All the many hopes which were projected onto April’s budget were never likely to be fully realised, but those who have banged the drum for targeting tax rises on the rich are finally celebrating victory. Whether this represents a winning strategy for Labour at the next election, however, is debatable.

It’s worth revisiting the reasons why New Labour continued to defy its leftwing critics and kept to its manifesto pledge of not raising income tax. First, it was to demonstrate that the party no longer represented an old politics of envy and prejudice, recognising that encouraging entrepreneurs and businesses was key to ensuring Britain grew its economy so that all citizens could benefit from higher tax take returned in the form of improved public services. Second, it was because convincing arguments were made about the relevance of the ‘Laffer curve’ – the point at which increasing tax rates start to provide diminishing returns. And finally, it was because the sums raised by increasing the top rate of tax were deemed to be not worth the loss of political capital that might result if critics were successful in badging it as a return to the old politics.

It may be that none of these arguments are relevant anymore, though progressives should still be alarmed that the right have used the increase in top rate tax to proclaim that New Labour’s principles have finally been abandoned. It is true that the economic crisis has left the majority of the public hostile to bankers and concerned about excess wealth. It is also true that societies with a more equal distribution of wealth display better social outcomes and greater levels of personal happiness. What is less obvious is whether using the catalyst of the recession will cement support in the long term for higher taxes for top earners.

When Labour raised National Insurance in its second term, it was more or less hypothecated to provide more money for the NHS, fulfilling the pledge of bringing spending in line with Europe. The public were willing to pay for the rise because Labour showed where it would go. It seems a missed opportunity, therefore, that the government did not follow Barack Obama’s lead and deliberately link the rise on high earners with a concurrent cut in tax for lower and middle income taxpayers. Or why not have pledged the money raised to those children still trapped in poverty, thereby fulfilling a manifesto pledge while also contributing to the fiscal stimulus? Given that the money made available by the 50p increase represents a drop in the ocean of the deficit, the public would have been more reassured if they had seen some of it returned to them in a more tangible form. It would have also helped to neutralise the feeling that this move was more about politics and dividing lines than good economic policy.

The worry that some in the party are pursuing politics to the detriment of good policy affects more than just the budget. The McBride affair, while being morally reprehensible, was also politically inept. The protagonists first failed to understand the nature of the internet, which eschews anything that smacks of centrally-guided dictat, and also misunderstood the motivations of the vast majority of party activists who see bully-boy mudslinging in the same light as the anti-politics propagated by their target, Guido Fawkes. Overcoming this dark episode in the party will need more than ethical blogging statements. The leadership needs to send a message that it rejects the ‘off-the-record’ politics of smears, and cares more about the ‘on-the-record’ politics of ideas. With around a year to go before the next general election, ministers should be encouraged to think out loud about what a fourth term government might look like, and show the public that we have the courage of our convictions and policies to match.

Bravery is also needed in the runup to the European elections. At the moment it seems that Labour can barely bring itself to recognise that it’s a pro-European party, an affliction which has haunted us since our decision to base entry into the euro on the five economic tests. It shouldn’t be a surprise that having failed to consistently make the case for Britain as an active, constructive member of the EU, the public have continued to dislike the idea of Europe. Yet we know the benefits the EU can bring, particularly when accompanied by a hard-working team of Euro MPs. Whether it’s guaranteeing rights for agency workers, reducing mobile phone charges, anti-discrimination legislation or fighting climate change, Labour has secured progressive change for British people through membership of the EU.

Which is why Progress is pleased to have put together a short guide to campaigning in the Euro-elections for members to use on the doorstep. Party resources are naturally tight at the moment, but because it is a proportionally representative election, every vote does count and is needed even more so to keep out the BNP. No one thinks these elections will be easy, but now is not the time to sit back and let others struggle through the streets. This is Labour’s test run for the general election – so let us show the fight we can put on.