Shadow Chancellor John McDonnell has outlined his case for a “new economics” ahead of next week’s Spending Review.
Mr McDonnell, who was something of a controversial choice for the Treasury brief, has said that Labour’s proposals would lay the ground for a “high-wage productive economy”.
His flagship policy would be to extend existing employment rights to cover the self-employed and those who work flexible hours.
Mr McDonnell has also argued in favour of reforming corporate tax – having been extremely critical of Mr Osborne’s plans to further cut the current rate.
“Our large companies are sitting on billions in cash,” he said.
“So we will also look to ways to change our corporate tax system and work constructively with companies to give them the incentives to invest wisely.”
His “socialism with an iPad” pitch also makes the case that the UK must do more to recognise the massive influence that new technology has had on the economy, both nationally and overseas.
“As the world changes, the way we work changes with it,” he told the Guardian. “Dramatic shifts in technology are opening up new possibilities. The UK needs to diversify – to become the technological as well as the financial centre of Europe.
“The spread of information technology and the long-term decline in the cost of computing power have created opportunities that simply did not exist before.”
Mr McDonnell’s rhetoric has previously been branded “anti-business” by his opponents and some within his own party have urged him to exercise caution on economic policy.
He may, however, take some comfort in today’s deficit figures, which are likely to come as a major blow to Mr Osborne’s much-vaunted “long-term economic plan.”
It now remains to be seen how the Chancellor will respond to the setback when he steps up to the despatch box next Wednesday.