With the increasing influence of the far left in the Labour party in the late 1970s and early 1980s, a number of Labour MPs broke away to form the new SDP in 1981
The leading figures in the SDP were Roy Jenkins, David Own, Shirley Williams and William Rogers
The SDP believed that in a polarized political climate, with Thatcher representing the right and Foot representing the left, there was a need for a centre-left party
The SDP hoped to claim new members from the Labour party, but also some disaffected Conservatives unhappy with the direction of the Party under Thatcher
In order to mount a serious challenge to the status quo, the SDP allied with the Liberal Party for the 1983 election, where the alliance gained 1/4 of the popular votes but only 23 seats
The SDP were unable to capitalize on their early success and formally merged with the liberals in 1988 to form the Liberal Democrats
The Liberal Democrats have always been socially liberal and pro-European, some Thatcherite influence can be seen in the commitment of many of their MPs to free-market principles and low taxation