The Prime Minister has been accused of using his attack on Jimmy Carr's tax arrangements as a distraction from the G20 summit's failure to secure a route out of the eurozone's economic crisis.

Labour leader Ed Miliband mocked the Prime Minister for choosing to speak out about the avoidance scheme used by Mr Carr, but refusing to condemn Conservative-supporting Take That star Gary Barlow, who was also accused of using a complex scheme to avoid paying millions of pounds to HM Revenue and Customs.

Mr Miliband told the House of Commons: "No wonder he was looking for something else to talk about during the summit.

"Of course he found it – the tax affairs of Jimmy Carr.

"On Wednesday, he couldn't have been clearer: Jimmy Carr was morally wrong.

"And on what he called the 'Gary Barlow situation' he said this, and I'm not making this up ...'as soon as I get in front of a computer I will have a look at it'.

He continued to Labour laughter: "On Thursday, the now familiar sound of screeching tyres could be heard, the U-turn was well and truly under way.

"He said this: 'I'm not going to give a running commentary on different people's tax affairs, I don't think that would be right'."

The Prime Minister responded by attacking the tax arrangements of former London Labour mayor Ken Livingstone.

l Cross-Border banking union, closer fiscal integration and the possibility of a debt redemption fund will be on the agenda at an EU summit in Brussels this week.

Cyprus became the fifth eurozone member to seek a bail-out just hours after Spain formally requested help for its banks yesterday.

It will apply for EU funds to raise at least £1.5 billion.