Ed Miliband to say Labour was wrong over boom and bust

Ed Miliband will today take the audacious step of denouncing the hubristic boast of his patron, Gordon Brown, that Labour could abolish economic boom and bust, saying the assertion simply fuelled the anger of voters confronted by economic insecurity and joblessness.

The attempt by Miliband, in his first leader's speech to Labour conference, to swiftly distance himself from one of the central planks of his long-time boss is designed to show his leadership signals the arrival in power of "a new generation with different attitudes, different ideas and different ways of doing politics".

But his efforts to show he can lead a united, re-energised party committed to redefining the centre ground of politics look likely to be hampered by the expected decision of his defeated brother, David, to leave frontline politics to give him the chance to lead on his own terms.

Ed Miliband is said to be still trying to persuade him to remain at the top of Labour politics, and insisted there was "no psychodrama" between them.

David Miliband has been offered the shadow chancellorship, but friends say he does not want it. More broadly, they say, he fears that if he remains the brothers will be ground down by rumours of splits, jealousies and factionalism that disfigured nearly a decade of Tony Blair's premiership.

The former foreign secretary, and once the clear favourite for the leadership, is not expected to make an announcement until Wednesday, but his wife Louise – in tears at times yesterday – is said to be angry about Ed putting personal political ambition before family.

David Miliband's team, still trying to keep a lid on their anger, have advised former staffers: "If you cannot trust yourself do not go down to the bars, just go home."

In a piquant and brave address to conference, greeted by two standing ovations, David Miliband urged his party to rally to his brother's leadership.

The 20-minute rallying call was agreed in advance with Ed, and drew on some of the leadership speech David had planned to give.

He said a new leader should mean "no more cliques, no more factions, no more soap operas. One united Labour party taking on one divided government".

"Don't worry about me, I'll be fine," he said before urging them to rally behind the new leader. He said he was "incredibly proud" of his brother Ed.

"We have a great new leader and we all have to get behind him. I am really, really, really proud. I am so proud of my campaign. I am so proud of my party. But above all I am incredibly proud of my brother. I see Ed as a special person to me.

"Now he is a special person to you and our job is to make him a special person for all the British people."

The authority in his speech, ranging across foreign and domestic politics, will only put extra pressure on his younger brother today to convince the conference that they did not choose the wrong man, or let the unions in the electoral college do so.

One of his shadow cabinet allies insisted Ed Miliband was growing in stature as a leader by the hour.

His aides say that, apart from introducing himself to the electorate, he will strike a strong note of humility in his speech. He will argue that during its time in office the party lost the trust of the voters, partly because it lost the ability to change and adapt.

He will say: "Too often we bought old established ways of thinking and sometimes we even became the establishment."

He will also say: "It was courage that made us such a successful political force, but our journey must understand where it went wrong. How did a party with such achievements to its name end up losing 5 million votes between 1997 and 2007?"

In a stark admission of error, designed to reconnect with a disillusioned electorate, he will recant on a formidable trio of errors of the Blair-Brown era.

He will say: "When you saw the worst financial crisis in a generation, I understand your anger that Labour hadn't stood up to the old ways in the City which said deregulation was the answer.

"When you wanted to make it possible for your kids to get on in life, I understand why you felt that we were stuck in old thinking about higher and higher levels of personal debt, including tuition fees.

"And when you saw jobs disappear and economic insecurity undermined, I understand your anger at a Labour government that claimed it could end boom and bust."

The final admission of error, one of the most repeated and central tenets of Brown's economic policy, is the most profound. His aides did not make clear last night whether Ed Miliband was indicating that Brown had been wrong ever to claim that it was possible to abolish boom or bust, largely by using financial rules on borrowing limits, or whether he is simply saying the Brown's boast merely intensified the anger of the voters when it proved to be untrue.

In a marked difference from his brother, Ed Miliband is much more willing to attack the Labour record. David urged the party to look forwards yesterday.

Jim Murphy, one of David Miliband's campaign managers, had advised just before conference: "If David wins he will be sharply focused on the future and our future plans. It's not going to be about trashing Blair and Brown. The Blair-Brown days are gone. They are past."

Ed Miliband is not expected to make any major policy announcements in his speech; he favours a long-term approach using semi-independent policy commissions.

http://www.guardian.co.uk/politics/2010/sep/28/ed-miliband-labour-recession