Emily Gosden
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Gordon Brown and David Cameron clashed repeatedly over the recession at their first Prime Minister's Questions of the new year, with the Tory leader telling Mr Brown his VAT cut had been an “expensive failure”.
Mr Brown retorted that Mr Cameron was a “do nothing” leader and that the Conservatives would “leave people defenceless” in the face of recession. The Prime Minister said that the VAT cut meant an extra £5 in consumers' pockets each week which made an important difference to most people, even if “it may not matter to the people on the opposite bench”.
Mr Cameron said the VAT cut had been “condemned by retailers, attacked as ‘fatuous’ by the former trade minister, and ridiculed by shoppers. Worse than that, it is adding £12.5 billion to Government debt”.
Mr Brown claimed the Conservative Party was divided on the issue, quoting Kenneth Clarke, the former Tory Chancellor rumoured to be returning to the Shadow Cabinet, who had supported the VAT cut.
The Prime Minister accused the Conservatives of being “out of touch with the rest of the world” and insisted that the Government was providing “real help now” to struggling companies through plans to secure lending to small businesses, announced earlier. “We won’t walk by on the other side,” he said.
David Cameron claimed the Government had copied Tory policies and that Gordon Brown was “running round like a headless chicken” making “one bogus announcement after another”. He challenged the Prime Minister to retract his claim he had abolished boom and bust and, responding to Mr Brown’s “do nothing” jibe, said the Government was “achieving nothing”.
Mr Brown hit back: “Nobody is copying the Conservative party economic policies. No-one except him is proposing we cut public spending at this time”.
In a session dominated by the economy, Mr Brown was also asked about the conflict in Gaza. The Labour backbencher Jeremy Corbyn suggested that Israel may have been involved in war crimes in its military action in Gaza. The Prime Minister said Britain was working hard to resolve the situation and had played a key role in negotiating the UN resolution.
The Prime Minister was asked why the ministerial register of interests had not been published, after The Times revealed it has been delayed for 18 months, and responded that it would be published.

Sam Coates's blog about Westminster, politics and spin
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I think if we really did have a headless chicken running the country things would be in a better state than they are now.
mark, bury st edmunds, uk
As Gordon Brown said this is a global financial crisis which is hitting countries all over the world. The blame cannot lie with Gordon Brown. Why start shedding the blame now he is Prime Minister? Not much was said when he was chancellor. The economy was dreadful under the conservatives!!
Lottie, Birmingham,
first and foremost it is the british peoples fault for falling for the lies that this government has told for the last 12 years.
tony blairs a charming guys, lets all ignore that his chancellor is quietly unpicking all the good work the tories took 18 years to achieve.
will, grimsby, uk
Any organisation in the private sector that I know has reduced costs by at least 10% going into 2009. A 10% cut in state waste - sorry spending would give us back roughly £65 billion pa. Yet Yvette Cooper expects praise for reducing spending by £5 billion over 3 years or 0.25% pa
Mike, London,
Mr Brown has his words, such as Global to cover his monumental mistakes over the last 11 years. It is no good blaming the Tories'cos they are not in power and if they have a good idea Brown pinches it.The bankers are responsible for most of the problems but Brown spent all our money. he saved nil.
Earl Lavender, cirencester, England
You can't buy yorself out of a recession!
Ian, London, England
Greed, in the boardrooms of banks in the USA and worldwide, is the sole reason for this worldwide crisis.
Not the Republican administration or any other government.
The banks must be held to account, they got us into this mess they must now get us out.
Ray, Worcester, UK
Brown sowed the seeds of the current situation, whilst he was chancellor, by destroying the pension system, selling off the UK's gold reserves at a ludicrously low price and borrowing exstensively during a boom. Yet, he still tries to claim that the 'good' times were all of his making.
Tom, Princes Risborough,
2 years ago he was talking about the economic miracle that he had us believe started in 1997, now this is nothing to do with him, it's a global problem. Who sold UK gold reserves off cheap, oversaw record levels of personal debt, frittered away 3G licence money, cocked up the new GP payment scheme?
Tim, Cambridge, UK
As a profession that has partial VAT exemption, the change in rates has been an onerous burden that we could have done without. It has made very little difference in terms of savings for the consumer but has taken us over a month to sort out.
P Lewis, Northampton,
If Brown had left things as they were when he inherited the system from Ken Clarke, this calamity would not have occurred. It would have been seen coming.
He was warned repeatedly by the Lib Dems & the Tories 4 years ago of the huge risk of all our debt.
"No. You are wrong & I am right." he said!
Phil, Preston,
I do not know how the PM can continue to say the Tories are a do nothing party when his latest measure to help businesses by loan guarantee is virtually a replica of the Tories national loan scheme idea. I,m sure the electorate will catch on eventually to Labour tactics
Robert, Caen, France
It seems to me that Brown's taunts are there to mask the fact that he really doesn't have much of a clue what to do about the economy. I don't hear anything convincing coming from him about the real roots of this economic crisis - he just seems determined to blame anybody and anything but himself.
Lorne, Ayr, UK
I'm proposing that we cut public spending!
Stuart, Chichester, England