The Guardian view on the budget: what a Labour chancellor should really say | Editorial

"Mr Speaker, this budget begins from the principle that a Labour government will balance the economy, not just the books. The truth is that when demand falters and investment dries up, the government must step in: to keep people in work, rebuild living standards and lay the foundations for future growth. Fiscal responsibility matters. But responsibility does not mean retreat."

"When speculation outpaces production and wealth grows without work, fairness must be restored. That's why we'll levy a modest charge on financial trades that enrich the few but not the many. Only Labour can repair the damage caused by the Tories. Our mission is to renew the nation engaging with the EU, not rejoining it. Public investment is not a drain on the present but a foundation for the future paying back in stronger communities, greater self-reliance and higher productivity."

"So today we launch a national reconstruction plan, investing 1% of GDP each year in sustainable energy, green transport and advanced manufacturing the industries that will power Britain's recovery. This will be delivered within our new public balancesheet rule: net public worth (the value of our assets minus our liabilities) must rise over the economic cycle. Every pound we invest in British industry will strengthen, not weaken, the nation's finances."

Policy begins from the principle that a Labour government will balance the economy, not just the books. The government commits to stepping in when demand falters and investment dries up to keep people in work, rebuild living standards and lay foundations for future growth. Fiscal responsibility will be maintained while avoiding retreat. A modest charge on financial trades will be introduced to restore fairness. A national reconstruction plan will invest 1% of GDP annually in sustainable energy, green transport and advanced manufacturing. A public balancesheet rule will require net public worth to rise over the economic cycle. A Bank concordat will align monetary actions with the public interest.

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