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Labour leaders win crucial policy forum vote on spending plans Labour leaders win crucial policy forum vote on spending plans
(about 5 hours later)
An attempt to commit Labour to abandoning coalition spending plans for 2015-16 was heavily defeated on Sunday at the end of a policy conference described as a "radical rethink" of what the party stands for.An attempt to commit Labour to abandoning coalition spending plans for 2015-16 was heavily defeated on Sunday at the end of a policy conference described as a "radical rethink" of what the party stands for.
Ed Balls, the shadow chancellor, said the vote showed there was widespread support in the party for a manifesto based on "big reform, not big spending" and that members endorsed the tough fiscal position adopted by the leadership.Ed Balls, the shadow chancellor, said the vote showed there was widespread support in the party for a manifesto based on "big reform, not big spending" and that members endorsed the tough fiscal position adopted by the leadership.
The vote came on the last day of a three-day meeting of Labour's 198-member national policy forum (NPF), held in private in Milton Keynes to pull together conclusions from its policy review.The vote came on the last day of a three-day meeting of Labour's 198-member national policy forum (NPF), held in private in Milton Keynes to pull together conclusions from its policy review.
Over the past four years about 200,000 policy submissions have been received and 1,300 amendments were drawn up before the final meeting. Most of the conference was taken up with activists and members of the shadow cabinet working in groups to thrash out compromise positions in multiple policy areas. Over the past four years, about 200,000 policy submissions have been received and 1,300 amendments were drawn up before the final meeting. Most of the conference was taken up with activists and members of the shadow cabinet working in groups to thrash out compromise positions in multiple policy areas.
A full report of what was agreed at the NPF will be published at the time of Labour's annual conference in the autumn, and it will form the foundation of the party's election manifesto. A full report of what was agreed at the NPF will be published at the time of Labour's annual conference in the autumn and it will form the foundation of the party's election manifesto.
On Sunday one delegate forced a vote on a demand for an emergency budget in 2015 to allow a Labour government to rip up the coalition's spending plans for 2015-16. Members, however, voted by 125 to 14 in favour of the leadership's proposal to accept the coalition's plans for day-to-day spending – but not necessarily capital spending – in the first year of the next parliament. On Sunday, one delegate forced a vote on a demand for an emergency budget in 2015 to allow a Labour government to rip up the coalition's spending plans for 2015-16. Members, however, voted by 125 to 14 in favour of the leadership's proposal to accept the coalition's plans for day-to-day spending – but not necessarily capital spending – in the first year of the next parliament.
"The Labour party knows that this Conservative-led government's failure to balance the books in this parliament means we will have to make difficult decisions after the next election," Balls said."The Labour party knows that this Conservative-led government's failure to balance the books in this parliament means we will have to make difficult decisions after the next election," Balls said.
"Party members have endorsed the tough fiscal position Ed Miliband and I have set out. We will balance the books, deliver a surplus on the current budget and get the national debt falling as soon as possible in the next parliament. But we will get the deficit down more fairly.""Party members have endorsed the tough fiscal position Ed Miliband and I have set out. We will balance the books, deliver a surplus on the current budget and get the national debt falling as soon as possible in the next parliament. But we will get the deficit down more fairly."
Many of the ideas at the heart of the NPF programme – such as freezing energy bills, allowing the public sector to bid to run rail franchises, boosting competition between banks and devolving spending power to cities – do not involve extra state spending.Many of the ideas at the heart of the NPF programme – such as freezing energy bills, allowing the public sector to bid to run rail franchises, boosting competition between banks and devolving spending power to cities – do not involve extra state spending.
As such, Jon Cruddas, the head of the policy review, said the NPF amounted to "a turning point in the history of the Labour party".As such, Jon Cruddas, the head of the policy review, said the NPF amounted to "a turning point in the history of the Labour party".
The party had adopted a policy programme that involved "a fundamental rethinking of the basic assumptions around which social democracy has been built for 30 years", he said.The party had adopted a policy programme that involved "a fundamental rethinking of the basic assumptions around which social democracy has been built for 30 years", he said.
"It is centred on big reforms which do not mean increased expenditure. The economic situation means that the time for make-do-and-mend spending solutions has passed. Compensating people for a system which isn't working won't cut it any more."It is centred on big reforms which do not mean increased expenditure. The economic situation means that the time for make-do-and-mend spending solutions has passed. Compensating people for a system which isn't working won't cut it any more.
"Big state, top down solutions just won't work because to transform our country we have to help people feel like active participants, not helpless observers.""Big state, top down solutions just won't work because to transform our country we have to help people feel like active participants, not helpless observers."
Cruddas said Labour had united around "a radical rethink about what it is for". It had shown "real maturity, but not at the expense of radical reforms that will rebuild Britain", he said.Cruddas said Labour had united around "a radical rethink about what it is for". It had shown "real maturity, but not at the expense of radical reforms that will rebuild Britain", he said.