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The split was caused by the Militant tendency's majority adoption of the ' Open Turn ', Grant's continued support for the tactic of entryism within the Labour Party and what Grant and Woods claimed was the bureaucratic centralist degeneration of Militant's internal regime.
After the debate and conference decision, the Militant tendency claimed that Grant and Woods had begun a separate organisation and had split from Militant, whilst Grant and Woods claimed to have been expelled.
The Socialist Party drew the conclusions that owing to the adoption of right wing economic polices by the Labour Party leadership under Neil Kinnock, it was effectively a bourgeois political party.
Conversely, supporters of Socialist Appeal argued that the Labour Party's funding was still based on trade unions, and the Labour Party retains support amongst the working class.

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