New Labour seemed to accept the Thatcherite economic policies of free deregulated markets and privatisation of industries. When they were recently in power, the party even welcomed private funds into national institutions such as hospitals and schools. This shows that labour no longer follows the former left wing ideologies on the economy but instead they are taking a more central position of state controlled capitalism.
There is also a change in views over European policy with new Labour. The socialists were anti-Europe and they wanted Britain to be free to protect their own domestic industries from foreign competition. Conversely, new Labour believes that Britain should remain in the EU, however most members of the party are sceptical about joining the Euro.
On the other hand, it would be wrong to say that the labour party has moved completely away from its traditional socialist beliefs. Ideas introduced by new Labour such as the minimum wage could be considered a very socialist concept as it is seen as fair, equal and is redistributing income. Furthermore, the party still emphasises the need for a strong welfare system that helps the most vulnerable e.g. poor pensioners, deserving disabled and lone families etc. One of the ways the party has done this is by introducing various tax credits. This also derives from the socialist concept of redistributing wealth.
Moreover, new Labour still believe in equality and the breaking down of class barriers. Public expenditure should be increased to give the nation more equal opportunities and best possible standard of living.
In conclusion, although it shouldn’t be forgotten that many of recent labour policies such as tax credits and the minimum wage originate from key socialist concepts. It is obvious that the party has strayed away from many of its core socialist values such as common ownership, state control over economy and nationalisation. In its place, the party have taken a new direction called the ‘Third way’ in which there is a combination of liberalism and social democracy to broaden the party’s appeal to the public. Therefore it can be said that new labour has moved from a more socialist left to a more central role in UK politics.