Ed Balls reverses over his own progress on fiscal responsibility

The battle-lines over the Welfare Benefits Up-rating Bill — which faces its second reading in the Commons this afternoon — have been drawn. Labour has tied its opposition to the Resolution Foundation’s analysis showing that the bulk of the policy will hit working families. As Ed Balls put it last week, ‘Two-thirds of people who will be hit by David Cameron and George Osborne’s real terms cuts to tax credits and benefits are in work.’ They’ve labelled the move a ‘strivers’ tax’, a continuation of the divisive rhetoric from both them and the Conservatives that seeks to pit ‘hardworking families’ against ‘people who won’t work’ (as a recent Tory ad put it). Then there’s the new Tory poster, highlighted by Isabel this morning, proclaiming that ‘Today Labour are voting to increase benefits by more than workers’ wages.’ But that’s not strictly true. Labour are voting to continue increasing benefits in line with prices (as measured by the Consumer Prices Index).