Regardless of anyone's opinion on Blair, he is very good on some things - in fact, immeasurably ahead of the current crop of no-marks we've had, and now have, running the country - and this is one of them:
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He makes the point, very succinctly, that it is the failure of centrist politicians to listen to the legitimate grievances of their electorate and their failure to act on those grievances that has created the "populists" on both the left and the right. He also correctly states (imo) that if politicians "sit there trying to manage the situation", labelling this group or that group "extreme", it won't work: they need to deliver solutions to the problems their electorate want solving.