PMQs review: professor Miliband gives Cameron an economics lesson

The Labour leader had the stats on his side but will voters accept his distinction between 'good' borrowing and 'bad' borrowing?

It's often forgotten that Ed Balls isn't the only economist on the Labour frontbench; Ed Miliband also taught the subject at Harvard while on sabbatical from the Treasury and he gave David Cameron a suitably stern lesson at today's PMQs. In a stat-heavy assault on the coalition's economic record, he reminded Cameron that the economy had grown by just 0.4 per cent since October 2010 (it was expected to grow by more than five per cent), that the UK had grown more slowly than 17 of the G20 countries and that this was now the weakest recovery for more than a hundred years. 

Confronted by that record, Cameron played a bad hand as well as he could. He was aided by Labour MPs who foolishly cheered when he conceded that the economy shrank by 0.3 per cent in the most recent quarter, an error that the PM quickly pounced on. "Only honourable members opposite could cheer that news," he fumed. From there, he ridiculed what he called Labour's "three-point plan": "more spending, more borrowing more debt". 

After Miliband noted that the deficit so far this year was £7.2bn (7.3 per cent) higher than last year, Cameron replied, "if he thinks there's a problem with borrowing, why does he want to borrow more?" It is the question that Labour has struggled to answer since the election. The Tories' credit card analogy may be a hackneyed one but it is easier to explain to the electorate than Keynes's paradox of thrift. In response to Cameron, Miliband cried: "he's borrowing for failure!" The Labour leader's hope is that the public will distinguish between the coalition's 'bad' borrowing, driven by higher welfare bills, and his party's 'good' borrowing (a VAT cut, national insurance holiday, higher infrastructure spending and the like). But without explicitly declaring that Labour would borrow for growth (and explaining why), he risks reinforcing the impression that borrowing is always and everywhere a bad thing. 

Miliband, aware that polls show more voters continue to blame Labour (26 per cent) for the cuts than the coalition (21 per cent), has never conceded that his party would, at least temporarily, borrow more than the coalition. For now, with the public more worried about the disappearance of growth, he can avoid further scrutiny. But at some point before the election, Labour will need to say what its plans would mean for deficit reduction. Anything else will allow the Tories to claim they'd make "the same mistakes" all over again. 

Ed Miliband said that David Cameron was "borrowing for failure". Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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The strange death of boozy Britain: why are young people drinking less?

Ditching alcohol for work.

Whenever horrific tales of the drunken escapades of the youth are reported, one photo reliably gets wheeled out: "bench girl", a young woman lying passed out on a public bench above bottles of booze in Bristol. The image is in urgent need of updating: it is now a decade old. Britain has spent that time moving away from booze.

Individual alcohol consumption in Britain has declined sharply. In 2013, the average person over 15 consumed 9.4 litres of alcohol, 19 per cent less than 2004. As with drugs, the decline in use among the young is particularly notable: the proportion of young adults who are teetotal increased by 40 per cent between 2005 and 2013. But decreased drinking is not only apparent among the young fogeys: 80 per cent of adults are making some effort to drink less, according to a new study by consumer trends agency Future Foundation. No wonder that half of all nightclubs have closed in the last decade. Pubs are also closing down: there are 13 per cent fewer pubs in the UK than in 2002. 

People are too busy vying to get ahead at work to indulge in drinking. A combination of the recession, globalisation and technology has combined to make the work of work more competitive than ever: bad news for alcohol companies. “The cost-benefit analysis for people of going out and getting hammered starts to go out of favour,” says Will Seymour of Future Foundation.

Vincent Dignan is the founder of Magnific, a company that helps tech start-ups. He identifies ditching regular boozing as a turning point in his career. “I noticed a trend of other entrepreneurs drinking three, four or five times a week at different events, while their companies went nowhere,” he says. “I realised I couldn't be just another British guy getting pissed and being mildly hungover while trying to scale a website to a million visitors a month. I feel I have a very slight edge on everyone else. While they're sleeping in, I'm working.” Dignan now only drinks occasionally; he went three months without having a drop of alcohol earlier in the year.

But the decline in booze consumption isn’t only about people becoming more work-driven. There have never been more alternate ways to be entertained than resorting to the bottle. The rise of digital TV, BBC iPlayer and Netflix means most people means that most people have almost limitless choice about what to watch.

Some social lives have also partly migrated online. In many ways this is an unfortunate development, but one upshot has been to reduce alcohol intake. “You don’t need to drink to hang out online,” says Dr James Nicholls, the author of The Politics of Alcohol who now works for Alcohol Concern. 

The sheer cost of boozing also puts people off. Although minimum pricing on booze has not been introduced, a series of taxes have made alcohol more expensive, while a ban on below-cost selling was introduced last year. Across the 28 countries of the EU, only Ireland has higher alcohol and tobacco prices than the UK today; in 1998 prices in the UK were only the fourth most expensive in the EU.

Immigration has also contributed to weaning Britain off booze. The decrease in alcohol consumption “is linked partly to demographic trends: the fall is largest in areas with greater ethnic diversity,” Nicholls says. A third of adults in London, where 37 per cent of the population is foreign born, do not drink alcohol at all, easily the highest of any region in Britain.

The alcohol industry is nothing if not resilient. “By lobbying for lower duty rates, ramping up their marketing and developing new products the big producers are doing their best to make sure the last ten years turn out to be a blip rather than a long term change in culture,” Nicholls says.

But whatever alcohol companies do to fight back against the declining popularity of booze, deep changes in British culture have made booze less attractive. Forget the horrific tales of drunken escapades from Magaluf to the Bullingdon Club. The real story is of the strange death of boozy Britain. 

Tim Wigmore is a contributing writer to the New Statesman and the author of Second XI: Cricket In Its Outposts.