PARTY leader Ed Miliband yesterday set out how a Labour government would ‘deal with the deficit’.
In a speech delivered at the New Economic Foundation think-tank in central London, Miliband proceeded ‘to lay out the five principles which underpin my approach’.
He said: ‘Our first principle is that we will set a credible and sensible goal for dealing with our debts.
‘This starts with getting the national debt falling as a proportion of national income as soon as possible within the next Parliament …
‘The second principle is that a successful deficit-reduction strategy depends upon reform of our economy … the facts are now in: it turns out that tackling the cost of living crisis is in fact essential for tackling the deficit.’
He said that Labour has ‘a different economic strategy building a higher wage, higher skill economy, not the low-wage, low-skill economy we have.’
Miliband added: ‘Our third principle is that Britain needs common sense spending reductions, not slash and burn.
‘And we have already set out ways in which we can save money … and our zero-based review of every pound spent by government will be coming forward with reports for savings across Whitehall and the public sector between now and the election.’
He said: ‘Outside protected areas, for other departments, there will be cuts in spending. And we should plan on it being for every year until the current budget is in balance …
‘These changes are necessary to balance the books …
‘Our fourth principle is that we should ensure that those with the broadest shoulders bear the greatest burden so that we can meet our mission of a country that works for working people …
‘So we will levy a Mansion Tax on the most expensive homes over £2 million and clamp down on tax avoidance to help fund the NHS.
‘We will have a tax on bankers’ bonuses to help fund a programme to put young people back to work.
‘We will close boardroom tax loopholes to abolish the bedroom tax.
‘We will not go ahead with a further cut in Corporation Tax so we can instead cut business rates for small firms.
‘And we will reverse the millionaires’ tax cut and ensure that those with incomes over £150,000 pay the 50p tax rate to contribute to deficit reduction.’
He said: ‘We want successful entrepreneurs and those who do well to be rewarded.’
Miliband went on to say: ‘Our fifth principle is that this party will only make new commitments that are credible, costed and funded, not unfunded promises … And none of our manifesto commitments will require additional borrowing.’
