Labour rejects public spending rise

Labour has ruled out an immediate increase in public spending if it wins the next general election.

The party's national policy forum voted against a motion calling for an already announced pledge to match the day-to-day spending plans of the coalition for 2015-16 to be abandoned.

Shadow chancellor Ed Balls said Labour policy was based on "big reform, not big spending".

The motion was defeated by 125 votes to 14, in a weekend of policy discussions.

'Difficult decisions'

Mr Balls said: "The national policy forum has this weekend agreed a policy programme that is radical and credible and based on big reform, not big spending.

"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.

"Party members have endorsed the tough fiscal position [Labour leader] Ed Miliband and I have set out. We will match the government's overall day-to-day spending totals for 2015-16.

"And 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 by reforming our economy for the long term and reversing David Cameron's top rate tax cut for the top 1% of earners."

First draft

BBC political correspondent Alan Soady says the leadership has seen off an attempt to force Labour to increase public spending. Some members of the forum wanted the party to commit to an emergency budget shortly after taking office.

Motions to commit Labour to new spending on housing and school meals were withdrawn at the forum in Milton Keynes.

The forum backed policy papers which are the first draft of Labour's election manifesto.

Earlier, Mr Miliband said there would be no return to the tax and spend policies of past Labour governments.

Conservative Culture Secretary Sajid Javid said all Mr Miliband offered was "more wasteful spending, more borrowing and more taxes".

Labour rejects public spending rise

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