Why must the government assume totalitarian powers to administer the economy etc? The UK Government is 'quasi-socialist' (though I'm not sure what this means) - and is not totalitarian. Is the UK half pregnant?

I wouldn't agree with you that Labour is on it's way out - I'd say Blair (it's leader) is on his way out - one of the main reasons for this - he is not socialist enough for his own party! It's interesting to see that the person most think will succeed him is in fact a socialist who has been Chancellor of the Exchequor. I, for one eagerly await his appointment as Prime Minister.
Socialism is not 'each according to his needs' - but 'each according to his community's needs'. It is for the betterment of his community and evironment that he works for - which will also enrich his own life as well as others around him. Maybe it sounds an over-simplification, but this is a basic tenet od socialism on how I see it.
North Korea, China and Cuba are not socialist - its' people live under enforced communism who may not wish to live as they do and have no say on how to change the way their lives are run.