We always seem to forget the achievements of a long standing government, and see only the weaknesses.  The New Labour government inherited large deficit and high public sector debt.  Until 2007 national debt remained lower than when took office.  They introduced a minimum wage.  They lifted ban on gays in military, legalized civil partnerships, revoked section 28.  Employment equality act brought in (gender, sexuality, disability etc).  Most of these policies have now been adopted by Conservatives.
Significantly increased spending on health and education.  Increased spending on health in real terms every year between 1997 and 2006, doubled overall.  Inequalities in infant mortality and GCSE results narrowed.  48 out of 59 social exclusion indicators improved.  Reduced child poverty by a third.  No rise in international league tables in health or education, however.
Devolution in Scotland and Wales.  Northern Ireland peace process.  18% increase in real incomes 1997-2006.  Significant reduction in relative poverty.  Increased national insurance.
Inequality didn’t reduce much, partly because of continuing rise in income of highest earners.  Was never one of their stated aims, to be fair.
Planned referendum on EU constitution (but suspended when French and Dutch rejected).
Never managed to embed this social programme into British psyche? Done by stealth, almost as if they feared political fall out  [Poly Toynbee].
Iraq war was a big deal.  Tuition fees introduced.