Despite opposition from Labour's left-wing, he abolished Clause IV, the party's formal commitment to the nationalisation of the economy, weakened trade union influence in the party, and committed to the free market and the European Union.

Blair inherited the Labour leadership at a time when the party was ascendant over the Conservatives in the opinion polls, since the Conservative government's reputation in monetary policy declined as a result of the Black Wednesday economic disaster of September 1992.

Blair's election as leader saw Labour support surge higher still in spite of the continuing economic recovery and fall in unemployment that the Conservative government led by John Major had overseen since the end of the 1990–92 recession.

In May 1995, Labour had achieved considerable success in the local and European elections, and had won four by-elections.

Virtually every opinion poll since late-1992 put Labour ahead of the Conservatives with enough support to form an overall majority.

Another newcomer, Tom Clarke, was appointed to the new post of Shadow Minister for Disabled People's Rights.