Ed Balls to warn government of potential double dip recession

Labour leadership candidate Ed Balls is set to warn the coalition government that plans for drastic cuts may cause a double dip recession.  Mr. Balls will give a keynote speech in the City of London today in which he will describe the government’s austerity programme as “economically unsafe”. He is expected to accuse Chancellor George Osborne of “ripping out the foundations of the house just as the hurricane is about to hit.” 

Mr Balls will say:-

"By ripping away the foundations of growth and jobs in Britain, David Cameron, Nick Clegg and George Osborne are not only leaving us badly exposed to the new economic storm that is coming, but are undermining the very goals of market stability and deficit reduction which their policies are designed to achieve."

The shadow education secretary will seek to strengthen his challenge against the Miliband brothers and distance himself from his reputation as a Gordon Brown loyalist by portraying himself as the “change candidate".  He plans to encourage Labour to challenge the consensus and will say:

"We must have the courage to change, the confidence to know that our values, when applied to the challenges of Britain in the modern world, can reconnect with those who have turned their backs on New Labour."
 

As the leadership race reaches its final stages, all five candidates areattempting to boost their campaigns.

Labour and trade union members are due to receive their ballot papers next week with the result of the election announced on 25th September, the first day of the Labour conference.