The youthful Tony Blair becomes leader after beating Margaret Beckett and John Prescott following John Smith's death. Modernisation started by Kinnock continues and Labour's historic commitment to nationalisation, Clause IV of the party's constitution, is torn up as Blair re-positions the party on the centre-left.
Since its fourth general election win in a row, the Conservatives lose public confidence amid “sleaze” allegations and the crisis provoked by sterling's forced exit from the European Exchange Rate Mechanism.
In 1997 Tony Blair wins a landslide general election victory - the largest in the party's history - returning Labour to office after 18 years. He begins constitutional change, devolving power to Scotland, Wales and London and reform the House of Lords.
The Good Friday Agreement edges Northern Ireland towards a lasting peace - but party leaders are accused of "control freakery" and failing to end the crisis in the NHS.
Tony Blair remains determined to be the first Labour leader to win a second full term in office.