As a returning ex-pat that's been overseas for 33 years, it seems to me the experiment the labour party started with Tony Blair's "new labour" to gain the middle ground of UK politics has lost it's way and only succeeded in alienating it's own grass root membership. I agree with you Flecc that a good proportion of the original industrial base upon which the labour movement was founded has been eroded since Thatcher, but I would say their place has been taken over by the working poor, many forced into low paid subcontract jobs with no security, holiday pay or other rights given to employees, to say nothing of the close to zero hours contracts abounding here. These people probably feel abandoned by the political system, and they are the hope for a resurgent labour. The lurch to the right labour has pursued for many years now does nothing for these people or for the old grass roots labour supporters. Labour needs to rethink it's strategy and concentrate on rekindling it's support from the grass roots and new working poor.And that is Labour's problem, it's no use returning to the old socialist policies as some seem to think is the answer, since there are very few traditional workers left to vote for that. Manufacturing only 8% of the economy for example, and much of their staff non-militant and barely socialist.
I don't think Labour will necessarily die out since it could take over the middle liberal ground now the lib-dems have fallen from favour. One or the other needs to go since they need the same political space. Either way, we seem to be heading for the US style situation of centre and right wing parties but no true left wing in UK politics.
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Tony.