THE Shadow Chancellor issued an open challenge to the Conservatives yesterday over the economy, telling them to “bring it on.”

Ed Balls was in Swindon to announce a policy he says will help small businesses and said the current government’s record was not good enough.

In front of Labour supporters, local business owners and members of the public, the Shadow Minister said many Swindon residents had felt the pinch over the last five years, a claim denied by the their opponents.

Mr Balls, who was joined during his visit to the town by Shadow Business Secretary Chuka Umunna, said the policy was aimed at helping people struggling to cope with rising bills.

“If the Conservatives want to go around saying their plans are working then we say bring it on because the reality is people on the doorstep are saying things are getting worse,” he said.

“We can all say we want a better future but that is not one where bills are rising faster than wages.

“Around 70 per cent of people are saying they are squeezed and that has got to change.”

Alongside South Swindon candidate Anne Snelgrove and Mr Umunna, the party announced a cut in rates for small businesses if Labour won the election.

Mr Balls said any company with a rateable value of under £50,000 would benefit from the cut.

The Shadow Chancellor said 6,000 firms in the town would benefit from the move.

He said: “Business rates have gone up by a huge amount over the last few years.

"We think if you want to grow small businesses and create jobs then if you give a £400 cut per year to small businesses then it will make a real difference.

“It will help those businesses grow and become bigger employers in the future.”

To fund the move, planned reductions to corporation tax will be stopped and the money will be transferred to help small businesses, he said.

Mr Umunna, the MP for Streatham, in South London, said the party supported all businesses.

But with limited resources, decisions on where to spend them had to be made.

He said: “We have supported the other cuts in corporation tax to 21p.

"In relation to small business the biggest worry is the massive hikes in business rates which have been clobbering them under David Cameron’s premiership.

“It’s not an either or relationship between big and small businesses.

"The relationship between them is symbiotic – but when you have a tough financial and fiscal climate, you have to decide where best to direct your resources.”

South Swindon is being seen as a major battleground in the General Election, with Anne Snelgrove and Conservative incumbent Robert Buckland running neck and neck in the polls.

Mr Balls said if Labour wanted to win the election it was a seat they would have to take.

Mrs Snelgrove said: “It’s going to be tight but we are not just doing this because we want to win in South Swindon.

“We are doing it because we want to help small business. My background is small business. My mum ran a small business and my brother still does.

“I know how difficult it is for those businesses to succeed, so I am thrilled Labour has got their interests at heart.”

However, Mr Buckland hit back at the announcement, saying Swindon is leading the financial recovery which is being seen across the country, with firms such as Honda investing in the town.

“To criticise the economy on the day Honda announces £200m investment in Swindon smacks of desperation from Labour,” he said.

“This news will have a knock-on effect for many small businesses in the area.

“I hope the Shadow Chancellor also congratulated all the Swindon businesses which are spearheading our economic recovery.“It’s time the Labour Party stopped talking down the economy.”