Ed Miliband’s leadership has been marked by an openness to thoughts from the whole spectrum of the party. Each one has tried to grapple with Labour’s answer to the new economic reality.

Yesterday, Ed set out Labour’s answer to this question and his response was very much black Labour. Moving Labour away from spending its way out of social issues, from an era where that was possible, to an inheritance from an economically irresponsible Conservative government, he recognised there will be less money to revolutionise our nation’s assets when Labour return to power.

While black Labour may have come too early, prophesying a day of balanced budgets and low economic output, its core message is one that the Labour leader was able to touch upon yesterday.

Let us not pretend that, thus far, Labour is winning the economic argument. It lost six months after the 2010 election, allowing Osbornomics to fill the vacuum in the general consciousness as the only plausible economic path. Yet this does not mean that Labour must agree with Osborne’s unfair and economically unsound policies, nor with the inequalities and divisions they are creating in this country.

While this government’s departments’ agenda is to cut first and think second, when Labour left office, we had a sensible plan that combined temporary tax rises with a measured deficit reduction plan. The Darling plan was lauded by the CBI and the Federation of Small Businesses, among others, who saw the budget as ‘modest but helpful’. In a recession, this is the medicine a patient needs to recover: taking away the drugs as this government has done has been shown not to work.

For the moment, black Labour may be a false prophet. It is not set in our own time, when savage cuts are aggravating our ailing economy and the Five Point Plan for Jobs and Growth would work to put us back on course. Yet black Labour aptly notes the need for progressive values with less money – as Ed said yesterday.

Labour recognises the need for cuts but these must be prudent not political. Ed is right that we need to choose where to invest, not simply salami slice our services, and our economy as a result. He was right today to say that it will have to be Labour that picks up the pieces of this economically redundant government and will have to mould fairness in deficit reduction. He was right to re-establish Labour’s core values in these tight times.

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Alex Glasner
is a member of Progress