IoD responds to Ed Balls' speech

Responding to the Shadow Chancellor’s speech to the Labour Party Conference in Manchester, Graeme Leach, Chief Economist at the Institute of Directors, said: “There is always a danger in spending money before you’ve actually got it – particularly when it seems unlikely that the 4G auction will actually raise the £4 billion Ed Balls has predicted.

"The windfall from the 4G auction is a rare bit of good news for the public finances, and any money it raises must be used wisely. Ideally, it should be put into the essential process of deficit reduction – or if it’s going to be spent, then spend it on the infrastructure which will support economic growth.

"It would be much better for our long term economic prospects to use this to invest in our transport system and digital infrastructure, rather than housebuilding.”