Ed Miliband has accused David Cameron of trying to “magic away” the problems of struggling families by claiming credit for falling oil prices.
The Labour leader said workers would be “choking on their cornflakes” after the Prime Minister urged firms to give pay rises with the windfall from cheaper oil.
He warned that the Tories’ only plan was slashing state spending further, and accused Mr Cameron of cowardice for dodging televised General Election debates.
In a speech to the Fabian Society’s conference, Mr Miliband said: “Week after week, this Government has shown a tin ear for what is really going on.
“They have denied the cost of living crisis. They have rubbished the idea that people are worse off.
“Even this week George Osborne was saying we were set, under him, to be the richest country in the world and that his economic victory is complete.
“But we wake up this morning to hear the Prime Minister thinks Britain needs a pay rise. People across the country will have been choking on their cornflakes.
“This is someone who has spent months and years telling us there was no cost of living crisis, and then if there ever was one, it had been fixed. You couldn’t make it up.”
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