Isabel Hardman

Ed Balls gave the clearest indication yet today that his party would vote against the government's plans to cap benefit rises to 1 per cent rather than in line with inflation. Speaking at Treasury Questions, the Shadow Chancellor said: 'It's important for members on both sides of the House know the answers to the questions I asked the Chancellor. First of all, 60 per cent of families hit by his tax and benefit changes are in work. And according to the IFS, as a result of the Autumn Statement measures, a working family, the average one earner couple will be £534 a year worse off by 2015, a working family worse off.

David Cameron paid a rare visit to those hacks that lurk in the Commons press gallery for lunch today. In between cracking jokes about how 'as you know, I have very little control over what Boris does', and tantalising us with references to his EU speech, which is coming 'soon', the Prime Minister made an interesting admission about the way his government is communicating with voters about the difficulties in the economy: 'They are not expecting miracles. I think what people hear is a rather hard, technocratic message. They are not hearing - in fact, this is our fault - they are not hearing enough about why this matters and who this is for.' He did say that the Autumn Statement did demonstrate that the government was on voters' side, with its measures on fuel and personal tax allowances.

Coffee House has learned that a Tory MP is engaged in a fight with the Home Office on safeguards for its proposed 'snooping bill'. The fate of the Draft Communications Data Bill could be decided on Tuesday when a cross-party committee reports back on the legislation. Nick Clegg is already reported to be considering dropping the Liberal Democrats' support for the Bill, and the joint committee's report is expected to take a negative view of the proposals. One Liberal Democrat member, Lord Strasburger, told Home Secretary Theresa May that the proposals for monitoring internet users' records were a 'honeypot for casual hackers, blackmailers, criminals large and small from around the world, and foreign states'.

A Tory MP has accused the Home Secretary of a 'dereliction of duty' that will put the British people at risk. His criticism concerns the way in which she is handling the Abu Qatada case. Theresa May won permission this week to appeal against the Special Immigration Appeals Commission's decision to block the deportation of Abu Qatada to Jordan. But the Home Office has confirmed in a letter to Tory MP Mark Reckless, seen by Coffee House, that it will base its strategy for the case on the judgement of the European Court of Human Rights in Strasbourg, which rejected the Islamist cleric's appeal in May, rather than the test confirmed by the House of Lords in Othman v SSHD 2010, when the House of Lords was at that time the highest court in the land for this country.

In addition to his effective attack on Labour's welfare policy, George Osborne used the Autumn Statement to take on Ed Miliband on another key electoral battleground. Over the past few months, the Labour leader has been trying to convince voters that he has the solution to their cost of living woes. His biggest offer so far has been the Living Wage, which sounds lovely to voters because it involves them being paid more money, but actually doesn't work (something Miliband is clearly sufficiently aware of to stop him pledging to make a living wage mandatory). The coalition already had its own offer in the form of the rise in the personal tax allowance announced in March's budget, but that got little airtime as everyone was upset about pasties and caravans.

The Liberal Democrats are keen to use today to show that Coalition works, but Lord Oakeshott is in a less charitable mood. I've just had a chat with him about George Osborne's explicit rejection of the mansion tax in his statement today as 'intrusive'. The former Lib Dem Treasury spokesman in the House of Lords says: 'I'm not withdrawing anything I have said about the Tories and the mansion tax. Intrusive is exactly what taxes on high-end tax dodgers have to be. George Osborne has performed a screeching handbrake turn on Tory donors' orders.' Nick Clegg's aides have been trying to labour the proalition point in their briefings , though.