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The Shadow Chancellor conceded that Labour -while in power- made mistakes over the economy, while he attempted to muster up confidence on their credibility suggesting a five step proposal to deal with shaky economy.

Addressing the Labour conference audience, Shadow Chancellor Ed Balls accepted that the party faces a huge challenge in the form of reinstating public trust and faith in its credibility on the economy, post the banking crisis which transpired under Gordon Brown’s ruling.

Mr Balls described opposition leader Ed Miliband as “a leader in whom we can ask the British people to put their trust”, accusing David Cameron and George Osborne of “failure of leadership and abdication of responsibility”.

While admitting that Labour made “mistakes” on issues such as immigration from Eastern Europe, abolishing the 10p tax rate, inadequate banking regulation and failing to do enough to support training, he denied Conservative claims that excessive spending on public services was to blame for the financial crisis.

He went on to criticize the coalition Government of making “reckless, ideological, unfair” spending cuts which resulted in “ripping up” Labour’s balanced plan while “trying to cut the deficit faster any other country and choking off the recovery as a result”.

“The Government must adopt a steadier, more balanced plan to get our deficit down and take immediate action now to support the economy and create jobs here in Britain,” Mr Balls told the conference in Liverpool.

“Five immediate steps the Government could take tomorrow - and if they do so, we will back them.

“Call it Plan A-plus. Call it Plan B. Call it Plan C. I don't care want they call it - Britain just needs a plan that works.”

His five-point plan included a one-year cut in VAT to 5% on home improvements, repairs and maintenance and the long-standing Labour demand of a temporary reversal of January's “damaging” VAT rise to 20%. The shadow chancellor also suggested a repeat of Alistair Darling's tax on bank bonuses, using “the money to build 25,000 affordable homes and guarantee a job for 100,000 young people” as well as a one-year national insurance tax break “for every small firm which takes on extra workers, using the money left over from the government's failed national insurance rebate for new businesses”.  He called for the introduction of long-term investment projects, such as schools, roads and transport, to create jobs in the economy to boost growth.

John Cridland, the CBI director general welcomed that the plan catered to helping the unemployed but question whether the plan as a whole was affordable, noting that the reversal of the VAT rise could bill up to billions.  “Labour has form spending money it does not really have,” he said.

In dossier called “The Balls Plan”, the Conservatives have dissed the Shadow Chancellor’s proposal, labelling it a plan “B for Bankruptcy".

The report from the Conservative Campaign Headquarters, claims Balls' Plan B would increase the deficit by £87 billion per year by 2015 compared to the Government’s plans, while racking up National Debt by “£5,000 for every man, woman and child in Britain”.

The analysis concluded that debt interest payments will increase by £16 billion per year – or £500 for every taxpayer; all for the sake of reducing the deficit by a third over four years, rather than halving it over four years as Ed Balls promised.