It wants a modernised centre-left rather than a radical centre. It accepts tight restrictions on mobilising resources through the state but nonetheless wants to use the room for maneouvre it believes exists. It notes that 'New Deal' for example is a classic case of 'tax and spend'. There is more scope for such judicious departures from orthodoxy. The extra room they buy should be used to maintain the principle of universalism in welfare services.
Universalism is desirable on several grounds.
First, while apparently 'expensive' in requiring higher taxes or contributions, it may actually be efficient. The middle classes may get a good deal in that the extra taxes would still be less than the private charges that are the alternative. Second, universalism is necessary to protect the position of the poor or nearly poor. The middle classes will not support a decent service if it is quite separate from the private provision they have to make on their own account. Fourthly, targeting or safety net services creates financial disincentives for those people on the fringes of qualifying.