Sir Keir Starmer has accused the Prime Minister of being “out of touch” with the public amid claims the PM is “clueless about life outside of his bubble”.

The Labour leader attacked Rishi Sunak for protecting his “beloved” nom-dom tax status and taking “every possible opportunity to protect a tax avoidance scheme that helped his own finances”.

Speaking at Prime Minister’s Questions, Mr Sunak insisted the decisions being taken by the UK Government are “supporting working people”.

Sir Keir claimed that people are “£1,600 worse off”, questioning whether the PM is “just clueless about life outside his bubble”.

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In response, Mr Sunak said: “A single mother working full-time on the national living wage this year will get £1,300 more support from this Government.

“A working couple on low income with two children will get £1,800. That’s what delivering for working Britain looks like, but if he has any actual ideas for the economy he should say so because all I hear from the party opposite, it’s more spending, more borrowing, higher inflation, higher interest rates, it’s the same old Labour Party.”

But the Labour leader accused the Prime Minister of presiding over a “low-growth, high-tax economy”, pointing to comments made by former Tory chancellor George Osborne.

Sir Keir said: “That former chancellor not only said they’re a bunch of Tory vandals, he also said there’s a self-induced financial crisis on the country. That’s those vandals.

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“They like to pretend that it was all just one week of madness last autumn, but the truth is it’s been 13 years of failure.”

He added: “How on earth does he think his low-growth, high-tax economy is working for working people?”

The leader of the opposition said the PM “could stop the handouts he’s giving to oil and gas giants” and “could scrap his beloved non-dom status”.

He added: “He could put that money back in the hands of working people and get the NHS back on its feet, that’s what a Labour government would do, why doesn’t he?”

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Mr Sunak replied: “The record is clear, look at it right now. Record numbers of people in work.

“Inequality now lower, the number of people in poverty lower. Those in low pay, the lowest numbers on record.

“He talks about this non-dom thing, I think he’s already spent the money that he claims he’d raise on five different things because it’s the same old Labour Party. They’re always running out of other people’s money.”

The Prime Minister hit out at the Labour leader’s “special pensions scheme”.

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Sir Keir Starmer told the Commons: “He calls it ‘this non-dom thing’, let’s be honest about what his refusal to scrap the non-dom status means.

“It means that at every possible opportunity he has voted to put taxes up on working people while at the same time taking every possible opportunity to protect a tax avoidance scheme that helped his own finances.

“Why is the Prime Minister telling people across the country that their taxes must go up so that his can stay low?”

Rishi Sunak replied: “The fact is the wealthiest pay more tax and the poorest pay less tax today than under … the last Labour government.”

He added: “The rank hypocrisy of it, as we saw last week when it comes to his own special pensions scheme. I said it last week, but I will say it again, it is literally one law for him and a tax rise for everybody else.”

Sir Keir Starmer responded: “Here’s the difference: I would scrap his pension giveaway whether it affected me or not. He refuses to scrap the non-dom status that benefits him and his family. I can see why he is attracted to this ‘non-dom thing’.”

The Labour leader claimed Rishi Sunak was “so out of touch that he looks at a petrol pump and a debit card like they’ve just arrived from Mars”.

He added: “Is it any wonder that he smiles his way through the cost-of-living crisis while putting other people’s taxes up?

“Is it any wonder he doesn’t have a clue how food prices are hammering families across country, and is it any wonder that under him people are paying more and more and getting less and less?”

The Prime Minister responded by laying out Labour’s recent record in Parliament, telling MPs: “Let’s just look at what’s happened just in this week, where the Labour Party have put themselves.

“On Monday in the House of Lords they decided to side with extremist protesters, just yesterday they sided with polluters, and tonight we will see them siding with the people smugglers.”