There are honestly-held differences of opinion in the party about whether it was right for Hazel Blears and James Purnell to resign in the way they did this week. But one thing we can’t lose as a party is the direction of travel both politicians embody. Blear’s commitment to wresting power from the state and to the people has become a battleground for all three parties and should form the beating heart of Labour’s ambitions for the country over the coming months. During his time at the DWP James Purnell has ensured that Labour does everything it can to get people into work in spite of the recession to beat poverty. Though they have left Cabinet, it would be a mistake to row back on these programmes of reform – they provide the basis for a way out of the crises we face.

It is rumoured that the Prime Minister will announce plans next week to seize back the domestic agenda. This would be a welcome move, but this is not the time for a welter of initiatives, policies designed to buy-off certain parts of the electorate or simply a repackaging of existing policies. We need to see a strong sense of direction, conviction and swift decision-making from our leadership – this is our last chance to make the case for why Labour should remain in government until next year, and to build towards our plans for a fourth term. So what should we use the time we have to do? There are three concrete areas which we think could help Labour start its journey back to being the party which best represents the hopes and aspirations of the British people.

First, we need to renew our commitment to ending child poverty, but it can’t simply be through further redistribution, important though that is. It must be through bolstering the support that we give to parents. Too many families, particularly lone parents, struggle with balancing work and their caring responsibilities. Our focus on getting mothers back into work is the right one, but without a system of universal childcare it won’t work. The money is tight, but by starting with scrapping the almost universally disliked plan for ID cards, we could find the funds to pay for it.

Second, we should cut 25% of the revenue received by Whitehall and some quangos and relocate the money and responsibilities to local government and directly elected mayors where appropriate. We have written before about the need to translate warm words on localism into action, and after what looks to be a very poor showing at the local elections, this could be the time to be brave and put our trust in local democracy to take forward the next stage of public service reform. We will have to accept that there will be a postcode lottery to some extent, but if we argue for a high minimum floor of provision, we can ensure that the debate doesn’t become a fruitless exercise in merely exposing differences across authorities, but debating which policies actually work.

Third, we should use the fact that the arcane workings of our democracy and Parliament have gripped the public and media by finishing the constitutional reform we have pledged over the last three elections. There is a good case for holding a referendum on proportional voting on the day of the next election, and we must finally move to a Parliament which we can properly call democratic by electing the House of Lords. Progress is also campaigning for a Citizens’ Convention to look at issues which range far wider than PR and the upper house, but reaching decisions on these two would pave the way for a more progressive politics in this country.

Labour activists and supporters will be rightly despondent at the events of the last few weeks and the election results. But with the right leadership and sense of direction, there is still time for us to pull together to keep the Tories out of Downing Street.