Merika,
You analysis is quite right, traditionally the Labour party is the equivalent of Democrats in UK but when Tony Blair became the leader he moved the party slightly to the right hence the Labour party is more like the republican this day.
But Tony Blair is a damaged good because of what the British people see as his extreme closeness to Bush or the the Iraq was and of course the absense of WMD in Iraq, but he will not last long after the election, he will be replaced by Gordon Brown the current finance minister.
Conservative part are the real equivalent of Republicans but they are currently not so popular because of the extreme right wing policies they pursue at the moment.
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