Ed Balls said he could start work with Vince Cable immediately to kick-start the economy with a capital spending programme.
Mr Balls insisted he wanted an outright win for Labour in 2015 but said that in the meantime his party should be working with the Liberal Democrats.
Speaking to Andrew Marr on the BBC, Mr Balls said:
I wish George Osborne would see Vince Cable as a man to do business with and listen to, rather than telling the newspapers he is putting his allies in (to the Business department) to try and surround him and hold him back.
Vince should be listened to on banking reform and on the economy. I could work with Vince. I would like the Liberal Democrats to say right now that this coalition has failed and we're going to change course.
More top news
YouTube superstar Alfie Deyes got a sense of how far he has come when thousands of fans descended on his latest book signing in London.
The last blog from woman about her final days after she was diagnosed with cancer - and the things she valued in life - has gone viral.
Ed Miliband would rather discuss working families and the NHS, but the question of English 'home rule' looms large over Labour's conference.