PMQs review: Cameron's "spare room subsidy" won't beat the "bedroom tax"

The PM has left it too late to reframe the debate over the welfare cut, not least with a phrase as clunky as his.

Bankers' bonuses may be even less popular with the public than the EU, so the Tories' decision to oppose Brussels's cap on bonuses was a political gift that Ed Miliband readily seized on at today's PMQs. The Labour leader began amusingly by asking David Cameron how he would help "John in East London", who earns £1m and is worried that his bonus may be capped at £2m. Cameron replied that bonuses were now a quarter of what they were under Labour and that he wouldn't listen to "the croupier in the casino when it all went bust". It was a strong reply - voters still blame the last Labour government for the cuts, rather than the coalition - but, politically speaking, it is hard for Cameron to reconcile this with his opposition to further curbs on bonuses. 

Miliband went on to contrast the PM's stance on bonuses, with his introduction of the "bedroom tax". At this point, Cameron declared that before moving on to the "spare room subsidy" (the PM's preferred term), he wanted Miliband to apologise for the "mess he left the country in". When Cameron deploys this tactic, Miliband usually replies that "it's called Prime Minister's Questions, I ask the questions, he answers them". But this week the Labour leader had prepared a wittier than ususal riposte. "It's good to see him preparing for opposition," he joked, adding that he was "looking forward" to facing Theresa May, whose leadership ambitions are the subject of growing speculation. At this quip, the Home Secretary shot Milband a look of thunder. 

Much of the rest of the session was taken up by the "bedroom tax", with Cameron accusing Labour of scaremongering over the policy. Referring all the time to the "spare room subsidy", the PM said that pensioners and those with severely disabled children were "exempt" from the subsidy. Except they're not; they will receive the subsidy. In his determination not to use "bedroom tax", the PM ended up misdescribing his own policy. Cameron isn't wrong to recognise the importance of "framing" the debate but after weeks in which the "bedroom tax" has become the media's phrase of choice, he has left it too late to do so. Just as the "poll tax" triumphed over the "community charge", so the "bedroom tax" will triumph over the (clunky) "spare room subsidy". 

But the PM was on stronger ground when he revealed that Labour had opposed £83bn of welfare cuts. The perception that the party is incapable of taking tough decisions and would simply "borrow more" is one that Cameron is rightly keen to encourage. And with Ed Balls and Ed Miliband unwilling to argue explicitly for deficit-financed stimulus, the charge that they are concealing their true intentions could gain ground. 

David Cameron outside 10 Downing Street. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Why relations between Theresa May and Philip Hammond became tense so quickly

The political imperative of controlling immigration is clashing with the economic imperative of maintaining growth. 

There is no relationship in government more important than that between the prime minister and the chancellor. When Theresa May entered No.10, she chose Philip Hammond, a dependable technocrat and long-standing ally who she had known since Oxford University. 

But relations between the pair have proved far tenser than anticipated. On Wednesday, Hammond suggested that students could be excluded from the net migration target. "We are having conversations within government about the most appropriate way to record and address net migration," he told the Treasury select committee. The Chancellor, in common with many others, has long regarded the inclusion of students as an obstacle to growth. 

The following day Hammond was publicly rebuked by No.10. "Our position on who is included in the figures has not changed, and we are categorically not reviewing whether or not students are included," a spokesman said (as I reported in advance, May believes that the public would see this move as "a fix"). 

This is not the only clash in May's first 100 days. Hammond was aggrieved by the Prime Minister's criticisms of loose monetary policy (which forced No.10 to state that it "respects the independence of the Bank of England") and is resisting tougher controls on foreign takeovers. The Chancellor has also struck a more sceptical tone on the UK's economic prospects. "It is clear to me that the British people did not vote on June 23 to become poorer," he declared in his conference speech, a signal that national prosperity must come before control of immigration. 

May and Hammond's relationship was never going to match the remarkable bond between David Cameron and George Osborne. But should relations worsen it risks becoming closer to that beween Gordon Brown and Alistair Darling. Like Hammond, Darling entered the Treasury as a calm technocrat and an ally of the PM. But the extraordinary circumstances of the financial crisis transformed him into a far more assertive figure.

In times of turmoil, there is an inevitable clash between political and economic priorities. As prime minister, Brown resisted talk of cuts for fear of the electoral consequences. But as chancellor, Darling was more concerned with the bottom line (backing a rise in VAT). By analogy, May is focused on the political imperative of controlling immigration, while Hammond is focused on the economic imperative of maintaining growth. If their relationship is to endure far tougher times they will soon need to find a middle way. 

George Eaton is political editor of the New Statesman.