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Shadow chancellor faces budget surplus dissent

LABOUR shadow chancellor Chris Leslie could face a rebellion over his support for Tory plans for a mandatory government budget surplus.

Mr Leslie has committed Labour to support a law proposed by Chancellor George Osborne banning any public-sector deficit “in normal times.”

However, the results of a Labour List poll revealed yesterday that most of the party’s supporters did not support his stance.

Of 1,072 people who voted, 54 per cent were opposed to the surplus compared to 36 per cent in favour of it and 11 per cent who were undecided.

Former minister Michael Meacher confirmed yesterday that he would be among MPs to defy party whips and refuse to vote for the restriction in Parliament.

While Britain’s current £90 billion deficit was “too large and ought to be reduced by expanding the economy,” he told the Star yesterday, “To have a permanent surplus is just a fetish.

“If you can get a surplus fine, but it’s certainly not necessary.

“The important thing is sustainable growth.”

Mr Meacher pointed out that the national debt was 260 per cent of GDP after World War II — three times higher than it is now.

“That didn’t stop the Attlee government introducing the welfare state,” he said. “If you have growth, the budget deficit and the national debt will take care of themselves.”

It is the second time in two days that Mr Leslie, who is tipped to remain as shadow chancellor if Yvette Cooper becomes leader, has found himself at odds with MPs and members.

All four party leadership candidates criticised his support for another squeeze on public-sector pay on Thursday.

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