BOLTON’S Labour MPs have backed shadow chancellor Ed Balls after he announced that a Labour government would have to make tough and potentially unpopular decisions on the economy.

But there was a mixed response to plans laid out by Mr Balls that could see child benefits capped until 2017.

Mr Balls, speaking at the Labour party conference in Manchester, announced a range of measures that he hopes will prove Labour are intent on balancing the nation’s economic books.

And he said that If a Labour government comes in next May, child benefits will not rise in line with inflation but instead by a fixed rate of one per cent until 2017 — saving a potential £400 million.

Bolton North East MP David Crausby said while he was enthusiastic about balancing the books, he would “struggle” to get behind a cap on child benefits.

He added: “That is something I can’t be too enthusiastic about.

“But I do have some faith in Ed Balls that he can sort out the economy — the Conservatives said they would deal with the debt but they have taken it from £800 billion to £1,400 billion.”

Julie Hilling MP, who represents Bolton West said: “It is important to note that Ed Balls did announce other measures such as free childcare that will help low-income families.

“But the reality is we have to be responsible — I think the public don’t want to be told that everything is fine when people are facing a tremendous cost of living crisis.

Both Ms Hilling and Mr Crausby backed plans announced by Labour leader Ed Miliband prior to the conference, which said the party would raise the national minimum wage to £8 if elected in May. The minimum wage for workers over the age of 21 is currently £6.31 but is set to rise to £6.50 on October 1 this year.

There have been fears expressed by small business owners about their ability to cope with Mr Milliband’s proposed rise.

Mr Crausby said: “We will never cut our way out of debt — the most important way to get out of economic difficulty is to work our way out of it.

“People were against the original minimum wage which Labour introduced, but it has been a tremendous success and benefited the whole economy.”

Ms Hilling added: “At the moment if someone is earning the minimum wage and that wage is built up by tax credits then that is subsidised by the taxpayer, that’s the reality.”

The conference will today hear a keynote speech from Labour leader Ed Miliband.