Where now for Labour?

THERE has been a long battle between the Government and Labour on the economy.

Initially Ed and co said that our deficit reduction plan would never work — that there had to be a Plan B — that if only we spent more we could drive up growth and so reduce the deficit.

But our indebtedness was always too great for that kind of alchemy. Recently they have given up on Plan B and moved onto the cost of living argument.

And it is true that many people are worse off than they were 4 years ago. But is this really that surprising given the catastrophic recession into which we were plunged by the last Government's profligacy?

The real question is to where Labour will now shift given that the latest fall in inflation, the rise in private sector real wages and the expectation that public sector real wages will rise before the next election is eating away at their cost of living pitch.

Well, not into an argument against welfare capping it appears. For a party that has voted against every one of our welfare reforms it may seem strange that Labour should now have backed the overall government welfare spending gap — that we voted through last week by 520 votes to 22.

The picture that emerges on the central issues for the coming election is therefore one of simultaneous retreat and confusion.

What do Labour now stand for? Stuck between the intransigence of Mr Balls and the dither of Mr Miliband lies an ocean of doubt.

Can they break out from the comfort blanket of instinctive opposition and present themselves as an alternative Government?

The British people need to know – for Labour time is fast running out. Let me know what you think at http://www.melstridemp.com">www.melstridemp.com