New Labour: Blair and the Third Way 1997–2007

Tony Blair's decade in power (May 1997–June 2007) was the longest continuous Labour government in history. Blair's "New Labour" project — the "Third Way" between old-style socialism and Thatcherite free-market conservatism — transformed the party, delivered three successive election victories, and implemented major constitutional, social, and public service reforms. Yet Blair's legacy is inseparable from the Iraq War, which divided the country and the Labour Party, and ultimately destroyed his premiership.

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Blair's Background and New Labour

Key Fact	Detail
Background	Born in Edinburgh, 1953; educated at Fettes College (a Scottish public school) and Oxford; called to the bar 1976; MP for Sedgefield from 1983
Modernisation	Blair became Labour leader on 21 July 1994 after the sudden death of John Smith. He accelerated the modernisation process that Kinnock and Smith had begun
Clause IV	In April 1995, Blair persuaded the Labour conference to rewrite Clause IV of the party constitution — abandoning the commitment to "common ownership of the means of production, distribution, and exchange" that had defined Labour's socialist identity since 1918. The new Clause IV committed the party to a "dynamic economy" and a "just society"
The Third Way	Blair's political philosophy, influenced by the sociologist Anthony Giddens, sought to combine economic efficiency (accepting the market economy and globalisation) with social justice (investing in education, health, and opportunity)

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Constitutional Reform

Blair's government implemented the most extensive programme of constitutional reform since the Parliament Act 1911:

Reform	Detail
Scottish devolution	The Scotland Act 1998 established the Scottish Parliament (opened 1999) with powers over health, education, law, transport, and a limited ability to vary income tax by 3p
Welsh devolution	The Government of Wales Act 1998 created the National Assembly for Wales (Senedd Cymru) with more limited powers than Scotland — initially no primary legislative powers
Northern Ireland	The Good Friday Agreement (10 April 1998) established a power-sharing Northern Ireland Assembly, a North-South Ministerial Council, and mechanisms for decommissioning paramilitary weapons. The agreement was approved by 71.1% in a referendum on 22 May 1998
House of Lords reform	The House of Lords Act 1999 removed all but 92 hereditary peers — reducing the Lords from over 1,300 to approximately 670 members. Further reform (an elected or partly elected second chamber) was promised but never delivered
Human Rights Act 1998	Incorporated the European Convention on Human Rights into domestic law — for the first time, British courts could rule on convention rights without cases going to Strasbourg
Freedom of Information Act 2000	Gave citizens the right to request information held by public authorities (came into effect January 2005). Blair later called this his biggest mistake — "not a freedom of information act... a fools' charter"
London Mayor	The Greater London Authority Act 1999 created an elected Mayor of London and a London Assembly. Ken Livingstone won the first mayoral election in 2000, standing as an independent after being blocked from the Labour candidacy

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Public Services: Investment and Reform

Education

Policy	Detail
"Education, Education, Education"	Blair's three priorities — reflecting New Labour's conviction that education was the key to social mobility and economic competitiveness
Literacy and numeracy hours	Prescribed daily hours in primary schools; standards rose significantly in the early years
Academy schools	City Academies programme (from 2000) — state-funded schools independent of local authority control, often with private or charitable sponsors. Expanded massively under subsequent governments
Tuition fees	Teaching and Higher Education Act 1998 introduced undergraduate tuition fees of £1,000 per year (means-tested). The Higher Education Act 2004 introduced variable "top-up" fees of up to £3,000 per year, despite a massive backbench rebellion (the government's majority fell to 5 on the second reading vote, 27 January 2004)

Health

Policy	Detail
NHS spending	Total NHS spending in England rose from £33 billion in 1997 to £90 billion by 2008 (in nominal terms) — the largest sustained increase in NHS funding since its creation
Waiting times	Maximum waiting times fell from 18 months to 18 weeks for elective treatment. The target of a maximum 4-hour wait in A&E was introduced
NHS Plan (2000)	Set targets for new hospitals, doctors, nurses, and reduced waiting times
Foundation trusts	NHS Foundation Trusts (from 2004) gave successful hospitals greater financial and operational autonomy