Once upon a time, Labour actually represented the working class. They were totally wrong on policy then, as of course they are now, but at least they genuinely shared the values of their voters.
You're right, now they're bought off by Big Business and The City, as the Tories have always been. It's the working classes mostly and the middle-classes who are abandoning Labour, because they're not sticking up for them any more.
Wealth inequality, for example, increased a huge amount under Labour - this was a continuation from the previous Thatcher and Tory years, of course.
Now, Labour has been taken over by Islington pseudo-intellectual Marxists, they pander to the Guardian/BBC agenda, sneering on their base as thick xenophobes.
No, not really. They've been taken over by business. New Labour aren't Marxists, and they don't pander to The Guardian. They pander the Murdoch press, which wields a huge influence on British politics.
I understand perfectly why someone might vote Labour - and so, for all their faults, do the Tory leadership. What is fantastic about the current Labour leadership is that they have absolutely no clue about why someone might vote Tory. Blair was the last Labour leader who did.
Like the current Tory leadership, Blair was excellent at PR. Unfortunately, a lot of people have bought in to the idea that the economic crisis was caused by New Labour overspending. While the Tory's created this narrative for their own ends, the Labour party was too busy choosing a new leader. Unfortunately, it has now stuck, and a lot of misinformed people think that, if only New Labour had spent less on hospitals and nurses, 'we wouldn't be in this mess'. Well, we would, as I've shown again and again with various economic statistics. The financial crisis we're experiencing was caused by the meltdown in finance (big banks and speculative trading) and subsequent recession.
It's a handy narrative to point to New Labour, so the Torys can carry on with their anti public services and privitisation agenda.