relation to Siddiq, but added it was "regrettable" she hadn’t been more alert to the "potential reputational risks" of the ties with her aunt, the former prime minister of Bangladesh. You can read more about her resignation in our earlier post.

Brian Wheeler
Reporting from the House of Commons

Nigel Farage wants to ask a question.

The Reform UK leader is bobbing up and down in his seat in an effort to catch the Speaker’s eye.

Brian Wheeler
Reporting from the House of Commons

Tory MPs - including former leadership contender James Cleverly, watching intently from the back row - are shouting “why, though?” as Keir Starmer explains how Treasury Minister Tulip Siddiq resigned yesterday.

Badenoch sticks to the Chagos Islands topic, saying "there's no one he can blame for this dud deal" before moving on to - once again - question Reeves's record as chancellor.

After a brief interruption from the Speaker of the House, the Tory leader challenges the chancellor's attempt to defend her Budget, as Reeves did yesterday.

She asks Starmer whether he's ready to support Reeves going forward and demands reassurances that there'll be "only one Budget this year".

The prime minister says he believes the chancellor will be in place for "for many, many years to come", adding Labour is committed to "strong fiscal rules" - unlike the Conservatives.

• For context: Reeves has faced criticism over her Autumn Budget, with economists and retailers arguing measures introduced, such as the increase in employers' National Insurance contributions, will spur inflation.

Badenoch responds, saying borrowing costs were last week at a 27-year-high for 30-year gilts.

UK government bonds - known as "gilts" - are normally considered very safe, with little risk the money will not be repaid. They are mainly bought by financial institutions, such as pension funds. Interest rates - known as the yield - on government bonds have been going up since around August.

She then switches to the issue of British territory the Chagos Islands and asks if the PM thinks the British people should pay to "surrender something that is already ours".

Starmer says Labour inherited a tricky situation but the new deal ensures continued operation of the base.

• For context: Under an agreement announced in October, the UK would hand sovereignty over the Chagos islands to Mauritius, but maintain a 99-year lease over the UK-US military airbase on the largest island, Diego Garcia. Get up to speed with the details of that story here.

Badenoch's second question focuses on the British Retail Consortium saying today that two thirds of businesses will have to raise prices to cope with the government's tax hike.

She then accuses the Chancellor Rachel Reeves of an "unprecedented borrowing spree".

The Conservative leader says businesses will raise prices, energy policies will drive up bills, while the UK is spending more on debt interest than on schools and universities.

She asks if Starmer will rule out tax rises this year

Starmer says Labour took "right and difficult decisions", which the Tories failed to and that there are limits to what he can say now at the despatch box.

He repeats that Labour's committed to its Budget promises and growing the economy - something he says the Tories failed to do

Brian Wheeler
Reporting from the House of Commons

There are ironic cheers from the Tory benches as Starmer blames “global factors” and the “£22bn black hole” for higher borrowing costs.

Chancellor Rachel Reeves is grinning, perhaps mindful of the social media memes of her looking glum that did the rounds last week.

In response, the prime minister says the global economy is experiencing volatility and that's why it was right for Labour to make the decisions it did.

He also explains that Labour is mitigating the "blackhole" left by the previous Tory leadership.

The government has an "iron-clad" commitment to its fiscal rules, he says.

The PM says the decisions the government took on health and other parts of the public sector were vital for stability and growth - and adds that Badenoch and her party remain "economic vandals".

Kemi Badenoch is now at the despatch box to ask Starmer her first question of the week.

Badenoch says she's met business leaders who say their companies will no longer exist next year because of new financial measures introduced by Labour, including a rise in National Insurance for employers.

The Tory leader asks "why should anyone trust a word he says" when businesses complain that Rachel Reeves's Budget will affect their ability to operate.

• Can't remember the details of the Budget? Read our explainer from the time, which looks at the key takeaways from the announcement