Shadow chancellor Ed Balls is to reject First Minister Nicola Surgeon's call to change his party's economic plans and announce an extra £180billion in public spending during a visit to Scotland.

 

The Labour frontbencher will pledge to stick to Labour's finance policy as he tours Glasgow and Edinburgh today.

With Labour trailing the SNP in the polls, Mr Balls will also claim that a Labour Government would offer Scotland the change it needs and accuse the Conservatives of wanting to take Scotland "back to 1930s levels of public spending".

Earlier this month the First Minister called on the next Westminster government to agree to an extra £180bn worth of spending over the next five years.

The SNP leader also made clear that her call would be one of the SNP's key demands if there is a hung parliament in May and it enters into talks on propping up a Labour government.

She said that a cash injection would help boost the economy and ensure fairness in public services.

The figure of £180bn would represent a half a per cent real-terms rise in spending by government departments by 2020.

Ms Sturgeon has said that the move would "still have the debt and deficit falling as a share of GDP".

But critics have accused her of attempting to "bankrupt Britain".

Mr Balls will reiterate Labour's pledge to balance the nation's books and do it "fairly", saying: "People across Scotland want change, and that is what Labour is offering at this election. A Labour Budget would tackle tax avoidance and reverse the Tory tax cut for millionaires so we can balance the books fairly."

He will also highlight Labour's plans for a mansion tax and reiterate his commitment to help the North Sea oil sector, saying: "We urgently need action to help Scotland's oil and gas industry and that jobs that depend on it.

"If George Osborne does not finally act in the Budget then I promise Labour's first Budget will."

He will add that "every vote for the SNP is another vote which will make it much more likely that the Tories will form the next government."

The SNP meanwhile have promised to give the Westminster establishment "the fright of its life".

Mr Balls is expected to visit a business in Glasgow and campaign in shadow Scottish Secretary Margaret Curran's constituency before travelling to meet with representativeness from the financial services sector in Edinburgh.

A Scottish Conservatives spokesman said: "It's no surprise to see the shadow chancellor in Scotland - he's the only Ed Labour will dare to send north of the border.

"Labour has absolutely no credibility on the economy, and anyone listening to this when he visits will realise that.

"The only thing Labour is offering Scotland is a rainbow coalition with the SNP, something that jeopardises the economy and the constitutional future of the UK."

Oil industry leaders said yesterday that they were "encouraged" after a meeting with the Chancellor about the challenges currently facing the sector in the wake of a price slump.