What on earth is going on here?

“An artificial ‘living wage for London’ could distort labour markets and prove poor value for money. Moreover, in seeking to reflect perceptions of the cost of living, this proposal could also raise inflation expectations at a time when increased vigilance is needed on inflationary risks. We do not believe it is necessary or appropriate.” Source: The Guardian.

Now, who said that? A member of the Tory shadow cabinet? No – Ed Balls, the Children’s Secretary – even London Mayor Boris Johnson supports the living wage. What on earth is The Labour Party doing on the wrong side of this argument? Sometimes I despair.