Labour 'won't be able to undo cuts'

Labour is prepared to make unpopular decisions about government spending if it wins the next election and will not be able to undo the coalition’s cuts, Chris Leslie will say.

The shadow chief secretary to the Treasury will insist his party’s policy plans are radical but will “not be about spending commitments”.

In a speech today, Mr Leslie will also outline Labour’s commitment to multi-year government spending reviews with more departmental oversight of the public bodies that fall under Whitehall stewardship.

He will argue that he and shadow chancellor Ed Balls will “put an end to the one-year spending reviews recently introduced by George Osborne”.

The Chancellor last year carried out a spending review for the first year in the next Parliament – 2015/16 – but previously carried out a three-year review.

Emphasising the need for long-term plans, Mr Leslie will say Government departments will have to set out similar multi-year budgetary certainties for public bodies and organisations they fund.

The Labour frontbencher will say the coalition Government has wasted money through short-term planning, citing the closure of 14 prisons which led to a shortage in capacity and may now be met by building new “Titan” prisons, which “appear unfunded”.

Mr Leslie will also point out the decision to ditch the planned £1.3 billion A14 upgrade in 2010 because it was “unaffordable”, only to resurrect the same scheme in 2013, now at a cost of £1.5 billion.

He is expected to say: “Ed Balls and I have concluded that a Labour Treasury will put an end to the one-year spending reviews recently introduced by George Osborne. We will instead set out Spending Review plans on a multi-year basis.

“And we would go further and expect departments in turn to provide public bodies and organisations under their stewardship with the same longer-term certainties, so they can make better decisions and plan for the savings they will need to make.

“As we have seen across local government and various agencies, keeping public services in the dark makes it harder to plan the fundamental reforms that ought to be addressed.

“There are too many instances of short-term budget decisions that cost more in the long run.”

Mr Leslie will also talk about the tough decisions ahead for the next government.

He will say: “Labour’s Policy Review process will culminate at our National Policy Forum in July. Ed Balls, Jon Cruddas and I have been clear that our conclusions and agenda will be radical but suited to our times.

“So it will not be about spending commitments, but solutions that are funded, achievable and which can be delivered in office.

“All government departments in the next Labour government will have to face fundamental questions as never before.

“I’m not heading into this expecting popularity. Quite the opposite. We won’t be able to undo the cuts that the have been felt in recent years. And I know that this will be disappointing for many people. A more limited pot of money will have to be spent on a smaller number of priorities. Lower priorities will get less.

“We are not arguing with the Government about the scale of the challenge. But we do differ significantly on the best way to confront it.

“George Osborne has had his five years to eradicate the deficit. I am determined that we finish that task on which he has failed.

“As last week’s elections showed, the public want the realistic prospect of change, not just more of the same. And they want Labour to focus relentlessly on how it would deliver those changes.

“These are serious times and they demand a hard-headed approach from political parties seeking the chance to govern.

“By taking the long-term perspective and reviewing every item of government expenditure from the ground up I am confident we can get the job done.”

Labour 'won't be able to undo cuts'