One of the criticisms made by some in Labour of Ed Balls is that he is not committed enough to Ed Miliband’s “responsible capitalism” agenda. The shadow chancellor is often viewed as less concerned with rebalancing the economy away from finance and with introducing a tougher system of bank regulation. One Blue Labour figure recently described him to me as “a conventional Brownite politician”, suggesting that his philosophy was little changed from the days when the party advocated a “light touch” approach to the City.
But when I put this charge to Balls during my interview with him for this week’s NS, he responded with one of the best summaries yet of how his views have evolved and why he is as committed as Miliband to a reshaped capitalism. Here’s the full quote, which I didn’t have room to include in the piece.
The last Labour government didn’t build enough homes, and we’ve got to have a big drive on housing. The last Labour government didn’t do enough to regulate banking and we need to have a different approach to competition and to the regulation of banks. The last Labour government tried to persuade business to invest in skills for the adult workforce, and I don’t think it worked very well. The last Labour government went softly, softly on the agency workers directive and that was a mistake. The last Labour government talked about finding ways to have more long-term incentives and rules of the game for takeovers and capital markets, but we didn’t act.
In every one of those areas, the next Labour government has said that it’s going to act. The last Labour government tried to find ways to encourage, to fill that market gap for small business lending, but the next Labour government will have a British Investment Bank as an institution to drive small business support across the country.
On every one of those areas, Ed and I are working closely together on the policy agenda to deliver a different kind of economy. It’s a different Labour leadership, it’s a different kind of Labour Party, it’s a different political challenge, it’s a different policy agenda and it’s suited to different times and we’re working on it closely together. I’m not sure where the difference is, or where the lack of enthusiasm comes from, because it doesn’t come from me.