Once upon a time it was much more cut and tried - Labour wanted nationalization of banks and heavy industry and wanted to quit NATO and the Liberals were just a bunch of middle class do-gooders (mostly secondary school teachers) who steered clear of anything radical - but now in 2023 the differences, are pretty nuanced...
I think largely true although in some rural southern constituencies and posh areas of London, people can stomach voting Liberal Democrat but Labour is a bridge too far. Liberals in Canada not much different than NDP today yet there are loads of places that will go Liberal but if NDP main alternative go Conservative (i.e. 905 belt, wealthy urban areas) so I imagine some of that in UK. Most voters don't pay too close attention to policy detail so party brand and historical image matter a fair bit.
At same time where Liberal Democrats could come in key is if Labour wins a narrow majority. The more left wing elements of party may threaten to vote down budget or bills unless goes further to left and I could see Labour turning to LibDems or using this threat to keep those types in line.
While would support most, I think there are a few areas of difference
1. On tax policy, I think LibDems for mansion tax but against wealth tax. Also for additional rate a hike of 1 or 2% they would probably support, but if Labour runs in putting it back to 50% like was in 2010 or even higher, LibDems likely vote that down. 46% or 47% probably could get away with and maybe 48%. Mind you I don't think Starmer will introduce a wealth tax or raise additional rate that much if at all.
2. On nationalization front, probably okay with bringing back rail into public ownership as long as done by not renewing contracts as they expire. But any further nationalization likely opposes. Although to be fair only other one Starmer has proposed is creating a state run energy company (not nationalizing existing) to compete with the big six and depending on cost LibDems may oppose if too costly.
3. One area may go to left of Labour is immigration. I believe LibDems most pro-immigration party so if Labour plans crackdown here in hung parliament may have to turn to Tories. Many traditional red wall voters want less immigration although younger urban types fine with higher levels but since former constituencies more at risk than latter, wouldn't be surprised if Labour runs on reducing immigration like they did in 2010 and 2015.
4. I believe Labour wants to tax private schools and I could see LibDems opposing that.
5. Labour has in past opposed NHS contracting out while LibDems are more in middle here. Don't embrace it like Tories, but don't oppose it either.
I think if Corbyn were still leader, LibDems would oppose many of his ideas, but with Starmer much less.