Kendall has “no problem” with running a surplus – and says Labour must be clearer on deficit

Leadership hopeful Liz Kendall has today said she is not opposed to running a budget surplus, as has been proposed by George Osborne. However, she added that more needs to be known about the Chancellor’s plan to enshrine in law a surplus during ‘normal’ economic periods.

According the Guardian, Kendall said:

“Labour should never be in favour of budget deficits for the sake of it. I have no problem aiming for a surplus. We must learn the lessons of what happened after the 2010 election and make sure our economic policy is defined by us and not by the Conservatives.

“We lost the last election because we were not trusted with the economy or with taxes and this time we have to be crystal clear what our deficit policy is as early as possible.”

She raised concerns that the Tories’ proposals did not specify whether a surplus would have to be run every year, and that the requirements, which are likely to be set out in the upcoming Budget, would need to be studied closely.

Kendall is the first Labour figure to set out a position on the issue, with Shadow Chancellor Chris Leslie dismissing the fiscal mandate as a “distraction”. The move will be seen as a further sign that Kendall wishes to set herself out as the most fiscally prudent of the leadership candidate. In particular, her comments that Labour need to be “crystal clear” about deficit policy are a sign of moving away from the party’s stance on the economy under Miliband.