Ed Miliband: Labour will deal with the deficit and balance the books – but we will never return to the 1930s
Ed Miliband delivered a major speech on the economy this morning on how the next Labour government will build a strong economic foundation by dealing with the deficit and balancing the books – but never going down the Tory road to take Britain back to 1930s spending levels which existed before the NHS. This will be great news for residents in South Basildon and East Thurrock who are suffering under this failed Tory-led coalition.
Ed set out a tough and balanced One Nation Labour approach to dealing with the deficit based on five principles:
1. Setting a credible and sensible goal to balance the books and get the national debt falling as soon as possible within the next Parliament.
Not having a fiscal plan which sets a target of a 35 per cent state, putting public services and productive investment at risk.
2. Recognising that Britain will only be able to deal with the deficit by tackling the cost-of-living crisis.
Not allowing welfare spending to rise and tax revenues to fall because of low wages, insecure jobs, housing shortages and social failure.
3. Making common sense spending reductions with departmental spending falling and using money better by devolving power, breaking down old bureaucracies, and rebuilding public services around early intervention.
Not cutting spending to 35 per cent of national income that will lead to disintegrating public services and a permanent cost-of-living crisis because we won’t be investing in the skills needed for good jobs and healthy revenues.
4. Protect everyday working people by ensuring those with the broadest shoulders bear the greatest burden.
Not cutting taxes for the wealthiest while asking everyday working people to pay more.
5. Promising new policies only when they are fully funded, like Labour’s £2.5 billion time to Care Fund for the NHS, so that they do not require any additional borrowing
Not making commitments that depend on borrowing or promising unfunded tax cuts skewed to the wealthiest that will eventually be paid for by bigger cuts to public services or increases in VAT.
Labour will make the changes needed to get our country back on the right road, to growth and prosperity.