PMQs review: Miliband traps Cameron over "money is no object"

The PM's loose rhetoric handed Miliband a win as he challenged plans to make 550 Environment Agency Staff redundant.

As I predicted he would, Ed Miliband used PMQs to zero in on the contradiction between David Cameron's declaration yesterday that "money is no object" in providing flood relief and Patrick McLoughlin's warning earlier today that there is no "blank cheque". If money is no object, he asked Cameron, will he reconsider the government's plan to make 550 Environment Agency flood staff redundant?

After his loose rhetoric yesterday, the PM was left desperately trying to wriggle out of his commitment. He repeated his pledge to introduce a grant for all affected homeowners and businesses, a £10m fund to help farmers, and to defer tax payments for businesses, with 100 per cent business rate relief. But on the fate of the Environment Agency staff he remained mute. As Miliband reminded him of "what sounded like a grand promise", Cameron was forced to try and change the subject to Labour's spending plans and to the governent's success in reducing the benefit. Since it had managed the budget well, he said, there was no need for "people to worry about penny pinching". But penny pinching is exactly the impression given by his decision to proceed with staff redundancies.

Cameron eventually resorted to the age-old cry of a PM in trouble: the opposition leader was seeking to "divide the House when we should be coming together for the nation". But Miliband's calm and reasoned tone means this charge is unlikely to stick. In what is always difficult territory for an opposition leader, he came out on top. After the session had ended, No. 10 briefed that there would be no new money made available and that any extra funding would come from contigency budgets, a clear reversal of Cameron's pledge yesterday.

The other significant moment came when Cameron was pressed by Labour's Cathy Jamieson on whether he could help Danny Alexander, who has said that the 45p tax rate will be scrapped over his "dead body", by ruling out any further tax cuts for top earners ("or should the Chief Secretary up his life insurance?" she added). Cameron, sounding more sceptical than before, emphasised that his overriding "priority" was to cut taxes for low and middle earners, but still refused to rule out cutting the top rate again. For Labour, such answers are a political gift. For the Tories, however, the significance of Cameron's answer was his reference to "middle" earners, which they view (perhaps wrongly) as a hint that relief could be offered to those who have been sucked into the 40p tax band by fiscal drag.

Finally, after disastrously fielding an all-male frontbench last week and handing Miliband his strongest PMQs victory for months, the Tories went to predictably great lengths to avoid repeating this error, with seven women on the frontbench and a total of 14 in view of the cameras. If the Tories continue to ensure greater gender parity in future weeks, Miliband may well have done them a favour.

George Eaton is political editor of the New Statesman.

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No, Matteo Renzi's referendum isn't Italy's Brexit

Today's Morning Call. 

The European Union saw off one near-death experience yesterday, as Alexander van der Bellen - a Green running under independent colours - saw off Norbert Hofer, the far-right candidate, taking 53 per cent to 47 per cent. 

"Turn of the tide: Europeans hail Austrian far-right defeat" is the Guardian's splash, while "Austria says NEIN to far-right" is the Metro's take.

It's a reminder that the relentless march of the far right is not as irresistible as the Le Pens of the world would like to think, and, for the left, a rare brightspot in a year of seemingly unbroken retreat, albeit by a margin that is too close for comfort. 

But on the other side of the Alps, things are not looking so great. Italian voters have rejected Italian PM Matteo Renzi's proposed constitutional reforms in a landslide, resulting in Renzi's resignation. (For a good primer on who Renzi is or rather was, Joji Sakurai wrote a very good one for us a while back, which you can read here)

"Europe in turmoil as Italian PM is defeated" is the Times splash. It has many worrying that Italy made be headed out of the Euro at worst and trigger another financial crisis in the Eurozone at best. Over at the Spectator, James Forsyth suggests that this will make the EU27 reluctant to put the squeeze on the City of London, which is still the Eurozone's clearing centre. Others, meanwhile, are saying it's all the latest in the populist, anti-establishment wave that is politics in 2016.

Are they right?

The reforms - which, among other things, would have ended the Italian system of "perfect bicameralism" whereby the upper house has as much power as the lower, replacing the former with a legislature drawn from the regions in a similar manner to Germany's - were something of a dog's dinner, and although the referendum was forced on Renzi as they were unable to secure a two-thirds majority among legislators, it was a grave error to turn the vote into a referendum on his government. (Bear in mind that Italy is a multi-party democracy where the left's best ever performance netted it 49.8 per cent of the vote, so he was on a hiding to nothing with that approach.)

If there is a commonality in the votes for Brexit, Trump, Hofer, it's in the revenge of the countryside and the small towns against the cities, with the proviso that in Austria, that vote was large enough to hold back the tide). This was very different. Particularly striking: young graduates, so often the losers at the ballot box and pretty much everywhere else post-financial crash, voted against the reforms yesterday.

Nor can a vote that was supported by Silvio Berlusconi, two of the three major parties, as well as Mario Monti, the technocrat appointed effectively on the demands of Italy's creditors, and the Economist be accurately described as a revolt against "the establishment" if that term is to have any meaningful use whatsoever.  

Of course, it could yet lead to a Brexit-style shock. Renzi's Democratic Party could collapse into in-fighting if his departure is permanent - though who knows, he might parlay his graceful concession speech and the likely chaos that is to follow into a triumphant second act - and although his party has a narrow lead in most polls, the Five Star Movement could win a snap election if one occurs.

That raises the nightmare prospect for Brussels of a Eurosceptic in power in a founder-member of the European Union and the single European currency. (That said, it should be noted that Five Star are opponents of the Euro, not of the European Union. The word "Eurosceptic" is perhaps making some anti-Europeans here in the UK overexcited.)

But as Open Europe noted in their very good primer on the referendum before the result that is still very much worth reading, that not only requires Five Star to win an election, but to hold and win not just a referendum on Italy's Euro membership, but to first win a referendum on changing the constitution to allow such a referendum in the first place. (And remember that support for the EU is up in the EU27 following the Brexit vote, too.)

The biggest risk is financial, not political. Renzi had acquired a quasi-mythical status in the eyes of foreign investors, meaning that his departure will make global finance nervous and could result in the rescue deal for Monte Paschi, the world's oldest bank, being mothballed. Although a economic crisis on the scale of the one Italy experienced in 2011 is unlikely, it's not impossible either. And what follows that may justify the comparisons to Trump rather more than Renzi's defeat yesterday.

THE FUTURE'S ORANGE, BUT NOT BRIGHT

Donald Trump, President-Elect of the world's largest superpower, has taken to Twitter to lambast the Chinese government, the world's second-largest superpower, and also a nation which holds both large numbers of nuclear weapons and vast amounts of American debt. 

The cause of the row? Trump became the first President or President-Elect to talk directly to Taiwan's president since 1979, which the Chinese government has taken umbrage to. (China regards Taiwan as a renegade province, not a separate nation.) 

I'LL SEE EU IN COURT

The government's appeal against the High Court's judgement that Parliament, not the Prime Minister, has the ultimate authority to trigger Article 50 begins today. The argument hinges on whether or not triggering Article 50 represents a loss of rights - if, as the High Court accepted it did, then only the legislature can vote to remove rights, rather than have it done through the royal prerogative. Gina Miller, the lead claimant in the case, tells the Guardianthat Supreme Court judges are being unfairly vilified in the right-wing press, who she blames for the death threats against her. 

TANGLED UP IN BLUE

The government is split over whether to continue paying into the European Union after Brexit to secure a decent standard of access to the single market, Oliver Wright reports in the Times. Boris Johnson used his tour of the Sunday shows to signal his opposition to the idea, which has been publicly backed by Philip Hammond, the Chancellor, and David Davis, the Brexit Secretary. Liam Fox is said to oppose any continued payments into the EU. 

PRETTY HUGE DECEPTION

Ukip's new leader, Paul Nuttall, has denied that he claimed to have a PhD from Liverpool Hope University, blaming the claim on a LinkedIn page set up by parties unknown. Andrew Marr also confronted Nuttall with past comments of him calling for the privatization of the NHS in 2011.

ON THE CASEY

Louise Casey, the government's integration tsar, has a new report out in which she says that ethnic segregation in the UK is increasing, and criticizes the government for not doing enough to tackle the problem. The big items: the condition of women in ethnic minority communities, a lack of English language lessons, and recommended an oath of allegiance for all public servants. It's the latter that has the Mail all excited: "Swear oath to live in Britain" is their splash. Anushka Asthana has the full details in the Guardian.

SPECIALIST IN FAILURE (TO PAY TAXES?)

Commons PAC chair Meg Hillier has called for football coach Jose Mourinho to be investigated over reports that he has moved millions offshore to avoid paying tax. (If 1-1 draws are tax deductible, that would explain a great deal.) 

SOUNDS UNNERVINGLY LIKE HOME

Theresa May has told the Radio Times what her Christmas is like: Midnight Mass, sleep, a church service, then lunch (goose) and Doctor Who. She has opened up on the difficulties of growing up in a vicarage (among other things, not getting to open your presents for aaages). 

AND NOW FOR SOMETHING COMPLETELY DIFFERENT

It's beginning to feel a bit like Christmas! And to help you on your way, here's Anna's top 10 recommendations for Christmassy soundtracks.

MUST READS

Chimamanda Ngozi Adichie on how to respond to Trump

Labour has a horrible dilemma on Brexit, I say

Michael Chessum on why aping Ukip on Brexit is the path to Labour defeat

Jason on how politics makes us human

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Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.