ED BALLS, the shadow chancellor, has been accused of trying to dodge a television debate with George Osborne.

Mr Osborne and Mr Balls shook hands on the plan to hold a debate during a joint television appearance on the BBC’s The Andrew Marr Show earlier this year.

The debate is due to take place on Thursday, with Danny Alexander, the Liberal Democrat Treasury spokesman, but sources said Mr Balls was attempting to change the conditions.

Labour is said to be insisting that the UK Independence Party sends a Treasury spokesman to take part as well.

Proposals were said to be “at a very advanced stage”, with Andrew Neil, the BBC presenter, lined up to host the debate.

The formal BBC proposal document states that this debate was always intended to involve Labour, the Conservatives and the Lib Dems, without Ukip.

However, broadcasters have been under orders to include Ukip in their main coverage during the election on the basis that it now ranks as a “major party”.

A Conservative source said: “Ed Balls has talked tough only to completely lose his bottle. He is both cowardly and chaotic.”

The development came as Ed Miliband, the Labour leader, sought to launch his housing policy with a pledge to reinvent a century-old housing bond system. The scheme is intended to generate £5billion to build 125,000 new homes.

Mr Miliband said he wanted to use the new ISA scheme for first-time buyers, which Mr Osborne announced in the Budget last month, in order to finance wide-scale house building.