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I suspect New Labour thought their left flank was covered by the Greens,
(on their way down from their '89 Euro election peak
https://en.wikipedia.org/wiki/European_Parliament_election,_1989_(United_Kingdom)
maybe being a depository or protest votes in Euro elections,
but hoping they would vote more circumspectly in a general election.
This is something I've said for probably almost 10yrs now. The Tory right didn't like the Conservatives' shift to the centre so set up UKIP. I don't understand why the left of Labour didn't do this ages ago (well obviously I do).
Got to say that I'm not sure now is the best time to do it.