To be fair to Blair, he invested massive amounts into hospitals, schools and public services. He made sure there was a fair and generous welfare system and child poverty was reduced significantly.
The Tories are the one who have destroyed public institutions with their austerity which has decimated the NHS, schools and public services, the very services Labour invested heavily in.
Austerity was and is an ideological attempt to create a small state. Child poverty, homelessness and foodbank use have all shot up under this government and it's cruel welfare policies such as the Bedroom Tax and Universal Credit.
So his victories were not useless as Blair understood that in order to create a fairer, more equal society, you have to be a party of government and not just speak to yourselves but to the whole country. The minimum wage, welfare state and NHS were all created while Labour were in government. It's easy for Labour to slide into their comfort zone and oppose for opposition's sake but until they actually find an alternative message and coherent policies, they'll struggle to get back into government. The Tories are useless but the opposition aren't much better.
The investment was
through PFI, based on the same logic as austerity and saddling schools and hospitals with unpayable debts.
Minimum wage was made necessary by increasing conditionality, job-seekers allowance, forcing single parents into work sooner, ESA, WCA and ATOS to force disabled people into the workforce.It helped some low wage people to break the ceiling but wages above it have sunk to the floor. Scandinavian countries don't have a
problem with the posted workers directive because none of them need a minimum wage. Their unions set and enforce sectoral minimums. Here it is used to
undercut workers in regions that need the jobs and are reliant on the wages being spent locally.
"Politically, a case was being built - and support gathered for it – for the government to revisit and revise its extremely neo-liberal 1999 interpretation of the Posted Workers Directive into national regulations. These stipulated that terms and conditions should not be below the legal minimum as per the minimum wage and the like rather than not be below the collectively bargained industry rates. It is this revision – to the collectively bargained industry rates – to the British regulations which seems more likely to be achieved rather the revising of the EU directive itself or the European Court of Justice rulings which mean that it is unlawful to prevent a company using the Directive to undercut union rates."
What Blair and Brown didn't understand is that you can't build a strong economy by making it reliant on growth in services based in the cities and low wage warehousing work in the towns. Importing cheap skills when they're needed and diverting spending in the towns to corporate headquarters in the cities. They left the country much more vulnerable to the crash than it should have been and the effects of austerity have been magnified by the reliance of towns on public sector spending to provide investment and subsidise low wages.
Stears in the quote below is Blue Labour. i don't think they have all the right answers. Blair invented
bogus asylum seekers to pander to these tendencies and kept people waiting years for the right to work legally. It helped put more downward pressure on wages and set us up for the increasing violence of anti-immigrant talk and action of the Tories, Ukip and the far right. The Windrush deportations started under Labour too. But this article is very good anyway.
Labour in crisis: Can the party reconnect with its heartland?
“In the late 90s and early 2000s,” says Stears, “New Labour explicitly did a deal with the devil – it said, ‘Look, we’ll leave neoliberal policies alone because we’ll be able to cream off enough money to redistribute adequately.’ So you could generate support for the public services by being very hands-off with market forces, but then redistributing through the state.” The achievements of New Labour in re-investing in the NHS and renovating crumbling schools were the fruit of this bargain. But, says Stears, there was a darker side to the project.
“The big problem with the model was that the Labour hierarchy grew to have disdain in high places for the people who were not happy with that settlement. People who were miserable at work because they were being treated badly by some corporate power; or people working in a public sector that was increasingly marketised and target-driven; or people whose communities were changing and felt aggrieved at the emergence of clone towns and high streets that lost all their identity.”
The crash brought an uneasy compromise to an end. “If economic times are good and you are getting a fancy new GP surgery, you may feel you can put up with the lack of control at work, or the nature of the high street and so on. But when that improvement in the public realm comes to a shuddering halt, as it did in 2008, then this deal is no deal at all. And you get the populist revolt that we’ve seen.”