Ed Miliband set out his plan for tackling the deficit in a speech about the economy yesterday, saying that Labour would cut the deficit every year of the next parliament.
Ed Miliband
Unlike the harsh cuts that we know are on the way should the Conservatives return to Downing Street, Miliband has promised that he will make 'sensible' spending cuts.
While Mr Miliband did highlight some of the of the cuts that he did want to make, which included stopping winter fuel allowance from the wealthiest pensioners, capping child benefits at 1%, and scrapping police commissioners, he said the details of the cuts would not be made until he was in power.
He said: "Beyond that, the right way to make these decisions is frankly in government, when you have all the resources behind you.
"Because if we start picking things out of the air without having done that work ... then they won't be the most sensible changes in the interests of the country."
While many budgets will be cut - except the NHS - in a bid to balance the books, Miliband is also looking to boost wages and tax the wealthy in addition to the cuts.
Miliband has thrown his support behind the NHS and looks set to protect money that is poured into the service. The Labour leader also hinted that he might not raise VAT should he win next year's election.
He continued: "The last Labour government increased spending year on year, using the proceeds of economic growth to make our country fairer.
"That option will not be available to us, and nor would it deal with the root causes of an economy that does not work for working people. Higher spending is not the answer to the long-term economic crisis that we have identified."
However, Miliband's plans did come under fire from the Tories, who believe that Labour do not have a plan to tackle the deficit should they reach Number 10. While the Liberal Democrats say that Labour wouldn't reduce the deficit quickly enough, while the Conservatives are taking it too far and cutting too deep.
As we get closer and closer to the May general election, the state of the economy and reducing the deficit is going to be a major battleground for all the major parties.
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