Under the Tories, working people will have seen the biggest fall in wages since 1874 – says Balls

Today, Ed Balls will outline in a speech how Labour differ from the Tories on the economy, in particular focussing on the dismal economic forecast for many if the Conservatives were to win next the general election next May.

As part of the Labour leaderships’ series of speeches over the summer, which they’ve dubbed ‘The Choice’, Balls will speak in marginal constituency Bedford about the Tories inability to handle the economy in a fair way. He will say that  although statistics might suggest that the economy is doing better, this doesn’t translate into most peoples’ lived experiences:

“While David Cameron and George Osborne complacently claim the economy is now fixed, the truth is most people are worse off under the Tories. For working people, average wages after inflation are down by over £1600 a year since 2010.

And new analysis today from the House of Commons Library shows that by 2015 working people will have seen the biggest fall in wages of any Parliament since 1874. It’s also set to be the first time since the 1920s that people are worse off at the end of the Parliament than they were at the beginning.

From a Conservative-led Government that promised to make working people better off back in 2010, this is a dismal record of failure.”

Balls will stress that in light of these facts “working people can’t afford five more years of the same old Tory economics”. The Conservatives plans for a second-term in government, he will say, aren’t in any way related to creating fairer economy:

“We know the Tories’ real economic plan – it’s to cut taxes at the top and hope that wealth will just trickle down. 
Having already cut taxes for millionaires in this Parliament, they’re chomping at the bit to do it again if they win the election – cutting the top rate of tax for people earning over £150,000 again from 45p to 40p. Another tax cut worth £3 billion for the richest one per cent of our country.

“We know George Osborne wanted to cut it down to 40p in his omnishambles Budget two years ago. David Cameron won’t rule out doing it. And Boris Johnson and the right are now demanding it. This is the real Tory agenda for a second term. The same old Tories standing up for the few, while everyone else is left behind. And it shows just how much is at stake next year.”

In contrast, Balls will say Labour remain best placed to rebalance the economy, stating that:

“Labour’s economic plan will make Britain better off and fairer for the future – by making long-term changes to create an economy that works for all working people. It’s a radical and credible plan based on big reform, not big spending.”

He will set out the details of Labour’s economic plan to make Britain better off and fairer for the future and deliver rising living standards for working people”

To detail how this will work, Balls will remind us of Labour’s extensive economic proposals to date – including their plans to expand free childcare, freeze energy bills, introduce a lower 10p starting rate of tax, increase the minimum wage, and boost apprenticeships.

Presumably in an effort to shake off the common misconception that Labour are anti-business, Balls will also reiterate Labour promise to back British business by cutting business rates, maintaining the most competitive corporation tax in the G7 and establishing a proper British Investment Bank.

After laying out the difference between the Labour and the Tory approaches to the economy, Balls will stress the importance of  the two parties’ economic proposals when it comes to the general election next year:

 “This is the stark choice we face next year. A choice between a Labour plan to make Britain better off and fairer for the future – with rising living standards for the many, not just a few at the top – or more of the same from the same old Tories.

More good jobs with Labour or a race to the bottom on wages under the Tories. The books balanced fairly with Labour or ordinary families hit first under the Tories. Reforms to make Europe work better for Britain with Labour, or sleepwalking to the EU exit door and putting millions of jobs at risk under the Tories. Tax cuts for millions on middle and low incomes with Labour or another tax cut for millionaires under the Tories.”