Daily Archives: January 12, 2011

David Cameron put up a good fight at prime minister’s questions today, accusing Ed Miliband of being a “nothing man” who had been at the Treasury during the build-up to the credit crunch – at a time when the Labour government gave Sir Fred Goodwin a knighthood. His best joke: “A shadow chancellor who can’t count and a Labour leader who doesn’t count.”

But on the policy argument of the day – bank bonuses – Ed Miliband skewered Mr Cameron. Indeed the prime minister was forced to rely on some slightly dodgy numbers to rebut the attack by the leader of the opposition.

We rehearsed this precise argument on this blog on Monday, as you can read here.

In essence Cameron argued that the new bank levy would this year raise £2.5bn – more than the £2.3bn raised by Labour’s bank bonus tax last year. “£2.5bn is more than £2.3bn,” he told the chamber.

By contrast Ed Miliband argued that last year’s one-off tax raised £3.5bn while the banking levy will only raise £1.3bn. It is Miliband who is telling the truth. Read more

Here is a link to the full ft.com story if you are interested. But the key points of this morning’s report by the Institute of Fiscal Studies – on the impact of IDS’s universal credit – is: