As the Conservative party’s leadership election descends into an ugly no-deal Brexit competition, it is fair to say that there hasn’t been much serious discussion about what the Tories want a post-Brexit Britain to look like. There has been the usual 1980s-style obsession with swingeing tax cuts, and some back-of-a-cigarette-packet attempts to reverse some of the cuts that both of the contenders voted for, but it’s been left to others to talk about the harsh realities faced by millions.

A report, There is an Alternative, which was published last week by the IPPR thinktank, brought a welcome blast of cold air to anyone who thought austerity had come to an end, as Theresa May promised it had last year. The authors lay bare the deficit in care, which has terrible consequences for those who need it and their loved ones, who are often having to fill the gap themselves.

The authors also describe the deficit in skills that leaves many in the misery of low pay and at risk of automation. They talk about the deficits in healthcare, especially mental health, and the deficit in economic security that comes from zero-hours contracts in an era of huge cuts to in-work benefits.

Putting an end to this will be at the top of my priorities for the next Labour government, but we can do better than reversing cuts if we are to build the richer society that can ensure quality of life for all its citizens.

That means building a more prosperous society, with investment around the country, restoring trade unions as a force in the workplace, and driving up productivity to build a high-wage economy with good sustainable jobs as part of a green industrial revolution.

A derelict mill in Rochdale, Lancashire: ‘That means building a more prosperous society, with investment around the country.’ Photograph: Christopher Furlong/Getty Images

But with policymakers around the world waking up to the inadequacy of GDP as a sole measure of economic wellbeing, it’s the perfect time for the IPPR and others to be doing big thinking about how we can improve quality of life in every area. Liberating people from fear and worry about being able to get around, feeding their families and giving themselves the skills they need to get on in life, is what underpins Labour’s commitment to free school meals, free buses for young people and an end to tuition fees.

Recent reports about universal basic services have helped put this back on the political agenda, and the IPPR report puts forward more suggestions for how free services could be expanded.

It would be wrong to think of this as just being about the bare essentials of life. In recent years, spending cuts have led to the neglect, privatisation and even closure of public libraries, parks and leisure centres. Not only does this undermine social ties, it can – to those without the means to pay – deny access to a rich cultural life.

As socialists, we don’t believe quality of life should be the preserve of the few. But undermining public services is also about enshrining a short-termism that makes little economic sense.

Compare the efficiency of our NHS to the hideously fragmented social care system, which leaves people and their families having to sell assets to pay for expensive and often substandard care.

Public services aren’t free to provide, of course, but paid for by pooling our resources through taxation. Key to expanding them is building support for a fair system in which the wealthy – who have done so well in recent years – pay their fair share. A progressive tax system is essential to better mental health services, further and higher education and childcare.

Tackling the deficits created by austerity is just the beginning. We should be aiming for a better quality of life for everyone, where nobody’s needs or wants are constrained by mean individualism or short-term thinking, and where everyone can develop to the full extent of their capabilities.

That’s what we should be talking about and what I’m determined to make sure Labour is, even if the Conservatives are navel-gazing and harking back to the 1980s.

• John McDonnell is shadow chancellor of the exchequer