Ed Balls: The Labour Party are happy to be called socialists And I will talk today about the 1945 Labour government, 67 years ago, which inherited an economy which was really struggling, a big deficit, the need to spending restraint, a population wanting change. Mr Balls will today reveal plans to give working parents 25 hours a week free childcare for children aged three and four, up from 15 hours currently. In his speech to Labour's conference, the shadow chancellor will describe the move as "a radical transformation in the provision of childcare." Speaking to ITV1's Daybreak this morning, Mr Balls said it was right that the banking industry, "which caused the financial crisis," makes a greater contribution to helping hard-pressed families. Mr Balls will rule out ant increase in borrowing for day-to-day spending under a Labour government. However, he has refused to rule out further borrowing for capital projects. Paul Johnson, director of the Institute of Fiscal Studies, said the Labour Party's proposals so far are too timid to tackle the deficit. The OBR has said spending cuts of 10 per cent after the next parliament are needed to balance the Government's books. Labour says its plans so far are fiscally neutral, with any new revenue from taxes including a mansion tax on homes worth more than £2m and a windfall levy on bankers" bonuses being eaten up by other fresh spending promises. The Tories say the party's proposals so far would leave a £27bn shortfall. "It's quite hard to get very large sums from a small number of people, particularly that have already seen tax rises so far," Mr Johnson said. In a bid to underline Labour's economic credibility, Mr Balls has said his manifesto tax and spending proposals would be submitted to the Government's Office for Budget Responsibility for scrutiny. The Conservatives have said the proposal is a "gimmick" and outside the OBR's remit. But Mr Balls said the OBR was "absolutely up" for the proposals and said the Tories were "playing games." He said the move does not need fresh legislation. "We've got to show, all of us, our sums add up, restoring trust in politics," Mr Balls said. Mr Johnson said that move would require parties to be much more specific about their plans. They would also have to draw up their manifestos much earlier. "It's not good dumping your manifesto on the OBR's desk a month before the election," Mr Johnson said.