They both did.
The public sector, welfare and borrowing under Labour grew ridiculously.
Pinning it on Labour only is redundent. The reason borrowing was so high especially at the end was because the way to fix the banks was to basically buy them out with loans from governments. Billions of it they didn't have, in the knowledge that at some point they'd sell that back to private sector hopefully for profit just like Northern Rock...wait, government sold that at a loss, oh well.
No party at the moment is any better than the other, which is why their policies are pretty much the same, this labour is unlikely to be the same as that labour. They are all within the 'safe' area of policies, especially ones involving benefits and national debt. Except with UKIP, I disagree on their main stance so they are the worse of a bad bunch.
Sadly gone are the days of Clinton US when everyone was richer.