Balls shows he's no "deficit denier" at the TUC

The shadow chancellor was heckled as he warned that Labour would cut too.

Those who denounce Ed Balls as Labour's "deficit-denier-in-chief" should have watched his speech to the TUC conference this morning. While the shadow chancellor made a typically persuasive case for short-term stimulus, he went on to use some of the toughest language we've heard from him on the need for spending cuts and other austerity measures to reduce the deficit in the long-term. To cries of "rubbish!" from trade union delegates (a rebuke that won't have troubled Balls in the slightest), he said:

We must be honest with the British people that under Labour, there would have been cuts, and that – on spending, pay and pensions – there will be disappointments and difficult decisions from which we will not flinch.

Balls went on to reaffirm the position he outlined in January - that Labour, based on current trends, will have to keep "all these cuts". He could not "make any commitments now that the next Labour government will be able to reverse particular tax rises or spending cuts." Unlike Nick Clegg, he quipped, "we will not make promises we cannot keep".

When challenged in the Q&A session on Labour's failure to oppose George Osborne's public sector pay freeze (and the 1% cap from 2013), Balls replied that "you can't say pay before jobs, we've got to say jobs before pay"  ("shame on you!", one delegate shouted). Asked if the party would take the railways back into public ownership (a demand that prompted the loudest cheers of the session), Balls replied that the policy would cost billions and so the answer was 'no'.  "I’m not sure when we come into government in 2015 that expenditure on that scale is going to be a priority," he said.

Balls's speech was a reminder of why the next election will, in some respects, be more difficult for Labour than the Tories. Osborne likes to say that the coalition is cleaning up "Labour's mess" but, if elected in 2015, Labour will need to clean up his. When the Chancellor delivered his "emergency Budget" in June 2010, the newly-established Office for Budget Responsibility forecast a deficit of £37bn (2.1% of GDP) for 2014-15. But the failure of Osborne's plan to deliver growth (indeed, its success in delivering recession) means that, according to the latest independent forecasts, the next government will inherit a deficit of £96.1bn (5.8%), a figure that is only likely to rise as growth remains anaemic or non-existent.

Given these fiscal constraints, the biggest choice facing Balls and Ed Miliband is whether to pledge to stick to the Tories' spending plans for the first few years, as Labour did in 1997, or to offer a distinct alternative.

Shadow chancellor Ed Balls told the TUC, "we will not make promises we cannot keep". Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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New Digital Editor: Serena Kutchinsky

The New Statesman appoints Serena Kutchinsky as Digital Editor.

Serena Kutchinsky is to join the New Statesman as digital editor in September. She will lead the expansion of the New Statesman across a variety of digital platforms.

Serena has over a decade of experience working in digital media and is currently the digital editor of Newsweek Europe. Since she joined the title, traffic to the website has increased by almost 250 per cent. Previously, Serena was the digital editor of Prospect magazine and also the assistant digital editor of the Sunday Times - part of the team which launched the Sunday Times website and tablet editions.

Jason Cowley, New Statesman editor, said: “Serena joins us at a great time for the New Statesman, and, building on the excellent work of recent years, she has just the skills and experience we need to help lead the next stage of our expansion as a print-digital hybrid.”

Serena Kutchinsky said: “I am delighted to be joining the New Statesman team and to have the opportunity to drive forward its digital strategy. The website is already established as the home of free-thinking journalism online in the UK and I look forward to leading our expansion and growing the global readership of this historic title.

In June, the New Statesman website recorded record traffic figures when more than four million unique users read more than 27 million pages. The circulation of the weekly magazine is growing steadily and now stands at 33,400, the highest it has been since the early 1980s.