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Ed Balls speech: a right and left perspective

Ed Balls today did exactly what he was supposed to do: he offered something by way of a plan to boost jobs, created a soundbite on Labour’s economic plan (“fiscal responsibility in the national interest”), apologised for what Labour got wrong in the past (75p pension rise, the abolition of the 10p tax rate), put the boot in Osborne’s unworking plan and ended on  high note – as opposed to Vince Cables pessimistic one during the Liberals’ conference (a point picked up by George Eaton earlier).

But will he convince? To the right (of the party and beyond) it will have provided no challenge to the theory that Labour is a party fit to govern only when there is money to spend, and that the Tories (or fiscal conservatives on the Labour Right) are the choice of the day for austerity measures. Balls outlined some interesting ways to promote growth and jobs, recognised shortfalls such as cutting the future jobs fund, but admitted a Labour government would not be able to reverse every Tory spending cut.

To the Left, his opposition to strike action over pensions will smack of a cuts agenda apologism. Further, his statement on sold-off banks’ windfalls, which he initially sounded sceptical of, before stating that he will use any to reduce the deficit, will appear very unradical, and at worst comfortable with the failing national banking system. As Eaton says: “some on the left would prefer a radical commitment to mutualise the banks and turn them into engines of growth.”

Overall the speech spelt out some interesting plans, proved that Labour was thinking ahead, and that under his direction it will not introduce a Tory-lite programme. For example the one-year small firms national insurance tax holiday for taking on extra workers seems like a very sensible policy as a means of countering the terrible mess being created by the Tory-led government. But despite the glimmer of hope, it is only relatively better, and it is not a radical overhaul. In some places it is ridiculously unambitious given the state we’re in, and in other places it appears unwilling to challenge at all.

But it will curry favour, will attract attention, and it will prove wrong the objection that Labour are playing a long term game to keep mum until the next election.

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