Nick Pearce

Labour should focus on social justice if it wins a third term, the head of a top think tank has said.

Nick Pearce of the Institute for Public Policy Research told ePolitix.com that the prime minister should be bold and focus on a domestic agenda with one broad theme.

"If I had to say one thing it would be 'keep focused on the goal of social justice'," he said.

"We’re at a point where the government needs to refresh and renew its vision. We at the IPPR certainly want to see it achieving progressive values of social justice, of full employment, sustainability and democratic renewal. These are the things Labour needs to tell a stronger story about.

Middle England

Pearce argued ministers should consider radical and controversial policy ideas that might not necessarily prove popular with middle England.

"The key issue is that on things like transport, Labour has the courage of its convictions. That’s things like road user charging, tolls and so on. It’s clear that’s the way forward," he said.

"Likewise on the House of Lords, I think there’s a recognition emerging now that a fully appointed House would not be tenable. We do need greater democracy in the proposals for a second chamber. There is a need to be more imaginative and bold about some of those policy areas."

Top-up fees

In his first interview since being appointed IPPR director, the former special advisor to David Blunkett also said ministers had badly handled the issue of university top-up fees.

"I think the policy was right but it was certainly badly handled - at least to begin with. It took a long time to address the concerns that backbenchers had and to focus on the social justice arguments for tuition fees and in particular about access to higher education for people from lower social economic groups," he said.

"The policy was right; it’s progressive and fair. But certainly the politics could have been handled better.

I think the issue for us in the higher education debate was the progressive case for tuition fees. The fact that there has been a huge middle class subsidy for many years in terms of higher education costs while other parts of the education system - particularly further education - have been neglected."

Public spending

On the day the Conservatives revealed their latest policies on spending, Pearce said finance would be the key issue over the coming months as the policy agenda shifts away from Iraq.

"The fiscal position is tighter than before," he said.

"The previous big increases in public expenditure can’t simply be repeated at the levels that they were. This requires the government to look very hard at what its priorities are and where the money should go.

"That will also help determine what’s in the manifesto for the next general election because you can only promise what you can pay for. It’s a very important year for taking the agenda forward for coming years."

Pearce also praised the Big Conversation launched by the government to get more people involved in policy debate.

"I think the Big Conversation is a genuine effort at involving people in a new dialogue with government. I think it’s well intentioned," he said.

"It’s been designed in a way to draw people into conversation with the government and in the end the test will be whether people feel it’s been a genuine process and that they’ve got something out of it."