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Big spending will not solve Britain's problems, Ed Miliband to tell Labour Big spending will not solve Britain's problems, Ed Miliband to tell Labour
(about 11 hours later)
Ed Miliband will tell Labour's national policy forum on Saturday that the party cannot rely on its traditional high-spending approach to social problems if it wins the general election.Ed Miliband will tell Labour's national policy forum on Saturday that the party cannot rely on its traditional high-spending approach to social problems if it wins the general election.
In a speech intended to address Tory claims that Labour cannot be trusted with the economy, the Labour leader will stress that balancing the books will be a key element of the party's plans for the five years after 2015.In a speech intended to address Tory claims that Labour cannot be trusted with the economy, the Labour leader will stress that balancing the books will be a key element of the party's plans for the five years after 2015.
But he will also insist that the need to adapt to austerity has made Labour "more radical and more ambitious" and that the party is still committed to fundamentally reshaping the economy.But he will also insist that the need to adapt to austerity has made Labour "more radical and more ambitious" and that the party is still committed to fundamentally reshaping the economy.
Miliband will argue that, although problems such as low pay and poor conditions have got worse since the coalition came to power, "they started before the recession and the answer cannot be our traditional answer of spending to fix the problem".Miliband will argue that, although problems such as low pay and poor conditions have got worse since the coalition came to power, "they started before the recession and the answer cannot be our traditional answer of spending to fix the problem".
Addressing the meeting in Milton Keynes, Miliband will say: "You and I know we won't have the money. For all of the cuts, for all of the pain under this government, Britain still has a deficit to deal with and a debt to pay down.Addressing the meeting in Milton Keynes, Miliband will say: "You and I know we won't have the money. For all of the cuts, for all of the pain under this government, Britain still has a deficit to deal with and a debt to pay down.
"That's why our programme starts with a binding commitment to balancing the books in the next government."That's why our programme starts with a binding commitment to balancing the books in the next government.
"We will get the national debt falling as soon as possible in the next parliament. And we will deliver a surplus on the current budget.""We will get the national debt falling as soon as possible in the next parliament. And we will deliver a surplus on the current budget."
Highlighting proposals such as those for a higher minimum wage, freezing energy bills and action to end the abuse of zero-hours contracts, Miliband will argue that the party has "moved on from New Labour" without returning to the policies of old Labour.Highlighting proposals such as those for a higher minimum wage, freezing energy bills and action to end the abuse of zero-hours contracts, Miliband will argue that the party has "moved on from New Labour" without returning to the policies of old Labour.
"Instead, our programme for government is more radical and more ambitious in the change we seek, crafted for the age we are living in and the challenges we face," he will say."Instead, our programme for government is more radical and more ambitious in the change we seek, crafted for the age we are living in and the challenges we face," he will say.
"Moving on from a time when rising inequality was just a fact of life – or when we acted as if there is nothing we could do about markets that aren't fair or aren't working. Not seeing big spending as the answer. Not going back to make do and mend.""Moving on from a time when rising inequality was just a fact of life – or when we acted as if there is nothing we could do about markets that aren't fair or aren't working. Not seeing big spending as the answer. Not going back to make do and mend."
In his speech Miliband will also say that Labour has defied the predictions made four years ago, when it was widely assumed the party would be out of power for at least two terms.In his speech Miliband will also say that Labour has defied the predictions made four years ago, when it was widely assumed the party would be out of power for at least two terms.
Miliband will say that Labour has reached a "new settlement", which takes it on from the New Labour era of Tony Blair, Gordon Brown and Peter Mandelson without harking back to old Labour.
The party will offer "a new direction for Britain" and will be ready to govern in a radically different way from the Blair and Brown administrations of 1997/2010, taking on fundamental problems which were not tackled by New Labour and building "a wholly new economy fit for the 21st century", he will say.
He will say that a changed Labour must be more ambitious in seeking to deliver greater equality and fairness by reshaping fundamental elements of the economic system, in areas ranging from the banks to energy markets, skills, housing and pay.
He will say that the key "generational question" next May will be which party can "change the country so that it works not just for a few at the top but for ordinary families once again", and will argue that it is Labour, rather than the coalition parties, who have an answer.
Aides said that Miliband's "new settlement" marks a shift in direction comparable to the establishment of New Labour in the mid-1990s, when Mr Blair jettisoned sacred cows like nationalisation and committed the party to the market economy.
Now the party can win the election, he will say, "because of the journey we have been on in the last four years. Not losing touch, divided and drifting away from the British people – as we have been in previous times in opposition – but rooting the programme we agree this weekend in the everyday lives of the people of this country."Now the party can win the election, he will say, "because of the journey we have been on in the last four years. Not losing touch, divided and drifting away from the British people – as we have been in previous times in opposition – but rooting the programme we agree this weekend in the everyday lives of the people of this country."
Among the policies due to be confirmed at the three-day meeting is a plan to allow public-sector operators to bid for rail franchises as they come up for renewal. But on Friday, concerns about the proposals were already being raised by the Rail Delivery Group (RDG), a body representing train companies.Among the policies due to be confirmed at the three-day meeting is a plan to allow public-sector operators to bid for rail franchises as they come up for renewal. But on Friday, concerns about the proposals were already being raised by the Rail Delivery Group (RDG), a body representing train companies.
"Any proposal for fundamental change to the railway suggests that it is failing, which is not true," said Martin Griffiths, the RDG chairman."Any proposal for fundamental change to the railway suggests that it is failing, which is not true," said Martin Griffiths, the RDG chairman.
"As yet, there is no detail on how the idea of a public-sector bidder would work on a level playing field with private sector bidders when government is both referee and player in the competition for franchises.""As yet, there is no detail on how the idea of a public-sector bidder would work on a level playing field with private sector bidders when government is both referee and player in the competition for franchises."