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No return to tax and spend era, Ed Miliband tells Labour national policy forum No return to tax and spend, Ed Miliband tells Labour forum
(35 minutes later)
Ed Miliband has said there will be no return to the tax and spend policies of past Labour governments.Ed Miliband has said there will be no return to the tax and spend policies of past Labour governments.
The Labour leader told activists at the party's national policy forum that higher spending would not solve the UK's economic problems.The Labour leader told activists at the party's national policy forum that higher spending would not solve the UK's economic problems.
He said Labour would be more radical than in the past - and there was a need to "fundamentally reshape our economy".He said Labour would be more radical than in the past - and there was a need to "fundamentally reshape our economy".
He said the "basic principle" would be that working people should not find themselves in poverty. He also said the public sector should be able to "challenge" to run rail lines, which were privatised in 1993.
The national policy forum in Milton Keynes will see Labour finalise many of the policies it will argue for at next year's general election.The national policy forum in Milton Keynes will see Labour finalise many of the policies it will argue for at next year's general election.
'Traditional answer''Traditional answer'
Mr Miliband said Labour would offer a "binding commitment to balance the books".Mr Miliband said Labour would offer a "binding commitment to balance the books".
"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," he said."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," he said.
He said the Conservative "recipe for economic success" included low wages, zero-hours contracts and bad terms and conditions for workers.
But he said Britain "will never succeed with a race to the bottom".
"We know, Labour knows, Britain only succeeds when working people succeed and that needs a Labour government," he said.
Mr Miliband said the solution to Britain's economic problems "cannot be our traditional answer of spending to fix the problem".Mr Miliband said the solution to Britain's economic problems "cannot be our traditional answer of spending to fix the problem".
"Unless we fundamentally reshape our economy, we will only ever be able to compensate people for unfairness and inequality," he said."Unless we fundamentally reshape our economy, we will only ever be able to compensate people for unfairness and inequality," he said.
He said Labour would "mend the link between hard work and reward".He said Labour would "mend the link between hard work and reward".
Mr Miliband said Britain could not keep spending billions "subsidising" those on low pay, and said the "living wage is an idea whose time has come".
The living wage - calculated as the basic cost of living in the UK - is more than the current minimum wage.
Mr Miliband said: "For the first time, we will make an offer to every employer in the country - you will get a tax cut on condition that you move to pay the living wage."
He also said Labour would:
Mr Miliband said rail privatisation had too often "put the profits into the private sector and put the risk on to the government".
"We know East Coast [mainline, which has been publicly run since 2009] has worked in public hands, so on the basis of value for money let's extend that idea and let the public sector challenge to take on new lines," he said.
Mr Miliband said Michael Gove, who left the role of education secretary in David Cameron's cabinet reshuffle on Tuesday, had been thrown "overboard" by the prime minister.
He said Labour would end the "centralisation" and "lack of accountability" in Tory education policy.
'No plan''No plan'
Commenting on excerpts from Mr Miliband's speech made available in advance, Conservative cabinet minister Sajid Javid said: "The reality is Labour haven't learnt the lessons from their mistakes. Commenting on advance excerpts from Mr Miliband's speech, Conservative Culture Secretary Sajid Javid said: "The reality is Labour haven't learnt the lessons from their mistakes.
"All Ed Miliband offers is more wasteful spending, more borrowing and more taxes."All Ed Miliband offers is more wasteful spending, more borrowing and more taxes.
"That's exactly what got us into a mess in the first place, and hardworking taxpayers would pay the price."That's exactly what got us into a mess in the first place, and hardworking taxpayers would pay the price.
"It's clearer than ever that Ed Miliband has no long-term plan to secure Britain's future and is just not up to the job.""It's clearer than ever that Ed Miliband has no long-term plan to secure Britain's future and is just not up to the job."