Miliband pledges that a Labour government will scrap the bedroom tax

Labour leader announces: "We’ll scrap the bedroom tax by abolishing the shady schemes of tax loopholes for the privileged few which the Tories keep inventing."

Last month, I revealed that one of Labour's "policy goodies" for conference was likely to be a pledge to scrap the bedroom tax - and Ed Miliband hasn't disappointed.

The party has announced tonight that a Labour government will repeal the measure, which has already forced around half of those tenants affected into rent arrears, a quarter of those for the first time ever. Significantly, rather than merely another policy that Labour would enact "were it in government now", this is a manifesto commitment. 

The National Housing Federation and the National Audit Office have predicted that the measure could end up costing more than it saves by forcing social housing tenants into the more expensive private sector (due to the lack of one-bedroom council properties available) and by increasing rent arrears (which deprives councils of revenue). But in order to demonstrate their commitment to fiscal discipline, Miliband and Ed Balls have still outlined how they will raise the £470m the Treasury claims the measure will save this year.

Labour has said it will: 

- Reverse the £150m tax cut for hedge funds announced in the 2013 Budget.

- Abolish George Osborne's "shares for rights" scheme, which businesses have been using to avoid capital gains tax (shares sold at a profit are exempt) and which the OBR has forecast could cost up to £1bn. 

- Prevent construction firms avoiding tax by falsely listing workers as self-employed. 

Miliband will say tomorrow: 

One Nation Labour is meeting here in Brighton talking about the most important issue facing families in Britain: the cost of living crisis.

Under David Cameron life is getting harder and harder with prices rising faster than wages in 38 of the 39 months that he has been in Downing Street. And working people are an average of almost £1,500 a year worse off under his government.

But we have a Tory-led Government which listens only to a privileged few. Tax cuts for millionaires and tax breaks for hedge funds.

I am leading a different Labour Party, a One Nation Labour Party, which listens to and will stand up for ordinary families like that of Danielle Heard, who I met this week.

We’ll fight for her like she has fought cancer heroically for 14 years. She is disabled and battling cancer again. But now her family must pay £80 a month they can’t afford under this government’s hated bedroom tax.

The bedroom tax – not what the Tories call the spare room subsidy – the bedroom tax: a symbol of an out of touch, uncaring Tory government that stands up for the privileged few – but never for you.

So we will scrap that tax. And what’s more I can tell you how.

We’ll scrap the bedroom tax by abolishing the shady schemes of tax loopholes for the privileged few which the Tories keep inventing. Tax cuts for hedge funds, the billion pound black hole created with a scheme for workers to sell their rights for shares, and by tackling scams which cheat the taxpayer in construction.

That’s what a One Nation Labour government will do. That’s a party that will fight for you.

The Tories will respond by arguing that Labour has abandoned its commitment to fiscal responsibility and returned to its old spending ways. But unlike on other issues, such as the benefit cap, they find themselves on the wrong side of public opinion. A ComRes poll published today by the National Housing Federation (NHF) found that 59% of the public believe the policy should be abandoned, up from 51% when it was introduced in April. Four-fifths of Labour supporters (79%) favour its repeal, along with 65% of Lib Dems and 34% of Tories. 

And one doesn't have to look far for evidence why. As I noted, a survey by the NHF of 51 housing associations found that more than half of those residents affected by the measure (32,432 people), fell into rent arrears between April and June, a quarter of those for the first time ever. 

Ministers have defended the policy, which reduces housing benefit by 14% for those deemed to have one 'spare room" and by 25% for those with two or more, on the basis that it will encourage families to downsize to more "appropriately sized" accommodation. But they have ignored (or at least pretended to ignore) the lack of one bedroom houses available. In England, there are 180,000 social tenants "under-occupying" two bedroom houses but just 85,000 one bedroom properties available to move to. Rather than reducing overcrowding, the policy has largely become another welfare cut, further squeezing families already hit by the benefit cap, the 1% limit on benefit and tax credit increases (a real-terms cut) and the 10% reduction in council tax support. 

The measure is also coming under increasing fire from the Lib Dems. Shirley Williams described it as "a big mistake" at the party's conference and delegates passed a motion calling for "an immediate evaluation of the impact of the policy, establishing the extent to which larger homes are freed up, money saved, costs of implementation, the impact on vulnerable tenants, and the impact on the private rented sector." It also called for "a redrafting of clear housing needs guidelines in association with those representing vulnerable groups including the disabled, elderly and children." 

Whether or not the coalition eventually goes as far as scrapping the measure, to prevent Labour surfing a wave of public outrage, it is hard to see it surviving in its current form. 

Ed Miliband speaks at the TUC conference at the Bournemouth International Centre on September 10, 2013. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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To stop Jeremy Corbyn, I am giving my second preference to Andy Burnham

The big question is whether Andy Burnham or Yvette Cooper will face Jeremy in the final round of this election.

Voting is now underway in the Labour leadership election. There can be no doubt that Jeremy Corbyn is the frontrunner, but the race isn't over yet.

I know from conversations across the country that many voters still haven't made up their mind.

Some are drawn to Jeremy's promises of a new Jerusalem and endless spending, but worried that these endless promises, with no credibility, will only serve to lose us the next general election.

Others are certain that a Jeremy victory is really a win for Cameron and Osborne, but don't know who is the best alternative to vote for.

I am supporting Liz Kendall and will give her my first preference. But polling data is brutally clear: the big question is whether Andy Burnham or Yvette Cooper will face Jeremy in the final round of this election.

Andy can win. He can draw together support from across the party, motivated by his history of loyalty to the Labour movement, his passionate appeal for unity in fighting the Tories, and the findings of every poll of the general public in this campaign that he is best placed candidate to win the next general election.

Yvette, in contrast, would lose to Jeremy Corbyn and lose heavily. Evidence from data collected by all the campaigns – except (apparently) Yvette's own – shows this. All publicly available polling shows the same. If Andy drops out of the race, a large part of the broad coalition he attracts will vote for Jeremy. If Yvette is knocked out, her support firmly swings behind Andy.

We will all have our views about the different candidates, but the real choice for our country is between a Labour government and the ongoing rightwing agenda of the Tories.

I am in politics to make a real difference to the lives of my constituents. We are all in the Labour movement to get behind the beliefs that unite all in our party.

In the crucial choice we are making right now, I have no doubt that a vote for Jeremy would be the wrong choice – throwing away the next election, and with it hope for the next decade.

A vote for Yvette gets the same result – her defeat by Jeremy, and Jeremy's defeat to Cameron and Osborne.

In the crucial choice between Yvette and Andy, Andy will get my second preference so we can have the best hope of keeping the fight for our party alive, and the best hope for the future of our country too.

Tom Blenkinsop is the Labour MP for Middlesbrough South and East Cleveland