New Labour is finished. There was never any possibility of them surviving a crash when their economic policy consisted of an unbridled market with low wages supplemented by unaffordable credit for working people.
A Tory government is highly likely in 2010, although a better case of jumping from the frying-pan into the fire is hard to find. But it is wrong to propose that the focus of left-wing activity should be in the formation of Tory Party policy.
If New Labour is finished, the strategy of progressives must be to smash up that useless edifice, and on the basis of new recruits, Labour councillors and some Labour MPs to build up a left-leaning social democratic party (don’t laugh) which will defend civil liberties and regulate capitalism. In other words we must restore the left in politics.