Balls backs Tory cuts

In a grandstanding speech before Labour conference delegates in Manchester Mr Balls promised to rebuild Britain's crumbling economy, with plans from infrastructure to housing - but stuck to his guns on slashing the welfare state despite staunch opposition from trade unionists.

Labour in power would not flinch from making difficult decisions, he said.

"Hard times will last longer than all of us hoped. And we cannot promise to put everything right straight away.

"That is why, however difficult this may be, when we don't know what we will inherit, we cannot make any commitments now that the next Labour government will be able to reverse particular tax rises or spending cuts."

Among his assurances, Mr Balls promised 100,000 new homes, creating 150,000 jobs in the construction industry with more than 500,000 in the wider supply chain.

Olympic Delivery Authority chairman Sir John Armitt is to devise an independent commission on long-term infrastructure, such as power generation and rail and airport capacity.

And the economy could get a short-term boost by spending the anticipated £4 billion windfall from the sell-off next year of the 4G mobile phone spectrum to boost housing and construction, while a temporary stamp duty holiday to first-time home-buyers would revive the sluggish housing market.

Mr Balls insisted the Labour Party was united as united as ever, with support from the "vast majority" of union members.

But Labour MP Jeremy Corbyn told the Star the shadow chancellor's show was "more than disappointing."

"Ed Miliband appears to support pay freezes which in reality is a pay cut.

"We need a radical alternative of social justice and growth," he said.

Meanwhile Unite leader Len McCluskey, GMB leader Paul Kenny and RMT general secretary Bob Crow all shared the MP's dismay.

Mr McCluskey earlier received a standing ovation when he called on Labour to be "bold" and he pressed for a British Investment Bank.

He took a swipe at the party leadership by saying there should be no "false choice" of jobs or wages. "It is time for Labour to once and for all turn its back on the neoliberalism of the past.

"Reject the siren voices from those whose policies and philosophy have been discredited, and embrace the radical alternative the country wants."

Mr Kenny said Mr Balls "should have been more ruthless about closing the take loopholes which tax billions per year out of the UK Exchequer."

He said: "The out of touch elite decision makers are wrong.

"Public and private-sector workers did not made the bankers' recession. They should not be made to pay for it."

And Mr Crow said: "Labour and the government are now positioned like Tweedledum and Tweedledee - whichever one you vote for you end up with the same kick in the teeth for the very people that make this country tick and that is a disgrace."

tonyp@peoples-press.com