So about a month after "In the Black Labour" plea for fiscal conservatism was published, we have this.
Ed Balls, the shadow chancellor, has moved to challenge accusations that Labour is not credible on the economy by telling the public sector unions that he endorses George Osborne's public sector pay freeze until the end of the parliament, and that he accepts every spending cut being imposed by the Conservatives.
http://www.guardian.co.uk/politics/2012/jan/13/ed-balls-labour-party-economic-redibility
I actually think this is the right and inevitable step from Labour. Up until now they have basically been spending their time arguing with the public, telling them they were wrong to reject them at the election. Is a long way back for them on the economy but sanity strikes at last.

