Kemi Badenoch erupted at Sir Keir Starmer over Labour's budget "mess" in a PMQs clash. The Tory leader hit back at the Prime Minister after he claimed he was "clearing up the mess" her party left.

She had warned that Labour's National Insurance raid on employers was forcing businesses to "cut wages, put up prices, or sack their staff". Mrs Badenoch said: "From Sunday, Labour's jobs tax will mean many British businesses face a terrible choice: to cut wages, put up prices, or sack their staff. What is the Prime Minister's advice to those businesses?"

The Prime Minister replied: "She says the triple lock was Conservative policy. It was once thought to be the party of sound finances, but they blew all of that.

"She asked what we're doing, we're clearing up the mess that they left. We're dealing with global instability, and we recognise the pressures that are bearing down on businesses and individuals and working people, that's why we're rolling up our sleeves.

"And yesterday, I was pleased to announce the national living wage increasing by £1,400, that's a pay rise for millions of workers.

"We've announced £150 for the warm homes discount, extended now to six million households - that's one in five families - and wages are going up faster than prices. And never forget, the party opposite: worst living standards on record, inflation up to 11%, public services left on their knees."

But the leader of the Opposition replied: "The only mess is the one that he made with his budget. They had an emergency budget last week that fixed nothing. He says he's bringing stability, all we see is fragility."

Chancellor Rachel Reeves has faced an ongoing backlash for hiking employers' national insurance contributions in her autumn budget.