PMQs review: on-form Miliband leaves Cameron rattled

After a perfectly-scripted joke from the Labour leader on alcohol pricing, the PM never recovered.

Rarely has Ed Miliband enjoyed PMQs as much as he did today. He began with what sounded like a deathly dull question on minimum alcohol pricing before producing his best opening line to date: "is there anything he could organise in a brewery?" 

After Vince Cable's intervention on the economy, the OBR's rebuke of Cameron, Theresa May's barely concealed leadership pitch and new forecasts of a triple-dip recession, the Labour leader was not short of material for the rest of the session. "When the Business Secretary calls for him to change course," he asked the PM, "is he speaking for the government?" After Cameron noted in his response that car manufacturing, at least, was up, Miliband ad-libbed: "never mind more car production, it's taxi for Cameron after that answer". Things had got so bad, he noted, that No. 10 had sent Baroness Warsi (the woman he sacked as Conservative chairman and no friend of Cameron) out to say that she had "full confidence" in the PM.  

An off-form Cameron resorted to his stock lines: Miliband had nothing to say about the deficit, Labour would borrow more, Ed Balls was still shadow chancellor, the party was in hock to union "dinosaurs". All of these fell flat, with Tory MPs entirely unmoved. 

The well-marshalled Labour benches again targeted Cameron with questions over the "bedroom tax" and whether he will gain from the abolition of the 50p rate. To the former, he replied by again declaring that only Labour could call "a welfare reform a tax". But with the phrase ("bedroom tax") firmly lodged in the public consciousness, Cameron needs to spend more time defending the measure itself, rather than arguing over the name. On the 50p rate, for the third week running, Cameron again refused to say whether he would benefit from the move, merely stating that he would "pay everything has to". But Labour, encouraged by how Barack Obama forced Mitt Romney onto the defensive over his tax bill, intends to keep pressing the PM on this subject. 

The session ended surreally with Cameron reading out an imaginary letter from "Ed who lives in camden" asking what he should do about the government's seven per cent stamp duty charge on £2m houses. The gag finally roused the Tory benches as the PM mocked Labour's "champagne socialist" (although Cameron, for reasons that do not need stating, is ill-suited to class politics) but their earlier silence means it was Miliband who left smiling. 

Ed Miliband speaks at the CBI's annual conference last year. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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How a small tax rise exposed the SNP's anti-austerity talk for just that

The SNP refuse to use their extra powers to lessen austerity, says Kezia Dugdale.

"We will demand an alternative to slash and burn austerity."

With those few words, Nicola Sturgeon sought to reassure the people of England, Wales and Northern Ireland last year that the SNP were a party opposed to public spending cuts. We all remember the general election TV debates, where the First Minister built her celebrity as the leader of the anti-austerity cause.

Last week, though, she was found out. When faced with the choice between using the powers of the Scottish Parliament to invest in the future or imposing cuts to our schools, Nicola Sturgeon chose cuts. Incredible as it sounds the SNP stood shoulder to shoulder with the Tories to vote for hundreds of millions of pounds worth of cuts to schools and other vital public services, rather than asking people to pay a little bit more to invest. That's not the choice of an anti-austerity pin-up. It's a sell-out.

People living outside of Scotland may not be fully aware of the significant shift that has taken place in politics north of the border in the last week. The days of grievance and blaming someone else for decisions made in Scotland appear to be coming to an end.

The SNP's budget is currently making its way through the Scottish Parliament. It will impose hundreds of millions of pounds of cuts to local public services - including our schools. We don't know what cuts the SNP are planning for future years because they are only presenting a one year budget to get them through the election, but we know from the experts that the biggest cuts are likely to come in 2017/18 and 2018/19. For unprotected budgets like education that could mean cuts of 16 per cent.

It doesn't have to be this way, though. The Scottish Parliament has the power to stop these cuts, if only we have the political will to act. Last week I did just that.

I set out a plan, using the new powers we have today, to set a Scottish rate of income tax 1p higher than that set by George Osborne. This would raise an extra half a billion pounds, giving us the chance to stop the cuts to education and other services. Labour would protect education funding in real terms over the next five years in Scotland. Faced with the choice of asking people to pay a little bit more to invest or carrying on with the SNP's cuts, the choice was pretty simple for me - I won't support cuts to our nation’s future prosperity.

Being told by commentators across the political spectrum that my plan is bold should normally set alarm bells ringing. Bold is usually code for saying something unpopular. In reality, it's pretty simple - how can I say I am against cuts but refuse to use the powers we have to stop them?

Experts - including Professors David Bell and David Eiser of the University of Stirling; the Resolution Foundation; and IPPR Scotland - have said our plan is fair because the wealthiest few would pay the most. Trade unions have backed our proposal, because they recognise the damage hundreds of millions of pounds of cuts will do to our schools and the jobs it will cost.

Council leaders have said our plan to pay £100 cashback to low income taxpayers - including pensioners - to ensure they benefit from this plan is workable.

The silliest of all the SNP's objections is that they won't back our plan because the poorest shouldn't have to pay the price of Tory austerity. The idea that imposing hundreds of millions of pounds of spending cuts on our schools and public services won't make the poorest pay is risible. It's not just the poorest who will lose out from cuts to education. Every single family and business in Scotland would benefit from having a world class education system that gives our young the skills they need to make their way in the world.

The next time we hear Nicola Sturgeon talk up her anti-austerity credentials, people should remember how she did nothing when she had the chance to end austerity. Until now it may have been acceptable to say you are opposed to spending cuts but doing nothing to stop them. Those days are rapidly coming to a close. It makes for the most important, and most interesting, election we’ve had in Scotland.

Kezia Dugdale is leader of Scottish Labour.