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 8 Version 9
Ed Balls: Labour would axe wealthy pensioners' fuel cash Ed Balls: Labour would axe wealthy pensioners' fuel cash
(about 1 hour later)
Labour would cut winter fuel payments for the UK's richer older people if they won the next general election, shadow chancellor Ed Balls has said.Labour would cut winter fuel payments for the UK's richer older people if they won the next general election, shadow chancellor Ed Balls has said.
It would affect about 600,000 people over 61 who pay higher and top income tax rates - saving about £100m.It would affect about 600,000 people over 61 who pay higher and top income tax rates - saving about £100m.
Mr Balls said it would be "completely irresponsible" for Labour to pledge higher spending in 2015-6, given the likely "bleak" state of the finances.Mr Balls said it would be "completely irresponsible" for Labour to pledge higher spending in 2015-6, given the likely "bleak" state of the finances.
He suggested curbs on new free schools and police commissioners to save money.He suggested curbs on new free schools and police commissioners to save money.
Mr Balls told an audience at Thomson Reuters headquarters in London that Chancellor George Osborne's economic policies had "failed catastrophically" on growth, jobs and deficit reduction.Mr Balls told an audience at Thomson Reuters headquarters in London that Chancellor George Osborne's economic policies had "failed catastrophically" on growth, jobs and deficit reduction.
Asked whether, if elected, Labour would stick with coalition spending plans in 2015-6, he said he could not predict what the financial situation would be in two years time. Asked whether, if elected, Labour would stick with coalition spending plans in 2015-6, he said he could not predict what the financial situation would be in two years' time.
But he said he would show an "iron discipline" and, at this stage, expected to "work within" the coalition's current forecasts for the first year after the next general election.But he said he would show an "iron discipline" and, at this stage, expected to "work within" the coalition's current forecasts for the first year after the next general election.
'Symbolic''Symbolic'
He said the coalition's current policies would leave a future Labour government with "a bleak inheritance", and promised a "tough deficit reduction plan", coupled with more action to strengthen the economy.He said the coalition's current policies would leave a future Labour government with "a bleak inheritance", and promised a "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 said."The situation we will inherit will require a very different kind of Labour government to those which have gone before," he said.
"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." "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."
Chancellor George Osborne will announce the details of future spending plans for 2015-6 - the period immediately before and after the expected date of the next election - later this month and Labour has been under pressure to do the same.Chancellor George Osborne will announce the details of future spending plans for 2015-6 - the period immediately before and after the expected date of the next election - later this month and Labour has been under pressure to do the same.
Mr Balls said he would not do so but insisted the party's manifesto at the next election would include "tough fiscal rules".Mr Balls said he would not do so but insisted the party's manifesto at the next election would include "tough fiscal rules".
The shadow chancellor said he would be making it clear to colleagues that their focus should be on "re-prioritising money within and between budgets" rather than additional spending.The shadow chancellor said he would be making it clear to colleagues that their focus should be on "re-prioritising money within and between budgets" rather than additional spending.
Mr Balls said the winter fuel allowance was a "vital" source of help for pensioners on low and middle incomes but in the current climate Labour had to strike the right balance between "universal and targeted support".Mr Balls said the winter fuel allowance was a "vital" source of help for pensioners on low and middle incomes but in the current climate Labour had to strike the right balance between "universal and targeted support".
"So at a time when the public services that pensioners and others rely on are under strain, it can no longer be a priority to continue paying the winter fuel allowance to the wealthiest pensioners," he said."So at a time when the public services that pensioners and others rely on are under strain, it can no longer be a priority to continue paying the winter fuel allowance to the wealthiest pensioners," he said.
Important symbolImportant symbol
Mr Balls also urged 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 also urged 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 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 older people 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.
A Treasury source told the BBC the pledge was "utterly meaningless" and would save just 0.5% of the welfare budget.A Treasury source told the BBC the pledge was "utterly meaningless" and 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.
Benefits shake-upBenefits shake-up
Dot Gibson, from the National Pensioners' Convention, criticised Labour's plan: "Why don't they just tax these people if they want money from them? Dot Gibson, from the National Pensioners' Convention, said the move could set a "very dangerous" precedent and call into question other historic entitlements such as free bus passes for pensioners and even universal access to the NHS.
"If they don't want their fuel allowance they can give it back. But the fact is that as soon as you start undermining the whole system of people paying in during their working lives and being entitled to the things they pay in for, you undermine everybody." "It is more to do with politics than economics," she told the BBC News Channel.
"It is breaking with many of the traditions of Labour over the years to start means-testing universal benefits."
And, writing in the Guardian, former Labour minister Peter Hain said the "problem with Labour cutting winter fuel for rich is where does attack on universalism stop?"And, writing in the Guardian, former Labour minister Peter Hain said the "problem with Labour cutting winter fuel for rich is where does attack on universalism stop?"
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 based on age 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 based on age have been left alone, other benefits, such as child benefit have been reformed to reduce the amount of money being paid to richer families.
Mr Balls also said Labour's 2015 manifesto would ask tough questions about spending in a range of areas.Mr Balls also said Labour's 2015 manifesto would ask tough questions about spending in a range of areas.
"With primary school places in short supply in many parts of the country, and parents struggling to get their children into a local school, can it really be a priority to open more free schools in 2015 and 2016 in areas with excess secondary school places," he said."With primary school places in short supply in many parts of the country, and parents struggling to get their children into a local school, can it really be a priority to open more free schools in 2015 and 2016 in areas with excess secondary school places," he said.
"When we are losing thousands of police officers and police staff, how have we ended up spending more on police commissioners than the old police authorities, with more elections currently timetabled for 2016?"When we are losing thousands of police officers and police staff, how have we ended up spending more on police commissioners than the old police authorities, with more elections currently timetabled for 2016?