Speeches

George Osborne is desperate to stop talking about the cost-of-living crisis on his watch – Balls

Ed Balls MP, Labour’s shadow chancellor, responding to George Osborne’s speech on the economy, said:

“George Osborne is desperate to stop talking about the cost-of-living crisis on his watch. But that won’t stop working people from doing so as they are on average £1600 a year worse off under the Tories and prices are still rising faster than wages.

“Nor will the Chancellor admit the reason why he is being forced to make more cuts is because his failure on growth and living standards has led to his failure to balance the books by 2015.

“This failure means Labour will have to make cuts and in 2015/16 there will be no more borrowing for day-to-day spending. But we will get the deficit down in a fair way, not give tax cuts to millionaires. And we know that the way to mitigate the scale of the cuts needed is to earn and grow our way to higher living standards for all.

“The social security bill is rising under George Osborne, but the best way to get it down for the long-term is to get people into work and build more homes. The Tories should back our compulsory jobs guarantee for young people and the long-term unemployed. And in tough times it cannot be a priority to continue paying the winter fuel allowance to the richest five per cent of pensioners.

“What we need is Labour’s plan to earn our way to higher living standards for all, tackle the cost-of-living crisis and get the deficit down in a fairer way.”

New Year’s Message from Ed

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Ed Miliband speaking to a live audience in Ipswich, 8th April 2013

“The starting point is we need a welfare system that works. We are very clear about what welfare reform means. Welfare reform means that we should get the 155,000 people who have been unemployed over two years over the age of 25 back to work. Labour is the only party in this country that says we’re actually going to do that. We’re going to offer them jobs and say you’ve got a responsibly to take it.

We think we’ve got to get the 77,000 young people who have been unemployed for more than a year, back to work. Labour is the only party who says we’re actually going to do that by putting them back to work. Do you know what? Those numbers are going up and up under this government because of their economic failure. That’s where you start.

Secondly, you’ve got to make work pay. You don’t make work pay but cutting taxes for millionaires and cutting tax credits at the same time so you’ve got to make sure that tax credits are there for people to make work pay.

Thirdly, contribution does matter. I’ve said in the past that when it comes to housing, if you are working and playing a part in your community, you should get extra points. In terms of the housing list, that is the right thing to do. That is what welfare reform looks like to me.

Here’s the problem with this government, they are not just heartless they are hopeless too. Because actually their welfare reform doesn’t work. They say they want to make work pay – Mr Osborne was repeating this on Tuesday . What he doesn’t admit is that his striver’s tax that is coming in today – the limit to 1% of the increase in social security payments – is hitting precisely the people he says he wants to help: the people on tax credits and others.

They’re hopeless too because their bedroom tax is not just cruel and unfair but actually is going to force people into the private sector, which will cost more. And universal credit it in chaos.

But now we come to the wider issue. Because there are two different views you can take on this: do you try and unite your country and bring it together or do you exploit tragedies? Like the Philpott tragedy. And the right place for Mr Philpott is behind bars. But do you exploit the deaths of six children to try and make a political point about the welfare system? And at the same time say to people actually this is somehow a commentary about so many people on benefits. Of course there is a minority of people on benefits who should be working and aren’t. Labour’s the party that’s going to get them back to work. But what I’m not going to do is engage in nasty, divisive politics.

I have got a very clear message for the British people on this: we can either succeed as a country by uniting, by using the talents of everybody, by using the talents of everybody out of work, by putting them back into work and making sure there is real responsibility. Or you can say let’s divide, let’s set one group of people against another – that’s not how we won the Second World War, that’s not how we succeeded as a country after the Second World War. Now if people want that nasty divisive politics they can have it from the Conservative Party, they’re not going to get it from me. I’m a unifier, not a divider.

That is what One Nation Conservatives used to believe. And frankly, you know what, I think One Nation Conservatives will be turning in their grave at what’s happened to today’s Conservative Party. They would be ashamed of what’s happened to this Conservative party. Because they have made a political decision, it’s not about the national interest, it’s a political decision to divide this country. Well I’m not having it. I’m not doing it. That’s not my politics.”

A clearer statement of the official position.

Ed at the People’s Policy Forum in Brum

Watch Ed Miliband’s full speech to the People’s Policy Forum in Birmingham. To join the debate at http://www.yourbritain.org.uk

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