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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What is the Scottish Six and why are people getting so upset about it?

The BBC is launching a new Scottish-produced TV channel. And it's already causing a stooshie. 

At first glance, it should be brilliant news. The BBC’s director general Tony Hall has unveiled a new TV channel for Scotland, due to start broadcasting in 2018. 

It will be called BBC Scotland (a label that already exists, confusingly), and means the creation of 80 new journalism jobs – a boon at a time when the traditional news industry is floundering. While the details are yet to be finalised, it means that a Scottish watcher will be able to turn on the TV at 7pm and flick to a Scottish-produced channel. Crucially, it will have a flagship news programme at 9pm.

The BBC is pumping £19m into the channel and digital developments, as well as another £1.2m for BBC Alba (Scotland’s Gaelic language channel). What’s not to like? 

One thing in particular, according to the Scottish National Party. The announcement of a 9pm news show effectively kills the idea of replacing News at Six. 

Leading the charge for “a Scottish Six” is John Nicolson, the party’s Westminster spokesman for culture, media and sport. A former BBC presenter himself, Nicolson has tried to frame the debate as a practical one. 

“Look at the running order this week,” he told the Today programme:

“You’ll see that the BBC network six o’clock news repeatedly runs leading on an English transport story, an English health story, an English education story. 

“That’s right and proper because of the majority of audience in the UK are English, so absolutely reasonable that English people should want to see and hear English news, but equally reasonable that Scottish people should not want to listen to English news.”

The SNP’s opponents think they spy fake nationalist outrage. The Scottish Conservatives shadow culture secretary Jackson Carlaw declared: “Only they, with their inherent and serial grievance agenda, could find fault with this.” 

The critics have a point. The BBC has become a favourite punch bag for cybernats. It has been accused of everything from doctored editing during the independence referendum to shrinking Scotland on the weather map

Meanwhile, the SNP’s claim to want more coverage of Scottish policies seems rather hollow at a time when at least one journalist claims the party is trying to silence him

As for the BBC, it says the main reason for not scrapping News at Six is simply that it is popular in Scotland already. 

But if the SNP is playing it up, there is no doubt that TV schedules can be annoying north of the border. When I was a kid, at a time when #indyref was only a twinkle in Alex Salmond’s eye, one of my main grievances was that children’s TV was all scheduled to match the English holidays. I’ve migrated to London and BBC iPlayer, but I do feel truly sorry for anyone in Glasgow who has lost half an hour to hearing about Southern Railways. 

Then there's the fact that the Scottish government could do with more scrutiny. 

“I’m at odds with most Labour folk on this, as I’ve long been a strong supporter of a Scottish Six,” Duncan Hothershall, who edits the Scottish website Labour Hame. “I think the lack of a Scotland-centred but internationally focused news programme is one of the factors that has allowed SNP ministers to avoid responsibility for failures.”

Still, he’s not about to complain if that scrutiny happens at nine o’clock instead: “I think the news this morning of a new evening channel with a one hour news programme exactly as the Scottish Six was envisaged is enormously good news.”

Let the reporting begin. 

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.