High-wage economy a must for Britain, says Ed Miliband

Britain must shift to a more high-wage economy with a system of “predistribution”, Labour leader Ed Miliband told a conference at the London Stock Exchange yesterday.

With polls suggesting a 94-seat majority for his party at the next election, he said the next Labour government would not be able to simply increase tax credits for the less well-off as it did during the Gordon Brown years.

Instead, the UK had to move away from its “low-wage economy” so that workers were better paid and could help stimulate economic growth.

Mr Miliband called for a greater emphasis on “predistribution”, ensuring people are better paid rather than relying on tax credit top-ups.

“Predistribution is about saying we cannot allow ourselves to be stuck with permanently being a low-
wage economy,” he said.