They stand for new liberalism, as opposed to the Neoconservatism of the
tories, or the social democratism (supposedly) of Labour.
In practice, this means they do share a similar economic policy to labour, in the sense that they believe in fairly redistributive tax, a well mixed economy, and supported the concept of fiscal stimulus through a larger budget deficit etc, although they often criticse the finer details of Labours economic policy, i think probably for political pointscoring rather than any other reason.
The main thing which sets them apart from the other 2 is their social policy. They are particularly against ID cards and a national DNA database. Many of them wish to end unelected government by reforming or scrapping the house of lords. They would introduce a written constituion. They want to restore the right to protest. there also whisperings of wanting to decriminalise possession of soft drugs, but this isn't official policy as i suspect it would prove quite unpopular.
In a sense, their social policy is comparable to some of the more libertarian elements of the Conservatives, but this isn't really representative of them as a whole.
I like to think that they combine the better elements of both parties, with a bit of their own New Liberalism thrown in also.



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