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Ed Balls: Quitting EU 'Biggest Risk' To Firms

Ed Balls has insisted Labour is pro-business as he warned the threat of leaving the EU posed the "biggest risk" to British firms this decade.

The shadow chancellor said the UK "must bang the table for change" in Europe, but he was critical of the Tories "flirting with exit", which he argued was "deeply destabilising".

Addressing the British Chambers of Commerce's annual conference, Mr Balls also stressed the party's pro-business agenda following a string of recent attacks by senior corporate figures.

However, with other party leaders giving speeches at the event, the Labour leader Ed Miliband faced claims he had "snubbed" the business community.

BCC director general John Longworth told Sky News the Labour leader's absence from the conference was "disappointing".

In his speech, Mr Balls underlined the commitment of the party's leadership to work with firms to "improve the environment for business investment and productivity through an economic policy that tackles our weaknesses, backs our strengths and delivers more good jobs".

"Because when working people and British businesses succeed, Britain succeeds too," he said.

But it was over the EU that he pressed home his attack on the Conservatives, arguing its offer of an in/out referendum threatened investment and jobs.

The opposition views its policy on Europe as a way of winning the support of businesses concerned about the prospect of quitting the single market.

Mr Balls told the business group: "Britain must lead the debate for reform in the EU.

"Banging the table for change and for the EU to work better for Britain.

"But not flirting with exit and putting party interest above the national economic interest."

He said later: "I think the threat of leaving the EU is the biggest risk to British business in this decade."

Mr Balls did not think setting an "arbitrary timetable" for a public vote on Britain's membership would provide stability.

But speaking at the same conference later, the Prime Minister insisted his party's promise of a referendum on the EU was not damaging business, and that without it the prospect of the UK leaving was more likely.

Claiming his approach had the backing of business, he said: "They are saying it is quite right to have a strategy that gives Britain the best chance of staying in a reformed European union that works in our interest."

Lib Dem Deputy Prime Minister Nick Clegg said his party would make the case for reform in Europe without the "destabilising" risk of leaving the European Union under the Conservatives' promised referendum.

"I believe this endless hokey-cokey about whether or not we stay in the EU is destabilising for British business," he said.

Labour's shadow business secretary Chuka Umunna also addressed the conference, where he was set to tell the audience Labour would "strain every sinew" to support British firms.

But the absence of Mr Miliband drew comment.

Mr Longworth said: "It was disappointing because I think it was a great opportunity, a platform for the business community, businesses from all over the country, to set out the case."

Labour sources stressed Mr Miliband was not "dodging" business leaders and pointed out he had attended other economic conferences, including the Confederation of British Industry's in November last year.