Labour Party promises cuts in ministers' pay if elected

Ed Balls announced on Monday the Labour Party’s priorities for its budget plan, which included a reduction in ministers’ wages.

“The country is crying out for a change,” he said during the party’s annual conference in Manchester.

The politician said the party will cut ministers’ pay by 5% and restore the 50% income-tax rate if it wins the elections in May 2015.

He also said he will scrap the 'bedroom tax', extend child benefits and freeze energy bills for 20 months.

John Cridland, director-general of the Confederation of British Industry, said: "Business wasn't looking for any surprises and this speech sets out some of the foundations needed for long-term growth.

"Balancing the books is a given for whoever is in Government next, so the business community will be reassured by Mr Balls reaffirming Labour's commitment to fiscal discipline.”

Balls pledged the Labour Party would increase the minimum wage if in power. Cridland said to be “extremely disappointed” by the statement, as setting the minimum wage should be a decision made by the Low Pay Commission independent experts.