Tony Benn, predicting a national government based on the centre ground of politics

Lib Dem Offer Signals End of Labour, Says Benn

Mr Benn predicted Labour would be replaced by a centre-party operating on a different basis. "You could imagine really a national government being set up and the Labour Party simply being replaced," he told BBC Radio 4's Today programme.

He said measures such as revising Clause 4 and distancing Labour from the trade unions were really a preparation for a party similar to the US Democrats.

"It's been presented as modernisation and reform. Actually it is complete realignment of British politics," he claimed.

National Government

"I think people are realising that this is a much bigger thing than appeared from Tuesday's statement when no announcement was made in Parliament; it was just assumed that it was all right," Mr Benn said.

Tony Benn speaking on the Todayprogramme
Dur 6' 00"

He said one could imagine another Cabinet committee which would include former Tory Chancellor Kenneth Clarke on Europe and, ultimately, a national government.

"I think the truth is what this will do is to obliterate debate in Parliament and obliterate choice in the ballot-box," Mr Benn said. He pointed to "old Labour" Lionel Jospin's victory in France and claimed New Labour had "put its toe in the water for a paddle and was overwhelmed by a tidal wave". He added: "I think what really happened on May 1 is that people wanted real change."

Fellow Labour MP and constitutional expert Tony Wright, who is close to Mr Blair, accused Mr Benn of helping to keep Labour out of power for a generation.

"We're interested in keeping it in power for a generation and making the centre-left the dominant power in British politics," he said.

Mr Wright added: "We re-made Clause 4 to say exactly what we believed in. We've argued it's possible to combine a dynamic economy with social responsibility, the state with the market, the public with private. It's working very well, we're terribly popular. I just regret the fact that there are those voices around who prefer the old kind of politics where we used to lose".

The former Liberal leader and now Liberal Democrat peer Lord Steel said: "There is no conspiracy here to merge the two parties."

He said the Cabinet committee was about constitutional issues, about broadening the processes of government and the very reverse of the narrowing style of Baroness Thatcher's government, "throwing out of the room people who didn't actually agree with her in her own party".

"What Tony Blair is about is bringing in businessmen, Liberal Democrats, anybody else who can actually contribute to the processes of government and I think that is healthy," he said.

Tony Wright and Lord Steel discuss New Labour on the Today programme

Dur: 6'28

I'm No Longer Loyal to Labour, Admits Hattersley

In an article headed, "Why I'm no longer loyal to Labour", Mr Hattersley, who stood down at the last election, said: "In truth it is hard to describe New Labour as a democratic socialist party and, much to his credit, Tony Blair has always been frank about his wish to create what he calls the radical centre ground of politics."

He went on: "That creates problems for those of us for whom equality is an article of faith. We should rejoice at the victory of May 1. The Blair Government is not only incomparably better than its predecessor. In many ways it is admirable in its own right. But it is not a force for a more equal society."