Tory leader Kemi Badenoch hammered Labour on inflation today, after new figures showed it has risen to 3.6%, the highest in the G7 and 150% higher than the government’s official target.

Taking to the dispatch box for PMQs, Ms Badenoch slammed Sir Keir Starmer for presiding over a worsening economy.

She fumed: “We just heard inflation is up again – the worst in the G7 – we left him with 2% inflation. We have borrowing up, unemployment up, taxes are up under his government.”

“The fact is the Prime Minister doesn’t get it! So let me tell him, his Budget last year had high taxes. That’s why the economy is contracting.”

Ms Badenoch attempted to get the PM to clarify who will be hit by the inevitable tax rises later this year, after ministers insisted they won’t rise for people on “modest incomes”.

Asked what counts as a “modest income”, Sir Keir defaulted to his soundbite about “working people”.

“I think about working people up and down this country who put in every day and don’t get back what they deserve, and that’s who we’re working for, that’s why we’re fixing the country. The sort of people who work hard but haven’t got the savings to buy themselves out of problems.”

Ms Badenoch pointed out Sir Keir hadn’t answered her question, leaving millions of hard-pressed Britons concerned they will be hit by Rachel Reeves’ inevitable tax hikes.

Responding to the claim that she is “talking the country down”, the Tory leader hit back: “I’m not talking the country down, I’m talking him down!”

The Prime Minister also notably dodged a question about whether the self-employed would be hit with higher taxes later this year, after the Chief Secretary to the Treasury said Labour would increase taxes on payslips.

Sir Keir also refused to rule out taxing pension contributions, which Ms Badenoch claimed the Treasury is currently running a review of and would constitute a tax on working people if introduced.

She said: “He doesn’t want to talk about pension contributions. It’s alright for the PM, he has his own special law to stop his personal pension from being taxed!”

She branded the Labour Party “too scared, or perhaps too weak” to cut spending, and so have been left with the only option of raising taxes.

“We offered to work with him to reform welfare and make meaningful savings. But his refusal sent a signal and now the cost of borrowing is rising.”

Following PMQs, a Tory Party spokesman warned: “Labour won’t rule out hitting the self-employed with new taxes. They won’t rule out a tax raid on pensions. And the Prime Minister says ‘modest incomes’ refers to anyone without savings, raising the prospect of a tax on savings in the autumn.

“Labour is treating working people with contempt. Hiking taxes is not inevitable – it is a choice brought on by the government’s economic incompetence.”