DfT warned to plan for annual cuts every year until deficit cleared under Labour

Balls: told shadow transport secretary to prepare for annual cuts

Balls: told shadow transport secretary to prepare for annual cuts

Labour leader Ed Miliband will today vow to balance the books with annual cuts in DfT and most other departmental day-to-day spending. But he will say the party can avoid "taking Britain back to 1930s spending levels".

Miliband promises a "tough and balanced One Nation Labour approach to dealing with the deficit" with a "credible and sensible goal to balance the books as soon as possible within the next Parliament". Labour would if in Government wish to prioritise "productive investment" and Miliband will in his speech pledge "common sense spending reductions with departmental spending falling and using money better by devolving power and breaking down old bureaucracies".

He will, however, seek to place distance between his party and the Conservatives by saying that Labour would "not cut spending to 35% of national income leading to disintegrating public services" and would also not "promise unfunded tax cuts that will eventually be paid for by bigger cuts to public services".

Shadow Chancellor Ed Balls today writes to the shadow transport secretary and the rest of the shadow cabinet to make clear that they should plan for departmental budgets to be cut each year until the deficit is cleared. On access to jobs, pay and skills, Labour plans would not involve additional spending, they claim, but would "raise wages and tax revenues whilst cutting social security bills".