PMQs review: Cameron's 50p tax problem hasn't gone away

The PM's decision to cut taxes for the highest earners left him vulnerable to Miliband's Reagan-style attack over living standards.

It was Ronald Reagan who Ed Miliband channelled at today's PMQs as he asked his own version of the US President's famous question to Jimmy Carter in the 1980 presidential debate: "Are you better off now than you were four years ago?" 

After today's Resolution Foundation report on "Squeezed Britain" warned that household incomes will not return to pre-recession levels until 2023, Miliband asked David Cameron: "At the end of the parliament, will living standards be higher or lower than they were at the beginning?" 

Understandably reluctant to reply "no", Cameron pointed to the action the coalition had taken to protect living standards, including the rise in the personal allowance and the council tax freeze. But Miliband swiftly countered that the biggest tax cut of all was for those earning over a million pounds a year, who would see their income tax bill fall by more than £100,000 from this April. What made the PM think that those earning £20,000 a week needed "extra help to keep the wolf from the door", he asked.

It was a reminder of why the decision to scrap the 50p rate tax was so politically disastrous for the Tories; it confirmed their status as the party of the rich and overshadowed the Budget's more popular measures. Cameron may contend that the 50p rate was a revenue loser for the Treasury but to most voters that sounds like an argument for cracking down on avoidance, not for cutting taxes. Later asked by Labour MP Stephen Pound whether he would personally benefit from the move, Cameron replied evasively that he would "pay his taxes". Expect Labour to take every opportunity to ask this question before the start of the new tax year on 6 April. 

But Cameron gained the upper hand when he turned his fire on Miliband. Referencing the "major speech" that the Labour leader will give on the economy tomorrow, he mockingly quoted reports that "it won’t have any new policies in it". Jon Cruddas had said that "simply opposing the cuts without an alternative is no good", the PM went on to note. "That is right, the whole frontbench opposite is no good." 

It was punchy stuff but Cameron's decision to cut the 50p rate, combined with the suspicion that he will benefit from the move, means he remains vulnerable on the subject of living standards. With this in mind, Tory MP Robert Halfon has imaginatively called for the reintroduction of the 10p rate, to prove that his party believes in "tax cuts for the many, not just for the few", while simultaneously reminding voters of a Labour error. 

So it was notable that Cameron remarked towards the end of the session, "we won't forget the abolition of the 10p tax rate". Was this is a hint of action to come in the Budget? Almost certainly not (the fiscally conservative Osborne wouldn't allow it), but it would be exactly the kind of "trump card" that Tory MPs have been urging the Chancellor to play. 

David Cameron waits outside Number 10 Downing Street in London on February 11, 2013. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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The deafening killer - why noise will be the next great pollution scandal

A growing body of evidence shows that noise can have serious health impacts too. 

Our cities are being poisoned by a toxin that surrounds us day and night. It eats away at our brains, hurts our hearts, clutches at our sleep, and gnaws at the quality of our daily lives.

Hardly a silent killer, it gets short shrift compared to the well-publicised terrors of air pollution and sugars food. It is the dull, thumping, stultifying drum-beat of perpetual noise.

The score that accompanies city life is brutal and constant. It disrupts the everyday: The coffee break ruined by the screech of a line of double decker buses braking at the lights. The lawyer’s conference call broken by drilling as she makes her way to the office. The writer’s struggle to find a quiet corner to pen his latest article.

For city-dwellers, it’s all-consuming and impossible to avoid. Construction, traffic, the whirring of machinery, the neighbour’s stereo. Even at home, the beeps and buzzes made by washing machines, fridges, and phones all serve to distract and unsettle.

But the never-ending noisiness of city life is far more than a problem of aesthetics. A growing body of evidence shows that noise can have serious health impacts too. Recent studies have linked noise pollution to hearing loss, sleep deprivation, hypertension, heart disease, brain development, and even increased risk of dementia.

One research team compared families living on different stories of the same building in Manhattan to isolate the impact of noise on health and education. They found children in lower, noisier floors were worse at reading than their higher-up peers, an effect that was most pronounced for children who had lived in the building for longest.

Those studies have been replicated for the impact of aircraft noise with similar results. Not only does noise cause higher blood pressure and worsens quality of sleep, it also stymies pupils trying to concentrate in class.

As with many forms of pollution, the poorest are typically the hardest hit. The worst-off in any city often live by busy roads in poorly-insulated houses or flats, cheek by jowl with packed-in neighbours.

The US Department of Transport recently mapped road and aircraft noise across the United States. Predictably, the loudest areas overlapped with some of the country’s most deprived. Those included the south side of Atlanta and the lowest-income areas of LA and Seattle.

Yet as noise pollution grows in line with road and air traffic and rising urban density, public policy has turned a blind eye.

Council noise response services, formally a 24-hour defence against neighbourly disputes, have fallen victim to local government cuts. Decisions on airport expansion and road development pay scant regard to their audible impact. Political platforms remain silent on the loudest poison.

This is odd at a time when we have never had more tools at our disposal to deal with the issue. Electric Vehicles are practically noise-less, yet noise rarely features in the arguments for their adoption. Just replacing today’s bus fleet would transform city centres; doing the same for taxis and trucks would amount to a revolution.

Vehicles are just the start. Millions were spent on a programme of “Warm Homes”; what about “Quiet Homes”? How did we value the noise impact in the decision to build a third runway at Heathrow, and how do we compensate people now that it’s going ahead?

Construction is a major driver of decibels. Should builders compensate “noise victims” for over-drilling? Or could regulation push equipment manufacturers to find new ways to dampen the sound of their kit?

Of course, none of this addresses the noise pollution we impose on ourselves. The bars and clubs we choose to visit or the music we stick in our ears. Whether pumping dance tracks in spin classes or indie rock in trendy coffee shops, people’s desire to compensate for bad noise out there by playing louder noise in here is hard to control for.

The Clean Air Act of 1956 heralded a new era of city life, one where smog and grime gave way to clear skies and clearer lungs. That fight still goes on today.

But some day, we will turn our attention to our clogged-up airwaves. The decibels will fall. #Twitter will give way to twitter. And every now and again, as we step from our homes into city life, we may just hear the sweetest sound of all. Silence.

Adam Swersky is a councillor in Harrow and is cabinet member for finance. He writes in a personal capacity.