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Lord Glasman - self-styled creator of the "Blue Labour" philosophy - made the claim at a fringe meeting at the Labour conference in Liverpool.
BBC: Labour conference: Call to axe half of universities
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The peer, who is a university lecturer and describes Blue Labour as a mix of patriotism and populism, is said to be a regular visitor to Mr Miliband's office.
BBC: Labour conference: Call to axe half of universities
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In our view, the problem is more exactly the internalisation of shareholder value pressures, and to illustrate the point we present below a kind of thought experiment about a different Apple (without shareholder value) which was willing to accept lower margins and employ more US blue collar labour.
FORBES: Apple's Foxconn Jobs Just Aren't Coming Back: This is Complete Nonsense
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He accused Ed Balls, a former adviser to Gordon Brown and now shadow chancellor, of "sucking up" to the banks and letting them get away with "blue murder" during Labour's time in power.
BBC: Nick Clegg: 'I will stand again in 2015'
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All this frustrates the Labour Party who think the Conservatives have got away with blue murder with their tax plans.
BBC: Tattooists and tax
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But he attacked Labour for allowing the banking sector to get away with "blue murder" while in power.
BBC: Nick Clegg: 'I will stand again in 2015'
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Southampton City Council's Labour leader, Richard Williams, says the suggestion comes completely out of the blue.
BBC: Ford Southampton Transit plant 'could close'
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Labour MP for Hull East Karl Turner said the announcement had "come out of the blue" and was "terrible news for Hull".
BBC: Seven Seas to close Hull factory
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Labour know that the loss of Eastleigh's place as a railway town, and other blue-collar employers like the Pirelli factory, means they have to change their appeal.
BBC: Eastleigh by-election a grudge match
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Of course, Mr Letwin and Mr Cameron, both old Etonians, may simply be attempting to put some clear blue water between themselves and the more populist - or wilfully philistine depending on your point of view - elements on Labour's front bench.
BBC: David Cameron