Ed Miliband's speech on the economy: five key points

The Labour leader adapts Obama's "growing from the middle out" and calls for a "recovery made by the many, not just a few".

Ed Miliband will head to Bedford today to deliver the major speech on the economy that I first reported on The Staggers earlier this week, followed by a joint Q&A with Ed Balls at a training centre. 

It's unclear whether the speech will contain any new tax or spending commitments (although Jon Cruddas promised Newsnight last night that it would feature "a major, substantive piece of economic policy"), it will, according to pre-released extracts from Labour, offer "a choice between two different visions of our economy". 

"The Conservative vision of a race to the bottom in wages and skills, rewarding those at the very top but leaving everyone else squeezed as never before. Or the One Nation Labour vision." In an interview in today's Guardian, Miliband elaborates on this theme.

So, ahead of the speech at 10:45, here are five of the key points from the pre-released extracts and the interview. 

1. You've never had it so bad

Miliband's decision to make the speech in Bedford is an allusion to Harold Macmillan's famous 1957 address in the same town in which the Conservative prime minister declared: "you've never had it so good". 

Today, the Labour leader will say, millions across Britain fear "they will never have it so good again". 

Small businesses are working harder than ever before. People are working harder than ever before. But for far too many, wages are falling and prices are rising.

"Far from feeling they have never had it so good, millions across Britain today fear 'they will never have it so good again'. The question that people ask me the most is 'how do we turn this round?'"

It this bleak outlook - the Resolution Foundation reported yesterday that living standards will not return to pre-recession levels until at least 2023 - that will shape Miliband's policy priorities. 

2. Policy without a price tag

With less money around to spend and Labour wisely holding back its tax and spending commitments until the state of the public finances is clear, Miliband will outline alternative means of building a fairer economy and society. Returning to the territory of "predistribution" (although probably without using that word), he will say that a Labour government would take action to:

- "break the stranglehold of the big six energy suppliers

- stop the train company price rip-offs on the most popular routes

- introduce new rules to stop unfair bank charges

- cap interest on payday loans."

3. Miliband channels Obama: "growing from the middle out"

At yesterday's PMQs, Miliband channelled Ronald Reagan, asking David Cameron his own version of the US President's famous question to Jimmy Carter in the 1980 presidential debate: "Are you better off now than you were four years ago?" 

"At the end of the parliament, will living standards be higher or lower than they were at the beginning?", Miliband asked the PM.

In his Guardian interview, Miliband borrows from another US President, Barack Obama, and offers his account of what Obama calls "growing the economy from the middle out". He says: 

"We need a recovery made by the many, not just a few at the top. A recovery made by building, not squeezing, the middle. The government's economic strategy consists of squeezing the middle further, a race to the bottom and trickle down from the top."

Miliband notes that past recoveries have been driven by the middle class. 

"Henry Ford used to say: 'I have to pay my workers enough so they can buy the cars they are producing.' There was a British equivalent in relation to Macmillan: the houses were built, but people had the wages to buy or rent the houses."

4. Mansion tax: we're looking into it

Asked by the Guardian whether he will adopt a version of Vince Cable's "mansion tax", Miliband replies: "We have said we will look at the idea of mansion tax. Ed Balls was right to say that and we have said we would work with the government to make it happen."

The confirmation that Labour is exploring a mansion tax as part of its policy review is encouraging. Here at the NSwe've long argued that the burden of taxation should be shifted from income towards wealth and assets (see NS editor Jason Cowley's 2010 cover story on the subject). Wealth taxes are harder to avoid than those on income (even the most determined tax avoider cannot move his or her mansion to Geneva), are progressive (wealth is even more unequally distributed than income), and benefit the economy by shifting investment away from unproductive assets and towards wealth-creating industries. For the psephologically minded, it's also worth noting that they're popular. A Sunday Times/YouGov poll found that 63 per cent of the public (including 56 per cent of Tories) support a mansion tax, with just 27 per cent opposed.

5. Cameron's "global race" is a "race to the bottom"

Ever since his address at last year's Conservative conference, no David Cameron speech or interview has been complete without a reference to "the global race" facing Britain. But Miliband will denounce the Prime Minister's vision as one defined by a "race to the bottom". 

"David Cameron talks about a global race. And it is essential that we can compete with China and India and others. But I have to tell you, Britain won't win a race to the bottom by competing in the world as a low skill, low wage economy.

"We were promised that we could have growth and a lower deficit. In fact, we've had almost no growth and the deficit is rising again. But David Cameron's failure is not simply a failure of economic management or judgement. It is a failure to understand how wealth is created and an economy succeeds.

"We cannot go on with an approach that simply promises more of the same: year after year of squeezed living standards for the majority of working people. Because it's wrong for them and because it's wrong for our economy."

Ed Miliband will call for "a recovery made by the many, not just a few" in his speech on the economy in Bedford. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Brexit would jeopardise the rights of working women

Europe isn’t perfect, but without it millions of women and millions of trade unionists would be at risk of Tory deregulation. 

One of the most important arguments in favour of staying in the EU is the protections that membership affords working people.

Whether it’s equal rights for part-time workers, the agency workers directive or limits on the length of the working week, we all owe the European Union and its Social Charter – campaigned for by a generation of trade unionists from across the continent – a great deal.

Outside of Europe British workers would find themselves worse off both in terms of their pay packets and the rights that they rely on. Add to that the reality that outside the EU risks being a place with lower public spending thanks to a troubled economy and rising privatisation of our public services, you can understand why the vast majority of British trade unions are recommending that their members vote to remain.

And for working women, the choice is starker still, because women have that much more to lose when rights and protections are stripped from the workplace.

Just think what EU law guarantees for all working people through the social charter, and how losing these rights (and putting the Brexit bunch in charge) would impact on things we’ve all come to rely on like maternity pay and guaranteed holiday pay.

Think about how much harder the struggle for equal pay will be if it’s not underpinned by EU law.

Think about how a Boris Johnson led Tory government – outside of Europe, on the fringes of global influence and under increasing pressure from UKIP to withdraw even further from the modern world – would attack your working conditions.

The Tory right – fresh from dragging our country out of Europe and away from regulations that help keep us safe at work aren’t going to stop there. Their next port of call will be other sources of what they deem “red tape” – like equal rights legislation that helps ensure women have all the same opportunities afforded to their male colleagues.

That’s something that matters to me as a trade unionist and as a woman.

It’s something that matters to me as Assistant General Secretary of a union with more than a million female members – UNISON, the biggest membership organisation for women in the country.

It matters to me as President of the TUC – when most trade unionists are women and when we have the first female TUC General Secretary in Frances O’Grady.

But most of all it matters to me because of the stories of all of the women I’ve met and am proud to represent who benefit every single day from Europe-wide protection of their rights.

What we face is the risk of losing those rights to a cynical and desperate campaign based around false promises and rhetoric from the Brexiteers. What we need in this campaign is some straightforward honesty. So here’s my position in a single sentence: Europe isn’t perfect, but without it millions of women and millions of trade unionists would be at risk.

I won’t stand for that. Neither should you. And neither should they either.

Liz Snape is Assistant General Secretary of UNISON and President of the TUC