Labour Conference 2011: Balls calls for second bank bonus tax

Shadow Chancellor Ed Balls has demanded five immediate steps to avert further financial turmoil.

Addressing the party conference in Liverpool, Balls criticised the government for cutting too much spending too quickly and "choking off the recovery".

Balls demanded the government repeats the tax on banking bonuses and uses the money raised to create 100,000 jobs and build 25,000 affordable houses.

He said the government should bring forward plans to invest in long term projects such as roads, schools and public transport.

The government must also temporarily reverse January's VAT rise to boost retail revenues by stimulating demand, Balls said.

VAT should also be cut by 5% on home improvements, repairs and maintenance to help stimulate the housing market.

He also said the government should give small businesses which hire new workers a one-year National Insurance break.

Balls admitted Labour made mistakes in government, mainly in failing to regulate the activities of "irresponsible" banks.

However, he argued the coalition's plan is "hurting but not working".