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Labour conference: Ed Balls calls for stamp duty break Labour conference: Ed Balls calls for stamp duty break
(about 4 hours later)
By Brian Wheeler BBC News, Political reporter, in ManchesterBy Brian Wheeler BBC News, Political reporter, in Manchester
Shadow chancellor Ed Balls is to call for 100,000 new affordable homes and a two-year stamp duty holiday for first-time buyers to kick-start the economy.Shadow chancellor Ed Balls is to call for 100,000 new affordable homes and a two-year stamp duty holiday for first-time buyers to kick-start the economy.
Mr Balls will say the £3-4bn needed to fund the move should come from the sale of the 4G mobile spectrum.Mr Balls will say the £3-4bn needed to fund the move should come from the sale of the 4G mobile spectrum.
He will use his keynote speech to Labour's conference in Manchester to call for "urgent" action on growth.He will use his keynote speech to Labour's conference in Manchester to call for "urgent" action on growth.
It comes amid a row between Labour's leadership and the unions over backing for a public sector pay freeze.It comes amid a row between Labour's leadership and the unions over backing for a public sector pay freeze.
Len McCluskey - leader of one of Labour's biggest financial backers Unite - said the party should be on the side of ordinary workers, saying leader Ed Miliband had "got it wrong".Len McCluskey - leader of one of Labour's biggest financial backers Unite - said the party should be on the side of ordinary workers, saying leader Ed Miliband had "got it wrong".
"People are fed up with this path to poverty and if Labour follows a watered down version of the coalition's policies, it will lose the next election.""People are fed up with this path to poverty and if Labour follows a watered down version of the coalition's policies, it will lose the next election."
Mr Miliband said Labour could not be dominated by special interests such as the trade unions.Mr Miliband said Labour could not be dominated by special interests such as the trade unions.
'Urgent action'
The row is expected to flare on the conference floor on Monday when union leaders will urge the party to condemn the public sector pay freeze.The row is expected to flare on the conference floor on Monday when union leaders will urge the party to condemn the public sector pay freeze.
In his speech, Mr Balls will attack the coalition's austerity programme, saying: "If the economy's not growing, you can't get the deficit down." 'Urgent action'
And he will call for "urgent action" to kick-start growth, using the "windfall" generated by the forthcoming sale of 4G radio frequencies to scrap stamp duty for two years on properties worth £250,000 or less. In his speech, Mr Balls will attack the coalition's austerity programme, saying: "This is the fundamental truth: if more people are on the dole, not paying taxes, you can't get the deficit down.
"If businesses are going bust, not hiring new workers, you can't get the deficit down.
"If the economy's not growing, you can't get the deficit down."
He will call for "urgent action" to kick-start growth, suggesting a "clear and costed plan" to use the proceeds from the forthcoming sale of 4G radio frequencies to scrap stamp duty for two years on properties worth £250,000 or less.
"With this one-off windfall from the sale of the 4G spectrum, let's cut through the dither and rhetoric and actually do something," he will say. "Not more talk, but action right now.
"Let's commit that money from the 4G sale and build over the next two years: 100,000 new homes - affordable homes to rent and to buy - creating hundreds of thousands of jobs and getting the construction industry moving again."Let's commit that money from the 4G sale and build over the next two years: 100,000 new homes - affordable homes to rent and to buy - creating hundreds of thousands of jobs and getting the construction industry moving again.
"Add to that a stamp duty holiday for first-time buyers, and we can deliver real help for people aspiring to get on the property ladder.""Add to that a stamp duty holiday for first-time buyers, and we can deliver real help for people aspiring to get on the property ladder."
The 4G auction will sell chunks of radio spectrum to support future mobile services, which will allow users to download data such as music and videos at much faster speeds.The 4G auction will sell chunks of radio spectrum to support future mobile services, which will allow users to download data such as music and videos at much faster speeds.
In 2000, the previous Labour government raised £22.5bn to help pay off the national debt with the proceeds of the 3G spectrum auction.In 2000, the previous Labour government raised £22.5bn to help pay off the national debt with the proceeds of the 3G spectrum auction.
The 4G auction could raise between £3bn and £4bn, according to social enterprise charity the National Endowment for Science, Technology and the Arts (Nesta), although telecoms watchdog Ofcom has not confirmed that figure.The 4G auction could raise between £3bn and £4bn, according to social enterprise charity the National Endowment for Science, Technology and the Arts (Nesta), although telecoms watchdog Ofcom has not confirmed that figure.
The shadow chancellor will defend his plan to review all public spending if Labour wins the next election, saying the country faces "tough choices" in the years ahead.The shadow chancellor will defend his plan to review all public spending if Labour wins the next election, saying the country faces "tough choices" in the years ahead.
'Growth first'
"The longer this government staggers on with a failing economic plan, the worse it will get and the harder the job will be.
"Hard times will last longer than all of us hoped. And we cannot promise to put everything right straight away."Hard times will last longer than all of us hoped. And we cannot promise to put everything right straight away.
GMB unhappiness
"Of course we'll make different choices - we'll do things in a fairer and more balanced way and put jobs and growth first," he will tell Labour activists."Of course we'll make different choices - we'll do things in a fairer and more balanced way and put jobs and growth first," he will tell Labour activists.
GMB leader Paul Kenny turned his fire on the shadow chancellor on Sunday, saying: "He would give an aspirin a headache, wouldn't he?" But GMB union leader Paul Kenny turned his fire on the shadow chancellor on Sunday, saying: "He would give an aspirin a headache, wouldn't he?"
In a speech to delegates on Monday, Mr Kenny will say Labour must go into the next election with a leadership the public can connect with, not those "damaged or dented by past mistakes which have not been owned up to." In a speech to delegates on Monday, Mr Kenny will say Labour must go into the next election with a leadership the public can connect with, not those "damaged or dented by past mistakes which have not been owned up to".
At a fringe meeting on Monday, he plans to read out a dossier of errors he will claim the shadow chancellor made when he was in government.At a fringe meeting on Monday, he plans to read out a dossier of errors he will claim the shadow chancellor made when he was in government.