This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-22748914

The article has changed 12 times. There is an RSS feed of changes available.

Version 2 Version 3
Labour will axe rich OAP fuel payments - Ed Balls Labour will axe rich elderly fuel payments - Ed Balls
(about 1 hour later)
Labour would cut winter fuel payments for the UK's richest pensioners as part of a "fairer approach to deficit reduction", Ed Balls is due to say. Labour would cut winter fuel payments for the UK's richest elderly people as part of a "fairer approach to deficit reduction", Ed Balls is due to say.
The shadow chancellor is expected to announce the move in a speech promising an "iron discipline on spending" should Labour return to power in 2015.The shadow chancellor is expected to announce the move in a speech promising an "iron discipline on spending" should Labour return to power in 2015.
It would currently affect about 600,000 pensioners who pay higher and top rates of income tax - saving about £100m. It would currently affect about 600,000 people over 61 who pay higher and top income tax rates - saving about £100m.
But a Treasury source described the pledge as "utterly meaningless".But a Treasury source described the pledge as "utterly meaningless".
'Difficult inheritance''Difficult inheritance'
Mr Balls is due to tell an audience at Thomson Reuters headquarters in London that Chancellor George Osborne's economic policies have "failed catastrophically", on growth, jobs and deficit reduction.Mr Balls is due to tell an audience at Thomson Reuters headquarters in London that Chancellor George Osborne's economic policies have "failed catastrophically", on growth, jobs and deficit reduction.
He will say the policies will leave a future Labour government with "a very difficult inheritance", and will promise "tough deficit reduction plan", coupled with more action to strengthen the economy.He will say the policies will leave a future Labour government with "a very difficult inheritance", and will promise "tough deficit reduction plan", coupled with more action to strengthen the economy.
"The situation we will inherit will require a very different kind of Labour government to those which have gone before," he is due to say."The situation we will inherit will require a very different kind of Labour government to those which have gone before," he is due to say.
"We will inherit a substantial deficit. We will have to govern with much less money around. We will need to show an iron discipline."We will inherit a substantial deficit. We will have to govern with much less money around. We will need to show an iron discipline.
"This is the hard reality. The last Labour government was able to plan its 1997 manifesto on the basis of rising departmental spending in the first years after the election. The next Labour government will have to plan on the basis of falling departmental spending.""This is the hard reality. The last Labour government was able to plan its 1997 manifesto on the basis of rising departmental spending in the first years after the election. The next Labour government will have to plan on the basis of falling departmental spending."
Mr Balls will also urge the government to heed the advice of the International Monetary Fund (IMF) which says the UK should increase infrastructure spending in the near term to boost growth.Mr Balls will also urge the government to heed the advice of the International Monetary Fund (IMF) which says the UK should increase infrastructure spending in the near term to boost growth.
The BBC's political editor Nick Robinson says that although the saving from the winter fuel allowance pledge is small, it is meant as a symbol of his acceptance that day to day Whitehall spending will continue to fall under Labour.The BBC's political editor Nick Robinson says that although the saving from the winter fuel allowance pledge is small, it is meant as a symbol of his acceptance that day to day Whitehall spending will continue to fall under Labour.
The winter fuel allowance has proved a controversial measure because it is paid to all state pensioners, regardless of income. The winter fuel allowance has proved a controversial measure because it is paid regardless of income.
Prime Minister David Cameron pledged during the last general election campaign not to cut welfare measures directed at pensioners.Prime Minister David Cameron pledged during the last general election campaign not to cut welfare measures directed at pensioners.
But the Conservatives have come under pressure from their Liberal Democrat coalition partners, who want to see benefits for wealthy pensioners addressed before deeper cuts to the wider welfare budget can be considered. But the Conservatives have come under pressure from their Liberal Democrat coalition partners, who want to see benefits for wealthy older people addressed before deeper cuts to the wider welfare budget can be considered.
In April Work and Pensions Secretary Iain Duncan Smith suggested that pensioners who did not need the extra cash should consider returning the benefit. In April, Work and Pensions Secretary Iain Duncan Smith suggested that those who did not need the extra cash should consider returning the benefit.
But he stressed that it should be their own choice and other government figures admitted there was no clear mechanism for allowing benefits to be returned.But he stressed that it should be their own choice and other government figures admitted there was no clear mechanism for allowing benefits to be returned.
A Treasury source told the BBC that the pledge would save just 0.5% of the welfare budget.A Treasury source told the BBC that the pledge would save just 0.5% of the welfare budget.
"Ed Balls has just confirmed he wants to borrow and spend even more now - exactly what got us into this mess in the first place," the source said."Ed Balls has just confirmed he wants to borrow and spend even more now - exactly what got us into this mess in the first place," the source said.
Welfare spending accounts for almost a third of annual government spending, making it a focus of the government's austerity plans.Welfare spending accounts for almost a third of annual government spending, making it a focus of the government's austerity plans.
Although universal benefits for pensioners have been left alone, other benefits, such as child benefit have been reformed to reduce the amount of money being paid to richer families. Although universal benefits for elderly people have been left alone, other benefits, such as child benefit have been reformed to reduce the amount of money being paid to richer families.
And Mr Duncan Smith has initiated one of the biggest shake-ups of the benefits system in decades.And Mr Duncan Smith has initiated one of the biggest shake-ups of the benefits system in decades.
That includes the introduction of universal credit and benefit caps designed to encourage more people on benefits to return to work.That includes the introduction of universal credit and benefit caps designed to encourage more people on benefits to return to work.