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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Forget gaining £350m a week, Brexit would cost the UK £300m a week

Figures from the government's own Office for Budget Responsibility reveal the negative economic impact Brexit would have. 

Even now, there are some who persist in claiming that Boris Johnson's use of the £350m a week figure was accurate. The UK's gross, as opposed to net EU contribution, is precisely this large, they say. Yet this ignores that Britain's annual rebate (which reduced its overall 2016 contribution to £252m a week) is not "returned" by Brussels but, rather, never leaves Britain to begin with. 

Then there is the £4.1bn that the government received from the EU in public funding, and the £1.5bn allocated directly to British organisations. Fine, the Leavers say, the latter could be better managed by the UK after Brexit (with more for the NHS and less for agriculture).

But this entire discussion ignores that EU withdrawal is set to leave the UK with less, rather than more, to spend. As Carl Emmerson, the deputy director of the Institute for Fiscal Studies, notes in a letter in today's Times: "The bigger picture is that the forecast health of the public finances was downgraded by £15bn per year - or almost £300m per week - as a direct result of the Brexit vote. Not only will we not regain control of £350m weekly as a result of Brexit, we are likely to make a net fiscal loss from it. Those are the numbers and forecasts which the government has adopted. It is perhaps surprising that members of the government are suggesting rather different figures."

The Office for Budget Responsibility forecasts, to which Emmerson refers, are shown below (the £15bn figure appearing in the 2020/21 column).

Some on the right contend that a blitz of tax cuts and deregulation following Brexit would unleash  higher growth. But aside from the deleterious economic and social consequences that could result, there is, as I noted yesterday, no majority in parliament or in the country for this course. 

George Eaton is political editor of the New Statesman.