Miliband issues ‘hard-headed’ attack on ‘irresponsible capitalism’
By Ian Dunt Follow @IanDunt
Ed Miliband sought to turn Britain's economic woes to his advantage today with a speech billed as a 'hard-headed' attack on 'irresponsible capitalism'.
The speech comes one day after Bank of England governor Sir Mervyn King slashed growth forecasts and youth unemployment reached one million, raising fears of a lost generation.
"The argument for a new, more responsible capitalism is hard-headed, not soft-hearted," Mr Miliband said in a speech to the Social Market Foundation think-tank.
"It is based on paying our way in the world, building long-term wealth and delivering rising living standards for the majority of people.
"Knowing what we know now, about our economy, about growth prospects, it would be the height of irresponsibility for the government to carry on regardless.
"I urge David Cameron: change course now. Change course for the sake of our young people. Change course for the sake of our country."
The Labour leader highlighted research which suggests the government could end up borrowing £109 billion more than planned over the next four years despite its far-reaching austerity cuts.
Labour has compared the Office for Budget Responsibility forecasts from November 2010 to the latest estimates. It says the results mean the coalition would need to borrow £11 billion more this year than expected, £22 billion more next year, £34 billion in 2013/14 and £42 billion in 2014/15.
"Don't believe those who would tell you any change in course will make us like Greece," Mr Miliband added.
"As the managing director of the International Monetary Fund said, the markets are as worried about the lack of growth in the economy as they are about debt levels."
The speech comes as Nationwide's consumer confidence index fell to its lowest since records began in 2004.
