Ed Balls has told his party's conference a child benefit freeze, a cut in politicians' pay and higher tax for top earners will form part of Labour's plan to bring the deficit down.
The shadow chancellor presented a 1% cap on rises for the first two years of a Labour government as one of the "tough decisions" needed to deal with the deficit if the party takes power next year.
In a speech in Manchester, Mr Balls insisted: "We are tough enough to make the difficult decisions. We won't spend money we can't afford."
He also hit out at the "unfair, out-of-touch and failing Tory government", and pledged to raise the minimum wage, and scrap the so-called bedroom tax.
Mr Balls says a cap in child benefit rises will save £400m New free schools would be blocked in areas where there is an excess of pupil places, police and crime commissioners would be scrapped, and the controversial "shares for rights" scheme, that allows workers to give up some rights such as unfair dismissal in return for shares, ditched.
And Mr Balls apologised for the party's past mistakes, including over immigration and bank regulation.
He went on: "It's the oldest truth in the book - you can never, ever trust the Tories with the NHS.
"We don't just need to learn from our mistakes, we also need to put right mistakes this government is making.
"So we won't pay for free schools in areas where there are excess school places.
"The next Labour government will scrap the bedroom tax, too.
"Scrap police and crime commissioners so that we can do more to help frontline policing."
A 5% cut in ministerial salaries is also on the cards Criticising the coalition cut to the 50p top rate of tax, Mr Balls promised to balance the budget in a "fairer way".
He pledged Labour would not "walk away from Europe" and said the party had learned from its past and mistakes.
Sky's Political Editor Faisal Islam said it was a "passionate speech" from Mr Balls, pitched to appeal to the party's core vote.
Speaking on Sky News ahead of his appearance Mr Balls said he would not "duck or flinch" from the tough decisions and he defended claims the savings provided by the measures would be miniscule.
He said the child benefit move would save £400m in the next parliament, plans to end the winter fuel allowance for rich pensioners would bring an extra £100m a year of savings and the introduction of a 50p tax rate for those earning more than £150,000 would bring in £3bn.
Labour also plans to cut ministerial salaries - taking £7,125 off the Prime Minister's annual wage, and £6,728 from Cabinet ministers.
The party also has plans to raise the minimum wage to £8 an hour, and introduce a jobs guarantee for young people and the long-term unemployed funded by a tax on bank bonuses and limiting pensions tax relief for the highest earners.
Treasury Exchequer Secretary Priti Patel poured scorn on Mr Balls' plan for the economy, claiming Labour would put the deficit up, not down.
The Children's Society said Labour's plans to freeze child benefit would leave the average family more than £400 a year worse off by 2017 and urged the shadow chancellor to reconsider.
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