Ed Balls 'Daunted' by Chancellor Task

BBC: Ed Balls has told me that he is "daunted" at the prospect of becoming Chancellor of the Exchequer, given the scale of cuts a future Labour government may have to make.

I put it to the shadow chancellor that he would have to make spending cuts deeper than those made by any government since the war (other, that is, than the coalition itself) - deeper than those made by Labour Chancellor Denis Healey in the 1970s and Margaret Thatcher's Tory government in the 1980s.

The Institute for Fiscal Studies estimates that Labour's plans would imply about £18bn cuts to departmental budgets, since spending on pensions, welfare and debt interest is rising at the moment.

Despite this Mr Balls insisted that the government was wrong to save £200m this year (and £400m in the year after) by refusing to give pay rises to 600,000 NHS staff already receiving automatic pay increments. » | Nick Robinson, Political editor | Thursday, March 13, 2014

Vince Cable: I Would Work with Labour to Increase Tax on Wealthy

THE SUNDAY TELEGRAPH: Vince Cable has admitted that he is of the 'centre left' as he appeared to welcome Labour overtures to work together on increasing taxes for the wealthy.

Sitting side by side with Ed Balls, the shadow chancellor, on a television studio sofa, Mr Cable laughingly dismissed as "flattery" the Labourman's call for him to become leader of the Liberal Democrats.

He said that he would be happy to work with Mr Balls on issues such as raising taxes from the better off, including the imposition of a "mansion tax" on the most expensive properties.

But the Business Secretary, who is far more popular than Nick Clegg among grass roots Liberal Democrats, denied that he had ambitions to become leader. And he insisted that he was working well with Mr Clegg and his Conservative Coalition colleagues.

Asked about his idea for a mansion tax, which Labour now supports, he said: "I was delighted that Ed Balls has signed up. I have not been embarrassed to call myself a person of the centre left. » | Rosa Prince, Online Political Editor | Sunday, September 09, 2012