PMQs review: a win for Miliband as Cameron slips up on food banks

"I never thought the big society was about feeding hungry children in Britain," Miliband tells Cameron.

The final PMQs of the year is always a daunting occasion for both party leaders; a poor performance risks their MPs going home for Christmas disgruntled with their leadership. Last year, a duff joke about coalition disunity sunk Ed Miliband as David Cameron quipped, "It's not that bad, it's not like we're brothers or anything". This year, happily for the Labour leader, there was no repeat.

After asking Cameron to update the Commons on British operations in Afghanistan, Miliband turned to the subject of food banks, asking the PM whether he was concerned that they had increased six-fold in the last three years. Cameron responded by ill-advisedly hailing food bank volunteers as part of the "big society", prompting Miliband to reply, in one of his best lines for weeks, "I never thought the big society was about feeding hungry children in Britain."

Cameron attempted to defend the coalition's record by pointing to the council tax freeze and the increase in the personal allowance as evidence of the action he had taken to protect living standards. But in a reminder of just how politically toxic the decision to cut the top rate of tax remains, Miliband replied that Cameron had imposed a "strivers' tax" on low and middle income families (a reference to George Osborne's plan to uprate tax credits by just 1 per cent over the next three years), whilst giving an average tax cut of £107,500 to people earning over a million pounds a year. Expect Labour to take every opportunity to remind the public of this fact ahead of the official introduction of the reduced top rate (50p to 45p) in April.

Finding his stride, Miliband said Cameron was "back to his old ways" after reports that he had an "intense conversation" with Rebekah Brooks last weekend. "No doubt they're both looking forward to the Boxing Day hunt," he added. Miliband ended by declaring that no one now believed Cameron could be a "one nation" prime minister, to which Cameron, in a flash of wit, replied: "it wouldn't be Christmas without the repeats." He ended by turning to what remains his strongest suit - the deficit - accusing Miliband of offering more of the "something-for-nothing culture that got us into this mess in the first place."

Both leaders played to their strengths today. While polls show that the public believe that the coalition is cutting too far, too fast, they also show that they continue to regard the cuts as necessary and blame Labour more than the coalition for them. The economic debate is finely poised. The next year will begin to show in whose favour it will be resolved.

Labour leader Ed Miliband said David Cameron could never be a "one nation" prime minister. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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The tale of Battersea power station shows how affordable housing is lost

Initially, the developers promised 636 affordable homes. Now, they have reduced the number to 386. 

It’s the most predictable trick in the big book of property development. A developer signs an agreement with a local council promising to provide a barely acceptable level of barely affordable housing, then slashes these commitments at the first, second and third signs of trouble. It’s happened all over the country, from Hastings to Cumbria. But it happens most often in London, and most recently of all at Battersea power station, the Thames landmark and long-time London ruin which I wrote about in my 2016 book, Up In Smoke: The Failed Dreams of Battersea Power Station. For decades, the power station was one of London’s most popular buildings but now it represents some of the most depressing aspects of the capital’s attempts at regeneration. Almost in shame, the building itself has started to disappear from view behind a curtain of ugly gold-and-glass apartments aimed squarely at the international rich. The Battersea power station development is costing around £9bn. There will be around 4,200 flats, an office for Apple and a new Tube station. But only 386 of the new flats will be considered affordable

What makes the Battersea power station development worse is the developer’s argument for why there are so few affordable homes, which runs something like this. The bottom is falling out of the luxury homes market because too many are being built, which means developers can no longer afford to build the sort of homes that people actually want. It’s yet another sign of the failure of the housing market to provide what is most needed. But it also highlights the delusion of politicians who still seem to believe that property developers are going to provide the answers to one of the most pressing problems in politics.

A Malaysian consortium acquired the power station in 2012 and initially promised to build 517 affordable units, which then rose to 636. This was pretty meagre, but with four developers having already failed to develop the site, it was enough to satisfy Wandsworth council. By the time I wrote Up In Smoke, this had been reduced back to 565 units – around 15 per cent of the total number of new flats. Now the developers want to build only 386 affordable homes – around 9 per cent of the final residential offering, which includes expensive flats bought by the likes of Sting and Bear Grylls. 

The developers say this is because of escalating costs and the technical challenges of restoring the power station – but it’s also the case that the entire Nine Elms area between Battersea and Vauxhall is experiencing a glut of similar property, which is driving down prices. They want to focus instead on paying for the new Northern Line extension that joins the power station to Kennington. The slashing of affordable housing can be done without need for a new planning application or public consultation by using a “deed of variation”. It also means Mayor Sadiq Khan can’t do much more than write to Wandsworth urging the council to reject the new scheme. There’s little chance of that. Conservative Wandsworth has been committed to a developer-led solution to the power station for three decades and in that time has perfected the art of rolling over, despite several excruciating, and occasionally hilarious, disappointments.

The Battersea power station situation also highlights the sophistry developers will use to excuse any decision. When I interviewed Rob Tincknell, the developer’s chief executive, in 2014, he boasted it was the developer’s commitment to paying for the Northern Line extension (NLE) that was allowing the already limited amount of affordable housing to be built in the first place. Without the NLE, he insisted, they would never be able to build this number of affordable units. “The important point to note is that the NLE project allows the development density in the district of Nine Elms to nearly double,” he said. “Therefore, without the NLE the density at Battersea would be about half and even if there was a higher level of affordable, say 30 per cent, it would be a percentage of a lower figure and therefore the city wouldn’t get any more affordable than they do now.”

Now the argument is reversed. Because the developer has to pay for the transport infrastructure, they can’t afford to build as much affordable housing. Smart hey?

It’s not entirely hopeless. Wandsworth may yet reject the plan, while the developers say they hope to restore the missing 250 units at the end of the build.

But I wouldn’t hold your breath.

This is a version of a blog post which originally appeared here.

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