But when things get tough, and we have to decide on how to share the burdens of a global recession, then a system which is fair to everyone becomes more important.

It will be tough just not for a particular industry or group of people but for all of us. Governments will need to borrow and spend to get the economy going again, but individuals and families will have to save to make ends meet.

Should the Labour Government give help to pensioners or young families who save, or should we simply help all those who have done the right thing, paid their bills and put some money away for a rainy day?  Should we further increase the Winter Fuel allowance for everyone, even if that includes very well off pensioners. The debate over universal versus targeted benefits is not a new one. 

When we came into government in 1997, one in five non-pensioner households did not have anyone in work. We introduced a minimum wage and used the tax system to ensure that being in work would always pay more than relying on benefits. 

Twelve years on I’d argue we just should take more people out of the tax system altogether by substantially increasing tax free allowances for all.

The top one per cent of taxpayers contribute about a quarter of income tax revenue and the top 10 per cent nearly half. Introducing a 45 per cent tax rate on those earning £150,000 sounds good, but would raise virtually nothing.

The Labour Party is proud of the achievements of the 1945 Attlee government. In 1950-51 a married couple with two children and one breadwinner would have paid less than 5 per cent of their income in tax and national insurance.

There is proud Labour tradition of taking people on modest incomes out of the tax system altogether. In the current recession this would give them the choice on how to spend their money – and would allow those in work and pensioners alike to keep the rewards. Now that would be fair!