PMQs review: Cameron tries to blame Labour for the living standards crisis

Rather than following Osborne and denying that living standards are falling, Cameron sought to hold the last Labour government responsible.

George Osborne's recent response to claims of a "cost-of-living crisis" by Labour has been to deny that there is one. In his Autumn Statement last week, the Chancellor boasted that, on his preferred measure, living standards were rising. He was duly rebuked by the IFS, which said that Osborne's metric "should certainly not be used in isolation" and confirmed that real incomes had fallen by around £1,600 since May 2010.

When Ed Miliband made this point to David Cameron at today's PMQs, Cameron's response was striking. Rather than quibbling with the figures, he conceded that "household incomes" had fallen but argued that this was not surprising after "the biggest recession in 100 years". In other words: blame Labour. He declared of Miliband: "His entire approach seems to be 'we made this almighty mess, why are they taking so long to clear it up'– well, we are clearing it up!" But while this line might have been effective in 2010, it is likely to be less so after three and a half years of the coalition (as Miliband noted). Conversely, blaming the living standards crisis on the last government, rather than denying it altogether, is undoubtedly a better approach for Cameron (whose biggest weakness is being seen as "out-of-touch" by voters) to take.

Miliband went on to press Cameron on his hint, in an interview with the Spectator, that the top rate of tax could be reduced from 45p to 40p under a Conservative majority government. The PM sharply replied that the top rate was still higher than in any year of the last Labour government but notably refused to deny that he hopes to cut it.  The possibility of Labour going into the next election proposing to reintroduce the 50p rate, while the Tories plan to reduce it to 40p, shows how much ideological ground is opening up between the two parites.

In response to Miliband's earlier questions on MPs' pay, ahead of IPSA's expected recommendation of an 11% rise tomorrow, Cameron went significantly further than before and said that unless ISPSA "thinks again", he "wouldn't rule anything out". When asked after the session whether this meant he would be prepared to scrap the body and hand control of MPs' pay back to parliament, the PM's spokesman said: "You've got his words. He's ruling nothing out." After being caught flat-footed by Miliband earlier this week (who called for cross-party talks on the issue), it now seems that Cameron will find some way to ensure the rise does not go through.

David Cameron makes his way to Downing Street from the Houses of Parliament. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Harriet Harman: “Theresa May is a woman, but she is no sister”

The former deputy leader of the Labour Party urged women to unite across the divided party.

The day-long women's conference is usually the friendliest place at Labour party conference. Not only does it have a creche and a very clear emphasis on accessibility, but everybody who attends starts from a place of fundamental agreement before the sessions have even begun. For that reason, it's often ignored by political hacks in search of a juicy splits story (especially since it takes place on Saturday, before the "real" conference action really gets underway). But with the party divided and the abuse of women on and off social media a big concern, there was a lot to say.

This year, kick off was delayed because of the announcement of Jeremy Corbyn's victory in the leadership election. The cheer for the renewed leader in the packed women's conference hall was far bigger than that in the main hall, although not everybody was clapping. After a sombre tribute to the murdered Labour MP and former chair of the Labour Women's Network Jo Cox, Harriet Harman took to the stage.

As a long-time campaigner for women's rights, veteran MP and former deputy leader of the Labour Party, Harman is always popular with women's conference - even if her position on the current leadership and her status as a former Blairite minister places her out of sync with some of the audience. Rather than merely introducing the first speaker as the agenda suggested, Harman took the opportunity to make a coded dig at Corbyn by doing a little opposition of her own.

"Theresa May is a woman, but she is no sister," she declared, going on to describe the way that May, as shadow spokesperson for women and equalities under William Hague, had been a "drag anchor" on Harman's own efforts to enact pro-women reforms while Labour were in government. The Thatcher comparison for May is ubiquitous already, but Harman made it specific, saying that like Thatcher, Theresa May is a woman prime minister who is no friend to women.

Harman then turned her attention to internal Labour party affairs, reassuring the assembled women that a divided party didn't have to mean that no advances could be made. She gestured towards the turmoil in Labour in the 1980s, saying that "no matter what positions women were taking elsewhere in the party, we worked together for progress". Her intervention chimes with the recent moves by high profile former frontbenchers like Chuka Umunna and Yvette Cooper to seek select committee positions, and Andy Burnham's campaign to become mayor of Greater Manchester.

Harman's message to women's conference was clear: the time for opposition to Corbyn is over now - we have to live with this leadership, but we can't let the equalities legacy of the Blair years be subsumed in the meantime. She ended by saying that "we have many leaders in the Labour party," pointing to Jess Phillips, the chair of the women's PLP, and Angela Rayner, shadow minister for education, women and equalities. Like Burnham, Cooper et al, Harman has clearly decided that Corbyn can't be unseated, so ways must be found to work around him.

Rayner followed Harman onto the stage. As one of Corbyn's shadow ministerial team, Rayner is far from in agreement with Harman on everything, and rather than speak about any specific policy aims, she addressed women's conference on the subject of her personal journey to the front bench. She described how her mother was "born on the largest council estate in Europe and was one of twelve children" and "never felt loved and didn’t know how to love, because hugs, cuddles and any signs of affection just wasn’t the norm". She went on to say "mum won't mind me saying this - to this day she cannot read and write". Her mother was in the audience, attending her first Labour conference.

As a former care worker who became a mother herself when she was just 16, Rayner is a rarity at the top of Labour politics. She told the Guardian in 2012 that she is used to being underestimated because of her youth, her gender and her northern accent: "I'm a pretty young woman, lots of red hair, and everyone expects me to be stupid when I walk into a meeting for the first time. I'm not stupid and most people know that now, but I still like to be underestimated because it gives me an edge. It gives me a bit of stealth."

The mass shadow cabinet resignations in June propelled Rayner to the top sooner than an MP only elected in 2015 might have expected, and she has yet to really prove her mettle on the grind of parliamentary opposition and policy detail. But if Labour is ever to win back the seats in the north where Ukip and Brexit are now strong, it's the likes of Rayner that will do it. As Harriet Harman herself shows, the women and equalities brief is a good place to start - for even in turbulent, divided times for Labour, women's conference is still a place where people can find common ground.

Caroline Crampton is assistant editor of the New Statesman.