In this critical account of New Labour's economic and welfare policies in their first two terms in office, John Grieve Smith suggests that, far from pursuing any radical new agenda, they have been actively consolidating the Thatcherite Revolution. If Labour is to offer a genuine alternative to the Tories, and achieve its long standing objective of a fairer society, radical developments in policy are needed. John Grieve Smith discusses the policies needed to ensure expansion and full employment here and in the rest of the European Union. He examines the whittling away of pensions and other social security benefits, and the growing reliance on means testing, together with the need for higher and more progressive taxation if the quality of health and education services is to be improved. The greatest challenge of coming decades is to develop more effective global and regional international institutions in the economic and other fields. Here the author puts forward a programme of major reforms of the global financial system to make both developing and industrialized countries less vulnerable to the instability of financial markets. This new and updated edition of John Grieve Smith's lively and controversial book is a timely contribution to current political debate.