Considering the Socialists' workers republic would be much more democratic than even our current system, and more decentralized, that statement is completely false.
We have a lot more to fear from a Parliamentary government banning parties from parliament than from a Workers Council with representatives elected directly by the people on a local basis. In a workers republic if the Council steps out of line the workers hold each local industry in a decentralized fashion and can prevent misuse of power, whereas a Tory government in Parliament would have absolute power stretching from Westminister to the corporate headquarters of every industry and every army barracks in the country.
Which seems more of a threat to you, the Conservative party's top down dominance of industry, or the Socialist party's proposed bottom up division of industrial power among the worker?
You can spout neat cliches all you want, but the fact of the matter is your party is declaring totalitarian intentions while the Socialist party's proposals would make such totalitarianism impossible and would instead open up and liberate society from being controlled by a single party, sect, or clique.
If you want to look at a single party that seeks to dominate all aspects of life, look at the Tory party - the War Party, whose reactionary interests weld every industrialist and banker in Britain into a single elitist clique who seeks to select which parties are admissible and which are not. Whereas the Socialist party is proposing handing power over to the masses. Tory Governments absolutely control all aspects of industry, as they are inextricably linked with the capitalist robber barons, whereas a Socialist government would give up control of industry to the individuals who work in each local industry.
The only clique of Jacobins trying to create a massive state are the National Conservative Party.