Miliband's big comeback

By Ian Dunt

Ed Miliband will make a keynote speech designed to resurrect trust in his leadership today.

The Labour leader will try to wrestle the issue of the economy back from the government with a speech that goes some way towards the coalition's position while maintaining Labour 'values'.

Speaking to the London Citizens organisation, Mr Miliband will argue that Labour values are more important than ever during a period of deficit reduction because of the need to ensure fairness.

Even that effort will see him accept several key criticisms of the opposition's economic agenda, including the argument that they cannot accept the need for spending cuts in the abstract but reject most of the specific cuts proposed by the government.

Mr Miliband will admit that a narrative of spending cuts presents "a challenge for Labour".

He will add: "It’s the same challenge facing parties on the centre-left all around the world. And it's a challenge for me. A challenge I relish."

The speech comes amid weak polling for Labour on the key issue of the economy, with many voters still blaming the party for the economic stagnation occurring now – over 18 months since it left office.

Those polling results have prompted some commentators to suggest Labour map out specific cuts in order to be taken seriously by voters.

Others want Labour to steer away from accepting a coalition narrative on cuts, arguing that the party will lose an election fought on Conservative ideological grounds.

Instead, Mr Miliband will argue that the coalition is being forced to adopt his own rhetoric on irresponsible capitalism and predator firms.

"Suddenly David Cameron is falling over himself to say he too is burning with passion to take on 'crony capitalism'," he will say.

"Now he has accepted this is the battleground of politics, I say: 'bring it on.'"

Mr Miliband's low approval ratings and inability to turn the tides of public perceptions on the economy have destabilised his position over the festive break. Labour still holds a slim majority in most polls however.