1979 - Callaghan, totally lost control of the cabinet, party and country.
Callaghan was in fact the first Monetarist PM in the UK. The rot started there, not with Thatcher.
I think a lot of people believed them when they said they were going to change things
What people believed is an entirely different thing from what they said they'd do. People shouldn't have believed that the New Labour cloak would come off, and some form of social democratic party would be underneath, because Blair, Brown and all the rest were quite clear and explicit about their plans.
Remember, though, that the story we're given by the media, the establishment, is that elections constitute real choice. This is difficult to see from within, but look at another society: look at the US. There the media say
of course we give all points of view; we give Democrat and Republican. Or sometimes they'll say
conservative and liberal. But really they give what is called "newsworthy" information. They don't see it themselves as limiting debate, but it is. The New York Times says it gives "all he news that's fit to print". Well, that decision is based on the prevailing consensus. And the prevailing consensus is the neoliberal paradigm.
In the UK, the same applies. The 1997 choice was portrayed as a real choice. A new start. A fresh beginning. But look what was on offer: a promise to keep the Tory's spending plans! And then the new start - a classic neoliberal move: hand monetary policy to the Bank of England. Even Thatcher hadn't gone that far.