The measures announced today will only remove at most a further 250,000 children from poverty by 2010. But on analysis the situation is even more disappointing. In calculating child poverty the Government has massaged the figures by removing housing costs from the calculation. If these costs are put back the real assessment of child poverty confirms that in fact 3.5 million children will remain in poverty in our society.

At the same time the Chancellor has done virtually nothing to tackle the unfairness of our tax system. Big business benefits from the lowest corporation tax in this country in decades, which is to be cut further on 1st April. Proposals to tackle the scandal of non doms, some of whom are paying less tax than their servants, have been watered down and there are no measures to address the £97 to £150 billions the Treasury now admits to losing each year from tax avoidance.

If after eleven years in office, a Labour Government cannot meet such a basic aim of lifting our children out of poverty, many will judge this period of government as the greatest missed opportunity in the history of the Labour party. There is a growing feeling that the Government is running out of both time and ideas.

John McDonnell is the Labour MP for Hayes and Harlington