I think it has two sides:
No- As they won the 1992 election, and the reason for the 97 loss was unrelated to Thatcher's legacy. Also Thatcher doesnt seem to be important in elections in middle England seats where elections are won or lost.
Yes- In certain parts of the country Thatcher does have a poisonous legacy, but these tend to be Labour strongholds. This may have entrenched Labour even fruther giving them a strong base of support.
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