Page last updated at 11:45 GMT, Wednesday, 12 October 2011 12:45 UK

PMQs: Cameron and Miliband clash over economy

David Cameron and Ed Miliband have clashed over the government's economic strategy during prime minister's question time.

On 11 October 2011, as UK unemployment reached a 17-year high, the Labour leader told the prime minister the latest figures showed "his plan isn't working".

Unemployment rose by 114,000 between June and August to 2.57 million. The unemployment total for 16-24 year olds hit a record high of 991,000, a jobless rate of 21.3%.

Mr Cameron said the figures were "very disappointing" but stressed that the government "will do everything it possibly can to help get people into work".

He added: "I accept we have got to do more to get our economy moving, to get jobs for our people, but we must not abandon a plan which has given us record low interest rates."

But Mr Miliband hit back claiming Mr Cameron did not have a credible plan for growth.

"It's his failure that means today in Britain we have nearly one million young people out of work. Why doesn't he accept some responsibility for doing something about it?" he exclaimed.

He called on the prime minister to cut VAT cut and introduce a bankers' bonus tax to invest in helping young people get back into work.

Mr Cameron said he accepted responsibility "for everything that happens in our economy".

He told MPs the government had cut petrol tax and corporation tax, reformed the planning system, created 22 enterprise zones and forced banks to start lending.

"He wants us to change course on reducing our deficit. If we change course on reducing our deficit we'd end up with interest rates like Portugal, like Spain, like Italy, like Greece and we'd send our economy into a tail-spin," he argued.

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