ABSTRACT
The essential argument will be that if Labour can achieve electoral success, and if it can then implement a successful economic strategy, then it can reverse the decline in its support base. The Labour government should initiate economic expansion very slowly at first, with an initial package of expansionary measures adding up to perhaps no more than 1 per cent of GDP. Unfortunately the Labour government may not be in a position to control the speed of reflation. Labour should have the courage in opposition to argue the case for an incomes policy, and attack the fundamentally dishonest argument that Labour can plan the economy and trade without planning incomes. Labour is committed to the reforming of taxation as well as benefits and this is a clear departure from the 1973 programme, which discussed these questions separately.
