You seem to be conflating austerity with balanced budgets. You also seem to be confusing what is a necessary political tactic in order to win back trust (emphasising the need to balance the budget when it's what the electorate seem to be demanding these days) with a fetish for cutting spending. Again, Labour balanced the budget in the first few years in power after '97, running more surpluses than the Tories ever did, whilst still increasing funding to and improving public services. That is not conservatism, or Tory-lite, or whatever other bollocks is getting thrown around these days. Kendall's big thing is early years education, increasing funding to the time at school when studies show many of the future life chances of a person are essentially fixed, which currently (obviously) dramatically goes against those in the poorest areas. Again, this is not conservatism, it's public service investment. It seems to me that many on the left (mainly the students, unsurprisingly) these days seem to think "education" is summed up by tuition fees. It's not. I used to rail against tuition fees with the best of them but do you know what, in terms of debt it's the cushiest deal you could hope for. I'm happy for the money to be targeted at those who it could make so much more difference to.
Centre-left parties in general only win these days when their ambition is to use the products of a healthy economy to invest in services (you'll notice the Tories have actually started using this argument lately to improve their standing on the NHS, it's an argument that goes over well with the public), but if you aren't trusted on the first part of that equation you aren't going to be able to do the second, the public just won't let you spend its money. That is what Kendall is trying to do. Not to bask in the laissez-faire warmth of a small state with people dying from lack of support, she was the Care minister and spent a lot of time working on how to get more power down to local services to improve the results for patients. She's actually trying to help them by being in power to allocate the resources. Jeremy Corbyn would shout against the cuts with the best of them and happily walk through the no lobby in every vote, as happened in the last parliament, and then in five years time the Tories will be back with an increased majority to prioritise tax cuts and no major service investment. It's socialism to wash your hands with.
So yeah, that's why people will vote Kendall. Not because we're secretly red Tories with a penchant for a "vile wench" (ffs).