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Former Labour leader Neil Kinnock has put the economy at the centre of his message to Welsh voters as he urges the country to reject another half-decade of Conservative-led Government in Westminster.

The former Islwyn MP argues the management of the economy in the wake of the May election is the “fundamental question for everybody”.

He said: “It can either go in the Tory direction of more squeeze, especially on vital public services and on incomes; or in the Labour direction of an investment-led and sustained recovery and that is the absolutely basic question for every family, every community, every company.”

The peer, who be campaigning in Llandudno Junction on Thursday evening, had a strong warning for voters in supposedly safe Labour seats considering a vote for Ukip.

He said: “People with those kinds of thoughts are a danger to themselves simply because in the lottery of elections you simply can’t take risks like that.”

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Lord Kinnock claimed there were “fundamental areas of day to living where Ukip can only be considered a foe of secure life”.

He said: “It’s important that people look at what their candidates are really standing for and they are not standing for the people’s interest.”

The former EU commissioner also has grave concerns about the prospect of the Assembly gaining income tax powers.

Arguing that the Welsh economy needed “heavy investment” and did not generate “gigantic tax revenue,” he turned his guns on the Westminster coalition, saying: “In their refusal to change the Barnett formula, in the scale of cuts that they’ve inflicted on Wales in the course of the last four years, everybody should treat any Conservative proposals for devolution of tax powers with the greatest possible suspicion. They are not intending to do good, that’s for sure.”

Related:What is the Barnett formula?

The ex-Leader of the Opposition predicted that Ed Miliband will come even harsher attacks than he suffered during his election battles.

He said: “Ed is immensely resilient. He’s shown he’s got a lot of bravery.

“He is perceptive about the problems facing people and determined to deal with those. I think his combination of intelligence and courage and patriotism will stand him in good stead.

“The other huge leadership quality he’s got is calm. So whilst he doesn’t welcome attacks – nobody does – he is very capable of working without distraction on trying to serve the country.

“And that’s the only way to deal with it. You don’t grow a shell, that wouldn’t be human.

“But what you do is keep your total focus on the job you’re trying to do for the country and that’s what Ed does so he needs no advice from me on that subject.

“Though, I have to say, I think in many ways the attacks on him have been and probably will be even more remorseless and vicious than they were on me – which is saying a great deal. But he’s a real threat to them and they will treat him accordingly.”

Former Welsh Secretary Peter Hain has written a new book, Back to the Future of Socialism, in which he argues for a £30bn economic stimulus package over two years.

Lord Kinnock said: “I’m speaking at Peter’s book launch next Monday and what he’s written is thoughtful and thought-provoking – there’s no doubt at all about that...

“I think that what Labour is doing is setting aside the failed idea that as long as you look after the rich they’ll look after everyone else.”

Claiming there was “cohesion between Peter’s thinking and the actions proposed by the Labour party,” he continued: “I think Labour’s learned the lesson of neoliberalism. I think they’ve learned that what I used to call an enabling state has got a very important part to play in the mixed-market economy.

“I mean, nothing that Labour is proposing will be damaging to business. Obviously, on the contrary, it will facilitate the expansion of business, greater success for small and medium-sized enterprises and everything that goes with that.

“But what they won’t do is to take the casual attitude to financial regulation that’s been a feature of the last 35 years and they will not give a soft ride to those who have become very wealthy and have not made a proportionate contribution to our society.”

Comparing the present situation to the time of the 1992 election, he said low interest rates meant there was “much more room for investment”.

He said: “I’m very happy to say that Labour is responding to that change and wants to take advantage of the combination of need for investment in the public and private sectors and the very low interest rates.”

Labour’s plans to introduce a mansion tax on properties worth more than £2m have come under fire and concerned Lord Mandelson, but Lord Kinnock argues that safeguards will ensure it will be rolled out fairly.

He said: “Unlike the poll tax and unlike the council tax, Labour will be taking proper heed of the real position of householders, even if they are in very expensive houses.”

His son, Stephen Kinnock, is standing in the safe Labour seat of Aberavon.

Speaking as a proud father, he said: “It’s great and he’s really thriving on it. I mean, he’s totally stuck-in, nothing is too hot or too heavy. It’s the attitude he’s brought to everything; to sport, to study, to his academic work, to his professional work, to his business work.

“That’s how he’s built, which is terrific. If you ask him for 100%, he’ll give you 150%.”