This morning, Ed Miliband will welcome and endorse the IPPR’s Condition of Britain report, which forms the backcloth to Labour’s manifesto.

The theme of his speech – big reforms not big spending – speaks to the dilemma Labour has faced since the crash: how to appear relevant and radical without seeming fiscally incontinent.

It also strongly echoes the central theme of The Purple Book, published by Progress, and written by many of Ed’s shadow ministers, that the next Labour Government must decentralise and devolve power away from the central state.

In his speech in Bethnal Green, Ed Miliband will say:

I have called for people-powered public services, giving more powers to parents in shaping the future of their schools and patients in shaping the future of their hospitals. And it is also why I support this report’s call for power to be devolved down to the most local level possible.

The report itself, the length of a Dan Brown novel, aims to repeat the success of the Commission on Social Justice, set up by John Smith after the 1992 defeat, and reporting to Tony Blair two years later. It formed the basis of the New Labour revolution.

The report of the Commission on Social Justice was written up by its secretary David Miliband. It contained four propositions: that the welfare state should be a springboard, not a safety net; that we must radically improve training and education; for real choices in work, leisure and retirement for men and women; and the reconstruction of ‘social wealth’ from the family to the local council.

Twenty years on, and the Condition of Britain calls for reforms to get NEETs into training or work; a higher rate of job seekers’ allowance for those who contributed for over five years; and greater powers for local authorities to solve the housing crisis.

Ed will say:

We face an economy where inequality is rising, year after year, and where so many people feel locked out of the chances that previous generations enjoyed. Turning that round is the mission of the next Labour government.

And we must do so at a time when to our country continues to confront a fiscal situation the like of which we have not seen for generations, the result of a financial crash the like of which none of us have ever seen.

So we can’t just hope to make do and mend and we can’t just borrow and spend money to paper over the cracks. Instead, we need big, far-reaching reform that can reshape our economy so that hard work is rewarded again, rebuild our society so that the next generation does better than the last, and change our country so that the British people feel it is run according to their values. That kind of reform is going to be tough but it is the way we change Britain.

The importance of this report is that it shows there is a distinctive and compelling answer to addressing the longstanding failures of our country which mean big changes, not big spending.

The report aims to neutralise the Tories’ main line of attack, that the next Labour government would overspend and create economic chaos. It also challenges the Tory argument that Ed Miliband is somehow a prisoner of the leftwing and the unions.

Instead, as Progress has been arguing since the 1990s, Labour can be radical without deserting the centre ground, transform life chances for the poorest, while retaining the support of the middle class, and govern for all, not merely in the interests of a few.

After a few bad weeks, this huge report puts Labour back on the attack, with some meaty analysis and some eye-catching policies.

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Paul Richards is a writer and political consultant