2012 will see voters lose faith in the government's economic policy and give Labour a fair hearing says Ed Balls, the shadow chancellor. In an interview in the Fabian Review, Balls says George Osborne's autumn statement marked a turning point:

“I think it [will prove] a game-changer in people’s understanding. When a government [takes office], you really want to believe these new guys are going to make it work. Then suddenly people realise that not only is there lower growth and high unemployment, but that the one thing this Government said it would do was to borrow less, and now it is borrowing more. In the next six to nine months, people are going to say: What’s the alternative? Our opportunity starts now.”

He also highlights a lack of leadership on the eurozone crisis, comparing today's leaders unfavourably with Gordon Brown:

“I’ve been over in Brussels, and I’ve never felt the mood to be so fearful about where leadership is coming from. People say how different it would be if [Brown] was there. He’s had a harder time from some newspapers – and colleagues as well – than any other politician. He’s sanguine, forward-looking and very worried about where things are going…I have a lot of respect for Tony Blair and Gordon Brown.”

When asked if he would be in favour of a Lib-Lab coalition after the next election he replies: “You could do it tomorrow. What’s happening is so dangerous and against the national interest that what is needed is a new consensus. If you can form that consensus tomorrow, I’d be part of it like a shot.” 

“I’ve never been somebody who thinks coalitions a better form of government.. When I talk about Lib Dems [now], I don’t think of Nick Clegg as being part of that…[But] I’ve known Vince Cable and Chris Huhne for 20 years. They know the difficulty they’re in. Vince has not had a Damascene conversion – he’s kept his head down. Given their values and integrity, I don’t think Lib Dems will be comfortable in the coming months.”

Read the whole interview with Mary Riddell here

For more information about the Fabian Review Winter Issue, visit the Fabian Review page.