Labour pledge of no ‘additional borrowing’

Ed Miliband on campaign trail.
Ed Miliband on campaign trail.

Labour says it will guarantee that each of its policies will be fully funded and require no additional borrowing, as it launches its manifesto.

Leader Ed Miliband will rule out a “shopping list of spending policies” and promise a Labour government would cut the deficit every year reports BBC.

The Conservatives would go on a “reckless spending spree”, he will say.

Tory Treasury Minister David Gauke said Mr Miliband had “no plan to clear the deficit” and would have to borrow more.

“Even Ed Miliband’s own campaign chief admits Labour will borrow more to pay for their unfunded spending promises,” he argued.

The first page of Labour’s manifesto, Mr Miliband will say, “sets out a vow to protect our nation’s finances; a clear commitment that every policy… is paid for without a single penny of extra borrowing”.

Mr Miliband will add: “In recent days you have seen the Conservatives throwing spending promises around with no idea of where the money is coming from, promises which are unfunded, unfair and unbelievable.”

With political parties under increasing pressure to explain how they will fund their pledges, the Institute for Fiscal Studies complained on Sunday that they were making “lots of promises” without producing much detail on how to deliver them.

But Labour is hoping to position itself as “the party of responsibility” for the public finances. It is aiming for a budget surplus “as soon as possible in the next parliament”.