More news on poverty comes today, with the New Policy Institute's analysis for Save the Children showing an increase in the number of the poorest children - although the position is expected to improve again as more recent budget measures begin to feed through. Which reminds us that there is nothing inevitable about high levels of poverty: policy can and has made a difference. A reduction of half a million children in poverty since 1999 hasn't come about by accident.

But we should be concerned that the continuing high levels of child poverty in Britain are matched by the lack of progress on reducing inequality: the two go hand in hand. Further measures to address income inequality are essential if relative poverty's to be reduced, and the political opportunity is there for the left to be bold in its approach. Harriet Harman and John Denham have both highlighted the issue again recently, and with the National Equality Panel's report for Harman, and Marmot review of health inequalities due imminently, the moment for action can surely be seized.

Labour's measures to increase family incomes have been important, as has the focus on protecting employment. And today's news that the economy has moved out of recession has shown the effectiveness of stimulus measures over the past 12 months. Now, as we look ahead to programmes to address the deficit in the public finances, it's important that we don't allow protection for low-income families to be reversed.

Protecting frontline public spending at the same time as cutting the deficit must turn attention to fairer tax. Here is the opportunity to bite into inequality - and in the process to gain public support. Recent initiatives to increase the top rate of income tax to 50% for those with incomes over £150,000, the tax on bankers' bonuses, and the removal of higher rate relief on pension contributions have all been met with public equanimity, even approbation - contrast with Cameron's plans for inheritance tax cuts benefiting the 3,000 richest estates.

There's scope for more imaginative and popular tax solutions, with Compass estimating that £46billion could be raised from closing loopholes and increasing tax rates at the top. Such a sum could wipe out child poverty - almost twice over - but just as importantly, in directly attacking inequality, embedding a more progressive system of taxation into our economic model would serve to secure and sustain the progress made to date.

To be sure the left must balance its moral purpose of a more equal society with an approach that encourages ambition and enterprise. But public reaction to the financial crisis has created the opportunity for a rebalancing in equality's favour - not least because the public can see that it was precisely because of unfettered greed at the top that we came to the brink of economic catastrophe, and that high levels of inequality have failed us all.

So it's not the moment for talk of reducing top tax rates, when their introduction has delivered a positive quadruple whammy for Labour - towards rectifying the deficit, reducing inequality, commanding popular public support and distinguishing us from our Tory opponents. Rather we should place the fairer distribution of wealth and income as the credible, popular and moral heart of Labour's plans for addressing the deficit and rebuilding the economy, and for securing, sustaining and achieving our goal of poverty eradication.

Kate Green, Labour PPC, Stretford and Urmston