The idea that 'small government' could apply to the Labour party of 97-10 is laughable. Brown's extreme Keynesianism during the financial crash, his belief in deficits as necessary in a time of an extreme financial crisis and the 50% top rate of tax should have further disabused anyone that Labour was primarily 'neo-liberal'.
Even during Blair's day, this was the same party who tried to introduce ID Cards, introduced the DNA database, implemented the minimum wage, child tax credits, the winter fuel allowance, paternity leave and increased maternity leave, the Windfall Tax on privatised utilities (raising £5 Billion for the New Deal) and withdrew government funding for private schools. The top rate of income tax remained the same until it was increased, as discussed above.
Of course, there were foundation hospitals, acadamies and so on, which were all arguably 'neo-liberal'. However, the idea that Labour 97-10 was a neo-liberal government is palpably untrue.