I do not think you can push public expenditure significantly above 60 per cent [of GNP] and maintain the values of a plural society with adequate fre… - Roy Jenkins

I therefore think that our negotiations have achieved a satisfactory prospectus for an electable left-of-centre alternative to Thatcherism. And that was what the SDP was always intended to be: a party which was free alike of proletarian sullenness or of bourgeois triumphalism and which challenged both the old arrogance that the establishment always knows best (particularly if it can use secrecy to prevent anyone judging whether it really does) and the new heresy that the mystical entity of "the market" can run everything. A controlled economy is not much good at producing consumer goods. But "the market", in terms of protecting the environment or safeguarding health, schools, universities or Britain's scientific future, cannot run a whelk-stall. And if asked which is under greater threat in Britain today, the supply of consumer goods or the nexus of civilized public services, I unhesitatingly answer the latter.

My broad position remains firmly libertarian, sceptical of official cover-ups and uncompromisingly internationalist, believing sovereignty to be an almost total illusion in the modern world, although both expecting and welcoming the continuance of strong differences in national traditions and behaviour. I distrust the deification of the enterprise culture. I think there are more limitations to the wisdom of the market than were dreamt of in Mrs Thatcher's philosophy. I believe that levels of taxation on the prosperous, having been too high for many years (including my own period at the Treasury), are now too low for the provision of decent public services. And I think the privatisation of near monopolies is about as irrelevant as (and sometimes worse than) were the Labour Party's proposals for further nationalisation in the 1970s and early 1980s.

Let there be no doubt that our present rate of inflation is the main cause of our economic difficulties. There never has been a more mistaken piece of economic analysis than the view that we should accept inflation to avoid unemployment. Inflation today, so far from being an alternative to unemployment, is its main cause. If our rate of cost increase is allowed to continue close to twice that of the average for the developed world it will increasingly price us out of world markets. Employers...will have to restrict their activities and still more their labour force in response to mounting and uncontainable wage and salary bills.