Leaving the European Union is the biggest threat facing Britain, Ed Balls warned today.

Labour's shadow chancellor accused the Tories of 'flirting with exit' and warned walking away from Europe would be a 'disaster'.

Mr Balls sought use his speech to the British Chamber of Commerce to repair Labour's reputation on the economy after coming under attack from business leaders.

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Labour's shadow chancellor Ed Balls accused the Tories of 'flirting with exit' and warned walking away from Europe would be a 'disaster'

David Cameron has promised to renegotiate Britain's membership of the EU before holding an in-out referendum by the end of 2017.

But the Labour party has refused to match the promise, warning it would create uncertainty for business.

One shadow cabinet minister has admitted: 'Opposing a referendum is our only policy which businesses like.'

Today Mr Balls warned that Britain has succeeded by being an international trading nation and 'to walk away from Europe - our biggest trading market - would be a disaster'.

He told the BCC conference in Westminster: 'Britain must lead the debate for reform in the EU. Banging the table for change and for the EU to work better for Britain. But not flirting with exit and putting party interest above the national economic interest.

'Because Britain walking out of the EU is the biggest risk to our economy in the next decade. EU exit risks British jobs, trade and investment and the future prosperity of the UK.

'And every comment by senior Cabinet ministers saying they would be happy or relaxed to see us walk out, and every hint that a referendum could happen as early as next year - before any meaningful reform agenda could be achieved - only adds to the uncertainty and risk for British businesses.'

WHERE IS ED? ROW OVER CLAIMS MILIBAND SNUBBED BUSINESS Labour leader Ed Miliband faced claims he had snubbed business after not speaking at the confeence Labour leader Ed Miliband today faced claims he had 'snubbed' business leaders after not turning up to the British Chambers of Commerce conference. The Lib Dems claimed his absence was 'astounding' after a week in which Labour has been accused of being anti-commerce. BCC chief John Longworth said the Labour leader's absence from the conference was 'disappointing'. He told Sky News: 'It was disappointing because I think it was a great opportunity, a platform for the business community, businesses from all over the country, to set out the case.' Labour sources stressed that Mr Miliband was not 'dodging' business leaders and had already appeared at 10 economic conferences, including the Confederation of British Industry's in November last year, which Mr Cameron and Mr Clegg also spoke at. Shadow chancellor Ed Balls dismissed suggestions of a snub to business from the Labour leader as a 'silly story'. He told BBC Radio 4's The World At One: 'This is really scraping the barrel of trivia. Ed Miliband has spoken to the British Chambers of Commerce twice in this parliament, he spoke to the CBI a few months ago, he's at the Engineering Employers Federation in a few weeks' time.' 'I was there, as was Chuka Umunna, setting out a pro-wealth creation message, but pro-wealth creation which will change things so it works for working people. 'The Tories don't want that debate, and they certainly don't want to have a debate about HSBC or about their policies on Europe which are putting off investment and damaging jobs, so they make up these silly stories.' Advertisement

Labour leader Ed Miliband is now widely seen as anti-business, with captains of industry who once backed Tony Blair now warning of the disastrous impact of a Labour victory in May's election.

Industry leaders credited with the success of well-known chains including Boots, M&S, Pizza Express and Lastminute.com have turned their fire on Labour in recent days, warning victory for Mr Miliband would plunge Britain into an economic catastrophe.

But Mr Balls insisted that Britain faces 'difficult and risky and rather dangerous times' and called for a 'straight conversation about the risks we face'.

He argued that Labour would be 'pro-business, but not business as usual'.

He added: 'Promoting competition, not turning a blind eye to bad practice. Supporting wealth creation, but making sure everyone pays their fair share.'

The shadow chancellor argued that with working people £1,600 a year worse off than in 2010, more needs to be done to ensure rising prosperity for all.

He said: 'This is set to be the first time since the 1920s when working people are worse off at the end of the Parliament than they were at the beginning.

'So at a time when, even as our economy recovers, most people are not yet seeing the benefit in their wages and living standards, this is no time for complacency.

'If we are to win the argument that Britain can succeed in an open global economy, we have to show that our economy can deliver rising prosperity for everyone who works hard and plays by the rules. And that is not what people think is happening in our country at the moment.

'I want an open and competitive tax system that rewards work and supports entrepreneurs and long-term investment and wealth creation.'

The Tories have been forced to deny plans to hold the in-out referendum as early as next year, insisting time is needed to secure a better deal with Brussels.

Conservative Chancellor George Osborne insisted that Britain 'wants to stay in a reformed European Union'.

He told Bloomberg TV: 'The European Union needs to change so that it's a continent where jobs are created, prosperity is created.

'We also need to make sure that the relationship with members of the EU who aren't in the euro, like the United Kingdom, is a fair one.

'So those are our priorities going forward and we said that we will put this to the British people in a referendum. We said that that referendum will take place at the end of 2017. As the Prime Minister said earlier this year, if we can conclude the negotiations sooner, then we would be delighted.'

Conservative Chancellor George Osborne insisted that Britain 'wants to stay in a reformed European Union'

British Chambers of Commerce director-general John Longworth said the issue should be resolved one way or the other within 12 months of the general election in May.

Like the other main business organisations, the BCC is strongly in favour of Britain's continued membership of the EU.

But in an interview with the BBC, Mr Longworth said the country could not afford to wait until the end of 2017 - the final date by which David Cameron has pledged to hold a referendum if the Tories regain power - to decide the matter.

'We need to bring the referendum date forward because two and a half years of uncertainty isn't good for growth and investment,' he said.