Introduction

Tony Blair led the Labour Party between 1994 and 2007. Throughout this period, New Labour controlled the Party and Labour, likewise, dominated the political scene. The UK remained an ‘awkward partner’ for the Europeans, but, notwithstanding press sentiment and the views of an increasing number of Conservatives, it seemed very unlikely that the UK would depart the EU.

Brown replaced Blair as Prime Minister in June 2007. Thereafter, the world was turned upside down. The financial crisis of 2007–9 sent the British economy into its worst recession since the 1930s, following two decades of solid growth. This had a substantial negative effect on the public finances: debt and deficit became central political preoccupations. The Conservatives, now under fresh leadership in the shape of Cameron and Osborne, capitalised on alleged Labour profligacy. However, they were unable to win the 2010 general election outright and were obliged to enter into a coalition with the Liberal Democrats.

The coalition government of 2010–15 saw the coming together of likeminded politicians in these two parties, notably Cameron, Osborne, and the Liberal Democrats under Nick Clegg, who had become the party's leader in 2007. On both sides, there was enthusiasm for economic and social liberalism. The government embarked on a deficit reduction strategy (‘austerity’), which involved large public spending cuts. Except for the very rich, living standards fell. Public services were reduced. Economic growth slowed.

The financial crisis, and the austerity policies that followed, contributed to the rise of the Far Right (UKIP and the BNP). Immigration became a central political concern. At the same time, Conservative Eurosceptics continued to press for fundamental change in the UK's relationship with the EU.