Not strictly true. In the run up to the election Blair took the Tories (John Major government) to task, saying that they would inherit a national debt that had doubled under Majors’ watch.
Gordon Brown accused them of leaving a black hole in the economy when Labour came to power in 1997. As a result they brought forward work on the Welfare Reform and Pensions bill intended to save approximately £750 million per year from state benefits paid on housing, income support, council tax receipts, disability benefits and incapacity benefit. The bill was responsible for the introduction of private assessment companies to assess for disability and sickness benefits and replacing sickness and invalidity benefits with ESA, with considerably tightened restrictions for both. So as with successive governments recently, the most vulnerable were in the firing line. Maybe not to the same extent, but it was there.