Labour is bankrupt as a concept, most people hve moved beyond trade unionsim in its pure form, based on massed ranks of workers walking in unison to the factory
a divide party which can't escape socialism will always struggle to win a majority but with the Lib Dems having been destroyed by Clegg they remain by far the second strognest party. It's the reason why we need proportional representation but of course the tories will neveer give it so us and Labour if and when they get into power are too short-sighted to do it either