The last time a Tory Government presided over an economic crisis of this magnitude was 30 years ago.
Sterling’s collapse led to the UK exiting the Exchange Rate Mechanism and John Major ’s hapless administration never recovered.
The Tory reputation for relatively sound economic management was shredded and Labour won the next general election with a 179 seat majority.
Keir Starmer, whose party has grown used to losing elections, gave his conference speech in Liverpool against a similar backdrop of chaos.
A collapsing pound, soaring inflation and the prospect of huge rises in interest rates have handed Labour a 17 point lead over Liz Truss’ Tories.
But while conference delegates were the most upbeat they have been since Labour were last in government, jitters were still noticeable.
Major’s demise was largely down to the incompetence of his Government, but it was also helped by Tony Blair fundamentally changing perceptions of his own party.
Under Blair, Labour realigned themselves with business, put the consumers of public services first and had a relentless focus on voters’ concerns.
Labour activists, while welcoming recent progress, remain worried the poll lead is based on Tory weakness, not Labour strength.
They fear, with some justification, that a fickle poll lead could yo yo like the value of the pound.
Another concern is that voters do not know what Starmer stands for or which dividing lines Labour will lay down at the next election.
His speech today went some way to filling in the blanks for voters and addressing the core weaknesses which were a hangover from the Corbyn era.
With the Truss Government on the verge of crashing the economy with her tax-cuts-for-the rich plan, Starmer sought to reclaim Labour as the party of economic competence.
By staunchly backing NATO and the Queen, he also tackled head-on the view of Red Wall voters that Labour is not patriotic. An explicitly anti-SNP message was aimed at the same voters.
Once voters are reassured on the economy and patriotism, Starmer allies believe voters will give his party a hearing on its social justice agenda. Repairing the damage done by previous leaders is an ongoing project.
Politics is a comparative business and Starmer is modestly pitching Labour as being an improvement on the Tories. As President Obama once said: “Better is good”.
Critics, particularly on the Labour Left, worry that Starmer is timid on policy and too boring in an era of personality politics.
But this analysis overlooks how exhausted the British public have become with the melodrama of Tory politics over the last seven years.
Brexit, partygate and the resignation of three prime ministers have created an air of constant bedlam when what most people want is security and a better life.
With steady centre-left leaders in the US, Germany and Australia sweeping to power, voters are flocking to politicians who are calm and professional, rather than flashy and ostentatious.
After the general election rout three years ago many Labour members wondered whether their party could ever win again.
Victory is not guaranteed, and a rocky electoral road lies in wait, but Starmer appears on course to lead Labour to its first win in nearly two decades.
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