Ed Balls on Labour's cuts policy
18 January 2012 Last updated at 00:52 GMT
The Labour leader, Ed Miliband, has insisted he will not change his policies on cuts, despite union leaders criticising his decision to support a cap on public sector pay.
The Shadow Chancellor, Ed Balls, has also angered the unions by refusing to promise to reverse the Government's public spending cuts.
Mr Balls told Newsnight he still felt the coalition was cutting "too far and too fast" but he said Labour had to be realistic about dealing with the economic crisis.