It is a tough time to run for leader of Welsh Labour. I remember that during one of the first speeches I gave in the national assembly I said that it was going to take a generation to repair the damage inflicted by a Tory government to many, once thriving communities in Wales. Now, half way through that task, a global economic crisis suddenly calls into question the affordability of some of our most important anti-poverty and regeneration programmes. Contrast this looming inheritance for Labour’s next leader with the doubling of the Welsh assembly’s budget from 1999 to 2008.

Employment has soared, but inequality remains. Still one child in three lives in poverty. So whilst the ‘to-do’ list remains long, budgets tighten. Allied to this Welsh Labour is facing its own crisis of confidence – having seen the Tories win a popular vote in Wales for the first time in 100 years during this summer’s European election. The response requires a rapid re-discovery of our radical heritage – a reconnection with the people, and the language, that we have lost in the last three elections.

The response also requires from Welsh Labour’s next generation of leaders imagination and innovation; a commitment to working differently with partners from all sectors, to ensure that smaller budgets don’t mean growing inequality. Innovation in the public sector can deliver efficiencies with less pain and less job cuts when change is led by those who deliver and use services. We have seen local government departments redesign themselves given the chance across England and Wales. Co-operative and mutual solutions must also be brought into the heart of government thinking – and as a Labour & Co-operative assembly member, this is long overdue in my book. The plain truth is that co-operative policy proposals, particularly in response to the shortage of affordable housing, can offer recession-proof solutions to our most pressing social problems.

Finally, we must look to others with expertise and resources who can help with some of the heavy lifting. The sea change our Labour values demand in the quality of education given to our must vulnerable children in Wales cannot wait for coffers to bulge again. Change must come now. That is why I want to enlist the help of independent schools in Wales to provide education and support for those children being denied a fair start in life. This should begin, where suitable, with looked after children whose educational outcomes remain some of the worst in Europe. The country should not just be their legal guardian; we must look to give them hope of a better future, as meagre recompense for their circumstances. That is what good parents do. Let me be clear, I am not talking about assisted places; I’m talking about the independent schools in Wales really earning their charitable status and helping to deliver on a new national mission to eradicate child poverty.

With imagination and determination in equal measure, Labour can continue its long rescue mission in Wales, even with less money – but we must leave no stone unturned, and we must be unafraid to ask favours of our friends in these most difficult of economic circumstances.