Gordon Brown’s apparent decision to build more nuclear power stations because fuel prices are going through the roof is bizarre. It takes 15-20 years to build a nuclear power station. Hard-pressed hauliers and the fuel poor cannot wait that long. Nuclear power is irrelevant to addressing the present cost of fuel. And it can do next to nothing to ease the cost of heating homes.

Rising oil prices are already significantly reducing car and plane use. For home heating, the sensible way to proceed is by a rapid shift to domestic renewable energy: solar, wind-power, air or ground heat pumps, biomass (wood-burning boilers) and micro-generation. Germany is already proving the huge success of this policy through feed-in tariffs which enable families to generate their own energy and sell on any excess to the national grid at a profit.

Sadly, the British Government has turned its back on such ideas because it is committed to industrial vested interests. We hear a lot about empowering the consumer, but where this would really count – with decentralised energy systems – the fossil fuel and nuclear industries have the inside track.

This is not the only example of Government prejudices holding back desperately needed changes. In the current turmoil in financial markets, as the crisis broke and it became clear that City trading in near-worthless financial derivatives or “structured investment vehicles” had been a major ingredient in the collapse, it was decided there would be no change in light-touch regulation.

No committee of inquiry would be set up to deal with the rottenness of the financial system. Despite the toxic mix of poor accounting transparency, risk-laden financial products, evasive offshore operations, weak banking regulation and a gross lack of public accountability, a return to business-as-usual (if that were possible) was judged better than cleaning out the Augean stables.

As far as housing is concerned, the shortage of social, affordable housing has reached crisis levels. There are 1,634,000 households on the waiting list in 2004, according to the latest available data. The actual figure is probably nearer two million. In addition, nearly 100,000 households are registered homeless. Yet virtually no council houses have been built over the past 10 years.

Local authorities get no grant from the Government for house-building and are forbidden to borrow on the open market against the security of their housing stock to fund the tens of thousands of affordable houses for rent that are needed. However, housing associations are permitted to borrow on the market, to an extent equal to their grant from the Government, so that their house-building is doubled. Making a political point against council housing because of an obsession with owner occupation is wholly unacceptable.

If council tenants want their homes to be repaired and modernised, they have been required to vote in a ballot either to be transferred to a private landlord, a housing association or a so-called arm’s length management organisation. If they reject these options and opt to stay with the council, their homes have simply been left to deteriorate.

This is about ideology, not meeting housing need. Are ministers oblivious to the needs of the quarter of the population with the lowest incomes who do not have the wage levels or the regularity of employment to afford owner-occupation when mortgage debt to income is now on a six-to-one ratio or even higher?

Some people are rather better off. The chief executives of the FTSE 100 companies now take home on average more than £71,000 a week. Meanwhile, employees in their companies on the minimum wage take home £200 a week – 350 times less. Like other bosses before him who brought down their companies, Adam Applegarth was able to walk away from Northern Rock with a golden goodbye (£760,000 in his case), while hundreds of jobs could be lost in the north-East of England with little or no compensation.

Non-domicile tax refugees, many of them millionaires, are untroubled by the Inland Revenue because taxing the rich is a reminder of the bad old days. The Treasury has even retreated from the minimalist proposals on non-doms.

The fiasco over the abolition of the 10p tax band has still not been properly rectified. Alistair Darling’s compensation scheme, which still leaves 1.1 million of the 5.3 million losers worse off, comes to an end after one year. What is needed is not a bit more tax credit adjustment, but the re-introduction of the 10p tax rate with the £6.6 billion cost funded by redistribution from the richest 5 per cent in society with incomes over £150,000 whose wealth has quadrupled under this Government.

The enthusiasm for the private sector in all things has led to more problems. Through 1997-2002, the public accounts were in surplus. However, instead of the huge public rebuilding programme being financed cheaply via the Public Works Loan Board, the decision was made to hand over the construction and management of new hospitals, schools, roads and prisons to Private Finance Initiative schemes. This is a distinctly “unsound money” policy – top-slicing public expenditure for 30-50 years ahead, pushing a number of health trusts into bankruptcy and opening up re-financing scams offering even bigger profit rake-offs. And it has been pushed through with future liabilities for the public purse of more than £100 billion, even though many surveys have found that the PFI does not generally offer the best value for money.

The poorest in our society are probably more vulnerable now than at any time for a century and workers can still be arbitrarily dismissed in their first year of employment without any rights. Yet the Government continues to restrict trade union rights. Nor will it implement the European Union’s Charter of Fundamental Rights for all citizens, which all the other 26 EU member states have accepted without demur. The charter bans excessive working hours (British workers work longer hours per week than anyone else in Europe) and would allow secondary action in industrial disputes (which is not an issue anywhere else in Europe).

It’s not Gordon Brown’s leadership that’s the problem. It’s the policies that have alienated Labour’s core vote. Changing the leader will alter little unless the policies are altered in a manner to convince those voters Labour is now fully on their side.

Michael Meacher is Labour MP for Oldham West and Royton and a former environment minister