PMQs review: Cameron sends the Tories away happy as he triumphs over Miliband

Labour MPs were left glum-faced as Cameron delivered his strongest performance for months.

Ahead of the summer recess, both David Cameron and Ed Miliband needed a win at today's PMQs to send their troops away happy and it was Cameron who rose to the occasion, delivering his strongest performance for months. The longer the session went on, the more confident he seemed to grow, quipping that he longer needed Lynton Crosby's advice to "defeat a divided and useless Labour Party" and advising Miliband to "move the two people next to you [Ed Balls and Andy Burnham] and...do it fast." 

Miliband had begun by challenging Cameron on NHS staffing levels in response to yesterday's Keogh report but a well-briefed Cameron pointed out that eight of the 11 hospitals placed in special measures now had more nurses than in 2010 and that 10 had more clinical staff. A somewhat deflated Miliband then questioned Cameron over Lynton Crosby and plan cigarette packaging but, once again, the PM had come well-armed. Declaring that the decision was made by him and Jeremy Hunt alone, he noted that the last Labour government had taken the same view and produced a letter from Andy Burnham to Tessa Jowell noting that "no studies have shown that introducing plain packaging would cut the number of young people smoking". 

He again dodged Miliband's question on whether he had ever had a conversation with Crosby on cigarette packaging, merely stating that he had never been "lobbied" by him, but swiftly returned fire by pointing out that Miliband had predicted that unemployment "would get worse, not better" this year. "Isn't it time he withdraws that and admits he was wrong!", he cried. 

Miliband squeezed in a neat dig about Cameron being "the PM for Benson and hedge funds" but Cameron, brimming with confidence, ended with a flourish of rare force: 

We are getting to an end of a political session where the deficit is down, unemployment is down, crime is falling, welfare is capped, Abu Qatada is back in Jordan ... every day this country is getting stronger and every day he is getting weaker.

As the Tory benches cried "more! more!, Labour MPs looked on glum-faced.

Cameron's rollcall of achievements was an apt summary of why the Tories believe the political tide has turned in their favour. An economic recovery finally appears to be underway and the public has tolerated, rather than revolted against austerity. As Cameron noted, it is now February since Miliband asked a full set of questions about the economy. The fear among Labour MPs was always that their party's poll lead owed more to distaste for the coalition than it did to enthusiasm for them. Now, as growth returns, the danger is that it will crumble. 

David Cameron attends a press conference after the European Union leaders summit on June 28, 2013 at the EU headquarters in Brussels. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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FTSE 100 plunges after Theresa May signals hard Brexit ahead

The Prime Minister is to lay out her Brexit plan later today. 

The FTSE 100 and the FTSE 250 plummeted this morning after the Prime Minister signalled Brexit will mean leaving the single market.

Theresa May is expected to rule out "partial membership" or any other kind of "half-in, half-out" deal with the EU in a speech later today.

The FTSE 100, the index of the UK's 100 biggest companies, and the FTSE 250 both fell more than 0.3 per cent immediately after opening. 

The worst performers included the housebuilder Barratt Developments, consumer goods tester Intertek and the mining company BHP.

Stock markets have been buoyant since Brexit, in part because many of Britain's biggest companies are international and benefit from a devalued pound. 

However, while markets fell, the pound crept up against the dollar, to $1.21. 

Critics of the Prime Minister say she is sacrificing the economy to prioritise immigration controls.

TUC general secretary Frances O'Grady warned: "If we leave the single market, working people will end up paying the price. It'd be bad for jobs, for work rights & for our living standards."

According to the Office for National Statistics, inflation rose from 1.2 per cent in November to 1.6 per cent in December. 

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.