The Policy Review was the name given to the British Labour Party's wide-ranging study to formulate popular policies in the aftermath of its third successive electoral defeat in 1987.
On 14 September 1987 the chairman of Labour's home policy committee, Tom Sawyer, put forward the Policy Review plan in a paper after consultation with Labour leader Neil Kinnock. Sawyer's paper included recommending ways Labour could win back the skilled working class, reviewing Labour's policies on enterprise and wealth creation, taxation and social security. The home policy committee voted overwhelmingly in favour of Sawyer's three-year plan to produce a new statement of Labour policy by 1990. The Labour Party annual conference voted to endorse the Policy Review on 28 September.
However MPs on the left of the Labour Party criticised the Policy Review. At the home police committee meeting that endorsed it, Tony Benn unsuccessfully put forward an alternative paper titled The Aims and Objectives of the Labour Party. This included proposals for leaving NATO, ending nuclear power, abolition of the House of Lords, the democratisation of the magistracy and the introduction of assessors into the High Court to supervise judges. The paper also stated that Labour should support everyone’s right to follow their own conscience, even if this involved breaking the law. Benn claimed "There is a real risk that if we are seen to be abandoning our faith, in the search for media approval, we could be seen as a purely opportunistic party that is prepared to say anything to get into office and is ready to sacrifice good policies when the opinion polls swing against us". At a socialist conference held in Benn's constituency in Chesterfield on 24/25 October, left-wing Labour figures such as Arthur Scargill, Ken Livingstone and Eric Heffer attacked the Policy Review. Scargill said Labour's new realism was "class collaboration" that offered "palliatives not revolutionary change".
The first stage of the Policy Review reported on 25 May 1988 with seven policy reports containing 40,000 words. Left-wing policies such as withdrawal from the European Community and nationalisation were dropped, as was very high income tax rates for the top earners. On 5 June Kinnock said for the first time that Labour would not unilaterally abolish Britain's nuclear weapons but would use Trident as a bargaining chip in pursuing multilateral nuclear disarmament.
In opposition to the direction Kinnock was leading the party, Benn launched an eight-month campaign for the position of Labour leader in 1988, which Kinnock won on 2 October with 88.6% of the vote and interpreted as an endorsement of the Policy Review. On the next day the Labour conference endorsed the Policy Review by a margin of 5 to 1.
Labour's National Executive Committee voted to endorse the defence policy review on 9 May 1989 by 17 votes to 8. This committed Labour to multilateral nuclear disarmament. At the Labour conference in October 1989, the Policy Review documents were endorsed with big majorities.