The Labour Party originated in the late 19th century, meeting the demand for a new political party to represent the interests and needs of the urban working class, a demographic which had increased in number, and many of whom only gained
suffrage with the passage of the
Representation of the People Act 1884.
 Some members of the trades union movement became interested in moving into the political field, and after further extensions of the voting franchise in 1867 and 1885, the
Liberal Party endorsed some trade-union sponsored candidates. The first
Lib–Lab candidate to stand was
George Odger in the
Southwark by-election of 1870. In addition, several small socialist groups had formed around this time, with the intention of linking the movement to political policies. Among these were the
Independent Labour Party, the intellectual and largely middle-class
Fabian Society, the Marxist
Social Democratic Federation
 and the
Scottish Labour Party.
1895 general election, the Independent Labour Party put up 28 candidates but won only 44,325 votes.
Keir Hardie, the leader of the party, believed that to obtain success in parliamentary elections, it would be necessary to join with other left-wing groups. Hardie's roots as a lay preacher contributed to an ethos in the party which led to the comment by 1950s General Secretary Morgan Phillips that "Socialism in Britain owed more to Methodism than Marx".
Labour Representation Committee
, one of the Labour Party's founders and its first leader
In 1899, a
Doncaster member of the
Amalgamated Society of Railway Servants, Thomas R. Steels, proposed in his union branch that the
Trade Union Congress call a special conference to bring together all left-wing organisations and form them into a single body that would sponsor Parliamentary candidates. The motion was passed at all stages by the TUC, and the proposed conference was held at the Memorial Hall on Farringdon Street on 26 and 27 February 1900. The meeting was attended by a broad spectrum of working-class and left-wing organisations—trades unions represented about one third of the membership of the TUC delegates.
After a debate, the 129 delegates passed Hardie's motion to establish "a distinct Labour group in Parliament, who shall have their own whips, and agree upon their policy, which must embrace a readiness to cooperate with any party which for the time being may be engaged in promoting legislation in the direct interests of labour."
 This created an association called the Labour Representation Committee (LRC), meant to co-ordinate attempts to support MPs sponsored by trade unions and represent the working-class population. It had no single leader, and in the absence of one, the Independent Labour Party nominee
Ramsay MacDonald was elected as Secretary. He had the difficult task of keeping the various strands of opinions in the LRC united. The
October 1900 "Khaki election" came too soon for the new party to campaign effectively; total expenses for the election only came to £33. Only 15 candidatures were sponsored, but two were successful;
Keir Hardie in
Merthyr Tydfil and
Richard Bell in
Support for the LRC was boosted by the 1901
Taff Vale Case, a dispute between strikers and a railway company that ended with the union being ordered to pay £23,000 damages for a strike. The judgement effectively made strikes illegal since employers could recoup the cost of lost business from the unions. The apparent acquiescence of the Conservative Government of
Arthur Balfour to industrial and business interests (traditionally the allies of the
Liberal Party in opposition to the Conservative's landed interests) intensified support for the LRC against a government that appeared to have little concern for the industrial proletariat and its problems.
Labour Party Plaque from Caroone House, 14 Farringdon Street
1906 election, the LRC won 29 seats—helped by a
secret 1903 pact between
Ramsay MacDonald and
Herbert Gladstone that aimed to avoid splitting the opposition vote between Labour and Liberal candidates in the interest of removing the Conservatives from office.
In their first meeting after the election the group's Members of Parliament decided to adopt the name "The Labour Party" formally (15 February 1906). Keir Hardie, who had taken a leading role in getting the party established, was elected as Chairman of the Parliamentary Labour Party (in effect, the Leader), although only by one vote over
David Shackleton after several ballots. In the party's early years the
Independent Labour Party (ILP) provided much of its activist base as the party did not have individual membership until 1918 but operated as a conglomerate of affiliated bodies. The
Fabian Society provided much of the intellectual stimulus for the party. One of the first acts of the new Liberal Government was to reverse the Taff Vale judgement.
People's History Museum in
Manchester holds the minutes of the first Labour Party meeting in 1906 and has them on display in the Main Galleries.
 Also within the museum is the Labour History Archive and Study Centre, which holds the collection of the Labour Party, with material ranging from 1900 to the present day.
1910 election saw 42 Labour MPs elected to the House of Commons, a significant victory since, a year before the election, the House of Lords had passed the
Osborne judgment ruling that Trades Unions in the United Kingdom could no longer donate money to fund the election campaigns and wages of Labour MPs. The governing Liberals were unwilling to repeal this judicial decision with primary legislation. The height of Liberal compromise was to introduce a wage for Members of Parliament to remove the need to involve the Trade Unions. By 1913, faced with the opposition of the largest Trades Unions, the Liberal government passed the Trade Disputes Act to allow Trade Unions to fund Labour MPs once more.
During the First World War the Labour Party split between supporters and opponents of the conflict but opposition to the war grew within the party as time went on.
Ramsay MacDonald, a notable anti-war campaigner, resigned as leader of the Parliamentary Labour Party and
Arthur Henderson became the main figure of authority within the party. He was soon accepted into
Prime Minister Asquith's war cabinet, becoming the first Labour Party member to serve in government.
Despite mainstream Labour Party's support for the coalition the
Independent Labour Party was instrumental in opposing conscription through organisations such as the
Non-Conscription Fellowship while a Labour Party affiliate, the
British Socialist Party, organised a number of unofficial strikes.
Arthur Henderson resigned from the Cabinet in 1917 amid calls for party unity to be replaced by
George Barnes. The growth in Labour's local activist base and organisation was reflected in the elections following the war, the
co-operative movement now providing its own resources to the
Co-operative Party after the armistice. The Co-operative Party later reached an electoral agreement with the Labour Party.
Henderson turned his attention to building a strong constituency-based support network for the Labour Party. Previously, it had little national organisation, based largely on branches of unions and socialist societies. Working with Ramsay MacDonald and Sidney Webb, Henderson in 1918 established a national network of constituency organisations. They operated separately from trade unions and the National Executive Committee and were open to everyone sympathetic to the party's policies. Secondly, Henderson secured the adoption of a comprehensive statement of party policies, as drafted by
Sidney Webb. Entitled "Labour and the New Social Order," it remained the basic Labour platform until 1950. It proclaimed a socialist party whose principless included a guaranteed minimum standard of living for everyone, nationalisation of industry, and heavy taxation of large incomes and of wealth.
 It was in 1918 that
Clause IV, as drafted by
Sidney Webb, was adopted into Labour's constitution, committing the party to work towards "the common ownership of the means of production, distribution and exchange."
Representation of the People Act 1918, almost all adult men (excepting only peers, criminals and lunatics) and most women over the age of thirty were given the right to vote, almost tripling the British electorate at a stroke, from 7.7 million in 1912 to 21.4 million in 1918. This set the scene for a surge in Labour representation in parliament.
Communist Party of Great Britain was refused affiliation to the Labour Party between 1921 and 1923.
Liberal Party declined rapidly, and the party also suffered a catastrophic split which allowed the Labour Party to gain much of the Liberals' support.
 With the Liberals thus in disarray, Labour won 142 seats in
1922, making it the second largest political group in the House of Commons and the
official opposition to the Conservative government. After the election Ramsay MacDonald was voted the first official
leader of the Labour Party.
First Labour government, 1924
1923 general election was fought on the Conservatives'
protectionist proposals but, although they got the most votes and remained the largest party, they lost their majority in parliament, necessitating the formation of a government supporting
free trade. Thus, with the acquiescence of Asquith's Liberals,
Ramsay MacDonald became the first ever Labour Prime Minister in January 1924, forming the first Labour government, despite Labour only having 191 MPs (less than a third of the House of Commons).
Because the government had to rely on the support of the Liberals it was unable to pass any radical legislation. The most significant achievement was the
Wheatley Housing Act, which began a building programme of 500,000 homes for rental to low paid workers. Legislation on education, unemployment, social insurance and tenant protection was also passed. Although no major changes were introduced, the main achievement of the government was to demonstrate that Labour were capable of governing.
While there were no major labour strikes during his term, MacDonald acted swiftly to end those that did erupt. When the Labour Party executive criticised the government, he replied that, "public doles,
Poplarism [local defiance of the national government], strikes for increased wages, limitation of output, not only are not Socialism, but may mislead the spirit and policy of the Socialist movement."
The government collapsed after only nine months when the Liberals voted for a Select Committee inquiry into the
Campbell Case, a vote which MacDonald had declared to be a vote of confidence. The ensuing
1924 general election saw the publication, four days before polling day, of the forged
Zinoviev letter, in which Moscow talked about a Communist revolution in Britain. The letter had little impact on the Labour vote—which held up. It was the collapse of the Liberal party that led to the Conservative landslide. The Conservatives were returned to power although Labour increased its vote from 30.7% to a third of the popular vote, most Conservative gains being at the expense of the Liberals. However many Labourites for years blamed their defeat on foul play (the Zinoviev letter), thereby according to
A. J. P. Taylor misunderstanding the political forces at work and delaying needed reforms in the party.
In opposition MacDonald continued his policy of presenting the Labour Party as a moderate force. During the
General Strike of 1926 the party opposed the general strike, arguing that the best way to achieve social reforms was through the ballot box. The leaders were also fearful of Communist influence orchestrated from Moscow.
The Party had a distinctive and suspicious foreign policy based on pacifism. Its leaders believed that peace was impossible because of capitalism, secret diplomacy, and the trade in armaments. That is it stressed material factors that ignored the psychological memories of the Great War, and the highly emotional tensions regarding nationalism and the boundaries of the countries.
Second Labour government, 1929–1931
The original "Liberty" logo, in use until 1983
1929 general election, the Labour Party became the largest in the House of Commons for the first time, with 287 seats and 37.1% of the popular vote. However MacDonald was still reliant on Liberal support to form a minority government. MacDonald went on to appoint Britain's first woman cabinet minister;
Margaret Bondfield, who was appointed
Minister of Labour.
MacDonald's second government was in a stronger parliamentary position than his first, and in 1930 Labour were able to pass legislation to raise unemployment pay, improve wages and conditions in the coal industry (i.e. the issues behind the General Strike) and pass a housing act which focused on slum clearances.
The government, however, soon found itself engulfed in crisis: the
Wall Street Crash of 1929 and eventual
Great Depression occurred soon after the government came to power, and the slump in global trade hit Britain hard. By the end of 1930 unemployment had doubled to over two and a half million.
 The government had no effective answers to the deteriorating financial situation, and by 1931 there was much fear that the budget was unbalanced, which was born out by the independent
May Report which triggered a confidence crisis and a run on the pound. The cabinet deadlocked over its response, with several influential members unwilling to support the budget cuts (in particular a cut in the rate of unemployment benefit) which were pressed by the civil service and opposition parties.
Chancellor of the Exchequer
Philip Snowden refused to consider
deficit spending or tariffs as alternative solutions. When a final vote was taken, the Cabinet was split 11-9 with a minority, including many political heavyweights such as
Arthur Henderson and
George Lansbury, threatening to resign rather than agree to the cuts. The unworkable split, on 24 August 1931, made the government resign. MacDonald was encouraged by
King George V to form an all-party
National Government to deal with the immediate crisis.
The financial crisis grew worse and decisive government action was needed as the leaders of both the Conservative and Liberal Parties met with
King George V, and MacDonald, at first to discuss support for the spending cuts but later to discuss the shape of the next government. The king played the central role in demanding a National government be formed. On 24 August, MacDonald agreed to form a National Government composed of men from all parties with the specific aim of balancing the Budget and restoring confidence. The new cabinet had four Labourites (who formed a "
National Labour" group) who stood with MacDonald, plus four Conservatives (led by Baldwin, Chamberlain) and two Liberals. MacDonald's moves aroused great anger among a large majority of Labour Party activists who felt betrayed. Labour unions were strongly opposed and the Labour Party officially repudiated the new National government. It expelled MacDonald and his supporters and made Henderson the leader of the main Labour party. Henderson led it into
the general election on 27 October against the three-party National coalition. It was a disaster for Labour, which was reduced to a small minority of 52 seats. The Conservative dominated National Government, led by MacDonald won the largest landslide in British political history.
In 1931 Labour campaigned on opposition to public spending cuts, but found it difficult to defend the record of the party's former government and the fact that most of the cuts had been agreed before it fell. Historian Andrew Thorpe argues that Labour lost credibility by 1931 as unemployment soared, especially in coal, textiles, shipbuilding, and steel. The working class increasingly lost confidence in the ability of Labour to solve the most pressing problem.
The 2.5 million Irish Catholics in England and Scotland were a major factor in the Labour base in many industrial areas. The Catholic Church had previously tolerated the Labour Party, and denied that it represented true socialism. However, the bishops by 1930 had grown increasingly alarmed at Labour's policies toward Communist Russia, toward birth control and especially toward funding Catholic schools. They warned its members. The Catholic shift against Labour and in favour of the National government played a major role in Labour's losses.
Arthur Henderson, elected in 1931 to succeed MacDonald, lost his seat in the
1931 general election. The only former Labour cabinet member who had retained his seat, the pacifist
George Lansbury, accordingly became party leader.
The party experienced another split in 1932 when the
Independent Labour Party, which for some years had been increasingly at odds with the Labour leadership, opted to disaffiliate from the Labour Party and embarked on a long, drawn-out decline.
Lansbury resigned as leader in 1935 after public disagreements over foreign policy. He was promptly replaced as leader by his deputy,
Clement Attlee, who would lead the party for two decades. The party experienced a revival in the
1935 general election, winning 154 seats and 38% of the popular vote, the highest that Labour had achieved.
As the threat from
Nazi Germany increased, in the late 1930s the Labour Party gradually abandoned its pacifist stance and came to support re-armament, largely due to the efforts of
Ernest Bevin and
Hugh Dalton who by 1937 had also persuaded the party to oppose
Neville Chamberlain's policy of
Wartime coalition, 1940–1945
The party returned to government in 1940 as part of the
wartime coalition. When
Neville Chamberlain resigned in the spring of 1940, incoming
Winston Churchill decided to bring the other main parties into a coalition similar to that of the First World War. Clement Attlee was appointed
Lord Privy Seal and a member of the war cabinet, eventually becoming the United Kingdom's first
Deputy Prime Minister.
A number of other senior Labour figures also took up senior positions: the trade union leader
Ernest Bevin, as
Minister of Labour, directed Britain's wartime economy and allocation of manpower, the veteran Labour statesman
Herbert Morrison became
Hugh Dalton was
Minister of Economic Warfare and later
President of the Board of Trade, while
A. V. Alexander resumed the role he had held in the previous Labour Government as
First Lord of the Admiralty.
Attlee government, 1945–1951
Aneurin Bevan speaking in October 1952
At the end of the war in Europe, in May 1945, Labour resolved not to repeat the Liberals' error of 1918, and promptly withdrew from government, on trade union insistence, to contest the
1945 general election in opposition to Churchill's Conservatives. Surprising many observers,
 Labour won a formidable victory, winning just under 50% of the vote with a majority of 159 seats.
Clement Attlee was no great radical himself,
 Attlee's government proved one of the most radical British governments of the 20th century, enacting
Keynesian economic policies, presiding over a policy of nationalising major industries and utilities including the
Bank of England, coal mining, the steel industry, electricity, gas, and inland transport (including railways, road haulage and canals). It developed and implemented the "cradle to grave"
welfare state conceived by the economist
 To this day, most people in the United Kingdom see the 1948 creation of Britain's
National Health Service (NHS) under health minister
Aneurin Bevan, which gave publicly funded medical treatment for all, as Labour's proudest achievement.
 Attlee's government also began the process of dismantling the
British Empire when it granted independence to India and Pakistan in 1947, followed by Burma (Myanmar) and Ceylon (Sri Lanka) the following year. At a secret meeting in January 1947, Attlee and six cabinet ministers, including Foreign Secretary
Ernest Bevin, decided to proceed with the development of Britain's
nuclear weapons programme,
 in opposition to the pacifist and anti-nuclear stances of a large element inside the Labour Party.
Labour went on to win the
1950 general election, but with a much reduced majority of five seats. Soon afterwards, defence became a divisive issue within the party, especially defence spending (which reached a peak of 14% of GDP in 1951 during the
 straining public finances and forcing savings elsewhere. The Chancellor of the Exchequer,
Hugh Gaitskell, introduced charges for NHS dentures and spectacles, causing Bevan, along with
Harold Wilson (then President of the Board of Trade), to resign over the dilution of the principle of free treatment on which the NHS had been established.
1951 general election, Labour narrowly lost to Churchill's Conservatives, despite receiving the larger share of the popular vote – its highest ever vote numerically. Most of the changes introduced by the 1945–51 Labour government were accepted by the Conservatives and became part of the "
post-war consensus" that lasted until the late 1970s. Food and clothing rationing, however, still in place since the war, were swiftly relaxed, then abandoned from about 1953.
Post-war consensus, 1951–1964
Following the defeat of 1951 the party spent 13 years in opposition. The party suffered an ideological split, between the party's left-wing followers of
Aneurin Bevan (known as
Bevanites), and the right-wing of the party following
Hugh Gaitskell (known as
Gaitskellites) while the postwar economic recovery and the social effects of Attlee's reforms made the public broadly content with the Conservative governments of the time. The ageing Attlee contested his final general election in
1955, which saw Labour lose ground, and he retired shortly after.
His replacement, Hugh Gaitskell, associated with the right wing of the party, struggled in dealing with internal party divisions in the late 1950s and early 1960s (particularly over
Clause IV of the Labour Party Constitution, which was viewed as Labour's commitment to
nationalisation and Gaitskell wanted scrapped
). Under Gaitskell, Labour lost their third general election in a row in
1959. In 1963, Gaitskell's sudden death from a rare illness made way for
Harold Wilson to lead the party.
Wilson government, 1964–1970
A downturn in the economy and a series of scandals in the early 1960s (the most notorious being the
Profumo affair) had engulfed the Conservative government by 1963. The Labour Party returned to government with a 4-seat majority under Wilson in the
1964 general election but increased its majority to 96 in the
1966 general election.
Wilson's government was responsible for a number of sweeping social and educational reforms under the leadership of
Roy Jenkins such as the abolishment of the
death penalty in 1964, the legalisation of
homosexuality (initially only for men aged 21 or over, and only in
England and Wales) in 1967 and the abolition of theatre censorship in 1968.
Comprehensive education was expanded and the
Open University created. However Wilson's government had inherited a large trade deficit that led to a currency crisis and ultimately a doomed attempt to stave off devaluation of the pound. Labour went on to lose the
1970 general election to the Conservatives under
Spell in opposition, 1970–1974
After losing the 1970 general election, Labour returned to opposition, but retained Harold Wilson as Leader. Heath's government soon ran into trouble over
Northern Ireland and a dispute with miners in 1973 which led to the "
three-day week". The 1970s proved a difficult time to be in government for both the Conservatives and Labour due to the
1973 oil crisis which caused high inflation and a global recession.
The Labour Party was returned to power again under Wilson a few weeks after the
February 1974 general election, forming a minority government with the support of the
Ulster Unionists. The Conservatives were unable to form a government alone as they had fewer seats despite receiving more votes numerically. It was the first general election since 1924 in which both main parties had received less than 40% of the popular vote and the first of six successive general elections in which Labour failed to reach 40% of the popular vote. In a bid to gain a majority, a second election was soon called for
October 1974 in which Labour, still with Harold Wilson as leader, won a slim majority of three, gaining just 18 seats taking its total to 319.
Majority to minority, 1974–1979
For much of its time in office the Labour government struggled with serious economic problems and a precarious majority in the Commons, while the party's internal dissent over Britain's membership of the
, which Britain had entered under Edward Heath in 1972, led in 1975 to a
national referendum on the issue in which two thirds of the public supported continued membership.
Harold Wilson's personal popularity remained reasonably high but he unexpectedly resigned as Prime Minister in 1976 citing health reasons, and was replaced by
James Callaghan. The Wilson and Callaghan governments of the 1970s tried to control inflation (which reached 23.7% in 1975
) by a policy of
wage restraint. This was fairly successful, reducing inflation to 7.4% by 1978.
 However it led to increasingly strained relations between the government and the trade unions.
Fear of advances by the nationalist parties, particularly in Scotland, led to the suppression of a
report from Scottish Office economist Gavin McCrone that suggested that an independent Scotland would be "chronically in surplus".
 By 1977 by-election losses and defections to the breakaway
Scottish Labour Party left Callaghan heading a minority government, forced to do deals with smaller parties in order to govern. An arrangement negotiated in 1977 with
David Steel, known as the
Lib–Lab pact, ended after one year. Deals were then forged with various small parties including the
Scottish National Party (SNP) and the Welsh nationalist
Plaid Cymru, prolonging the life of the government.
The nationalist parties, in turn, demanded
devolution to their respective constituent countries in return for their supporting the government. When referendums for Scottish and Welsh devolution were held in March 1979 the
Welsh devolution referendum saw a large majority vote against, while the
Scottish referendum returned a narrow majority in favour without reaching the required threshold of 40% support. When the Labour government duly refused to push ahead with setting up the proposed Scottish Assembly, the SNP withdrew its support for the government: this finally brought the government down as the Conservatives triggered a
vote of confidence in Callaghan's government that was lost by a single vote on 28 March 1979, necessitating a general election.
By 1978 the economy had started to show signs of recovery, with inflation falling to single digits, unemployment falling, and living standards starting to rise during the year.
 Labour's opinion poll ratings also improved, with most showing the party to have gained a narrow lead. Callaghan had been widely expected to call a general election in the autumn of 1978 to take advantage of the improved situation. In the event he decided to extend his wage restraint policy for another year hoping that the economy would be in a better shape for a 1979 election. However, during the winter of 1978–79 there were widespread strikes among lorry drivers, railway workers, car workers and local government and hospital workers in favour of higher pay-rises that caused significant disruption to everyday life. These events came to be dubbed the "
Winter of Discontent".
1979 general election Labour was heavily defeated by the
Conservatives now led by
Margaret Thatcher. The Labour vote held up in the election, with the party receiving a similar number of votes as in 1974. However the Conservative Party achieved big increases in support in the Midlands and South of England, benefiting from both a surge in turnout and votes lost by the ailing Liberals.
Internal conflict and opposition, 1979–1997
This section needs additional citations for
. (February 2017)
: leader of the party in opposition, 1980–83
After its defeat in the
1979 general election the Labour Party underwent a period of internal rivalry between the left represented by
Tony Benn, and the right represented by
Denis Healey. The election of
as leader in 1980, and the leftist policies he espoused, such as
unilateral nuclear disarmament, leaving the
NATO, closer governmental influence in the banking system, the creation of a
national minimum wage and a ban on
 led in 1981 to four former cabinet ministers from the right of the Labour Party (
Roy Jenkins and
David Owen) forming the
Social Democratic Party. Benn was only narrowly defeated by Healey in a bitterly fought deputy leadership election in 1981 after the introduction of an electoral college intended to widen the voting franchise to elect the leader and their deputy. By 1982, the
National Executive Committee had concluded that the
Militant tendency group were in contravention of the party's constitution. The Militant newspaper's five member editorial board were expelled on 22 February 1983.
The Labour Party was defeated heavily in the
1983 general election, winning only 27.6% of the vote, its lowest share since
1918, and receiving only half a million votes more than the
SDP-Liberal Alliance who leader Michael Foot condemned for "siphoning" Labour support and enabling the Conservatives to greatly increase their majority of parliamentary seats.
Foot resigned and was replaced as leader by
Neil Kinnock, with
Roy Hattersley as his deputy. The new leadership progressively dropped unpopular policies. The
miners strike of 1984–85 over coal mine closures, which divided the NUM as well as the Labour Party, and the
Wapping dispute led to clashes with the left of the party, and negative coverage in most of the press. Tabloid vilification of the so-called
loony left continued to taint the parliamentary party by association from the activities of "extra-parliamentary" militants in local government.
The alliances which campaigns such as
Lesbians and Gays Support the Miners forged between
lesbian, gay, bisexual, and transgender (LGBT) and
labour groups, as well as the Labour Party itself, also proved to be an important turning point in the progression of LGBT issues in the UK. At the 1985 Labour Party conference in Bournemouth, a resolution committing the party to support LGBT equality rights passed for the first time due to block voting support from the
National Union of Mineworkers.
Labour improved its performance in
1987, gaining 20 seats and so reducing the Conservative majority from 143 to 102. They were now firmly re-established as the second political party in Britain as the Alliance had once again failed to make a breakthrough with seats. A merger of the SDP and Liberals formed the
Liberal Democrats. Following the 1987 election, the National Executive Committee resumed disciplinary action against members of Militant, who remained in the party, leading to further expulsions of their activists and the two MPs who supported the group. During the 1980s radically socialist members of the party were often described as the "
loony left", particularly in the
 The print media in the 1980s also began using the pejorative "hard left" to sometimes describe
Trotskyist groups such as the
Socialist Organiser and
Kinnock was challenged by
Tony Benn for the party leadership. Based on the percentages, 183 members of parliament supported Kinnock, while Benn was backed by 37. With a clear majority, Kinnock remained leader of the Labour Party.
In November 1990 following a contested leadership election,
Margaret Thatcher resigned as leader of the Conservative Party and was succeeded as leader and Prime Minister by
John Major. Most opinion polls had shown Labour comfortably ahead of the Tories for more than a year before Thatcher's resignation, with the fall in Tory support blamed largely on her introduction of the unpopular
poll tax, combined with the fact that the economy was
sliding into recession at the time.
Labour Party logo under Kinnock, Smith and Blair's leaderships
The change of leader in the Tory government saw a turnaround in support for the Tories, who regularly topped the opinion polls throughout 1991 although Labour regained the lead more than once.
The "yo-yo" in the opinion polls continued into 1992, though after November 1990 any Labour lead in the polls was rarely sufficient for a majority. Major resisted Kinnock's calls for a general election throughout 1991. Kinnock campaigned on the theme "It's Time for a Change", urging voters to elect a new government after more than a decade of unbroken Conservative rule. However, the Conservatives themselves had undergone a change of leader from Thatcher to Major, and replaced the Community Charge. From the outset, it was clearly a well-received change, as Labour's 14-point lead in the November 1990 "Poll of Polls" was replaced by an 8% Tory lead a month later.
1992 general election was widely tipped to result in a hung parliament or a narrow Labour majority, but in the event the Conservatives were returned to power, though with a much reduced majority of 21.
 Despite the increased number of seats and votes, it was still an incredibly disappointing result for supporters of the Labour party. For the first time in over 30 years there was serious doubt among the public and the media as to whether Labour could ever return to government.
Kinnock then resigned as leader and was replaced by
John Smith. Once again the battle erupted between the old guard on the party's left and those identified as "modernisers". The old guard argued that trends showed they were regaining strength under Smith's strong leadership. Meanwhile, the breakaway SDP merged with the Liberal Party. The new
Liberal Democrats seemed to pose a major threat to the Labour base.
Tony Blair (the Shadow Home Secretary) had an entirely different vision. Blair, the leader of the "modernising" faction (
Blairites), argued that the long-term trends had to be reversed, arguing that the party was too locked into a base that was shrinking, since it was based on the working-class, on trade unions, and on residents of subsidised council housing. Blairites argued that the rapidly growing middle class was largely ignored, as well as more ambitious working-class families. It was said that they aspired to become middle-class, but accepted the Conservative argument that Labour was holding ambitious people back, with its levelling down policies. They increasingly saw Labour in a negative light, regarding higher taxes and higher interest rates. To present a fresh face and new policies to the electorate,
New Labour needed more than fresh leaders; it had to jettison outdated policies, argued the modernisers.
 The first step was procedural, but essential. Calling on the slogan, "
One Member, One Vote" Blair (with some help from Smith) defeated the union element and ended
block voting by leaders of
labour unions. Blair and the modernisers called for radical adjustment of Party goals by repealing "Clause IV", the historic commitment to nationalisation of industry. This was achieved in 1995.
Black Wednesday in September 1992 damaged the Conservative government's reputation for economic competence, and by the end of that year Labour had a comfortable lead over the Tories in the opinion polls. Although the recession was declared over in April 1993 and a period of strong and sustained economic growth followed, coupled with a relatively swift fall in unemployment, the Labour lead in the opinion polls remained strong. However, Smith died from a heart attack in May 1994.
New Labour, 1994–2010
Tony Blair continued to move the party further to the centre, abandoning the largely symbolic
Clause Four at the 1995 mini-conference in a strategy to increase the party's appeal to "
middle England". More than a simple re-branding, however, the project would draw upon the
Third Way strategy, informed by the thoughts of the British sociologist
New Labour was first termed as an alternative branding for the Labour Party, dating from a conference slogan first used by the Labour Party in 1994, which was later seen in a draft manifesto published by the party in 1996, called
New Labour, New Life For Britain. It was a continuation of the trend that had begun under the leadership of
Neil Kinnock. New Labour as a name has no official status, but remains in common use to distinguish modernisers from those holding to more traditional positions, normally referred to as "Old Labour".
New Labour is a party of ideas and ideals but not of outdated ideology. What counts is what works. The objectives are radical. The means will be modern.
The Labour Party won the 1997 general election with a landslide majority of 179; it was the largest Labour majority ever, and at the time the largest swing to a political party achieved since
1945. Over the next decade, a wide range of progressive social reforms were enacted,
 with millions lifted out of poverty during Labour's time in office largely as a result of various tax and benefit reforms.
Among the early acts of Blair's government were the establishment of the
national minimum wage, the
devolution of power to Scotland, Wales and
Northern Ireland, major changes to the regulation of the banking system, and the re-creation of a citywide government body for London, the
Greater London Authority, with its own elected-
Combined with a Conservative opposition that had yet to organise effectively under
William Hague, and the continuing popularity of Blair, Labour went on to win the
2001 election with a similar majority, dubbed the "quiet landslide" by the media.
 In 2003 Labour introduced
tax credits, government top-ups to the pay of low-wage workers.
A perceived turning point was when Blair controversially allied himself with US President
George W. Bush in supporting the
Iraq War, which caused him to lose much of his political support.
UN Secretary-General, among many, considered the war illegal and a violation of the
 The Iraq War was deeply unpopular in most western countries, with Western governments divided in their support
 and under pressure from
worldwide popular protests.
 The decisions that led up to the Iraq war and its subsequent conduct were the subject of
Sir John Chilcot's
Iraq Inquiry (commonly referred to as the "Chilcot report").
2005 general election, Labour was re-elected for a third term, but with a reduced majority of 66 and popular vote of only 35.2%, the lowest percentage of any majority government in British history.
Blair announced in September 2006 that he would quit as leader within the year, though he had been under pressure to quit earlier than May 2007 in order to get a new leader in place before the May elections which were expected to be disastrous for Labour.
 In the event, the party did lose power in Scotland to a minority
Scottish National Party government at the
2007 elections and, shortly after this, Blair resigned as Prime Minister and was replaced by his
Gordon Brown. Although the party experienced a brief rise in the polls after this, its popularity soon slumped to its lowest level since the days of
. During May 2008, Labour suffered heavy defeats in the
London mayoral election,
local elections and the loss in the
Crewe and Nantwich by-election, culminating in the party registering its worst ever opinion poll result since records began in 1943, of 23%, with many citing Brown's leadership as a key factor.
 Membership of the party also reached a low ebb, falling to 156,205 by the end of 2009: over 40 per cent of the 405,000 peak reached in 1997 and thought to be the lowest total since the party was founded.
Finance proved a major problem for the Labour Party during this period; a "
cash for peerages" scandal under Blair resulted in the drying up of many major sources of donations. Declining party membership, partially due to the reduction of activists' influence upon policy-making under the reforms of
Neil Kinnock and Blair, also contributed to financial problems. Between January and March 2008, the Labour Party received just over £3 million in donations and were £17 million in debt; compared to the Conservatives' £6 million in donations and £12 million in debt.
 These debts eventually mounted to £24.5 million, and were finally fully repaid in 2015.
2010 general election on 6 May that year, Labour with 29.0% of the vote won the second largest number of seats (258). The Conservatives with 36.5% of the vote won the largest number of seats (307), but
no party had an overall majority, meaning that Labour could still remain in power if they managed to form a coalition with at least one smaller party.
 However, the Labour Party would have had to form a coalition with more than one other smaller party to gain an overall majority; anything less would result in a minority government.
 On 10 May 2010, after talks to form a coalition with the
Liberal Democrats broke down, Brown announced his intention to stand down as Leader before the
Labour Party Conference but a day later resigned as both
Prime Minister and party leader.
Harriet Harman became the
Leader of the Opposition and acting Leader of the Labour Party following the resignation of
Gordon Brown on 11 May 2010, pending a
 subsequently won by
Ed Miliband. Miliband emphasised "responsible capitalism" and greater state intervention to change the balance of the economy away from financial services.
 Tackling vested interests
 and opening up closed circles in British society
 were themes he returned to a number of times. Miliband also argued for greater regulation of banks and energy companies.
Parliamentary Labour Party voted to abolish
Shadow Cabinet elections in 2011,
 ratified by the National Executive Committee and Party Conference. Henceforth the leader of the party chose the Shadow Cabinet members.
The party's performance held up in
local elections in 2012 with Labour consolidating its position in the North and Midlands, while also regaining some ground in Southern England.
 In Wales the party enjoyed good successes, regaining control of most Welsh councils lost in
Scotland, Labour held overall control of
Glasgow City Council despite some predictions to the contrary,
 and also enjoyed a +3.26 swing across Scotland. Results in
London were mixed:
Ken Livingstone lost the election for
Mayor of London, but the party gained its highest ever representation in the
Greater London Authority in the concurrent
On 1 March 2014, at a special conference the party reformed internal Labour election procedures, including replacing the electoral college system for selecting new leaders with a "one member, one vote" system following the recommendation of a review by former general-secretary
Ray Collins. Mass membership would be encouraged by allowing "registered supporters" to join at a low cost, as well as full membership. Members from the trade unions would also have to explicitly "opt in" rather than "opt out" of paying a political levy to Labour.
The party edged out the Conservatives in the
May 2014 European parliamentary elections winning 20 seats to the Conservatives' 19. However the UK Independence Party won 24 seats.
 Labour also gained 324 councillors in the
2014 local elections.
In September 2014, Shadow Chancellor
Ed Balls outlined his plans to cut the government's
current account deficit, and the party carried these plans into the
2015 general election. Whereas Conservatives campaigned for a surplus on all government spending, including investment, by 2018-19, Labour stated it would
balance the budget, excluding investment, by 2020.
2015 general election unexpectedly resulted in a net loss of seats, with Labour representation falling to 232 seats in the House of Commons.
 The party lost 40 of its 41 seats in Scotland in the face of record swings to the Scottish National Party.
 Though Labour gained more than 20 seats in England and Wales, mostly from the
Liberal Democrats but also from the
 it lost more seats to the Conservatives, including Ed Balls in
Morley and Outwood, for net losses overall.
Realign and in opposition, 2015-present
The day after 7 May 2015 election, Miliband resigned as party leader. Harriet Harman again became acting leader.
 The Labour Party held a
leadership election, in which
Jeremy Corbyn, then a member of the
Socialist Campaign Group,
 was considered a fringe hopeful when the contest began, receiving nominations from just 36 MPs, one more than the minimum required to stand, and the support of just 16 MPs.
 However, he benefited from a large influx of new members as well as new affiliated and registered supporters introduced under Miliband.
 On 12 September, he was elected leader by a landslide. Membership numbers continued to climb after the start of Corbyn's leadership.
Tensions soon developed in the parliamentary party over Corbyn's leadership. Following the
referendum on EU membership more than two dozen members of the
Shadow Cabinet resigned in late June 2016,
 and a no-confidence vote was supported by 172 MPs against 40 supporting Corbyn.
 On 11 July 2016
an official leadership election was called as
Angela Eagle launched a challenge against Corbyn.
 She was soon joined by rival challenger
Owen Smith, prompting Eagle to withdraw on 19 July 2016 in order to ensure there was only one challenger on the ballot.
 On 24 September 2016 Corbyn retained leadership of the party with an increased share of the vote.
 By the end of the contest Labour's membership had grown to more than 500,000, making it the largest political party in terms of membership in Western Europe.
Following the party's decision to support the
European Union (Notification of Withdrawal) Bill 2017, at least three shadow cabinet ministers, all representing constituencies which voted to remain in the EU, resigned from their position as a result of the party's decision to invoke
Article 50 under the bill.
 47 of 229 Labour MPs voted against the bill (in defiance of the party's
 Unusually, the rebel frontbenchers did not face immediate dismissal.
 According to the
New Statesman, approximately 7,000 members of the Labour Party also resigned in protest over the party's stance;
 this number has been confirmed by senior Labour sources.
On 18 April 2017, the
Theresa May announced she would seek an unexpected
snap election on 8 June 2017.
 Corbyn said he welcomed May's proposal and said his party would support the government's move in the parliamentary vote announced for 19 April.
 The necessary
super-majority of two-thirds was achieved when 522 of the
650 Members of Parliament voted in support.
 Some of the
opinion polls had shown a 20-point Conservative lead over Labour before the election was called, but this lead had narrowed by the day of the
2017 general election, which resulted in a
hung parliament. Despite remaining in opposition for its third election in a row, Labour at 40.0% won its greatest share of the vote since
2001, made a net gain of 30 seats to reach 262 total MPs, and, with a swing of 9.6%,
 achieved the biggest percentage-point increase in its vote share in a single general election since
 Immediately following the election party membership rose by 35,000.
 In July 2017 opinion polling suggested Labour leads the Conservatives, 45% to 39%
 while a
YouGov poll gave Labour an 8-point lead over the Conservatives.
In May 2017
Loughborough University's Centre for Research in Communication and Culture considered a majority of media reports on Labour to be critical compared to coverage of the Conservatives.
 The Daily Mail and Daily Express praised Theresa May for election pledges that were condemned when proposed by Labour in previous elections.