Brother David overshadows Miliband’s relaunch as he says Labour is split and ‘frustrated’

Ed Miliband will attempt to re-launch his faltering leadership after his brother warned that Labour is split and ‘frustrated’ over what to do next.

In a keynote speech after a week of disasters, the Labour leader will try to map out how ‘Labour values’ can be applied in government even when there is no money to spend.

Mr Miliband wants to show voters that Labour has shaken its belief in spending ever more money at a time of austerity.

David Miliband
Ed Miliband

David Miliband (left) has warned that the party led by his brother Ed is in the doldrums

The Labour leader will also rebuff his Blairite critics, warning that the party will have to change if it wants to win again.

But the need for a relaunch was dramatized again yesterday when his brother David – vanquished in the leadership contest 15 months ago – warned that the party is in the doldrums.

In an interview with The Hindu newspaper in India, the former foreign secretary admitted that Labour is bitterly split over whether to apologise for the mistakes of the Blair and Brown years.

He said: ‘I think for everyone in the Labour Party, it feels very frustrating at the moment. Because opposition is a permanent lesson in frustration; you can talk but you can’t do anything. The whole Labour Party is frustrated by opposition.’

He added: ‘There’s a debate in the Labour Party about how we should understand our record in government, what we should be proud of and what we should apologise for.

Ed Balls has refused to apologise for the last government's overspending

Criticism: Ed Balls has refused to apologise for the last government's overspending

But I think it’s very important to be proud of your achievements and humble about your mistakes.’

That is a coded criticism of shadow chancellor Ed Balls, who has repeatedly refused to apologise for the last Labour government’s public spending, which is widely seen as incontinent.

It echoes the views of Ed Miliband’s policy guru Lord Glasman, who last week denounced Mr Balls’ economic policies as ‘all crap’ and said Mr Miliband had ‘no strategy, no narrative and little energy’.

In his speech to the London Citizens organisation, an alliance of faith groups, Mr Miliband will tackle the growing criticism from Blairite supporters who backed his brother.

‘The ideas which won three elections between 1997 and 2005 won’t be the ideas which will win the election in 2015,’ he will say. ‘So we will be a different party from the one we were in the past.  A changed Labour Party.’

Yesterday Mr Miliband came under fire again from former Home Secretary Alan Johnson who said: ‘Too often we sound like a debating society rather than a political party – a problem intensified by a tendency to conduct the debate as if it were a university seminar.’

He said: ‘We cannot get to 2015 with public and media asking: “Who is Ed Miliband?”’

‘We have to set out how we would tackle the deficit.’

Vowing to fight for the ‘squeezed middle’ he will say: ‘My message today is that Labour can deliver fairness when there is less money around.

‘Next time we come back to power, it will be different. We will be handed a deficit. Whoever is the next Prime Minister will not have money to spend.

‘We will have to make difficult choices that all of us wish we did not have to make. Labour knows what fairness means. It always will. But we must rethink how we achieve it for Britain.’

Split: The party is said to be divided on over whether to apologise for the mistakes of the Blair and Brown years

Split: The party is said to be divided on over whether to apologise for the mistakes of the Blair and Brown years

The Labour leader has been criticised for making criticisms of fat cat bankers and ‘predatory’ firms before David Cameron without following up with any policy ideas.

Mr Miliband will today respond to the criticism that he is more comfortable mouthing political platitudes by mapping out concrete measures to take on ‘vested interests’ in the big banks, energy firms and train operating companies.

He will spell out further policy details on ‘delivering fairness’ in three areas – rewarding long-term wealth creation in big business, ‘tackling vested interests that squeeze the living standards of families across our country’ and ‘making choices that favour the hard working majority’.

He will say: ‘Everyone is now joining us talking about the squeezed middle, the next generation and responsible capitalism. Suddenly David Cameron is falling over himself to say he too is burning with passion to take on ‘crony capitalism’.

‘Now he has accepted this the battleground of politics, I say: ‘Bring it on. My answer is different. Different to this Prime Minister. And different too to the previous Labour Government.’