Ed Davey

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Parliament's party history for this member: Liberal Democrat (1 May 1997 – present).

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1. 28 Oct 2026·Parliament·Ed Davey

   Engagements

   I associate myself with the Prime Minister’s opening remarks, and join others in sending our best wishes to the Clerk of the House as he retires. When I met the Prime Minister for social care cross-party talks in July, we talked about supporting family carers better, so I welcome the abolition of the cliff edge on carer’s allowance, which has caused so much misery, but the details are less welcome. It will not take effect for four years, and when it does, the Government will claw back £1 for every extra £1 a carer earns—a 100% tax rate for working carers. That cannot be right, so will he meet me to discuss our plans to fix carer’s allowance, which would make work pay for family carers?

   Hansard source
2. 28 Oct 2026·Parliament·Ed Davey

   Engagements

   I am grateful to the Prime Minister for that reply. I hope the invitation will extend to the Conservatives, who want to join in real cross-party talks to solve this long-standing issue. Turning to the economy, the Prime Minister is right to say that Britain’s best future lies back at the heart of Europe. He is also right to say that we need to build consensus within the British public to make that happen. But instead of making everyone wait for Labour’s next manifesto, will the Prime Minister start now to show the economic benefits of a closer trading relationship with Europe by joining a customs union, joining the single market, boosting growth and using the dividends of that growth to help with the cost of living by cutting people’s taxes?

   Hansard source
3. 28 Oct 2026·Parliament·Ed Davey

   Budget Resolutions and Economic Situation

   It is always a pleasure to follow the Chair of the Treasury Committee, the hon. Member for Hackney South and Shoreditch (Dame Meg Hillier). I am glad she committed to looking at the devil in the detail of this Budget, because when one looks at the fine print there are quite a few things for her Committee to scrutinise. In particular, I hope that she will look at the very disappointing growth forecasts, because I think this Budget will be defined more by Labour’s red lines on Europe and the Conservatives’ Brexit red tape than by faster growth. At the root of so much of what has gone wrong in our country—the cost of living crisis, higher taxes, broken public services, empty high streets, and the lack of jobs and opportunity—is the lack of economic growth. Our economy is being held back. British business is being held back. It is being held back above all by the terrible damage of the Conservatives’ Brexit deal: a deal, let us never forget, that was backed by the leader of Reform and voted for by Labour—a deal that put up pointless new barriers to trade, tied up British firms in extra costs and red tape, and pushed up prices on our supermarket shelves.

   Hansard source
4. 28 Oct 2026·Parliament·Ed Davey

   Budget Resolutions and Economic Situation

   Thank you, Madam Deputy Speaker. I am always happy to talk to the hon. Gentleman in the Tea Room. As I was saying, our economy is being held back by Brexit, so the biggest single thing the Government could do to fix our economy is to fix our trading relationship with Europe and take us back into the single market and a customs union, giving us the growth and the money to cut people’s taxes. <em>[</em><em>Interruption.</em><em>]</em>

   Hansard source
5. 28 Oct 2026·Parliament·Ed Davey

   Budget Resolutions and Economic Situation

   Thank you, Madam Deputy Speaker. Unless and until a Government have the courage to do just what I have outlined, I am afraid that any Budget will only be tinkering around the edges, because it will not provide the growth our country so desperately needs. The Prime Minister, to be fair, has rightly talked about the economic damage caused by Brexit, but in answer to my questions he still refuses to drop Labour’s red lines set down by Keir Starmer more than five years ago. The world has changed so much since then and it is long past time that Labour policy changed with the <span id="329" class="column-number" data-column-number="329"></span>world. I welcome the Prime Minister talking more openly this week about the need to move forward on Europe, but can I say to the Chancellor and the Prime Minister that it is just too urgent to wait until the next Parliament? Today’s Budget shows why. I remember when 2% growth was nothing special. When we were in government that was the average, but since we left the EU, it has been less than half that—less than 1% growth a year. Today’s forecasts show things starting slowly to move in the right direction, but they still show growth well below 2% every year for the next five years. What used to be average growth now feels like a pipe dream, so we need a real growth plan with Europe at its heart: a plan that only our party has set out—an economic plan to make Britain richer, safer and stronger. Our plan would also tackle one of the great hidden tax injustices not just of this Budget, but of every Conservative and Labour Budget since 2021: frozen income tax thresholds. They are a stealth tax rise that has dragged millions of the lowest paid into paying income tax and millions of ordinary people—nurses, teachers, police officers—into the higher 40p tax band. Millions are paying higher taxes for the cost of Government economic failure. I have to say to the Chancellor that this Budget, which freezes the income tax allowance of people in work while raising the personal allowance for some pensioners, is not the answer. Income tax thresholds should rise for everyone—the fairest tax cut possible—letting people keep more of what they earn, rewarding hard work and giving individuals more power in our economy. That is a profoundly Liberal thing to do. If we grow the economy by trading more with Europe, we can afford to do that—a real plan to turn the economy around and cut taxes fairly. Our plan would also tackle one of the biggest headaches the Chancellor is facing in this Budget: the cost of Government borrowing. We clearly cannot go on spending £1 in every £12 just on interest payments on the national debt. That is money that should be going on schools, on hospitals, or back into people’s pockets. We just cannot go on with the Government borrowing money at interest rates of over 5%. Some of the cost is down to global factors, as the Chancellor talked about, and a lot of it is down to Donald Trump’s war with Iran, but there is no doubt that the bond markets would look more favourably on the UK if our growth prospects were better. Just as for growing the economy, the single biggest thing the Government could do to cut their own borrowing costs, and the interest rates faced by homeowners and businesses, would be to take up our growth plan, and join the single market and customs union. Just look at the alternative put forward by the terrible twins of British politics, the Conservatives and Reform. They are in a bidding war of unfunded fantasy promises. We have seen where that sort of fiscal irresponsibility ends; Liz Truss’s mini-Budget sent mortgage rates rising. Yet now we face the threat of a Tory-Reform Government doing it all over again. The British people simply cannot afford that. That brings me back to the cost of living. Why are so many bills going up again? Because Donald Trump chose to start his idiotic war with Iran, which has pushed up our energy bills and hiked diesel and petrol prices to painful levels. When that war began, the Conservatives and Reform were lining up to say that <span id="330" class="column-number" data-column-number="330"></span>Britain should be backing President Trump. Just imagine if they had been in charge. We would have been dragged into fighting a war that no one wants and paying for it with even higher bills and higher taxes. Britain needs a Government who stand up for British interests, not one who make us ever more dependent on an unreliable, out-of-control American President. With Donald Trump pushing up petrol and diesel prices, the Chancellor’s freeze on fuel duty is welcome, but it is not enough. I urge him to look again at our emergency transport package, which would cut prices at the pumps by 12p a litre and bring down the cost of travel by bus, train and electric vehicle, too—a real breathing space for families and businesses. With energy bills forecast to rise by more than 25% in January, the Chancellor’s promise to break the link between gas prices and electricity bills cannot come soon enough, but he is right to reject the siren song from those on the Conservative and Reform Benches who want Britain to be even more dependent on dirty fossil fuels and their volatile prices. Once again, they are copying Donald Trump, and their energy plan would be a disaster for our environment, our economy and for everyone struggling with the cost of living. The right answer is to invest instead in clean home-grown renewable power, energy efficiency and battery storage, so that the prices we pay do not depend on Trump’s latest Truth Social post, but instead come down quickly as technology continues to slash the cost of renewable energy and of batteries. In a world where Trump is deserting Ukraine, praising Putin and selling out on European security, we must move far more quickly on defence. When the Defence Secretary says we must be ready for war within 1,000 days, our armed forces cannot wait years for the investment they desperately need now. The Chancellor’s announcement of some extra funding is welcome as far as it goes, but why has he not taken up our plan for defence bonds to invest £20 billion in Britain’s defence over the next two years? And since he has ruled out joining Canada’s defence bank, will he now take up our plan and push for a European rearmament bank that goes so much further than what he announced today? Instead of signing up to one country’s version, surely the right answer is to bring our allies together behind a shared vision of defence investment to protect our continent from Putin. The defence of our country needs serious answers like these, not fantasy pledges like the Conservatives’ “iron dome”, which they say is not an iron dome—except when it is. What a shambles! No wonder they left Britain’s armed forces in such a mess, something for which they have not yet apologised. It will not surprise the House to hear that we on the Liberal Democrat Benches are delighted to hear talk of fiscal devolution. Taking money and power out of a few hands in Whitehall and giving it to communities to make their own decisions is something that we, as Liberals, have always championed. There is a right way to do devolution and a wrong way, so we will have three tests for the Government’s plan as it develops. First, does it give councils enough money to fulfil the responsibilities they are being given? Secondly, does it reach beyond mayors to councils and communities everywhere? Thirdly, is it fair, so that those areas that are already struggling do not find themselves with even less? Done properly, this could be the start of something really big; done badly, it is simply passing the buck.<span id="331" class="column-number" data-column-number="331"></span> The same goes for welfare reform. Of course it needs to be done, but it needs to be done right: cutting the bill by helping people into work and giving people the care and support they need so that they can work, like fixing carer’s allowance to help people juggle care with work. I am glad that the Chancellor has listened to carers on the need to scrap the unfair cliff edge of carer’s allowance. As I said to the Prime Minister earlier, this cannot wait another four years, and we cannot see a 100% tax rate on working carers. I urge the Chancellor and the Prime Minister to look at our alternative plan instead, which we put forward to Liz Sayce when she did her review. I hope to bring it to the meeting that the Prime Minister has promised. Whether on carer’s allowance or other benefits, let us reform welfare right, so that the system helps people into work and then rewards them for working. The country needs this new Chancellor and Prime Minister to succeed, because the livelihoods of everyone in our country are at stake. The Liberal Democrats will work constructively with the Government wherever we can. We will oppose them when they get things wrong, of course, but we will also support them when they get things right and push them to go further when they are too timid. In that spirit, I say to the Chancellor that this Budget is far too timid. The Government have recognised the scale of the challenge, but like Keir Starmer before them, they still have not risen to it. They have not fixed the terrible damage that they did with their tax rises, from the family farm tax to the jobs tax. I urge them to be bolder—be bolder on energy and defence; be bolder on devolution, and get it right; be bolder on cutting income tax; and be bolder on Europe and growth—because after so many years of pain, so many years of being held back, the British people need real change, and fast.

   Hansard source
6. 21 Oct 2026·Parliament·Ed Davey

   Engagements

   May I associate myself with your remarks, Mr Speaker, and the remarks of others about the terrible tragedy in Aberfan 60 years ago? Our thoughts and prayers are with the survivors, their families, and the whole community there. I find it amazing to hear the Conservative leader talk about the economy after everything that her party did to wreck it. The single biggest thing that the Prime Minister could do to fix growth is take the UK back into the European single market and the customs union, on which the Conservatives failed the country. That would boost revenues, so we could raise the personal allowance and give everyone a tax cut. When I pushed the Prime Minister last week on a new economic strategy based on trade with Europe, he said no. Is he really saying, after all that he has rightly said about the damage that the Conservatives’ Brexit has done to our economy, that he will wait until after the next election before considering the single market?

   Hansard source
7. 21 Oct 2026·Parliament·Ed Davey

   Engagements

   We need to grow our economy. Without a proper plan—a more urgent plan—for re-engaging with Europe on trade, next week’s Budget will not be the growth Budget that our country needs. This week, Ukraine’s defence system was seriously undermined by the US restricting access to Elon Musk’s Starlink system. Musk says that the order came from the White House, but <em>The Telegraph </em>and <em>The Wall Street Journal </em>have revealed that he put the idea to Donald Trump. I understand the Prime Minister’s reluctance to criticise the President of United States, but does he agree that directly aiding Putin in this way is beyond the pale? Will he work with European allies to prevent Elon Musk from obtaining the licences that he wants, because that would make our continent even more dependent on his satellite system?

   Hansard source
8. 14 Oct 2026·Parliament·Ed Davey

   Engagements

   Thank you, Mr Speaker—[Hon. Members: “More!] They will be getting more. Mr Speaker, can I join you, the Prime Minister and the Leader of the Opposition in praising the late Sir David Amess and sending our condolences to his family? He was a man who was respected across this House and who had friends across this House. When the Prime Minister announced cross-party talks on social care over the summer, I was delighted and immediately accepted because getting this right really matters. He said then that to build a lasting solution on funding care, we were going to have to listen to each other and find common ground. He said that when he tried before, back in 2009, his mistake had been leaving it too close to an election. Does he still think that now? If we are to find the common ground well before the next election, will he tell us when the next round of cross-party talks will be?

   Hansard source
9. 14 Oct 2026·Parliament·Ed Davey

   Engagements

   The Prime Minister knows that I share his passion to get this right. He knows that I share his passion to work cross-party to find consensus, which is the only way we can put this right, but I hope we can get on with the cross-party talks. We cannot push this to the end of the next decade. We have to act now for the millions of people who need our help. Can I move on to other matters? Scared of the mid-terms, President Trump has done a deal with Vladimir Putin to buy Russian diesel, ripping up international sanctions against Putin. The Prime Minister studiously avoided commenting on Trump’s behaviour on Monday, but this House deserves to know his position, as do President Zelensky and our brave Ukrainian allies. So <span id="363" class="column-number" data-column-number="363"></span>let me ask the Prime Minister this: does he not agree that this is yet another shameful Trump betrayal of the Ukrainian people and European security?

   Hansard source
10. 12 Oct 2026·Parliament·Ed Davey

    International Update

    Following the loss of his father, Roy, may I start by offering the Prime Minister’s family my deepest sympathies? I am sure that we were all moved by his words about his dad, and his determination to fix social care and tackle the devastating impact of dementia on sufferers and their families. I hope that we can work across this House to make that happen. Let me now turn to the Prime Minister’s words about Europe. His predecessors turned a blind eye to the disastrous consequences of the Conservatives’ Brexit deal, so it was welcome to hear him recognise that damage today. We on these Liberal Democrat Benches have consistently argued that their Brexit deal has made us all poorer, weaker and less safe, so I am glad that the Prime Minister has arrived at the same conclusion, but now it is time to do something about it.<span id="30" class="column-number" data-column-number="30"></span> The test of the Prime Minister’s ambition is straightforward, if he wants growth and if he wants to cut the cost of living. Will he drop Labour’s red lines now, and open negotiations on joining the single market and a customs union? It would be a real dereliction of duty to refuse now to fix a deal that we know is not working. Every day, every week, every month of delay means more unnecessary costs for British businesses, more pointless red tape, more pain for British families. Being outside negotiations on AI safety, “Made in Europe” regulations and migration agreements does this country real harm. Fixing our relationship with Europe is more important now than ever, especially at a time when President Trump is waging a trade war with Canada while signing a new trade deal with Putin. Never before have we seen a US President so hostile to the UK and our allies, and so friendly to our adversaries. We cannot afford to fudge or dodge on this issue, and especially on Ukraine, so will the Minister bring together a coalition of the willing behind a joint statement condemning Trump’s diesel deal with Russia and calling on him to cancel it? Let me finally refer to the Prime Minister’s comments about Russian interference in the Brexit referendum. That took courage, after the Conservatives had spent so long suppressing the evidence. Will the Prime Minister now present it to the House in full, alongside any evidence of interference in other UK votes, so that we can understand the threat and make it a national security priority to protect our democracy from attacks such as that?

    Hansard source

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