Miliband challenged over tax policy

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Labour must come clean about its plans to raise taxes on middle income earners, David Cameron has said.

The prime minister quoted deputy Labour leader Harriet Harman as saying people on middle income salaries must contribute more through their taxes.

The "squeezed middle will be squeezed more", Mr Cameron said, and asked Labour leader Ed Miliband "to tell us which people are going to pay which taxes?".

Mr Miliband said it was his job to ask the questions, and attacked the prime minister for presiding over a cost of living crisis, during the final PMQs before the summer recess on 16 July 2014.

"The reality is you have the worst record on living standards of any prime minister in history," the Labour leader told Mr Cameron.

He said average pay has fallen by £1,600 a year since 2010, and claimed only the wealthiest in society are feeling the benefits of the economic recovery.

Mr Cameron said it was "disappointing" that pay is not rising faster but noted that "more people are now in work than ever before in our history".

He pointed to government efforts to help people with the cost of living, including cuts to council tax and petrol duty, and increases in the married couples' allowance.

"Labour would put a tax on your jobs, on your mortgage, on your home and on your pension," he said.

Mr Miliband said the prime minister "has nothing to say about the cost of living crisis".

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