People will no longer support open trade and free markets if they feel that they are losing out while a small group of winners is getting richer and richer. Large and persistent losses in low-income groups following recessions underline the importance of well-targeted income-support policies. Government transfers - both in cash and in-kind - have an important role to play in guaranteeing that low-income households do not fall further back in the income distribution. It may be necessary to review whether existing tax provisions are still optimal in light of equity considerations and current revenue requirements.