Ed Miliband's "lost decade" speech will be planted firmly in the scare category

Labour leader will warn of a Japan-style crisis.

The government's economic plan is failing, and the UK faces a "lost decade", Ed Miliband will say in a speech in Birmingham today.

He will warn that the UK could go the way of Japan during the 1990s unless something is done to turn it around, and will argue that there's a way this can be done.

Japan never quite recovered from its burst bubble of 1989 - and the crisis brought its economy to a standstill for about 10 years, as it watched rivals China and South Korea expand. Miliband's message - which also will stress that Britain is in the slowest recovery for 100 years - is planted firmly in the scare category. It will also echo Vince Cable, who warned of a "lost decade" back in December.

In an interview with the Times Miliband said:

This Government is now leading Britain into that lost decade. They’re shrugging their shoulders. They have run out of ideas. They are resigned. It is One Nation Labour’s task to show people it does not have to be this way. Not promising overnight answers. Not promising that things will be easy.

He will also attempt to make a distinction between public faith in David Cameron and public faith in politics in general:

I know that however discredited, divided and damaging this Government is, I will not assume that their unpopularity will mean people turn to Labour. Indeed, many people will believe that the failure of this Government means they should give up on politics altogether.

...and lay the groundwork for rebuilding trust in Labour:

I have sought to understand why people left Labour. From banking regulation to immigration to Iraq, I have been clear about what we got wrong.

Miliband's alternative measures, he told the Times, will include an apprenticeship programme, reforming banks and the energy market, a 10p income tax, and a "real jobs guarantee" for the young. 

Ed Miliband. Photograph: Getty Images
Grant Shapps on the campaign trail. Photo: Getty
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Grant Shapps resigns over Tory youth wing bullying scandal

The minister, formerly party chairman, has resigned over allegations of bullying and blackmail made against a Tory activist. 

Grant Shapps, who was a key figure in the Tory general election campaign, has resigned following allegations about a bullying scandal among Conservative activists.

Shapps was formerly party chairman, but was demoted to international development minister after May. His formal statement is expected shortly.

The resignation follows lurid claims about bullying and blackmail among Tory activists. One, Mark Clarke, has been accused of putting pressure on a fellow activist who complained about his behaviour to withdraw the allegation. The complainant, Elliot Johnson, later killed himself.

The junior Treasury minister Robert Halfon also revealed that he had an affair with a young activist after being warned that Clarke planned to blackmail him over the relationship. Former Tory chair Sayeedi Warsi says that she was targeted by Clarke on Twitter, where he tried to portray her as an anti-semite. 

Shapps appointed Mark Clarke to run RoadTrip 2015, where young Tory activists toured key marginals on a bus before the general election. 

Today, the Guardian published an emotional interview with the parents of 21-year-old Elliot Johnson, the activist who killed himself, in which they called for Shapps to consider his position. Ray Johnson also spoke to BBC's Newsnight:


The Johnson family claimed that Shapps and co-chair Andrew Feldman had failed to act on complaints made against Clarke. Feldman says he did not hear of the bullying claims until August. 

Asked about the case at a conference in Malta, David Cameron pointedly refused to offer Shapps his full backing, saying a statement would be released. “I think it is important that on the tragic case that took place that the coroner’s inquiry is allowed to proceed properly," he added. “I feel deeply for his parents, It is an appalling loss to suffer and that is why it is so important there is a proper coroner’s inquiry. In terms of what the Conservative party should do, there should be and there is a proper inquiry that asks all the questions as people come forward. That will take place. It is a tragic loss of a talented young life and it is not something any parent should go through and I feel for them deeply.” 

Mark Clarke denies any wrongdoing.

Helen Lewis is deputy editor of the New Statesman. She has presented BBC Radio 4’s Week in Westminster and is a regular panellist on BBC1’s Sunday Politics.