PMQs review: Cameron falls into Labour's "bedroom tax" trap

By repeatedly insisting that the "bedroom tax" was not a tax, the Prime Minister gave the phrase new life.

One of Ed Miliband's boldest decisions since becoming Labour leader has been to target the coalition's welfare cuts and today's PMQs saw an all-out assault on the "bedroom tax". For those unfamiliar with the term, it refers to the government's plan to cut housing benefit for those deemed to have more living space than they need, such as a spare bedroom. Social housing tenants with one extra room will lose 14 per cent of their benefit, while those with two or more will lose 25 per cent.  

The government argues that this is another necessary measure to reduce the ballooning housing benefit bill (which is largely due to extortionate rents and substandard wages) but Miliband highlighted the case of a mother with two sons in the army who would lose out while they were away "serving their country". He went on to warn that two-thirds of those affected are disabled (many of whom require an extra room due to their disability) and that it would encourage social housing tenants, "the most vulnerable", to move to the more expensive private sector, wiping out any savings from the policy as the housing benefit bill rises. Miliband also smartly contrasted the Tories' "bedroom tax" with their opposition to a "mansion tax", brandishing a letter from the party to Conservative donors asking them to contribute to a fighting fund against a "homes tax". 

Cameron gave little ground in response, pointing out that there was a £50m fund to deal with "difficullt cases" and bluntly asking why it was fair for social housing tenants to receive money for an extra room when private tenants did not. For a self-described "compassionate Conservative", it was a rather compassionless reply. As Cameron's answers became increasingly ill-tempered, Miliband deftly weaved in a reference to last night's vote on equal marriage: "He shouldn't get so het up. After all, he's got almost half his parliamentary party behind him." Unsurprisingly, the line went down well with both sides of the House. 

The PM's best moment came when he remarked of Miliband: "we know all the things he's against, we are beginning to wonder what on earth he's for?" If Labour is opposed to the "bedroom tax", the "strivers' tax", the "granny tax", the "toddler tax", how would it reduce public spending? Would it introduce a "mansion tax"? Miliband gave the stock reply that "the clue's in the title - Prime Minister's Questions - he's supposed to try and answer them". But this riposte, while acceptable in 2010, is less impressive halfway through the parliament, with Labour MPs increasingly troubled by the perceived lack of policy detail from their leader.

After Miliband had used up his six questions, Labour MPs continued to challenge Cameron over the "bedroom tax" in a well coordinated assault. An increasingly exasperated Cameron repeated that the "bedroom tax" was not a tax but, in doing so, he unwittingly repeated Labour's attack line. Whether the PM likes it or not, when voters hear him refer to the "bedroom tax" that is what they will call it. Across the floor, Miliband and Ed Balls smiled contentedly in response. Their work for the day was done. 

David Cameron leaves 10 Downing Street in London, on February 06, 2013. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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An unmatched font of knowledge

Edinburgh’s global reputation as a knowledge economy is rooted in the performance and international outlook of its four universities.

As sociologist-turned US Senator Daniel Patrick Moynihan recognised when asked how to create a world-class city, a strong academic offering is pivotal to any forward-looking, ambitious city. “Build a university,” he said, “and wait 200 years.” He recognised the long-term return such an investment can deliver; how a renowned academic institution can help attract the world. However, in today’s increasingly globalised higher education sector, world-class universities no longer rely on the world coming to come to them – their outlook is increasingly international.

Boasting four world-class universities, Edinburgh not only attracts and retains students from around the world, but also increasingly exports its own distinctively Scottish brand of academic excellence. In fact, 53.9% of the city’s working age population is educated to degree level.

In the most recent QS World University Rankings, the University of Edinburgh was named as the 21st best university in the world, reflecting its reputation for research and teaching. It’s a fact reflected in the latest UK Research Exercise Framework (REF), conducted in 2014, which judged 96% of its academic departments to be producing world-leading research.

Innovation engine

Measured across the UK, annual Gross Value Added (GVA) by University of Edinburgh start-ups contributes more than £164m to the UK economy. In fact, of 262 companies to emerge from the university since the 1960s, 81% remain active today, employing more than 2,700 staff globally. That performance places the University of Edinburgh ahead of institutions such as MIT in terms of the number of start-ups it generates; an innovation hothouse that underlines why one in four graduates remain in Edinburgh and why blue chip brands such as Amazon, IBM and Microsoft all have R&D facilities in the city.

One such spin out making its mark is PureLiFi, founded by Professor Harald Haas to commercialise his groundbreaking research on data transmission using the visible light spectrum. With data transfer speeds 10,000 times faster than radio waves, LiFi not only enables bandwidths of 1 Gigabit/sec but is also far more secure.

Edinburgh’s universities play a pivotal role in the local economy. Through its core operations, knowledge transfer activities and world-class research the University generated £4.9bn in GVA and 44,500 jobs globally, when accounting for international alumni.

With £1.4bn earmarked for estate development over the next 10 years, the University of Edinburgh remains the city’s largest property developer. Its extensive programme of investment includes the soon-to-open Higgs Centre for Innovation. A partnership with the UK Astronomy Technology Centre, the new centre will open next year and will supply business incubation support for potential big data and space technology applications, enabling start-ups to realise the commercial potential of applied research in subjects such as particle physics.

It’s a story of innovation that is mirrored across Edinburgh’s academic landscape. Each university has carved its own areas of academic excellence and research expertise, such as the University of Edinburgh’s renowned School of Informatics, ranked among the world’s elite institutions for Computer Science. 

The future of energy

Research conducted into the economic impact of Heriot-Watt University demonstrated that it generates £278m in annual GVA for the Scottish economy and directly supports more than 6,000 jobs.

Set in 380-acres of picturesque parkland, Heriot-Watt University incorporates the Edinburgh Research Park, the first science park of its kind in the UK and now home to more than 40 companies.

Consistently ranked in the top 25% of UK universities, Heriot-Watt University enjoys an increasingly international reputation underpinned by a strong track record in research. 82% of the institution’s research is considered world-class (REF) – a fact reflected in a record breaking year for the university, attracting £40.6m in research funding in 2015. With an expanding campus in Dubai and last year’s opening of a £35m campus in Malaysia, Heriot-Watt is now among the UK’s top five universities in terms of international presence and numbers of international students.

"In 2015, Heriot-Watt University was ranked 34th overall in the QS ‘Top 50 under 50’ world rankings." 

Its established strengths in industry-related research will be further boosted with the imminent opening of the £20m Lyell Centre. It will become the Scottish headquarters of the British Geological Survey, and research will focus on global issues such as energy supply, environmental impact and climate change. As well as providing laboratory facilities, the new centre will feature a 50,000 litre climate change research aquarium, the UK Natural Environment Research Council Centre for Doctoral Training (CDT) in Oil and Gas, and the Shell Centre for Exploration Geoscience.

International appeal

An increasingly global outlook, supported by a bold international strategy, is helping to drive Edinburgh Napier University’s growth. The university now has more than 4,500 students studying its overseas programmes, through partnerships with institutions in Hong Kong, Singapore, China, Sri Lanka and India.

Edinburgh Napier has been present in Hong Kong for more than 20 years and its impact grows year-on-year. Already the UK’s largest higher education provider in the territory, more than 1,500 students graduated in 2015 alone.

In terms of world-leading research, Edinburgh Napier continues to make its mark, with the REF judging 54% of its research to be either world-class or internationally excellent in 2014. The assessment singled out particular strengths in Earth Systems and Environmental Sciences, where it was rated the top UK modern university for research impact. Taking into account research, knowledge exchange, as well as student and staff spending, Edinburgh Napier University generates in excess of £201.9m GVA and supports 2,897 jobs in the city economy.

On the south-east side of Edinburgh, Queen Margaret University is Scotland’s first university to have an on-campus Business Gateway, highlighting the emphasis placed on business creation and innovation.

QMU moved up 49 places overall in the 2014 REF, taking it to 80th place in The Times’ rankings for research excellence in the UK. The Framework scored 58% of Queen Margaret’s research as either world-leading or internationally excellent, especially in relation to Speech and Language Sciences, where the University is ranked 2nd in the UK.

In terms of its international appeal, one in five of Queen Margaret’s students now comes from outside the EU, and it is also expanding its overseas programme offer, which already sees courses delivered in Greece, India, Nepal, Saudi Arabia and Singapore.

With 820 years of collective academic excellence to export to the world, Edinburgh enjoys a truly privileged position in the evolving story of academic globalisation and the commercialisation of world-class research and innovation. If he were still around today, Senator Moynihan would no doubt agree – a world-class city indeed.

For further information www.investinedinburgh.com