Exclusive: Miliband hints at rethink on tackling deficit

Writing exclusively for the Yorkshire Post, the Doncaster North MP left open the door for a reconsideration on how Labour would tackle the deficit, under pressure from left-leaning MPs including defeated leadership contender Ed Balls and Shadow Housing Minister John Healey.

Mr Miliband, who will make his first conference speech as Labour leader tomorrow, enjoyed his first full day in the job yesterday and denied the party would lurch to the left under his leadership. He pledged to look after the "squeezed" middle classes.

One of his first jobs will be to resolve the future of his brother David, whom he beat to the top job on Saturday, amid signs of tension between the two camps. There has been speculation David Miliband will be offered the job of Shadow Chancellor but it is unclear whether he would accept.

He was not present at a meeting of Labour MPs yesterday when his younger brother was greeted warmly as the new leader, and his campaign manager Jim Murphy said he was "taking a few hours out". Mr Miliband must decide by Wednesday whether to fight for a place in the Shadow Cabinet.

Ed Miliband, who relied on the support of unions to win the leadership contest, told the Yorkshire Post Labour would be "radical and reforming" under his leadership, and said he was determined to "rebuild trust" with voters in the region, where the party lost a string of marginal seats to the Tories – and one to the Liberal Democrats – in West Yorkshire.

Turning to the economy, he said: "Labour will follow a sensible plan to reduce the deficit but we must not allow the coalition to threaten future manufacturing jobs in Yorkshire through short-sighted cuts, driven by ideology.

"Axing the 80m loan to Sheffield Forgemasters makes no economic sense. It's also important that the coalition goes ahead with Labour's fund to modernise the Humber ports and turn them into wind turbine manufacturing centres."

His comments suggest he could reconsider Labour's election pledge that it would reduce the deficit in four years, a policy pushed by then Chancellor Alistair Darling to convince voters Labour was serious about balancing the books.

In opposition the party will be pushed on whether they still believe that is the case. Mr Milliband's comments suggest he may water down the commitment – which could be seen as evidence of Labour moving to the left and failing to face up to the state of the public finances.

Ed Balls, the Shadow Schools Secretary and Morley and Outwood MP, has called the election pledge a mistake, arguing it is more important to invest now until the recovery is stronger.

Shadow Housing Minister John Healey, MP for Wentworth, also told the Yorkshire Post: "I've been very clear that economic conditions change. The economy is weakening, other economies are going back into recession and economic policy making just like politics can never be about one single overriding objective."

In an interview yesterday Ed Miliband declared the New Labour era over but dismissed the "red Ed" tag applied to him by critics as "tiresome rubbish". He also reached out to former rivals for the top job, saying he wanted to use "all the talents from across our Cabinet".

He said his brother David had shown "extraordinary generosity and graciousness" towards him after the result was announced, but said he "needs time to think about the contribution he can make".

Denying his election represented a "lurch to the left", he said: "I am for the centre-ground of politics, but it is about defining where the centre ground is."

Mr Miliband also revealed that his experiences in Doncaster would play an important role in his leadership, saying: "It's my deep connection with the people of Doncaster, always listening to their hopes and fears, that will guide me on that journey."

Former Deputy Prime Minister Lord Prescott failed in his attempt to become Labour's next treasurer after losing out to a union-backed rival. Lord Prescott won most votes from party members but was heavily beaten in the trade union section by Diana Holland.