The Labour Party is in a significantly stronger position than almost any other European social democratic party. Low bar, I know, but it must be said.
Not really. Spain, Portugal and the Scandinavian nations certainly have more influential social democratic parties right now. Labour has a higher base vote, but that's not a sensible comparison to use when comparing FPTP and PR jurisdictions.
Historically one can say Tories benefites more from the FPTP system than Labour. After all Atlee won the popular vote three times in a row (1945, 1950 and 1951), but that last time Conservatives won the majority of seats (it's funny to think that Churchill lost the PV three times in a row).