Tuesday, November 5, 2013

Ed Miliband: Only Labour can secure 'recovery for all'

Ed Miliband: Only Labour can secure 'recovery for all'


Ed Miliband is to pledge to restore the "broken link" between living standards and growth, saying only Labour can deliver an economic recovery for all.
Ed Miliband on a recent visit to a shop owner in north London
Mr Miliband will say the UK is a country where a "few at the top do well" while the rest are struggling
The Labour leader will renew his attack on the UK's leading energy firms, saying price rises since 2011 have directly boosted their bottom line.
And he will say water firms must offer special tariffs for the low-paid.
At the same time, ministers have written to water firms urging them to keep bills at "affordable" levels.
Labour has made the cost of living its central economic argument since Mr Miliband announced plans for a 20-month energy price freeze from May 2015 should Labour win the next election.
Four of the so-called "big six" energy firms have announced price rises of between 8% and 10%, taking the cost of an annual dual fuel energy bill above £1,400 in many cases.
'Workable'
In a speech in London, Mr Miliband will say he will force a parliamentary vote on the price freeze plan on Wednesday and challenge Conservative and Lib Dem MPs to back it or set out an alternative.
"It is workable," he will say. "It will happen if Labour wins the next election. And Conservative and Liberal Democrat MPs could vote for it.
"If they line up against it, the British people will know the truth. This government is on the side of the big energy companies not hard-pressed families."
Research by Labour, he will argue, suggests that more than half of the annual increase in fuel bills since 2011 has gone directly to support the profits and costs of the leading energy firms.
The "big six" say they have been forced to raise prices because of the increase in the wholesale price of energy, rising transmission and distribution costs and environmental and social obligations imposed by successive governments.
They say profits account for about 5% of the average bill and insist they would reduce bills if the cost of green levies - which ministers have pledged to review - were paid out of general taxation instead of being passed onto consumers.
Mr Miliband will say Labour is determined to reform markets "not working in the public interest" - citing a proposed levy on payday lenders, a cap on regulated rail ticket increases, and a crackdown on private rental charges as well as tax breaks for employers to offer a "living wage".
He will also call for extra help for people struggling to pay their water bills. New social tariffs for the low-paid, which were introduced on a voluntary basis last year, should be made compulsory, he will argue.
'Make do and mend'
The government has written to water firms to urge them to "look closely" at the need for future price increases amid concerns about the size of bills and specific plans for a 8% rise from Thames Water, the UK's largest supplier.
"We know that household budgets are under pressure, and keeping water bills affordable is a crucial way we can help hardworking people," Environment Secretary Owen Paterson said.
"That is why we are pressing hard to make sure customers get a fair deal, by encouraging water companies to look closely at any price increases, introduce social tariffs for vulnerable customers and crack down on bad debt."
But Mr Miliband will accuse ministers of a "make do and mend" attitude to the squeeze on family finances - saying prices are continuing to rise faster than wages and the benefits of the recovery are being "scooped by a few at the top".
"We have a prime minister who thinks we can detach our national economic success from the success of Britain's families and businesses," he will say.
"He doesn't seem to realise that there is no such thing as a successful economy which does not carry Britain's families with it and he obviously does not get that the link between growth and living standards is broken."
"We have to permanently restore the link between the growth and living standards for all Britain's working people. This government cannot do it. And the reason is because they are wedded to Britain competing in a race to the bottom."
The government has said the energy price freeze is a con which will force up prices while the CBI business group has warned Mr Miliband and others against "simplistic soundbites" over prices.
David Cameron and Nick Clegg say stronger-than-expected growth, falling unemployment and low interest rates show they have won the argument and Labour's policies would risk higher borrowing and financial instability.
Ministers point to recent action they have taken on the cost of living, such as limiting rail ticket rises, freezing MoT costs and pledging to freeze fuel duty until 2015.

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