Fabian Society Ed Miliband’s Labour government will take office in the toughest of circumstances: our public services on the rack because of cuts, a weak economy with hesitant growth based upon personal debt, housing assets and consumer spending, and with a record trade deficit. Despite the constant Tory mantra, ‘it’s the deficit, stupid!’, all their targets on borrowing, debt and the budget deficit have been missed. Their neoliberal austerity agenda is failing, like elsewhere in Europe. Labour will also face the small problem of ruling without a comfortable majority – or, if the pundits and pollsters are to be believed, no majority.