Labour dismissed allegations of a split over spending plans today, after senior shadow cabinet minister Jim Murphy said the party needed to show "credibility" by explaining where it would make cuts.
The shadow defence secretary said he accepted £5 billion-worth of the Government's military cuts and acknowledged that Labour would have to make spending reductions if it won power.
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| Jim Murphy - Labour needs to be "credible" |
Tories claimed that his comments, in an interview with The Guardian, amounted to an attack on Labour leader Ed Miliband and shadow chancellor Ed Balls, who have been arguing for a slower rate of reduction in Government spending.
However a source close to Mr Murphy dismissed the claim as "mischief-making", pointing out that Mr Balls himself used a pre-Christmas interview to state explicitly that "there have got to be cuts" and to say that Labour needs to address "public scepticism" about its willingness to take tough decisions on spending.
Mr Murphy was spelling out how that approach applied to defence, said the source.
The shadow defence secretary's remarks come ahead of the launch next month of a Labour review of Britain's defence needs, which is expected to be critical of the 2010 Strategic Defence and Security Review (SDSR).
Mr Murphy told The Guardian: "It is important to be both credible and popular when it comes to defence investment and the economics of defence.
"There is a difference between populism and popularity. Credibility is the bridge away from populism and towards popularity. It is difficult to sustain popularity without genuine credibility.
"At a time on defence when the Government is neither credible nor popular it is compulsory that Labour is both."
Among the cuts accepted by Mr Murphy were the scrapping of the Nimrod MRA4 surveillance aircraft, saving £2 billion; £900 million of efficiencies in the Trident renewal programme; a £350 million rationalisation of the defence estate; cuts of £205 million in civilian allowances; and reductions in tank regiments, saving £35 million.
He said that Labour will also accept the withdrawal of VC-10 transporter and tanker aircraft in 2013 and C-130J Hercules heavy-lift planes from 2022, indicating that the total cuts figure could rise above £5 billion.
"This is a thorough, forensic package which strengthens defence economic credibility and deals comprehensively with the idea that we oppose all cuts," said Mr Murphy.
"The truth is the Labour Party would have to make cuts if we were in power."
However he made clear he continued to oppose key elements of the SDSR, arguing for the replacement of Nimrod's capability and the retention of warplanes able to operate from aircraft carriers.
"The idea that you cannot deploy an aircraft carrier with aeroplanes on it for a decade - whatever way you do the sums, it doesn't add up," he said.
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| Treasuty Secretary, Chloe Smith say Mr Murphy's comments were an "extraordinary attack" on Mr Miliband and Me Balls |
Treasury minister Chloe Smith said that the comments by the prominent Blairite - who was joint campaign manager for David Miliband's 2010 leadership campaign - amounted to an "extraordinary attack" on Ed Miliband and Ed Balls.
They followed the warning earlier this week from Labour peer Lord Glasman that the party appears to have "no strategy, no narrative and little energy" under Mr Miliband's leadership, she said.
"After a series of attacks on his weak leadership, this is the latest blow to Ed Miliband as even his own shadow cabinet are losing confidence in Labour's economic policy," said Ms Smith.
"Until Labour say what spending they would cut to clear up their mess, rather than calling for more spending, more borrowing and more debt, they will never be trusted with our economy again."
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