Defeat at the general election of May 2010 brought to an end 13 years of power for Labour. It symbolised the end of New Labour which had delivered two parliamentary landslides in 1997 and 2001 (majorities of 179 and 167 respectively), and one solid parliamentary majority of 66 in 2005. Under the leadership of Tony Blair (1994–2007) New Labour occupied the centre ground of British politics. It claimed to offer both economic prosperity (and acceptance of the market) and social justice (the promotion of a fairer society). This language enabled it to appeal to a wider spectrum of the electorate. Its acceptance of the market, as opposed to the hostility that had characterised Old Labour, increased its appeal to the aspirations of the middle classes who traditionally voted Conservative, while its advocacy of social justice retained its appeal with its own working-class and trade union base.
Blessed with the good fortune to inherit a booming economy in 1997, and a discredited and demoralised Conservative opposition, the Blair years witnessed continuing economic growth, low inflation rates and low unemployment. Labour was able to use the proceeds of ongoing economic growth to fund investment in the public services, and to do so without the need to increase income tax. However, the increases in public expenditure were dependent on continuing economic growth, which was in part reliant on corporate tax receipts from the finance sector where a policy of minimal regulation was being followed.
Your organisation does not have access to this article.
Sign up today to give your students the edge they need to achieve their best grades with subject expertise
Subscribe
