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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Is anyone prepared to solve the NHS funding crisis?

As long as the political taboo on raising taxes endures, the service will be in financial peril. 

It has long been clear that the NHS is in financial ill-health. But today's figures, conveniently delayed until after the Conservative conference, are still stunningly bad. The service ran a deficit of £930m between April and June (greater than the £820m recorded for the whole of the 2014/15 financial year) and is on course for a shortfall of at least £2bn this year - its worst position for a generation. 

Though often described as having been shielded from austerity, owing to its ring-fenced budget, the NHS is enduring the toughest spending settlement in its history. Since 1950, health spending has grown at an average annual rate of 4 per cent, but over the last parliament it rose by just 0.5 per cent. An ageing population, rising treatment costs and the social care crisis all mean that the NHS has to run merely to stand still. The Tories have pledged to provide £10bn more for the service but this still leaves £20bn of efficiency savings required. 

Speculation is now turning to whether George Osborne will provide an emergency injection of funds in the Autumn Statement on 25 November. But the long-term question is whether anyone is prepared to offer a sustainable solution to the crisis. Health experts argue that only a rise in general taxation (income tax, VAT, national insurance), patient charges or a hypothecated "health tax" will secure the future of a universal, high-quality service. But the political taboo against increasing taxes on all but the richest means no politician has ventured into this territory. Shadow health secretary Heidi Alexander has today called for the government to "find money urgently to get through the coming winter months". But the bigger question is whether, under Jeremy Corbyn, Labour is prepared to go beyond sticking-plaster solutions. 

George Eaton is political editor of the New Statesman.