Tony Blair

First term

Blair enjoyed a 179-seat majority in the House of Commons—the biggest parliamentary majority in the history of the Labour Party and the largest majority of any party since 1935. Inspired by sociologist Anthony Giddens, he described his philosophy of government as the “Third Way.” Blair claimed that his policies were designed to enable social democracy to respond to the challenges of the worldwide market economy and to equip citizens to cope with what Giddens called “the major revolutions of our time,” including globalization. Perhaps the most coherent view about Blair’s search for the Third Way was that it was an endeavour to discover a form of progressive politics distinguishing itself from the conservatism of both left and right. Blair frequently looked for advice from businessmen who had come to prominence earlier, under the Conservative prime minister Thatcher. Private firms were given an important role in financing state infrastructure projects, despite widespread criticism that this financing was on terms often disadvantageous to the taxpayer.

Blair gave control of the economic agenda to Gordon Brown, his chancellor of the Exchequer and eventual successor. The Blair government’s first major initiative—and perhaps its boldest—granted the Bank of England the power to determine interest rates without government consultation, a policy that had not appeared in the party’s platform. The government also immediately signed the Maastricht Treaty’s Social Chapter and turned its attention to brokering a peace agreement between republicans and unionists in Northern Ireland. Blair initiated reforms in the House of Commons, modernizing the format of “Prime Minister’s Question Time,” during which the prime minister answers questions from members of Parliament. During his first year in office, he organized referenda that created devolved assemblies in Scotland and Wales and developed a joint committee to coordinate constitutional and other policies with the opposition Liberal Democrats.

Blair also gave important powers to unelected advisers, notably media consultant Alistair Campbell. The marketing image they adopted, known as “Cool Britannia,” suggested that Britain was a dynamic and successful country that had reinvented itself after years of decline and internal division. New Labour eagerly sought the approval of the mass-circulation press, particularly conservative tabloids such as The Sun, by embracing celebrity culture as well as respect for traditions, including the monarchy.

In May 1998 Blair led a successful referendum campaign to create a new assembly for London and to establish the city’s first directly elected mayor. That year Blair also helped to negotiate the Good Friday Agreement (Belfast Agreement), which was ratified overwhelmingly in both Ireland and Northern Ireland and which created an elected devolved power-sharing assembly in Northern Ireland for the first time since 1972. Blair also eliminated all but 92 of the hereditary members of the House of Lords as the prelude to more-extensive reforms of that chamber.

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The population began to grow skeptical of Blair as a new election approached, as it became clear that his government remained highly centralized and that he had no plans for overdue reforms in the public services. Opinion polls found that there was public concern regarding financial misbehaviour in government, manipulation of the media, the granting of honours to individuals who contributed to Labour Party funds, nepotism, and other actions that put the interests of business before ordinary citizens.